Carvana edges up after stock sale; Endo under pressure; Mallinckrodt higher over week

By Cristal Cody

Tupelo, Miss., April 22 – Online car seller Carvana Co.’s senior notes traded about ½ point to 1½ points better on Friday but continue to tread near distressed levels with prices in the high 70s and low 80 handles and yields around 9%.

Carvana’s bonds saw strong secondary action after the company announced that it priced $1.25 billion of class A common stock in an offering upsized from $1 billion.

Carvana’s 4 7/8% senior notes due 2029 (Caa2/CCC+) were quoted ¾ point better on the day at 77¾ bid on $18 million of volume.

In other distressed paper, Endo International plc’s bonds were about 2 7/8 points to 3½ points lower on the week headed into the weekend following the company’s opioid-related settlement with Alabama this week.

Endo Finance LLC’s 9½% senior secured notes due 2027 (Caa2/CCC+) were up 1/8 point at 82½ bid in late afternoon trading, a market source said.

The bonds are down from 86 bid a week ago.

Notes from Mallinckrodt plc, which also faces opioid-related claims from Alabama moving through bankruptcy court, were trading about ½ point to 3 points higher on the week.

The company’s 5½% senior notes due 2025 saw a ¾ point bump on Friday and headed out 3 points better on the week at 53 bid, a source said.

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