TransAlta Corporation has announced that it will not exercise its right to redeem all or any portion of its outstanding Cumulative Redeemable Rate Reset First Preferred Shares, Series A ($TA.PR.D) and Cumulative Redeemable Floating Rate First Preferred Shares, Series B ($TA.PR.E) on March 31, 2026. This decision means that the Series A and Series B preferred shares will continue to be outstanding and will reset their dividend rates on the Conversion Date.
The Series A and Series B preferred shares were initially issued by TransAlta Corporation in 2011 and have a face value of $25 per share. The shares have a cumulative dividend rate, meaning that any unpaid dividends will accrue and be paid out in the future. The decision not to redeem the shares is likely due to the current market conditions and the company’s financial performance. TransAlta Corporation has been focusing on its transition to cleaner energy sources and has made significant investments in renewable energy projects.
The Series A shares have a fixed dividend rate of 4.5% per annum, while the Series B shares have a floating dividend rate that is reset quarterly based on the 3-month Canadian Dollar Offered Rate. The shares are listed on the Toronto Stock Exchange under the symbols $TA.PR.D and $TA.PR.E, respectively. The market reaction to the announcement has been muted, with the shares trading relatively flat on the news.
The key details of the Series A and Series B preferred shares are as follows:
| Share Series | Dividend Rate | Conversion Date |
|---|---|---|
| Series A ($TA.PR.D) | 4.5% per annum | March 31, 2026 |
| Series B ($TA.PR.E) | Floating rate based on 3-month Canadian Dollar Offered Rate | March 31, 2026 |
The decision by TransAlta Corporation to not redeem the Series A and Series B preferred shares is likely to have implications for the company’s capital structure and dividend payments in the future. As the company continues to transition to cleaner energy sources, it will be important to monitor its financial performance and dividend payments to shareholders.
⚡ Why it matters: The decision by TransAlta Corporation to not redeem its preferred shares has implications for the company’s capital structure and dividend payments. This announcement provides insight into the company’s financial priorities and strategy.
📊 By the numbers:
Face value of shares: $25 per share
Dividend rate for Series A shares: 4.5% per annum
Conversion Date: March 31, 2026
🔗 Source: GlobeNewswire*
