Filed Pursuant to Rule 424(b)(3)
Registration Statement No. 333-10726
PROSPECTUS SUPPLEMENT NO. 23
(To Prospectus Dated August 30, 1999)
$1,643,546,000
Elan Finance Corporation Ltd.
Liquid Yield Option(TM) Notes Due 2018
(Zero Coupon - Subordinated)
Exchangeable for American Depositary Shares of
Elan Corporation, plc
This Prospectus Supplement supplements information contained in that
certain Prospectus dated August 30, 1999, as amended or supplemented, relating
to the potential sale from time to time by the Selling Securityholders of up to
$1,643,546,000 aggregate principal amount at maturity of Liquid Yield Option
Notes due 2018 of Elan Finance Corporation Ltd., a Bermuda corporation, issued
in a private transaction on December 14, 1999, and Ordinary Shares, par value 5
Euro cents each, of Elan Corporation, plc, an Irish public limited company,
issuable upon exchange of the Notes, each Ordinary Share being represented by
one American Depositary Share, evidenced by one American Depositary Receipt.
Elan has fully and unconditionally guaranteed the LYONs on a subordinated basis.
The Notes are being offered for the account of the holders thereof or by their
transferees, pledgees, donees or successors. This Prospectus Supplement is not
complete without, and may not be delivered or utilized except in connection
with, the Prospectus, including any amendments or supplements thereto.
Capitalized terms used herein but not defined have the meanings assigned to such
terms in the Prospectus.
The information contained in the table set forth in the Prospectus under
the caption "Selling Securityholders" shall be deleted and replaced in its
entirety with the information set forth below with respect to the Selling
Securityholders, the respective principal amount at maturity of Notes owned by
the Selling Securityholders, and the respective principal amount of Notes
offered by the Selling Securityholders hereby. Unless otherwise indicated, none
of the Selling Securityholders has, or within the past three years has had, any
position, office or other material relationship with Elan Finance, Elan
Corporation or any of their respective affiliates. Because the Selling
Securityholders may offer all or some portion of their LYONs or the american
depositary shares issued upon exchange of their LYONs, pursuant to this
Prospectus Supplement, no estimate can be given as to the amount of the LYONs or
the american depositary shares issued upon exchange of the LYONs that will be
held by the Selling Securityholders upon termination of any sales. In addition,
the Selling Securityholders identified below may have sold, transferred or
otherwise disposed of all or a portion of their LYONs, or the american
depositary shares issued upon exchange of their LYONs, since the date on which
they provided the information regarding their LYONs, in transactions exempt from
the registration requirements of the Securities Act.
Unless otherwise indicated, each Selling Securityholder is offering all
LYONs beneficially owned by them pursuant to this Prospectus Supplement. No
securityholder may offer their LYONs, or the american depositary shares issued
upon exchange of their LYONs, pursuant to this Prospectus Supplement until the
securityholder is named as a Selling Securityholder in this Prospectus
Supplement or in another supplement to the Prospectus.
-2-
- ------------------------------------------------------------------------------------------------------------------------
Name Principal amount at Percentage of American depositary Percent of
maturity of LYONs LYONs shares that may be American
beneficially owned and outstanding offered hereby (1) depositary
that may be offered shares
hereby outstanding(2)
- ------------------------------------------------------------------------------------------------------------------------
AAM/ Zazove International Convertible $ 10,000 * 138 *
Fund, L.P.
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AIG/ National Union Fire Insurance $ 1,075,000 * 14,781 *
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Allied Irish Banks, p.l.c. $ 10,000,000 * 137,500 *
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Argent Classic Convertible Arbitrage $ 2,600,000 * 35,750 *
Fund (Bermuda) L.P.
- ------------------------------------------------------------------------------------------------------------------------
Bancroft Convertible Fund, Inc. $ 500,000 * 6,875 *
- ------------------------------------------------------------------------------------------------------------------------
Bank Julius Baer & Co. Ltd. $ 3,540,000 * 48,675 *
- ------------------------------------------------------------------------------------------------------------------------
Bank of America Securities LLC (3) $ 7,780,000 * 106,975 *
- ------------------------------------------------------------------------------------------------------------------------
Bank of Montreal US Corp. Sec. $ 58,000,000 4.38% 797,500 *
- ------------------------------------------------------------------------------------------------------------------------
Bank von Ernst & Cie. AG $ 30,000 * 413 *
- ------------------------------------------------------------------------------------------------------------------------
Banque NSMD $ 300,000 * 4,125 *
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BFG Convertible $ 800,000 * 11,000 *
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Black Diamond Offshore, Ltd. $ 326,000 * 4,483 *
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CGCM Market Neutral Fund $ 280,000 * 3,850 *
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CGU Asset Management $ 2,800,000 * 38,500
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Calamos Market Neutral Fund $ 125,000 * 1,719 *
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California Public Employees Retirement $ 14,000,000 1.05% 192,500 *
System
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Champion International Corporation $ 3,380,000 * 46,475 *
Master Retirement Trust
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Commercial Union Life Insurance Co. of $ 400,000 * 5,500 *
America
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Conseco Health Insurance Company - $ 1,000,000 * 13,750 *
Convertible
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Conseco Senior Health Company - $ 1,000,000 * 13,750 *
Convertible
- ------------------------------------------------------------------------------------------------------------------------
Credit Suisse Bond Fund Convertibles $ 2,000,000 * 27,500 *
- ------------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corporation $ 1,328,000 * 18,260 *
- ------------------------------------------------------------------------------------------------------------------------
CRT Capital Group LLC $ 1,135,000 15,606
- ------------------------------------------------------------------------------------------------------------------------
Deephaven Domestic Convertible Trading $ 7,000,000 * 96,250 *
Ltd.
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Delta Air Lines Master Trust $ 925,000 * 12,719 *
- ------------------------------------------------------------------------------------------------------------------------
Delta Air Lines Master Trust - $ 75,000 * 1,031 *
International
- ------------------------------------------------------------------------------------------------------------------------
Deutsche Bank Securities Inc. $ 24,219,000 1.83% 333,011 *
- ------------------------------------------------------------------------------------------------------------------------
Donaldson Lufkin & Jenrette Sec. Corp. $ 976,000 * 13,420 *
- ------------------------------------------------------------------------------------------------------------------------
Double Black Diamond Offshore, LDC $ 674,000 * 9,268 *
- ------------------------------------------------------------------------------------------------------------------------
Ellsworth Convertible Growth & Income $ 500,000 * 6,875 *
Fund, Inc.
- ------------------------------------------------------------------------------------------------------------------------
-3-
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Name Principal amount at Percentage of American depositary Percent of
maturity of LYONs LYONs shares that may be American
beneficially owned and outstanding offered hereby (1) depositary
that may be offered shares
hereby outstanding(2)
- ------------------------------------------------------------------------------------------------------------------------
Employee Benefit Convertible Securities $ 60,000 * 825 *
Fund
- ------------------------------------------------------------------------------------------------------------------------
Farmers Home Mutual Insurance Company $ 110,000 * 1,513 *
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Fidelity Destiny Portfolio: Destiny II $ 6,000,000 * 82,500 *
(4)
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Fidelity Financial Trust: Fidelity $ 3,700,000 * 50,875 *
Convertible Securities Fund (4)
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Fidelity Mgmt. Trust Company on behalf $ 150,000 * 2,063 *
of accounts managed by it (5)
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Free State Health Plan Inc. $ 100,000 * 1,375 *
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Goldman Sachs and Company $ 6,230,000 * 85,663 *
- ------------------------------------------------------------------------------------------------------------------------
Highbridge Capital Corporation $ 4,925,000 * 67,719 *
- ------------------------------------------------------------------------------------------------------------------------
Island Holdings, Inc. $ 20,000 * 275 *
- ------------------------------------------------------------------------------------------------------------------------
J.P. Morgan Securities Inc. $ 5,595,000 * 76,931 *
- ------------------------------------------------------------------------------------------------------------------------
Julius Baer Securities $ 1,450,000 * 19,938 *
- ------------------------------------------------------------------------------------------------------------------------
Lion Convertible Euro $ 4,200,000 * 57,750 *
- ------------------------------------------------------------------------------------------------------------------------
Lutheran Brotherhood $ 2,200,000 * 30,250 *
- ------------------------------------------------------------------------------------------------------------------------
Mainstay Convertible Fund $ 2,000,000 * 27,500 *
- ------------------------------------------------------------------------------------------------------------------------
Marquette Indemnity and Life Insurance $ 40,000 * 550 *
Company
- ------------------------------------------------------------------------------------------------------------------------
Merrill Lynch International Ltd. $ 22,000,000 1.66% 302,500 *
- ------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Pierce Fenner & Smith $ 4,222,000 * 58,052 *
Incorporated
- ------------------------------------------------------------------------------------------------------------------------
MFS Series Trust I - MFS Convertible $ 2,000 * 28 *
Securities Fund
- ------------------------------------------------------------------------------------------------------------------------
MFS Series Trust V - MFS Total Return $ 3,000,000 * 41,250 *
Fund
- ------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Dean Witter $ 2,845,000 * 39,119 *
- ------------------------------------------------------------------------------------------------------------------------
Nations Capital Income Fund $ 1,500,000 * 20,625 *
- ------------------------------------------------------------------------------------------------------------------------
NMS Services, Inc. (6) $ 10,400,000 * 143,000 *
- ------------------------------------------------------------------------------------------------------------------------
Old Guard Insurance Company $ 100,000 * 1,375 *
- ------------------------------------------------------------------------------------------------------------------------
Ozark National Life Insurance Company $ 850,000 * 11,688 *
- ------------------------------------------------------------------------------------------------------------------------
PHICO Insurance Company $ 20,000 * 275 *
- ------------------------------------------------------------------------------------------------------------------------
Pell Rudman Trust Company $ 2,275,000 * 31,281 *
- ------------------------------------------------------------------------------------------------------------------------
Protective Life Insurance Company $ 40,000,000 3.02% 550,000 *
- ------------------------------------------------------------------------------------------------------------------------
Raytheon Company Master Pension Trust $ 5,595,000 * 76,931 *
- ------------------------------------------------------------------------------------------------------------------------
Reassurance Company of Hannover $ 200,000 * 2,750 *
- ------------------------------------------------------------------------------------------------------------------------
SG Cowen $ 1,000,000 * 13,750 *
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-4-
- ------------------------------------------------------------------------------------------------------------------------
Name Principal amount at Percentage of American depositary Percent of
maturity of LYONs LYONs shares that may be American
beneficially owned and outstanding offered hereby (1) depositary
that may be offered shares
hereby outstanding(2)
- ------------------------------------------------------------------------------------------------------------------------
SG Cowen Securities Corp. $ 3,000,000 * 41,250 *
- ------------------------------------------------------------------------------------------------------------------------
Saudi International Bank - Al-Bank Al $ 2,000,000 * 27,500 *
Saudi Al-Alami Limited
- ------------------------------------------------------------------------------------------------------------------------
Slivarente $ 6,000,000 * 82,500 *
- ------------------------------------------------------------------------------------------------------------------------
Starvest Combined Portfolio $ 325,000 * 4,469 *
- ------------------------------------------------------------------------------------------------------------------------
State Employees' Retirement Fund of $ 490,000 * 6,738 *
State of Delaware-International
- ------------------------------------------------------------------------------------------------------------------------
State of Connecticut Combined Investment $ 10,000 * 138 *
Funds
- ------------------------------------------------------------------------------------------------------------------------
STI Capital Management $ 10,000,000 * 137,500 *
- ------------------------------------------------------------------------------------------------------------------------
The Class IC Company, Ltd. $ 1,500,000 * 20,625 *
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The Northwestern Mutual Life Insurance $ 17,000,000 1.29% 233,750 *
Company (7)
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The TCW Group, Inc. $ 595,000 * 8,181 *
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The Travelers Indemnity Company $ 17,172,000 1.30% 236,115 *
- ------------------------------------------------------------------------------------------------------------------------
The Travelers Insurance Company $ 25,927,000 1.96% 356,496 *
- ------------------------------------------------------------------------------------------------------------------------
The Travelers Life Insurance Company $ 1,301,000 * 17,889 *
Separate Account TLAC
- ------------------------------------------------------------------------------------------------------------------------
The Travelers Managed Assets Trust $ 400,000 * 5,500 *
- ------------------------------------------------------------------------------------------------------------------------
The Travelers Series Trust Convertible $ 600,000 * 8,250 *
Bond Portfolio
- ------------------------------------------------------------------------------------------------------------------------
UBS Warburg LLC $ 300,000 * 4,125 *
- ------------------------------------------------------------------------------------------------------------------------
Vorarlberger Landes - Versicherung VaG $ 180,000 * 2,475 *
- ------------------------------------------------------------------------------------------------------------------------
Warburg Dillon Read LLC $ 33,084,000 2.50% 454,905 *
- ------------------------------------------------------------------------------------------------------------------------
Westfield Insurance Company $ 4,000,000 * 55,000 *
- ------------------------------------------------------------------------------------------------------------------------
*Represents less than 1.0%.
-5-
(1) Assumes: (a) that the full amount of LYONs held by the Selling
Securityholder are converted into american depositary shares at the
exchange rate of 13.75 american depositary shares per $ 1,000 principal
amount at maturity in effect on the date of this prospectus and (b) the
offering of such american depositary shares by the Selling Securityholder
pursuant to this prospectus. The exchange rate is subject to adjustment as
described under "Description of the Notes--Exchange Rights." Accordingly,
the number of american depositary shares issuable upon exchange of the
LYONs may increase or decrease from time to time. Fractional american
depositary shares will not be issued upon conversion of the LYONs. Instead,
cash will be paid in lieu of fractional shares.
(2) Calculated in accordance with Rule 13d-3 under the Exchange Act based upon
350,437,456 ordinary shares of Elan Corporation outstanding as of March 31,
2003 treating as outstanding with respect to each Selling Securityholder
the number of american depositary shares shown as being issuable upon the
assumed exchange by such securityholder of the full amount of such
securityholder's LYONs but not assuming the exchange of the LYONs of any
other securityholder. With respect to the Selling Securityholders listed in
the table above, we have not conducted any independent inquiry or
investigation to ascertain such information and have relied exclusively on
written questionnaires furnished to us by the Selling Securityholders for
the express purpose of including the information set forth therein in this
prospectus.
(3) Bank of America and its affiliated companies and/or individuals may, from
time to time, own, have positions in, or options in Elan Finance
Corporation Ltd. securities, and may also perform advisory services, and/or
other credit relationships with Elan Finance Corporation Ltd.
(4) The entity is either an investment company or a portfolio of an investment
company registered under Section 8 of the Investment Company Act of 1940,
as amended, or a private investment account advised by Fidelity Management
& Research Company ("FMR Co."). FMR Co. is a Massachusetts corporation and
an investment advisor registered under Section 203 of the Investment
Advisers Act of 1940, as amended, and provides investment advisory services
to each of such Fidelity entities identified above, and other registered
investment companies and to certain other funds which are generally offered
to a limited group of investors. FMR Co. is a wholly-owned subsidiary of
FMR Corp. ("FMR"), a Massachusetts corporation.
(5) Securities indicated as owned by such entity are owned directly by various
private investment accounts, primarily employee benefit plans for which
Fidelity Management Trust Company ("FMTC") serves as trustee or managing
agent. FMTC is a wholly-owned subsidiary of FMR and a bank as defined in
Section 3(a)(6) of the Exchange Act.
(6) NMS Services, Inc. and its affiliated companies and/or individuals may,
from time to time, own, have positions in, or options in Elan Finance
Corporation Ltd. securities, and may also perform advisory services, and/or
other credit relationships with Elan Finance Corporation Ltd.
(7) In the ordinary course of business, Northwestern Mutual Investment
Services, LLC, Robert W. Baird & Co. Incorporated and MGIC Mortgage
Securities Corporation, each of which is a broker-dealer and affiliated
with The Northwestern Mutual Life Insurance Company, may, from time to
time, have acquired or disposed of, or may in the future acquire or dispose
of, securities of Elan Finance Corporation Ltd., Elan Corporation, plc or
their affiliates, for such broker-dealers' own accounts or for the accounts
of others. Other affiliates of The Northwestern Mutual Life Insurance
Company may, in the ordinary course of business, effect transactions in the
securities of Elan Finance Corporation Ltd., Elan Corporation, plc or their
affiliates. Only security holdings of The Northwestern Mutual Life
Insurance Company, Northwestern Mutual Series Fund, Inc. and Mason Street
Funds, Inc. are reflected in the response to this questionnaire.
All information in this Prospectus Supplement is as of April 2, 2003.
The date of this Prospectus Supplement is April 2, 2003.