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Inflight connectivity provider Gogo successfully closed on its previously announced $30 million revolving line of credit today. The move increases the company’s liquidity to approximately $100 million and, importantly, does so without adverse impact to the stake of its current shareholders.
The closing of our $30 million revolving credit facility provides additional buffer capital and represents another important step in the strengthening of our balance sheet and liquidity without equity dilution. We continue to expect Free Cash Flow improvement of at least $100 million in 2019 versus 2018 and meaningfully positive annual Free Cash Flow in 2021.
– Oakleigh Thorne, President and CEO of Gogo
Gogo notes that it will not use the additional liquidity for operational or growth plans, at least not for now. The expectation is to keep it in reserve to facilitate any future cash demands for refinancing the debt due in 2022 and 2024.
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