Gogo soars on proposal from major airline, cancels bond offering

Shares of Gogo (NASDAQ: GOGO) surged more than 16 percent Thursday after the in-flight internet company received a proposal from a major airline customer.

In an SEC filing, the company said the proposal is to provide connectivity services on a "meaningful" portion of the airline's domestic fleet. The exact airline was not named in the filing.

Gogo cautioned there's no guarantee a deal will be reached and that arrangements remain subject to negotiation.

In light of the proposal, Gogo says it will cancel a $525 million bond it priced on Monday. The bonds were expected to close Thursday, carry a 12 percent interest rate, and be used to repay existing debt and fund working capital.

The latest proposal comes a day after Gogo announced that Gogo Cloud, the company's wireless content delivery network, is expanding into Europe with service available at select locations.

Gogo did not immediately respond to CNBC's request for comment.

Shares of Gogo have lost more than 37 percent so far this year, and more than 48 percent over the past 12 months.

GOGO 1-yr

Source: FactSet

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