Apollo provides a €500m capital solution to Air France operating affiliate

Jul 29, 2022 | News

Apollo announced the close of an agreement for Apollo-managed funds and affiliated entities to make a €500m investment into an Air France operating affiliate owning a pool of spare engines dedicated to the airline’s Engineering and Maintenance activities. Air France is a fully owned subsidiary of Air France-KLM.

The bespoke transaction, part of Apollo’s high-grade partnerships, was a unique opportunity to provide one of the world’s leading airlines with a custom, asset-backed capital solution to deleverage and improve its borrowing costs. Apollo leveraged cross-platform expertise, including in aviation, asset-backed finance and multi-asset credit to execute the long-term investment.

Proceeds from the transaction allow Air France-KLM and Air France to further redeem the French State perpetual bonds provided as State aid due to the COVID-19 outbreak.

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Apollo Partner Jamshid Ehsani said, “Apollo is pleased to serve as a long-term strategic capital partner to Air France-KLM and is uniquely positioned to provide custom capital solutions like this to some of the world’s leading companies. Our ability to structure creative, scaled solutions at a wide-range of capital costs differentiates us from other platforms and provides attractive investment opportunities for both affiliated and third-party insurers as well as other institutional clients.”

Milbank LLP and Jeantet served as legal counsel to the Apollo Funds. Deutsche Bank AG and Skadden, Arps, Slate, Meagher & Flom LLP acted as exclusive financial and legal advisors, respectively, to Air France-KLM.

Source: Bakersfield

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