Gogo announces $100M debt prepayment

Gogo provided notice to its Term Loan lenders of its intent to paydown $100M principal amount of its outstanding Term Loan which is expected to be effectuated on May 3. 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 $612.3M. The transaction will reduce the company’s cash interest by approximately $4.5M in 2023 based on forward SOFR rates and $8.5M 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 $188M in cash-on-hand and an undrawn revolver of $100M.