Mallinckrodt launches $900 million term loan B at SOFR plus 600 bps

By Sara Rosenberg

New York, April 28 – Mallinckrodt plc launched on Thursday its $900 million senior secured covenant-lite term loan B due Sept. 30, 2027 (B3/B) with price talk of SOFR plus 600 basis points with 0 bps CSA, a 0.75% floor and an original issue discount of 95 to 96, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc., MUFG, Barclays and Deutsche Bank Securities Inc. are the joint bookrunners on the deal.

Commitments are due at noon ET on May 10, the source added.

Proceeds will be used with cash on hand to repay existing revolving credit facility borrowings, to make certain other payments and distributions required in connection with the company’s bankruptcy emergence, and to pay fees and expenses.

Mallinckrodt is a Dublin-based developer, manufacturer, marketer and distributor of specialty pharmaceutical products and therapies. The company filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Oct. 12, 2020 under case number 20-12522.

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