CHICAGO - Gogo Inc. announced it has completed the sale of its commercial aviation business to a subsidiary of Intelsat S.A. for $400 million in cash. Gogo will continue as a publicly traded company, now singularly focused on leveraging its ATG network and proprietary spectrum to serve the business aviation market.
Immediately following closing, and after Gogo's $53 million semi-annual interest payments in November, Gogo had approximately $460 million in cash-on-hand and net debt of approximately $770 million. As previously disclosed, Gogo intends to undertake a comprehensive refinancing prior to the first call date of its senior secured notes in May 2021 to align its balance sheet with its new business structure, reduce its interest expense, and facilitate the repayment at maturity of Gogo's convertible notes, of which $238 million aggregate principal amount are currently outstanding.
Gogo expects to provide an update on its strategic and long-term financial planning process on its fourth quarter earnings call.
