TransAlta Corp., a Canadian energy company with more than USD7 billion in assets, has entered a handful of swaps on the back of a recent bond deal to convert a fixed-rate obligation into a mix of fixed and floating-rate liabilities. An official in the treasury department in Calgary said the company entered four separate swaps totaling USD125 million in which it will receive the fixed-rate coupon of 6.75% on the bond and pay four separate floating rates, which he declined to specify. He said the swaps allow the company to evenly split the USD300 million deal into fixed and floating-rate liabilities.
The Canadian company did not enter any foreign exchange options as part of the deal, because it was raised to replace other dollar-denominated exposure, the official said. He declined further comment.
Moody's Investors Service rates TransAlta Baa1 and Standard & Poor's rates it BBB.
