Elan has announced it intends to offer $850 million in a mix of senior fixed rate notes and senior floating rate notes that would be due in 2011.
The proceeds from the offer will be used clear $351 million of the outstanding $390 million covered by a subsidiary, Elan Pharmaceutical Investments, known as EPIL III.
This action brings the potential payment of the EPIL III debt forward by five months, as they were due in March 2005.
Elan's debt levels will rise from $1.6 billion to $2.1 billion on completion.
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Analysts said the move will give the company additional financial flexibility, adding $499 million in cash to the balance sheet bringing total cash reserves to $1.28 billion.