PARTNERS' EQUITY

12 Months Ended

Dec. 31, 2013

PARTNERS' EQUITY

PARTNERS' EQUITY

NOTE 9    PARTNERS' EQUITY

At December 31, 2013, Partners' equity included 62,327,766 common units (December 31, 2012 and 2011 – 53,472,766 common units), representing an aggregate 98 percent limited partner interest in the Partnership (including 5,797,106 common units held by the General Partner and 11,287,725 common units held indirectly by TransCanada) and an aggregate two percent general partner interest. In aggregate, the General Partner's interests represent an effective 11.1 percent ownership in the Partnership at December 31, 2013 (December 31, 2012 and 2011 – 12.6 percent).

On May 22, 2013, the Partnership closed a public offering of 8,855,000 common units, including 1,155,000 common units purchased pursuant to the exercise of the underwriters' option to purchase additional common units, at a price to the public of $43.85 per common unit for gross proceeds of $388 million and net proceeds of $373 million after unit issuance costs. The General Partner maintained its effective two percent general partner interest in the Partnership by contributing $8 million to the Partnership in connection with the offering. See Note 6 for additional information regarding the equity issuance in connection with the 2013 Acquisition.

On May 3, 2011, the Partnership completed a public offering of 7,245,000 common units at $47.58 per common unit for gross proceeds of $345 million and net proceeds of $331 million after unit issuance costs. The General Partner maintained its effective two percent general partner interest in the Partnership by contributing $7 million to the Partnership in connection with the offering. See Note 6 for additional information regarding the equity issuance in connection with the 2011 Acquisition.