Willis Lease Finance Closes $392.9 Million Fixed Rate Notes Offering Backed by Aircraft Engines and Airframes
Willis Lease Finance Secures $392.9 Million in Structured Financing
Willis Lease Finance Corporation (NASDAQ: WLFC), a leading lessor of commercial aircraft engines and a global provider of aviation services, announced the successful closing of a significant structured financing deal on December 23, 2025. The company’s wholly-owned subsidiary, Willis Engine Structured Trust IX (“WEST”), completed the offering of $392,900,000 in aggregate principal amount of fixed rate notes.
The total issuance was split into two tranches: the Series A Fixed Rate Notes, totaling $337,400,000, and the Series B Fixed Rate Notes, totaling $55,500,000. This transaction, previously announced on December 18, 2025, is a key component of WLFC’s strategy to bolster its financial structure and support ongoing growth initiatives within the specialized aviation leasing sector.
Asset-Backed Structure and Collateral
The Notes are secured by a substantial portfolio of aviation assets, which WEST is acquiring from WLFC and its subsidiaries. The collateral package underpinning the fixed rate notes includes:
- 47 commercial aircraft engines.
- Two airframes.
The acquisition of these assets by WEST is being executed pursuant to an asset purchase agreement with WLFC and its other subsidiaries. This asset-backed structure is typical for financing arrangements in the aircraft leasing industry, providing investors with security tied directly to tangible, high-value aviation equipment.
Strategic Rationale for the Issuance
As a prominent player in the engine leasing market, WLFC utilizes such structured financing to manage its capital structure and fund the expansion of its lease portfolio. The successful closing of the offering underscores investor confidence in the residual value of commercial aircraft engines and the stability of the aviation services market, despite broader economic fluctuations.
The proceeds from the issuance are expected to provide WLFC with enhanced liquidity and the financial capacity necessary to pursue new leasing opportunities and maintain its competitive edge as a global provider of specialized leasing services. The company, headquartered in Coconut Creek, Florida, specializes in providing short-term and long-term leases for commercial aircraft engines, a critical service for airlines managing maintenance schedules and fleet transitions.
Market Context and Company Position
The aviation leasing sector remains capital-intensive, making access to efficient, large-scale financing crucial. By leveraging its existing fleet assets through the WEST structure, WLFC is effectively optimizing its balance sheet. The fixed rate nature of the notes provides predictability regarding future interest expenses, insulating the company from potential volatility in short-term interest rates.
The announcement of the closing, made on December 23, 2025, confirms the execution of the company's financial strategy outlined just days prior. This type of structured debt issuance allows WLFC to continue its role as a leading lessor, supporting global airline operations with essential engine availability.
