Latest news with #LargeEmployerEmergencyFinancingFacility
Cision Canada
10-07-2025
- Business
- Cision Canada
Transat A.T. Inc. and CEEFC Announce Closing of the Restructuring of the LEEFF Debt Français
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) 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 or may be obtained directly from CEEFC upon request from Mr. Bruno Lemay at 416-966-0185. Financial analysts: Juliette Gauthier Senior Director, Investor Relations and Corporate Finance [email protected] 514 987-1616, ext. 104019 SOURCE Transat A.T. Inc.
Cision Canada
27-06-2025
- Business
- Cision Canada
The proposed debt restructuring of Transat A.T. inc. through CEEFC is contrary to the interests of the Corporation's shareholders and must be put to them for approval Français
On behalf of Financière Outremont inc., Pierre Karl Péladeau is asking the Québec Superior Court to intervene, in the absence of formal shareholder approval, and prevent the transfer of control of the Corporation to the federal government. MONTRÉAL, June 27, 2025 /CNW/ - While Transat A.T. inc. announced on June 5, 2025 that it had reached an agreement in principle with the Canada Enterprise Emergency Funding Corporation (CEEFC), a federal government agency, for the restructuring of the debt incurred by Transat A.T. inc. (the Corporation) under the Large Employer Emergency Financing Facility (LEEFF) program managed by CEEFC in the context of the COVID-19 pandemic, no official announcement has been sent to the Corporation's shareholders to inform them of the agreement. This constitutes a violation of their rights and the Corporation's obligations. As one of Transat A.T. inc.'s largest shareholders, Pierre Karl Péladeau believes that this agreement should not only be presented to shareholders, as it is of decisive importance to the Corporation's financial viability and future, but most importantly approved by a shareholder vote in accordance with basic principles of corporate governance and shareholders' ownership rights. For this reason, Pierre Karl Péladeau, on behalf of Financière Outremont inc. is compelled to ask the Superior Court to intervene before it is too late and order the Corporation not to finalize and not to close the agreement in principle before it has been approved by a shareholder vote. It is unjust and unwarranted for the Corporation to dilute its shareholders' equity without shareholder approval through a restructuring operation that ultimately does not ensure the Corporation's long-term viability, when other options are not only available but have been presented to the Corporation's Board of Directors, in accordance with the process initiated several months ago. To justify its decision to disregard its regulatory obligation to submit to its shareholders a financial transaction that is so dramatically detrimental to them, the Board of Directors of Transat A.T. Inc. states that " the transaction improves the financial position of the Corporation, which was becoming extremely precarious due to the size of its debt and maturity" and that it is "the result of discussions initiated by the Corporation over 18 months ago with CEEFC" (Corporation press release, June 5, 2025). No publicly disclosed market information suggests that the Corporation is currently insolvent or in serious financial difficulty, or that its continued operation is in doubt. The Corporation's last release was on June 12 and considerations of such import were not disclosed to the markets or shareholders in any way. Transat A. T. inc. therefore appears to be structuring the transaction in such a way as to take undue advantage of a regulatory exemption to the detriment of its shareholders' rights, when no emergency has been disclosed to the public or to shareholders that would justify flouting their rights in this way, and when it would have been easy to respect those rights by holding a proper vote. The result of the unilateral restructuring of the Corporation's debt will be to transfer control of the Corporation to the federal government, which is the Corporation's principal creditor, as well as its largest potential shareholder and the regulator of its operations. This is not in the best interests of the citizens and taxpayers of Canada and Québec. Based on the limited information available about the agreements between the Corporation and the government, the government would be able to lay its hands on any cash available or raised as it sees fit. These terms and conditions therefore grant the government de facto control of the Corporation and are not in the interests of the other shareholders.
