CALGARY, AB, Dec. 2, 2021 /CNW/ - TransAlta Renewables Inc.
("TransAlta Renewables" or the "Company") (TSX: RNW) announced
today that its 206.4 MW Windrise wind facility (the "Windrise
Facility") achieved commercial operation on November 10, 2021. The Company also
announced that its indirect wholly-owned subsidiary, Windrise Wind
LP (the "Issuer"), has priced a secured green bond offering by way
of private placement for approximately $173
million (the "Offering").
"This is our tenth wind facility in Alberta and is the first project to reach
commercial operation out of the eight projects awarded through the
second and third rounds of the Alberta Electric System Operator's
Renewable Electricity Program," said Todd
Stack, President. "The completion of the Windrise Facility
during the COVID-19 pandemic demonstrates our team's execution
capabilities and commitment to delivering on our customers' needs
for clean electricity."
The Windrise Facility is located roughly 20 km southwest of
Claresholm on approximately 11,000
acres of privately-owned land. The project consists of 43 Siemens
Gamesa 4.8MW turbines. The Windrise Facility is TransAlta
Renewables' largest wind farm to-date and has a 20-year offtake
agreement with the Alberta Electric System Operator (the
"AESO").
The Offering will be secured by, among other things, a first
ranking charge over all assets of the Issuer, subject to the
security granted by the Issuer to the AESO for certain amounts that
may become owing to the AESO in certain circumstances. The bonds
will be amortizing and will bear interest from their date of issue
at a rate of 3.41% per annum and mature on September 30, 2041. Payments on the bonds will be
interest-only to and including December 31,
2022, with quarterly blended payments of principal and
interest commencing on March 31,
2023. The bonds are aligned with the four-components of the
2021 International Capital Markets Association Green Bond
Principles.
The Issuer intends to use proceeds of the Offering to, among
other things, repay all amounts owing by the Issuer pursuant to an
intercompany construction loan agreement entered into in connection
with the Windrise Facility, make advances to TransAlta Renewables
on a subordinated basis pursuant to an intercompany loan agreement,
the proceeds of which will be used to finance or refinance eligible
green projects, including renewable energy facilities and to fund a
construction reserve account. Closing of the financing is expected
to occur on or around December 6,
2021.
Windrise Facility Highlights:
- Average annual EBITDA of $20-$22
million;
- Total capital cost of approximately $280-$285
million;
- Long-term contracted cashflows with a high investment grade
counterparty; and
- Extends the contracted duration of the Company's cashflows
The securities mentioned herein have not been and will not be
registered under the United States Securities Act of 1933, as
amended, any state securities laws or the laws of any other
jurisdiction, and may not be offered or sold in the United States absent registration or an
applicable exemption from such registration requirements. The
securities mentioned herein have not been and will not be qualified
for distribution to the public under applicable Canadian securities
laws and, accordingly, any offer and sale of the securities in
Canada will be made on a basis
which is exempt from the prospectus and dealer registration
requirements of such securities laws. The securities will be
offered and sold in Canada on a
private placement basis only to "accredited investors". This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities
in the United States, Canada or any jurisdiction in which such
offer, solicitation or sale would be unlawful.
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 27 wind facilities, 13
hydroelectric facilities, eight natural gas generation facilities,
twenty-one solar facilities, one natural gas pipeline, and one
battery storage project, representing an ownership interest of
2,966 megawatts of owned generating capacity, located in the
provinces of British Columbia,
Alberta, Ontario, Québec, New
Brunswick, the States of Pennsylvania, New
Hampshire, Wyoming,
Massachusetts, Michigan, Minnesota, Washington, North
Carolina, 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.
Cautionary Statement Regarding Forward-looking
Information
This news release contains "forward-looking information" and
"future oriented financial 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 Reform Act of 1995
(collectively referred to herein as "forward-looking statements").
All statements other than statements of historical fact are
forward-looking statements. 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 the
Issuer's future performance. In particular, this news release
contains, without limitation, forward-looking statements pertaining
to the completion of the Offering and the timing thereof and the
use of the proceeds of the Offering, legislative or regulatory
developments, competition, global capital markets activity, changes
in prevailing interest rates, currency exchange rates, inflation
levels, commodity prices and general economic conditions in the
geographic areas where we operate. The forward-looking statements
contained in this news release are based on current expectations,
estimates, projections and assumptions, having regard to the
Company's experience and its perception of historical trends, and
includes, but is not limited to, that there will be no material
changes to existing applicable legislation, there will be no
material defaults by the counterparties to agreements with the
Issuer or its affiliates, that general economic and industry
conditions in the jurisdictions in which the Company conducts and
will conduct its business will remain stable in relation to current
general and industry conditions and that all approvals and
satisfaction of all conditions to the completion of the Offering
will be satisfied. The forward-looking statements are subject to a
number of risks and uncertainties that may cause actual results to
differ materially from those contemplated by the forward-looking
statements. Some of the factors that could cause such differences
include: the regulatory and political environments and general
economic conditions in the jurisdictions in which the Company
operates; operational risks involving the Issuer's wind facility;
increased funding costs and market volatility due to market
illiquidity and competition for funding; effects of weather,
catastrophes and public health crises, including COVID-19;
strategic, credit, market risks (including changes in prevailing
interest rates, foreign exchange rates, credit spreads, inflation
levels and commodity prices) and other risks and uncertainties
discussed in the Company's materials filed with the securities
regulatory authorities from time to time and as also set forth in
the Company's MD&A and Annual Information Form for the year
ended December 31, 2020. The
financial guidance has been prepared by management to provide an
outlook of the Company's activities and results, and such
information may not be appropriate for other purposes. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which reflect the Company's expectations only as of the
date of this news release. TransAlta Renewables disclaims 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: All financial figures are in Canadian dollars unless noted
otherwise.
SOURCE TransAlta Renewables Inc