Gogo Closes $135 Million Facility With Morgan Stanley, J.P. Morgan
Gogo, a provider of in-flight connectivity and a pioneer in wireless in-flight digital entertainment solutions, announced that it has closed a $135 million credit facility with 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 announced that it has entered into a memorandum of understanding to be one of two global service providers of Inmarsat’s Global Xpress(TM) 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.