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PK AirFinance Issues $729 Million Aviation Loan ABS

1. PK AirFinance closed a $729 million aircraft loan ABS transaction. 2. This marks PK's largest ABS issuance amid turbulent market conditions. 3. Over $2 billion in cumulative ABS issued since July 2024. 4. Investor support highlights PK's strong market track record. 5. Strategic funding advantage for clients in aviation financing.

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Why Bullish?

The successful ABS issuance indicates financial robustness, reminiscent of industry successes like Blackstone’s securitization strategies. This could enhance investor confidence in APO, similar to past bullish impacts following major capital raises.

How important is it?

The article highlights a significant capital raising event directly linked to an APO affiliate, likely affecting APO's performance significantly.

Why Short Term?

The immediate market response to successful fundings often leads to short-term price increases, as seen in previous ABS issuances that attracted significant investor interest.

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Brings PK’s Cumulative ABS Issuance to $2 Billion Over the Past Nine Months May 14, 2025 17:00 ET  | Source: PK AirFinance NEW YORK, May 14, 2025 (GLOBE NEWSWIRE) -- PK AirFinance (“PK” or the “Company”), a leading aviation lending platform and affiliate of Apollo (NYSE: APO), has closed its first aircraft loan asset-backed securitization of 2025: PK ALIFT LOAN FUNDING 6 Series 2025-1 (“PKAIR 2025-1”). PKAIR 2025-1 represents PK’s largest ABS transaction to date, issuing approximately $729 million of debt that will be used to acquire the rights to the economics of a portfolio of aviation loans. PK ALIFT 2025-1 marks PK’s third commercial aircraft loan ABS issuance since July 2024, with the Company having issued approximately $2 billion of cumulative ABS transactions over the past nine months. The oversubscribed issuance saw broad participation from capital markets participants, including a wide range of institutional investors. Notes are secured by the proceeds of a portfolio of 114 senior-secured aviation loans spanning 50 unique obligors, with first priority liens on over $1.1 billion in underlying metal value. “PK is excited to close on 25-1, our largest Loan ABS transaction to date despite turbulent market conditions, with broad investor support that speaks to our track record and strength of our integrated platform,” said Gary Rothschild, CEO of PK AirFinance. Rothschild continued, “This issuance demonstrates our commitment to the ABS market as a programmatic issuer and the growth of the PKAIR shelf, with over $2 billion of primary-issue ABS since our inaugural transaction in 2024. Ultimately, we view this as a strategic funding advantage, enabling flexible and competitive financing solutions to our airline and lessor clients over the long term.” Redding Ridge Asset Management and RBC Capital Markets acted as co-structuring agents on the transaction. RBC Capital Markets, Mizuho Americas, BNP Paribas, SMBC Nikko and Apollo Global Securities served as Joint Bookrunners, with Wells Fargo Securities, PNC Capital Markets LLC, Blackstone Securities Partners L.P. and ATLAS SP acting as Co-Managers. Milbank LLP served as issuer counsel and Vedder Price acted as lender counsel. About PK AirFinance PK AirFinance is a premier specialized aircraft and aircraft engine lending business with deep expertise in the aviation finance sector. Its comprehensive origination, underwriting, structuring and syndication capabilities are delivered by a team of experienced professionals, whose extensive experience in varied products and geographies was built over several decades and industry cycles. To learn more, please visit https://www.apollopkairfinance.com/. Contacts Noah Gunn Global Head of Investor Relations 212-822-0540 IR@apollo.com Joanna Rose Global Head of Corporate Communications 212-822-0491 Communications@apollo.com

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