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Common Unit Repurchase Plans and Retirement
 12 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Common Unit Repurchase Plans and Retirement

5) Common Unit Repurchase Plans and Retirement

In July 2012, the Board adopted a plan to repurchase certain of the Company’s Common Units (the “Repurchase Plan”). Through August 2019, the Company had repurchased approximately 9.5 million Common Units under the Repurchase Plan. In August 2019, the Board authorized an increase of the number of Common Units that remained available for the Company to repurchase from 1.3 million to a total of 2.3 million, of which, 1.0 million were available for repurchase in open market transactions and 1.3 million were available for repurchase in privately-negotiated transactions. The Company repurchased approximately 5.4 million Common Units in fiscal year 2019, and 1.0 million total Common Units remain available for repurchase at the end of the fiscal year 2019.  There is no guarantee of the exact number of units that will be purchased under the program and the Company 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 Company’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 Credit Agreement dated July 2, 2018, in order to repurchase Common Units we must maintain Availability (as defined in the amended and restated credit 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. This restriction is unchanged in the fifth amended and restated credit agreement effective December 4, 2019. (See Note 13—Long-Term Debt and Bank Facility Borrowings and Note 21—Subsequent Events). The following table shows repurchases under the Repurchase Plan.

 

(in thousands, except per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period

 

Total Number

of Units

Purchased

 

 

Average Price

Paid per Unit

(a)

 

 

Total Number

of Units

Purchased as

Part of

Publicly

Announced

Plans or

Programs

 

 

Maximum Number

of Units that May

Yet Be Purchased

 

 

Fiscal year 2012 to 2018 total

 

 

7,937

 

 

$

7.11

 

 

 

5,493

 

 

 

5,359

 

 

First quarter fiscal year 2019 total

 

 

599

 

 

$

9.57

 

 

 

599

 

 

 

4,760

 

 

Second quarter fiscal year 2019 total

 

 

2,187

 

 

$

9.44

 

 

 

2,187

 

 

 

2,573

 

(b)

Third quarter fiscal year 2019 total

 

 

885

 

 

$

9.68

 

 

 

885

 

 

 

1,688

 

 

July 2019

 

 

147

 

 

$

9.76

 

 

 

147

 

 

 

1,541

 

 

August 2019

 

 

223

 

 

$

9.67

 

 

 

223

 

 

 

2,318

 

(c)

September 2019

 

 

1,362

 

 

$

9.41

 

 

 

1,362

 

 

 

956

 

(d)

Fourth quarter fiscal year 2019 total

 

 

1,732

 

 

$

9.47

 

 

 

1,732

 

 

 

956

 

 

Fiscal year 2019 total

 

 

5,403

 

 

$

9.50

 

 

 

5,403

 

 

 

956

 

 

October 2019

 

 

223

 

 

$

9.44

 

 

 

223

 

 

 

733

 

 

November 2019

 

 

261

 

 

$

9.39

 

 

 

261

 

 

 

472

 

(e)

 

(a)

Amounts include repurchase costs.

(b)

Second quarter of fiscal year 2019 common units repurchased include 1.2 million common units acquired in a private transaction.

(c)

In August 2019, the Board authorized an increase in the number of Common Units available for repurchase from 1.3 million to 2.3 million.

(d)

September 2019 common units repurchased include 1.2 million common units acquired in a private transaction.

(e)

Of the total available for repurchase, approximately 0.4 million are available for repurchase in open market   transactions and 0.1 million are available for repurchase in privately-negotiated transactions.