CALGARY,
AB, Nov. 14, 2022 /PRNewswire/
- TransAlta Corporation ("TransAlta") (TSX: TA) (NYSE: TAC) is
pleased to announce that it priced a public offering ("the
Offering") of US$400 million
aggregate principal amount of its 7.750% senior notes due
November 15, 2029, at an issue price
equal to 100% of the principal amount of the notes, in an
underwritten U.S. public offering. Including the gain on the
corresponding interest rate hedges, the issuance equates to an
effective yield of approximately 5.982%. Closing of the Offering is
expected to occur on or about November 17,
2022.
TransAlta intends to use the net proceeds from the sale of the
notes to repay C$100 million drawn on
its credit facility and replace balance sheet cash used to fund the
repayment in full of TransAlta's 4.500% unsecured senior notes on
November 15, 2022 and pay any related
fees and expenses. We intend to allocate an amount equal to the net
proceeds from this offering to finance or refinance, in part or in
full, new and/or existing eligible green projects in accordance
with our Green Bond Framework.
The Offering is made pursuant to a preliminary prospectus
supplement dated November 14, 2022 to
a short form base shelf prospectus of TransAlta dated June 28, 2021, which forms a part of and is
included in TransAlta's registration statement on Form F-10, filed
in the United States with the U.S.
Securities and Exchange Commission ("SEC"). A final prospectus
supplement in respect of the offering of the notes will be filed
with the SEC. The short form base shelf prospectus and the
prospectus supplements contain important detailed information about
the notes. Copies of these documents may be obtained without charge
by visiting the SEC's EDGAR website at www.sec.gov or from
Attention: RBC Capital Markets, 200 Vesey Street, 8th Floor,
New York, New York 10281-8098,
Telephone: 212-428-6200.
This press release shall not constitute an offer to sell or the
solicitation to buy, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration under the securities
laws of any such state or jurisdiction. The notes being offered
have not been approved or disapproved by the SEC or any Canadian
securities regulatory authority, nor has any authority passed upon
the accuracy or adequacy of the short form base shelf prospectus or
the prospectus supplement.
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 111 years, TransAlta has been a responsible
operator and a proud member of the communities where we operate and
where our employees work and live. TransAlta aligns its corporate
goals with the UN Sustainable Development Goals and its climate
change strategy with CDP (formerly Climate Disclosure Project) and
the Task Force on Climate-related Financial Disclosures (TCFD)
recommendations. TransAlta has achieved a 61 per cent reduction in
GHG emissions since 2015.
Forward Looking Information:
This news release contains "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 Reform
Act of 1995 (collectively referred to herein as "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 future performance. In
particular, this news release contains, without limitation,
statements pertaining to: TransAlta's intention to use the net
proceeds from the Offering to replace balance sheet cash and any
indebtedness drawn to fund the repayment in full of TransAlta's
4.500% unsecured senior notes on November
15th, 2022, and pay any related fees and expenses;
TransAlta's intention to allocate an equivalent amount to the net
proceeds of the Offering to finance or refinance, in part or in
full, new and/or existing eligible green projects in accordance
with TransAlta's Green Bond Framework; and the completion and
expected closing date of the Offering. These forward-looking
statements are not historical facts but are based on TransAlta's
belief and assumptions based on information available at the time
the assumptions were made, including, but not limited to, the
current political and regulatory environment, the price of power in
Alberta and the condition of the
financial markets. These 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: operational risks involving our facilities; changes in
market prices where we operate; unplanned outages at generating
facilities and the capital investments required; equipment failure
and our ability to carry out repairs in a cost effective and timely
manner, including the Kent Hills remediation; the effects of
weather, catastrophes and public health crises; global supply chain
disruptions impacting major maintenance and growth projects;
disruptions in the source of thermal fuels, water, solar or wind
required to operate our facilities, including the necessary natural
gas supply; energy trading risks; failure to obtain necessary
regulatory approvals in a timely fashion, or at all; inability to
satisfy all conditions and requirements associated with announced
growth projects; negative impact to our credit ratings; legislative
or regulatory developments and their impacts; increasingly
stringent environmental requirements and their impacts; increased
competition; global capital markets activity (including our ability
to access financing at a reasonable cost); changes in prevailing
interest rates; currency exchange rates; inflation levels and
commodity prices; armed hostilities, including an escalation of the
war in Ukraine; general economic
conditions in the geographic areas where TransAlta operates;
disputes or claims involving TransAlta or TransAlta Renewables; and
other risks and uncertainties discussed in TransAlta's materials
filed with the securities regulatory authorities from time to time
and as also set forth in TransAlta's MD&A and Annual
Information Form for the year ended Dec. 31,
2021. Readers are cautioned not to place undue reliance on
these forward-looking statements, which reflect TransAlta's
expectations only as of the date of this news release. The purpose
of the financial outlooks contained in this news release are to
give the reader information about management's current expectations
and plans and readers are cautioned that such information may not
be appropriate for other purposes and is given as of the date of
this news release. TransAlta 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.
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SOURCE TransAlta Corporation
