TransAlta closes wind stake sale and $1 billion Colorado gas acquisition

TransAlta ($TAC) completed two transactions that reshape its generation portfolio. It sold a 49% interest in a 500-megawatt Oklahoma wind portfolio to infrastructure funds managed by Ares ($ARES) for $305 million in cash before adjustments. TransAlta retains operational control and long-term asset-management responsibilities for the White Rock and Horizon Hill assets.

The company also closed its acquisition of Mountain Peak Power and Canyon Peak Power from Blackstone ($BX) for $1 billion, including $750 million of assumed project debt. The Colorado portfolio comprises 318 megawatts of fully contracted gas-peaking capacity near Denver. The transactions release capital from wind ownership while adding contracted flexible generation. The gas acquisition's headline value includes debt and should not be interpreted as $1 billion of cash paid to the seller.

Sources:

• GlobeNewswire