The Tranche A Term Loan matures April 28, 2015 and earns interest payable monthly in cash at an annual rate of the greater of 8% or LIBOR + 4%. The Tranche B Term Loan matures October 28, 2015 and initially earns interest payable-in-kind at an annual rate of the greater of 15% or LIBOR + 11%. Beginning in January 2015, interest on the Tranche B Term Loan is payable monthly in cash at an annual rate of the greater of 13% or LIBOR + 9%. Borrowings under the Tranche B Term Loan will be used to execute development plans at Spirit's oil and gas properties and to satisfy critical vendor payables. The current balance outstanding under the Tranche B Term Loan is approximately $1.4 million.The Preferred Units represent a preferred interest on 100% of any equity distributions from Spirit until certain hurdles are met, after which Spirit management would participate in 25% of any such distributions. Pallas Contour Restructuring Effective December 31, 2012, the Company restructured its Senior Secured Term Loan with Pallas Contour Mining, LLC ("Contour"). Under this arrangement, Contour conveyed certain assets, business, payables and other obligations related to an underperforming surface mine operation of Contour to certain former owners of Contour, in exchange for their 80% equity interest in Contour. The remaining 20% equity interest is owned by Contour's founder and president of its highwall coal mining business. The Company restructured the Contour Term Loan, increasing the borrowing capacity from $7.6 million to $11.0 million. Interest under the restructured Term Loan is payable monthly in cash at an annual rate of 12%, and the Term Loan matures on October 14, 2015. New borrowings under the Term Loan will primarily be used for working capital purposes for Contour's core highwall mining business. The current balance outstanding under the Contour Term Loan is approximately $9.1 million.