S&P alters Mad Engine recovery rating

S&P said it revised the recovery rating for Mad Engine Global LLC’s upsized term loan to 4 from 3, indicating an expectation for average (30%-50%; rounded estimate: 45%) recovery in default. Mad Engine hiked the size of the loan by $35 million to $310 million.

“The lower recovery rating reflects lower recovery prospects for the term loan given the increase in claims relative to our estimated valuation at emergence from default,” S&P said in a press release.

The company intends to use the extra proceeds to fund the acquisition of Fortune Screen Printing LLC and repay a portion of the borrowings on its revolving credit facility.

S&P also affirmed the B ratings on Mad Engine and its senior secured term loan.

The outlook is stable.

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