Series A Convertible Redeemable Preferred Units

6 Months Ended

Jun. 30, 2012

Temporary Equity Disclosure [Abstract]

Series A Convertible Redeemable Preferred Units

Series A Preferred Units

On September 2, 2009, the Partnership issued 4,371,586 Series A Preferred Units. As of June 30, 2012, the Series A Preferred Units were convertible to 4,645,229 common units, and if outstanding, are mandatorily redeemable on September 2, 2029 for $80 million plus all accrued but unpaid distributions and interest thereon. The Series A Preferred Units receive fixed quarterly cash distributions of $0.445 per unit if outstanding on the record dates of the Partnership’s common unit distributions. Holders can elect to convert Series A Preferred Units to common units at any time in accordance with the partnership agreement.

The following table provides a reconciliation of the beginning and ending balances of the Series A Preferred Units for the six months ended June 30, 2012:

	Units	Amount
Outstanding at beginning of period	4,371,586	$	71,144
Accretion to redemption value	—	1,226
Outstanding at end of period	4,371,586	$	72,370	*

__________________

* This amount will be accreted to $80 million plus any accrued but unpaid distributions and interest by deducting amounts from partners’ capital over the remaining periods until the mandatory redemption date of September 2, 2029.