Gogo prices USD525m senior secured notes offering

Gogo Inc. (Nasdaq: GOGO) has priced USD525 million aggregate principal amount of 12 percent senior secured notes due 2022 to be issued by its direct wholly owned subsidiary, Gogo Intermediate Holdings LLC, and its indirect wholly owned subsidiary, Gogo Finance Co. Inc., the company said.

The offering is expected to close on May 26, 2016, subject to certain closing conditions.

The Notes will be guaranteed on a senior secured basis by Gogo Inc. and all of its existing and future domestic restricted subsidiaries, subject to certain exceptions (the “Guarantors”). The 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.

The Issuer intends to use a portion of the net proceeds from the sale of the Notes to repay its outstanding indebtedness under its existing senior term credit facility and to use the remaining net proceeds for working capital and other general corporate purposes, including potential costs associated with the launch and commercial rollout of Gogo´s next-generation technology solutions.