S&P cuts Mallinckrodt

S&P said it downgraded Mallinckrodt plc’s 11˝% first-lien senior secured notes due 2028 to D from CCC+ and 10% second-lien senior secured notes due 2029 to D from CC after the 30-day grace periods for their missed interest payments ended. The company remains current on its other debt.

Concurrently, S&P lowered Mallinckrodt’s issuer rating to SD, selective default, from CCC.

The company also failed to make a $200 million payment to the Opioid Master Trust, which was originally due June 15 but is now due Aug. 15.

“We expect to review our issuer credit rating on the company in the next month. Mallinckrodt continues to explore alternatives to paying the $200 million due to the Opioid Master Trust, including filing for bankruptcy protection. We will update our issuer credit rating on the company and our issue-level ratings on the affected debt to an appropriate level when we receive additional information regarding management's next steps,” S&P said in a press release.

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