10/21/2013 07:31 EDT | Updated 01/23/2014 06:58 EST

TransAlta Renewables to acquire interest in Wyoming wind farm for US$102M

CALGARY - A TransAlta (TSX:TA) subsidiary plans to acquire the "economic interest" in a 144-megawatt wind farm in Wyoming for about US$102 million.

TransAlta Renewables Inc. (TSX:RNW) will use a loan from TransAlta equal to the purchase price to indirectly acquire the asset from an affiliate of NexEra Energy Resources LLC.

TransAlta Renewables expects to repay the loan with free cash flow from operations over the first 36 months and through a long-term debt refinancing that is expected to be completed in conjunction with other financing needs of the company.

TransAlta holds approximately 80 per cent of TransAlta Renewables stock.

The acquisition, subject to regulatory approvals, is expected to close by the end of December.

TransAlta is a power and wholesale marketing company with assets in Canada, the United States and Australia that include geothermal, wind, hydro, natural gas and coal generation facilities.

TransAlta Renewables Inc. owns a portfolio of 28 wind and hydroelectric generation facilities, not including the Wyoming wind farm, having an aggregate installed generating capacity of 1,234 MW, in which TransAlta Renewables has a net ownership interest of approximately 1,112 MW.