Apollo first sketched out a bond-led approach: Apollo's initial blueprint centered on bonds, pairing £900 million in euro FRNs with £2.6 billion of senior secured notes issued across sterling, euros and dollars. That outline is being reshaped as high yield conditions have softened. With government bond yields climbing and pushing up corporate borrowing costs, financing secured against aircraft looks cheaper and more attractive right now.
Barclays, Credit Agricole, Citibank, Standard Chartered Bank and Lloyds underwrote the initial bridge to back the takeover, and additional lenders later joined, according to people familiar with the talks who asked not to be named because discussions are private. The bridge consists of a £3.5 billion senior secured notes bridge plus a £1.3 billion revolving credit line. The group is progressing toward permanent financing, aiming to sell the replacement debt near year-end or in early 2027. Asked for comment, Apollo, Credit Agricole and EasyJet spokespeople said they had nothing to add; the other banks' representatives did not reply right away.
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People involved say Apollo will look to raise most, if not all, of the borrowings through asset-backed structures, tapping markets for aircraft-collateralized loans and related secured debt, though it could still blend funding sources. That approach aligns with what it is buying: The strategy fits the target: EasyJet was an early mover in ultra low-cost travel across Europe and offers tangible backing in the form of Airbus A320-family aircraft, valuable slots at London, Milan and Geneva, and a holidays business.
Apollo agreed to acquire EasyJet in August after months of courting the airline amid a bidding battle. For regular investors, the signal is straightforward: when traditional bond markets get pricier, buyers gravitate to assets lenders can easily value and recover. If you see more aircraft and other asset-backed deals popping up, that is not swagger, it is the funding math shifting under higher-rate skies.
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