Exhibit 10.1.49

 

EXECUTION VERSION

LETTER AGREEMENT

LETTER AGREEMENT (this “Agreement”), dated as of November 6, 2020, between, Gogo
Inc., a Delaware corporation (the “Company”), and each of the parties identified
on Schedule I hereto (each, a “Purchaser” and collectively, the “Purchasers”).

RECITALS

WHEREAS, on and subject to the terms and conditions set forth in the purchase
agreement (the “Notes Purchase Agreement”), dated as of November 6, 2020,
between Gogo Intermediate Holdings LLC, a Delaware limited liability company
(“Holdings”), Gogo Finance Co. Inc., a Delaware corporation (the “Co-Issuer”
and, together with Holdings, the “Issuers”), the Guarantors (as defined in the
Notes Purchase Agreement), and the Purchasers, the Issuers agreed to issue and
sell to the Purchasers $50,000,000 aggregate principal amount of 9.875% Senior
Secured Notes due 2024 of the Issuers (the “Notes”), to be issued pursuant to
the indenture, dated as of April 25, 2019, among the Issuers, each of the
guarantors party thereto and U.S. Bank National Association, as trustee and
collateral agent (as amended and supplemented from time to time, the
“Indenture”) (such issuance and sale of Notes, the “Offering”); and

WHEREAS, on August 31, 2020, the Company entered into a Purchase and Sale
Agreement (the “CA Purchase Agreement”) with Intelsat Jackson Holdings S.A., a
societe anonyme (“Buyer”), pursuant to which, subject to the satisfaction of the
conditions set forth in the CA Purchase Agreement, the Company will sell to
Buyer all of the issued and outstanding units of Gogo LLC, a Delaware limited
liability company, and Gogo International Holdings LLC, a Delaware limited
liability company, for a purchase price of $400 million in cash, subject to
certain adjustments (the “CA Sale Transaction”).

NOW, THEREFORE, in consideration of the mutual promises and of the mutual
covenants, representations, warranties and obligations hereinafter set forth,
for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

ARTICLE I

COVENANTS

1.1Company Covenants.  

(a)If (i) the Offering is consummated, pursuant to the terms of the Notes
Purchase Agreement, and (ii) by 5:00 p.m., New York City time, on May 5, 2021
(the “Equity Issuance Deadline”), the CA Sale Transaction has not been
completed, then, subject to the terms and conditions hereof, the Company agrees
with each of the Purchasers that it shall engage in one or more transactions
(which transactions may, but need not, involve a primary issuance of securities
for cash)

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involving shares of the Company’s common stock or other equity securities
(including securities convertible into equity securities but not including any
instruments with mandatory redemption features) of the Company (collectively,
“Equity Securities”), which transactions result in net proceeds of at least
$20.0 million in the aggregate (the “Qualifying Equity Issuance Condition”).  

(b)For purposes of determining whether the Qualifying Equity Issuance Condition
has been satisfied:

(i)with respect to Equity Securities issued for cash, the net proceeds of such
issued Equity Securities shall be equal to the total cash proceeds received by
the Company, less any costs and expenses (including underwriters’ or initial
purchasers’ fees, discounts or commissions) incurred in connection with such
issuance, and such net proceeds shall have been provided to Holdings in the form
of a common equity capital contribution or the purchase of units or other equity
interests of Holdings (other than units or equity with a maturity date,
mandatory redemption date or other similar features);

(ii)with respect to all other issuances of Equity Securities, the net proceeds
of such issued Equity Securities shall be equal to the value of the savings
generated, services or assets received or cash recouped by Holdings or its
“Restricted Subsidiaries” (as defined in the Indenture) in connection with such
issuance, based on (A) the reasonable good faith determination of the
disinterested members of the Company’s board of directors, whose determination
shall be conclusive if evidenced by a validly adopted resolution of such
directors or (B) such other evidence as shall be reasonably satisfactory to the
Purchasers; and

(iii)any issuance of Equity Securities that is contemplated by the Company’s
financial projections and forecasts for the fiscal year ending December 31,
2021, set forth in Schedule II hereto, that were previously provided to any of
the Purchasers shall be disregarded.

(c)Promptly following satisfaction of the Qualifying Equity Issuance Condition,
an officer of the Company shall deliver a certificate to each of the Purchasers
that describes the transaction(s) that satisfy the Qualifying Equity Issuance
Condition, in form and substance reasonably satisfactory to each Purchaser.

(d)The Company agrees to take, or cause to be taken, all actions and to do or
cause to be done all other things necessary, proper or advisable in order for
such party to fulfill and perform their respective obligations in respect of
this Agreement, to cause the conditions to its obligations set forth herein to
be fulfilled and otherwise to consummate and make effective the transactions
contemplated

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by this Agreement, including, but not limited to, amending and supplementing the
Indenture to permit the issuance of the Additional Notes (as defined below) by
the Issuers.  

1.2Failure to Satisfy the Qualifying Equity Issuance Condition. If the Offering
is consummated, pursuant to the terms of the Notes Purchase Agreement, and both
the CA Sale Transaction has not been completed and the Qualifying Equity
Issuance Condition has not been satisfied by the Equity Issuance Deadline:

(a)the Company shall cause the Issuers to issue to each Purchaser additional
9.875% Senior Secured Notes due 2024 (“Senior Secured Notes”) of the Issuers
(the “Additional Notes” and, together with the Notes, the “Total Notes”), which
shall trade under the same CUSIP number as the Notes, in an aggregate principal
amount set forth in Schedule I hereto (the “Additional Notes Issuance”) by no
later than May 7, 2021; provided that, if, as of May 7, 2021, the Issuers are
required to issue Additional Notes pursuant to this Section 1.2(a)(i), but are
not permitted to issue such Additional Notes pursuant to any contractual
restrictions, including under the Indenture, the Company shall, not later than
the close of business on May 7, 2021, pay each Purchaser cash (in immediately
available funds) in an amount equal to the aggregate principal amount of
Additional Notes that would have otherwise been issued to each Purchaser; and

(b)each Purchaser shall have the right, at anytime from December 15, 2021 until
the maturity date of the Senior Secured Notes (as set forth in the Indenture),
to sell an aggregate principal amount of Senior Secured Notes equal to the
aggregate principal amount of such Purchaser’s Total Notes to the Issuers, and
the Issuers shall be required to purchase all of such Senior Secured Notes, at a
price equal to the aggregate principal amount of such Senior Secured Notes, plus
accrued and unpaid interest to (but not including) the applicable repurchase
date.

1.3Purchaser Covenants. Each Purchaser agrees to use all commercially reasonable
efforts to take, or cause to be taken, all actions and to do or cause to be done
all other things necessary, proper or advisable in order for such party to
fulfill and perform their respective obligations in respect of this Agreement,
to cause the conditions to its obligations set forth herein to be fulfilled and
otherwise to consummate and make effective the transactions contemplated by this
Agreement, including, but not limited to, consenting in respect of all Senior
Secured Notes of the Issuers beneficially owned by such Purchaser to any
amendment to the Indenture to permit the incurrence of the Additional Notes by
the Issuers if so requested by the Company or the Issuers.

ARTICLE II

TERMINATION

2.1Termination.  This Agreement may be terminated by (i) mutual written

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consent of the Company and each of the Purchasers or (ii) the Company if a court
of competent jurisdiction or governmental, regulatory or administrative agency
or commission shall have issued a nonappealable final order, decree or ruling or
taken any other action having the effect of permanently restraining, enjoining
or otherwise prohibiting the transactions contemplated by this Agreement.

2.2Drop-Dead Date.  This Agreement shall terminate automatically if the purchase
and sale contemplated by this Agreement has not been consummated by 4:00 p.m.,
New York City time, on November 13, 2020.

2.3Effects of Termination.  In the event of termination of this Agreement
pursuant to Section 2.1 hereof, this Agreement shall become void and have no
effect, without any liability to any person in respect hereof, except for any
liability resulting from such party’s breach of this Agreement.  

ARTICLE III

MISCELLANEOUS

3.1Notices.  All notices, requests, consents and other communications hereunder
to any party shall be in writing (including electronic or facsimile
transmission) and shall be delivered:

(i)if to the Company:

Gogo Inc.

111 N. Canal Street

Chicago, IL 60606

Attn:  General Counsel

 

with a copy to:  

Debevoise & Plimpton LLP
919 Third Avenue
New York, NY 10022
Attn: Matthew E. Kaplan

Fax:  (212) 521-7334
Telephone:  (212) 909-7334
e-mail:  mekaplan@debevoise.com

(ii)if to any Purchaser, to the address of such Purchaser specified on Schedule
I hereto;

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or such other address or facsimile number or e-mail address as any party may
hereafter specify for the purpose by notice to the other party.  All such
notices, requests, consents and other communications shall be deemed received on
the date of receipt by the recipient.

3.2Confidentiality; Public Announcements.  Except as required by applicable
securities or other laws or compulsory legal process, the Company and each of
the Purchasers shall keep, and shall cause each of their respective affiliates
and advisors to keep, the terms of this Agreement and the transactions
contemplated hereby confidential, and shall not make, and shall cause their
affiliates and advisors not to make, any public announcement in respect of this
Agreement or the transactions contemplated hereby without the prior written
consent of the other parties hereto.

3.3Amendments and Waivers.  This Agreement may be amended, modified,
supplemented or waived only upon the written agreement of the Company and the
party against whom enforcement of such amendment, modification, supplement or
waiver is sought.

3.4Assignment.  Neither the Company nor any Purchaser shall assign all or any
part of this Agreement without the prior written consent of the other party,
except that any Purchaser may assign its rights and obligations under this
Agreement (in whole or in part) to another party that is a fund or account under
common management with such Purchaser.

3.5Entire Agreement.  This Agreement embodies the entire agreement and
understanding between the parties hereto and supersedes all prior agreements and
understandings relating to the subject matter hereof.

3.6Governing Law and Submission to Jurisdiction.  This Agreement shall be
construed and enforced in accordance with and governed by the laws of the State
of New York.  With respect to any suit, action or proceeding against it arising
out of or relating to this Agreement, each of the Purchasers and the Company
irrevocably submits to the exclusive jurisdiction of the courts of the State of
New York and the United States District Courts in each case located in the
Borough of Manhattan, City and State of New York.  In addition, each of the
Purchasers and the Company irrevocably waives any objection which it may now or
hereafter have to the laying of venue of such suit, action or proceeding brought
in any such court and irrevocably waive any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum.

3.7Survival.  All representations, warranties and covenants contained herein or
made in writing by the Company or any of the Purchasers in connection with the
transactions contemplated by this Agreement shall survive the execution and
delivery of this Agreement.

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3.8Counterparts.  This Agreement may be executed in any number of counterparts,
which may be delivered by facsimile or electronic transmission, each of which
shall be an original, but all of which together shall constitute one
instrument.  All signatures need not appear on any one counterpart.  Delivery of
an executed counterpart of a signature page to this Agreement by telecopier,
facsimile or other electronic transmission (i.e., a “.pdf” or “.tif”) shall be
effective as delivery of a manually executed counterpart thereof.

3.9Severability.  Any term or provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such invalidity or unenforceability without rendering invalid
or unenforceable the remaining terms and provisions of this Agreement or
affecting the validity or enforceability of any of the terms or provisions of
this Agreement in any other jurisdiction.  The parties shall, to the extent
lawful and practicable, use their commercially reasonable efforts to enter into
arrangements to reinstate the intended benefits, net of the intended burdens, of
any such provision held invalid, illegal or unenforceable.

3.10Further Assurances.  Each party hereto agrees to use all commercially
reasonable efforts to execute and deliver to the other party such further
instruments and to take such further actions as the other party may reasonably
deem necessary to fully effectuate the intent and purposes of this Agreement.  

3.11Headings.  The headings contained in this Agreement are for purposes of
convenience only and shall not affect the meaning or interpretation of this
Agreement.

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the date first above written.

Gogo Inc.

By:  /s/ Marguerite M. Elias
Name: Marguerite M. Elias
Title:   Executive Vice President,

General Counsel and Secretary

 

 

 

 

[Signature Page to Letter Agreement]

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This Agreement is hereby accepted and agreed to as of the date hereof.

CAPITAL RESEARCH AND MANAGEMENT COMPANY, for and on behalf of the funds and
accounts managed or advised by it or its affiliates and listed on Schedule I
hereto, each as a Purchaser

By:    /s/ Kristine M. Nishiyama                   
         Name:  Kristine M. Nishiyama
         Title:  Authorized Signatory

 

[Signature Page to Letter Agreement]

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This Agreement is hereby accepted and agreed to as of the date hereof.

Westminster Debt VIII Aggregator LLC, as a Purchaser

By:   /s/ Marc G. Puglia                            
         Name: Marc G. Puglia
         Title: Authorized Signatory

 

[Signature Page to Letter Agreement]

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This Agreement is hereby accepted and agreed to as of the date hereof.

Cardinal Fund L.P., By: HPS Investment Partners, LLC, as Investment Manager, as
a Purchaser

By:  /s/ Serge Adam                                  
Name: Serge Adam
Title: Managing Director

 

Signature Page to Letter Agreement

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This Agreement is hereby accepted and agreed to as of the date hereof.

Credit Value Master Fund V Subsidiary, Ltd., By: HPS Investment Partners, LLC,
as its Investment Manager, as a Purchaser

By:  /s/ Serge Adam                                  
Name: Serge Adam
Title: Managing Director

 

Signature Page to Letter Agreement

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This Agreement is hereby accepted and agreed to as of the date hereof.

Credit Value Ontario Fund V Subsidiary, L.P., By: HPS Investment Partners, LLC,
as investment manager, as a Purchaser

By:  /s/ Serge Adam                                  
Name: Serge Adam
Title: Managing Director

 

Signature Page to Letter Agreement

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This Agreement is hereby accepted and agreed to as of the date hereof.

Institutional Credit Fund Subsidiary, L.P., By: HPS Investment Partners, LLC,
its Investment Manager, as a Purchaser

By:  /s/ Serge Adam                                  
Name: Serge Adam
Title: Managing Director

 

Signature Page to Letter Agreement

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This Agreement is hereby accepted and agreed to as of the date hereof.

HPS Mauna Kea Fund, L.P., By: HPS Investment Partners, LLC, as investment
manager, as a Purchaser

By:  /s/ Serge Adam                                  
Name: Serge Adam
Title: Managing Director

 

 

 

Signature Page to Letter Agreement

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This Agreement is hereby accepted and agreed to as of the date hereof.

Florida Power & Light Company Qualified Decommissioning Trusts for Turkey Point
and St. Lucie Nuclear Plants, By: HPS Investment Partners, LLC, as Investment
Manager, as a Purchaser

By:  /s/ Serge Adam                                  
Name: Serge Adam
Title: Managing Director

 

Signature Page to Letter Agreement

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This Agreement is hereby accepted and agreed to as of the date hereof.

Sandlapper Credit Fund, L.P., By: HPS Investment Partners, LLC, Its Investment
Manager, as a Purchaser

By:  /s/ Serge Adam                                  
Name: Serge Adam
Title: Managing Director

 

 

Signature Page to Letter Agreement

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This Agreement is hereby accepted and agreed to as of the date hereof.

Credit Value Master Fund VI, L.P., By: HPS Investment LLC, its Investment
Manager, as a Purchaser

By:  /s/ Serge Adam                                  
Name: Serge Adam
Title: Managing Director

 

Signature Page to Letter Agreement

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This Agreement is hereby accepted and agreed to as of the date hereof.

ZALICO VL Series Account – 2, By: HPS Investment Partners, LLC, as Investment
Manager, as a Purchaser

By:  /s/ Serge Adam                                  
Name: Serge Adam
Title: Managing Director

Signature Page to Letter Agreement