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Publish Date : 24-Oct-2013

TransAlta Renewables Inc. ("TransAlta Renewables" or the "Company") and TransAlta Corporation ("TransAlta") announced today that TransAlta Renewables, through a wholly owned subsidiary of TransAlta, will acquire the economic interest in a 144 megawatt (MW) wind farm in Wyoming for approximately US$102 million from an affiliate of NextEra Energy Resources, LLC. The wind farm is fully operational and contracted under a long-term power purchase agreement until 2028 with an investment grade counterparty. The acquisition is subject to regulatory approvals and is expected to close by the end of December 2013. At closing, the economic interest in the wind farm will be acquired by TransAlta Renewables from TransAlta in consideration for a payment equal to the original purchase price of the acquisition. The acquisition is expected to be accretive to TransAlta Renewables' cash available for distribution per share by approximately 2 - 3%.

"The acquisition marks our first wind project in the Western United States and aligns with our strategy of growing our renewables platform and diversifying our presence in the region," said Dawn Farrell, President and Chief Executive Officer of TransAlta. "It positions us well for future opportunities in the U.S. wind space and demonstrates the benefits of creating TransAlta Renewables."

TransAlta Renewables will fund the acquisition through a US$102 million loan from TransAlta. TransAlta Renewables expects to repay the loan with free cash flow from operations over the first 36 months and through a long-term debt refinancing that is expected to be completed in conjunction with other financing needs of TransAlta Renewables. TransAlta holds approximately 80% of the issued and outstanding shares of TransAlta Renewables.

Investment Highlights:
Accretive to cash flow per share for both TransAlta Renewables and TransAlta,

Aligns with TransAlta and TransAlta Renewables' strategy of acquiring contracted renewable power generation assets that provide stable cash flow through long-term power purchase agreements with creditworthy counterparties,

Establishes a platform in the U.S. for future growth in renewables,

Delivers growth that creates value for both sets of shareholders,.

Provides additional geographic and asset diversification.

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