TransAlta Acquires 318 MW Gas Facilities for $1.0B; Raises $350M Equity
TransAlta Corporation announced the acquisition of Mountain Peak Power LLC and Canyon Peak Power LLC, which own two new natural gas peaking facilities totaling 318 MW near Denver, Colorado. The total transaction value is US$1.0 billion, comprising US$750 million in assumed debt and US$250 million in equity, funded by a concurrent $350 million bought deal common share offering. This acquisition is expected to add approximately US$80 million in Adjusted EBITDA and US$33 million in Free Cash Flow annually, providing immediate low-to-mid single-digit accretion to Free Cash Flow per Share. The assets are 100% contracted for over 25 years, strengthening TransAlta's business risk profile and establishing a strategic foothold in Colorado.
Key Highlights
- Acquisition of two natural gas-fired peaking facilities totaling 318 MW near Denver, Colorado.
- Total transaction value of US$1.0 billion, including US$750 million debt assumption and US$250 million equity.
- Expected to add approximately US$80 million in Adjusted EBITDA and US$33 million in Free Cash Flow annually.
- Anticipated to deliver immediate low-to-mid single-digit accretion to Free Cash Flow per Share.
- Concurrent bought deal common share offering for $350 million (18.2 million shares at $19.20).
- Assets are 100% contracted under tolling agreements with investment-grade customers for 25+ years.
- Acquisition expected to close early in the fourth quarter of 2026, subject to conditions.
Price Impact
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