Apollo Global Management is expected to favour aircraft-backed financing over high-yield bonds for most or all of the GBP3.5 billion pounds (USD4.6 billion) debt package supporting its planned acquisition of easyJet Group, reports Bloomberg, citing people familiar with the matter.

Banks arranging the longer-term financing are expected to launch the debt package toward the end of 2026 or in early 2027, the unnamed sources said. The financing could comprise asset-backed loans and other debt secured against easyJet's aircraft, although a combination of aircraft-backed and bond financing remains possible, they said.

Apollo had initially considered raising GBP900 million (USD1.1 billion) through euro-denominated floating-rate notes and GBP2.6 billion (USD3.4 billion) through senior secured notes denominated in sterling, euros, and US dollars.

However, weaker high-yield markets and higher government bond yields have made aircraft-backed financing comparatively more attractive, according to the sources.

Barclays, Crédit Agricole CIB, Citibank, Standard Chartered, and Lloyds initially underwrote a GBP3.5 billion senior secured note bridge facility and a GBP1.3 billion (USD1.7 billion) revolving credit facility for the acquisition. Other banks subsequently joined the interim financing.

Apollo agreed in August 2026 to acquire easyJet following a months-long bidding process.

The transaction gives the US investment firm control of easyJet's Airbus A320-family fleet, valuable slots at constrained airports including London, Milan Malpensa, and Geneva, and its holiday business.

ch-aviation has contacted Apollo and easyJet for comment.

Spokespeople for Apollo, Crédit Agricole, and easyJet declined to comment to Bloomberg.