Upsized Mallinckrodt prices, gains; Rite Aid firms; energy mixed despite oil slide

By Paul A. Harris and Paul Deckelman

New York, April 8 – The high-yield primary realm saw only one deal get priced on Wednesday – but it was a big one.

Syndicate sources said that a financing subsidiary of Mallinckrodt plc came to market with an upsized $1.4 billion two-part regularly scheduled forward calendar offering consisting of five- and 10-year notes.

After pricing, traders said that both tranches firmed smartly in limited initial aftermarket activity. The company’s existing bonds were also seen on the upside.

The Junkbondland forward calendar meantime grew, with Fiat Chrysler Automobiles NV, Ryman Hospitality Properties, Inc. and Grand City Properties SA seen likely to soon bring new dollar-denominated bond issues to market. But a prospective sterling-based transaction from International Personal Finance plc was heard to have been withdrawn.

Among recently priced issues, Rite Aid Corp.’s eight-year megadeal firmed in busy trading after the company reported fiscal fourth-quarter and full-year earnings. Peabody Energy Corp.’s big new seven-year issue saw a second straight session of gains after a hedge fund operator touted the company as a value play.

Energy credits – which had benefitted this week from surging world crude oil prices – were mixed on Wednesday, with some names, such as Linn Energy LLC, continuing to ride that upward momentum despite a tumble in crude, while others, like California Resources Corp., following oil prices down.

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