TransAlta Corporation reported late Wednesday that it has agreed to acquire two Colorado natural gas-fired peaking facilities in a transaction valued at roughly US$1 billion. The Calgary-based power producer said the purchase will include the takeover of US$750 million in debt and the issuance of US$250 million in new equity through a bought-deal common share offering.
The company’s announcement came with an immediate market reaction: TransAlta shares fell 3.2% in after-hours trading on Wednesday following disclosure of the transaction and the concurrent equity raise.
Deal specifics outline the acquisition of two peaking assets totaling 318 MW. The larger unit, the 162 MW Mountain Peak Power facility, entered service in September 2025. The second, the 156 MW Canyon Peak Power facility, is projected to reach commercial operation in the third quarter of 2026. Each plant is sold with long-term commercial contracts in place.
TransAlta emphasized that both facilities are fully contracted under tolling agreements with investment grade counterparties for periods exceeding 25 years. Under these contracts, the contracts provide for full pass-through of fuel costs, operations and maintenance expenses, and capital costs. The counterparties named in the announcement are United Power, Inc. and CORE Electric Cooperative.
On a financial basis, TransAlta expects the newly acquired assets to contribute approximately US$80 million in adjusted EBITDA annually and to produce about US$33 million in free cash flow each year. The company described the assets as "high-quality, low-risk" and said the deal will be accretive to Free Cash Flow per Share.
"This acquisition adds new, high-quality, low-risk assets in a core market for us," said Joel Hunter, President and Chief Executive Officer of TransAlta. "It strengthens our business risk profile, is immediately accretive to our Free Cash Flow per Share and establishes a strategic foothold in Colorado, a state we believe has accelerating growth potential."
The equity portion of the transaction will be executed as a bought deal comprising 18.2 million common shares priced at $19.20 per share, led by CIBC Capital Markets and RBC Capital Markets. The offering is expected to close on or about June 9, 2026. Underwriters have a 30-day option to purchase up to an additional 2.7 million shares, which would raise approximately $53 million in further proceeds if exercised.
TransAlta said the acquisition remains subject to customary closing conditions and regulatory approvals. The company anticipates the deal will close early in the fourth quarter of 2026, assuming those conditions are satisfied.
The transaction combines an immediate addition to generating capacity in Colorado with a financing package that blends substantial debt assumption and an equity issuance. Market participants reacted to the combined financing and acquisition news by trading the shares lower in after-hours action.