The best-financed airline startup in history continues to expand its expectations. Breeze Airways announced today plans to add another 20 A220s to its fleet, bringing the order commitment to 80 of the type.
Breeze Airways secured an additional $200 million in funding, providing the carrier with a sizable bankroll to support upcoming expansion. The deal involves new and existing investors and gives the company the most capital for any of this year’s startup carriers.
Gogo announced its long-awaited debt refinancing deal this afternoon, a move that should deliver huge savings for the company. The move allows the company to retire a billion dollars of high-interest debt, reducing both the total leverage and the rate paid.
The French government likely just spent the most money ever on airport landing slots. A €4 billion deal to recapitalize the Air France-KLM group will see a token divestment of operating slots at Paris-Orly airport, assuming a competitor is keen.
GTCR, a leading private equity firm, will convert all of its $105.7 million principal amount of Gogo’s 6.0% Convertible Senior Notes due 2022 into shares of Gogo’s common stock. The deal will see GTCR receive 19.1 million shared of Gogo stock, giving the company a 28.6% ownership stake in Gogo.
Viasat’s liquidity got a strong boost this week the company placed $175 million in shares through private transactions. The deal bolsters Viasat’s cash balance while not assuming additional debt, an important longer term factor for the company’s success.
Norwegian’s financials, or potential lack of such, have raised eyebrows in the aviation world for some time now. Hoping to put those fears to rest – and continue selling seats as it heads into the traditionally slower winter season – the carrier announced the closing of a ~$275 million financing round. The company declared, “After the completion of the transactions, Norwegian is fully funded through 2020 and beyond based on the current business plan.”
Inflight connectivity provider Gogo announced the closing on its previously announced $30 million revolving line of credit today. The move increases the company’s liquidity to approximately $100 million and does so without adverse impact to the stake of its current shareholders.
Gogo appears to have solved its most significant short-term challenge, with a $900mm debt offering lined up to provide five years of breathing room as the company inches towards a positive free cash flow.