Gogo repays $100m of debt
May 2, 2023
By Chris Forrester
It seems In-Flight Communications (IFC) business Gogo is emerging from the pandemic strongly. The company has announced it will repay $100 million (€91.1m) of debt on May 3rd – earlier than required.
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 and $8.5 million on an annualised basis based on current rates. There are no prepayment penalties associated with this transaction. As of April 28th 2023, the Company has approximately $188 million in cash-on-hand and an undrawn revolver of $100 million.
Oakleigh Thorne, CEO at Gogo, commented: “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.”
As of December 31st 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.