Mallinckrodt plc Downgraded To 'CC' On Exchange Offers; Ratings Placed On CreditWatch Negative

Staines-Upon-Thames, U.K.-headquartered specialty pharmaceutical manufacturer Mallinckrodt plc recently announced a limited offer to exchange its unsecured notes across a number of maturities for a lesser principal of new 10.0% second-lien notes due 2025. We view this transaction as a distressed exchange, in which lenders are receiving less in the exchange than originally promised. We are lowering our long-term issuer credit rating to 'CC', our senior secured rating to 'CCC', our senior unsecured rating to 'CC', and our subordinated unsecured rating to 'C' and placing all ratings on CreditWatch with negative implications. We expect to resolve the CreditWatch when the exchange is completed, at which time we will likely lower the issuer rating to 'SD' and update our recovery analysis. NEW

...November 5, 2019 - Staines-Upon-Thames, U.K.-headquartered specialty pharmaceutical manufacturer Mallinckrodt plc recently announced a limited offer to exchange its unsecured notes across a number of maturities for a lesser principal of new 10.0% second-lien notes due 2025. - We view this transaction as a distressed exchange, in which lenders are receiving less in the exchange than originally promised. - We are lowering our long-term issuer credit rating to '##', our senior secured rating to '###', our senior unsecured rating to '##', and our subordinated unsecured rating to 'C' and placing all ratings on CreditWatch with negative implications. - We expect to resolve the CreditWatch when the exchange is completed, at which time we will likely lower the issuer rating to '##' and update our recovery analysis. NEW YORK (S&P Global Ratings) Nov. 5, 2019--S&P Global Ratings today took the rating actions listed above. Our ratings reflect our view that Mallinckrodt's announced exchange offers...

Ratings Action