By Paul A. Harris
Portland, Ore., Sept. 20 – Gogo, Inc. priced a $100 million add-on to the Gogo Intermediate Holdings LLC and Gogo Finance Co. Inc. 12½% senior secured notes due July 1, 2022 (B2/B-) at 113 to yield 7.827% on Wednesday, according to an informed source.
The reoffer price came on top of price talk in the 113 area.
Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC were the joint bookrunners.
The Chicago-based company plans to use the proceeds to accelerate the commercial rollout of its next-generation global satellite solution, 2Ku, as well as for working capital and other general corporate purposes.
Gogo provides in-flight connectivity and wireless entertainment services for the global aviation industry.
| Issuers: | Gogo Intermediate Holdings LLC and Gogo Finance Co. Inc.
|
| Amount: | $100 million
|
| Maturity: | July 1, 2022
|
| Security description: | Add-on to 12½% senior secured notes due July 1, 2022
|
| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC
|
| Coupon: | 12½%
|
| Price: | 113
|
| Yield to worst: | 7.827%
|
| Spread: | 640 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until July 1, 2019, then callable at 106.25
|
| Equity clawback: | 35% at 112.5 until July 1, 2019
|
| Trade date: | Sept. 20
|
| Settlement date: | Sept. 25 with accrued interest
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 113 area
|
| Marketing: | Quick to market
|
| Original issue: | $525 million priced at par on June 9, 2016
|
| Previous add-on: | $65 million priced at 108 to yield 10.234% on Dec. 20, 2016
|
| Fungibility: | Rule 144A add-on notes will be immediately fungible with original notes; Regulation S add-on notes to become fungible with original notes following 40-day cooling period
|
| Total issue size: | $690 million
|
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