PARTNERS' EQUITY

12 Months Ended

Dec. 31, 2014

PARTNERS' EQUITY

PARTNERS' EQUITY

NOTE 9    PARTNERS' EQUITY

At December 31, 2014, Partners' equity included 63,561,546 common units (December 31, 2013 – 62,327,766 and 2012 - 53,472,766 common units), representing an effective 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 effective two percent general partner interest. In aggregate, the General Partner's interests represent an effective 10.9 percent ownership in the Partnership at December 31, 2014 (December 31, 2013 – 11.1 percent and 2012 – 12.6 percent).

ATM Equity Issuance Program (ATM Program)

In August 2014, the Partnership entered into an Equity Distribution Agreement (the EDA) with five different financial institutions (Managers), Pursuant to which the Partnership may from time to time, offer and sell common units having an aggregate offering price of up to $200 million. Sales of such common units will be made by means of ordinary brokers' transactions on the NYSE at market prices, in block transactions or as otherwise agreed upon by one or more of the Managers and the Partnership.

In 2014, the Partnership issued 1.3 million common units under the ATM Program generating net proceeds of approximately $72 million, plus an additional $1 million from the General Partner's to maintain its effective two percent interest. The commissions to our sales agents were approximately $1 million. The net proceeds were used to finance the 2014 Acquisition (refer to Note 6).

Equity issuance in connection with the 2013 Acquisition

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. (Refer to Note 6).