Latham Advises on TransAlta’s CAD$350 Million Equity Offering to Finance Acquisition of Colorado Gas Peaking Assets

TransAlta Corporation (TransAlta or the company) (TSX: TA) (NYSE: TAC) has announced that it has entered into a purchase and sale agreement (the Acquisition) to acquire Mountain Peak Power LLC and Canyon Peak Power LLC (the Project Companies), each of which is an indirect subsidiary of Blackstone, Inc. The Project Companies own two new natural gas peaking facilities totaling 318 MW near Denver, Colorado. The total transaction value of US$1 billion includes the assumption of US$750 million of senior secured project‑level debt and US$250 million of equity to be raised via a concurrent bought deal common share offering for CAD$350 million and is subject to working capital and other adjustments. Net proceeds from TransAlta’s concurrent CAD$350 million bought deal common share offering will fully fund the equity component of the Acquisition.

Latham & Watkins LLP advised the underwriters on the equity offering with a Capital Markets team led by Austin partners David Miller and Samuel Rettew, with associates Don Izekor, William Brown, and Natalie Merten. Advice was also provided on tax matters by Houston partners Tim Fenn and Christine Mainguy, with associate Chris Garza; and on environmental matters by Los Angeles/Houston partner Joshua Marnitz, with associate Nolan Fargo.