S&P rates Gogo loans B-

S&P said it assigned its B- issue-level and 3 recovery ratings to Gogo Intermediate Holdings LLC's planned secured credit facility which consists of a $725 million term loan and $100 million revolver. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in a default scenario.

The company plans to use proceeds, along with cash on the balance sheet, to repay $975 million of 9 7/8% secured notes and related transaction fees and expenses.

“Our B- issuer credit rating on parent company Gogo Inc. is unchanged by this transaction because we had already incorporated a mid-2021 refinancing of Gogo's high-coupon secured notes when we raised the rating in December 2020,” S&P said in a press release.

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