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TransAlta Renewables Announces the Acquisition of Three Renewable Assets from TransAlta Corporation, Implementation of a Dividend Reinvestment Plan and Declares Dividends
TransAlta Renewables Announces the Acquisition of Three Renewable Assets from TransAlta Co...
About this update from Transalta Corporation
[{"type":"text","content":"\n\n\n\nTransAlta Renewables Announces the Acquisition of Three Renewable Assets from TransAlta Corporation, Implementation of a Dividend Reinvestment Plan and Declares Dividends\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 31, 2018\n\n\n\nCALGARY, May 31, 2018 /CNW/ - TransAlta Renewables Inc. (\"TransAlta Renewables\" or the \"Company\") (TSX: RNW) and TransAlta Corporation (TSX: TA; NYSE: TAC) today announced that TransAlta Renewables has acquired an economic interest in the 50 MW Lakeswind Wind Farm in Minnesota and 21 MW of solar projects located in Massachusetts, from TransAlta Corporation. In addition, TransAlta Renewables acquired ownership of the 20 MW Kent Breeze Wind Farm located in Ontario. The total purchase price for the three assets, which have an average weighted contract life of 15 years, is $166 million, including the assumption of $62 million of tax equity obligations and project debt. The equity value of $104 million represents a 10x multiple of CAFD and is expected to be accretive on a per share basis. TransAlta Renewables will fund the equity value portion of the acquisition using existing liquidity.\n\n\"The acquired assets are a natural fit for TransAlta Renewables which focuses on diversified, highly contracted cash flows from strong counterparties,\" said John Kousinioris, President of TransAlta Renewables. \"These drop-downs, along with the two recent U.S. wind projects, demonstrate our ability to execute on accretive, renewable acquisitions.\"\n\nConcurrent with the acquisition, the Board of Directors of TransAlta Renewables has approved the implementation of a dividend reinvestment plan (\"DRIP\") for Canadian holders of common shares of TransAlta Renewables. Commencing with the dividend payable on July 31, 2018, to shareholders of record at the close of business on July 13, 2018, eligible shareholders may elect to automatically reinvest monthly dividends into additional common shares of TransAlta Renewables.\n\nThe price for common shares purchased under the DRIP will be 98 per cent of the average market pr...