Mallinckrodt sinks on restructuring talk; Bed Bath better after announcing revamp plan

By James McCandless

San Antonio, Sept. 5 – The distressed debt market saw shifts in the pharma and retail sectors on Thursday.

Mallinckrodt plc’s notes sank after the news broke that the company has hired restructuring advisers in the face of increasing legal challenges.

The 5½% senior notes due 2025 crashed 10¾ points to close at 33¼ bid. The 4 7/8% senior notes due 2020 fell 3½ points to close at 57½ bid.

Late Wednesday, news broke that the Staines-upon-Thames, England-based drug maker has hired Latham & Watkins and AlixPartners as restructuring advisers.

The company is exploring restructuring options and even bankruptcy protection.

In retail, Bed Bath & Beyond Inc.’s paper moved upward after the company announced a revitalization plan involving inventory reduction.

The 5.165% senior notes due 2044 tacked on ¼ point to close at 70½ bid. The 4.915% senior notes due 2034 gained 1 point to finish at 75½ bid.

After the Wednesday close, the Union, N.J.-based retail company sent a letter to shareholders outlining its revitalization plan.

The company plans a “rapid refresh” of 160 of the company’s stores before the holiday shopping season, the closure of underperforming stores over the next few years and will begin an “aggressive reduction” of its inventory by $1 billion.

© 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.