Related Party Loan

12 Months Ended

Dec. 31, 2020

Related Party Transactions [Abstract]

Related Party Loan

Related Party Loan On August 22, 2018, the Company entered into a $38.6 million senior secured promissory note, as amended (the “Related Party Loan”) with a unit holder of Former Parent that bore interest at a stated rate of 12% per year. Interest payments on the Related Party Loan were due quarterly and were based on the division of the Related Party Loan into two tranches: a $22.5 million tranche (“Tranche A”) that required cash interest payments and; a $16.1 million tranche (“Tranche B”) that provided for payments in kind (“PIK”) through the addition of accrued interest to the principal balance.

The balance of the Related Party Loan, presented in the accompanying consolidated balance sheets net of debt discount and issuance costs, is $41.8 million at December 31, 2019. The Company paid the remaining outstanding balance and accrued interest on July 31, 2020 to settle the obligation with respect to the Related Party Loan.

For the years ended December 31, 2020, 2019 and 2018, interest expense related to the Related Party Loan totaled $3.8 million, $7.3 million and $2.6 million, respectively, which consisted of cash interest, PIK interest and amortization of the debt discount.

Related Party Transactions

Accounts Payable-Related Party

The Company had $2.2 million and $5.9 million at December 31, 2020 and 2019, respectively, of accounts payable - related party with the former shareholders of Array and current unit holder of Former Parent. The payables relate to a Federal tax refund related to the pre-acquisition periods, restricted cash at acquisition date which were due to the sellers of Array upon release of the restriction offset by a receivable related to a sales/use tax audit from the pre-acquisition period for which the seller provided the Company with indemnification.

Special Distribution to Former Parent

On October 14, 2020, the Company issued a special distribution of $589 million to Former Parent (the “Special Distribution”).

Consent Fees-Related Party

The Company incurred $2.2 million in consent fees with the former majority shareholder of Array to allow a carryback of post-acquisition net operating losses to pre-acquisition periods under the CARES Act. The consent fee is included in accounts payable – related party and other expense, net in the accompanying consolidated financial statements at December 31, 2020.

Related Party Loans - see Note 9

Contingent Consideration - see Note 13