Transalta Corp 6-K, filed Mar 17, 2020
Transalta Corp (TAC)
About this 6-K
Transalta Corp filed this 6-K on March 17, 2020.
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March,
2020
Commission File Number 001-15214
TRANSALTA
CORPORATION
(Translation of registrant's name into English)
110-12th
Avenue S.W., Box 1900, Station “M”, Calgary, Alberta, Canada, T2P 2M1
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F ¨ | Form 40-F þ |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1). _____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7). _____
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TRANSALTA CORPORATION | |
| By: | /s/ Todd Stack |
| Name: Todd Stack | |
| Title: Chief Financial Officer | |
Date: March 17, 2020
EXHIBIT INDEX
|
Exhibit Number |
Description of Document | |
| 99.1 | “TransAlta Announces Acquisition of a Contracted Cogeneration Asset in Michigan” |
Exhibit 99.1
TransAlta Announces Acquisition of a Contracted Cogeneration Asset in Michigan
CALGARY, March 17, 2020 /CNW/ - TransAlta Corporation ("TransAlta") (TSX: TA) (NYSE: TAC) announced today the acquisition of a contracted cogeneration asset from two private companies for a purchase price of approximately US$27 million, subject to working capital adjustments. The asset is a 29 MW cogeneration facility in Michigan which is contracted under a long-term power purchase agreement and steam sale agreement for approximately six years with high quality counterparties.
"The acquisition marks our first U.S. cogeneration project and aligns with our strategy of growing our on-site generation business, diversifying our cogeneration portfolio, and increasing the pipeline of assets for potential future drop-downs into TransAlta Renewables," said Dawn Farrell, President and Chief Executive Officer of TransAlta. "The expansion into new geographic markets further enhances our position as a leader in behind the fence generation and provides potential for future opportunities in the U.S. cogeneration space."
The cogeneration facility, which comprises a single GE LM2500 gas turbine and an ABB steam turbine, has been operational since 1991. The electricity and steam output of the facility are fully contracted providing consistent, predictable revenues through 2026. The acquisition will be funded with cash on hand.
Investment Highlights:
- Attractive cash-on-cash yield and project return acquisition metrics;
- Expands TransAlta's platform in the U.S. and is an entry into the U.S cogeneration space;
- Potential drop-down candidate to TransAlta Renewables Inc.;
- Long-term contracted cash flows with high quality counterparties; and
- Provides further geographic, technology and counterparty diversification.
The acquisition is subject to customary regulatory approvals and is expected to close in the second quarter of 2020.
About TransAlta:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States
and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses
and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada's largest
producers of wind power and Alberta's largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible
operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable
Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change
Management. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the
Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its website at transalta.com.
Forward Looking Statements:
This news release contains forward looking statements within the meaning of applicable securities laws. The
use of any of the words "expect", "anticipate", "continue", "estimate", "may",
"will", "project", "should", "propose", "plans", "intends" and similar
expressions are intended to identify forward looking information or statements. More particularly, and without limitation, this
news release contains forward looking statements and information relating to: the completion of the acquisition of the cogeneration
facility and the associated benefits therefrom; expectations and plans for future growth, including expansion into new markets;
and the potential for a drop-down of the assets to TransAlta Renewables Inc. These forward looking statements are based on a
number of assumptions considered by the Company to be reasonable as of the date of this news release, including, but not limited
to, the following: unanticipated impacts relating to novel coronavirus; no significant changes to applicable laws and regulations,
including any tax and regulatory changes; no material adverse impacts to the investment and credit markets; and assumptions regarding
our current strategy and priorities, including as it pertains to our growth strategy and relationship with TransAlta Renewables.
The forward looking statements are subject to a number of risks and uncertainties that may cause actual performance, events or
results to differ materially from those contemplated by the forward looking statements, which include: failure to satisfy the conditions
to the closing of the transaction; changes in the market place in which the cogeneration facility is located; failure to proceed
with the drop-down to TransAlta Renewables Inc.; changes to the operational characteristics of the off-takers under the long-term
power purchase agreement; changes in the law or political developments; and other risk factors contained in the Company's Annual
Information Form and Management's Discussion and Analysis for the year end dated December 31, 2019, filed under the Company's profile
with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov. Readers
are cautioned not to place undue reliance on this forward looking information, which is given as of the date it is expressed in
this news release. The Company undertakes no obligation to update or revise any forward looking information except as required
by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to
differ from those in the forward looking information, refer to the Company's Annual Report and Management's Discussion and Analysis
filed under the Company's profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.
View original content:http://www.prnewswire.com/news-releases/transalta-announces-acquisition-of-a-contracted-cogeneration-asset-in-michigan-301025141.html
SOURCE TransAlta Corporation
View original content: http://www.newswire.ca/en/releases/archive/March2020/17/c1357.html
%CIK: 0001144800
For further information: Investor Inquiries: Phone: 1-800-387-3598 in Canada and U.S., Email: investor_relations@transalta.com; Media Inquiries: Phone: Toll-free media number: 1-855-255-9184, Email: ta_media_relations@transalta.com
CO: TransAlta Corporation
CNW 07:00e 17-MAR-20