...- On March 12, 2024, Avison Young (Canada) Inc. completed a debt exchange, replacing its C$624 million of senior secured term loan due January 2026, C$37 million of second-lien liquidity facility and C$505 million of existing preferred equity with C$265 million of new secured term loan due 2029 (takeback term loan), C$212 million of new preferred equity, and about 30% of the company's common stock. S&P Global Ratings viewed this as a distressed exchange. - As part of the debt restructuring, the company took out a new US$55 million (C$73 million) first-out secured term loan and replaced its revolver with an upsized new facility. - While the transaction lowers the company's debt servicing costs and the immediate liquidity risk, we believe Avison Young's capital structure remains unsustainable given its weak operating performance and negative cash flow over the past year, high leverage ratio, and considerable payment-in-kind (PIK) debt burden. - We raised our issuer credit rating on the company...
