Tuesday, May 21, 2024

Transat gets a certain amount of financial flexibility between now and the transaction

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Maria Gill
Maria Gill
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(Montreal) Transat AT announced Thursday that it has obtained some financial flexibility pending a decision from the European Commission on the Air Canada acquisition.

The Canadian Press

The tour operator reported a three-month extension of its $ 250 million short-term sub-loan facility.

Transat indicated that this facility was implemented on October 10, with Export Development Canada and the Canadian National Bank acting as the lead regulator.

In a press release, Transat said that the loan facility will now expire, the first possibility that appears “between June 30, 2021 and the closing of the agreement with Air Canada.”

Transat said this extension gave it additional leeway to secure the required financing before these credit facilities expire, while the European Commission’s decision on the acquisition by Air Canada is pending here at the end of June.

Uncertainty remains pending about Air Canada’s proposed $ 190 million acquisition, which got the green light from the federal government.

Since the country’s largest airline refused to extend the February 15 deadline to complete the deal, both parties can now finish the deal at any time.

The companies in this story: (TSX: AC; TSX: TRZ)

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