Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 217

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 217
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 LP, Kent Hills Wind LP, TEC Hedland Pty Ltd. and Windrise Wind LP non-recoursebonds, the TransAlta OCP LP bond, and Heartland Credit Facilities are subject to customary financing conditions and covenants that may restrict the Company’s ability to access funds generated by the facilities’ operations. Upon meeting certain distribution tests, typically performed once per quarter, the funds are able to be distributed by the subsidiary entities to their respective parent entity. These conditions include meeting a debt-service coverage ratio prior to distribution, which was met by these entities in the fourth quarter of 2024, with the exception of Kent Hills Wind LP. The funds in the Kent Hills Wind entity that have accumulated since the fourth quarter test will remain there until the next debt-service coverage ratio is calculated in the first quarter of 2025. At Dec. 31, 2024, $117 million (Dec. 31, 2023 – $79 million) of cash was subject to these financial restrictions. At Dec. 31, 2024, $5 million (AU$6 million) of funds held by TEC Hedland Pty Ltd. are not able to be accessed by other corporate entities as the funds must be solely used by the project entities for the purpose of paying major maintenance costs. Additionally, certain non-recoursebonds require that reserve accounts be established and funded through cash held on deposit and/or by providing letters of credit. Between 2025 and 2027, the Company has a total of $1,066 million of scheduled debt repayments, including the $400 million maturity of the Term Facility, with the balance of $666 million related to scheduled non-recoursedebt and tax equity repayments. The $750 million of exchangeable securities are exchangeable after Dec. 31, 2024. U.S. Tax Equity Financing and Production Tax Credits The Company owns equity interests in wind facilities that are eligible for tax incentives available for renewable energy facilities in the U.S. Current U.S., tax law allows qualified wind energy projects to receive production tax credits (PTCs) that are earned for each MWh of generation during the first 10 years of the project’s operation. To monetize tax incentives, the Company has partnered with Tax Equity Investors (TEIs) who invest in these facilities in exchange for a share of the tax incentives and cash. TransAlta accounts for the TEIs’ interest as long-term debt, where cash distributions and allocations of tax incentives to the TEIs primarily