Gogo grounds its bond deal
In-flight Internet provider Gogo took the rare step of cancelling a bond sale days after it agreed to terms, saying it was in negotiations with an airline it didn’t identify about serving a large portion of its fleet. Lawyers involved with the US$525m bond offering advised that “we should pull the bond deal until this negotiation is complete,” Varvara Alva, VP of investor relations and treasurer with Gogo, said Thursday. The company would likely try to resell the bonds at a later date once the negotiation is complete, a person familiar with the matter said. Some investors speculated the potential airline deal would improve the company’s finances and could help Gogo lower its interest rate when it tries to sell the debt again. Gogo has cautioned there was no guarantee an agreement with the airline would be reached. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-05-27/general/gogo-grounds-its-bond-deal
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Gogo grounds its bond deal
In-flight Internet provider Gogo took the rare step of cancelling a bond sale days after it agreed to terms, saying it was in negotiations with an airline it didn’t identify about serving a large portion of its fleet. Lawyers involved with the US$525m bond offering advised that “we should pull the bond deal until this negotiation is complete,” Varvara Alva, VP of investor relations and treasurer with Gogo, said Thursday. The company would likely try to resell the bonds at a later date once the negotiation is complete, a person familiar with the matter said. Some investors speculated the potential airline deal would improve the company’s finances and could help Gogo lower its interest rate when it tries to sell the debt again. Gogo has cautioned there was no guarantee an agreement with the airline would be reached. <br/>
