TransAlta Renewables Inc. launched a bought-deal offering of 11,860,000 common shares at C$12.65 apiece for gross proceeds of approximately C$150 million.

Underwriters have an overallotment option to purchase up to an additional 1,779,000 shares. If exercised in full, TransAlta Renewables will receive additional gross proceeds of approximately C$22.5 million.

The TransAlta Corp. affiliate plans to use net proceeds to partially repay drawn amounts under its credit facility.

The offering is expected to close on June 22. The syndicate of underwriters is co-led by CIBC Capital Markets, RBC Capital Markets and Scotiabank as joint book runners.