TransAlta Corporation Announces $202.5 Million Financing
CALGARY, Alberta (December 7, 2016) – TransAlta Corporation (“TransAlta”) (TSX: TA, NYSE: TAC) today announced that its indirect wholly-owned subsidiary, TAPC Holdings LP (the “Issuer”), which holds TransAlta’s interest in the Poplar Creek Cogeneration facility, has completed the private placement of $202.5 million aggregate principal amount of senior secured floating rate bonds (the “Bonds”). The Bonds, which mature on December 31, 2030, are secured by a first ranking charge over all the equity interests in the Issuer and its general partner, and a first ranking charge over all of the Issuer’s accounts and certain other assets. The Bonds are amortizing and bear interest for each quarterly interest period at a rate per annum equal to the three-month Canadian Dollar Offered Rate in effect on the first day of such quarterly interest period plus 395 basis points. The interest rate for the initial period commencing on the date of issue and ending on December 31, 2016 is 4.828% per annum.
“This is another step toward achieving our goal of raising $400 to $600 million of project financing in 2016,” said Donald Tremblay, Chief Financial Officer. “So far in 2016, we have completed approximately $362 million of project level financing including the New Richmond project financing from earlier this year. As the year comes to a close we are continuing to advance our work on achieving our goal of repositioning the capital structure of the business.”
The net proceeds of the financing are expected to be used to, among other things, provide financing to certain of the Issuer’s affiliates, reduce the indebtedness of certain of the Issuer’s affiliates (including TransAlta) and for other general business purposes.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
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 Corporation
TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been recognized on CDP’s Canadian Climate Disclosure Leadership Index (CDLI), which includes Canada’s top 20 leading companies reporting on climate change, and has been selected by Corporate Knights as one of Canada’s Top 50 Best Corporate Citizens and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.
For more information about TransAlta, visit our web site at transalta.com, or follow us on Twitter @TransAlta.
Cautionary Statement Regarding Forward Looking Information
This news release contains forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical facts included in this news release may constitute forward-looking statements, including statements regarding the anticipated use of proceeds from the financing and TransAlta’s ability to raise $400 to $600 million of project financing over the next few months. These statements are based on TransAlta’s (including those of its subsidiaries) belief 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 use of proceeds made at management’s discretion; deterioration of credit markets; changes to commercial arrangements; and risks associated with economic and competitive conditions.Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta 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:
Manager, Investor Relations
Phone: 1 800-387-3598 in Canada and U.S.
Toll-free media number: 1-855-255-9184