Preferred Share Information
TransAlta Corporation currently has five series of Cumulative Redeemable Rate Reset First Preferred Shares outstanding. The Series A, B, C, E and G Preferred Shares are listed on the TSX under the symbols TA.Pr.D, TA.Pr.E, TA.Pr.F, TA.Pr.H and TA.Pr.J, respectively.
The information below is subject in its entirety to the applicable prospectus supplement and share terms, both of which are available on TransAlta’s SEDAR profile at www.sedar.com.
On December 19, 2016 TransAlta Corporation announced that its Board of Directors approved a transaction pursuant to which all outstanding first preferred shares in the capital of the Corporation are proposed to be exchanged for shares in a single new series of cumulative redeemable minimum rate reset first preferred shares, Series 1. Subsequently, on January 16, 2017, TransAlta filed a Management Information Circular related to the proposed transaction which can be viewed at the following link: Management Information Circular. Included in the circular was a Questions and Answers section which we have separated and can be viewed at the following link: Questions and Answers.
On February 10, 2017 TransAlta Corporation announced that it is not proceeding with the previously announced transaction pursuant to which all the currently outstanding first preferred shares in the capital of the Corporation would be exchanged for shares in a single new series of cumulative redeemable minimum rate reset first preferred shares in the capital of the Corporation. In light of the decision to terminate such transaction, the special meetings of preferred shareholders of the Corporation scheduled for February 16, 2017 have been cancelled.
|Current Annualized Dividend||Dividend Payment Date(1)||Redemption Date(2)||Rate spread over Benchmark||Convertible to Series||Date of Issue|
|Series A (TA.PR.D) Prospectus||$0.67725(3)||Last day of March, June, Sept, Dec.
|March 31, 2021||2.03%||B||Dec. 10, 2010|
|Series B (TA.PR.E) Prospectus||Floating(4)||Last day of March, June, Sept, Dec.
|March 31, 2021||2.03%||A||March 31, 2016|
|Series C (TA.PR.F) Prospectus||$1.15||Last day of March, June, Sept, Dec.
|June 30, 2017||3.10%||D||Nov. 30, 2011|
|Series E (TA.PR.H) Prospectus||$1.25||Last day of March, June, Sept, Dec.
|Sept 30, 2017||3.65%||F||Aug. 10, 2012|
|Series G (TA.PR.J) Prospectus||$1.325||Last day of March, June, Sept, Dec.
|Sept 30, 2019||3.80%||H||Aug. 15, 2014|
1 Holders of preferred shares shall be entitled to receive, as and when declared by the Board of Directors of TransAlta, fixed cumulative preferential cash dividends, payable quarterly on the last day of the month in March, June, September, and December in each year. When a dividend payment falls on a weekend or holiday, the payment is made on the following business day.
2 Terms are subject to certain conditions, including potential redemption of such shares by TransAlta. Please refer to the corresponding prospectus for further details.
3 The annual dividend rate for the Series A shares for the 5 year period from and including March 31, 2016 to but excluding March 31, 2021 is 2.709%.
4 The Series B floating rate reflects an annual yield of 2.569% for the period from and including June 30, 2016 to but excluding September 30, 2016. Please note the quarterly floating rate will be reset every quarter. For details on calculating the quarterly floating rate dividend, please refer to the prospectus.