Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for Mallinckrodt plc > News item |
S&P boosts Mallinckrodt
S&P said it boosted Mallinckrodt plc’s issuer rating to B+ from D and assigned BB+ issue-level and 1+ recovery ratings to its $229 million first-out term loan and B+ issue-level and 3 recovery ratings to its $642 million second-out secured notes and $779 second-out term loan, issued by Mallinckrodt International Finance SA and Mallinckrodt CB LLC.
The agency does not rate the company's $200 million asset-based lending facility.
The outlook is stable.
“While our view of the company's business is largely unchanged, the B+ rating reflects its lower debt levels and improved discretionary cash flow (DCF). Mallinckrodt emerged from bankruptcy with about $1.9 billion less secured debt. Additionally, the company resolved its claims with the Opioid Master Trust for about $1 billion less than it originally promised, eliminating the annual cash settlement payments of between $125 million and $200 million.
“Under its revised capital structure, we expect leverage in the 4x-4.5x range, FOCF to debt of generally above 5%, and EBITDA interest coverage of less than 2.5x,” S&P said in a press release.
© 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.