Transaction with the Newport Funds

12 Months Ended

Feb. 29, 2016

Related Party Transactions [Abstract]

Transaction with the Newport Funds

Transactions with the Newport Funds

On January 26, 2016, the Company, through AcquisitionCo, made a loan to NGOF I-A. The loan was in the principal amount of $4.9 million. The principal amount of the loan was due and payable 180 days following the date of the loan. Interest on the unpaid principal amount outstanding from time to time was payable at a rate of 5% per annum. NGOF I-A could have, without premium or penalty, prepaid all or any portion of the outstanding principal balance, provided the prepayment was accompanied by payment of the accrued interest on the amount of principal prepaid, calculated to the date of the prepayment. The promissory note evidencing the loan, which could not have been assigned or transferred by the Company without the prior written consent of NGOF I-A, contained customary default provisions. AcquisitionCo funded the loan by simultaneously borrowing $4.9 million from Credit Suisse, which the Company repaid on February 5, 2016 with proceeds from the sale of marketable securities. On April 1, 2016, the Company and the Newport Funds agreed to distribute the $4.9 million note receivable to the Company's members.

In 2007, NGOF received on behalf of (but did not remit to) the Company $5,118,172 of interest and $61,600 of preferred dividends related to investments of the Company which are reflected in the accompanying balance sheets as due from the Newport Funds. In connection with the January 7, 2016 sale by NGOF of its InvestCo ownership interest to NGOF I-A, the $5,179,792 due from the Newport Funds was reclassified as a distribution to NGOF.

At February 29, 2016 and February 28, 2015, the Company owed $0.1 million and $3.7 million, respectively, to the Newport Funds for expenses paid on the Company’s behalf since inception of the Company. In connection with the sale by NGOF to NGOF I-A of its InvestCo ownership interest, the Company repaid approximately $3.8 million to NGOF. The Newport Funds have agreed to waive demand of payment of the amounts advanced to the Company through March 1, 2018, and, accordingly, the liability is also reflected as long-term.