BROOMFIELD, Colo., May 1, 2023
/PRNewswire/ -- 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 business.gogoair.com.
Cautionary Note Regarding Forward-Looking
Statements
Certain disclosures in this press release
include forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, without limitation, statements
regarding our business and financial outlook, capital allocation
strategy and plans and other financial and operating information.
When used in this discussion, the words "anticipate," "assume,"
"believe," "budget," "continue," "could," "estimate," "expect,"
"intend," "may," "plan," "potential," "predict," "project,"
"should," "will," "future" and the negative of these or similar
terms and phrases are intended to identify forward-looking
statements in this press release.
Forward-looking statements reflect our current expectations
regarding future events, results or outcomes. These expectations
may or may not be realized. Although we believe the expectations
reflected in the forward-looking statements are reasonable, we can
give you no assurance these expectations will prove to have been
correct. Some of these expectations may be based upon assumptions,
data or judgments that prove to be incorrect. Actual events,
results and outcomes may differ materially from our expectations
due to a variety of known and unknown risks, uncertainties and
other factors. Although it is not possible to identify all of these
risks and factors, they include, among others, the impact of
increases in interest rates; our ability to continue to generate
revenue from the provision of our connectivity services; our
ability to evaluate or pursue strategic opportunities; our ability
to develop and deploy Gogo 5G, Global Broadband or other next
generation technologies; the impact of our indebtedness;
limitations and restrictions in the agreements governing our
current and future indebtedness and our ability to service our
indebtedness; fluctuations in our operating results; and other
events beyond our control that may result in unexpected adverse
operating results.
Additional information concerning these and other factors can
be found under the caption "Risk Factors" in our annual report on
Form 10-K for the year ended December 31,
2022 as filed with the Securities and Exchange Commission on
February 28, 2023.
Any one of these factors or a combination of these factors
could materially affect our financial condition or future results
of operations and could influence whether any forward-looking
statements contained in this report ultimately prove to be
accurate. Our forward-looking statements are not guarantees of
future performance, and you should not place undue reliance on
them. All forward-looking statements speak only as of the date made
and we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor Relations
Contact:
|
Media Relations
Contact:
|
William Davis
|
Dave Mellin
|
+1 917-519-6994
|
+1
720-840-4788
|
wdavis@gogoair.com
|
dmellin@gogoair.com
|
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SOURCE Gogo Inc.