Apollo to favour aircraft financing for easyJet deal
Apollo Global Management is likely to use aircraft-backed financing for most of the GBP3.5 billion debt package supporting its planned acquisition of easyJet Group, according to Bloomberg. The financing may include asset-backed loans and other debt secured against easyJet's aircraft, with banks expected to launch the debt package by early 2027.
How this was made
The 30-second read
Why it matters
The financing choice signals weaker high‑yield markets and may set a precedent for future airline acquisitions.
Market read
First disclosure of the financing structure for a multi‑billion‑dollar airline takeover, affecting both Apollo and easyJet equities.
What to watch
Potential regulatory scrutiny of aircraft‑secured loans and the impact on easyJet's future fleet acquisition strategy.
Background
Apollo Global Management is finalizing a GBP3.5 bn debt package for its acquisition of easyJet, favoring aircraft‑backed loans over high‑yield bonds.
Ticker impact
Apollo Global Management's choice to use aircraft-backed financing for the easyJet acquisition.
likely modest pressure as investors assess higher leverage from the deal.
The financing structure is newly disclosed and sizable, influencing Apollo's balance sheet.
Market effects
Airline financing trends may shift investor appetite for asset‑backed loans versus high‑yield bonds.
European airline sector could see tighter credit conditions if aircraft‑backed financing becomes more common.
Large‑scale cross‑border M&A financing may influence global leveraged loan markets.
Counterpoint
If aircraft‑backed financing proves cheaper, Apollo could improve returns, offsetting leverage concerns.
Key entities
- AcquirerApollo Global Management
US private‑equity firm leading the acquisition.
- TargeteasyJet Group
European low‑cost airline being acquired.
