PARTNERS' EQUITY

9 Months Ended

Sep. 30, 2015

PARTNERS' EQUITY

PARTNERS' EQUITY

NOTE 7PARTNERS’ EQUITY

ATM equity issuance program (ATM program)

For the nine months ended September 30, 2015, we issued 396,205 common units under our ATM program generating net proceeds of approximately $25 million, plus $1 million from the General Partner to maintain its effective two percent interest. The commissions to our sales agents for the nine months ended September 30, 2015 were approximately $256,000. The net proceeds were used for general partnership purposes.

Issuance of Class B units

On April 1, 2015, we issued Class B units to TransCanada to finance a portion of the 2015 GTN Acquisition. The Class B units entitle TransCanada to an annual distribution which is an amount based on 30 percent of cash distributions from GTN above certain annual thresholds (refer to Note 6). The Class B units contain no mandatory or optional redemption features and are also non-convertible, non-exchangeable, non-voting and rank equally with common units upon liquidation.

The Class B units’ equity account will be increased by the excess of 30 percent of GTN’s distributions over the annual threshold until such amount is declared for distribution and paid in the first quarter beginning 2016 and annually thereafter.