Herbert Smith Freehills Kramer advises Virgin Atlantic on its partnership with Apollo for a $745 million asset-backed financing solution

Leading global law firm Herbert Smith Freehills Kramer has advised Virgin Atlantic Airways (Virgin Atlantic) on its partnership with US alternative asset manager Apollo for a $745 million senior secured financing of Virgin Atlantic’s portfolio of take-off and landing slots at London Heathrow.

The proceeds from the financing will further strengthen Virgin Atlantic’s balance sheet and fund the airline’s continued investment in its award-winning premium customer experience. This includes the complete refurbishment of its Boeing 787-9 fleet, introducing upgraded interiors and expanded Upper-Class and Premium cabins from 2028. 

The Herbert Smith Freehills Kramer team was led by partner Michael Poulton, supported by of counsel Charlene Kong and associate Trystan Cullinan on Finance matters, and of counsel Suzy Campbell on Regulatory matters. The wider team included partner Howard Murray, senior associate David Alexander and associate Julian Nino, who advised on Tax matters, and Head of US Securities Tom O'Neill and Anna Shemer, who provided US securities advice. 

Partner Michael Poulton commented: "This unique asset-backed financing structure unlocks significant capital investment for Virgin Atlantic using its take-off and landing slots at London Heathrow, one of the world’s busiest airports. We are delighted to have advised Virgin Atlantic on this deal which exemplifies our capability to deliver sophisticated financing solutions for new and emerging asset classes."