Willis Lease Finance Corporation (NASDAQ: WLFC) has announced its plan to offer a total of $596 million in fixed-rate notes through its wholly-owned subsidiary, Willis Engine Structured Trust VIII (WEST). This offering comprises $524 million in aggregate principal amount of series A fixed-rate notes and $72 million in aggregate principal amount of series B fixed-rate notes. The notes will be secured by WEST's direct and indirect interests in a portfolio of 62 aircraft engines and two airframes, which will be acquired from WLFC or its other subsidiaries.
The net proceeds from the notes will be primarily allocated to pay certain fees and expenses related to the offering, deposit initial amounts in reserve accounts for security deposits, maintenance expenses, and other costs, and pay WLFC periodically over a 270-day delivery period for the consideration of the aircraft engines and airframes acquired by WEST from WLFC in connection with the financing. WLFC and its subsidiaries will utilize any net proceeds to repay debt collateralized by the assets and for general corporate purposes.
It's important to note that the notes being offered by WEST have not been and will not be registered under the Securities Act of 1933, as amended, or any other securities laws of any jurisdiction, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from registration requirements. The offering is being made only to qualified institutional buyers and non-U.S. persons in accordance with regulations. The press release emphasizes that it does not constitute an offer to sell or a solicitation of an offer to buy the notes.
The company also noted that except for historical information, the matters discussed in the press release contain forward-looking statements. As a result of these announcements, the company's shares have moved 4.7% on the market, and are now trading at a price of $140.84. If you want to know more, read the company's complete 8-K report here.
