Avison Young announces recapitalization transaction and new capital investment, significantly strengthening the company’s financial position

Company Substantially Enhances Capital Structure through Elimination of Majority of Existing Debt and New Money Investment

TORONTO, CA – Avison Young (the “Company”), a leading global commercial real estate services company, today announced that it has agreed to a comprehensive deleveraging transaction (the “Transaction”) with its current financial partners that positions Avison Young for the future. Through the Transaction, Avison Young has reduced its financial obligations by more than half and has secured additional capital to advance its strategic goals.

“This transaction is an incredibly exciting step forward and positions Avison Young with the financial flexibility to invest in growth and continue to deliver for our clients,” said Mark E. Rose, Chief Executive Officer, Avison Young. “We are proud of the proactive, strategic work we have done to create a more sustainable capital structure and are confident that our Principal-led culture, alongside a stronger balance sheet, will provide us with a distinct advantage as the industry recovers. Our financial partners have been very supportive throughout this process, and we look forward to working with them to create impact and value in the years ahead.”

Avison Young enters into this consensual Transaction with a group representing substantially all of the Company’s existing lenders and capital partners. Through the Transaction, Avison Young has stabilized its financial foundation and secured additional resources to invest in the people and solutions that will improve the Company’s ability to serve its clients and partners well into the future. The Transaction preserves Avison Young’s culture as a Principal-led and owned firm, with Principals and management retaining a significant majority ownership stake in the Company.

As part of the Transaction process, Avison Young entered into an agreement with its lenders through which the Company was not required to make certain payments on its term loan. The Company has made all required payments during this process.

The Transaction is expected to close in March. Following the close of this milestone Transaction, the Company expects its ratings agencies to review its post-Transaction debt structure and issue new ratings reflective of the Company’s stronger financial position.

Advisors
Centerview Partners LLC, Kobre Capital LLC, and Long Castle Advisors, Corp. served as financial advisors, Stikeman Elliott LLP (Canada), McDermott Will & Emery LLP (US), and DLA Piper LLP (US and UK) served as legal advisors, and C Street Advisory Group served as communications advisor to Avison Young.