TransAlta Renewables Announces Closing of $150 Million Bought Deal Offering of Common Shares
CALGARY, Alberta (June 22, 2018) – TransAlta Renewables Inc. (“TransAlta Renewables” or the “Company”) (TSX: RNW) announced today the successful completion of the previously announced bought deal offering of 11,860,000 common shares (“Common Shares”) through a syndicate of underwriters co-led by CIBC World Markets Inc., RBC Capital Markets and Scotiabank, as joint bookrunners (the “Offering”). The Common Shares were issued at a price of $12.65 per Common Share for gross proceeds of approximately $150 million.
The net proceeds of the Offering will be used by TransAlta Renewables to partially repay drawn amounts under the Company’s credit facility, which were drawn 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. TransAlta Corporation did not purchase any additional Common Shares under the Offering and, following today’s closing, owns approximately 61 per cent of the outstanding Common Shares of TransAlta Renewables.
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 additional liquidity under the credit facility being used for general corporate purposes, including ongoing construction costs associated with recent acquisitions 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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