(Source: MARKETWIRE)
TransAlta Corporation (TSX: TA)(NYSE: TAC) ("TransAlta") today
announced that it has entered into an agreement with a syndicate of
underwriters, led by RBC Capital Markets, CIBC and Scotia Capital
Inc., as bookrunners, under which they have agreed to purchase from
TransAlta and sell to the public 18,656,800 Common Shares.
The purchase price of Cdn $20.10 per Common Share will result in
gross proceeds to TransAlta of approximately Cdn $375 million. The
offering is expected to close on or about November 5, 2009. TransAlta
has granted the underwriters an over-allotment option to purchase up
to an additional 1,865,700 Common Shares at the same price,
exercisable in whole or in part at any time for 30 days following
closing of the offering.
The net proceeds from the offering will be used to repay a portion of
the indebtedness incurred in connection with the acquisition of
Canadian Hydro Developers, Inc.
The Common Shares will be offered to the public in Canada and the
United States through the underwriters or their affiliates and will
be issued by way of a prospectus supplement that will be filed with
securities regulatory authorities in Canada and the United States
under TransAlta's short form base shelf prospectus which was
previously filed with securities regulatory authorities in Canada and
in the United States under the multi-jurisdictional disclosure
system.
This news release does not constitute an offer to sell or the
solicitation of any offer to buy nor will there be any sale of these
securities in any province, state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such province,
state or jurisdiction.
Closing will be subject to customary closing conditions, including
listing of the Common Shares on the TSX and NYSE and any required
approvals of the TSX.
A copy of the short form base shelf prospectus and the prospectus
supplement relating to the offering may be obtained, when it becomes
available, from RBC Capital Markets in Canada, Attention:
Distribution Centre, 277 Front St. W., 5th Floor, Toronto, Ontario
M5V 2X4 (fax: 416-313-6066); or in the United States from RBC Capital
Markets Corporation, Attention: Prospectus Department, Three World
Financial Center, 200 Vesey Street, 8th Floor, New York, NY
10281-8098 (fax: 212-428-6260).
About TransAlta:
TransAlta is a corporation amalgamated under the Canada Business
Corporations Act. The registered office and principal place of
business of TransAlta are at 110 - 12th Avenue S.W., Calgary,
Alberta, Canada T2R 0G7.
