Apollo to provide up to EUR 1.5 billion High Grade Capital Solution to an Air France-KLM operating affiliate supported by commercial partner contracts of its Flying Blue loyalty program

Rhea-AI Summary

Apollo announces €1.5 billion investment in Air France-KLM loyalty program

Positive

• Apollo to invest up to €1.5 billion in Air France-KLM loyalty program
• Air France-KLM committed to spending €100 million in sustainable aviation fuel over the next four years
• Transaction strengthens Air France-KLM's balance sheet and enhances growth prospects

Negative

• None.

NEW YORK, Oct. 26, 2023 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced the signing of an agreement for Apollo-managed affiliated entities, funds and clients to invest up to €1.5 billion into an Air France-KLM (PAR: AF FP) operating affiliate holding the trademark and most of the commercial partners contracts related to Air France and KLM’s joint loyalty program (Flying Blue). Air France-KLM has committed to spend €100 million in sustainable aviation fuel over the next four years.

The inaugural European loyalty program financing transaction will provide Air France-KLM with a capital solution to further strengthen its balance sheet and enhance Flying Blue’s scalability and growth prospects. This financing is the third transaction between Apollo and Air France-KLM within the last 18 months.

Apollo Partner Jamshid Ehsani said, “Apollo is pleased to continue to serve as a capital partner to Air France-KLM. This latest transaction is indicative of our ability to provide high grade capital solutions, in scale, to high-quality corporations around the world, while creating attractive, downside protected investment opportunities for our insurance platforms, funds and clients. At Apollo, we are increasingly acting as a leading solutions provider to large global corporations active in capital intensive industry sectors, including Aviation, Real Estate, TMT, Utilities, Transportation and Pharmaceuticals, among others.”

Milbank LLP, Latham & Watkins LLP, NautaDutilh and Barclays are acting as legal counsel and financial advisor, respectively, to Apollo affiliates, funds and clients. Apollo Capital Solutions provided structuring and syndication services in connection with the transaction. Deutsche Bank AG and Skadden, Arps, Slate, Meagher & Flom LLP acted as exclusive financial and legal advisors, respectively, to Air France-KLM.

About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2023, Apollo had approximately $617 billion of assets under management. To learn more, please visit www.apollo.com.

Apollo Contacts
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com

What is the investment amount by Apollo in Air France-KLM loyalty program?

Apollo is investing up to €1.5 billion in the loyalty program

How much will Air France-KLM spend on sustainable aviation fuel?

Air France-KLM has committed to spending €100 million over the next four years

What are the benefits of the transaction for Air France-KLM?

The transaction strengthens Air France-KLM's balance sheet and enhances the growth prospects of its loyalty program