Final yr, the aviation group and Apollo already concluded an identical settlement for a lot of spare engines for plane. As well as, Apollo obtained 6 % curiosity on the mortgage within the first three years, after which the rate of interest would enhance in subsequent years. Air France-KLM can repay that funding at any time after three years.
By designing the mortgage as an funding in a three way partnership that owns elements, the steadiness sheet of Air France-KLM is strengthened. Furthermore, the aviation group doesn’t must difficulty new shares as collateral, in order that the present shareholders don’t see their curiosity diluted.
It’s not identified when Air France-KLM and Apollo count on the unique talks to lead to a deal.
