Pharma names improve on settlement news; Rite Aid declines after ratings downgrade

By James McCandless

San Antonio, Oct. 16 – The Wednesday session in the distressed market saw much of the attention shift to the pharmaceutical sector.

News of more settlements in the pharma industry spurred gains for Mallinckrodt plc’s, Teva Pharmaceutical Industries Ltd.’s and Endo International plc’s notes.

Amid more shifting ground in the industry, pharma names like Mallinckrodt’s notes were gaining, traders said.

The 5.5% senior notes due 2025 added ¾ point to close at 31½ bid. The 5¾% senior notes due 2022 rose ½ point to close at 38 bid.

Also on Wednesday, Teva’s 2.2% senior notes due 2021 gained ¾ point to close at 94 bid. The 6¾% senior notes due 2028 also improved by ¾ point to close at 88 bid.

And Endo’s paper was also lifted. The 6% senior paper due 2023 shot up 3½ points to close at 64½ bid. The 6% senior notes due 2025 tacked on ¼ point to close at 60¾ bid.

In retail, Rite Aid Corp.’s notes responded in a mixed fashion after a ratings agency likened the company’s tender offer to a distressed exchange.

The 6 1/8% senior notes due 2023 shaved off ¼ point to close at 84 bid. The 7.7% senior debentures due 2027 picked up 1¼ points to close at 61¾ bid.

© 2015 Prospect News.
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