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TransAlta Announces Initial Closing of the Brookfield Strategic Financing
TransAlta Announces Initial Closing of the Brookfield Strategic Financing Canada N...
About this update from Transalta Corporation
[{"type":"text","content":"\n\n\n\nTransAlta Announces Initial Closing of the Brookfield Strategic Financing\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, May 1, 2019\n\n\n\nCALGARY, May 1, 2019 /CNW/ - TransAlta Corporation (\"TransAlta\" or the \"Company\") (TSX:TA) (NYSE:TAC) today announced the closing of the initial tranche of its previously announced $750 million strategic investment by an affiliate of Brookfield Renewable Partners (\"Brookfield\").\n\"Having achieved this important milestone, we can now start to realize the benefits of our partnership and financing with Brookfield,\" said Dawn Farrell, CEO of TransAlta. \"We are moving swiftly to put capital to work including advancing our coal-to-gas conversions.\"\nAs previously disclosed, Brookfield will invest $750 million in TransAlta through the purchase of exchangeable securities, which are convertible into an equity ownership interest in TransAlta's Alberta hydro assets in the future at a value based on a multiple of the hydro assets' future adjusted EBITDA. In connection with today's initial closing, Brookfield invested $350 million in TransAlta in exchange for unsecured, subordinated debentures; the remaining $400 million will be invested in October 2020 in exchange for a new series of redeemable, retractable first preferred shares, subject to the satisfaction of certain customary conditions precedent. In connection with the transaction, TransAlta shareholders recently elected to its Board of Directors two experienced Brookfield executives, Harry Goldgut and Richard Legault, at its 2019 Annual and Special Shareholders' Meeting. \nThe investment provides the financial flexibility to drive TransAlta's transition to 100% clean energy by 2025, recognizes the anticipated future value of TransAlta's Alberta hydro assets, and also accelerates the Company's plan to return capital to its shareholders. It also creates a partnership with one of the world's leaders in the renewables industry and is expected to generate value in the near-term, while driving sustainable growth over the long-term for all T...