Willis Lease Finance Corp. (WLFC) announced a $392.9 million fixed‑rate note offering through its wholly‑owned subsidiary, Willis Engine Structured Trust IX. The trust will issue $337.4 million in Series A notes and $55.5 million in Series B notes, with a 270‑day delivery period for the underlying collateral.
The notes are secured by 47 aircraft engines and two airframes that WLFC will acquire from the company or its subsidiaries. While the fact‑check report does not provide the age or type of the assets, the collateral represents a substantial portion of WLFC’s engine portfolio and is expected to support the notes’ credit profile. The offering does not disclose the interest rates or maturity dates, but the structure aligns with WLFC’s prior ABS transactions, which have attracted investor demand and received preliminary ratings from KBRA.
Proceeds will be used to cover offering costs, fund reserve accounts for security deposits and maintenance expenses, and provide periodic payments to WLFC over the 270‑day delivery period. The company will also use the net proceeds to repay debt collateralized by the same assets and for general corporate purposes, a strategy that balances liquidity needs with debt‑management objectives.
WLFC’s recent financial performance underscores the strategic timing of the offering. In Q3 2025, the company reported revenue of $183.4 million, up 25.4 % year‑over‑year, driven by strong demand for lease engines, higher lease rent, and a 52.8 % jump in maintenance reserve revenue. Net income rose to $24.3 million, and the company declared a seventh consecutive quarterly dividend of $0.40 per share. Despite these gains, WLFC carries significant debt, with a net cash position of –$2.24 billion over the last 12 months, making the new debt a key lever for balance‑sheet management.
Management highlighted the company’s “flywheel” business model, emphasizing continued robust demand for lease engines and opportunities for capital deployment, including expansion into aircraft leasing and investment in sustainable aviation fuel initiatives. The company also noted that higher interest rates and tariffs could impact future results, signaling a cautious outlook amid macro‑headwinds.
The offering positions WLFC to strengthen its asset base and refinance existing obligations, potentially improving leverage ratios and supporting future growth initiatives. By securing the notes against a sizable engine and airframe portfolio, WLFC aims to maintain favorable financing terms while preserving flexibility to capitalize on market opportunities in the commercial aviation leasing sector.
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