...June 21, 2021 - U.S.-based designer, producer, and distributor of licensed, branded, and private-label apparel and accessories Mad Engine Global LLC is acquiring Fifth Sun Holdings, a designer and distributor of licensed products in the print-on-demand and direct-to-garment markets. - A combination of equity and debt will finance the transaction, including a new $75 million asset-based lending (ABL) revolving credit facility due in 2026 (not rated) and $250 million senior secured term loan B due in 2027. We estimate pro forma adjusted leverage for the 12 months ended March 31, 2021, of about 5.3x. - We assigned our 'B' issuer credit rating to Mad Engine. - We also assigned our 'B' issue-level rating and '3' recovery rating to the proposed $250 million senior secured first-lien term loan maturing in 2027. The '3' recovery rating reflects our expectation for average (50%-70%; rounded estimate: 50%) recovery in the event of payment default. - The stable outlook reflects our expectation that...
