Mallinckrodt recoups earlier losses; Ultra Petroleum leads energy space; retailers down

By James McCandless

San Antonio, Oct. 5 – Trading in the distressed debt market was lighter on Friday as the long weekend approached.

Mallinckrodt plc’s notes rebounded from losses sustained on Thursday after news broke that a competitor received FDA approval for a generic version of one of Mallinckrodt’s drugs.

Elsewhere in the medical space, Community Health Systems, Inc.’s issues also rebounded from the previous day.

In a mixed day for oil futures, Ultra Petroleum Corp.’s paper saw a decline. Other trading in the sector, with the focus on Bristow Group Inc., Sanchez Energy Corp. and Petrobras SA, yielded no unifying direction at the close.

In the natural gas sector, Ferrellgas Partners, LP’s notes were mixed after Thursday declines.

The retail space saw a bump of largely negative activity centered on J.C. Penney Co., Inc. and Rite Aid Corp.

Mallinckrodt’s notes reversed earlier losses, traders said.

The 4¾% notes due 2023 added 4 points to close at 86½ bid.

On Thursday, the 4¾% notes fell 3¼ points, falling to as low as 82¼ bid, according to Trace data.

Traders sent the notes lower on Thursday after competitor Praxair announced that the FDA had approved a generic version of neonatal respiratory aid Inomax. The drug contributed about 21% of Mallinckrodt’s second-quarter sales.

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