Gogo Closes $135 Million Credit Facility Finance Deal to Help Fund International Operations
ITASCA, Ill., June 25, 2012 /PRNewswire/ -- Gogo, a leader of in-flight connectivity and a pioneer in wireless in-flight digital entertainment solutions, announced today that it has closed a $135 million credit facility through Morgan Stanley and J.P Morgan. Gogo intends to use the debt financing to fund costs associated with its international expansion plans as well as other general corporate purposes.
"Securing this latest round of financing is an important step in funding our international operations and helps strengthen our overall financial position," said Michael Small, Gogo's president and CEO. "We recently announced a partnership deal with equipment provider AeroSat and memorandums of understanding to partner with satellite companies SES and Inmarsat that will allow us to offer commercial airlines Ku and Ka-band satellite solutions globally in the near future. Securing this credit facility will help fund those operations."
Gogo recently announced a partnership with equipment provider AeroSat to deliver the satellite antenna, radome, antenna control and modem unit and high power transceiver. In addition to an equipment partnership with AeroSat, Gogo recently announced it has entered into a memorandum of understanding to partner with satellite operator SES that will allow Gogo to connect passengers over the U.S., Atlantic Ocean and Europe with a Ku-band system on commercial aircraft as early as the fourth quarter of 2012.
Gogo also recently announced that it has entered into a memorandum of understanding to be one of two global service providers of Inmarsat's Global Xpress™ Ka-satellite service. Working with Inmarsat, Gogo expects to begin testing of the Global Xpress Ka-aeronautical services after the launch of the first of the three Inmarsat-5 satellites, which is scheduled for mid-2013. Gogo expects to offer Global Xpress Ka-satellite service after the launch of all three I-5 satellites starting in late 2014 or early 2015.
"When finalized, these partnerships will allow Gogo to offer our airline partners a wide range of technology solutions," added Small. "Whether it's by using our exclusive air to ground and ATG-4 technologies, Ku-satellite or, in the near future, Inmarsat's Global Xpress Ka-satellite technologies; we believe we will be uniquely positioned to offer airlines a range of global connectivity service options."
Gogo is fast becoming everyone's favorite part of flying. By allowing travelers to get online, in air, Gogo keeps them connected to life. Using the Gogo exclusive network and services, passengers with laptops and other Wi-Fi enabled devices can get online on more than 1,500 commercial aircraft including all domestic AirTran Airways and Virgin America flights, all domestic mainline Delta Air Lines flights and select Air Canada, Alaska Airlines, American Airlines, Frontier Airlines, United Airlines, and US Airways flights.
Back on the ground, Gogo's 400+ employees in Itasca, IL, Broomfield, CO and London are continually redefining flying as a productive, socially connected, and all-around more satisfying experience. Connect with us at www.gogoair.com, on Facebook at www.facebook.com/gogo and on Twitter at www.twitter.com/gogo.