TransAlta Renewables Inc. Announces Acquisition of 144 MW Wind Farm

October 22, 2013 by  
Filed under Green Energy News

CALGARY, ALBERTA, Oct 21, 2013 (Marketwired via COMTEX) –
TransAlta Renewables Inc. (“TransAlta Renewables” or the “Company”)

/quotes/zigman/20473390 CA:RNW

and TransAlta Corporation (“TransAlta”)

/quotes/zigman/11323 CA:TA

/quotes/zigman/11306/quotes/nls/tac TAC

announced today that TransAlta Renewables, through a wholly
owned subsidiary of TransAlta, will acquire the economic interest in
a 144 megawatt (MW) wind farm in Wyoming for approximately US$102
million from an affiliate of NextEra Energy Resources, LLC. The wind
farm is fully operational and contracted under a long-term power
purchase agreement until 2028 with an investment grade counterparty.
The acquisition is subject to regulatory approvals and is expected to
close by the end of December 2013. At closing, the economic interest
in the wind farm will be acquired by TransAlta Renewables from
TransAlta in consideration for a payment equal to the original
purchase price of the acquisition. The acquisition is expected to be
accretive to TransAlta Renewables’ cash available for distribution
per share by approximately 2 – 3%.

“The acquisition marks our first wind project in the Western United
States and aligns with our strategy of growing our renewables
platform and diversifying our presence in the region,” said Dawn
Farrell, President and Chief Executive Officer of TransAlta. “It
positions us well for future opportunities in the U.S. wind space and
demonstrates the benefits of creating TransAlta Renewables.”

TransAlta Renewables will fund the acquisition through a US$102
million loan from TransAlta. TransAlta Renewables expects to repay
the loan with free cash flow from operations over the first 36 months
and through a long-term debt refinancing that is expected to be
completed in conjunction with other financing needs of TransAlta
Renewables. TransAlta holds approximately 80% of the issued and
outstanding shares of TransAlta Renewables.

Investment Highlights:

        --  Accretive to cash flow per share for both TransAlta Renewables and
        --  Aligns with TransAlta and TransAlta Renewables' strategy of acquiring
            contracted renewable power generation assets that provide stable cash
            flow through long-term power purchase agreements with creditworthy
        --  Establishes a platform in the U.S. for future growth in renewables
        --  Delivers growth that creates value for both sets of shareholders
        --  Provides additional geographic and asset diversification

Forward-Looking Statements

This news release contains forward-looking statements about
TransAlta’s and TransAlta Renewables’ objectives, plans, goals,
intentions, strategies, prospects and opportunities. Forward-looking
statements in this news release include statements relating to the
closing of the acquisition, prospective results of operations, the
accretive nature of the acquisition to TransAlta Renewables,
TransAlta’s and TransAlta Renewables’ financial position, the
strategy of TransAlta and TransAlta Renewables, financing
arrangements in relation to the acquisition, the commercial
arrangements expected to be entered into between TransAlta and
TransAlta Renewables, the ability of TransAlta Renewables to receive
the economic interest in the wind farm and the repayment of certain
indebtedness and the timing thereof. These forward-looking statements
are not historical facts but reflect TransAlta’s and TransAlta
Renewables’ current expectations concerning future plans, actions and
results. 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, TransAlta’s ability to successfully obtain regulatory
approvals; 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 TransAlta’s and TransAlta Renewables’ materials filed
with the Canadian securities regulatory authorities from time to time
and as also set forth in the final prospectus of TransAlta
Renewables. Readers are cautioned not to place undue reliance on
these forward-looking statements, which reflect TransAlta’s and
TransAlta Renewables’ expectations only as of the date of this news
release. TransAlta and TransAlta Renewables 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.

About TransAlta Corporation

TransAlta is a power generation and wholesale marketing company
focused on creating long-term shareholder value. TransAlta maintains
a low-to-moderate risk profile by operating a highly contracted
portfolio of assets in Canada, the United States and Australia.
TransAlta’s focus is to efficiently operate geothermal, wind, hydro,
natural gas and coal facilities in order to provide customers with a
reliable, low-cost source of power. For over 100 years, TransAlta has
been a responsible operator and a proud contributor to the
communities in which it works and lives. TransAlta has been selected
by Jantzi-Sustainalytics as one of Canada’s Top 50 Socially
Responsible Companies since 2009 and is recognized globally for its
leadership on sustainability and corporate responsibility standards
by FTSE4Good. TransAlta is Canada’s largest investor-owned renewable
energy provider.

About TransAlta Renewables Inc.

TransAlta Renewables Inc. owns a portfolio of renewable power
generation facilities. TransAlta Renewables’ objective is to (i)
create stable, consistent returns for investors through the ownership
of contracted renewable power generation assets that provide stable
cash flow through long-term power purchase agreements with
creditworthy counterparties, including TransAlta; (ii) pursue and
capitalize on strategic growth opportunities in the renewable power
generation sector; and (iii) pay out a portion of cash available for
distribution to the shareholders of TransAlta Renewables on a monthly
basis. TransAlta Renewables currently holds 28 wind and hydroelectric
power generation facilities, not including the Wyoming wind farm,
having an aggregate installed generating capacity of 1,234 MW, in
which TransAlta Renewables has a net ownership interest of
approximately 1,112 MW. TransAlta Renewables’ power generating
capacity is among the largest of any publicly-traded renewable
independent power producer (“IPP”) in Canada, with more wind power
generating capacity than any other Canadian publicly-traded IPP.
TransAlta Renewables’ strategy is focused on the efficient operation
of its portfolio of renewable power generation assets and expanding
its asset base through the acquisition of additional renewable power
generation facilities in operation or under construction.

        TransAlta Renewables Inc. - Investor inquiries:
        Brent Ward
        Director, Corporate Finance and Investor Relations
        Phone: 1-800-387-3598 in Canada and U.S.
        TransAlta Renewables Inc. - Media inquiries:
        Stacey Hatcher
        Senior Corporate Relations Advisor
        Cell: 587-216-2242
        Toll-free media number: 1-855-255-9184
        Alternate local number: 403-267-2540

SOURCE: TransAlta Renewables Inc. and TransAlta Corporation

(C) 2013 Marketwire L.P. All rights reserved.


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