TransAlta Renewables Inc (TSE:RNW) today announced it priced a CAD 442 million (USD 331.4m/ EUR 297.3m) wind-asset backed bond offering for its indirect wholly-owned subsidiary, Melancthon Wolfe Wind LP.
The bonds bear interest from their date of issue at a rate of 3.834%, payable semi-annually and mature on December 31, 2028.
Scotia Capital Inc. acted as sole lead agent and bookrunner for this financing. The transaction will close on October 1, 2015.
"This financing is in line with our strategy to optimize the capital structure and match duration of debt with the asset life and cash flows," said Brett Gellner, TransAlta Renewables CEO.
Net proceeds of the financing will be used to, among other things, make advances to Canadian Hydro Developers, Inc. on a subordinated basis pursuant to an intercompany loan agreement, the proceeds of which will be used to finance certain facilities of the Issuer's affiliates and for other general business purposes, the company said in a press release.
Melancthon Wolfe Wind LP owns the Melancthon I, Melancthon II and Wolfe Island wind farms, all located in the Province of Ontario. The 199.5 MW Melancthon I and II facilities began commercial operations in March 2006 and November 2008, respectively. The 197.8 MW Wolfe Island facility was launched in June 2009.