Apollo Global Management and Blackstone are leading a $4bn private credit facility to support Thoma Bravo’s $10.6bn acquisition of Boeing’s digital aviation unit, in one of the largest direct lending deals of the year, according to a report by Bloomberg citing unnamed sources familiar with the transaction.
The seven-year unitranche loan, which consolidates first- and second-lien debt into a single structure, is expected to price at 475 basis points over the benchmark rate. Additional participants in the lender syndicate include Ares Management, Blue Owl Capital, KKR and JPMorgan Chase, which is contributing through its growing private credit arm, sources said.
While final terms and lender allocations are still being negotiated, Apollo is acting as administrative agent on the transaction. The firm has played a central role in structuring the deal, having also offered a pre-arranged “staple” financing package through its $25bn private credit partnership with Citigroup. Under that arrangement, Citigroup originates lending opportunities, while Apollo deploys capital.
Citigroup, which also advised Boeing on the sale, declined to comment. Representatives for Apollo, Blackstone, Thoma Bravo, and Boeing were not immediately available.
The deal sees Thoma Bravo acquire Boeing’s Jeppesen flight navigation business, along with additional digital assets including ForeFlight, AerData and OzRunways.
