Subsequent Events

9 Months Ended

Sep. 27, 2019

Subsequent Event [Line Items]

Subsequent Events

19. Subsequent Events

Divestitures

On November 4, 2019, the Company announced it has completed the sale of BioVectra. Subsequent to September 27, 2019, the terms of the transaction were updated, with total consideration of up to $250.0 million including an upfront payment of $135.0 million and contingent consideration of $115.0 million based on the long-term performance of the business.

Financing Activities

On November 5, 2019, upon the terms and conditions set forth in a confidential offering memorandum dated November 5, 2019, Mallinckrodt International Finance S.A. and Mallinckrodt CB LLC, each a wholly owned subsidiary of the Company (the "Issuers") commenced private offers to exchange (the "Exchange Offers") any and all of (i) the 4.875% Senior Notes due April 2020 issued by the Issuers for new 10.000% Second Lien Senior Secured Notes due 2025 to be issued by the Issuers (the "New Notes") and (ii) the 5.750% Senior Notes due August 2022, 4.750% Senior Notes due April 2023, 5.625% Senior Notes due October 2023 and 5.500% Senior Notes due April 2025 issued by the Issuers (collectively, and together with the 4.875% Senior Notes due April 2020, the "Notes") for up to $355.0 million of New Notes. In connection with the Exchange Offers, the Issuers also commenced solicitations of consents from the holders of each series of Notes (other than the 4.750% Senior Notes due April 2023) to amend the indentures governing such series of Notes to eliminate certain of the covenants, restrictive provisions, events of default and related provisions therein.

On November 5, 2019, Deerfield Partners, L.P., Deerfield Special Situations Fund, L.P. and Deerfield Private Design Fund IV, L.P. (the "Exchanging Holders") entered into an exchange agreement (the "Exchange Agreement") with the Issuers pursuant to which such Exchanging Holders agreed to, among other things, exchange with the Issuers on the settlement date of the Exchange Offers, separate from such Exchange Offers, their holdings of Notes (comprised of approximately $67.6 million aggregate principal amount 4.875% Senior Notes due April 2020, approximately $258.7 million aggregate principal amount of the 4.750% Senior Notes due April 2023, approximately $98.5 million aggregate principal amount of the 5.625% Senior Notes due October 2023 and approximately $75.2 million aggregate principal amount of 5.500% Senior Notes due April 2025) for approximately $227.0 million aggregate principal amount of New Notes.  The consummation of the Exchange Offers may have a material impact on the Company's financial condition, results of operations and cash flows.

Commitments and Contingencies

Certain litigation matters occurred during the nine months ended September 27, 2019 or prior, but had subsequent updates through the issuance of this report. See further discussion in Note 15.