Distressed pharmaceutical paper mixed; Endo lower; Mallinckrodt up; Telesat softens

By Cristal Cody

Tupelo, Miss., April 20 – Distressed pharmaceutical paper saw a mixed reception in the secondary market a day after Alabama announced a $276 million opioid-related settlement with three companies.

Endo International plc’s secured notes remained soft after the drug manufacturer reached the deal with the state.

Endo Finance LLC’s 9½% senior secured notes due 2027 (Caa2/CCC+) fell nearly 1¼ points to a print of 82.32 by late afternoon on $8 million of secondary action, a source said.

The notes were down 2¼ points to 83½ bid on $7 million of volume on Tuesday.

Alabama also has claims moving through bankruptcy court for other drug manufacturers, including Mallinckrodt plc.

Mallinckrodt’s notes rallied about 1¾ points to over 7 points on Wednesday from the start of the week, according to a market source.

Mallinckrodt’s 5 5/8% notes due 2023, last active on Monday and down 5 points at 45 bid, climbed to 52½ bid in a handful of trades.

Distressed secondary action was quieter on Wednesday with trading seen more in higher-rated Ba1 and B2 junk issues, according to a market source.

The satellite communications space was soft with Telesat Canada LLC’s 6½% senior notes due 2027 (Caa2/CCC+) down 1 point to 46½ bid, a source said.

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