By Cristal Cody
Prospect News, Dec. 3 - TransAlta Corp. said that it upsized its previously announced sale of preferred stock on Thursday to C$250 million from C$200 million.
The company sold 10 million cumulative rate reset first preferred shares from series A at a price of C$25.00 per share to yield 4.6% for the initial period ending March 31, 2016.
The dividend rate will reset every five years at a rate equal to the five-year Government of Canada bond yield plus 203 basis points.
CIBC World Markets Inc., RBC Capital Markets and Scotia Capital Inc. were the bookrunners.
The managers have an over-allotment option to purchase an additional C$50 million, or 2 million shares, of series A preferreds in whole or in part prior to closing.
Proceeds will be used to partially fund capital projects, for other general corporate purposes and to reduce short-term debt. The company may invest funds that it does not immediately require in short-term marketable debt securities.
Calgary, Alta.-based TransAlta is a power generation and wholesale marketing company.
| Issuer: | TransAlta Corp.
|
| Amount: | C$250 million (10 million preferred shares), increased from C$200 million
|
| Greenshoe: | C$50 million (2 million preferred shares)
|
| Maturity: | March 31, 2016
|
| Securities: | Cumulative rate reset first preferred shares
|
| Bookrunners: | CIBC World Markets Inc., RBC Capital Markets, Scotia Capital Inc.
|
| Dividend: | 4.6% until March 31, 2016, then resets every five years at five-year Government of Canada bond yield plus 203 bps
|
| Price: | Par of C$25.00
|
| Pricing date: | Dec. 2
|
| Settlement date: | Dec. 10
|
| Distribution: | Canada
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