Avison Young (Canada) Inc.'s Proposed US$325 Million Senior Secured Term Loan Due 2026 Rated 'B' (Recovery Rating: '2')

NEW YORK (S&P Global Ratings) Feb. 11, 2019--S&P Global Ratings today said it assigned its 'B' issue rating and '2' recovery rating to Avison Young (Canada) Inc.'s proposed US$325 million senior secured term loan due 2026. The '2' recovery rating indicates our expectation for a substantial recovery (70%-90%; rounded estimate: 70%) in the event of a payment default. In addition to the term loan, the company entered into a US$60 million revolving credit facility and raised US$65 million common equity investment from Caisse de depot et placement du Quebec (a Canada-based institutional investor that made a US$190 million preferred equity investment in July 2018). The company will use these proceeds, along with roughly US$45 million of existing balance-sheet cash, to

...NEW YORK (S&P Global Ratings) Feb. 11, 2019--S&P Global Ratings today said it assigned its 'B' issue rating and '2' recovery rating to Avison Young (Canada) Inc.'s proposed US$325 million senior secured term loan due 2026. The '2' recovery rating indicates our expectation for a substantial recovery (70%-90%; rounded estimate: 70%) in the event of a payment default. In addition to the term loan, the company entered into a US$60 million revolving credit facility and raised US$65 million common equity investment from Caisse de depot et placement du Quebec (a Canada-based institutional investor that made a US$190 million preferred equity investment in July 2018). The company will use these proceeds, along with roughly US$45 million of existing balance-sheet cash, to finance the acquisition of GVA Grimley Holdings Limited (announced on Nov. 8) and repay its existing US$130 million senior secured notes due 2021. Pro forma this transaction, leverage (net debt, inclusive of preferred stock, to...

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