BROOMFIELD, Colo. – Gogo Inc. (NASDAQ: GOGO), the world’s largest provider of broadband connectivity services for the business aviation market, provided notice to its Term Loan lenders of its intent to paydown $100 million principal amount of its outstanding Term Loan which is expected to be effectuated on May 3, 2023. The prepayment will permanently reduce Gogo’s debt to further strengthen the Company’s financial foundation.
As a result of this transaction, Gogo will reduce its Term Loan B outstanding principal to $612.3 million. The transaction will reduce the Company’s cash interest by approximately $4.5 million in 2023 based on forward SOFR rates and $8.5 million on an annualized basis based on current SOFR rates. There are no prepayment penalties associated with this transaction. As of April 28, 2023, the Company has approximately $188 million in cash-on-hand and an undrawn revolver of $100 million.
Oakleigh Thorne, Chairman and CEO said, “As we execute on our strategy and deliver significant free cash flow growth in line with our long-term guidance, Gogo will continue to pursue a balanced capital allocation strategy focused on maintaining adequate liquidity, investing in strategic initiatives like Gogo 5G and our LEO-based Global Broadband product, maintaining an amount of leverage appropriate for the economic environment, and enhancing shareholder value.”
About Gogo
Gogo is the world's largest provider of broadband connectivity services for the business aviation market. We offer a customizable suite of smart cabin systems for highly integrated connectivity, inflight entertainment and voice solutions. Gogo's products and services are installed on thousands of business aircraft of all sizes and mission types from turboprops to the largest global jets, and are utilized by the largest fractional ownership operators, charter operators, corporate flight departments and individuals.
As of December 31, 2022, Gogo reported 3,279 business aircraft flying with Gogo’s AVANCE L5 or L3 system installed, 6,935 aircraft flying with its ATG systems onboard, and 4,475 aircraft with narrowband satellite connectivity installed. Connect with us at www.gogoair.com.
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