CALGARY, Alberta, March  02, 2026  (GLOBE NEWSWIRE) -- TransAlta Corporation (TransAlta or the Company) (TSX:TA) (NYSE:TAC) announced today that it does not intend to exercise its right to redeem all or any portion of

TransAlta Corporation Provides Conversion Right and Dividend Rate Notice for Series A and B Preferred Shares

TransAlta Announces No Redemption of Preferred Shares; Conversion Options Remain

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>CALGARY, Alberta, March  02, 2026  (GLOBE NEWSWIRE) -- TransAlta Corporation (TransAlta or the Company) (TSX:TA) (NYSE:TAC) announced today that it does not intend to exercise its right to redeem all or any portion of</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>TransAlta Corporation has decided not to redeem its Series A and Series B preferred shares, allowing shareholders to either retain their shares or convert them. This move maintains fixed and floating dividend rates and sets a deadline for conversion, likely stabilizing shareholder expectations and offering flexible investment choices.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>TransAlta won&#039;t redeem preferred shares on March 31, 2026.</li><li>Holders of Series A Shares can either retain or convert to Series B.</li><li>Holders of Series B Shares can also retain or convert to Series A.</li><li>Quarterly dividends for Series A will be fixed at 4.782%.</li><li>Conversion deadline is March 16, 2026, at 5 PM EST.</li></ul>
  </section>

  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>TransAlta Corporation (TAC)</strong>: As the issuer, TransAlta&#039;s decision directly affects dividend strategies.</li></ul>
  </section>

  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>This news falls under Corporate Developments, as it details critical shareholder options affecting the capital structure and dividend strategy of TransAlta Corporation.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Investors can choose between fixed or floating dividends, impacting share liquidity.</li><li>Conversion option could influence market demand for both series of shares.</li><li>The fixed annualized dividend of 4.782% is attractive in the current yield environment.</li><li>Conversion deadline on March 16, 2026, may cause increased trading activity.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>TransAlta has 9,629,913 Series A Shares and 2,370,087 Series B Shares outstanding.</li><li>Series A dividend is fixed at an annualized 4.782% until March 2031.</li><li>Series B dividend is floating at 4.221% for the three months until June 30, 2026.</li><li>Conversion rate is 1:1 between Series A and B Shares.</li><li>Conversion deadline for shareholders is March 16, 2026, at 5 PM EST.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>TAC may see stable demand for preferred shares as investors adjust their dividend strategies.</p>
  </section>
</section>


<link type="text/css" rel="stylesheet" href="https://www.globenewswire.com/styles/gnw_nitf.css"></link><p align="justify">CALGARY, Alberta, March  02, 2026  (GLOBE NEWSWIRE) -- TransAlta Corporation (TransAlta or the Company) (TSX:<a class="ticker" href="https://www.benzinga.com/quote/TA">TA</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/TAC">TAC</a>) announced today that it does not intend to exercise its right to redeem all or any portion of the currently outstanding Cumulative Redeemable Rate Reset First Preferred Shares, Series A (Series A Shares) (TSX:<a class="ticker" href="https://www.benzinga.com/quote/TA">TA</a>) and the Cumulative Redeemable Floating Rate First Preferred Shares, Series B (Series B Shares) (TSX:<a class="ticker" href="https://www.benzinga.com/quote/TA">TA</a>) on March 31, 2026 (the Conversion Date).</p>  <p align="justify">As a result, and subject to certain conditions, the holders of the Series A Shares will have the right to elect to: (a) retain any or all of their Series A Shares and continue to receive a fixed rate quarterly dividend; or (b) convert all or any of their Series A Shares into Series B Shares on the basis of one Series B Share for each Series A Share on the Conversion Date and receive a floating rate quarterly dividend.</p>  <p align="justify">Comparably, subject to certain conditions, the holders of the Series B Shares will have the right to elect to: (a) retain any or all of their Series B Shares and continue to receive a floating rate quarterly dividend; or (b) convert all or any of their Series B Shares into Series A Shares on the basis of one Series A Share for each Series B Share on the Conversion Date and receive a fixed rate quarterly dividend.</p>  <p align="justify">As provided in the share terms, the foregoing conversion right is subject to the conditions that: (i) if TransAlta determines that there would remain outstanding immediately following the conversion, less than 1,000,000 Series A Shares, holders of Series B Shares shall not be entitled to convert their shares into Series A Shares, and the remaining Series A Shares will automatically convert to Series B Shares, on the Conversion Date; or (ii) if TransAlta determines that there would remain outstanding immediately after the conversion, less than 1,000,000 Series B Shares, holders of Series A Shares shall not be entitled to convert their shares into Series B Shares, and the remaining Series B Shares will automatically convert to Series A Shares, on the Conversion Date. There are currently 9,629,913 Series A Shares outstanding and 2,370,087 Series B Shares.</p>  <p align="justify">Should a holder of Series A Shares choose to retain their shares, such shareholders will receive the quarterly fixed dividend rate applicable to Series A Shares of 1.19550% (4.78200% on an annualized basis) for the five-year period from and including March 31, 2026 to but excluding March 31, 2031. Should a holder of Series A Shares choose to convert their shares to Series B Shares, the Series B Shares that may be issued on the Conversion Date will receive the floating quarterly dividend rate applicable to the Series B Shares of 1.05236% (4.22100% on an annualized basis) for the three-month period from and including March 31, 2026 to but excluding June 30, 2026. The floating dividend rate will be reset every quarter.</p>  <p align="justify">Should a holder of Series B Shares choose to retain their shares, such shareholders will receive the floating quarterly dividend rate applicable to Series B Shares of 1.05236% (4.22100% on an annualized basis) for the three-month period from and including March 31, 2026 to but excluding June 30, 2026. The floating dividend rate will be reset every quarter. Should a holder of Series B Shares choose to convert their shares to Series A Shares, holders of Series A Shares will receive the fixed quarterly dividend rate applicable to the Series A Shares of 1.19550% (4.78200% on an annualized basis) for the five-year period from and including March 31, 2026 to but excluding March 31, 2031.</p>  <p align="justify">The Series A Shares and Series B Shares are issued in book entry only form and must be purchased or transferred through a participant in the CDS depository service (CDS Participant). All rights of holders of Series A Shares and Series B Shares must be exercised through CDS or the CDS Participant through which the shares are held. The deadline for the registered shareholder to provide notice of exercise of the right to convert Series A Shares into Series B Shares, or Series B Shares into Series A Shares, as applicable, is 3:00 p.m. (MST) / 5:00 p.m. (EST) on March 16, 2026. Any notices received after this deadline will not be valid. As such, holders of Series A Shares or Series B Shares who wish to exercise their right to convert their shares should contact their broker or other intermediary for more information and it is recommended that this be done as soon as possible and well in advance of the deadline in order to provide the broker or other intermediary with time to complete the necessary steps.</p>  <p align="justify">If TransAlta does not receive an election notice from a holder of Series A Shares or Series B Shares during the time fixed therefor, then such shares shall be deemed not to have been converted (except in the case of an automatic conversion described above). Holders of the Series A Shares and the Series B Shares will have the opportunity to convert their shares again on March 31, 2031, and every five years thereafter as long as the shares remain outstanding. For more information on the terms of the Series A Shares and the Series B Shares, please see TransAlta's articles of amalgamation, including the share terms and shares in series schedule attached thereto as Schedule A, which are available on the Company's website under Governance.</p>  <p><strong>About TransAlta Corporation: </strong></p>  <p align="justify"><em>TransAlta is one of Canada's largest publicly traded power generators, delivering reliable electricity across Canada, the United States and Western Australia. For more than 100 years, our people have safely operated and evolved essential energy infrastructure that powers customers and communities. Our technology-diverse portfolio and disciplined execution allow us to deliver dependable power across evolving energy systems. We take a practical, responsible approach to meeting today's energy needs while building for what comes next.</em></p>  <p align="justify"><em>For more information about TransAlta, visit our web site at </em><a href="https://www.globenewswire.com/Tracker?data=lKIKSwbpVpVdA2Y7B_lxV3UYjDj1FJ0m4Dv14IguZFWrP2NpbjrIxdB83iU06uPUdU39rxXaqs2FBkaRhQJkFQ==" rel="nofollow" target="_blank"><em><u>transalta.com</u></em></a><em>.</em></p>  <p><strong>Forward Looking Information</strong></p>  <p align="justify">This news release contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as "may", "will", "should", "estimate", "intend" or other similar words). Specifically, this news release contains forward-looking information with respect to the Company and the conversion of the Series A Shares and the Series B Shares. All forward-looking information reflects the Company's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release. TransAlta undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from those in the forward-looking information, refer to the Company's most recent Annual Report and Management's Discussion and Analysis and the Prospectus Supplement dated Dec. 3, 2010, in each case filed under the Company's profile on SEDAR at <a href="http://www.sedarplus.com" title="www.sedarplus.com">www.sedarplus.com</a>.</p>  <p><strong>For more information:</strong></p> <table style="border-collapse: collapse; width:100%; border-collapse:collapse ;"><tr><td style="vertical-align: bottom ; "><strong><em>Investor Inquiries:</em></strong></td><td style="vertical-align: bottom ; "><strong><em>Media Inquiries:</em></strong></td></tr><tr><td style="vertical-align: bottom ; ">Phone: 1-800-387-3598 in Canada and US</td><td style="vertical-align: bottom ; ">Phone: 1-855-255-9184</td></tr><tr><td style="vertical-align: bottom ; ">Email: <a href="mailto:investor_relations@transalta.com" rel="nofollow" target="_blank">investor_relations@transalta.com</a> </td><td style="vertical-align: bottom ; ">Email: <a href="mailto:ta_media_relations@transalta.com" rel="nofollow" target="_blank">ta_media_relations@transalta.com</a> </td></tr></table> <p><br></br></p> <img alt="" class="__GNW8366DE3E__IMG" src="https://www.globenewswire.com/newsroom/ti?nf=OTY2NDM2OCM3NDYzNzM0IzIyODU2NTE="></img> <br></br><img alt="" src="https://ml.globenewswire.com/media/OWYwYTA0ZGItYzZjNi00MDcxLTg2NGItYTFjYjIwNTZhNWI5LTEyOTcyMDEtMjAyNi0wMy0wMi1lbg==/tiny/TransAlta-Corporation.png" referrerpolicy="no-referrer-when-downgrade"></img><p><a href="https://www.globenewswire.com/NewsRoom/AttachmentNg/10bf7a28-0d23-4e33-a9bc-301280c82a15"><img src="https://ml.globenewswire.com/media/10bf7a28-0d23-4e33-a9bc-301280c82a15/small/picture2-jpg.jpg" border="0" width="150" height="50" alt="Primary Logo"></img></a></p>

TransAlta Corporation has decided not to redeem its Series A and Series B preferred shares, allowing shareholders to either retain their shares or convert them. This move maintains fixed and floating dividend rates and sets a deadline for conversion, likely stabilizing shareholder expectations and offering flexible investment choices.

TransAlta Corporation Provides Conversion Right and Dividend Rate Notice for Series A and B Preferred Shares

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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