Gogo Closes $30 Million Revolving Credit Facility to Strengthen its Balance Sheet and Liquidity Position
The Company reaffirms its guidance for a Free Cash Flow improvement of at least $100 million in 2019 and continues to expect meaningfully positive annual Free Cash Flow in 2021
Chicago, Il | August 27, 2019– Gogo (NASDAQ: GOGO), the leading global provider of broadband connectivity products and services for aviation, today announced the completion of its previously disclosed $30 million asset-based revolving credit facility.
“The closing of our $30 million revolving credit facility provides additional buffer capital and represents another important step in the strengthening of our balance sheet and liquidity without equity dilution,” said Oakleigh Thorne, President and CEO of Gogo. “We continue to expect Free Cash Flow improvement of at least $100 million in 2019 versus 2018 and meaningfully positive annual Free Cash Flow in 2021.”
Following the closing of this credit facility, the Company expects to maintain a minimum total liquidity balance of approximately $100 million. The Company does not anticipate requiring additional capital based on its current plans and projected cash flow trajectory, except as needed to refinance its debt obligations maturing in 2022 and 2024.
The 2009 Aircraft Interiors Expo was extremely productive for SIE. Structural Integrity Engineering (SIE) has long experience with antenna installation design and certification on commercial, business and military aircraft. So at Hamburg, it was gratifying to see the broadband connectivity market reaching a level of growth and maturity where installations are going to ramp up and the broadband dream can be realized.”