Tuesday, March 26, 2019

TransAlta Announces Strategic Investment by Brookfield Renewable Partners

Brookfield Renewable Partners (BEP) is interested mainly in the Alberta Hydro Portfolio.


$750 million investment in two tranches; annual coupon of 7%. The first investment is $350 million in the form of exchangeable debentures at closing (expected in May 2019), with the second tranche of $400 million expected to close in October 2020 in the form of redeemable preferred shares. TransAlta will pay interest and dividends of 7% per year on both securities and Exchangeable into a stake in the hydro assets at 13x EBITDA (as adjusted). Brookfield’s $750 million investment in the securities is exchangeable after December 31, 2024 into an equity interest in an entity holding the hydro assets based on a multiple of 13x the average annual EBITDA generated by the hydro assets.
TransAlta Announces Strategic Investment by BEP

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