This release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or for dissemination in the United States
Montreal, September 10, 2009
Transat A.T. Inc. (“Transat” or the “Corporation”) (TSX: TRZ.A, TRZ.B) announced today that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. for the sale on a bought-deal basis of an aggregate of 4,250,000 Class A variable voting shares and/or Class B voting shares (the “Shares”) from the treasury of the Corporation at a price of $13.00 per Share, for aggregate gross proceeds to the Corporation of $55.25 million. In addition, Transat has agreed to grant an over-allotment option to the underwriters, entitling them to purchase, for a period of 30 days from the closing of the offering, up to 637,500 additional Shares at the offering price of $13.00 per Share, to cover over-allotments and for market stabilization purposes, if any. If the over-allotment option is exercised in full, the total gross proceeds to the Corporation will be $63.54 million.
The Shares will be offered for sale to the public in each of the provinces of Canada pursuant to a short form prospectus to be filed with Canadian securities regulatory authorities in all Canadian provinces.
The net proceeds of the offering will be used by Transat for general corporate purposes, including working capital, capital expenditures and possible future acquisitions.
The prospectus offering is scheduled to close on or about September 30, 2009, subject to certain conditions, including Toronto Stock Exchange and other customary regulatory approvals, as well as other conditions set forth in the underwriting agreement.
The Shares being offered have not been and will not be registered under the United States Securities Act of 1933 and state securities laws. Accordingly, the Shares may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
This press release includes “forward-looking statements” that involve risks and uncertainties. All statements other than statements of historical facts included in this press release, including statements regarding the prospects of the industry and prospects, plans, financial position and business strategy of the Corporation, may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements.
For more information on the risks, uncertainties and assumptions that would cause the Corporation’s actual results to differ from current expectations, please also refer to the Corporation’s public filings available at www.sedar.com and www.transat.com. In particular, further details and descriptions of these and other factors are disclosed in the Annual MD&A under the “Risks and uncertainties” section and in the “Risk factors” section of the Corporation’s current Annual Information Form.
The forward-looking statements in this news release reflect the Corporation’s expectations as at September 10, 2009, and are subject to change after this date. The Corporation expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws.
Transat is an integrated international tour operator with more than 60 destination countries and that distributes products in over 50 countries. A holiday travel specialist, Transat operates mainly in Canada and Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin. Montreal-based Transat is also active in air transportation, destination services, accommodation and distribution.