Pacific Sports Buys Majority Interest in Tahoe Air

Pacific Sports Holdings in Westlake Village has purchased a controlling interest in Tahoe Air Corp., a privately held company.

According to Larry Donizetti, chief executive officer of Pacific Sports, his company will own more than 50% of Tahoe Air once the transaction is completed.

Capital Bay Securities, investment bankers for Pacific Sports Holdings, has arranged for $5 million in financing for the company to acquire all the Series A Preferred Shares of Tahoe Air. The acquisition will give the company a 50.001% stake in the airline, which is based in Zephyr Cove, Nev., and serves the Lake Tahoe area.

To facilitate the transaction, several owners, directors and an affiliated shareholder of Pacific Sports have agreed to tender 6.5 million shares of common stock from their personal holdings. As part of the agreement, Pacific Sports was granted warrants that give the company the option to buy an additional 25% of the airline at the same price.

“It’s a tremendous vote of confidence in Tahoe Air management that the officers, directors and majority shareholders of Pacific Sports Holdings have agreed to tender half of their personal holdings,” said David Jackson, Pacific Sports chairman and president.

Donizetti said the acquisition will provide Pacific Sports significant access to recreation, leisure and resort markets.

“Lake Tahoe’s tourist industry is experiencing tremendous growth, and the varieties of activity available, in both summer and winter, offer profit potential which will benefit our entire company,” he said.