TransAlta Raises C$350 Million to Fund 318 MW Denver Peaker Acquisition
TAC•TransAlta closed a bought deal offering of 18.23 million shares at $19.20 per share, raising gross proceeds of $350 million. Net proceeds will fund the cash purchase price of its planned 318 MW natural gas peaking facility acquisition near Denver, expected to close in early Q4 2026.
1. Bought Deal Offering Close
TransAlta issued 18.23 million common shares at $19.20 per share through a bought deal underwriting, generating approximately $350 million in gross proceeds. The offering was led by a syndicate of underwriters including CIBC Capital Markets and RBC Capital Markets.
2. Use of Proceeds
Net proceeds are earmarked to fund the cash purchase price of the previously announced acquisition of two natural gas-fired peaking facilities. If the acquisition does not close, funds will be available for future growth opportunities, capital expenditures, debt reduction or other general corporate purposes.
3. Acquisition Details
The acquisition involves two peaking facilities totaling 318 MW near Denver, Colorado, and is expected to close in early Q4 2026, subject to regulatory approvals and other closing conditions. These facilities will expand TransAlta's gas-fired generation capacity in a high-demand market.
4. Overallotment Option
Underwriters have a 30-day option to purchase up to 2.7345 million additional common shares at the offering price, potentially providing TransAlta with an extra $52.5 million in gross proceeds if exercised.
