Mallinckrodt jumps on bankruptcy settlement; California Resources eyed in energy space

By James McCandless

San Antonio, Feb. 25 – The distressed debt market continued to focus on shifting ground in the pharma and energy sectors.

Mallinckrodt plc’s notes jumped after the company announced that a bankruptcy filing for its U.S. generics business was part of a settlement of opioid-related claims.

The 5¾% senior notes due 2022 shot up 23½ points to close at 82 bid. The 5 5/8% senior notes due 2023 rose 20½ points to close at 69 bid.

On Tuesday morning, news broke that the Dublin-based generic pharmaceuticals producer has reached a settlement to resolve all opioid-related litigation that has piled up in recent months.

As part of the settlement, the company agreed to pay $1.6 billion and would have its U.S. generics business file for Chapter 11 bankruptcy.

Meanwhile, energy producer California Resources Corp.’s paper varied in the midst of an exchange offer.

The 6% senior notes due 2024 shaved off ½ point to close at 24 bid. The 8% senior secured notes due 2022 inched up ¼ point to close at 26¾ bid.

The Los Angeles-based independent oil and gas producer’s paper has remained in high demand amid an exchange offer for its second-lien notes due 2022 as well as its remaining unsecured notes due 2021 and 2024.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.