Transat A.T. Inc. has closed the restructuring of the indebtedness incurred by Transat under the Large Enterprise Emergency Funding Facility (LEEFF) program managed by Canada Enterprise Emergency Funding Corporation ("CEEFC") as previously communicated on June 5, 2025.

Following the transaction, Transat's outstanding debt with CEEFC is reduced to $334M from $772M as at March 31, 2025.

The agreement is structured as follows:

• Repayment of $41.4M in cash to CEEFC
• Credit facilities reduced to a single credit facility of $175M
• Issuance to CEEFC of a $158,735,045 debenture maturing in 10 years
• Issuance to CEEFC of $16,264,955 of preferred shares convertible into 9,934,617 Class B Voting Shares representing 19.9 percent of the issued and outstanding voting shares of Transat based on the 5-day VWAP on June 5, 2025) at any time after the earlier of the second anniversary of closing and the redemption of preferred shares for proceeds of $16,264,955 pursuant to mandatory prepayment events.