Benzinga | Apr 1, 2021 01:06PM EDT

Gogo Shares Are Trading Higher On Convertible Debt Exchange And Refinancing Procedure

* Private equity firm GTCR will convert $105.7 million Gogo Inc's (NASDAQ: GOGO) 6% Convertible Senior Notes due 2022 into 19.1 million Gogo's shares gaining a 28.6% stake ownership in Gogo.

* Gogo will be left with 111.1 million shares and $1.08 billion in debt under the arrangement after a debt reduction of $135 million from Dec. 31, 2020. Gogo held $455 million in cash as of Mar. 31, 2021.

* Gogo also announced the refinancing of its $975 million outstanding 2024 Senior Secured Notes and $30 million undrawn asset-based facilities.

* Additionally, Gogo appointed GTCR MD Mark Anderson to its board on Mar. 30.

* The above initiatives will reduce Gogo's leverage ratio and interest expense, leading to greater financial flexibility as per Gogo CEO Oakleigh Thorne.

* Gogo stock has gained 356% in the last year.

* Price action: GOGO shares are trading higher by 3.57% at $10.01 on the last check Thursday.