PG&E notes lower after restructuring plan submitted; Mallinckrodt lifted on asset sale

By James McCandless

San Antonio, Sept. 10 – Shifts in the utilities and pharma sectors led much of the activity in the distressed debt space on Tuesday.

PG&E Corp.’s notes were headed lower as stakeholders and the market debated the viability of its restructuring plan.

The 6.05% notes due 2034 shaved off ½ point to close at 108½ bid.

After the close on Monday, the San Francisco-based bankrupt electric utility announced that it had filed a restructuring plan in bankruptcy court.

Meanwhile, in pharma, Mallinckrodt plc’s issues were lifted on news that it had agreed to sell its contract manufacturing segment.

The 4 7/8% senior notes due 2020 jumped up 10 points to close at 72 bid. The 5¾% senior notes due 2022 tacked on 4 points to close at 40 bid.

Early Tuesday, news broke that the Stains-upon-Thames, U.K.-based drug maker agreed to sell BioVectra, its contract drug manufacturing unit, for $250 million to private equity name H.I.G. Capital.

In oil and gas, Chesapeake Energy Corp.’s notes rose on news that the company would execute a senior note swap for common stock.

Elsewhere, real estate name Realogy Holdings Corp.’s paper trended better after denying merger or sale talks with peer Compass.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.