In early March, Willis Lease Finance Corporation closed one of the largest and most complex engine sale and leaseback transactions ever completed. The transaction involves the purchase and leaseback a total of 19 jet engines with SAS Group subsidiary Scandinavian Airlines (SAS). Willis Lease purchased 11 of the engines and Dublin-based Willis Mitsui & Co Engine Support purchased the remaining eight engines. The purchase leaseback transaction is valued at approximately $120 million and was completed in mid-March.
“SAS is an important addition to our customer base, and we are delighted to provide them with the capital benefits that a sale of engines combined with a long-term leaseback affords,” said Charles F. Willis, CEO and Chairman. “This transaction represents a significant milestone for Willis Lease. We were able to combine our own financing resources with those of our joint venture partnership with Mitsui to provide funding for this large transaction, which serves to underscore the value of the Willis-Mitsui combination. Our deal team, consisting of both Willis and Mitsui members, deserves lots of credit for their structuring ability and dedication to getting the deal done.”
“We are very glad and proud to enter into this long term partnership with Willis and Willis Mitsui,” said Göran Jansson, SAS Group Chief Financial Officer. “Willis is one of the world’s largest engine lease companies and a quality brand in the industry. Part of our 4XNG plan for a profitable SAS is to increase liquidity from asset sales, and with this partnership and agreement we now deliver the first of our sales initiatives.”
Willis Lease and SAS inks 19 engine sale-leaseback deal
