Transat Gets Breathing Room with Extension of Government Financing
by Bruce Parkinson
Transat is cancelling flights after receiving a strike notification from its pilots.
Transat A.T. Inc. has announced it has negotiated an extension of the maturity of its $312 million unsecured financing obtained through the federal government-backed Large Employer Emergency Financing Facility (“LEEFF”).
Initially set for April 29, 2026, the maturity of the LEEFF unsecured credit facility has been extended to April 29, 2027. Concurrently, the maturity of the $50 million revolving credit facility agreement and the $41 million LEEFF secured credit facility agreement are extended from February 1, 2026, to November 1, 2026.
Transat first secured funds through the LEEFF program in April 2021. LEEFF was created by the Government of Canada to provide short-term liquidity assistance in the form of interest-bearing term loans to large Canadian employers been affected by the COVID-19 outbreak.
The intent of LEEFF was to provide bridge financing to large Canadian employers to help these enterprises to preserve their employment, operations and investment activities until they can access more traditional market financing. It was intended to help impacted companies cover immediate cash flow needs.
