Mercury Air Group Sells Its FBO Business - the Nation's Third Largest Wholly-Owned FBO Chain - to Allied Capital Corporation for
12 Abril 2004 - 9:16PM
PR Newswire (US)
Mercury Air Group Sells Its FBO Business - the Nation's Third
Largest Wholly-Owned FBO Chain - to Allied Capital Corporation for
$76.3 Million Proceeds From Sale to Be Used to Retire Debt &
Provide Additional Working Capital LOS ANGELES, April 12
/PRNewswire-FirstCall/ -- Mercury Air Group announced today that
its shareholders have overwhelmingly approved the sale to Allied
Capital Corporation of the nation's third largest wholly-owned
fixed base operations (FBOs), operating under the name Mercury Air
Centers. Total consideration received by Mercury for this
transaction is $76,300,000, subject to adjustment based on Mercury
Air Centers, Inc.'s net working capital at the time of closing. The
proceeds from the sale will be used to prepay outstanding long term
debt and associated accrued interest of $41,300,000; post cash
collateral in the amount of $16,000,000 in support of currently
outstanding letters of credit; establish an escrow account of
$8,300,000 to be distributed to Mercury, under certain terms and
conditions associated with the FBO lease at the Hartsfield
International Airport in Atlanta; and pay approximately $1,700,000
in transaction costs resulting in surplus cash at the close of the
sale of approximately $9,000,000. "Mercury Air Group opened its
first FBO in Burbank, California in 1982 and grew it into one of
the nation's largest and unsurpassed FBO chains in the nation,"
said Joseph A. Czyzyk, President & CEO of Mercury Air Group,
Inc. "Now, the transaction marks a new turning point for Mercury
Air Group. For the first time in 50 years, Mercury Air Group will
not be burdened with significant debt. After a required transition
period, we will begin to focus on the growth of our remaining
businesses." Mercury Air Centers are located in: Alabama
(Birmingham); California (Bakersfield, Burbank, Fresno, Los
Angeles, Ontario and Santa Barbara); Georgia (Atlanta Hartsfield
and Dekalb Peachtree); Indiana (Fort Wayne); Mississippi (Jackson);
Nevada (Reno/Tahoe); Oklahoma (Tulsa); South Carolina (Charleston
and John's Island); Tennessee (Nashville); Texas (Dallas/Addison
and Corpus Christi); and Virginia (Newport News). About Mercury Air
Group, Inc. Los Angeles-based Mercury Air Group (AMEX:MAX)(PCX: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/. About Allied Capital Allied
Capital is the nation's largest business development company and
provides long-term debt and equity investment capital to support
the expansion of companies in a variety of industries. The company
also participates in the real estate capital markets as an investor
in non-investment grade commercial mortgage-backed securities and
collateralized debt obligation bonds and preferred shares. The
company is headquartered in Washington, DC. For more information,
please visit the web site at http://www.alliedcapital.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 Larry Barrios of TheMWW Group,
+1-213-486-6560, , for Mercury Air Group, Inc. DATASOURCE: Mercury
Air Group, Inc. CONTACT: Larry Barrios of The MWW Group,
+1-213-486-6560, , for Mercury Air Group, Inc. Web site:
http://www.alliedcapital.com/ Web site:
http://www.mercuryairgroup.com/
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