TransAlta completes IPO for TransAlta Renewables

Canada’s TransAlta Corp. (TSX: TA) (NYSE: TAC) and TransAlta Renewables Inc. announced Aug. 9 the completion of Renewables’ C$200m initial public offering of common shares.

At closing, TransAlta holds an approximate 82.6% interest in TransAlta Renewables. TransAlta’s interest will be reduced to about 79.9% interest if an over-allotment option is exercised in full.

“We are very pleased to conclude this process and launch TransAlta Renewables as we look to grow our renewables business and continue to build value for investors of both companies,” said Dawn Farrell, President and CEO of TransAlta Corp.

The offering, previously announced on June 26, resulted in gross proceeds to TransAlta Renewables of C$200m. The net proceeds were used by TransAlta Renewables to repay a portion of the indebtedness issued by Renewables in association with the indirect acquisition from TransAlta of 28 fully contracted wind and hydro power generation facilities, having an aggregate installed generating capacity of 1,234 MW, in which Renewables holds a net ownership interest of about 1,112 MW.

TransAlta Renewables owns a portfolio of renewable power generation facilities. TransAlta Renewables’ objective is to: create stable, consistent returns for investors through the ownership of contracted renewable power generation assets that provide stable cash flow through long-term power purchase agreements with creditworthy counterparties, including TransAlta; pursue and capitalize on strategic growth opportunities in the renewable power generation sector; and pay out a portion of cash available for distribution to the shareholders of TransAlta Renewables on a monthly basis.

TransAlta Renewables has acquired 28 wind and hydroelectric generation facilities, having an aggregate installed generating capacity of 1,234 MW, in which TransAlta Renewables has a net ownership interest of approximately 1,112 MW. TransAlta Renewables’ power generating capacity is among the largest of any publicly-traded renewable independent power producer (IPP) in Canada, with more wind power generating capacity than any other Canadian publicly-traded IPP.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.