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Willis Lease Finance Completes $390 Million ABS Offering

September 24, 2012, 06:25 AM
Filed Under: Aircraft

Willis Lease Finance Corporation reported that its wholly owned subsidiary Willis Engine Securitization Trust II (WEST II), a newly established asset backed securities (ABS) issuer, completed the sale of $390 million of senior secured notes on September 17, 2012. The proceeds of the notes will be used to repay the existing ABS notes of Willis Lease's subsidiary, Willis Engine Securitization Trust (WEST).

The WEST II ABS securities are a single class of senior notes with a fixed coupon of 5.50%, an expected maturity of 10 years, a weighted average life of 7.3 years and a final maturity of 25 years. The notes are secured by 79 aircraft engines acquired from Willis Lease at a loan to appraised value of approximately 70%.

"The closing of WEST II is a remarkable achievement for Willis Lease and demonstrates our leadership position in the engine leasing marketplace," said Charles F. Willis, CEO and Chairman. "Access to capital is one of the most important success factors for any asset-based business. Our successful track record as a previous ABS issuer, leadership position in the market, strong platform and solid reputation have all combined to provide continued access to the capital markets at competitive rates. Our access to low-cost, long-term capital is an important competitive advantage for Willis Lease. The completion of this offering, along with our newly upsized revolving credit facility, as well as our successful joint venture with Mitsui & Co. Ltd. places Willis Lease at the forefront of the global aircraft engine leasing market."

Willis Lease Finance Corporation leases spare commercial aircraft engines and aircraft to commercial airlines, aircraft engine manufacturers, air cargo carriers and maintenance, repair and overhaul facilities worldwide. These leasing activities are integrated with the purchase and resale of used and refurbished commercial aircraft engines.

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