Note 3 - Related Party Transactions

3 Months Ended

Aug. 31, 2012

Related Party Transactions Disclosure [Text Block]

3.     RELATED PARTY TRANSACTIONS

In connection with the Acquisition, the Company entered into a management services agreement with TPG Capital pursuant to which TPG Capital received on the closing date an aggregate transaction fee of $18 million in cash, of which $8.0 million was capitalized as deferred financing costs related to the commercial banking services that TPG Capital provided in conjunction with negotiating the debt arrangements. In addition, pursuant to such agreement, and in exchange for on-going consulting and management advisory services that will be provided to the Company, TPG Capital will receive an aggregate annual monitoring fee of $3.0 million that is prepaid quarterly. In the quarter ended August 31, 2012, $1.1 million was recorded for monitoring fees and expenses and is included in general and administrative expenses in the consolidated statement of operations. During the Successor fiscal 2012 period, approximately $0.2 million was recorded for monitoring fees and expenses and is included in general and administrative expenses in the consolidated statement of operations.