Note 7 - Series A Preferred Units

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Partners' Capital Notes Disclosure [Text Block]

NOTE

7

—SERIES A PREFERRED UNITS

On

August 31, 2016,

the Company issued

$90

million of Series A preferred units for net proceeds of

$83.7

million after deducting (i) direct and incremental expenses of

$2.2

million, including financial advisory fees, closing costs, legal expenses, and other offering-related expenses and (ii) the exchange and offset of

$4.0

million of principal and accrued but unpaid interest owed by the Company pursuant to outstanding promissory notes payable to

one

of its members.

Each Series A preferred unit was entitled to receive a cumulative cash distribution at an annual rate of

10.5%,

compounded on the last day of each fiscal quarter, as well as tax distributions thereon.

Distributions totaling

$777

thousand were accrued during

2016

to the Series A preferred units’ redemption amount. Cash distributions totaling

$3.9

million were accrued in

2016

and subsequently paid in

2017.

Final cash distributions totaling

$1.5

million were paid in

2017.

T

he Series A preferred units were presented in temporary or mezzanine equity on the consolidated balance sheets until their conversion and were being accreted up to the stated redemption value over a redemption period of

three

years.

In the Reorganization, all shares of the Company

’s then-outstanding convertible Series A Preferred Stock automatically converted into an aggregate of

12,764,426

shares of our common stock.