We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TransAlta (TAC) to Get $750M Aid to Meet Clean Energy Goal
Read MoreHide Full Article
TransAlta Corporation (TAC - Free Report) announced that Brookfield Renewable Partners (BIP - Free Report) and its institutional partners will make an investment of $750 million, which will enable TransAlta to achieve its goal of transition to 100% clean energy by 2025. The funding will also assist TransAlta to enhance the value of its shareholders.
Details of Investment and Utilization
The investments will be made in two tranches, both having an interest rate of 7%. The first tranche of $350 million, in the form of Exchangeable Debentures, is expected in May 2019. The second tranche of $400 million, in the form of Redeemable Preferred Shares, is anticipated in October 2020.
TransAlta will utilize $350 million to advance the company's coal to gas transition strategy, up to $250 million to buy back shares over three years, and the remainder of the investment to advance the development of existing and new growth projects, and for general corporate purposes.
Long-Term Goals of TransAlta
In addition to transition to clean energy, TransAlta targets to reduce senior indebtedness to $1.2 billion by the end of 2020. To that end, it aims to lower recourse debt of the company by 60% in 2020 from 2015 levels. It will utilize internally generated cash flow and contribution from its new growth projects to redeem outstanding debts.
TransAlta’s Canadian coal to gas conversion will extend cumulative fleet life by nearly 75 years, and lower fixed and sustaining costs by roughly 15%, which will definitely have a positive impact on margins of the company.
Rising Focus on Clean Energy
Per a release from the U.S. Energy Information Administration (EIA), the United States will add 72 gigawatts (GW) of new wind and solar photovoltaic (PV) capacity between 2018 and 2021, courtesy of declining capital costs and the availability of tax credits. EIA also projects nearly 101 GW of coal fired generation to retire by 2050.
TransAlta is also playing a significant role to lower emission level by gradually shifting toward clean energy.
Price Movement
Shares of TransAlta Corporation have outperformed the industry in a year’s time.
Other top-ranked stocks from the same industry include Alliant Energy Corporation (LNT - Free Report) and IDACORP Inc. (IDA - Free Report) , both holding a Zacks Rank #2.
Long-term earnings growth of Alliant Energy is projected at 5.96%. The Zacks Consensus Estimate for 2019 has moved upward by 0.9% in the past 60 days to $2.24 per share.
Long-term earnings growth of IDACORP is pegged at 3.88%. The Zacks Consensus Estimate for 2019 has been upwardly revised by 0.5% in the past 60 days to $4.44 per share.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Image: Bigstock
TransAlta (TAC) to Get $750M Aid to Meet Clean Energy Goal
TransAlta Corporation (TAC - Free Report) announced that Brookfield Renewable Partners (BIP - Free Report) and its institutional partners will make an investment of $750 million, which will enable TransAlta to achieve its goal of transition to 100% clean energy by 2025. The funding will also assist TransAlta to enhance the value of its shareholders.
Details of Investment and Utilization
The investments will be made in two tranches, both having an interest rate of 7%. The first tranche of $350 million, in the form of Exchangeable Debentures, is expected in May 2019. The second tranche of $400 million, in the form of Redeemable Preferred Shares, is anticipated in October 2020.
TransAlta will utilize $350 million to advance the company's coal to gas transition strategy, up to $250 million to buy back shares over three years, and the remainder of the investment to advance the development of existing and new growth projects, and for general corporate purposes.
Long-Term Goals of TransAlta
In addition to transition to clean energy, TransAlta targets to reduce senior indebtedness to $1.2 billion by the end of 2020. To that end, it aims to lower recourse debt of the company by 60% in 2020 from 2015 levels. It will utilize internally generated cash flow and contribution from its new growth projects to redeem outstanding debts.
TransAlta’s Canadian coal to gas conversion will extend cumulative fleet life by nearly 75 years, and lower fixed and sustaining costs by roughly 15%, which will definitely have a positive impact on margins of the company.
Rising Focus on Clean Energy
Per a release from the U.S. Energy Information Administration (EIA), the United States will add 72 gigawatts (GW) of new wind and solar photovoltaic (PV) capacity between 2018 and 2021, courtesy of declining capital costs and the availability of tax credits. EIA also projects nearly 101 GW of coal fired generation to retire by 2050.
TransAlta is also playing a significant role to lower emission level by gradually shifting toward clean energy.
Price Movement
Shares of TransAlta Corporation have outperformed the industry in a year’s time.
Zacks Rank
TransAlta currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other top-ranked stocks from the same industry include Alliant Energy Corporation (LNT - Free Report) and IDACORP Inc. (IDA - Free Report) , both holding a Zacks Rank #2.
Long-term earnings growth of Alliant Energy is projected at 5.96%. The Zacks Consensus Estimate for 2019 has moved upward by 0.9% in the past 60 days to $2.24 per share.
Long-term earnings growth of IDACORP is pegged at 3.88%. The Zacks Consensus Estimate for 2019 has been upwardly revised by 0.5% in the past 60 days to $4.44 per share.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>