By Paul A. Harris
Portland, Ore., April 17 – Gogo Inc. priced a $905 million issue of 9 7/8% five-year senior secured notes (B3/CCC+) at 99.512 to yield 10% on Wednesday, according to market sources.
The yield printed at the wide end of the 9¾% to 10% yield talk. Initial guidance was in the high 9% to 10% area.
Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC were the joint bookrunners.
The Chicago-based provider of in-flight connectivity and wireless entertainment services plans to use the proceeds to fully redeem its 12½% senior secured notes and for general corporate purposes, including the full or partial redemption of its 3¾% convertible notes.
| Issuer: | Gogo Intermediate Holdings LLC and Gogo Finance Co. Inc.
|
| Amount: | $905 million
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| Maturity: | May 1, 2024
|
| Securities: | Senior secured notes
|
| Bookrunners: | Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC
|
| Co-managers: | Cowen, William Blair, Raymond James & Associates Inc., Roth Capital, Stifel Nicolaus & Co. Inc. and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 9 7/8%
|
| Price: | 99.512
|
| Yield: | 10%
|
| Call protection: | Two years
|
| Trade date: | April 17
|
| Ratings: | Moody's: B3
|
| S&P: CCC+
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 9¾% to 10%
|
| Marketing: | Roadshow
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