Apollo, Citigroup Offer Cheap Private Debt for Boeing Unit Sale

Apollo Global Management Inc. and Citigroup Inc. are offering a razor-thin rate for a private financing worth around $3.5 billion backing Boeing Co.’s carveout of navigation unit Jeppesen, according to people with knowledge of the matter.

The partnership is offering potential buyers of the unit a so-called staple financing with a rate of around 4.5 percentage points over the US benchmark, as well as other borrower-friendly terms, said the people, who asked not to be identified discussing private information. Bidders for Jeppesen are expected to submit their offers by Wednesday, the people added.

Prospective buyers do not have to ...