Quarterly Distribution of Available Cash
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12 Months Ended | ||||||||||||||||||||||||||||||||
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Sep. 30, 2013
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Quarterly Distribution of Available Cash | 3) Quarterly Distribution of Available Cash The Partnership agreement provides that beginning October 1, 2008, minimum quarterly distributions on the common units will start accruing at the rate of $0.0675 per quarter ($0.27 on an annual basis) in accordance with the Partnership agreement. There were no distributions of available cash by us before February 2009. Thereafter, in general, the Partnership intends to distribute to its partners on a quarterly basis, all of its available cash, if any, in the manner described below. “Available cash” generally means, for any of its fiscal quarters, all cash on hand at the end of that quarter, less the amount of cash reserves that are necessary or appropriate in the reasonable discretion of the general partners to:
Available cash will generally be distributed as follows:
The Partnership is obligated to meet certain financial covenants under the amended and restated revolving credit facility. The Partnership must maintain excess availability of at least 17.5% of the revolving commitment then in effect and a fixed charge coverage ratio of 1.15 in order to make any distributions to unitholders. For fiscal 2013, 2012, and 2011, cash distributions declared per common unit were $0.320, $0.310, and $0.305, respectively. For fiscal 2013, 2012, and 2011, $0.2 million, $0.1 million, and $0.1 million, respectively, of incentive distributions were paid to the general partner, exclusive of amounts paid subject to the Management Incentive Plan. |