Transat seeks C$500 million in financing as acquisition called off

Chicago, April 5 – Transat AT Inc. announced the company will be seeking new financing totaling at least C$500 million in 2021, according to a press release.

The announcement is part of a larger announcement that the potential acquisition of Transat by Air Canada has been terminated after receiving word that the European Commission would not approve the transaction.

The company had put in place a C$250 million short-term facility, which matures June 30, while awaiting a decision from the European Commission. That facility will either need to be replaced or extended before the maturity date.

Transat is actively pursuing negotiations to secure long-term financing, including under the Large Employer Emergency Financing Facility and via prospective support from the Canadian government for businesses in the travel and tourism sector.

The company is confident that a satisfactory financing will be secured in coming weeks.

Transat will receive a C$12.5 million termination fee from Air Canada and Air Canada has additionally waived its right to a C$10 million termination fee if a third party will acquire Transat in the upcoming 12 months.

Transat is a Montreal-based integrated company specializing in the organization, marketing and distribution of holiday travel.

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