CALGARY, Jan. 26, 2017 /CNW/ - TransAlta Corporation
("TransAlta") (TSX: TA; NYSE: TAC) has announced the sale of its 51 per cent interest in the Wintering Hills merchant wind
facility for approximately $61 million. Proceeds from the sale will be used for general corporate
purposes, including to reduce debt and to fund future renewables growth, including potential contracted renewable opportunities
in Alberta. The sale is expected to close in the first quarter of 2017 and is subject to
customary closing conditions, including the receipt of certain regulatory approvals. TransAlta acquired the interest in Wintering
Hills in 2015 in connection with the restructuring of the arrangements associated with its Poplar Cree co-generation
facility.
"The sale of our interest in Wintering Hills will not materially impact our EBITDA, funds from operations (FFO) or free cash
flow (FCF) guidance for 2017," commented Donald Tremblay, Chief Financial Officer. "TransAlta, as
Canada's and Alberta's largest wind operator, remains committed
to the expansion of its renewables fleet in Alberta"
The Wintering Hills facility was commissioned in 2011, is located near Drumheller, Alberta,
and consists of 55 GE, 1.6 MW wind turbines with average annual production, net to TransAlta, of approximately 143GWh.
About TransAlta Corporation:
TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta
maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia.
TransAlta's focus is to efficiently operate wind, hydro, solar, natural gas and coal facilities in order to provide customers
with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor
to the communities in which it works and lives. TransAlta has been recognized on CDP's Canadian Climate Disclosure Leadership
Index (CDLI), which includes Canada's top 20 leading companies reporting on climate change, and
has been selected by Corporate Knights as one of Canada's Top 50 Best Corporate Citizens and is
recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.
For more information about TransAlta, visit our web site at transalta.com, or follow us on Twitter @TransAlta.
Forward-Looking Statements
This news release contains forward looking statements within the meaning of applicable securities laws, including
statements regarding: the sale of the Wintering Hills merchant wind facility and the timing thereof; the use of proceeds to be
received in connection with such sale; and the impact such sale is expected to have on EBITDA, FFO and FCF guidance. These
statements are based on TransAlta's belief and assumptions based on information available at the time the assumptions were made.
These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those
contemplated by the forward-looking statements. Some of the factors that could cause such differences include failure to satisfy
the conditions to the closing of the transaction, including regulatory approvals being satisfied or met, legislative or
regulatory developments, weather, economic and competitive conditions and other risk factors contained in the Company's annual
information form. Readers are cautioned not to place undue reliance on these forward looking statements, which reflect
TransAlta's expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or
revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required
by law.
Note: All financial figures are in Canadian dollars unless otherwise indicated.
SOURCE TransAlta Corporation
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