By Adriano Marchese


Canadian renewable power-generation company TransAlta Renewables Inc. has received a waiver from the trustees of its bonds over events that may have caused a default after all of its New Brunswick turbines were determined to need major repairs.

TransAlta Renewables said its indirect subsidiary, Kent Hills Wind LP, had given notice to BNY Trust Company of Canada--trustee for the 219 million Canadian dollar (US$173 million) outstanding nonrecourse project bonds-- that it could be at risk of default after determining that all 50 turbine foundations at the Kent Hills 1 and 2 sites needed replacing.

The company said that it was able to secure an acceptable waiver of those events, and that it has also entered into a supplemental indenture that will facilitate the rehabilitation of the sites.

The subsidiary is now proceeding with its rehabilitation plan, which will require the dismantling of the turbines and replacing the tower foundations with newly-designed ones, the company said.

These works are expected to be completed by mid-2023, it said.

Additionally, Kent Hills Wind has also extended its power purchase agreements with New Brunswick Power Corp. by 10 more years, to December 2045, representing a total generating capacity of 167 megawatts, TransAlta Renewables said.

The company didn't provide any financial details of the contract, though it said the price in the agreements aligns with current competitive pricing for wind generation and includes escalators to reflect inflation.

The two companies said they expect to work closely while the rehabilitation process at the Kent Hills sites continues.


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


(END) Dow Jones Newswires

06-02-22 0803ET