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| Preferred Units | Preferred Units The Preferred Units have a face value of $1,000 and rank senior to our common units with respect to distributions and liquidation rights. The holders of the Preferred Units are entitled to receive cumulative quarterly cash distributions equal to $24.375 per Preferred Unit. The change in Preferred Units outstanding was as follows:
Redemption and Conversion Features The Preferred Units are convertible, at the option of the holder, into common units in accordance with the terms of our Second Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”). The conversion rate for the Preferred Units is the quotient of (i) the sum of (a) $1,000, plus (b) any unpaid cash distributions on the applicable Preferred Unit, divided by (ii) $20.0115 for each Preferred Unit. We have the option to redeem all or any portion of the Preferred Units then outstanding, subject to certain minimum redemption threshold amounts, for a redemption price set forth in the Partnership Agreement. On or after April 2, 2028, each holder of the Preferred Units will have the right to require us to redeem all or a portion of their Preferred Units, subject to certain minimum redemption threshold amounts, for a redemption price set forth in the Partnership Agreement, which we may elect to pay up to 50% in common units, subject to certain additional limits. June 2025 Conversion On June 3, 2025, the holders of the Preferred Units elected to convert 100,000 Preferred Units into 4,997,126 common units. These Preferred Units were converted into common units and, for our second-quarter 2025 distribution, the holders will receive the common unit distribution of $0.525 on the 4,997,126 common units in lieu of the Preferred Unit distribution of $24.375 on the converted 100,000 Preferred Units. Cash Distributions We have declared and paid per-unit quarterly cash distributions to the holders of the Preferred Units of record as follows:
Announced Quarterly Distribution On July 17, 2025, we declared a cash distribution of $24.375 per unit on our Preferred Units. The distribution will be paid on August 8, 2025, to the holders of the Preferred Units of record as of the close of business on July 28, 2025. The changes in the Preferred Units’ balance were as follows (in thousands):
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