New York, May 18, 2016 -- Moody's Investors Service ("Moody's") assigned a B3 Corporate Family Rating ("CFR"), a B3-PD Probability of Default Rating and a SGL-2 Speculative Grade Liquidity ("SGL") Rating for Gogo Inc. ("Gogo" or "the company"). Moody's also assigned a B2 (LGD3) rating to the company's $500 million senior secured note offering. The senior secured notes will be issued at its subsidiary, Gogo Intermediate Holdings LLC, and co-issued at a second subsidiary, Gogo Finance Co. Inc. The company plans to use the borrowings to refinance indebtedness outstanding under its amended and restated senior term facility, which Gogo may prepay at par plus 3.0% of the principal amount of the loans prepaid. Gogo intends to use the remaining net proceeds, if any, for working capital and other general corporate purposes, including potential costs associated with the launch and commercial rollout of Gogo's next-generation technology solutions. The outlook is stable.
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