MASG, news.
Mooney Airplane Company Receives $5 Million in Debt Financing
KERRVILLE, Texas--(BUSINESS WIRE)--11/21/2003--Mooney Airplane Company (the "Company"), a wholly owned subsidiary of Mooney Aerospace Group Ltd. (OTCBB:MASG), announced today that it received a $5,000,000 loan guaranteed by the U.S. Department of Agriculture Business and Industry Guaranteed Loan Program from BLX Commercial Capital LLC. The BLX Loan has a term of 25 years; bears interest at 2.00% over the Prime Rate, adjustable quarterly, and is secured by, among other things, the Company's FAA Type Certificate.
According to J. Nelson Happy, the Company's president, "We are very pleased to have obtained this loan guaranteed by the USDA. It demonstrates that we are viewed as credit worthy for a substantial amount of money, and it provides working capital that will help us with our daily operations."
Sam Rothman, Mooney's chairman, observed: "I want to congratulate the company on obtaining this substantial injection of funds. It enabled us to pay off the remaining balance of the debt owed to Congress Financial Corporation that was incurred when the Mooney assets were purchased last year. Since February 2002, we were able to pay off the entire $4,500,000 owed to Congress, and retire the $5,700,000 Limited Recourse Secured Note which would have become due if the company defaulted in its payment to Congress Financial."
Mr. Happy added, "The loan also allowed us to pay off several other obligations due, including prepaying a note for taxes incurred before we bought the Mooney assets. We have less short-term debt now, and we have strengthened our balance sheet considerably. This is an important step in paving the way for stronger financial performance next year."
Mooney Aerospace Group Ltd. is a general-aviation holding company that owns Mooney Airplane Co., located in Kerrville, Texas. Mooney currently sells three models: the highest performing four-place single engine piston powered aircraft, the Bravo DX, and its stable-mates, the highly rated Ovation2 DX and the economical Ovation. Mooney is celebrating its 50th anniversary in Kerrville, Texas, this year, having manufactured more than 10,000 aircraft that have been delivered worldwide. Complete information about Mooney aircraft is available at mooney.com.
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission.
CONTACT:Mooney Airplane Company, Kerrville Terry Freeman, 830-792-2935 tfreeman@mooney.com
SOURCE: Mooney Airplane Company
11/21/2003 07:00 EASTERN |
