Citi and Apollo trial private credit partnership in Boeing’s $7bn Jeppesen sale

Citigroup and Apollo Global Management are testing their $25bn private credit partnership by offering acquisition financing for Boeing’s sale of Jeppesen, its navigation unit.

The transaction marks the first major use of their private staple financing model, which combines Citi’s M&A advisory expertise with Apollo’s capital to provide pre-arranged debt for bidders.

The Jeppesen sale, expected to generate around $7bn, could see between $3bn and $3.5bn in debt financing. Citi and Apollo have extended private credit offers to both corporate and private equity buyers. However, bidders are free to seek financing from other banks or direct lenders.

Announced in September 2024, the Citi-Apollo collaboration aims to deploy $25bn in private credit over five years, with Citi sourcing deals and earning origination fees while Apollo supplies capital. A successful outcome could position the partnership as a major force in private credit and leveraged finance.

Boeing is selling Jeppesen as part of a broader effort to reduce its $58bn debt burden following operational setbacks. The deal has moved into the second round of bidding, attracting interest from RTX Corp, Honeywell International, Carlyle Group, Thoma Bravo, and Warburg Pincus.

If the Citi-Apollo financing structure gains traction, it could signal a shift in acquisition funding, further cementing private credit’s role in large-scale M&A transactions.

Source: Bloomberg