Apollo, Blackstone Provide $1B Each to Back Thoma Bravo’s LBO of Boeing’s Jeppesen Unit

A syndicate of 10 private lenders participated in up to $4 billion of debt financing to support Thoma Bravo’s $10.55 billion leveraged buyout of Boeing’s Jeppesen navigation unit and other subsidiaries, according to sources.

Apollo Global Management and Blackstone Credit each provided roughly $1 billion to the debt package, said sources. These lenders are by far the largest debt providers, they noted. Apollo was lead left arranger and is serving as administrative agent, as previously reported by Octus.

Other participants included JPMorgan Private Credit, Golub Capital, KKR, Oak Hill Advisors, Ares, Blue Owl, PSP Investments and Thoma Bravo Credit Fund, sources noted. Davis Polk served as lender counsel, they added.

Unique to this deal, dual-track staple debt financing backed by Apollo and Citi was offered at the start of the auction and throughout the sale process, said sources. The partnership enabled Apollo and Citi to offer terms for both the BSL and private credit markets, Octus reported.

Ultimately, however, Thoma Bravo as the winning bidder leveraged its existing private credit relationships – with Apollo and Blackstone among others – without using the staple financing. The move enabled the sponsor to negotiate its own terms, as is typically preferred among sponsors, sources noted.

Boeing’s sale of its business took roughly six months via a competitive auction process with more than five bidders short-listed, including private equity firms such as Vista Equity Partners, alongside strategic bidders, Octus reported.

Thoma Bravo, a software-focused private equity firm with over $179 billion in assets under management, considered tapping the broadly syndicated market, but the certainty of execution provided by the private market, especially during the volatile market conditions, provided lenders with a competitive edge over banks, said sources.

In November 2024, Thoma Bravo turned to private lenders to raise $600 million in debt financing to back its acquisition – together with private equity firm H.I.G. Capital – of Computing Technology Industry Association, or CompTia, Octus reported.

Staple financing often provides a sense of certainty and a “fall-back” option for potential buyers, particularly in tumultuous market conditions – as seen this year with talks around tariffs and interest rates being pursued by the Trump administration. The form of pre-agreed funding offered by Apollo and Citi in partnership provided extra confidence for potential bidders interested in acquiring the Boeing unit, added sources. Citi acted as financial advisor to Boeing.

The duo teamed up last year to form a $25 billion direct lending program, following several similar partnerships between banks and private lenders in an effort to expand into the fast-growing private credit market.

Boeing’s divestiture, announced on April 22, encompasses several digital assets that were developed or acquired by Boeing over the years, including Jeppesen, ForeFlight, AerData and OzRunways. The subsidiaries are part of Boeing’s digital aviation solutions business.

Thoma Bravo, Oak Hill Advisors, JPMorgan, Citi and PSP Investments declined to comment. Blackstone and Golub Capital did not respond to requests for comment.