GoGo markets $500 million six-year secured notes on Thursday investor call; whisper is 12½%

By Paul A. Harris

Portland, Ore., June 9 – Gogo Intermediate Holdings LLC was scheduled to shop a $500 million offering of senior secured notes due 2022 on a late-Thursday morning conference call, according to market sources.

Initial guidance has the deal coming with a yield in the 12½% context, according to a trader.

If it comes with that yield, it would price 50 basis points behind the Gogo Intermediate Holdings 12% senior secured notes due June 1, 2022, which the company sold in a $525 million issue less than three weeks ago, on May 23.

For the new deal, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch are the joint bookrunners.

Evercore and UBS Investment Bank are the co-managers.

The Rule 144A for life notes come with three years of call protection.

The Chicago-based provider of in-flight connectivity and wireless entertainment solutions for the global aviation industry plans to use the proceeds to pay off its amended and restated senior term facility and for working capital and other general corporate purposes, including potential costs associated with the launch and commercial rollout of next-generation technology.

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