Engine lessor, Willis Lease Finance Corporation’s (Willis) wholly-owned subsidiary, Willis Engine Structured Trust III (WEST III) is issuing $335.7 million in aggregate principal amount of fixed rate notes. The notes are expected to be issued in two series, with the Series A notes to be issued in an aggregate principal amount of $293.7 million and the Series B notes in an aggregate principal amount of $42 million. The notes will be secured by, among other things, WEST III’s direct and indirect interests in a portfolio of 56 aircraft engines.
The net proceeds will be applied, in part, to pay fees and expenses related to the issuance and to pay Willis periodically over a 270-day delivery period in consideration for the aircraft engines acquired by WEST from Willis in the financing. Willis will apply the net proceeds it receives to repay certain amounts drawn under Willis’ revolving credit facility and for general corporate purposes.