Transat A.T. Inc. announces $50 million public offering


Transat A.T. Inc. has announced that it has entered into an agreement to sell, to a syndicate of underwriters led by CIBC World Markets Inc., $50 million principal amount of 9.00% Subordinated Convertible Debentures due March 1, 2007 (the “Debentures”). The Corporation has extended to the underwriters the option, exercisable in whole or in part until the closing of the transaction, to purchase up to an additional $25 million principal amount of the Debentures at the same offering price.

Each Debenture will be convertible into common shares at the option of the holder at any time at a conversion price of $8.75. Closing is expected to occur on or about February 19, 2002. The Corporation anticipates using the proceeds of this offering for general corporate purposes and the repayment of debt.The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement of such Act.

This release does not constitute an offer for sale of securities in the U.S.

Transat A.T. Inc. with its head office in Montreal is an integrated corporation specializing in the organization, marketing, and distribution of holiday travel. The core of its business consists of tour operators in Canada and France. Transat is also involved in air transportation, hotel management, and value-added services offered at travel destinations, as well as in distribution through travel agency networks and e-commerce initiatives. Transat, a public corporation listed on the Toronto Stock Exchange (TSE:TRZ), recorded revenues exceeding $2 billion in 2001.