Gogo Shares Are Trading Higher On Convertible Debt Exchange And Refinancing Procedure
Private equity firm GTCR will convert $105.7 million Gogo Inc’s (NASDAQ: GOGO) 6% Convertible Senior Notes due 2022 into 19.1 million Gogo’s shares gaining a 28.6% stake ownership in Gogo.
Gogo will be left with 111.1 million shares and $1.08 billion in debt under the arrangement after a debt reduction of $135 million from Dec. 31, 2020. Gogo held $455 million in cash as of Mar. 31, 2021.
Gogo also announced the refinancing of its $975 million outstanding 2024 Senior Secured Notes and $30 million undrawn asset-based facilities.
Additionally, Gogo appointed GTCR MD Mark Anderson to its board on Mar. 30.
The above initiatives will reduce Gogo’s leverage ratio and interest expense, leading to greater financial flexibility as per Gogo CEO Oakleigh Thorne.
Gogo stock has gained 356% in the last year.
Price action: GOGO shares are trading higher by 3.57% at $10.01 on the last check Thursday.
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