Pharma names lower on more settlement news; Rackspace improves after conference call

By James McCandless

San Antonio, Aug. 28 – More turmoil in the pharmaceutical sector and a rally in energy drove the distressed space on Wednesday.

Teva Pharmaceutical Industries Ltd.’s notes trended lower amid news that a competitor is in talks to settle all opioid-related lawsuits against it for billions.

The 2.8% senior notes due 2023 lost ½ point to close at 83½ bid. The 6¾% senior notes due 2028 shaved off ¼ point to close at 83 bid.

Sector peers Endo International plc’s and Mallinckrodt plc’s notes were also declining.

Meanwhile, software name Rackspace Inc.’s paper moved up after the company held a conference call on its latest earnings report.

The 8 5/8% senior notes due 2024 added 2¾ points to close at 90½ bid.

The 8 5/8% notes saw about $16 million on the tape.

The San Antonio-based private cloud computing name held a conference call with stakeholders on Wednesday.

“It’s private, but from what we can tell it looks like the holders are happy,” a trader said.

In energy, Tallgrass Energy LP’s notes dropped after a majority shareholder offered the company a buyout deal that would take it private.

As oil futures gained, Oasis Petroleum Inc.’s, Valaris plc’s and Diamond Offshore Drilling, Inc.’s issues rose in kind.

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