MONTREAL, Feb. 28 /CNW Telbec/ - (TSX: TRZ.B TRZ.A) - In accordance with
the agreement entered into with its principal credit card processor
whereby Transat can transfer up to 20% of its annual Canadian credit
card transactions to another credit card processor, Transat has signed
a new agreement with a second credit card processor effective
immediately and valid until February 28, 2015.
The Canadian credit card proceeds treated under this new Agreement will
not be subject to the block account requirement that is provided in the
Agreement governing its relationship with its principal credit card
Under the terms of this new Agreement, Transat is required to maintain a
minimum unrestricted cash and cash equivalents position at the end of
each quarter as well as an obligation to maintain financial leverage
ratio comparable to its bank agreement. A failure by Transat to comply
with these covenants could result in a variety of adverse consequences,
including an obligation by Transat to provide this new credit card
processor with a letter of credit according to a predetermined formula
based on the quarterly dollar volume of credit card transactions done
by this new credit card processor.
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, destination services, accommodation and distribution.
(TSX: TRZ.B TRZ.A)
SOURCE TRANSAT A.T. INC.
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