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COCONUT CREEK, Fla. - Willis Lease Finance Corporation (NASDAQ: WLFC), a prominent lessor of commercial aircraft engines and provider of aviation services with a market capitalization of $990 million, has priced a significant debt offering through its subsidiary, Willis Engine Structured Trust VIII (WEST). The offering includes $524 million of Series A Fixed Rate Notes and $72 million of Series B Fixed Rate Notes, with the transaction set to close on June 18, 2025.
The notes, backed by interests in a portfolio of aircraft engines and airframes, will help fuel the company’s growth and operations. The Series A and B Notes carry fixed coupons of 5.582% and 6.070%, respectively, and are priced near par value. According to InvestingPro data, WLFC operates with a significant debt burden, with total debt reaching $2.24 billion, though maintaining a healthy current ratio of 3.08. They will not be registered under the Securities Act of 1933, aiming instead at qualified institutional buyers in the U.S. and certain non-U.S. persons in compliance with applicable regulations.
Willis Lease Finance’s core business includes leasing spare commercial aircraft engines and auxiliary power units, as well as offering a suite of aviation services. This includes engine and aircraft trading, engine lease pools, asset management, and various end-of-life solutions for aviation materials. The company has demonstrated strong operational efficiency with an impressive gross profit margin of 89.95% and robust revenue growth of 35.29% over the last twelve months. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with 12 additional ProTips available to subscribers.
In addition to leasing activities, the company provides Part 145 engine maintenance, aircraft line and base maintenance, disassembly, storage, FBO services, and ground and cargo handling through its service offerings. Willis Sustainable Fuels is another venture of the company, aiming to develop projects that reduce the carbon footprint of aviation. Trading at a P/E ratio of 9.3, the stock appears attractively valued relative to its growth prospects. Get deeper insights into WLFC’s valuation metrics and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.
Investors are advised to consider the risks outlined in the company’s SEC filings, which include the impact of global events on the airline industry, changes in oil prices and market disruptions, as well as regulatory changes affecting aviation operations.
This pricing announcement is based on a press release statement from Willis Lease Finance Corporation and does not constitute an offer to sell or a solicitation of an offer to buy the notes.
In other recent news, Willis Lease Finance Corporation reported its Q1 2025 earnings with a notable revenue increase, surpassing forecasts at $157.7 million, a 33% rise from the previous year. Despite this revenue growth, the company’s earnings per share (EPS) fell short of expectations, reporting $2.21 against a forecast of $4.01. The company also announced plans to issue $596 million in asset-backed notes through Willis Engine Structured Trust VIII, targeting qualified institutional buyers in the U.S. and international investors. Additionally, Willis Lease Finance appointed Z. Clifton Dameron as the new Senior Vice President, General Counsel, and Corporate Secretary, succeeding Dean M. Poulakidas.
The company exercised purchase rights for 30 additional LEAP engines, reflecting its strategy to support operators of popular engines and aircraft. Portfolio utilization improved to 86.4%, indicating enhanced operational efficiency. Analysts from Deutsche Bank and Wolfe Research discussed the potential impacts of tariffs and the company’s strategic positioning to manage economic challenges. The company remains confident in its business model, with CFO Austin Willis expressing optimism about future growth despite economic uncertainties.
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