ROTH Capital Partners acts as Co-Manager
for Gogo Inc. (NASDAQ: GOGO) in its
$925 Million 9.875% Senior Secured Notes Offering

   

For more information please contact:

Investment Banking
David Enzer
Managing Director
(310) 445-5868
denzer@roth.com

Robert Reid
Vice President
(949) 720-7146
rreid@roth.com

Equity Capital Markets
Aaron Gurewitz
Head of Equity
Capital Markets
(949) 720-5703
agurewitz@roth.com
 
Nazan Akdeniz
Senior Vice President
(949) 720-5740
nakdeniz@roth.com
 
Lou Ellis
Senior Vice President
(949) 720-5739
lellis@roth.com

Transaction Information
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 www.gogoair.com. (Source: Company Press Release | 4/15/19)

About ROTH Capital Partners
ROTH Capital Partners, LLC (ROTH), is a relationship-driven investment bank focused on serving emerging growth companies and their investors. As a full-service investment bank, ROTH provides capital raising, M&A advisory, analytical research, trading, market-making services and corporate access. Headquartered in Newport Beach, CA, ROTH is privately-held and employee owned, and maintains offices throughout the U.S. For more information on ROTH, please visit www.roth.com.

Date of Announcement: 5/15/19

The material, information and  facts discussed in this announcement other than the information regarding ROTH Capital Partners, LLC ("ROTH") and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This announcement should not be used as a complete analysis of any companies, securities or topics discussed herein. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this announcement are subject to change without notice. An investment in any security based on this announcement may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, such investments may involve a high degree of risk and may not be suitable for all investors. No part of this announcement may be reproduced in any form without the express written permission of ROTH. Copyright 2019.