Gogo greenshoe exercise lifts 3.75% convertibles to $361.94 million

By Toni Weeks

San Luis Obispo, Calif., March 24 – Underwriters for Gogo Inc.’s offering of 3.75% convertible senior notes due 2020 made a second tap on their over-allotment option, adding another $5.94 million of the notes, according to a press release. The issue now stands at $361.94 million.

The company priced $340 million of the five-year convertibles on March 3, and underwriters partially exercised the 30-day, $60 million greenshoe option on March 9, adding $16 million of the notes and lifting the issue to $356 million.

As previously reported, the deal was sold via bookrunners J.P. Morgan Securities LLC and BofA Merrill Lynch.

The Rule 144A notes are non-callable. They have contingent conversion prior to Dec. 1, 2019 under certain circumstances. They will be settled in shares of common stock, cash or a combination.

The securities have takeover protection.

In connection with the offering of notes, Gogo entered into privately negotiated forward stock purchase transactions with initial purchasers of the notes, pursuant to which Gogo agreed to purchase about 7.19 million shares of common stock.

The forward stock purchase transactions are expected to facilitate privately negotiated derivative transactions between the forward counterparties and holders of the notes including swaps.

A portion of net proceeds will be used to fund the cost of repurchasing stock pursuant to the forward stock purchase transactions. Remaining proceeds will be used for working capital and other general corporate purposes, including costs associated with developing next-generation technology and possibly the acquisition of additional spectrum.

Itasca, Ill.-based Gogo provides in-flight internet connectivity and wireless digital entertainment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.