TransAlta Corporation Announces Conversion Results for Series A and B Preferred Shares

Rhea-AI Summary

TransAlta Corporation (NYSE: TAC) announced a conversion of its preferred shares, effective March 31, 2021. Specifically, 1,417,338 Series A preferred shares will convert into Series B shares, while 871,871 Series B shares will convert back into Series A shares. Following these conversions, there will be 9,629,913 Series A shares and 2,370,087 Series B shares outstanding. These shares are listed on the Toronto Stock Exchange under symbols TA.PR.D and TA.PR.E, respectively.

Positive

• Strategic conversion of preferred shares may enhance liquidity and flexibility in capital structure.
• TransAlta is recognized as a leading producer of renewable energy in Canada.

Negative

• The conversion may indicate underlying shifts in shareholder preference for series of preferred shares, which could reflect market sentiment about the company's future outlook.

CALGARY, AB, March 18, 2021 /PRNewswire/ - Further to TransAlta Corporation's ("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC) press release dated March 1, 2021, the Company announced today that (i) 1,417,338 of its 10,175,380 currently outstanding Cumulative Redeemable Rate Reset First Preferred Shares, Series A ("Series A Shares") will be converted on March 31, 2021, on a one-for-one basis, into Cumulative Redeemable Floating Rate First Preferred Shares, Series B ("Series B Shares"), and (ii) 871,871 of its 1,824,620 currently outstanding Series B Shares will be converted on March 31, 2021, on a one-for-one basis, into Series A Shares.   As a result, on March 31, 2021, the Company will have 9,629,913 Series A Shares issued and outstanding and 2,370,087 Series B Shares issued and outstanding.

The Series A Shares and Series B Shares are currently listed on the Toronto Stock Exchange under the symbols TA.PR.D and TA.PR.E, respectively.      

About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers clean, affordable, energy efficient, and reliable power. Today, TransAlta is one of Canada's largest producers of wind power and Alberta's largest producer of hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score from CDP.

For more information about TransAlta, visit our web site at transalta.com.

View original content:http://www.prnewswire.com/news-releases/transalta-corporation-announces-conversion-results-for-series-a-and-b-preferred-shares-301250675.html

SOURCE TransAlta Corporation

FAQ

What are the Series A and Series B shares of TransAlta Corporation?

Series A and Series B shares are types of cumulative redeemable preferred shares that TransAlta Corporation issues, each with distinct features and dividends.

When will the conversions of TransAlta's preferred shares take place?

The conversions of Series A and Series B preferred shares will occur on March 31, 2021.

How many preferred shares will be converted in the TransAlta announcement?

1,417,338 Series A shares will convert into Series B shares, while 871,871 Series B shares will convert into Series A shares.

What is the significance of the preferred share conversion for TransAlta Corporation?

The conversion may enhance liquidity and accommodate shareholder preferences, potentially impacting the company's capital structure.

Where can I find more information about TransAlta Corporation?

More information can be found on TransAlta's official website at transalta.com.