Quarterly report pursuant to Section 13 or 15(d)

Equity

v3.5.0.2
Equity
 9 Months Ended
Sep. 30, 2016
Equity [Abstract]  
Equity

11. Equity

Dividends and Distributions

Our board of directors declared the following dividends in 2015 and 2016:

 

Announced Date

    Record Date    Pay Date    Amount per
share		  

3/17/15

    3/30/15    4/9/15    $ 0.26   

6/16/15

    6/30/15    7/9/15    $ 0.26   

9/16/15

    9/30/15    10/8/15    $ 0.26   

12/15/15

    12/30/15    1/7/16    $ 0.30   

3/15/16

    3/30/16    4/7/16    $ 0.30   

6/07/16

    7/06/16    7/14/16    $ 0.30   

9/15/16

    10/05/16    10/13/16    $ 0.30   

We have an effective shelf registration statement registering the potential offer and sale of up to $500 million of any combination of our common stock, preferred stock, depositary shares and warrants and rights (collectively referred to as the “securities”). We may offer the securities directly, through agents, or to or through underwriters by means of ordinary brokers’ transactions on the NYSE or otherwise at market prices prevailing at the time of sale or at negotiated prices and may include “at the market” (“ATM”) offerings or sales “at the market,” to or through a market maker or into an existing trading market on an exchange or otherwise. We completed the following public offerings and ATM offerings of our common stock in 2015 and 2016:

 

Closing Date

    Common Stock
Offerings		    Shares Issued1      Price
Per Share 		     Net Proceeds 2  
          (amounts in millions, except per share amounts)  

5/4/15

    Public Offering      4.60       $ 18.50 3     $ 82   

10/19/15

    Public Offering      5.75       $ 18.00 3     $ 99   

6/21/16

    Public Offering      4.60       $ 19.78 4     $ 91   

5/9/16 to 6/30/16

    ATM      0.065       $ 20.31 5     $ 1   

 

1 Includes shares issued in connection with the exercise of the underwriters’ option to purchase additional shares.
2 Net proceeds from the offerings is shown after deducting underwriting discounts, commissions and other offering costs.
3  Represents the public offering price per share.
4  Represents the price per share at which the underwriters in our public offerings purchased shares from our company.
5  Represents the average price per share at which investors in our ATM offerings purchased shares from our company.

Awards of Shares of Restricted Common Stock under our 2013 Plan

We recognize equity-based compensation expense as described in Note 2 and have issued both awards with service conditions and awards with both service and performance conditions. During the nine months ended September 30, 2016, our board of directors awarded employees and directors 367,753 shares of restricted common stock that vest in 2016 to 2019 and 291,000 shares of restricted common stock to certain employees that vest upon the achievement of certain performance targets. As of September 30, 2016, we have concluded that it is probable that the performance conditions will be met.

For the three and nine months ended September 30, 2016, we recorded $3 million and $7 million, respectively, of equity-based compensation expense as compared to $3 million and $8 million, respectively, for the three and nine months ended September 30, 2015. The total unrecognized compensation expense related to awards of shares of restricted common stock was approximately $12 million as of September 30, 2016, that is expected to be recognized over a weighted-average term of approximately two years. As part of the implementation of ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” we will recognize forfeitures when they occur as opposed to the previous requirement under which we reduced equity-based compensation expense for an estimated forfeiture rate of up to 5%. Expenses recognized year to date, and the adjustment to retained earnings for the equity-based compensation expense previously recognized, from the adoption of this change was approximately $1 million.

A summary of the unvested shares of restricted common stock that have been issued is as follows:

 

     Restricted
Shares of
Common Stock		      Weighted Average
Share Price		      Value
(in millions) 		 

Balance — December 31, 2014

      964,820       $ 13.41       $ 12.9   

Granted

      586,648         17.29         10.2   

Vested

      (285,289 )       13.61         (3.9 ) 

Forfeited

      (18,110 )       15.54         (0.3 ) 
  

 

 

     

 

 

     

 

 

  

Balance — December 31, 2015

      1,248,069       $ 15.16       $ 18.9   

Granted

      658,753         18.62         12.3   

Vested

      (572,174 )       13.79         (7.9 ) 

Forfeited

      (11,188 )       17.25         (0.2 ) 
  

 

 

     

 

 

     

 

 

  

Ending Balance — September 30, 2016

      1,323,460       $ 17.46       $ 23.1