Pharmaceutical company Elan is to raise $1.15 billion through the issue of debt, up from the $850m it had previously planned.
Elan also announced this morning that it is to buy back $351m of $390m in debt from EPIL III holders. As a result, it said, it would be able to eliminate 'many of the restrictive covenants contained' in the debt guarantee agreement.
Goodbody analyst Ian Hunter said that as a result of the two announcements, there would $794m on the balance sheet, added to the $780m he believes is already there. Mr Hunter said this removed any remaining liquidity doubts and gave Elan the financial flexibility to develop Antegren and to augment its pipeline through acquisition.
