What We Are Seeing: COVID-19 Market Insights from Stikeman Elliott

What we are seeing

From the early stages of the pandemic, our firm members have provided insight into the direction Canadian business law is taking as the country adjusts to a new reality of business restrictions and social distancing. We will continue to share our experiences as the situation evolves.

Capital Markets & Securities

Capital Markets and Securities

Canada’s Bond Market Holds Steady As Issuers Consider Strategies for Accessing Equity Financing (April 6, 2020)
"Unprecedented equity market volatility has generally limited the opportunities for issuers to raise equity in recent weeks, although there are some signs of life. On the brighter side, the debt capital markets have begun to open up."

Contact any member of our Capital Markets & Securities Group.

Financing and Insolvency

Financing and Insolvency

In This Together: Canada’s Debtors and Lenders Take a Calm and Cautious Approach (April 1, 2020)
"The speed with which the situation is evolving, across Canada and internationally, has companies scrambling to assess their situations. Many are working to take advantage of potential sources of additional financial support – from government, existing lenders and/or other stakeholders – before proceeding with formal restructuring steps."

Contact any member of our Restructuring & Insolvency Group.

COVID-19: Market Developments in Banking and Finance (March 30, 2020)
"A variety of measures appear to be under consideration or in the process of implementation, including (among others) measures to provide needed liquidity and adjustments to specific covenants to ensure borrowers maintain access to credit facilities without triggering defaults requiring further waivers or consents."

Contact any member of our Banking & Finance Group

Legal Operations

Legal Operations

COVID-19: A Roadmap for Navigating Return-to-Workplace Decisions (May 20, 2020)
"Precision and accuracy are impossible against the current background of uncertainty and change. The most helpful guidance from legal advisors will therefore centre on helping business leaders navigate their decision-making and risk oversight process in a practical manner tailored to their business, emphasizing prudent and balanced judgment over definitive answers."

Exercising Business Judgment Through COVID-19 (May 20, 2020)
"Given the unique issues boards are facing as their businesses begin to resume operations and/or transition into post-COVID operations, reliance on the Business Judgment Rule and good process/governance will likely prove to be an important tool for directors and officers. A board’s decision does not need to be perfect, but rather should be based on informed deliberation."

Mergers and Acquisitions

COVID-19: Early Trends and Observations in Private Equity (April 2, 2020)
"Meeting payroll, continuity of supply chains, meeting debt covenants and keeping management engaged in a difficult circumstance are front and centre and have in the near term superseded new deal flow as a priority."

Current Considerations in Public M&A (March 31, 2020)
"The significant decrease in the price of equities and the commercial and financial pressures on potential targets, combined with the significant resources of private equity and of well capitalized strategic purchasers (including historically cheap borrowing rates), provide crucial ingredients for significant M&A activity."

Contact any member of our Mergers & Acquisitions Group.

Real Estate

Real Estate

Impact of COVID-19 on Canadian Commercial Mortgage Lending (April 3, 2020)
"The single biggest issue that all mortgage lenders face today is getting a handle on property valuations. The widespread interruption of property-level cash flows, the uncertain prospects of a quick economic recovery and the likelihood of an uneven recovery across various market sectors and asset classes have made property valuation a very difficult problem."

Contact any member of our Real Estate Group.

Industry Insights

Industry Insights

Cannabis Industry Headwinds Made Worse by COVID-19 (April 3, 2020)
"The outbreak of the pandemic and the related economic fall-out has resulted in further challenges for publicly listed cannabis companies and extreme volatility continues to be the norm."

Contact any member of our Capital Markets & Securities Group or Life Sciences & Healthcare Group.

COVID-19: Mining Industry Focuses on Stabilization (April 2, 2020)
"As operations close, pressure is of course increasing on balance sheets and cash flow. Where will the money come from? Existing shareholders are stepping up to shore up their investments."

Contact any member of our Mining Group.