Avison Young is close to completing its restructuring efforts, with all financial stakeholders remaining as investors despite a downgrade from S&P Global Ratings. The Toronto-based real estate firm has been working with partners and lenders over the past year to negotiate a deal that would improve its capital structure. CEO Mark Rose stated that the ratings agency’s downgrade was expected and typical in these types of transactions.
The company plans to announce the completed restructuring soon, which will result in Caisse de Depot et Placement du Quebec (CDPQ) remaining an investor and some debt being converted into equity. This move has caused S&P Global Ratings to issue a selective default rating for Avison Young.
According to Rose, this default was “technical in nature” as interest payments were not missed but rather factored into the new transaction. He also anticipates that once S&P reviews their post-transaction debt structure, they will issue an improved rating for Avison Young.
Despite these challenges, Avison Young has continued making strategic acquisitions throughout this process including Chicago-based Madison Marquette’s retail property management services earlier this year and NJ-based Studio Eagle for workplace design expertise last year.
With all financial stakeholders standing by the company during this restructuring period, it is clear that Avison Young remains confident about their future growth potential.
