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Common Unit Repurchase Plans and Retirement
 6 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Common Unit Repurchase Plans and Retirement

3) Common Unit Repurchase and Retirement

In July 2012, the Board adopted a plan to repurchase certain of the Company’s Common Units (“Plan III”).  Prior to February 2018, the Company had repurchased approximately 2.7 million Common Units under Plan III.  In February 2018, the Board authorized an increase of the number of Common Units that are available for the Company to repurchase from 2.2 million to a total of 5.5 million, of which, 3.0 million were available for repurchase in open market transactions and 2.5 million were available for repurchase in privately-negotiated transactions. The Company repurchased approximately 1.3 million Common Units in the second fiscal quarter of 2018, and 4.2 million total Common Units remain available for repurchase at the end of the quarter.  There is no guarantee of the exact number of units that will be purchased under the program and the Company may discontinue purchases at any time. The program does not have a time limit. The Board may also approve additional purchases of units from time to time in private transactions. The Company’s repurchase activities take into account SEC safe harbor rules and guidance for issuer repurchases. All of the Common Units purchased in the repurchase program will be retired.

Under the Company’s third amended and restated credit agreement dated July 30, 2015, in order to repurchase Common Units we must maintain Availability (as defined in the amended and restated credit agreement) of $45 million, 15.0% of the facility size of $300 million (assuming the non-seasonal aggregate commitment is in effect) on a historical pro forma and forward-looking basis, and a fixed charge coverage ratio of not less than 1.15 measured as of the date of repurchase. The Company was in compliance with this covenant as of March 31, 2018.

The following table shows repurchases under Plan III.

 

(in thousands, except per unit amounts)

Period

 

Total Number of

Units Purchased

 

 

Average Price

Paid per Unit (a)

 

 

Total Number of

Units Purchased as Part of Publicly Announced Plans or Programs

 

 

Maximum Number

of Units that May

Yet Be Purchased

 

 

Plan III - Fiscal year 2017 total

 

 

-

 

 

$

-

 

 

 

-

 

 

 

2,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan III - First quarter fiscal year 2018 total

 

 

-

 

 

$

-

 

 

 

-

 

 

 

2,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan III - January 2018

 

 

-

 

 

$

-

 

 

 

-

 

 

 

2,207

 

 

Plan III - February 2018

 

 

258

 

 

$

9.48

 

 

 

258

 

 

 

5,242

 

(b)

Plan III - March 2018

 

 

1,023

 

 

$

9.36

 

 

 

1,023

 

 

 

4,219

 

 

Plan III - Second quarter fiscal year 2018 total

 

 

1,281

 

 

$

9.38

 

 

 

1,281

 

 

 

4,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan III - April 2018 (c)

 

 

626

 

 

$

9.71

 

 

 

626

 

 

 

3,593

 

 

 

(a)

Amount includes repurchase costs.

(b)

In February 2018, the Board authorized an increase in the number of Common Units available for repurchase from 2.2 million to 5.5 million.

(c)

See Note 14 - Subsequent Events