Willis Lease Finance Corporation (Willis), which leasing aero engines, has priced its latest asset-backed securitisation (ABS) transaction under the WEST series. The $336.7 million Willis Engine Structured Trust VI (WEST VI) comprises $278.6 million A notes, with an expected maturity of eight years, an expected weighted average life (WAL) of 6.9 years and a final maturity of 25 years, which priced at 3.104%; the $38.7 million B notes have fixed coupon of 5.438%, an expected maturity of approximately eight years, an expected WAL of 6.9 years and a final maturity of 25 years; and the $19.4 million C notes priced at 7.385%, have an expected maturity of approximately eight years, an expected WAL of 4.0 years and a final maturity of 25 years.
The Series A Notes will be issued at a price of 99.99481% of par, the Series B Notes will be issued at a price of 99.99996% of par and the Series C Notes will be issued at a price of 99.99869% of par.
The notes will be secured by a portfolio of 29 aircraft engines and one airframe. The planned closing date is May 17, 2021.
Meanwhile, Finnair is continuing to raise funds to boost liquidity. The airline has issued a €400 million four-year, senior unsecured bond that matures on 19 May 2025, which carries a fixed annual interest of 4.250 per cent and has an issue price of 99.716%.
“My warmest thanks to everyone who invested in Finnair's new bond. Due to your strong trust in Finnair, we were able to double its size compared to the previous one,” says Finnair’s CFO Mika Stirkkinen. “The new bond will strengthen our cash funds and helps us to improve our debt maturity profile.”
Application will be made for the bond to be admitted to trading on the official list of Nasdaq Helsinki. Finnair will use the proceeds of the offering to fund the purchase of the existing notes due 2022 and the remaining proceeds for general corporate purposes.
Danske Bank and Nordea Bank act as coordinators and bookrunners for bond, with OP Corporate Bank and Skandinaviska Enskilda Banken as bookrunners.
Cathay Pacific Airways has raised US$650 million by selling a US-dollar denominated bond for the first time in about 30 years. The proceeds will be used for working capital.
The bonds are unrated, according to a report from the South China Morning Post, but garnered significant interest.
The airline had hoped to raise US$500 million from the 5.25-year senior secured bond sale, which were pitched at initial price guidance of 5.20%. Due to the interest, the offer size was raised to US$650 million with price tightened to 4.875%.