CALGARY, Alberta — March 2, 2026 — Leads & Copy — TransAlta Corporation (TSX: TA) (NYSE: TAC) has announced it will not redeem any of its outstanding Cumulative Redeemable Rate Reset First Preferred Shares, Series A (Series A Shares) (TSX: TA.PR.D) or Series B (Series B Shares) (TSX: TA.PR.E) on the Conversion Date of March 31, 2026.
Holders of Series A Shares can either retain their shares and receive a fixed-rate quarterly dividend or convert them into Series B Shares on a one-to-one basis and receive a floating-rate quarterly dividend, subject to certain conditions.
Similarly, Series B shareholders can retain their shares and continue receiving a floating-rate quarterly dividend or convert them into Series A Shares on a one-to-one basis to receive a fixed-rate quarterly dividend, also subject to conditions.
The conversion right is conditional. If less than 1,000,000 Series A Shares would remain after conversion, Series B shareholders cannot convert to Series A Shares, and the remaining Series A Shares will automatically convert to Series B Shares. Conversely, if less than 1,000,000 Series B Shares would remain, Series A shareholders cannot convert to Series B Shares, and the remaining Series B Shares will automatically convert to Series A Shares. Currently, there are 9,629,913 Series A Shares and 2,370,087 Series B Shares outstanding.
If Series A shareholders retain their shares, they will receive a fixed quarterly dividend rate of 1.19550% (4.78200% annually) for the five-year period from March 31, 2026, to March 31, 2031. If they convert to Series B Shares, the new Series B Shares will receive a floating quarterly dividend rate of 1.05236% (4.22100% annually) for the period from March 31, 2026, to June 30, 2026. The floating rate will reset quarterly.
Series B shareholders who retain their shares will receive a floating quarterly dividend rate of 1.05236% (4.22100% annually) for the period from March 31, 2026, to June 30, 2026. If they convert to Series A Shares, they will receive a fixed quarterly dividend rate of 1.19550% (4.78200% annually) for the five-year period from March 31, 2026, to March 31, 2031.
The Series A and Series B Shares are issued in book entry only form and must be transacted through a CDS Participant. All rights must be exercised through CDS or the CDS Participant. The deadline to provide notice of conversion is 3:00 p.m. (MST) / 5:00 p.m. (EST) on March 16, 2026. Notices received after this time will not be valid. Shareholders wishing to convert their shares should contact their broker or intermediary well in advance of the deadline.
If TransAlta does not receive an election notice, the shares will be deemed not to have been converted, except in cases of automatic conversion. Shareholders will have future opportunities to convert their shares every five years, starting March 31, 2031, if the shares remain outstanding. More information is available on TransAlta’s website under Governance, including the articles of amalgamation and the share terms and series schedule.
TransAlta Corporation delivers electricity across Canada, the United States and Western Australia. TransAlta has operated essential energy infrastructure for over 100 years and has a technology-diverse portfolio.
Source: TransAlta Corporation
