S&P rates Mad Engine, loan B

S&P said it gave B ratings to Mad Engine Global LLC and its expected $250 million senior secured first-lien term loan maturing in 2027. The loan’s recovery rating is 3 reflecting an expectation for average (50%-70%; rounded estimate: 50%) recovery in default.

“The B rating on Mad Engine primarily reflects its small scale, narrow product and geographic focus, modest customer concentration, and ownership by financial sponsor Platinum Equity. It has a solid portfolio of licenses, well-diversified supplier base, demonstrated history of good operating execution and good print-on-demand growth prospects,” the agency said in a press release.

Mad Engine plans to acquire Fifth Sun Holdings. It will use equity and debt will finance the transaction, including a new unrated $75 million asset-based lending revolving credit facility due in 2026 and the $250 million term loan.

The outlook is stable.

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