Willis Lease Finance to offer $596 million in asset-backed notes

COCONUT CREEK, Fla. - Willis Lease Finance Corporation (WLFC), a prominent lessor of commercial jet engines with a market capitalization of $929 million, announced today that it is planning to issue $596 million in asset-backed notes through its subsidiary, Willis Engine Structured Trust VIII. According to InvestingPro data, the company maintains impressive gross profit margins of nearly 90% and is currently trading below its Fair Value. The offering comprises $524 million of Series A Fixed Rate Notes and $72 million of Series B Fixed Rate Notes, both secured by interests in a portfolio of 62 aircraft engines and two airframes.

The assets backing these notes are set to be acquired from Willis Lease Finance Corporation or its other subsidiaries under an asset purchase agreement. The proceeds from the sale of the notes are intended to cover various costs associated with the offering, contribute to reserve accounts, and pay for the aircraft engines and airframes over a 270-day delivery period. InvestingPro analysis shows the company operates with a significant debt burden, though it maintains a healthy current ratio of 3.08, indicating strong ability to meet short-term obligations.

Willis Lease Finance Corporation aims to use any net proceeds it receives from this transaction to repay debt secured by the assets and for general corporate purposes. The notes are targeted at qualified institutional buyers in the United States and international investors in compliance with Regulation S under the Securities Act of 1933.

It is important to note that these notes have not been registered under the Securities Act or any state securities laws, and they will not be available for sale in the United States or to U.S. persons without registration or an exemption from registration requirements.

The company cautions against placing undue reliance on forward-looking statements contained in the press release, as these are not guarantees of future performance and are subject to various risks and uncertainties. Factors that could cause actual results to differ include industry and economic conditions, market trends, and regulatory changes.

This announcement is based on a press release statement from Willis Lease Finance Corporation and does not serve as an offer to sell or a solicitation of an offer to buy the notes. For a comprehensive analysis of WLFC’s financial health and growth prospects, investors can access detailed Pro Research Reports and additional financial metrics through InvestingPro, which covers over 1,400 US equities with in-depth analysis and actionable insights.

In other recent news, Willis Lease Finance Corporation reported its Q1 2025 earnings, showcasing a revenue increase to $157.7 million, which surpassed forecasts of $142.11 million. Despite this revenue growth, the company missed earnings per share (EPS) expectations, reporting $2.21 against a forecasted $4.01. This earnings miss was noted during the earnings call, where it was attributed to various operational factors. The company also announced that it exercised purchase rights for 30 additional LEAP engines, indicating a strategic investment in its leasing portfolio. Furthermore, Willis Lease appointed Z. Clifton Dameron as the new Senior Vice President, General Counsel, and Corporate Secretary, succeeding Dean M. Poulakidas. This leadership change aims to bolster the company’s legal oversight and corporate governance. Analysts from firms like Deutsche Bank and Wolfe Research engaged with the company during the earnings call, discussing topics such as tariffs and market dynamics. Additionally, Willis Lease emphasized its confidence in the business model and its strategic focus on sustainable aviation solutions.

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