Gogo Launches USD 100m Senior Secured Notes Offering

Gogo Inc. (NASDAQ: GOGO) has commenced a private offering of USD 100 million aggregate principal amount of additional 12.500% senior secured notes due 2022 (the “Additional Notes”) to be issued by its direct wholly owned subsidiary, Gogo Intermediate Holdings LLC (the “Issuer”), and its indirect wholly owned subsidiary, Gogo Finance Co. Inc. (the “Co-Issuer” and, together with the Issuer, the “Issuers”), the company said.

The Issuers´ 12.500% Senior Secured Notes due 2022 were previously issued in an aggregate principal amount of USD 525 million on June 14, 2016 and in an aggregate principal amount of USD 65 million on January 3, 2017 (collectively, the “Previously Issued Notes”).

The Additional Notes and the Previously Issued Notes will be treated as the same series for all purposes under the indenture and collateral agreements, each as amended and supplemented, that govern the Initial Notes and will govern the Additional Notes. The Additional Notes will be guaranteed on a senior secured basis by Gogo and all of the existing and future domestic restricted subsidiaries of the Issuer (other than the Co-Issuer), subject to certain exceptions (the “Guarantors”).

The Additional Notes and the related guarantees will be secured by first priority liens on substantially all of the Issuers´ and the Guarantors´ assets, including pledged equity interests of the Issuers and the Guarantors. There can be no assurance that the proposed offering of Additional Notes will be completed.

The Issuer intends to use the net proceeds from the sale of the Additional Notes to accelerate the commercial rollout of Gogo´s next-generation global satellite solution, 2Ku, for working capital and other general corporate purposes.