TransAlta announces closing of strategic investment by Brookfield
On May 1, 2019, TransAlta Corporation ("TransAlta") completed the previously announced investment by funds controlled by Brookfield Asset Management Inc. (collectively "Brookfield"). Under the terms of the previously announced agreement, Brookfield will invest C$750 million in TransAlta through the purchase of securities, which will be convertible into an equity ownership interest in TransAlta's Alberta Hydro Assets in the future.
The initial investment of C$350 million was in the form of debentures, and the remaining C$400 million is expected to occur at a second closing in October 2020 in the form of redeemable preferred shares. Both securities have an annual coupon rate of 7.0% and will be convertible into an equity interest in an entity holding the hydro assets after December 31, 2024. After December 31, 2024, Brookfield will have the right to exchange the acquired securities into an equity ownership interest in the entity holding the assets, based on conditions outlined in the agreement.
Further information can be found on Canada Newswire's website.
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.
Brookfield Asset Management is an alternative asset management company. It has in excess of $350 billion of assets under management, focusing on real estate, renewable power, infrastructure and private equity.