Covidien spinoff Mallinckrodt plans to issue bonds, get revolver

By Angela McDaniels

Tacoma, Wash., Feb. 1 - Mallinckrodt plc plans to issue unsecured bonds and enter into a revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Mallinckrodt is the name Covidien plc has given to its specialty pharmaceuticals business, which it plans to spin off into a separate, publicly traded company.

According to the filing, Covidien expects to retain any cash in excess of amounts that Mallinckrodt needs to run its business and use this retained cash for general corporate purposes. Covidien does not plan to repay any of its own debt with these funds.

The company expects the revolver to be undrawn when the spinoff is completed.

Covidien is a Dublin-based health-care products company. Following the spinoff, it will continue to make medical devices and supplies.

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