...April 9, 2020 NEW YORK (S&P Global Ratings) April 9, 2020--Global biopharmaceutical manufacturer Mallinckrodt PLC entered into an agreement with certain investors to exchange $495 million of its senior unsecured notes due April 2020 in a par-for-par transaction for 10% first-lien notes due 2025. The company plans to pay the remainder of its 2020 notes with cash. We do not consider this a distressed exchange because we think the noteholders were adequately compensated for the extension in maturity with higher priority in the capital structure and a higher interest rate. We affirmed our 'B-' issue-level rating on the existing first-lien debt. The recovery rating is unchanged at '1', reflecting our expectation for very high recovery (90%-100%; rounded estimate 95%) in the event of a payment default. We think the company's first-lien recovery is still high, despite the $495 million of additional debt, because of the substantial support from the second-lien and unsecured tranches. We also affirmed...
