Gogo Inc. (NASDAQ: GOGO) has announced its intention to offer USD 200 million aggregate principal amount of convertible senior notes due 2022, the company said.
The company said USD 13m of the USD 200m aggregate principle amount of notes is being issued directly by Gogo in a separate concurrent private placement to its chief executive officer and J. Wood Capital Advisors LLC, Gogo´s financial advisor.
The notes are being offered and sold to qualified institutional buyers. The notes will be convertible prior to January 15, 2022.
Gogo said it intends to use a portion of the net proceeds from the sale of the notes and the sale of any additional notes pursuant to the exercise by the initial purchasers of their option to purchase additional notes, if any, together with proceeds of the private placement, to repurchase approximately USD 200 million aggregate principal amount of its currently outstanding 3.75% Convertible Senior Notes due 2020. Gogo also intends to reserve the remaining net proceeds from the sale of the notes to fund a portion of future interest payments on the notes.
Gogo is a global provider of broadband connectivity products and services for aviation.