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PK AirFinance Issues $827 Million Aviation Loan ABS

1. PK AirFinance closed its largest ABS transaction of $827 million. 2. This issuance strengthens Apollo's financial position in aviation lending. 3. PK AirFinance's cumulative ABS issuance reached $2.8 billion since 2024. 4. Transaction received 'AAA' ratings, enhancing investor confidence. 5. Diverse institutional participation indicates broad market interest in aviation loans.

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FAQ

Why Bullish?

With substantial ABS issuance and AAA ratings, investor confidence is likely to rise, akin to past successful financing events in the aviation sector. For instance, previous AAA-rated transactions in similar sectors have often led to stock price increases for associated firms.

How important is it?

The positive implications of substantial capital inflow and credit ratings are significant for Apollo's market evaluation and growth trajectory. The link to aviation finance showcases potential for competitive advantage.

Why Short Term?

The immediate financial boost from the ABS issuance may lead to short-term stock price appreciation, reflecting instant market reaction. Historical trends indicate a similar pattern following significant financing announcements.

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Brings PK’s Cumulative ABS Issuance to $2.8 Billion Since Program Inception in 2024 October 01, 2025 10:07 ET  | Source: PK AirFinance NEW YORK, Oct. 01, 2025 (GLOBE NEWSWIRE) -- PK AirFinance (“PK” or the “Company”), a leading aviation lending platform and affiliate of Apollo (NYSE: APO), has closed its second aircraft loan asset-backed securitization of 2025: PK ALIFT LOAN FUNDING 7 Series 2025-2 (“PKAIR 2025-2”). PKAIR 2025-2 represents PK’s largest ABS transaction to date, issuing approximately $827 million of debt that will be used to acquire the rights to the economics of a portfolio of aviation loans. PKAIR 2025-2 marks PK’s fourth commercial aircraft loan ABS issuance since July 2024, with the Company having issued approximately $2.8 billion of cumulative ABS transactions over the past fifteen months. The transaction is also the first commercial aircraft loan ABS issuance to feature a ‘Big Three’ AAA rating in more than 20 years, with Fitch ascribing ‘AAA’ and ‘AA’ ratings to PKAIR 2025-2’ A and B tranches, respectively. 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 107 senior-secured aviation loans spanning 42 unique obligors, with first priority liens on approximately $1.4 billion in underlying metal value. “PK is thrilled to close on 25-2, our second issuance of 2025 and largest loan ABS transaction to date,” said Gary Rothschild, CEO of PK AirFinance. “This transaction – supported by the first-ever Fitch AAA rating in Aviation – represents another key milestone for the PKAIR program and is a testament to PK’s demonstrated track record within aviation finance. We believe this further enhances our ability to provide flexible, competitive financings to our airline and lessor clients over the long term.” PKALIFT 2025-2 featured ratings from three rating agencies – Fitch, KBRA and DBRS. Redding Ridge Asset Management, BNP Paribas and Mizuho Americas acted as co-structuring agents on the transaction. RBC Capital Markets, 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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