Mercury Air Sells Services Unit, Reducing Its Debt Burden

Los Angeles-based Mercury Air Group Inc. said it had sold its private aircraft services unit to buyout firm Allied Capital Corp. for $76.3 million.

The cash deal, announced Monday, gives Washington-based Allied Capital the chain of 19 Mercury Air Centers, which employ about 600 workers in nine U.S. states, providing maintenance, fueling and other services to private planes.

In California, the service centers are located at airports in Los Angeles, Burbank, Ontario, Santa Barbara, Bakersfield and Fresno.

For Mercury Air Group, the deal greatly eases the company’s debt burden, said Chief Executive Joe Czyzyk.

“For the first time in 50 years this company is long-term-debt free,” Czyzyk said.

The company will focus on its other units, which handle fuel trading and cargo warehousing for commercial airlines and perform administrative work for the U.S. military, he said.

Mercury Air shares Wednesday rose 53 cents to $7 on the American Stock Exchange.

Allied Capital fell 38 cents to $26.19 on the New York Stock Exchange.

-- Josh Friedman