February 19 - Transat A.T. Inc. announced that it has extended the termination date of its $250 million short-term loan facility by three months. The facility had been arranged on October 10, 2020, with Export Development Canada and National Bank of Canada as lead arranger.

 

The loan facility will now terminate at the earliest date between June 30, 2021, and the closing of the arrangement with Air Canada (the “Arrangement”). It may still be drawn in tranches at any time before a date now set at May 31, 2021, subject to meeting the relevant prior conditions and applicable borrowing conditions. Those conditions have not been amended, and include certain requirements regarding freely available cash before and after drawing on the facility.

 

This extension provides the Corporation with additional room to manoeuvre in securing the financing that would be required before expiry of the credit facility, with the decision from the European Commission regarding the acquisition by Air Canada now expected during the first six months of 2021.

 

 

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