Irish drugmaker Elan Corp. Plc announced on Monday a plan that could reduce its debt by about 20 percent to $1.24 billion and cut its annual interest costs by up to $10 million.
The company said it expects to use cash on hand and proceeds from a possible refinancing to retire up to about $500 million in outstanding debt due to mature in November 2011 and November 2013.
The transactions could leave Elan with no required debt payments until November 2013 and reduce the amount due then from $615 million to $425 million.
Elan also confirmed its 2010 financial guidance. It expects earnings before interest, taxes, depreciation and amortization to be more than $150 million.
U.S.-traded shares of the drugmaker's stock rose 18 cents, or 3.4 percent, to $5.43 in Monday trading.
