Mallinckrodt ramps up; Nabors, Laredo, Baytex, Peabody gain; W&T, Transocean dip; AMC better

By Cristal Cody

Tupelo, Miss., April 8 – Bankrupt pharmaceuticals maker Mallinckrodt plc’s bonds saw a second day of secondary market gains on Thursday.

Mallinckrodt’s 5¾% notes due 2022 added 2½ points during the session to 73¼ bid on more than $7.5 million of paper traded, a source said. The notes improved 2½ points on Wednesday.

The company announced in March that it reached an agreement with a group of first-lien term lenders holding about $1.3 billion of its outstanding first-lien term loans to support its restructuring support agreement.

Mallinckrodt (D) filed for Chapter 11 bankruptcy in October in the U.S. Bankruptcy Court for the District of Delaware.

The company, with principal offices in Dublin and St. Louis, has received approval to extend filing a bankruptcy restructuring plan until Aug. 9.

Diamond Sports slips

In other secondary market action, Diamond Sports Group LLC’s 5 3/8% senior secured notes due 2026 (Ba3/CCC+) fell more than 1¼ points to 69 bid on more than $6.5 million of paper traded Thursday, a source said.

The issue was quoted in late February at 74¼ bid and traded at the start of the year at 81¼ bid.

The Chesapeake, Va.-based sports broadcast group’s bonds have declined since parent company Sinclair Broadcast Group, Inc. reported in February soft guidance for the subsidiary and an interest in liability management initiatives that could include a debt exchange or redemption.

Moody’s Investors Service downgraded the notes in March.

Energy bonds mixed

Looking at the Covid-19 hard-hit cruise sector, London-based cruise port operator Global Ports Holding plc’s 8 1/8% notes due 2021 (Caa2) climbed more than 2 points to 87 bid on $2 million of secondary volume, a source said Thursday. The notes are yielding more than 34%.

Overall market tone leaned toward positive over the day.

The iShares iBoxx High Yield Corporate Bond ETF rose 3 cents to $87.26.

Oil prices were mixed.

North Sea Brent crude oil futures for June deliveries added 4 cents to settle at $63.20 a barrel.

West Texas Intermediate crude oil futures for May deliveries fell 17 cents to settle at $59.60 a barrel, while June deliveries declined 18 cents to settle at $59.63 a barrel.

Energy bonds were mixed in mostly light volume, sources said.

Oil and gas drilling contractor Nabors Industries Inc.’s 5¾% senior notes due 2025 (Caa2/CCC-) traded 1½ points better during the session to 78 bid on $2 million of secondary supply.

Tulsa-based Laredo Petroleum Inc.’s 10 1/8% senior notes due 2028 (Caa1/B-) rose more than 2 points to the 100¼ bid area in thin volume.

Calgary, Alta.-based oil and gas explorer Baytex Energy Corp.’s 8¾% senior notes due 2027 (B3/B+) improved 1¼ points to 92½ bid in thin action.

Meanwhile, Vernier, Switzerland-based offshore driller Transocean Ltd.’s 6.8% notes due 2038 (C/CCC-) softened 1 1/8 points to 46½ bid on $7.5 million of issues traded.

Houston-based oil and gas producer W&T Offshore Inc.’s 9¾% senior secured notes due 2023 (Caa3/B) dropped 1¼ points to 88 bid in light secondary supply.

Coal bonds were active a second day on Thursday, a source said.

St. Louis-based coal producer Peabody Energy Corp.’s 8½% senior secured notes due 2024 (Caa1/CCC-) were up nearly 2 points to trade better than 47¼ bid.

AMC notes climb

AMC Entertainment Holdings, Inc.’s bonds were mixed but mostly better in distressed secondary trading on Thursday, a source said.

AMC’s 12% second-lien senior secured notes due 2026 (Ca/C) were quoted up 1 5/8 points at 90 bid on $6 million of issues traded.

The notes opened the week at 82½ bid and traded at the start of the year at 27 bid.

AMC, a Leawood, Kansas-based movie theater owner, reported in March that 98% of its U.S. locations have reopened.

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