Transat A.T. Inc. Restructures LEEFF Debt to Strengthen Financial Position

Transat AT V & VV ( (TSE:TRZ) ) has issued an update.

Transat A.T. Inc. has reached an agreement with the Canada Enterprise Emergency Funding Corporation (CEEFC) to restructure its debt incurred under the Large Enterprise Emergency Funding Facility (LEEFF) program during the COVID-19 pandemic. This agreement will reduce Transat’s outstanding debt from $772 million to $334 million by March 31, 2025, significantly deleveraging its balance sheet. The restructuring includes a cash repayment, issuance of preferred shares, and a new credit facility, providing Transat with the flexibility to implement its long-term strategic plan and maintain its competitive position in the market.

The most recent analyst rating on (TSE:TRZ) stock is a Sell with a C$2.25 price target. To see the full list of analyst forecasts on Transat AT V & VV stock, see the TSE:TRZ Stock Forecast page.

Spark’s Take on TSE:TRZ Stock

According to Spark, TipRanks’ AI Analyst, TSE:TRZ is a Neutral.

Transat AT V & VV’s overall stock score reflects significant financial challenges, including negative profitability and high leverage, as the most impactful factors. While technical indicators and corporate events show some positive aspects, the company’s valuation remains unattractive due to continued losses. Earnings call insights provide a mixed outlook with both operational improvements and ongoing challenges.

To see Spark’s full report on TSE:TRZ stock, click here.

More about Transat AT V & VV

Transat A.T. Inc. operates in the travel and tourism industry, primarily offering air transportation and vacation packages. The company focuses on providing leisure travel services, with a market presence that includes airline operations under the Air Transat brand.

Average Trading Volume: 35,740

Technical Sentiment Signal: Sell

Current Market Cap: C$65.79M

For an in-depth examination of TRZ stock, go to TipRanks’ Stock Analysis page.