(AOF) – Air France-KLM and Apollo Global Management announced the upward review and completion of quasi-equity financing of 1.5 billion euros. The two groups signed an agreement at the end of October for quasi-equity financing of 1.3 billion euros.
This financing by funds and entities managed by Apollo is intended for an operational subsidiary of Air France-KLM which holds the brand and most of the commercial partner contracts linked to the joint loyalty program of Air France and KLM (Flying Blue ), as well as the exclusive right to issue “Miles” for airlines and their partners.
The financing is recognized as equity under IFRS accounting standards. As announced by the airline during the third quarter results, this transaction will allow it to restore its equity according to IFRS standards to a positive level by the end of the year.
The conditions communicated at the end of October remain unchanged and relate to a fixed coupon of 6.4% per year for the first four years, with the possibility for Air France-KLM to proceed with repayment with an overall financing cost of 6.75% until ‘on this first call date.
The airline will continue to manage and operate its Flying Blue loyalty program and airlines Air France and KLM will retain full control of Flying Blue’s customer database.
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