Redeemable Noncontrolling Interests and Equity

9 Months Ended

Sep. 30, 2015

Redeemable Noncontrolling Interests and Equity

12.	Redeemable Noncontrolling Interests and Equity

On August 10, 2015, the Company closed its initial public offering in which 17,900,000 shares of common stock were sold at a public offering price of $14.00 per share, resulting in net proceeds of approximately $221.3 million, after deducting underwriting discounts and commissions and $7.5 million in offering expenses payable by the Company, and excluding the proceeds received by the selling stockholders who sold an aggregate of 417,732 shares of the total 17,900,000 shares sold in the initial public offering.

Immediately prior to closing of the Company’s initial public offering, all 54,840,767 shares of the Company’s outstanding preferred stock were automatically converted into shares of the Company’s common stock. In addition, the Company issued 1,667,683 shares of common stock and executed a letter of intent to issue 1,250,764 warrants subject to contingencies being met to purchase the Company’s common stock to the former Series D and E preferred stockholders as an inducement to convert their shares of convertible preferred stock into shares of common stock immediately prior to the closing of the Company’s initial public offering and to waive any potential anti-dilution adjustments resulting from the issuance of shares in the Company’s common stock in the Company’s initial public offering. The additional shares and warrants resulted in a beneficial conversion feature as a result of the inducement for Series D and E preferred stock and the Company recognized a $24.9 million deemed dividend to Series D and E preferred stockholders at the conversion date. This non-cash charge impacts net loss attributable to our common stockholders and basic and diluted net loss per share applicable to common stockholders. The warrants were issued on September 30, 2015 and are considered freestanding derivatives as disclosed in Note 9, Derivatives.

The changes in total stockholder’s equity, redeemable noncontrolling interests, and noncontrolling interest were as follows (in thousands):


	Redeemable Noncontrolling Interests			Total Stockholders' Equity			Noncontrolling Interests			Total Equity
Balance - January 1, 2015	$	135,948		$	324,864		$	91,755		$	416,619
Exercise of stock options		—			3,188			—			3,188
Stock based compensation		—			10,547			—			10,547
Contributions from noncontrolling interests and redeemable noncontrolling interests		110,984			—			104,739			104,739
Distributions to noncontrolling interests and redeemable noncontrolling interests		(9,906	)		—			(10,802	)		(10,802	)
Issuance of shares due to business acquisition		—			19,148			—			19,148
Inducement shares issued to Series D and E preferred stockholders		—			23,349			—			23,349
Deemed dividend to Series D and E convertible preferred stockholders		—			(24,890	)		—			(24,890	)
Issuance of common stock in connection with the initial public offering, net of issuance costs		—			221,318			—			221,318
Net loss		(60,321	)		(13,223	)		(101,055	)		(114,278	)
Unrealized loss on derivatives		—			(2,695	)		—			(2,695	)
Balance - September 30, 2015	$	176,705		$	561,606		$	84,637		$	646,243

The carrying value of redeemable noncontrolling interests as September 30, 2015 and December 31, 2014 was greater than the redemption value, except for two funds at September 30, 2015 and two funds at December 31, 2014 where the carrying value has been adjusted to the redemption value.