Transalta Corporation · TSX:TA
Transalta — Merger or Acquisition (March 2019)
9 slides from Transalta's merger presentation, Mar 25, 2019
Slide 1: Strategic Investment By Brookfield
TransAlta Corporation Strategic Investment By Brookfield March 25, 2019 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes "forward-looking information", within the meaning of applicable Canadian securities laws, and "forward-looking statements", within the meaning of applicable United States securities laws, including the United States Private Securities Litigation
Slide 3: Significant Strategic Capital Investment
Significant Strategic Capital Investment $750 million investment from Brookfield • Establishes a long-term cornerstone shareholder and partner • Advances our 100% clean energy strategy • Recognizes the value of our hydro assets • Enhances our financial flexibility • Adds significant renewable and op
Slide 4: Brookfield Renewable Partners
Brookfield Renewable Partners • One of the largest public pure-play renewable businesses globally • 120 years of experience in power generation • Full operating, development and power marketing capabilities with over 2,500 operating employees • Flagship listed renewable power company of Brookfield A
Slide 5: Transaction Overview
Transaction Overview • $750 million investment by Brookfield • $350 million in Exchangeable Debentures funded in April 2019 • $400 million in Redeemable Preferred Shares funded in October 2020 • 7% coupon • Securities exchangeable into ownership interest in Alberta hydro assets • Exchangeable after
Slide 6: Recognizes Future Value of Alberta Hydro Assets
Recognizes Future Value of Alberta Hydro Assets • Exchange value based on multiple of 13 times average EBITDA for three years prior to conversion • Competitive valuation multiple based on recent industry transactions • Valuation method captures higher expected EBITDA post expiry of the existing Powe
Slide 7: Capital Injection For Advancing Strategy
Capital Injection For Advancing Strategy Advances coal-to-gas conversions • $350 million to fund high returning coal-to-gas strategy • Early conversions result in lower operating and sustaining capital costs, and lower carbon costs • Provides flexibility to consider and pursue repowering opportuniti
Slide 8: Adds Strong Operational & Renewable Expertise
Adds Strong Operational & Renewable Expertise NEW BOARD NOMINEES Harry Goldgut is Vice Chairman of Richard Legault is a Vice chairman of Mr. Robert Flexon brings a wealth of Brookfield’s Renewable Power and Brookfield’s Renewable Group. He skills and experience with independent Infrastructure Groups
Slide 9: Questions and Answers
Questions and Answers 9