Elan repays $450m debt

Elan has announced the repayment by Elan Pharmaceutical Investments II, Ltd. (EPIL II) of a $450m (€370m) debt which fell for payment yesterday.

Accrued interest on the debt for the period from December 31, 2003 to June 28, 2004 amounted to $21.5m (€17.7m).

The company still has debts of $1.5bn (€1.2bn).

Of the aggregate payment of $471.5m (€387.7m) announced today, $79.7m (€65.5m) was funded from the cash resources in EPIL II and through the sale of EPIL II's entire investment portfolio.

The balance of $391.8m (€322m) was funded by Elan under its guarantee and will result in a charge in the second quarter of 2004 of $33.4m (€27.5m), consisting of interest of $10.8m (€8.9m) and investment losses of $22.6m (€18.6m).

Elan's cash balances at June 28, 2004, after making the payment under the guarantee, exceeded $670m (€551m) and Elan's debt position has been reduced to approximately $1.5bn (€1.2bn), approximately $1.1bn (€904m) of which is not due until 2008.