MONTREAL, June 23 /CNW Telbec/ - Transat A.T. Inc. has entered into an
agreement with National Bank of Canada ("NBC") regarding the remaining
$143.5 million of its funds blocked in asset-backed commercial paper (ABCP)
holdings. Based on the agreement, NBC will provide Transat 3-year credit
facilities for up to $107.6 million, or 75% of the nominal amount of Transat's
ABCP holdings, through a mix of limited recourse and full recourse credit
facilities, renewable annually at the discretion of NBC thereafter up to 4
An aggregate amount of $68.4 million of the credit facilities are limited
recourse to the ABCP, with the balance of the credit facilities, namely
$39.2 million, being full recourse against Transat.
The agreement is subject to usual conditions and to the definitive and
final approval of the restructuring plan of the ABCP market before the Courts
and its effectiveness and to the execution of a complete, final and
unconditional release in favour of NBC against any claim related to the ABCP.
Transat has agreed to support the restructuring plan of the ABCP market and to
discontinue its appeal of the judgement approving the restructuring plan.
This agreement is in addition to the credit facilities put in place in
November 2007 with NBC, which include a 5-year, $150 million unsecured
revolving credit facility and a 5-year $60 million secured revolving letter of
As of April 30, 2008, Transat had cash and cash equivalents of
$289.7 million, as well as $196.4 million in trust or otherwise reserved,
excluding the funds blocked in ABCP holdings of $143.5 million. To date,
Transat has written down 30.2% of its remaining ABCP holdings.
"This agreement further enhances our financial flexibility", said
François Laurin, Vice-President, Finance and Administration and Chief
Financial Officer. Transat holds or has access to sufficient available cash to
meet all of its financial, operational and regulatory obligations.
Transat A.T. Inc. is an integrated international tour operator with more
than 60 destination countries and that distributes products in over 50
countries. A holiday travel specialist, Transat operates mainly in Canada and
Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin.
Montreal-based Transat is also active in air transportation, accommodation,
destination services and distribution. (TSX: TRZ.B, TRZ.A)
Caution regarding forward-looking statements
This news release may contain forward-looking statements regarding,
without limitations, the Corporation's financial, operational and regulatory
obligations, and the risks related to the repayment of asset-backed commercial
paper held by the company. Factors that could lead actual results to differ
materially from those contemplated by the forward-looking statements also
include general economic conditions, competition, extreme weather conditions,
disease outbreaks, war, terrorism, and other risks detailed from time to time
in the Corporation's continuous disclosure documents.
These forward-looking statements, by their nature, necessarily involve
risks and uncertainties, many of which are beyond the Corporation's control,
that could cause actual results to differ materially from those contemplated
by these forward-looking statements. The Corporation considers the assumptions
on which these forward-looking statements are based to be reasonable, but
cautions the reader that these assumptions regarding future events, many of
which are beyond its control, may ultimately prove to be incorrect since they
are subject to risks and uncertainties that may affect the Corporation. For
additional information with respect to these and other factors, see the Annual
Information Form and Annual Report for the year ended October 31, 2006, filed
with Canadian securities commissions. The Corporation disclaims any intention
or obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, other than
as required by law.
For further information:
For further information: Media: Jean-Michel Laberge, (514) 987-1660,
ext. 4662; Financial analysts: François Laurin, Vice-President, Finance and
Administration and Chief Financial Officer, (514) 987-1660; Source: Transat
A.T. Inc., www.transat.com