Gogo plans to prepay $100 million of term loan

By Marisa Wong

Los Angeles, May 1 – Gogo Inc. gave notice to its term loan lenders of its intent to pay down $100 million principal amount of its outstanding term loan, according to a press release.

The prepayment, which is expected to take effect on May 3, will permanently reduce the company’s debt and further strengthen its financial foundation.

As a result of this transaction, the company will reduce its term loan B outstanding principal to $612.3 million.

The transaction will reduce the company’s cash interest by about $4.5 million in 2023 based on forward SOFR and $8.5 million on an annualized basis based on current SOFR.

There are no prepayment penalties associated with the paydown.

As of April 28, the company had roughly $188 million cash on hand and an undrawn revolver of $100 million.

Gogo is a Broomfield, Colo.-based provider of broadband connectivity services for the business aviation market.

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