CALGARY, Alberta (June 13, 2018) – TransAlta Renewables Inc. (“TransAlta Renewables” or the “Company”) (TSX: RNW) today announced that it has entered into an agreement with a syndicate of underwriters co-led by CIBC Capital Markets, RBC Capital Markets and Scotiabank, as joint bookrunners, for an offering, on a bought deal basis, of 11,860,000 common shares (“Common Shares”) in the capital of TransAlta Renewables at a price of $12.65 (the “Offering Price”) per share which will result in gross proceeds to TransAlta Renewables of approximately $150 million (the “Offering”).
TransAlta Renewables has also granted the underwriters an over-allotment option (the “Over-Allotment Option”) to purchase up to an additional 1,779,000 Common Shares at the Offering Price which, if exercised in full will result in additional gross proceeds to TransAlta Renewables of approximately $22.5 million. The Over-Allotment Option is exercisable, in whole or in part, by the underwriters at any time within 30 days following closing of the Offering. TransAlta Corporation currently holds approximately 161 million Common Shares and does not intend to purchase any additional Common Shares under the Offering.
The net proceeds of the Offering will be used to partially repay drawn amounts under the Company’s credit facility, which were drawn in order to fund recent acquisitions. The additional liquidity under the credit facility will be used for general corporate purposes, including ongoing construction costs associated with such acquisitions.
The Common Shares will be offered in all provinces of Canada pursuant to a prospectus supplement to the Company’s short form base shelf prospectus dated July 12, 2017. Completion of the Offering is subject to, and conditional upon, the approval of the Toronto Stock Exchange and all other required regulatory approvals. The Offering is expected to close on June 22, 2018. This news release does not constitute an offer to sell or a solicitation of an offer to buy the Common Shares in any jurisdiction.
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 consist of interests in 20 wind facilities, 13 hydroelectric facilities, seven natural gas generation facilities, one solar facility and one natural gas pipeline, representing an ownership interest of 2,407 megawatts of owned generating capacity, located in the provinces of British Columbia, Alberta, Ontario, Québec, New Brunswick, the State of Wyoming, the State of Massachusetts, the State of Minnesota and the State of Western Australia. Our objectives are to (i) provide 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) pay out 80 to 85 per cent of cash available for distribution to the shareholders of the Company on an annual basis.
This news release contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking information”) within the meaning of applicable Canadian securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Forward-looking information can often be identified by the use of words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”, “estimates”, “forecasts”, “strategy”, “target”, “intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these or similar words) and statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” “occur” or “be achieved” or “will be taken” (and variations of these or similar expressions). All of the forward-looking information in this news release is qualified by this cautionary note. Forward-looking information includes, but is not limited to, statements related to the Offering, the anticipated closing date of the Offering, receipt of all necessary regulatory approvals including the approval of the TSX, the Company’s intention to complete the proposed Offering, the exercise of the Over-Allotment Option, expectations as to the use of proceeds from the Offering, the planned use of the increased borrowing capacity under the credit facility and TransAlta Corporation’s continued ownership of Common Shares. These forward-looking statements are not historical facts but reflect TransAlta Renewables current expectations concerning future plans, actions and results. These statements are subject to a number of risks and uncertainties that could cause actual plans, actions and results to differ materially from current expectations including, but not limited to, changes in economic and market conditions, and other risks and uncertainties discussed in TransAlta Renewables’ materials filed with the Canadian securities regulatory authorities from time to time and as also set forth in the final prospectus supplement of TransAlta Renewables. 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.
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