TransAlta Corporation Closes USD $281.6 M Sale of Common Shares

TransAlta Corporation

announced today it has completed its public offering of 19,250,000 Common Shares at a price of $14.30 per Common Share. TransAlta has granted the underwriters an over-allotment option to purchase up to an additional 2,887,500 Common Shares at the same price, exercisable in whole or in part at any time for 30 days following today's closing of the offering. The over-allotment option will be used to cover over-allocations, if any. The offering, previously announced on September 4, 2012, resulted in gross proceeds to TransAlta of approximately Cdn $275 million. The net proceeds from the offering will be used to fund future growth capital expenditures, including to partially fund the previously announced acquisition of the Solomon power station if completed, repay short term indebtedness, and for general corporate purposes. This news release does not constitute an offer to sell or a solicitation of an offer to buy the Common Shares in any jurisdiction. The Common Shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent registration under the U.S. Securities Act or an applicable exemption from such registration requirements. The Common Shares were offered within the United States only to qualified institutional buyers and outside the United States in compliance with Regulation S under the U.S. Securities Act.