Related Party Transactions
|3 Months Ended|
Mar. 31, 2022
|Related Party Transactions [Abstract]|
|Related Party Transactions||
NOTE 17 – RELATED PARTY TRANSACTIONS
Crestview III USWS TE, LLC and Crestview III USWS, L.P. and its affiliates (collectively, “Crestview Partners”) are part of an affiliate group which have an ownership interest in the Company of greater than 10% and is entitled to designate for nomination by the Company for election two directors to serve on the Company’s Board of Directors.
David Matlin is a member of the Company’s Board of Directors.
Convertible Senior Notes
On June 24, 2021, Crestview Partners purchased $40.0 million of Convertible Senior Notes that are convertible into shares of the Company’s Class A common stock for consideration of $20.0 million in cash and in exchange for 15,588 shares of the Company’s Series A preferred stock. As of March 31, 2022 and December 31, 2021, the Convertible Senior Notes held by Crestview Partners have a carrying value of $37.7 million and $35.9 million, respectively, which is included in convertible senior notes on the condensed consolidated balance sheets. See “Note 10 - Convertible Senior Notes” for additional disclosure regarding the Cash Notes and Exchange Notes.
Term C Loan and Term C Loan Warrants
On February 28, 2022, Crestview Partners contributed $10.0 million in Term C Loans to the Company. As of March 31, 2022, the carrying value of the Term C Loan owed to Crestview Partners was $6.7 million, which is included in long-term debt on the condensed consolidated balance sheet. In connection with the entry into the Term C Loan, Crestview received 6,976,744 February 2022 Warrants.
On March 1, 2022, David Matlin contributed $1.0 million in Term C Loans to the Company. As of March 31, 2022, the carrying value of the Term C Loan owed to David Matlin was $0.7 million, which is included in long-term debt on the condensed consolidated balance sheet. In connection with the entry into the Term C Loan, David Matlin received 697,674 March 2022 Warrants.
See “Note 9 - Warrants” and “Note 11 - Debt” for additional disclosure regarding the Term C Loan and Term C Loan Warrants.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef