| 02:25 PM EDT, 10/09/2020 (MT Newswires) -- TransAlta Renewables Inc. (RNW) announced TEC Hedland Pty Ltd. had priced an A$800 million senior secured notes in a private placement. The notes will bear a 4.07% interest rate maturing June 30, 2042 and will carry a preliminary "BBB" rating and Stable trend (Kroll Bond Rating Agency). RNW intends to use the net proceeds to "fund various debt service maintenance and other collateral security reserves, to repay outstanding indebtedness... ... general corporate purposes and to fund planned growth initiatives." Credit Suisse believes this term debt helps pave the way for a partial clean-up of the financial structures between the Australian business and RNW. Additionally, there are positive benefits arising from these notes that may help position the renewable player for a TransAlta Corporation (TA) drop-down. Issue close is expected on or around October 22, 2020 and, under reasonable assumptions, CS believes another ~C$1.50/sh of value could be generated from a drop-down; and, (c) a drop-down should also aid the renewables proportionality at RNW. That can help close the multiple gap for the stock versus peers. Maintain Neutral rating and a C$17 target price. (MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us) Price: 17.84, Change: +0.10, Percent Change: +0.56 |