Air Transat (TS, Montreal Trudeau) parent company Transat AT announced that it has extended the termination date of its C $ 250 million (US $ 198 million) short-term loan facility by three months, giving it some financial flexibility in the meantime. the regulatory decision of the European Commission on its proposed takeover by Air Canada (THAT, Montreal Trudeau).

As previously reported, the tour operator group announced on October 10 last year that it had been able to implement the loan facility with the export credit agency Export Development Canada and the Bank. National Bank of Canada – the country’s sixth largest commercial bank – as lead arranger.

The installation will end either on June 30 or at the close of the agreement with Air Canada, whichever is earlier, Transat AT explained in a press release on February 18.

“It can still be drawn in installments at any time before a date now set at May 31, 2021, subject to compliance with the related preconditions and the applicable borrowing conditions. These conditions have not been changed and include certain requirements regarding freely available liquidity before and after the drawdown on the facility, ”the statement said.

“This extension gives the company additional leeway to secure the financing that would be required before the credit facility expires, with the European Commission decision on the acquisition by Air Canada now expected in the first six. month of 2021, ”he concluded.

The statement came two days after Transat AT revealed that the European regulator did not approve the deal before the February 15 deadline and requested additional information from parties involved in the proposed acquisition of 188.7 million CAD (149.6 million USD).