Brookfield wraps up C$750m investment in TransAlta

Calgary-based power generation company TransAlta Corp has closed the C$400 million second tranche of a strategic investment by Brookfield Asset Management.

Calgary-based power generation company TransAlta Corp has closed the C$400 million second tranche of a strategic investment by Brookfield Asset Management. Brookfield’s investment in TransAlta now totals C$750 million. The company will use the proceeds for its coal-to-gas conversion program, growth objectives and other priorities.

PRESS RELEASE

CALGARY, AB, Oct. 30, 2020 /CNW/ – 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.