American investment companies Citigroup Inc. and Apollo Global Management Inc. are offering potential buyers of Boeing Jeppesen's navigation division the opportunity to finance through a new private loan partnership. This is reported in the Apollo press release.
In September 2024, Citigroup and Apollo entered into an agreement to work together on deals worth $25 billion over five years as part of a partnership.
Citigroup, as a consultant to Boeing, plans to use Apollo's funds to finance investors amid a trend towards leveraging funds in competition with direct lending companies.
In November 2024, Boeing announced its intention to sell the Jeppesen division for $7 billion, with debt financing ranging from $3 billion to $3.5 billion. Jeppesen is one of the non-core assets that Boeing intends to sell in order to reduce its debt burden of $58 billion.
JRTX Corp., Honeywell International Inc., Carlyle Group Inc., Thoma Bravo and Warburg Pincus have expressed interest in the deal. At the same time, potential bidders do not exclude other sources of financing, including mandatory financing from banks and loans from other private credit companies.
Jeppesen is a subsidiary of Boeing Commercial Airplanes in the field of aeronautical information management. The company provides flight planning and educational services in the field of aviation and has representative offices in Germany, Great Britain and Australia.
Apollo Global Management is an American alternative asset management investment company. The company provides a wide range of services, including asset management in income, hybrid and stock markets, as well as pension services. First of all, the company serves the financial sector. The headquarters is located in New York (USA). The company's market value decreased by 13.8% to $85.2 billion.
Citigroup is an American financial conglomerate with assets worth $1.8 trillion under management. The conglomerate is based on Citibank, which is one of the "big four" US banks along with Bank of America, JPMorgan Chase and Wells Fargo.
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