Proceeds to be used to pay down indebtedness
MONTREAL, July 10, 2023 /CNW/ - Transat A.T. Inc. ("Transat" or the "Corporation") entered into a sale and purchase agreement for its land property located in Puerto Morelos, Mexico, for US$38 million to Finest Resorts, a luxury resort group, part of The Excellence Collection. Finest Resorts owns and operates Finest Playa Mujeres, in Cancun, Mexico, and Finest Punta Cana, in Dominican Republic.
The closing of the transaction is expected to occur in Transat's fourth quarter.
The proceeds of the sale will be used to immediately repay a portion of the Corporation's secured facilities.
The divestiture of the land is aligned with Transat's strategic plan to refocus on its airline activities. It should be recalled that the Corporation had announced in 2018 the purchase of the land as part of the development of a hotel subsidiary, for which the activities were discontinued in 2021.
Founded in Montreal 35 years ago, Transat has achieved worldwide recognition as a provider of holiday travel particularly as an airline under the Air Transat brand. Voted World's Best Leisure Airline by passengers at the 2023 Skytrax World Airline Awards, it flies to international, U.S. and Canadian destinations. By renewing its fleet with the most energy-efficient aircraft in their category, it is committed to a healthier environment, knowing that this is essential to its operations and the destinations it serves. Transat has been Travelife-certified since 2018. (TSX: TRZ) www.transat.com
Media: Andréan Gagné
Senior Director, Public Affairs and Communications
514-987-1616, ext. 104071
Financial analysts: Patrick Bui
Chief Financial Officer
514 987-1616 ext. 4567
Media Site: transat.com/en-CA/corporate/media
SOURCE Transat A.T. Inc.