Milbank LLP represented Apollo Global Management (NYSE: APO) in connection with the €1.5 billion investment by Apollo-managed affiliated entities, funds and clients into an Air France-KLM (PAR: AF FP) operating affiliate holding the trademark and most of the commercial partners contracts related to Air France and KLM’s joint loyalty program (Flying Blue). As part of the transaction, Air France-KLM has committed to spend €100 million in sustainable aviation fuel over the next four years.
The inaugural European loyalty program financing transaction will provide Air France-KLM with a capital solution to further strengthen its balance sheet and enhance Flying Blue’s scalability and growth prospects. This financing is the third transaction between Apollo and Air France-KLM within the last 18 months.
The Milbank team was led by Drew Fine, chair of Milbank’s Transportation & Space and Finance practices, Global Corporate/M&A partner and co-head of Milbank’s Global Infrastructure practice John Franchini, Transportation & Space partner Freyda Mechlowicz and Global Corporate/M&A special counsel Daniel Tyrrell, along with Transportation & Space associates Ariella Stepanian, Michael Gibbons, Skylar Luke and Jeff Kaplan; Global Corporate/M&A associates Alan Wen, Mary Margaret Meehan and Kaitlin Ryan; Intellectual Property special counsel Nathaniel T. Browand; Global Project, Energy and Infrastructure Finance partner Sean O’Neill and associates Derrik Sweeney and Yuman Xu; and Global Tax partner and practice group leader Eschi Rahimi-Laridjani, Global Tax partner Max Goodman and associate Michael Rivkin.
