Endo mixed on potential bankruptcy; Bausch, CHS, Avaya paper declines; Envision quiet

By Cristal Cody

Tupelo, Miss., Aug. 9 – Endo International plc’s paper mostly gained on Tuesday after the company reported steep second-quarter losses and a potential Chapter 11 bankruptcy filing.

Subsidiary Par Pharmaceutical Inc.’s 7½% senior secured first-lien notes due 2027 (Caa2/CC) went out at 82½ bid, up 1¼ points from Monday, on $16 million of volume, a source said.

The distressed health care space is expanding with issuers including Endo, Bausch Health Cos. Inc., Lannett Co., Inc. and Envision Healthcare Corp. filling out a default watchlist, according to a BofA Securities Inc. research note on Friday.

Bausch’s senior notes (B3/B-/B) traded about 1/8 point to 1 5/8 points weaker on Tuesday after the pharmaceutical company posted lower second-quarter losses, a source said.

Envision Healthcare’s 8¾% senior notes due 2026 (Ca/CC) have been quiet this week after ending the prior week mostly flat at 33½ bid, a source said.

Also in the distressed health care space, CHS/Community Health Systems, Inc.’s 6 7/8% senior secured second-lien notes due 2029 (Caa2/CCC/CCC) fell ¾ point to 60¼ bid, a source said.

In other distressed paper trading heavily on Tuesday, Avaya Holdings Corp.’s 6 1/8% senior notes due 2028 (B3/CCC) slid 7¼ points to 49 bid on over $20 million of secondary volume, a source said.

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