TransAlta Corporation has announced:
the applicable dividend rates for its cumulative redeemable rate reset first preferred shares Series G (“Series G Shares”) (TSX: TA.PR.J) and cumulative redeemable floating rate first preferred shares Series H of the Company (“Series H Shares”).
With respect to any Series G Shares that remain outstanding after September 30, 2024, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, if, as and when declared by the Board of Directors of TransAlta. The annual dividend rate for the Series G Shares for the five-year period from and including September 30, 2024, to but excluding September 30, 2029, will be 6.77300%, being equal to the five-year Government of Canada bond yield of 2.97300% determined as of today plus 3.80000%, in accordance with the terms of the Series G Shares.
With respect to any Series H Shares that may be issued on September 30, 2024, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, if, as and when declared by the Board of Directors of TransAlta. The annual dividend rate for the 3-month floating rate period from and including September 30, 2024, to but excluding December 31, 2024, will be 8.00500%, being equal to the annual rate for the most recent auction of 90-day Government of Canada Treasury Bills of 4.20500% plus 3.80000%, in accordance with the terms of the Series H Shares (the “Floating Quarterly Dividend Rate”). The Floating Quarterly Dividend Rate will be reset every quarter.
Beneficial owners of Series G Shares who wish to exercise their conversion right should communicate with their broker or other intermediary promptly to ensure their instructions are followed so that the registered holder of the Series G Shares can meet the deadline to exercise such conversion right, which is 3:00 p.m. (MDT) / 5:00 p.m. (EDT) on September 16, 2024.
TA.PR.J was issued as a FixedReset, 5.30%+380, that commenced trading 2014-8-14 after being announced 2014-8-6. The issue reset at 4.988% effective September 30, 2019. I recommended against conversion and there was no conversion. Notice of the 2024 extension was provided in August. The issue is tracked by HIMIPref™ and has been assigned to the Scraps index on credit concerns. It continues to be rated P-4(high by S&P but remains at Pfd-3(low) with DBRS.
Thanks to Assiduous Reader niagara for bringing this to my attention!
This entry was posted on Wednesday, September 4th, 2024 at 8:49 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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TA.PR.J To Reset At 6.773%
TransAlta Corporation has announced:
TA.PR.J was issued as a FixedReset, 5.30%+380, that commenced trading 2014-8-14 after being announced 2014-8-6. The issue reset at 4.988% effective September 30, 2019. I recommended against conversion and there was no conversion. Notice of the 2024 extension was provided in August. The issue is tracked by HIMIPref™ and has been assigned to the Scraps index on credit concerns. It continues to be rated P-4(high by S&P but remains at Pfd-3(low) with DBRS.
Thanks to Assiduous Reader niagara for bringing this to my attention!
This entry was posted on Wednesday, September 4th, 2024 at 8:49 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.