Apollo Global Management is moving to raise $2.35 billion for debt financing at its Venetian Resort Las Vegas, capitalizing on renewed investor appetite for riskier debt. The casino resort, acquired by Apollo funds in 2022, plans to split the financing equally between a term loan and secured debt, likely including junk bonds, according to sources familiar with the matter.

The financing comes as leveraged-loan issuance rebounds after a slowdown since late January. Lender commitments for the Venetian loan are due May 8, with initial price talk set at an interest rate of 3.75 percentage points above benchmark, offered at 99 cents on the dollar. Wells Fargo and JPMorgan are running the offering.

Apollo acquired the Venetian operations in 2021 for $2.25 billion while Las Vegas was still recovering from pandemic restrictions. The deal also involved Vici Properties. Recent market activity shows 14 deals launching this week, the most in nearly three months, including another Apollo-backed refinancing for Yahoo.