Common Unit Repurchase Plans and Retirement

9 Months Ended

Jun. 30, 2019

Equity [Abstract]

Common Unit Repurchase Plans and Retirement

4) Common Unit Repurchase and Retirement

In July 2012, the Board adopted a plan to repurchase certain of the Company’s Common Units that was amended in fiscal 2018 (the “Repurchase Plan”).  Under the Repurchase Plan, as amended, the Board authorized the repurchase of 10.9 million Common Units, of which, 8.4 million were available for the Company to repurchase in open market transactions, and 2.5 million were available for repurchase in privately-negotiated transactions.  As of the end of the third fiscal quarter of 2019, the Company repurchased approximately 8.0 million Common Units in open market transactions and 1.2 million Common Units in privately-negotiated transactions under the Repurchase Plan.  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 Company’s fourth amended and restated credit agreement dated July 2, 2018, in order to repurchase Common Units we must maintain Availability (as defined in the fourth 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.  The Company was in compliance with this covenant as of June 30, 2019.

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  (b)		2,187	$	9.44		2,187		2,573
April 2019		222	$	9.67		222		2,351
May 2019		552	$	9.67		552		1,799
June 2019		111	$	9.78		111		1,688
Third quarter fiscal year 2019 total		885	$	9.68		885		1,688
July 1, 2019 through July 30, 2019		136	$	9.76		136		1,552	(c)

(a) Amount includes repurchase costs.

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

(c) Of the total available for repurchase, approximately 0.3 million are available for repurchase in open market transactions and 1.3 million are available for repurchase in privately-negotiated transactions.