Transat A.T. Inc. announces the filing of a preliminary prospectus in connection with a $50 million public offering of debentures


Transat A.T. Inc. announces that it has filed a preliminary short form prospectus in all the provinces of Canada, and obtained a receipt therefor, and that it has entered into an agreement to sell, to a syndicate of underwriters led by CIBC World Markets Inc., $50,000,000 aggregate principal amount of 9% Subordinated Unsecured Convertible Debentures due March 1, 2007.

Each Debenture will be convertible into Common Shares at the option of the holder at any time prior to maturity at a conversion price of $8.75 per share. Transat A.T. Inc. has granted to the underwriters the option, exercisable in whole or in part 48 hours prior to the closing of the transaction, to purchase up to an additional $25,000,000 principal amount of the Debentures at the same offering price. On and after March 1, 2005, the Debentures will be redeemable by Transat A.T. Inc., subject to the fulfilment of certain conditions.

The net proceeds to Transat A.T. Inc. will be used for general corporate purposes and to the reduction of the debt.Subject to the necessary regulatory approvals, closing is expected to occur on or about February 19, 2002. 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 the Debentures.

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