PetSmart notes active as term loan eyed; Mallinckrodt paper varies in pharma space

By James McCandless

San Antonio, Oct. 21 – As the week reached its midpoint, shifting ground in retail and pharma marked the distressed debt market.

PetSmart Inc.’s notes were active but diverging in direction as the company prepares to price a term loan.

The 8 7/8% senior notes due 2025 held level to close at 104½ bid. The 5 7/8% senior notes due 2025 inched up ¼ point to close at 103¼ bid.

The Phoenix-based pet supplies retailer’s structure saw more attention as the company prepares to price a $2.3 billion term loan.

Meanwhile, in the pharma space, Mallinckrodt plc’s paper varied as a peer in the industry settled all opioid claims against it.

The 5 5/8% senior notes due 2023 declined ½ point to close at 35 bid. The 4¾% senior notes due 2023 shot up ½ point to close at 10½ bid.

During Wednesday’s activity, the pharma sector was rocked after the Department of Justice announced that industry giant Purdue Pharma had agreed to plead guilty to criminal charges related to the marketing of opioids.

The company faces penalties of about $8.3 billion.

Last week, Mallinckrodt, the Staines-upon-Thames, England-based drug producer, filed for Chapter 11 bankruptcy after facing similar claims over opioids.

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