CALGARY, March 12, 2018 /PRNewswire/ - TransAlta
Corporation ("TransAlta" or the "Company") (TSX: TA; NYSE: TAC)
announces that pursuant to its notice dated February 2, 2018 (the "Notice") relating to the
redemption of all of its outstanding 6.650% Senior Notes due 2018
(the "Notes"), the redemption price for the Notes will be
US$515,610,000. This redemption price
consists of the sum of the present values of the remaining
scheduled payments of principal and interest on the Notes
(exclusive of interest accrued to the redemption date) of
US$504,110,000 (based on a benchmark
treasury rate of 1.508% plus 45 basis points), plus US$11,500,000 in accrued and unpaid interest to
the redemption date for the Notes, all as calculated in accordance
with the terms of the indenture governing the Notes.
The redemption date for the Notes is March 15, 2018, as set forth in the Notice.
"The repayment of these notes reflects our focus to reduce our
corporate debt," said Donald
Tremblay, Chief Financial Officer. "We will fund the
maturity with approximately $300
million of cash on hand, proceeds from the Sundance PPA
termination, expected at the end of March, and our credit
facility. Over the past two years we have reduced our debt by
$900 million and we are committed to
our deleveraging strategy over the next three years."
This press release does not constitute an offer to sell or buy
or the solicitation of an offer to buy or sell any security and
shall not constitute an offer, solicitation, sale or purchase of
any securities in any jurisdiction in which such offering,
solicitation, sale or purchase would be unlawful.
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 and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "propose", "plans", "intends" and similar expressions are
intended to identify forward-looking information or
statements. More particularly, this press release contains
forward-looking statements and information relating to: the
redemption price for, and timing of, the redemption of the Notes;
and the Company's strategy of debt reduction and source of funds
for the repayment of the Notes. These statements are based on
TransAlta's belief and assumptions based on information available
at the time the assumptions were made and reflect TransAlta's
plans. 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, but are not
limited to: any failure of TransAlta to complete the redemption of
the Notes as planned; and the sources of financing for the
redemption of the Notes as planned. Readers are cautioned not
to place undue reliance on these forward-looking statements or
forward-looking information, which reflect TransAlta's expectations
only 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.
Note: All financial figures are in Canadian dollars.
SOURCE TransAlta Corporation