TransAlta Shares Slide on $1B U.S. Gas-Plant Acquisition, Equity Raise

Dow Jones06-04

By Adriano Marchese

TransAlta shares fell Thursday after announcing a $1 billion deal to acquire two fully contracted gas plants in Colorado, adding long-term cash flow but will require taking on significant debt and issuing new shares.

Shares trading in Toronto were down over 10% to 18.03 Canadian dollars ($12.97).

The Canadian power generation company has made a deal to acquire Mountain Peak Power and Canyon Peak Power and their two natural gas peaking facilities near Denver, Colorado, it said late Wednesday.

The facilities are fully contracted under tolling agreements with investment grade customers for over 25 years. They total 318 megawatts of power, and are expected to add about $80 million a year of adjusted earnings before interest, taxes, depreciation and amortization, as well as C$33 million of free cash flow.

The $1 billion transaction value includes the assumption of $750 million of senior secured project level debt and a share offering of 350 million Canadian dollars ($251.8 million) which it will use to fund the equity component of the acquisition.

For the share offering, TransAlta will issue 18.2 million shares at a price of C$19.20. The company is selling the stocks to underwriters on a boat deal basis, who can also buy up to another 2.7 million shares which could bring the proceeds up by another C$53 million.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

June 04, 2026 11:55 ET (15:55 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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