TransAlta Renewables Announces $260 Million Financing of New Brunswick Wind Assets

September 28, 2017

TransAlta Renewables Inc. has announced that its indirect majority-owned subsidiary, Kent Hills Wind LP (the “Issuer”), priced an approximately $260 million bond offering, by way of a private placement, which will be secured by, among other things, a first ranking charge over all assets of the Issuer (the “Financing”).  The bonds will be amortizing and will bear interest from their date of issue at a rate of 4.454%, payable quarterly and maturing on November 30, 2033.

Net proceeds of the Financing will be used to fund a portion of the construction costs for the 17.25 MW Kent Hills expansion (upon meeting certain completion tests and other specified conditions) and to make advances to Canadian Hydro Developers, Inc. (“CHD”) and to an affiliate of Natural Forces Technologies Inc., the Company’s partner who owns approximately 17% of the Issuer. The proceeds of the advances to CHD will be used to redeem all of CHD’s outstanding Debentures (as defined below).

Closing of the Financing is expected to occur on or around October 2, 2017.

The Issuer’s assets consist of the 96 MW Kent Hills I wind facility, the 54 MW Kent Hills II wind facility and the planned 17.25 MW Kent Hills III expansion located near Moncton, New Brunswick.  Kent Hills I and II began commercial operation in December 2008 and November 2010, respectively. The 17.25 MW expansion is expected to begin commercial operation in October 2018.  Each phase of the wind project is 100% contracted to New Brunswick Power from the date of commercial operation to November 2035 and utilizes proven Vestas turbine technology.

http://www.newswire.ca/news-releases/transalta-renewables-announces-pricing-of-260-million-project-financing-of-new-brunswick-wind-assets-648333973.html