Elan Corp. PLC 'B' Rating Placed On CreditWatch Positive On Announced EDT Business Sale
- ID: 1783819
- May 2011
- Standard & Poors
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Research type: News
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Ireland-based Elan Corp. PLC will be selling its EDT business to newly formed Alkermes PLC, to will be 75% owned by Alkermes Inc. shareholders and 25% by Elan Corp. In addition to the equity stake in Alkermes PLC, Elan will receive approximately $500 million in cash at the time of the sale. We are placing our 'B' corporate credit rating on Elan Corp. PLC and the 'B' issue-level rating on Elan Finance Corp. and Elan Finance PLC on CreditWatch with positive implications. Elan will use the cash to reduce debt. We expect that this will reduce adjusted leverage to about 5x, from 8x. We will resolve the CreditWatch upon close of the transaction. BOSTON (Standard & Poor's) May 9, 2011--Standard...
Companies mentioned in this report are: Elan Corp. PLC
Action: On CreditWatch:Positive