Mercury Air (AMEX:MAX)
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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/