Research Update: Elan Corp. PLC 'B' Rating Placed On CreditWatch Positive On Announced EDT Business Sale
- Language: English
- Published: May 2011
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
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
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Elan Corp. PLC