CALGARY, AB, Oct. 30, 2020 /PRNewswire/ - TransAlta
Corporation ("TransAlta" or "the Company") (TSX: TA) (NYSE: TAC)
today announced the closing of the $400
million second tranche of its previously announced strategic
investment by an affiliate of Brookfield Asset Management
("Brookfield"). As previously disclosed, Brookfield committed to invest $750 million in TransAlta through the purchase of
exchangeable securities, which are exchangeable in the future into
an equity ownership interest in TransAlta's Alberta hydro assets at a value based on a
multiple of the hydro assets' future adjusted EBITDA. In connection
with today's second closing, Brookfield has invested a total of
$750 million in exchangeable
securities of TransAlta; consisting of $350
million in unsecured, subordinated debentures issued on
May 1, 2019 and a further
$400 million in exchange for a new
series of redeemable, retractable first preferred shares. The
Company intends to use the proceeds from the second tranche of the
financing to advance the Company's coal-to-gas conversion program,
to fund other growth initiatives, to return capital to its
shareholders and for general corporate purposes.
About TransAlta:
TransAlta owns, operates
and develops a diverse fleet of electrical power generation assets
in Canada, the United States and Australia with a focus on long-term
shareholder value. TransAlta provides municipalities, medium and
large industries, businesses and utility customers with clean,
affordable, energy efficient and reliable power. Today, TransAlta
is one of Canada's largest
producers of wind power and Alberta's largest producer of hydro-electric
power. For over 100 years, TransAlta has been a responsible
operator and a proud community-member where its employees work and
live. TransAlta aligns its corporate goals with the UN Sustainable
Development Goals and has been recognized by CDP (formerly Climate
Disclosure Project) as an industry leader on Climate Change
Management. TransAlta is proud to have achieved the Silver
level PAR (Progressive Aboriginal
Relations) designation by the Canadian Council for
Aboriginal Business.
For more information about TransAlta, visit its website at
transalta.com.
Forward-Looking Statements:
This news
release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws
(collectively referred to as "forwarding-looking statements"). All
forward-looking statements are based on our beliefs as well as
assumptions based on information available at the time the
assumption was made and on management's experience and perception
of historical trends, current conditions, results and expected
future developments, as well as other factors deemed appropriate in
the circumstances. Forward-looking statements are not facts, but
only predictions and generally can be identified by the use of
statements that include phrases such as "may", "will", "can",
"could", "would", "should", "shall", "believe", "expect",
"estimate", "anticipate", "intend", "plan", "propose", "project",
"forecast", "foresee", "potential", "enable", "continue" and
similar expressions. These statements are not guarantees of our
future performance, events or results and are subject to a number
of significant risks, uncertainties and other important factors
that could cause our actual performance, events or results to be
materially different from those set out in the forward-looking
statements. More particularly, and without limitation, this news
release contains forward-looking statements relating to the use of
proceeds. The forward-looking statements are subject to a number of
risks and uncertainties that may cause actual performance, events
or results to differ materially from those contemplated by the
forward-looking statements. Some of the factors that could cause
such differences include: the outcomes of existing or potential
legal actions not being as anticipated, including those pertaining
to the Brookfield investment;
changes in our relationships with Brookfield and its affiliated entities or our
other shareholders; our Alberta
hydro assets not achieving their anticipated value, cash flows or
adjusted EBITDA; the Brookfield
investment not resulting in the expected benefits for the Company
and its shareholders; the ability to identify and execute on growth
initiatives; and other risks and uncertainties contained in the
Company's Management Proxy Circular and its Annual Information Form
and Management's Discussion and Analysis for the year ended
December 31, 2019, filed under the
Company's profile with the Canadian securities regulators
on www.sedar.com and the U.S.
Securities and Exchange Commission ("SEC")
on www.sec.gov. Readers
are urged to consider these factors carefully in evaluating the
forward-looking statements and 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.
In light of these risks, uncertainties and assumptions, the
forward-looking statements might occur to a different extent or at
a different time than we have described, or might not occur at all.
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.
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SOURCE TransAlta Corporation