S&P moves Mad Engine view to negative

S&P said it revised its outlook for Mad Engine Global LLC to negative from stable and affirmed its B issuer rating.

“Leverage has increased to 6.7x for the last 12 months ended June 30, 2022, due to lower demand for primarily the company's wholesale and brands products, as well as rising costs. This is well above our previous expectations for leverage to be in the low-4x area in 2022 resulting from expected realized synergies from its acquisition of Fifth Sun and EBITDA growth, both of which will not occur. This leverage is also above our current downgrade trigger of 6.5x,” the agency said in a press release.

Additionally, S&P noted that Mad Engine’s free operating cash flow was negative for the first half of 2022 and is forecasted to remain so through the end of the year.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.