Thursday, April 11, 2013
Gogo Gets $113M Credit Facility Increase, Scores Legal Win
Gogo, the provider of in-flight wireless services which has operations in Broomfield, Colorado, announced it has closed a $113M increase to a credit facility for the firm, from arranged by Morgan Stanley and J.P. Morgan. According to Gogo, the new funding comes on top of an existing, $135M credit facility from the lenders. The firm said the debt financing will go towards global expansion and general operating purposes. Separately, Gogo has score a win in court, when a federal judge tossed a suit claiming that Gogo had an illegal monopoly on in-flight wireless prices; the suit was tossed when the judge rules that since it only has 16% of all U.S. airplanes signed up for it service, those providers are free to sign up with a number of competing providers. Gogo had been sued by passengers unhappy with its rates.