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Biotech / Medical : Elan Corporation, plc (ELN) -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (4258)	4/1/2003 1:52:45 AM
From: Icebrg	Read Replies (1) \| Respond to of 10345

>>Elan Receives $89.5 Million Cash Payment from Its Investments in Xcel>> This is very good news. I was more or less sure those funds were lost. Erik And where did the money come from? Xcel Pharmaceuticals Completes Debt Restructuring and Raises $26.0 Million In Private Equity Tuesday April 1, 1:30 am ET SAN DIEGO, April 1 /PRNewswire/ -- Xcel Pharmaceuticals, Inc. (Xcel) today announced that it has restructured its long-term debt and raised $26.0 million in private equity. Xcel, under an agreement with Elan Corporation, plc (Elan), repurchased all 3,000,000 shares of Series A Preferred Stock held by Elan and retired 100% of the $109.0 million in long-term debt held by Elan through a one-time payment of $89.5 million to Elan. To finance this debt and equity repurchase from Elan, Xcel raised senior debt proceeds of $62.0 million and $26.0 million in private equity from the issuance of Series C Preferred Stock. Ferrer Freeman & Company, LLC led the Series C financing and will be granted a seat on Xcel's board of directors. ADVERTISEMENT "By completing this debt restructuring and raising private equity, we reduced our debt by over 43% from $109.0 million to $62.0 million thereby reducing Xcel's debt to equity ratio from 1.2 to 0.5," stated Michael T. Borer, Xcel's President and Chief Executive Officer. "The reduction in our debt and strength of our business operations positions us to continue to aggressively execute our strategic objectives of growing our current neurology products and acquiring additional products and late-stage development product candidates that will leverage our current commercial capabilities. We look forward to continuing to develop our relationship with Ferrer Freeman & Company, LLC and our new board member, Carlos A. Ferrer." Xcel Pharmaceuticals, Inc. also announced today that Michael T. Borer, the company's President and Chief Executive Officer, will present at the "Future Leaders in the Biotech Industry" Conference sponsored by BioCentury and Thomson Financial/Carson on Thursday, April 3, 2003. His presentation will take place at 9:30 a.m. Eastern time at the Millennium Broadway Hotel & Conference Center in New York, NY. Xcel Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on the treatment of disorders of the central nervous system (CNS). Xcel's portfolio includes four marketed products, two that are used to treat epilepsy and two that are used to treat migraine. The Company's 96-person nationwide field sales organization promotes its products to the highest-prescribing epilepsy and migraine specialists. Xcel's strategy is to increase prescription demand for its current products through targeted sales and marketing efforts, to leverage its presence in CNS through the acquisition of additional marketed products and late-stage development product candidates, and to develop enhancements for its current products.