Mercury Air Group, Inc. Announces Contingent One-time Special Dividend of $17.5 Million With Record Date of October 18
06 Outubro 2004 - 8:57PM
PR Newswire (US)
Mercury Air Group, Inc. Announces Contingent One-time Special
Dividend of $17.5 Million With Record Date of October 18 LOS
ANGELES, Oct. 6 /PRNewswire-FirstCall/ -- Mercury Air Group, Inc.
(AMEX:MAX) today announced that its Board of Directors has declared
a one- time special cash dividend totaling $17.5 million, that
would be payable on a pro rata basis to holders of record of its
common stock as of the close of business on October 18, 2004. The
dividend would be paid on November 5, 2004, subject to satisfactory
amendment of the loan agreement with its lender. The eventual
amount payable per share of common stock is expected to be in the
range of $5.45 to $5.60 after the mandatory dividend payments on
its outstanding Series A 8% Cumulative Convertible Preferred Stock
(the "Preferred Stock"), of approximately $69,000 as of the
dividend payment date and the expected exercise of conversion
rights by holders of certain outstanding warrants and options for
the Company's common stock on or prior to the October 18 record
date. The Company's lender has consented to allow the Company to
pay a cash dividend in the amount of $17.5 million, but the consent
is subject to the execution of an amendment to the loan agreement
prior to the payment of the dividend. The Company believes the
proposed changes will be agreed to and finalized but cannot assure
such amendment will be successfully consummated. If the Company and
its lender do not agree to the amended terms and conditions of the
loan agreement, the Company reserves the right to cancel or delay
the payment of the dividend, or to delay the record date for
payment. "After a lengthy review of our strategic goals in light of
the sale of Mercury Air Centers in April 2004, the Board of
Directors determined that the best return of value to our
stockholders was through this special dividend," said Joseph A.
Czyzyk, President and CEO of Mercury Air Group. "The Board believes
that cash flow from our operations, together with availability
under our credit line, will provide adequate capital to meet the
Company's operating needs and fund organic growth. We believe that
the contingency of satisfactory documentation can be satisfied
prior to the planned payment date." About Mercury Air Group Los
Angeles-based Mercury Air Group (AMEX:MAX) provides aviation
petroleum products, air cargo services and transportation, and
support services for international and domestic commercial
airlines, general and government aircraft and specialized contract
services for the United States government. Mercury Air Group
operates three business segments worldwide: MercFuel, Inc., Maytag
Aircraft Corporation and Mercury Air Cargo, Inc. For more
information, please visit http://www.mercuryairgroup.com/.
Statements contained in this news release which are not historical
facts are forward looking statements as that item is defined in the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from estimated
results. Such risks and uncertainties are detailed in the Company's
filings with the Securities and Exchange Commission. For further
information please contact: Joseph Czyzyk of Mercury Air Group,
Inc., +1-310-827-2737; or Investor Relations, David Herbst or Larry
Barrios, both of The MWW Group, +1-213-486-6560, for Mercury Air
Group, Inc. DATASOURCE: Mercury Air Group, Inc. CONTACT: Joseph
Czyzyk of Mercury Air Group, Inc., +1-310-827-2737; or Investor
Relations, David Herbst or Larry Barrios, both of The MWW Group,
+1-213-486-6560, for Mercury Air Group, Inc. Web site:
http://www.mercuryairgroup.com/
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