Mallinckrodt, Hertz bonds trade higher; Tullow declines; AMC Entertainment notes improve

By Cristal Cody

Tupelo, Miss., Feb. 19 – The distressed space saw bonds from bankrupt issuers Mallinckrodt plc and Hertz Corp. climb higher on Friday.

Pharmaceuticals maker Mallinckrodt plc’s 5¾% senior notes due 2022 gained 1½ points to 54¼ bid on trading volume of $8 million, a market source said.

The company filed for Chapter 11 bankruptcy in October.

In a motion filed earlier in February with the U.S. Bankruptcy Court for the District of Delaware, Mallinckrodt said it has reached an agreement with restructuring support agreement parties to pursue a plan of reorganization.

Car rental company Hertz Corp.’s 5½% notes due 2024 climbed to 71¾ bid on Friday in heavy secondary trading, a market source said.

The notes were last seen trading Wednesday at 68 bid.

In the secondary market, London-based oil and gas explorer Tullow Oil plc’s 7% senior notes due 2025 (Caa2/CCC+) gave back more 1½ points in trading on Friday to go out at 78¾ bid, a source said.

In other distressed secondary trading, movie theater owner AMC Entertainment Holdings, Inc.’s bonds remained better on Friday, a source said.

The company’s 12% second-lien senior secured notes due 2026 (Ca/C) were quoted up 1¾ points at 68¼ bid.

Trading volume totaled $7.5 million.

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