Willis Lease Finance Corporation (NASDAQ: WLFC), a prominent lessor of commercial aircraft engines, announced on December 23, 2025, the successful closing of a substantial offering of fixed-rate notes totaling $392.9 million. This issuance was executed through its wholly-owned subsidiary, Willis Engine Structured Trust IX (WEST), which has raised $337.4 million through Series A Fixed Rate Notes and an additional $55.5 million from Series B Fixed Rate Notes.

The proceeds from this offering are secured by WEST's direct and indirect interests in a portfolio comprising 47 aircraft engines and two airframes. These assets will be acquired from WLFC or its subsidiaries in alignment with an asset purchase agreement.

2. Details of the Notes

Series A and Series B Notes

The offering includes two distinct tranches:

Series A Fixed Rate Notes: Totaling $337.4 million, these notes carry a fixed coupon rate of 5.159% and were issued at a price of 99.99937% of par.

Series B Fixed Rate Notes: Amounting to $55.5 million, these notes have a slightly higher fixed coupon rate of 5.696% and were issued at a price of 99.99686% of par.

Both series of notes have an expected maturity period of approximately six years, with a weighted average life projected at 4.1 years, and a final maturity extending to 25 years.

3. Regulatory Compliance and Restrictions

It is important to note that the Notes have not been registered under the Securities Act of 1933 and are not permitted to be offered or sold within the United States or to U.S. persons unless a proper exemption from registration requirements is obtained. The offering is exclusively available to qualified institutional buyers, as defined under Rule 144A of the Securities Act, and to non-U.S. persons outside of the United States in compliance with Regulation S.

4. Strategic Positioning in Aviation Services

Willis Lease Finance Corporation continues to solidify its position as a leader in the aviation sector through a diverse range of offerings. The company engages in leasing commercial aircraft engines, auxiliary power units, and aircraft to a spectrum of clients including airlines, aircraft engine manufacturers, and maintenance providers across the globe.

Moreover, WLFC's integrated services encompass engine and aircraft trading, asset management, and various end-of-life solutions for aviation materials, thereby enhancing its competitive edge in the market. The company’s initiatives also extend to sustainable aviation solutions, with the establishment of Willis Sustainable Fuels aimed at decarbonizing the aviation industry.

5. Conclusion

The successful closing of $392.9 million in fixed-rate notes marks a significant milestone for Willis Lease Finance Corporation, further enabling the company to expand its fleet and service offerings. As the aviation industry continues to recover and adapt to new challenges, WLFC is well-positioned to leverage its extensive asset base and expertise to capitalize on emerging opportunities in the market. Investors and stakeholders will be keenly watching the company's progression as it navigates the evolving landscape of aviation finance.

Original press release