CALGARY, Alta., June 16, 2022 /PRNewswire/ – Further to TransAlta Corporation’s (“TransAlta” or the “Company”) (TSX: TA) (NYSE: TAC) press release dated May 31, 2022the Company announced today that 1,044,299 of its 11,000,000 Cumulative Redeemable Rate Reset First Preferred Shares, Series C (the “Series C Shares”) have been tendered for conversion, on a for one, into Cumulative Redeemable Floating Rate First Preferred Shares Shares, Series D (the “Series D Shares”) after considering all election notices pursuant to the June 15, 2022 conversion time. Accordingly, on June 30, 2022, the Company will have 9,955,701 Series C Shares issued and outstanding and 1,044,299 Series D Shares issued and outstanding.
The Series C shares will continue to be listed on the Toronto Stock Exchange (TSX) under the symbol TA.PR.F. The Series D Shares will begin trading on the TSX on June 30, 2022 under the symbol TA.PR.G, subject to the Company fulfilling all of the listing requirements of the TSX. The Toronto Stock Exchange has conditionally approved the listing of the Series D Shares effective upon conversion.
The Series C Shares will pay fixed cumulative preferential cash dividends on a quarterly basis, for the five-year period from June 30, 2022 to but excluding June 30, 2027if, as and when declared by TransAlta’s Board of Directors based on a fixed annual dividend rate of 5.85400%, equal to the five-year term of the Government of Canada bond yield of 2.75400% determined at May 31, 2022plus 3.10000%, in accordance with the terms of the Series C shares.
The Series D Shares will pay quarterly floating rate cumulative preferential cash dividends for the five-year period from June 30, 2022 to but excluding June 30, 2027, if, as and when declared by TransAlta’s Board of Directors. The annual dividend rate of the Series D shares for the 3-month floating rate period from June 30, 2022 to but excluding September 30, 2022 will be 4.57700%, being the annual rate for the auction of Government of Canada 90-day Treasury bills from the May 31, 2022 of 1.47700%, plus 3.10000%, in accordance with the terms of the Series D shares.
For further information on the terms and risks associated with an investment in the Series C Shares and the Series D Shares, please see TransAlta’s Prospectus Supplement dated November 23, 2011 which is available on SEDAR at www.sedar.com or on the TransAlta website at transalta.com. The Series C Shares and the Series D Shares have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) or the securities laws of the United States. Accordingly, the Series C Preferred Shares and the Series D Preferred Shares may not be offered or sold in the United States or to, or for the account or benefit of, United States Persons, except in exempt transactions. registration under United States securities law or the applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of power generation assets in Canada, United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy-efficient and reliable power. Today, TransAlta is one of from Canada major producers of wind energy and from Alberta leading producer of hydroelectric power. For more than 100 years, TransAlta has been a responsible operator and a proud member of the community where its employees work and live. TransAlta aligns its corporate objectives with the United Nations Sustainable Development Goals.
For more information about TransAlta, visit our website at transalta.com.
This press release contains certain information that is forward-looking and is subject to significant risks and uncertainties (such statements are generally accompanied by words such as “may”, “will”, “should”, “estimate”, “intend” or other identical words). Specifically, this press release contains forward-looking information regarding the Company, the Series C Shares and the Series D Shares, including, but not limited to, the listing of the Series D Shares and the amount and payment dividends on Series C Shares and Series D Shares in the future. All forward-looking information reflects the beliefs and assumptions of the Company based on information available at the time the statements were made and are therefore not guarantees of future performance. Readers are cautioned not to place undue reliance on such forward-looking information, which is given as of the date on which it is expressed in this press release. TransAlta undertakes no obligation to update or revise any forward-looking information, except as required by law. For more information on the assumptions made and the risks and uncertainties that could cause actual results to differ from those set forth in the forward-looking statements, please see the Company’s Annual Information Form, Annual Report and MD&A. filed under the Company’s profile on SEDAR at www.sedar.com and with the United States Securities and Exchange Commission at www.sec.gov.