Distressed pharma bonds drop as Purdue deal cleared; Endo declines; Mallinckrodt mixed

By Cristal Cody

Tupelo, Miss., March 9 – Distressed pharmaceutical paper mostly softened on Wednesday as news reports emerged that a $6 billion opioid-related settlement with Purdue Pharma owners received court approval.

A hearing on a motion to authorize the new settlement with members of the Sackler family and eight states and the District of Columbia was held on Wednesday in the U.S. Bankruptcy Court for the Southern District of New York.

Endo International plc’s bonds continued to see heavy trading on Wednesday with the paper about ¾ point to over 2¾ points lower.

Endo Finance LLC’s 9½% senior secured notes due 2027 (Caa2/CCC+) fell over ¾ point to just under the 93 bid range on $30.5 million of volume, a source said.

Endo’s 6% senior notes due 2028 (Caa3/CCC-) were over 2¾ points lower at 60 bid in thin supply of $3 million.

Mallinckrodt plc’s paper was mixed with the 5¾% senior notes due 2022 down 1¾ points to 49¼ bid, a source said.

The issue saw $2.5 million of volume.

Distressed secondary supply was mostly concentrated in the emerging markets space in Russia and Ukraine issuers, including PJSC Lukoil Oil Co.’s notes that traded about 5½ points higher on Wednesday, a source said.

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