Research Update: Mallinckrodt PLC Upgraded To 'B+' From 'D' Following Emergence From Bankruptcy, Outlook Stable; New Debt Rated

Specialty pharmaceutical company Mallinckrodt PLC has emerged from bankruptcy following the completion of its examinership proceedings in Ireland, where it is headquartered. The company emerged from bankruptcy with about $1.75 billion of secured debt and $230 million of unsecured claims, which represents a reduction from the about $4.9 billion of debt-like obligations (including about $1 billion of opioid liabilities) under its prepetition capital structure. Therefore, we raised our issuer credit rating on Mallinckrodt to 'B+' from 'D'. At the same time, we assigned our 'BB+' issue-level rating and '1+' recovery rating to its $229 million first-out term loan and our 'B+' issue-level rating and '3' recovery rating to its $642 million second-out secured notes and $779 second-out term loan, issued

... PLC has emerged from bankruptcy following the completion of its examinership proceedings in Ireland, where it is headquartered. - The company emerged from bankruptcy with about $1.75 billion of secured debt and $230 million of unsecured claims, which represents a reduction from the about $4.9 billion of debt-like obligations (including about $1 billion of opioid liabilities) under its prepetition capital structure. - Therefore, we raised our issuer credit rating on Mallinckrodt to 'B+' from 'D'. At the same time, we assigned our '##+' issue-level rating and '1+' recovery rating to its $229 million first-out term loan and our 'B+' issue-level rating and '3' recovery rating to its $642 million second-out secured notes and $779 second-out term loan, issued by Mallinckrodt International Finance S.A. and Mallinckrodt CB LLC. We do not rate the company's $200 million asset-based lending (ABL) facility. - The stable outlook reflects our expectation...

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