Bausch offering eyed; Mallinckrodt skyrockets; Endo, Teva gain; Tupperware nosedives

By Paul A. Harris and Abigail W. Adams

Portland, Me., Feb. 25 – Coronavirus-induced volatility again sidelined the domestic high-yield primary market, which was silent as the sell-off in risk assets intensified on Tuesday.

While the active forward calendar is thin, Bausch Health Americas Inc. was heard to be on the verge of announcing a two-tranche $3.25 billion megadeal.

Meanwhile, the secondary space was volatile on Tuesday with the market opening the day with a slight gain only to drop another ¾ to 1 point by market close.

While the sell-off intensified on Tuesday, it remained orderly with panic yet to set in, a market source said.

Mallinckrodt plc’s junk bonds were the bright spot of Tuesday’s session with the capital structure jumping 10 to 20 points following an opioid settlement that may shield it from future liability and an exchange offer for its soon-to-mature notes.

Teva Pharmaceutical Industries’ and Endo International plc’s junk bonds gained in sympathy.

Tupperware Brands Corp.’s 4¾% senior notes due 2021 saw the largest decline in junkbondland on Tuesday after the fallen angel announced an accounting probe that would delay its earnings report.

© 2015 Prospect News.
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