MONTREAL, July 10, 2025 /CNW/ - Transat A.T. Inc. ("Transat" or the "Corporation") announced today that it has closed the restructuring of the indebtedness incurred by Transat under the Large Enterprise Emergency Funding Facility (LEEFF) program managed by Canada Enterprise Emergency Funding Corporation ("CEEFC") as previously communicated on June 5, 2025 (the "Transaction").
Following the Transaction, the Corporation's outstanding debt with CEEFC is reduced to $334M from $772M as at March 31, 2025.
The agreement deals with the entire indebtedness of the Corporation with CEEFC, and results in such indebtedness, in a principal amount of approximately $772M in the aggregate as at March 31, 2025, having been restructured as follows:
- Repayment of $41.4M in cash to CEEFC
- Credit facilities reduced to a single credit facility of $175M
- Issuance to CEEFC of a $158,735,045 debenture maturing in 10 years
- Issuance to CEEFC of $16,264,955 of preferred shares convertible into 9,934,617 Class B Voting Shares representing 19.9% of the issued and outstanding voting shares of Transat based on the 5-day VWAP on June 5, 2025) at any time after the earlier of the second anniversary of closing and the redemption of preferred shares for proceeds of $16,264,955 pursuant to mandatory prepayment events.(1)
Please refer to the Corporation's press release of June 5, 2025 for a more detailed description of the Transaction and its main components.
About Transat
Founded in Montreal in 1987, Transat has achieved worldwide recognition as a provider of leisure travel particularly as an airline under the Air Transat brand. Voted World's Best Leisure Airline by passengers at the 2025 Skytrax World Airline Awards, it flies to international destinations. Air Transat's fleet includes some of the most energy-efficient aircraft in their category. Based in Montreal, Transat has 5,000 employees with a common purpose to bring people closer together. (TSX: TRZ) www.transat.com
About CEEFC
CEEFC is a federal Crown corporation, incorporated in May 2020 under the Canada Business Corporations Act and is a wholly owned subsidiary of Canada Development Investment Corporation. CEEFC currently manages the Large Employer Emergency Financing Facility (LEEFF) program and the Large Enterprise Tariff Loan (LETL) facility.
(1) Note:
Between the holding of share purchase warrants and convertible preferred shares, CEEFC will hold securities exercisable or convertible for an aggregate of 19,371,389 Class B voting shares, representing approximately 32.6% of the outstanding voting shares after giving effect to such exercise or conversion, provided that at no time will the exercise of warrants or conversion of Preferred Shares result in CEEFC beneficially owning or controlling in excess of 19.9% of the voting shares of Transat.
CEEFC intends to hold the Preferred Shares for investment purposes. Depending on market conditions and other factors, including Transat's business and financial condition, CEEFC may dispose of some or all of the securities of Transat that it owns. CEEFC and its affiliates do not intend to acquire additional equity securities of Transat except through the possible exercise of the warrants and conversion of the Preferred Shares.
An early warning report will be filed by CEEFC in accordance with applicable securities laws and will be available on SEDAR+ at www.sedarplus.ca or may be obtained directly from CEEFC upon request from Mr. Bruno Lemay at 416-966-0185.
Media:
Andréan Gagné
Senior Director, Communications, Public Affairs and Corporate Responsibility
[email protected]
514 987-1616, ext. 104071
Media site: www.transat.com/en-CA/corporate/media
Financial analysts:
Juliette Gauthier
Senior Director, Investor Relations and Corporate Finance
[email protected]
514 987-1616, ext. 104019
SOURCE Transat A.T. Inc.
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