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TransAlta Announces $345 Million Financing and the Early Redemption of $400 Million of Medium Term Notes
TransAlta Announces $345 Million Financing and the Early Redemption of $400 Million of Med...
About this update from Transalta Corporation
[{"type":"text","content":"\n\n\n\nTransAlta Announces $345 Million Financing and the Early Redemption of $400 Million of Medium Term Notes\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, July 18, 2018\n\n\n\nCALGARY, July 18, 2018 /CNW/ - TransAlta Corporation (\"TransAlta\") (TSX: TA, NYSE: TAC) today announced that its indirect wholly-owned subsidiary, TransAlta OCP LP (the \"Issuer\"), has priced an approximately $345 million bond offering, by way of a private placement, which will be secured by, among other things, a first ranking charge over all but a nominal percentage of 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 \"Financing\").  \n\nThe amortizing bonds will bear interest from their date of issue at a rate of 4.509% per annum, payable semi-annually and maturing on August 5, 2030. The bonds have a preliminary rating of BBB, with a Stable trend, by DBRS.*\n\nClosing of the Financing is expected to occur on or around July 20, 2018.\n\nTransAlta also announced today that it will redeem all of its outstanding 6.40% Medium Term Notes, due November 18, 2019 in the aggregate principal amount of $400,000,000 (the \"Notes\"). The redemption price will be $1,061.736 per $1,000 principal amount of the Notes (representing, in aggregate, $424,694,410.96) including accrued and unpaid interest on the Notes. \n\nThe Issuer will use the net proceeds of the Financing to make an initial advance to TransAlta pursuant to an intercompany loan agreement between the Issuer and TransAlta.  The proceeds advanced to TransAlta by the Issuer will be used to partially fund the redemption price of the Notes.\n\nTransAlta has delivered a notice in respect of the redemption pursuant to the indenture governing the Notes.  The redemption date for the Notes is August 2, 2018.\n\nThe 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 j...