On December 7, 2020, S&P Global Ratings raised its rating on Gogo Inc. to B- from CCC+. The sale of Gogo's commercial aviation unit will leave it with a stronger balance sheet, according to the ratings agency. The Company has sold off its commercial aviation business, which not only was a drag on EBITDA and cash flow, hampering leverage, but S&P Global believes also generated just below $360 million in net proceeds. The Company intends to use the proceeds to repay the 6% convertible notes, of which $238 million are outstanding, reducing leverage to just below 8x area and fund the buildout of its 5G air-to-ground network. Furthermore, Gogo intends to refinance its 9.875% senior secured notes prior to May 2021 to further reduce the Company's interest expense, potentially improving interest coverage to the 2x area. Given the improvement in the business, S&P now believes the Company will be able to refinance its debt, resulting in significantly less interest expense and enabling the Company to generate positive cash flow.

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