CALGARY, May 31, 2018 /PRNewswire/ - 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.
"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."
Concurrent 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.
The price for common shares purchased under the DRIP will be 98
per cent of the average market price of the common shares for the
five trading days on which not less than 500 common shares of the
Company are traded immediately prior to the dividend payment date.
Common shares acquired under the DRIP will be issued from the
treasury of TransAlta Renewables.
Eligible shareholders are not required to participate in the
DRIP. Those shareholders who have not elected to participate in the
DRIP will continue to receive their monthly cash dividends in the
usual manner. TransAlta Corporation, which holds 64 per cent of the
outstanding shares of TransAlta Renewables, does not intend to
participate in the DRIP.
This news release provides a summary of some of the terms of the
DRIP. The DRIP defines the terms and conditions of the DRIP and the
rights of eligible participants in the DRIP. Interested
shareholders are encouraged to review the full text of the DRIP.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy any securities.
A complete copy of the DRIP, together with a related series of
Questions and Answers, are available on TransAlta Renewables
website at www.transaltarenewables.com or can be obtained by
calling AST Trust Company, TransAlta Renewables transfer agent at:
1-800-387-0825.
In addition, the Company also declared monthly dividends of
$0.07833 per share for holders of
record on July 13, 2018, August 15, 2018 and September 14, 2018 payable on each of
July 31, 2018, August 31, 2018 and September 28, 2018, respectively.
About TransAlta Renewables Inc.
TransAlta Renewables is among the largest of any publicly
traded renewable independent power producers ("IPP") in
Canada. Our asset platform and economic interests are
diversified in terms of geography, generation and counterparties
and consist of interests in 20 wind facilities, 13 hydroelectric
facilities, seven natural gas generation facilities, one solar
facility and one natural gas pipeline, representing an ownership
interest of 2,407 MW of owned generating capacity, located in the
provinces of British Columbia,
Alberta, Ontario, Québec, New
Brunswick, the State of
Wyoming, the State of
Massachusetts, the State of
Minnesota and the State of Western
Australia. Our objectives are to (i) provide
stable, consistent returns for investors through the ownership of,
and investment in, highly contracted renewable and natural gas
power generation and other infrastructure assets that provide
stable cash flow primarily through long-term contracts with strong
counterparties; (ii) pursue and capitalize on strategic growth
opportunities in the renewable and natural gas power generation and
other infrastructure sectors; (iii) maintain diversity in terms of
geography, generation and counterparties; and (iv) pay out 80 to 85
per cent of cash available for distribution to the shareholders of
the Company on an annual basis.
About TransAlta Corporation:
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. We provide municipalities,
medium and large industries, businesses and utility customers
clean, affordable, energy efficient, and reliable power. Today, we
are 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 we have been recognized by
CDP (formerly Climate Disclosure Project) as an industry leader on
Climate Change Management. We are also 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 our web site at
transalta.com.
Forward-Looking Statements
This news release contains forward looking statements,
including statements regarding the business and anticipated
financial performance of the Company and TransAlta Corporation that
are based on the Company's and TransAlta Corporation's
current expectations, estimates, projections and assumptions in
light of their experience and perception of historical trends. In
some cases, forward-looking statements can be identified by
terminology such as "plans", "expects", "proposed", "will",
"anticipates", "develop", "continue", and similar expressions
suggesting future events or future performance. In
particular, this news release contains forward-looking statements,
including certain financial outlooks, pertaining to, without
limitation, the following: the anticipated benefits to the Company
following its acquisition of an interest in the three renewable
projects, including that the acquisition will be accretive to cash
available for distribution per share; the acquisition of the
previously announced U.S. wind project; the source of funding for
the purchase price; and the intention of TransAlta Corporation not
to participate in the DRIP. These statements are subject to a
number of risks and uncertainties that could cause actual plans,
actions and results to differ materially from current expectations
including, but not limited to, the Company's ability to satisfy the
closing conditions for the acquisition of the one U.S. wind
project; changes in tax, regulatory, environmental, and other laws
and regulations; competitive factors in the renewable power
industry; operational breakdowns, failures, or other disruption;
changes in economic and market conditions, and other risks and
uncertainties discussed in the Company's and TransAlta
Corporation's materials filed with the Canadian securities
regulatory authorities from time to time. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which reflect the Company's and TransAlta Corporation's
expectations only as of the date of this news release. TransAlta
Renewables and TransAlta Corporation disclaim any intention or
obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Note: CAFD refers to cash available for distribution and is
not defined under International Financial Reporting Standards
("IFRS"). Refer to the Non-IFRS Measures section of the
Management's Discussion and Analysis for further discussion of this
measure items, including, where applicable, reconciliations to
measures calculated in accordance with IFRS. All financial
figures are in Canadian dollars unless otherwise indicated.
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SOURCE TransAlta Renewables Inc