TransAlta prices C$442m bond
Wind asset-backed debt for Melancthon Wolfe Wind subsidiary
TransAlta Renewables priced on 24 September a C$442m bond offering for Melancthon Wolfe Wind, its indirect wholly-owned subsidiary, asset-backed by three wind farms in Ontario.
The three facilities are the 199.5MW Melancthon I and Melancthon II projects and the 197.8MW Wolfe Island farm.
The bond is amortizing and bears interest from its date of issue at a rate of 3.834%, payable semi-annually and matures on 31 December 2028.
Net proceeds of the financing will be used to, among other things, make advances to Canadian Hydro Developers on a subordinated basis pursuant to an intercompany loan agreement, the proceeds of which will be used to finance certain facilities of the Issuer’s affiliates and for other general business purposes.
Closing of the financing is expected to occur on 1 October.
Image: Wolfe Island wind farm (TransAlta)