Related Party Transactions

9 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

(11) RELATED PARTY TRANSACTIONS

On June 13, 2014, the Company completed a spin-off of OVS to CII (see Note 7 – Equity). CII holds approximately 2.4% of the Company’s outstanding common stock at March 31, 2016. The Company continues to have ongoing contractual relationships with OVS, whereby the Company provides OVS and its subsidiaries with bandwidth capacity and OVS provides the Company and its subsidiaries with voice services. The contractual relationships are based on agreements that were entered into at estimated market rates. Subsequent to the spin-off date, transactions with OVS are included in the Company’s results of operations.

The following table represents the revenue and expense transactions the Company recorded with OVS for the periods presented:

	Three months ended  March 31,				Nine months ended March 31,
	2016		2015		2016		2015
	(in millions)
Revenues	$	1.7	$	1.8	$	5.0	$	5.2
Operating costs	$	0.2	$	(0.1)	$	0.4	$	(0.8)

As of March 31, 2016 and June 30, 2015, the Company had outstanding balances of $0.1 million and $0.6 million, respectively, due from OVS.

Dan Caruso, the Company’s Chief Executive Officer and Chairman of the Board, is a party to an aircraft charter (or membership) agreement through his affiliate, Bear Equity LLC, for business and personal travel.  Under the terms of the charter agreement, all fees for the use of the aircraft are effectively variable in nature. For his business travel on behalf of the Company, Mr. Caruso is reimbursed for his use of the aircraft subject to quarterly and annual maximum reimbursement thresholds approved by the Company's Nominating and Governance Committee. During the three and nine months ended March 31, 2016 the Company reimbursed Mr. Caruso $0.1 million and $0.4 million, respectively, and during the three and nine months ended March 31, 2015, reimbursed $0.1 million and $0.7 million, respectively, for his business use of the aircraft.

On June 28, 2012, Matt Erickson, the President and COO of Global Sales & Customer Success, purchased $0.6 million in aggregate principal amount of 2020 Unsecured Notes at the offering price for such notes. Mr. Erickson qualifies as an “accredited investor” (as defined in Rule 501 under the Securities Act), and this purchase was on terms available to other investors. On December 15, 2014, in connection with the Partial Notes Redemption, approximately $0.2 million of Mr. Erickson’s notes were redeemed, and as of March 31, 2016, the principal amount of 2020 Unsecured Notes held by Mr. Erickson was $0.4 million.