Citigroup and Apollo Global Management are offering private credit financing to potential buyers of Boeing’s Jeppesen navigation unit, marking the first major test of their recently established $25bn direct lending partnership, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the financing structure, known as private staple financing, leverages Citigroup’s M&A advisory expertise with Apollo’s capital, providing pre-arranged debt to support an acquisition. If successful, the deal could position the Citi-Apollo partnership as a key player in the competitive private credit and leveraged finance market.
The Jeppesen sale, which expected to fetch around $7bn, could see $3bn to $3.5bn in debt financing. Both corporate buyers and private equity firms interested in the asset have been offered private credit financing. However, bidders are not obligated to use Citi and Apollo’s funding and may opt for other Wall Street banks or direct lenders instead.
The Citi-Apollo partnership, announced in September 2024, aims to deploy $25bn in private credit over five years, with Citigroup sourcing deals and earning origination fees while Apollo supplies capital.
The Jeppesen carve-out is one of several divestments Boeing is considering to reduce its $58bn debt load following operational challenges. The deal has advanced to the second round of bidding, with interest from RTX Corp, Honeywell International, Carlyle Group, Thoma Bravo, and Warburg Pincus, among others.
