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  "documentTitle": "Premier, Inc. (PINC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2019-09-25 00:00:00",
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  "notes": "Uses a timeline comparison to illustrate the 'lock-in' effect of equity vesting.",
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      "text": "The final tranche of Class B shares is due to vest on Sep 30, 2020 - the day before Premier's seven-year contracts expire (perhaps explaining why these hospitals haven't canceled already).",
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      "text": "Five-Year Opt-Out Decision vs Seven-Year Opt-Out Decision timeline comparison.",
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      "text": "Upon leaving the Premier GPO, member owner hospitals lose their rights to unvested Class B shares. Must exchange unvested shares for 'Redemption Amount' of ~$1.80 per share as of FY19. One seventh of each member owner's Class B shares vests every Sep 30.",
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      "text": "Why aren't analysts or investors showing signs of concern as the opt-out date approaches? Sell-side notes and event transcripts from throughout 2017 show that, as the Oct 2017 opt-out date for Premier's five-year contracts drew near, analysts were in fact very preoccupied with renewal risk.",
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      "text": "1. The Oct 31 date referenced in the proxy filing refers to the exchange date... (i.e. Sep 30) referenced in the LP Agreement is the vesting date.",
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      "text": "PINC S-1: Aug 26, 2013 excerpts regarding Class B common unit exchange terms.",
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      "kind": "title",
      "text": "Investors Lulled To Sleep By The 2017 Renewal Cycle",
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