TransAlta Renewables Announces Pricing of $159 Million Project Financing of a Quebec Wind Asset

May 27, 2016

CALGARY, Alberta (May 27, 2016) – TransAlta Renewables Inc. (TransAlta Renewables) (TSX: RNW) today announced that its indirect wholly-owned subsidiary, New Richmond Wind L.P. (the “Issuer”), priced a bond offering of approximately $159 million which will be secured by a first ranking charge over all assets of the Issuer. The bonds are amortizing and bear interest from their date of issue at a rate of 3.963%, payable semi-annually and mature on June 30, 2032.

Net proceeds of the financing will be used to, among other things, make advances to Canadian Hydro Developers, Inc. on a subordinated basis pursuant to an intercompany loan agreement, the proceeds of which will be used to finance certain facilities of the Issuer’s affiliates and for other general business purposes.

Closing of the financing is expected to occur on June 3, 2016.

The assets consist of the 67.8 MW New Richmond wind facility located in the Gaspé Peninsula near the town of New Richmond, QB and began commercial operations in March 2013. The wind project is 100% contracted to Hydro-Québec for a term of 20 years from commercial operations and utilizes proven Enercon turbine technology.

The securities mentioned herein have not been and will not be registered under the United States Securities Act of 1933, as amended, any state securities laws or the laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The securities mentioned herein have not been and will not be qualified for distribution to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the securities in Canada will be made on a basis which is exempt from the prospectus and dealer registration requirements of such securities laws. The securities will be offered and sold in Canada on a private placement basis only to “accredited investors”. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About TransAlta Renewables Inc.

TransAlta Renewables is among the largest of any publicly traded renewable independent power producers (“IPP”) in Canada. Our asset platform and economic interests are diversified in terms of geography, generation and counterparties and consists of interests in 18 wind facilities, 13 hydroelectric facilities, eight natural gas generation facilities (including one currently under construction) and one natural gas pipeline, representing an ownership interest of 2,441 MW of net generating capacity, located in the provinces of British Columbia, Alberta, Ontario, Québec, New Brunswick, the State of Wyoming and the State of Western Australia. Our objectives are to (i) create stable, consistent returns for investors through the ownership of, and investment in, highly contracted renewable and natural gas power generation and other infrastructure assets that provide stable cash flow primarily through long-term contracts with strong counterparties; (ii) pursue and capitalize on strategic growth opportunities in the renewable and natural gas power generation and other infrastructure sectors; (iii) maintain diversity in terms of geography, generation and counterparties; and (iv) payout 80 to 85 per cent of cash available for distribution to the shareholders of the Company on an annual basis.

Cautionary Statement Regarding Forward Looking Information

This news release contains forward looking statements, including statements regarding the financing and the anticipated use of proceeds from the financing. These statements are based on TransAlta Renewables’ belief (including those of its subsidiaries) and assumptions based on information available at the time the assumption was made. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include changes in the market place in which these assets operate, legislative or regulatory developments, competition, global capital markets activity and failure to complete the financing, changes in prevailing interest rates, currency exchange rates, inflation levels, commodity prices and general economic conditions in the geographic areas where we operate. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta Renewables’ expectations only as of the date of this news release. TransAlta Renewables disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Note: All financial figures are in Canadian dollars

For more information:

Investor Inquiries:

Jaeson Jaman
Manager, Investor Relations
Phone: 1 800-387-3598 in Canada and U.S.

Media Inquiries:

Stacey Hatcher
Manager, Communications
Toll-free media number: 1-855-255-9184

LAST: CAD$14.280 (+1.301%)
2016-12-28 16:00:00

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