Apollo Global Management and Citigroup have teamed up to offer a $3.5bn private credit financing package in support of Boeing’s planned divestment of its Jeppesen navigation unit, according to Bloomberg.

The financing is structured as a staple deal, offering covenant-lite terms and a rate of approximately 4.5 percentage points above the US benchmark. While optional for bidders, the package could boost the competitiveness of offers ahead of this week’s deadline for submissions.

The proposed debt facility is the first issued under the private credit partnership between Apollo and Citigroup. Boeing has appointed Citigroup as adviser for the sale process, which is expected to value Jeppesen at a minimum of $7bn.

Private credit rivals including Blue Owl Capital and Ares Management are reportedly preparing competing financing proposals. Meanwhile, traditional banks are also in the mix, offering first-lien loans priced between 3% and 3.5% over benchmark rates and second-lien loans at about 5%.

The Jeppesen sale is part of Boeing’s strategy to divest non-core assets and reduce its debt burden. The navigation unit is regarded as a highly attractive asset for strategic and financial buyers alike.

Representatives for Apollo, Citigroup, and Blue Owl declined to comment. Ares had not responded at the time of publication, and Boeing stated it “does not comment on market rumours or speculation.”