Elan units sell $1.15 billion worth of notes

Elan sold $1.15 billion of fixed-rate and floating-rate notes, market sources said.

Elan sold $1.15 billion of fixed-rate and floating-rate notes, market sources said.

Elan Finance and Elan Finance sold $850 million of seven-year, fixed-rate notes at a yield spread of 3.87 percentage points over U.S. Treasuries, and $300 million of seven-year floating-rate notes at a spread of 400 basis points over the three-month London Interbank Offered Rate (LIBOR).

Moody's Investors Service rates the notes "B3", while Standard & Poor's rates them "B-minus," in both cases the sixth-highest junk rating.

Both agencies said they expect to raise Elan's debt ratings when it successfully completes the note sale.