Endo rallies; Mallinckrodt gets lift; Talen Energy rebounds; Ligado declines; Telesat up

By Cristal Cody

Tupelo, Miss., Nov. 2 – Endo International plc’s notes rallied 2 points to 4 points on Tuesday following the company’s announcement that a California state opioid-related trial ended in its favor.

Endo’s 6% senior notes due 2028 (Caa3/CCC-) finished the season 4 points higher on $14 million of secondary action.

Mallinckrodt plc’s bonds also were lifted about 1 3/8 points to 3 7/8 points in the distressed space despite the company’s reported third-quarter loss during the session.

Bonds in the junk space saw positive momentum over the session.

The iShares iBoxx High Yield Corporate Bond ETF finished up 21 cents to $86.77.

Oil closed out Tuesday mixed.

West Texas Intermediate crude oil benchmark futures for December deliveries fell 14 cents to settle at $83.91 a barrel.

Talen Energy Supply LLC’s bonds traded higher in back-to-back sessions.

In the satellite communications space, Ligado Networks’ 15½% senior secured first-lien notes due 2023 (Caa1) dropped 1½ points.

Meanwhile, Telesat Canada LLC’s paper improved more than 1 point Tuesday.

Endo notes jump

Endo Finance LLC’s 6% senior notes due 2028 (Caa3/CCC-) shot up 4 points to 74¼ bid on $14 million of paper traded on Tuesday, a source reported.

The notes were ½ point better on Monday after going out Friday at 69¾ bid, 2¾ points lower on the week.

Endo Finance’s 9½% senior secured notes due 2027 (Caa2/CCC-) also rose 2 points to 101 3/8 bid on over $9.6 million of volume.

Endo announced on Tuesday that the trial ended with the California court tentatively ruling Monday that Endo’s subsidiaries Endo Health Solutions Inc. and Endo Pharmaceuticals Inc. are not liable for opioid-related claims.

Endo also reportedly settled an Alabama lawsuit in October, as well as reached agreements to settle opioid-related lawsuits in Louisiana and New York in September.

The Dublin-based pharmaceuticals maker announced in July that its subsidiaries reached a $35 million settlement in Tennessee.

Mallinckrodt higher

Mallinckrodt’s 5¾% notes due 2022 headed out 3 7/8 points better at 46.625 bid after slipping ¾ point in the prior session, a source said.

The issue attracted $1 million of supply.

The company’s 5 5/8% notes due 2023 also improved 1 3/8 points to 47 3/8 bid on $1 million of volume on Tuesday.

The notes were up ¼ point on Monday.

Mallinckrodt on Tuesday reported a third-quarter loss of $263.7 million versus a profit of $191.6 million in the same period last year.

Revenue declined in the third quarter to $507.2 million from $698.3 million in the year-ago period.

The pharmaceuticals maker is underway in a Chapter 11 bankruptcy process in the U.S. Bankruptcy Court for the District of Delaware.

Opioid-related lawsuits the company faces also are moving through the bankruptcy court.

Mallinckrodt, based in Dublin and St. Louis, filed for Chapter 11 on Oct. 12, 2020.

Talen notes up

Talen Energy’s bonds remained higher Tuesday after moving up about 1½ points to over 2 points on Monday.

Talen’s 6½% senior notes due 2025 (Caa1/CCC/CCC+) rose more than 1¾ points to the 65 bid area on $1 million of volume, a source said.

On Monday, Talen’s paper was seen over 1¼ points to about 2 3/8 points higher.

The Woodlands, Tex., and Allentown, Pa.-based power company’s 10½% senior notes due 2026 (Caa1/CCC/CCC+) improved about ¾ point to the 69¼ bid range on Tuesday in light trading.

The notes were over 1¼ points better near the 68½ bid area on Monday.

Ligado trades down

Ligado Networks’ 15½% senior secured first-lien notes due 2023 (Caa1) dropped 1½ points to 88½ bid on $3 million of volume Tuesday, a source said.

The issue remains down about 10 points from the year’s start.

The Reston, Va.-based satellite communications company, formerly known as LightSquared, emerged from Chapter 11 bankruptcy in 2015.

Telesat improves

Also in the satellite communications space on Tuesday, Telesat Canada’s 6½% senior notes due 2027 (Caa1/B) rose more than 1 point to trade better than 82¼ bid on nearly $2 million of volume, a source said.

The Ottawa-based satellite communications company’s notes are down about 15 points since July.

Distressed returns soft

Distressed index returns remained soft as November kicked off.

The S&P U.S. High Yield Corporate Distressed Bond index’s one-day total return was minus 0.05% on Monday.

The index reported returns of minus 0.19% on Friday, 0.22% on Thursday, minus 0.17% on Wednesday, minus 0.01% on Tuesday and 0.06% in the week ago period.

Year-to-date total returns totaled 28.97% on Monday.

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