S&P switches Gogo watch to positive

S&P said it revised the CreditWatch implications for Gogo Inc. to positive from negative. S&P put the company’s ratings on CreditWatch on March 13.

Gogo entered into an agreement to sell its commercial aviation business to Intelsat for $400 million in cash.

“We believe Gogo will utilize the proceeds primarily to reduce leverage, likely to exit 2021 with leverage of less than 7.5x and an ability to continue deleveraging through positive cash flow generation and continued EBITDA growth as it right sizes its corporate cost structure and private air travel recovers from the Covid-19 pandemic,” S&P said in a press release.

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