TRANSALTA CORP

Regulatory Filings • Nov 9, 2009

FWP 1 a09-33067_2fwp.htm FWP

*Filed Pursuant to Rule 433*

*Issuer Free Writing Prospectus dated November 9, 2009*

*Relating to Preliminary Prospectus Supplement dated November 9, 2009*

*Registration Statement No. 333-155243*

*TransAlta Corporation*

*Pricing Term Sheet*

| Issuer: | TransAlta
Corporation |
| --- | --- |
| Expected
Ratings: * | Baa2/BBB |
| Security
Type: | SEC
registered senior unsecured notes |
| Size: | US$500,000,000 |
| Maturity: | January 15,
2015 |
| Coupon: | 4.75%
per annum, payable semi-annually |
| Price: | 99.783%
(US$498,915,000) |
| Yield
to Maturity: | 4.795% |
| Spread: | +250
basis points |
| Benchmark
Treasury: | 2.375%
due October 31, 2014 |
| Treasury
Yield/Price: | 2.295%/100-
12 |
| Settlement
Date: | November 13,
2009 |
| Interest
Payment Dates: | January 15
and July 15 of each year commencing July 15, 2010 |
| Make-Whole
Call: | T+37.5
basis points |
| CUSIP
No.: ISIN
No.: | 89346D
AD9 US89346DAD93 |
| Joint
Book-Running Managers: | RBC
Capital Markets Corporation HSBC
Securities (USA) Inc. RBS
Securities Inc. |
| Co-Managers: | CIBC World
Markets Corp. Scotia Capital
(USA) Inc. Mitsubishi UFJ Securities (USA), Inc. BNP Paribas
Securities Corp. |

• Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

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Please note that the third paragraph on page S-15 of the Prospectus Supplement is hereby completed and revised as follows: The pro forma earnings coverage ratios for the twelve month period ended December 31, 2008 and the twelve month period ended September 30, 2009, giving effect to this offering and without the application of the net proceeds from the sale of the Notes (assuming this offering took place on the first date of the respective twelve month period), would have been 2.4x and 1.8x, respectively.

*The issuer has filed a registration statement (including a prospectus) with the United States Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling RBC Capital Markets Corporation at (212) 428-6670, HSBC Securities (USA) Inc. toll free at 1-866-811-8049 or RBS Securities Inc. toll free at 1-866-884-2071.*

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