U.S. Steel notes lower on acquisition news; Mallinckrodt active in pharmaceutical space

By James McCandless

San Antonio, Oct. 1 – The distressed debt session was focused on newsmakers in the manufacturing and pharma spaces.

United States Steel Corp.’s notes headed lower after the company announced the acquisition of a major stake in Big River Steel.

The 6¼% senior notes due 2026 fell 1¼ points to close at 83 bid. The 6 7/8% senior notes due 2025 dropped 1¼ points to close at 89¼ bid.

The two tranches combined to see about $33 million change hands.

On Tuesday morning, the Pittsburgh-based steel manufacturer announcing that it was purchasing a $700 million stake in competitor Big River Steel, giving the company a 49.9% stake.

As part of the agreement, there is a call option to purchase the rest of the company within the next four years.

In pharma, Mallinckrodt plc’s issues varied amid news that the company and other drug makers are seeking to take part in Purdue Pharma’s bankruptcy.

The 5 5/8% senior notes due 2023 lost 1 point to close at 31 bid. The 5¾% senior notes due 2022 held level at 35 bid.

After the close on Monday, news broke that the Staines-upon-Thames, England-based drug maker and other names in the space are considering using Purdue Pharma’s blanket settlement with all entities suing it to form their own remedies.

© 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.