GOGO 9.875 05/01/2024 & GOGO 6 05/15/22

Gogo Inc

Credit, TMT


Presented:09/09/2019
Price:N/A
Cap:N/A
Current Price:$7.13
Cap:N/A

Presented

Date09/09/2019
PriceN/A
Market CapN/A
Ent ValueN/A
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/SN/A
Ave Daily VolN/A
Short IntN/A

Current

Price$7.13
Market CapN/A

Publicly traded companies mentioned herein: American Airlines Inc (AAL), Delta Air Lines Inc (DAL), Gogo Inc (GOGO), Viasat Inc (VSAT)

Highlights

The presenter is long the first lien notes, convertibles, and equity of Gogo Inc (GOGO) and believes the company’s valuation is misunderstood. The $925MM first lien notes were issued earlier this year with a 9 ⅞ coupon. The issue is now trading at 105 and callable in 2021 at slightly below the current price, so investors are involved for the coupon. There is also a 6% convertible that has been plus or minus par by five points in the last five months. It is 105 today, but has been down into the low 90s. The convertible is due in 2022, has a $6 strike price, and is right around par with a decent yield. At the time of the presentation the stock was around $5 and is now trading roughly at $6 so the convertible is currently at the strike price. On the equity side, the presenter speculates that should DAL add clarity on their relationship with GOGO, the stock could see substantial upside. Additionally, he calculates present value of the equity $8 - $12 today, and thinks there is a path to the high teens three to four years out. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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