When Intelsat announced plans to buy the Gogo Commercial Aviation (CA) business the plan called for an early 2021 closing. Thanks to rapid government approvals, however, that timeline is accelerating. The pair now expect the deal to close in December 2020.
On November 18, 2020, Gogo Inc. (“Gogo”) announced that, based on significant progress in obtaining required governmental and regulatory approvals related to the previously announced sale of Gogo’s commercial aviation business (the “CA Sale”) to Intelsat Jackson Holdings S.A (“Intelsat”), including receiving all necessary approvals by the Federal Communications Commission, Gogo now expects to close the CA Sale in early December 2020. Closing of the CA Sale remains subject to the satisfaction of customary closing conditions set forth in the purchase and sale agreement, dated as of August 31, 2020, by and between Gogo and Intelsat, and the receipt of remaining governmental and regulatory approvals.
The new timeline benefits Gogo’s efforts to revamp its corporate debt. This includes potentially an improved credit rating from market makers and access to what CFO Barry Rowan recently described as a “very strong” capital market. Completing the refinancing prior to May 2021 is a goal and this new timeline for closing the Intelsat deal gives Gogo extra time to get there.
- Addressing two major challenges as Intelsat takes over the Gogo commercial aviation business
- Digging in to the ATG deal between Gogo and Intelsat
A favor to ask while you're here...
Did you enjoy the content? Or learn something useful? Or generally just think this is the type of story you'd like to see more of? Consider supporting the site through a donation (any amount helps). It helps keep me independent and avoiding the credit card schlock.