TransAlta Corp. will redeem all of its outstanding 6.65% senior notes due 2018 for about $515.6 million on March 15.
The redemption price consists of the sum of the present values of the scheduled payments of principal and interest on the notes, exclusive of interest accrued to the redemption date, of $504.1 million, plus $11.5 million in accrued and unpaid interest to the redemption date for the notes.
TransAlta plans to fund the maturity with about $300 million of cash on hand, the expected proceeds from the Sundance power purchase agreement termination at the end of March, and from its credit facility.
"Over the past two years we have reduced our debt by $900 million and we are committed to our deleveraging strategy over the next three years," CFO Donald Tremblay said.
