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Canada : TRANSALTA COOPERATION aims $150m injection through share offering

August 7, 2014

TransAlta Corporation, a Canadian power company, declared that it is focusing an injection of $150 million via a share offering.

Six million Cumulative Redeemable Rate Reset First Preferred Shares, Series G, will be issued by the company to a syndicate of underwriters led by RBC Capital Markets, CIBC and Scotiabank for distribution. Net proceeds will be utilized for general corporate purposes in support of our business, to reduce short-term indebtedness and to fund capital investments of the corporation and its affiliates.

According to TransAlta, holders of the shares will be designated to obtain a cumulative quarterly fixed dividend yielding 5.3% annually for the initial period ending September 30, 2019. After that, the dividend rate will be rearranged every 5 years at a rate equal to the five-year Canadian government bond yield plus 3.8%.

With the same offering price, the underwriters can purchase up to an extra two million Series G shares. The offering is hoped to close on or about August 15.

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Source: TendersInfo (India)

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