Gogo to pay off $100M in debt early
BROOMFIELD — Gogo Inc. (Nasdaq: GOGO), a provider of broadband connectivity services for the business-aviation market, disclosed Monday that it plans to pay down $100 million from the principal amount it owes on a more than $700 million term loan to reduce its interest payments and solidify its financial position.
The prepayment is expected to reduce the principal of the loan to $612.3 million and save the company $4.5 million in 2023 interest payments.
“As we execute on our strategy and deliver significant free cash flow growth in line with our long-term guidance, Gogo will continue to pursue a balanced capital allocation strategy focused on maintaining adequate liquidity, investing in strategic initiatives like Gogo 5G and our LEO-based Global Broadband product, maintaining an amount of leverage appropriate for the economic environment, and enhancing shareholder value,” Gogo CEO Oakleigh Thorne said in a prepared statement.
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Gogo’s stock was up a little less than 1% during trading Monday to $13.52.
