<p>We examine a transpolar arc that formed at the onset of a geomagnetic storm on 15 May 2005 just prior to the arrival of a magnetic cloud. The theta aurora was recorded over the southern hemisphere by the FUV-WIC camera onboard IMAGE satellite. While in most cases transpolar arcs decay as the IMF turns southward, this arc persisted for almost an hour into the cloud, with peak AL-activity below -1500 nT and Dst at the level of -100 nT.&#160; We use the University of Michigan Space Weather Modeling Framework (SWMF) global geospace simulation to study the magnetotail, inner magnetosphere, and ionospheric conditions during the theta aurora to resolve the origin of the polar cap precipitation. At the time of formation of the theta aurora, the SWMF simulation results indicate a single-cell potential pattern, very low Region 2 currents, and slow inner magnetotail convection. A substorm onset took place as a result of IMF turning, re-creating and enhancing the two-cell convection pattern while the theta aurora persisted. The tail flows were a complex mixture of Earthward flows along the plasma sheet boundary layer and tailward flows at the tail center created by the substorm-associated near-tail reconnection. We analyze the ionospheric mapping of the Earthward flows and the effects of the global current systems on the large-scale auroral precipitation pattern.</p>