Transat A.T. Inc. Announces Redemption of Series 4 Preferred Shares and Partial Repayment of LEEFF Debt

MONTREAL, Aug. 14, 2025 /CNW/ - Transat A.T. Inc. ("Transat" or the "Corporation") announced today that it has committed an amount of $30,000,000 in proceeds received from the engine sale and lease back transaction announced on August 7, 2025 to the repayment of indebtedness incurred by Transat under the Large Employer Emergency Funding Facility ("LEEFF") program managed by Canada Enterprise Emergency Funding Corporation ("CEEFC"), a wholly owned subsidiary of Canada Development Investment Corporation ("CDEV"), and restructured on July 10, 2025 further to the terms of an agreement announced on June 5, 2025. As mentioned in our press release of June 5, the $30,000,000 will be made available by CEEFC to Transat in the form of working capital advances.

Pursuant to the terms governing the LEEFF indebtedness, CEEFC has exercised its right to require Transat to apply $16,264,955 to redeem 6,243,026 Series 4 Preferred Shares held by CEEFC (the "Preferred Shares") at a redemption price of $2.6053 per Series 4 Preferred Share and $13,735,045 to repay a portion of the principal amount of the $158,735,045 debenture held by CEEFC (the "Debenture"). Following such redemption of Preferred Shares and partial repayment of the Debenture, an aggregate of 3,691,591 Preferred Shares and $145,000,000 principal amount of Debenture remain outstanding and held by CEEFC. The $175,000,000 credit facility of the Corporation with CEEFC remains unaffected by the foregoing transactions.

More on the Preferred Shares

The Preferred Shares are convertible at any time into Class B voting shares of Transat on a one-for-one basis. Prior to the redemption, CEEFC held Preferred Shares and share purchase warrants ("Warrants") of Transat convertible or exercisable 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. The Preferred Shares being redeemed represent 10.5% of the outstanding voting shares of Transat, assuming conversion of all outstanding Preferred Shares and exercise of all Warrants held by CEEFC. Following the redemption, CEEFC holds 3,691,591 Preferred Shares as well as Warrants exercisable for up to 9,436,772 Class B voting shares, representing approximately 24.7% 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 and Warrants 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.

About Transat A.T. Inc.
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 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. CEEFC's address is 161 Bay Street, Suite 4540, Toronto, Ontario M5J 2S1.

For more information

Media
Andréan Gagné 
Senior Director, Communications, Public Affairs and Corporate Responsibility
[email protected] 
514 987-1616, ext. 104071

Media site and image bank: www.transat.com/fr-CA/corporatif/medias

Financial analysts
Juliette Gauthier
Senior Director, Investor Relations and Corporate Finance
[email protected] 
514 987-1616, ext. 104019

SOURCE Transat A.T. Inc.