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Common Unit Repurchase and Retirement
 6 Months Ended
Mar. 31, 2015
Common Unit Repurchase and Retirement

3) Common Unit Repurchase and Retirement

In July 2012, the Board of Directors (“the Board”) of the general partner of the Partnership authorized the repurchase of up to 3.0 million of the Partnership’s Common Units (“Plan III”). In July 2013, the Board authorized the repurchase of an additional 1.9 million Common Units under Plan III. The authorized Common Unit repurchases may be made from time-to-time in the open market, in privately negotiated transactions or in such other manner deemed appropriate by management. There is no guarantee of the exact number of units that will be purchased under the program and the Partnership may discontinue purchases at any time. The program does not have a time limit. The Board may also approve additional purchases of units from time to time in private transactions. The Partnership’s repurchase activities take into account SEC safe harbor rules and guidance for issuer repurchases. All of the Common Units purchased in the repurchase program will be retired.

Under the Partnership’s second amended and restated credit agreement dated January 14, 2014, in order to repurchase Common Units we must maintain Availability (as defined in the second amended and restated credit facility agreement) of $45 million, 15.0% of the facility size of $300 million (assuming the non-seasonal aggregate commitment is outstanding) on a historical pro forma and forward-looking basis, and a fixed charge coverage ratio of not less than 1.15 measured as of the date of repurchase. The Partnership was in compliance with this covenant for all unit repurchases made during the six months ended March 31, 2015.

 

The following table shows repurchases under Plan III.

 

(in thousands, except per unit amounts)

Period

   Total Number of
Units Purchased
(a)		     Average Price
Paid per Unit
(b)		     Maximum Number
of Units that May
Yet Be Purchased		  

Plan III - Number of units authorized

         4,894   

Private transaction - Number of units authorized

         1,150   
     

 

 

  
  6,044   
 

 

 

    

 

 

    

Plan III - Fiscal years 2012 to 2014 total (c)

   3,619    $ 4.69      2,425   
 

 

 

    

 

 

    

Plan III - First quarter fiscal year 2015 total

   123    $ 5.64      2,302   

Plan III - Second quarter fiscal year 2015 total

   —      $ —        2,302   
 

 

 

    

 

 

    

 

 

  

Plan III - Six months fiscal year 2015 total

   123    $ 5.64      2,302   
 

 

 

    

 

 

    

 

(a) Units were repurchased as part of a publicly announced program, except as noted in a private transaction.
(b) Amounts include repurchase costs.
(c) Includes 1.45 million common units acquired in a private transaction.