TransAlta Corp | Cumulative Redeemable Rate Reset First Preferred Shares, Series A (TA.PRD.CA) Information Page

TransAlta Corp | Cumulative Redeemable Rate Reset First Preferred Shares, Series A (TA.PRD.CA)

Prospectus excerpt: TransAlta Corporation (the “Corporation”) is hereby qualifying the distribution (the “Offering”) of 10,000,000 cumulative redeemable rate reset first preferred shares, series A (“Series A Shares”) of the Corporation at a price of $25.00 per Series A Share. See “Details of the Offering” and “Plan of Distribution”.

The holders of Series A Shares will be entitled to receive, as and when declared by the board of directors of the Corporation out of moneys of the Corporation properly applicable to the payment of dividends, fixed cumulative preferential cash dividends for the initial period (the “Initial Fixed Rate Period”) from and including the date of issue of the Series A Shares to but excluding March 31, 2016, at an annual rate of $1.15 per share, payable quarterly on the last day of March, June, September and December in each year (less any tax required to be deducted and withheld by the Corporation). If any such date is not a business day, the dividend will be paid on the next succeeding business day. Assuming an issue date of December 10, 2010, the first dividend, if declared, will be payable March 31, 2011 in the amount of $0.3497 per share.

For each five-year period after the Initial Fixed Rate Period (each a “Subsequent Fixed Rate Period”, as defined herein), the holders of Series A Shares shall be entitled to receive, as and when declared by the board of directors of the Corporation, fixed cumulative preferential cash dividends, payable quarterly on the last day of March, June, September and December in each year, in the amount per share determined by multiplying one-quarter of the Annual Fixed Dividend Rate (as defined herein) for such Subsequent Fixed Rate Period by $25.00 (less any tax required to be deducted and withheld by the Corporation). The Annual Fixed Dividend Rate for the ensuing Subsequent Fixed Rate Period will be determined by the Corporation on the Fixed Rate Calculation Date (as defined herein) and will be equal to the sum of the Government of Canada Yield (as defined herein) on the Fixed Rate Calculation Date plus a spread of 2.03%. This spread will apply to both the Series A Shares and the Series B Shares described below, and will remain unchanged over the life of the Series A Shares. See “Details of the Offering”.

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TA.PRD.CA — Key Stats

Series:	A
Alternate symbology:	TA-D.CA, TA-PD.CA, TAprD.CA
Redeemable?:	Yes
Call Date:	3/31/2016 (Now Trading Post Call Date)
Perpetual?:	Yes
Cumulative?:	Yes
Conversion Ratio:	The holders of the Series A Shares will have the right to convert all or any of their shares into cumulative redeemable floating rate first preferred shares, series B of the Corporation (the “Series B Shares”), subject to certain conditions, on March 31, 2016 and on March 31 in every fifth year thereafter. The holders of the Series B Shares will be entitled to receive, as and when declared by the board of directors of the Corporation, quarterly floating rate cumulative preferential cash dividends payable on the last day of March, June, September and December in each year (each such quarterly dividend period is referred to as a “Quarterly Floating Rate Period”, as defined herein) in the amount per share determined by multiplying the Floating Quarterly Dividend Rate (as defined herein) for such Quarterly Floating Rate Period by $25.00 and multiplying that product by a fraction, the numerator of which is the actual number of days in such Quarterly Floating Rate Period and the denominator of which is 365 or 366, depending upon the actual number of days in the applicable year (less any tax required to be deducted and withheld by the Corporation). If any such date is not a business day, the dividend will be paid on the next succeeding business day. The Floating Quarterly Dividend Rate will be the annual rate of interest equal to the sum of the T-Bill Rate (as defined herein) on the applicable Floating Rate Calculation Date (as defined herein) plus a spread of 2.03%. See “Details of the Offering”. The Series A Shares and Series B Shares are series of shares in the same class. The conversion right entitles holders to elect periodically which of the two series they wish to hold and does not entitle holders to receive a different class or type of securities. Other than the different dividend rights and redemption rights attached thereto, the Series A Shares and Series B Shares are identical in all material respects.
Shares Offered:	10000000
Overallotment:	2000000
Liquidation Preference:	$25
Recent Market Price:	$14.35
Discount to Liquidation Preference: (More Preferreds Trading at a Discount »)	$-10.65 (-42.60%)
Annualized Dividend:	0.71924
Recent Ex-Date:	5/31/2024
Current Yield:	5.01%
Original Coupon:	4.60%
Pay Period:	Quarterly
Pay Dates:	31-Mar, 30-Jun, 30-Sep, 31-Dec
CDx3 Compliance Rating:	Learn TA.PRD.CA's Rating

About TransAlta Corp (TA.CA)

TransAlta is a power generating company. Co. owns, operates and manages portfolio of assets representing a range of fuels that include water, wind and solar, natural gas and thermal coal. Co.'s Hydro, Wind and Solar North American Gas and Australian Gas, Alberta Thermal, and Centralia business segments are responsible for operating and maintaining its electrical generation facilities as well as the related mining operations in Canada and the United States. Co.'s Energy Marketing segment is responsible for marketing its production, securing fuel supply and deploying its knowledge of power, transmission, environmental products and gas markets to capitalize on opportunities.

Preferreds: TA.PRD.CA, TA.PRF.CA, TA.PRH.CA

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TA.CA — Key Stats (updated Tuesday, November 14, 10:38 AM)