PARTNERS' EQUITY

3 Months Ended

Mar. 31, 2016

PARTNERS' EQUITY

PARTNERS' EQUITY

NOTE 7PARTNERS’ EQUITY

ATM equity issuance program (ATM program)

In the three months ended March 31, 2016, we issued 368,448 common units under our ATM program generating net proceeds of approximately $19 million, plus $0.4 million from the General Partner to maintain its effective two percent interest. The commissions to our sales agents for the three months ended March 31, 2016 were approximately $186,000. The net proceeds were used for general partnership purposes.

Class B units issued to TransCanada

The Class B Units we issued on April 1, 2015 to finance a portion of the 2015 GTN Acquisition represent a limited partner interest in us and entitle TransCanada to an annual distribution based on 30 percent of GTN’s annual distributions as follows: (i) 100 percent of distributions above $20 million through March 31, 2020; and (ii) 25 percent of distributions above $20 million thereafter.

For the year ending December 31, 2016, the Class B units’ equity account will be increased by the excess of 30 percent of GTN’s distributions over the annual threshold of $20 million until such amount is declared for distribution and paid in the first quarter of 2017. For the three months ended March 31, 2016, the threshold has not been exceeded.

For the year ended December 31, 2015, the Class B distribution was $12 million and was declared and paid in the first quarter of 2016.