Macquarie Infrastructure Company completes Mercury Air Centers purchase

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Macquarie Infrastructure Company (NYSE:MIC), a company which owns, operates and invests in infrastructure businesses in the US, has announced that it has completed its previously disclosed purchase of a network of 24 fixed base operations (FBOs), known as Mercury Air Centers (Mercury), from Allied Capital Corporation, on 9 August 2007.

MIC said the FBOs will be combined with its existing Atlantic Aviation sites and claimed that Atlantic, including the Mercury network, will operate a total of 67 FBOs, representing the largest such network in the US. It plans to rebrand and integrate the FBOs into the company's existing Atlantic Aviation operations over a 12-18 month period.

MIC paid an aggregate USD428.7m, including integration and transaction related costs, for 89% of the equity and 100% of the common stock of Mercury, funded with USD216.7m of equity and a USD192m two year term loan and cash.

The purchase price included USD2m for an option to purchase preferred shares, representing the remaining equity and a USD6.5m dividend on those shares, which the company may opt to exercise during the October 2007 exercise period, resulting in an additional USD28.4m outlay.

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