TransAlta Prices C$350 Million Equity Offering for Colorado Gas Asset Acquisition

The offering includes an over-allotment option for underwriters to purchase up to an additional 2,734,500 common shares within 30 days. The underwriting fee is set at C$0.768 per share, resulting in net proceeds of C$18.432 per share before expenses.

TransAlta (NYSE: TAC), through its subsidiary TransAlta Holdings U.S. Inc., entered into a purchase agreement on June 3, 2026, to acquire Mountain Peak Power HoldCo, LLC and Canyon Peak HoldCo LLC from Kindle Energy LLC. The target companies indirectly own the 162 MW Mountain Peak Power facility in Keenesburg and the 156 MW Canyon Peak Power development project in Bennett.

The total purchase price for the Colorado assets is approximately US$1.0 billion. This valuation includes the assumption of US$750 million in senior secured project-level debt and a US$250 million cash payment, subject to standard adjustments. TransAlta intends to use the net proceeds from the equity offering to satisfy the cash portion of this transaction.

The offering is being conducted through a syndicate of underwriters including CIBC World Markets, RBC Dominion Securities, and Scotia Capital. The closing of the equity issuance is scheduled for approximately June 9, 2026, subject to customary closing conditions and regulatory approvals from the Toronto Stock Exchange and the New York Stock Exchange.

TransAlta has applied to list the new common shares on both the TSX and the NYSE. Pending the closing of the acquisition, the company may use the proceeds to temporarily reduce existing indebtedness or invest in short-term liquid instruments. The financial statements for the offering were prepared in accordance with International Financial Reporting Standards (IFRS).