28-Jan-2011 4:06 PM
Willis Lease increases liquidity by USD45m to position for upswing
Analysis
Willis Lease Finance Corporation, a lessor of spare commercial aircraft engines and aircraft to commercial airlines, announced the recent completion of three transactions that have bolstered its liquidity by approximately USD45 million and reduced its overall cost of funds.
The transaction details are as follows:
- Revolving commitments under the Company's primary revolving credit facility: Increased from USD240 million to USD285 million and the international group of lenders expanded.
- Loan term extension: Maturity of the its USD20 million term loan secured by Willis Engine Securitisation Trust (WEST) 2008-B1 Notes was extended by one year and will now mature 31-Dec-2011.
- Notes purchase: Willis Lease purchased USD17.9 million of WEST 2005-B1 Notes in a transaction financed by the bank which was the prior noteholder. WEST is a wholly owned subsidiary of the company, and as a result of the WEST notes purchase, the effective cost of funds associated with these notes dropped by 300 basis points.
President and CEO, Charles Willis stated: "Access to the capital markets continues to be one of our top priorities. These financing initiatives help position us to expand as the aviation market rebounds and as demand for leased assets increases."
Willis Lease Finance's shares rose 1.8% yesterday.
Selected aviation suppliers daily share price movements (% change): 27-Jan-2011
