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Gogo Inc. (NASDAQ: GOGO), a leading global provider of broadband connectivity products and services for aviation, has closed a private offering to qualified institutional buyers pursuant to Rule 144A of $925 million aggregate principal amount of 9.875% senior secured notes due 2024 to be issued by its direct wholly owned subsidiary, Gogo Intermediate Holdings LLC, and its indirect wholly owned subsidiary, Gogo Finance Co. Inc.
"The enthusiastic response to our offerings allowed us to extend maturities and lower the interest rate on our senior secured debt, without any dilution to shareholders, and we were able to upsize the transaction from $905 million to $925 million based on strong demand," said Oakleigh Thorne, President and CEO of Gogo. "It also highlights Gogo's position as the in-flight internet leader with significant runway as we serve attractive, underpenetrated markets with industry-leading technology."
As a result of the transactions:
Gogo Inc. received funds sufficient to repay the remaining $162 million of convertible notes due March 2020 in connection with our previously announced tender offer;
Gogo Inc. reduced the interest rate on our senior secured debt from 12.5% to 9.875% while extending the maturity by two years to 2024;
Gogo Inc. has greater financing certainty and flexibility, with the option to redeem up to $150 million of the Notes within the first year at 103% of par (plus accrued and unpaid interest) with the proceeds from certain strategic investments;
Gogo Inc. has the flexibilty to enter into a $30 million revolving line of credit with an additional $30 million available based on future performance and leverage covenants; and
Gogo Inc. does not anticipate requiring additional capital based on our current plans and projected cash flow trajectory, except as needed to refinance our debt obligations maturing in 2022 and 2024.
ROTH Capital Partners acted as a co-manager for the offering.
About Gogo Inc.
Gogo is the Inflight Internet Company. We are the leading global provider of broadband connectivity products and services for aviation. We design and source innovative network solutions that connect aircraft to the Internet and develop software and platforms that enable customizable solutions for and by our aviation partners. Once connected, we provide industry leading reliability around the world. Our mission is to help aviation go farther by making planes fly smarter, so our aviation partners perform better and their passengers travel happier.
You can find Gogo's products and services on thousands of aircraft operated by the leading global commercial airlines and thousands of private aircraft, including those of the largest fractional ownership operators. Gogo is headquartered in Chicago, IL with additional facilities in Broomfield, CO and locations across the globe. For more information, please visit
(Source: Company Press
Release | 4/15/19)
About ROTH Capital Partners
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their investors. As a full-service investment bank, ROTH provides
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Date of Announcement: 5/15/19
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