Mallinckrodt notes improve; Talen Energy Supply, Shelf Drilling unchanged; GTT soft

By Cristal Cody

Tupelo, Miss., March 10 – Pharmaceuticals maker Mallinckrodt plc’s 5 5/8% senior notes due 2023 climbed in heavy trading volume Wednesday after the bankrupt company announced an agreement reached with lenders.

The notes were quoted trading early at 59 7/8 bid before climbing in the afternoon to 60 3/8 bid, a source said.

The issue was last seen Friday up 2 points at 54¼ bid.

On Wednesday, Mallinckrodt said in a press release that it has reached agreement with an ad hoc group of first-lien term lenders holding about $1.3 billion of its outstanding first-lien term loans to support the company's restructuring support agreement.

Separately, Talen Energy Supply LLC’s 6½% senior notes due 2025 (B3/CCC+/B) were unchanged in strong trading during the session at 84 bid, a source said.

Elsewhere, Shelf Drilling Holdings Ltd.’s 8¼% senior notes due 2025 (Caa3/CCC+) were flat at 74¾ bid on Wednesday, a market source said.

GTT Communications, Inc.’s 7.875% senior notes due 2024 (/C/) were last seen trading Tuesday at 20½ bid, according to a market source on Wednesday.

The notes have softened from the 40 bid range at the start of the year.

On Monday, Fitch Ratings downgraded the Tyson, Va.-based telecommunications and internet services provider to CC from CCC and withdrew the debt ratings.

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