TransAlta unveils share offering

TransAlta Corp., Canada’s largest wind energy generator, will issue 6,000,000 Series G preferred shares to raise C$150m ($137.3m) that it will utilize to support renewable and thermal power operations.

RBC Capital Markets, CIBC and Scotiabank will lead a syndicate of underwriters for the share offering that will close on or about 15 August.

Shareholders will be entitled to receive a cumulative quarterly fixed dividend yielding 5.30% annually for the initial period ending 30 September 2019.

Thereafter, the company will reset the dividend rate every five years at a rate equal to the 5-year Government of Canada bond yield plus 3.80%.

TransAlta Corporation has granted the underwriters an option, exercisable in whole or in part prior to closing, to purchase up to an additional 2,000,000 Series G Shares at the same offering price.

Based in Calgary, TransAlta has interests in about 1.23GW of wind projects in Canada and fully owns the 144MW Wyoming Wind project in that US state.