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Gogo hasn’t been able to execute on its IPO plans, and in the interium it announced today that it closed on a $113 million increase in its credit facility to bankroll its fledgling international expansion.
That $113 million, which would also be used for general corporate purposes, comes on top of Gogo’s existing $135 million credit facility from Morgan Stanley and J.P. Morgan.
Gogo initially filed its S-1 registration statement for an IPO in December 2011, and has filed six amendments, with the latest coming in November 2012.
The airline Wi-Fi company currently has its air-to-ground systems installed on nine airlines and 1,850 aircraft. The company, however, has been scurrying to roll out Ku-band satellite connectivity.
“Securing this latest round of financing is an important step in funding our growth and helps strengthen our overall financial position,” says Norm Smagley, Gogo’s CFO. “The new round of funding will help us continue to develop and operationalize our international expansion.”
For the six months ended June 30, 2012, the latest results available, Gogo posted an operating loss of nearly $9.2 million, compared with a $17.8 million loss a year earlier. Revenue rose 53.7% to $112.1 million during the first six months of 2012.
Gogo began its international operations a little more than a year ago, and indicated in November that its international expansion “is in the start-up phase.”