TransAlta greenshoe exercised, lifting preferreds to C$300 million

By Marisa Wong

Madison, Wis., Dec. 10 - TransAlta Corp. said that the syndicate of underwriters for its recent offering of cumulative rate reset first preferred shares, series A, exercised the C$50 million, or 2 million share, over-allotment option in full, increasing the total size of the offering to C$300 million. The deal was completed on Friday, according to a news release.

The company originally priced C$250 million, or 10 million shares, of series A preferreds at a price of C$25.00 per share on Dec. 2 with a dividend of 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.

The syndicate of underwriters was led by CIBC World Markets Inc., RBC Dominion Securities Inc. and Scotia Capital Inc.

Proceeds of the offering will be used to partially fund capital projects, for other general corporate purposes and to reduce short-term debt. The company said it 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.

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