PG&E bonds gain on settlement news; Mallinckrodt higher despite rating downgrade

By James McCandless

San Antonio, Dec. 9 – The distressed debt market started the week with a positive tone across several sectors.

PG&E Corp.’s notes gained after the company came to a settlement with California wildfire victims for $13.5 billion.

The 6.05% notes due 2034 picked up 1½ points to close at 106 bid.

Late Friday, the San Francisco-based bankrupt electric utility said it struck a $13.5 billion settlement with the official committee of tort claimants and with firms representing individual claimants who sustained losses from the 2015 Butte Fire, 2017 Northern California Wildfires and 2018 Camp Fire, Prospect News reported.

The deal is subject to conditions and a confirmation in bankruptcy court.

“It moves them forward in the reorganization, and that’s the main goal,” a trader said.

Meanwhile, in pharma, Mallinckrodt plc’s issues traded higher despite receiving a ratings downgrade.

The 4¾% senior notes due 2023 rose 3¾ points to close at 39 bid. The 4 7/8% senior notes due 2020 gained 2¼ points to close at 71¾ bid.

Moody’s Investors Service issued a downgrade for the Staines-upon-Thames, England-based drug maker’s subsidiary Mallinckrodt International Finance SA.

The agency lowered its corporate family rating, senior secured revolver ratings, term loan ratings and issue-level ratings.

© 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.