Endo notes higher; Mallinckrodt mixed; Team Health, Envision improve; Air Method paper quiet

By Cristal Cody

Tupelo, Miss., Nov. 1 – Paper in the distressed health care and pharmaceutical space had mixed demand on Monday.

Notes from Endo International plc, Team Health Holdings, Inc. and Envision Healthcare Corp. gained.

Endo’s 6% senior notes due 2028 (Caa3/CCC+) +) traded up ¾ point early in the session to ½ point better by the close.

Mallinckrodt plc’s bonds were mixed in strong activity as the company continues a Chapter 11 bankruptcy process.

In the health care space, Team Health’s 6 3/8% senior notes due 2025 (Caa3/CCC) rose about 1 point.

Envision Healthcare’s 8¾% senior notes due 2026 (Ca/CC) picked up about ½ point by the close.

Air Methods Corp.’s notes were not active Monday. The company’s 8% senior notes due 2025 (Caa3/CCC) were last seen Friday down about 2½ points on the week and ending the month nearly 20 points softer.

Market tone tone was mixed with stocks higher as measured volatility crept up about 1%.

The iShares iBoxx High Yield Corporate Bond ETF closed off 9 cents to $86.56.

Oil was unchanged to stronger Monday.

West Texas Intermediate crude oil benchmark futures for December deliveries rose 48 cents to settle at $84.05 a barrel.

Endo recovering

Endo Finance LLC’s 6% senior notes due 2028 were ½ point better by the close Monday at 70¼ bid, a source said.

The bonds went out Friday at 69¾ bid, 2¾ points lower on the week.

The issue is down about 2½ points from where it traded a month ago at 73 bid.

Endo announced in September that the company and its subsidiaries reached agreements to settle opioid-related lawsuits in Louisiana and New York.

The Dublin-based pharmaceuticals maker also announced in July that subsidiaries reached a $35 million settlement in Tennessee.

Mallinckrodt mixed

Mallinckrodt’s 5½% notes due 2025 were quoted at 45½ bid in heavy trading Monday totaling $12 million, a source said.

The notes were about ¼ point better than where the issue was seen in thin activity in the prior week.

Meanwhile, Mallinckrodt’s 5¾% notes due 2022 ended the session down ¾ point at 43¾ bid, while the company’s 5 5/8% notes due 2023 headed out ¼ point higher from Friday at 45½ bid.

The pharmaceuticals maker (D) is underway in a Chapter 11 bankruptcy process in the U.S. Bankruptcy Court for the District of Delaware.

Opioid-related lawsuits the company faces also are moving through the bankruptcy court.

Mallinckrodt, based in Dublin and St. Louis, filed for Chapter 11 on Oct. 12, 2020.

Team Health better

Team Health’s 6 3/8% senior notes due 2025 added about 1 point to trade at 89¾ bid over Monday’s session, a source said.

The notes ended Friday mostly flat on the week.

Team Health issued the notes via Tennessee Merger Sub, Inc.

The Knoxville, Tenn.-based medical staffing firm is owned by Blackstone Group LP.

Envision notes up

Envision Healthcare’s 8¾% senior notes due 2026 improved about ½ point by the end of day to 68 bid, a source said.

The bonds ended the prior week about ½ point better.

Nashville-based Envision is a healthcare company and hospital-based physician group.

Air Methods quiets

ASP AMC Holdings Inc.’s notes were quiet in the secondary market on Monday, a source said.

Subsidiaries Air Methods’ and ASP AMC Merger Sub Inc.’s 8% senior notes due 2025 (Caa3/CCC) were last seen on Friday and ending October at 76½ bid.

The issue was about 2½ points lower on the week and down from 94½ bid quoted at the start of October.

The New York-based ambulance service provider’s bonds have been under pressure with legislation expected to curb out-of-network fees and reduce its margin.

Distressed index down

Distressed index returns ended Friday weaker and closed October soft.

The S&P U.S. High Yield Corporate Distressed Bond Index’s one-day total return dropped to negative-0.19%, compared to 0.22% on Thursday, negative-0.17% on Wednesday, negative-0.01% on Tuesday and 0.06% at the week’s start on Oct. 25.

The index’s month-to-date total return softened to negative-0.92% on Friday. The monthly returns were negative-0.73% on Thursday, negative-0.94% on Wednesday, negative-0.77% on Tuesday and negative-0.77% at the start of the week.

Year-to-date total returns fell to 29.03% on Friday versus 29.28% on Thursday. Yearly returns totaled 29% on Wednesday, 29.22% on Tuesday and 29.23% at the beginning of the week.

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