Allied Capital Completes Purchase of Mercury Air Centers, Inc.Business Editors WASHINGTON--(BUSINESS WIRE)--April 12, 2004 Allied Capital Corporation (NYSE NYSE See: New York Stock Exchange :ALD ALD abbr. adrenoleukodystrophy ALD, n.pr See adrenoleukodystrophy. ALD aldolase. ) today announced that it has completed the purchase of Mercury Air Centers, Inc., a leading operator of fixed base operations, from Mercury Air Group, Inc. (AMEX/PCX:MAX). The transaction was originally announced on October 28, 2003, and was approved by the shareholders of Mercury Air Group, Inc., earlier today. Upon closing, Allied Capital's investment in Mercury Air Centers, Inc. totaled approximately $81 million including closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, , subject to adjustment. In addition, Allied Capital committed to fund $10 million in senior subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". for future working capital and construction commitments. In connection with the transaction, Mercury Air Group, Inc. repaid its $24 million subordinated debt obligation to Allied Capital. About Allied Capital Allied Capital is the nation's largest business development company and provides long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and equity investment capital to 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 Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, bonds and preferred shares. The company is headquartered in Washington, DC. For more information, please visit the web site at www.alliedcapital.com, call Allied Capital Investor Relations toll-free at 888-818-5298, or e-mail us at ir@alliedcapital.com. About Mercury Air Centers, Inc. Mercury Air Centers, Inc., based in Atlanta, Georgia, provides fixed base operations at 19 airports throughout the United States. These services include fuel sales, into-plane services, ground support services, aircraft hangar and tie-down facilities, and maintenance at certain locations for commercial, private, general aviation, and military aircraft. Forward-Looking Statements The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, and these factors are enumerated This term is often used in law as equivalent to mentioned specifically, designated, or expressly named or granted; as in speaking of enumerated governmental powers, items of property, or articles in a tariff schedule. in the company's periodic filings with the Securities and Exchange Commission. |
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