Elan Announces Proposed Offering of US$800.0 Million in Aggregate Principal Amount of Senior Notes Due 2021

DUBLIN--(BUSINESS WIRE)--Elan Corporation, plc (“Elan”) (NYSE: ELN) today announced that its wholly-owned subsidiaries, Elan Finance public limited company (“Elan Finance”) and Elan Finance Corp. (“Elan Corp.” and together with Elan Finance, the “Issuers”), intend to offer, subject to market conditions, US$800.0 million in aggregate principal amount of Senior Notes due 2021 (the “Notes”). The Notes will be fully and unconditionally guaranteed by Elan and substantially all of its subsidiaries. The net proceeds of the Notes offering (plus an amount that would accrue on the Notes through a specified date) will be deposited into escrow pending the closing of Elan’s previously announced (May 13, 2013) pending royalty participation transaction with Theravance, Inc. (the “Theravance Transaction”). Upon release of the net proceeds from escrow, Elan intends to use those net proceeds for general corporate purposes, including working capital requirements, capital expenditures, acquisitions and share repurchases. If the closing of the Theravance Transaction does not occur on or prior to the escrow end date, the escrow proceeds will be used to redeem the Notes in full at a redemption price equal to 100% of the issue price of the Notes, plus accrued and unpaid interest from the issue date of the Notes to, but excluding, the redemption date. The closing of the Theravance Transaction is not subject to any material conditions, other than timely approval of Elan’s shareholders.