Mallinckrodt bonds drop after drawing down revolver; Whiting active on tender offer

By James McCandless

San Antonio, Aug. 29 – The distressed debt market continued to focus on pharmaceutical and energy names on Thursday.

Mallinckrodt plc’s notes dropped throughout the day after a subsidiary drew down the remaining balance of its revolving credit facility.

The 4¾% senior notes due 2023 crashed 9¾ points to close at 39 bid. The 4 7/8% senior notes due 2020 shed 8¼ points to close at 79¾ bid.

Late Wednesday, a subsidiary of the Staines-upon-Thames, England-based pharmaceuticals maker drew down the remaining $95 million of the liquidity available on its revolver.

The company said that the increased liquidity puts it on better footing to “address cash needs that may arise in the future,” Prospect News reported.

Elsewhere, in energy, Whiting Petroleum Corp.’s paper was mixed in trading as the company announced a tender offer for its convertible securities.

The 6¼% senior notes due 2023, while pushing up to 79 bid during the day, ended unchanged at 78½ bid. The 6 5/8% senior notes due 2026 shaved off ¼ point to close at 75½ bid.

The Denver-based independent oil and gas producer announced on Thursday that it has started a tender offer to purchase up to $300 million of its $562,075,000 outstanding 1.25% convertible senior notes due 2020.

© 2015 Prospect News.
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