Mallinckrodt PLC Ratings Placed On CreditWatch Negative On Planned Acquisition

Dublin, Ireland-based pharmaceutical company Mallinckrodt PLC plans to acquire Sucampo Pharmaceuticals Inc. for $1.2 billion, including debt assumed. We believe leverage could remain above 5x for more than a year, versus our previous expectation that leverage would generally remain between 4x-5x. We are placing our ratings on the company, including the 'BB-' corporate credit rating, on CreditWatch with negative implications. We expect to resolve the CreditWatch placement when the transaction closes, and may update the CreditWatch when we have more clarity about the company's expectations for 2018 and further information on the company's financial policy and its plans to reduce leverage. NEW YORK (S&P Global Ratings) Dec. 29, 2017--S&P Global Ratings today placed its ratings on Mallinckrodt PLC, including the

...+ Dublin, Ireland-based pharmaceutical company Mallinckrodt PLC plans to acquire Sucampo Pharmaceuticals Inc. for $1.2 billion, including debt assumed. + We believe leverage could remain above 5x for more than a year, versus our previous expectation that leverage would generally remain between 4x-5x. + We are placing our ratings on the company, including the '##-' corporate credit rating, on CreditWatch with negative implications. + We expect to resolve the CreditWatch placement when the transaction closes, and may update the CreditWatch when we have more clarity about the company's expectations for 2018 and further information on the company's financial policy and its plans to reduce leverage. NEW YORK (S&P Global Ratings) Dec. 29, 2017--S&P Global Ratings today placed its ratings on Mallinckrodt PLC, including the '##-' corporate credit rating, on CreditWatch with negative implications. The CreditWatch placement follows Mallinckrodt's announcement that it will acquire Sucampo Pharmaceuticals...

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