Mallinckrodt plc (AMEX:MNK) Q4 2022 Earnings Call Transcript

Bryan Reasons: Yeah. I mean, great question. Look, when we negotiated that, we had — we put in an 18-month period that we could prepay that at a significant discount. Clearly, the capital markets shifted since then. So, we still have that opportunity, but we’re looking at the capital structure holistically monitoring the capital markets. So, from a capital allocation, if that’s the best return on our use of liquidity, we’ll do that. But certainly, delevering in other areas of our cap structure have become very attractive as well right now. So — but we have 18 months from emergence to capture that discount.

Brendan Hall: And how are those payments just structured out the year? So, for example, $200 million due in 2023.

Bryan Reasons: Yeah. I think you asked how the payments are structured without a discount that we’d have. We had at emergence, we had a $400 million payment. And then on each — the next two anniversaries, we have $200 million and $200 million and then $150 million and it scales down from there.

Brendan Hall: That’s great.

Daniel Speciale: Any other questions?

Bryan Reasons: SEC document.

Brendan Hall: Got it.

Daniel Speciale: Any other questions, Brendan?

Brendan Hall: No. Yeah. My question is just — I understand the schedule, just if you pay above and beyond that, you capture the discount for any amounts paid. That was the genesis.

Daniel Speciale: Yes. Technically, that’s how that would work. To the extent that we paid more, that would apply against the back end of the payment at a discount. That’s correct.

Brendan Hall: Got it.

Daniel Speciale: Okay. Operator, any other questions?

Operator: And I’m showing no further questions. I would now like to hand the call back to Dan for closing remarks.

End of Q&A:

Daniel Speciale: Thanks. Appreciate it, and thank you all for your interest in Mallinckrodt. We anticipate filing our Form 10-K in the coming days. As a reminder, we’ll be attending the Cowen Healthcare Conference next week. For those attending, we look forward to seeing you all. If you have any questions or interested in meeting with us next week at the conference, let us know we’ll be happy to help. The best way to get a hold of us today will be via e-mail, and Derek and I will work to get back with you all as soon as possible. All the best to you and your families and have a nice day.

Operator: Ladies and gentlemen, this concludes today’s conference. Thank you for participating. You may now disconnect.