Pipeline maps related documents

  • 9fee3411888f79d6

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    LIQUIDITY AND CAPITAL RESOURCES OF TC PIPELINES, LPCash Distribution Policy of TC PipeLinesDuring the subordination period, which ended July 30, 2004, the Partnership made distributions of Available Cash, as defined in the partnership agreement, in the following manner:First, 98% to the common units, pro rata, and 2% to the general partner, until there is distributed for each outstanding common unit an amount equal to the minimum quarterly distribution for that quarter;Second, 98% to the common units, pro rata, and 2% to the general partner, until there is distributed for each outstanding common unit an amount equal to any arrearages in payment of the minimum quarterly distribution on the common units for that quarter and for any prior quarters during the subordination period;Third, 98% to the subordinated units, pro rata, and 2% to the general partner, until there is distributed for each outstanding subordinated unit an amount equal to the minimum quarterly distribution for that quarter; andThereafter, in a manner whereby the general partner has rights (referred to as incentive distribution rights) to receive increasing percentages of excess quarterly cash distributions over specified cash distribution thresholds.Since July 30, 2004, the Partnership has made distributions of Available Cash, as defined in the Partnership Agreement, in the following manner:First, 98% to the common units, pro rata, and 2% to the general partner, until there is distributed for each outstanding common unit an amount equal to the minimum quarterly distribution for that quarter; andThereafter, in a manner whereby the general partner has rights (referred to as incentive distribution rights) to receive increasing percentages of excess quarterly cash distributions over specified cash distribution thresholds.After the distributions described above are met, additional Available Cash from Operating Surplus (as defined in the partnership agreement) for that quarter will be distributed, among the unitholders and the general partner (as incentive distribution) in the following manner:First, 85% to all units, pro rata, and 15% to the general partner, until each unitholder has received a total of $0.5275 for that quarter;Second, 75% to all units, pro rata, and 25% to the general partner, until each unitholder has received a total of $0.6900 for that quarter; andThird, 50% to all units, pro rata, and 50% to the general partner.The distribution to the general partner described above, other than in its capacity as a holder of 2,809,306 units that are in excess of its aggregate 2% general partner interest, represent the incentive distribution rights.Conversion of Subordinated UnitsAll 2,809,306 subordinated units originally issued to the general partner have converted pursuant to and in accordance with the terms of the partnership agreement in one-third increments on August 1, 2002, August 1, 2003, and July 30, 2004. As a result, the subordination period has terminated.20