TransAlta Corporation

TransAlta Corporation

January 06, 2005 09:21 ET

TransAlta to redeem preferred securities


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TRANSALTA CORPORATION

TSX SYMBOL: TA
NYSE SYMBOL: TAC

JANUARY 6, 2005 - 09:21 ET

TransAlta to redeem preferred securities

CALGARY, ALBERTA--(CCNMatthews - Jan. 6, 2005) - TransAlta Corporation
(TSX:TA) (NYSE:TAC) today announced that in order to reduce interest
costs it will redeem on Feb. 15, 2005 (the "Redemption Date") all of its
7.50% Preferred Securities (the "7.50% Preferred Securities"), which
have an aggregate principal amount of $175,000,000 and all of its 8.15%
Preferred Securities (the "8.15% Preferred Securities"), which have an
aggregate principal amount of $125,000,000. The redemption will be
funded with cash on hand and short-term debt.

The redemption price of the 7.50% Preferred Securities will be $25.23630
per 7.50% Preferred Security, which is comprised of the $25.00 principal
amount and $0.23630 of accrued and unpaid interest to the Redemption
Date. The redemption price of the 8.15% Preferred Securities will be
$25.25678 per 8.15% Preferred Security, which is comprised of the $25.00
principal amount and $0.25678 of accrued and unpaid interest to the
Redemption Date.

The 7.50% and 8.15% Preferred Securities are registered in the name of
CDS&Co. and trade on the TSX under the symbols TA.Pr.A and TA.Pr.B,
respectively. The redemption price will be credited to the accounts of
beneficial holders of the 7.50% and 8.15% Preferred Securities through
their individual brokers in the normal manner. Beneficial holders may
contact their individual brokers for additional information about
payments.

TransAlta is among Canada's largest non-regulated power generation and
wholesale marketing companies. We have coal-fired, gas-fired, hydro and
renewable generation assets in Canada, the U.S., Mexico and Australia.
With approximately 10,000 megawatts of capacity either in operation,
under construction or in development, our focus is to efficiently
operate our assets in order to provide our wholesale customers with a
reliable, low-cost source of power.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    TransAlta Corporation - Media inquiries
    Tim Richter
    Senior Advisor, Media & Government Relations
    Phone: (403) 267-7238
    Pager: (403) 213-7041
    Email: media_relations@transalta.com
    or
    TransAlta Corporation - Investor inquiries
    Daniel J. Pigeon
    Director, Investor Relations
    Phone: (403) 267-2520 or 1-800-387-3598 in Canada and U.S.
    (403) 267-2590 (FAX)
    Email: investor_relations@transalta.com
    Website: www.transalta.com