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Avison Young launches second creditor recapitalization since 2024
The brokerage says the plan cuts its debt and preferred equity by nearly 70% and reduces leverage to less than three times EBITDA.
Avison Young, a Toronto-based brokerage and commercial real estate services firm, said it is rolling out another creditor recapitalization plan, building on a 2024 restructuring effort that stabilized the business and reshuffled its debt stack. The company is positioning the move for a next phase of growth, while saying the value of common shares for its principals is preserved.
According to the firm, the deal takes its debt to less than three times earnings before interest, taxes, depreciation and amortization, and cuts debt and preferred equity by nearly 70% to historic lows for Avison Young. The recapitalization also includes new equity ownership positions for key financial partners and provides a common equity ownership position for those partners.
Avison Young said the plan includes a capital infusion and a new credit facility earmarked for M&A. In a statement, CEO Mark Rose said the strengthened balance sheet and enhanced liquidity give the company the financial muscle to accelerate its growth strategy while maintaining client services.
The company’s latest move follows a credit crunch in 2024, when it defaulted on a $325M senior term loan after missing principal and interest payments across two quarters. S&P Global downgraded the company’s debt on Feb. 22, 2024, after which Avison Young announced a creditor deal aimed at reducing its corporate debt load by as much as half.