Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 29

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 29
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 the Notes may be adversely affected by the amount and terms of our future debt.

Our ability to make timely payments
on our outstanding debt may depend on the amount and terms of our other obligations, including any other senior debt securities issued by the Corporation. The Indenture governing the Notes will not contain any limitation on the amount of
indebtedness or other liabilities that we or any of our subsidiaries may incur in the future, including additional senior debt securities. In the event we issue additional notes under the Indenture or incur other indebtedness, unless our earnings
grow in proportion to our debt and other fixed charges, our ability to service the Notes on a timely basis may become impaired. We expect that we will from time to time incur additional debt and other liabilities. In addition, TransAlta will not be
restricted from paying dividends on or repurchasing its securities under the Indenture governing the Notes.

We may redeem the Notes before they mature, which could occur when prevailing interest rates are relatively low.

We may redeem all or any portion of the Notes at our
option as described under “Description of Notes– Optional Redemption.” Any such redemption may occur when prevailing interest rates are lower than the rate borne by the Notes. These redemption rights may,
depending on prevailing market conditions at the time, create reinvestment risk for the noteholders in that they may be unable to find a suitable replacement investment with a comparable return to those Notes. If prevailing rates are lower at the
time of redemption, noteholders may not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as the interest rate on the Notes being redeemed. The redemption of the Notes also may adversely
affect noteholders’ ability to sell the Notes if and at any time after the Notes are called for partial or full redemption.

S-23

USE OF PROCEEDS

We expect that the net proceeds from this offering will be approximately US$391 million after deducting underwriting commissions and
estimated expenses of this offering. We intend to use the net proceeds from this offering, together with cash on hand, to redeem the 2029 Notes.

The underwriting commission will be paid by the Corporation from the gross proceeds of the offering of Notes. The expenses of the offering
will be paid from the general funds of the Corporation.

The Corporation’s overall corporate strategy and major initiatives
supporting its strategy are summarized in the Annual MD&A and the Annual Information Form.

S-24

PRIOR SALES