TransAlta Renewables Inc. announces financing for project portfolio

TransAlta Renewables Inc. has announced the completion of its previously announced bought deal offering of subscription receipts.

The company, through a syndicate of underwriters led by CIBC Capital Markets and TD Securities Inc., as joint bookrunners, issued a total of 17,692,750 subscription receipts at a price of CAD$9.75 for gross proceeds of approximately CAD$172.5 million, including 2,307,750 subscription receipts issued pursuant to the exercise by the underwriters of the over-allotment option in full.

The net proceeds will be used by TransAlta Renewables to finance a portion of its proposed CAD$540 million investment in TransAlta Corporation’s Sarnia Cogeneration Plant, Le Nordais wind farm and Ragged Chute hydro facility.

The Portfolio consists of approximately 611 MW of highly contracted power generation assets located in Ontario and Quebec. TransAlta Renewables’ investment will consist of the acquisition of securities which will track the net distributable profits of the Portfolio. As part of the transaction, TransAlta Renewables will issue CAD$152.5 million in common shares to TransAlta and CAD$215 million in convertible unsecured subordinated debentures.