Announcement of New Revolving Credit Facility
Willis Lease Finance (NASDAQ: WLFC) has secured a new $1.0 billion five-year revolving credit facility, replacing its existing $500.0 million agreement. The new facility, administered by Bank of America, includes an option to increase commitments by an additional $250.0 million. The credit facility will be available until October 31, 2029, with loans bearing interest based on Term SOFR plus margin. The agreement requires WLFC to maintain specific financial ratios, including a Consolidated Interest Coverage Ratio of no less than 2.25:1.00 and varying Consolidated Leverage Ratios through 2025.
Willis Lease Finance (NASDAQ: WLFC) ha ottenuto un nuovo prestito rotativo di 1,0 miliardi di dollari della durata di cinque anni, sostituendo l'accordo esistente di 500,0 milioni di dollari. Il nuovo prestito, gestito da Bank of America, include un'opzione per aumentare gli impegni di ulteriori 250,0 milioni di dollari. Il prestito sarà disponibile fino al 31 ottobre 2029, con i prestiti che porteranno interessi basati sul Term SOFR più margine. L'accordo richiede a WLFC di mantenere specifici rapporti finanziari, inclusa un rapporto di copertura degli interessi consolidato di almeno 2,25:1,00 e diversi rapporti di leva consolidati fino al 2025.
Willis Lease Finance (NASDAQ: WLFC) ha conseguido un nuevo facilidad de crédito revolvente de $1.0 mil millones a cinco años, reemplazando su acuerdo existente de $500.0 millones. La nueva facilidad, administrada por Bank of America, incluye una opción para aumentar los compromisos en otros $250.0 millones. La facilidad de crédito estará disponible hasta el 31 de octubre de 2029, con préstamos que devengan intereses basados en el Term SOFR más margen. El acuerdo requiere que WLFC mantenga ratios financieros específicos, incluyendo un Ratio de Cobertura de Intereses Consolidado de no menos de 2.25:1.00 y diversos Ratios de Apalancamiento Consolidado hasta 2025.
윌리스 리스 파이낸스 (NASDAQ: WLFC)는 기존의 5억 달러 계약을 대체하는 새로운 10억 달러 규모의 5년 만기 회전 신용 시설을 확보했습니다. 새로운 시설은 뱅크 오브 아메리카에서 관리하며, 추가로 2억 5천만 달러의 자금을 증액할 수 있는 옵션을 포함합니다. 이 신용 시설은 2029년 10월 31일까지 이용 가능하며, 대출은 Term SOFR에 마진을 더한 이자에 따라 이자를 부과합니다. 이 계약은 WLFC가 2.25:1.00 이상의 통합 이자 보상 비율과 2025년까지 다양한 통합 레버리지 비율을 유지할 것을 요구합니다.
Willis Lease Finance (NASDAQ: WLFC) a sécurisé une nouvelle ligne de crédit renouvelable de 1,0 milliard de dollars sur cinq ans, remplaçant son accord existant de 500,0 millions de dollars. La nouvelle ligne, administrée par Bank of America, inclut une option d'augmenter les engagements de 250,0 millions de dollars supplémentaires. La ligne de crédit sera disponible jusqu'au 31 octobre 2029, avec des prêts portant des intérêts basés sur le Term SOFR plus une marge. L'accord exige que WLFC maintienne des ratios financiers spécifiques, y compris un ratio de couverture des intérêts consolidé d'au moins 2,25:1,00 et des ratios de levier consolidés variables jusqu'en 2025.
Willis Lease Finance (NASDAQ: WLFC) hat eine neue 1,0 Milliarden US-Dollar umfassende revolvierende Kreditfazilität über fünf Jahre gesichert, die das bestehende 500,0 Millionen US-Dollar-Abkommen ersetzt. Die neue Fazilität, die von der Bank of America verwaltet wird, beinhaltet eine Option zur Erhöhung der Verpflichtungen um zusätzliche 250,0 Millionen US-Dollar. Die Kreditfazilität steht bis zum 31. Oktober 2029 zur Verfügung, wobei die Kredite auf dem Term SOFR plus Margin basieren. Die Vereinbarung verlangt von WLFC, bestimmte finanzielle Kennzahlen aufrechtzuerhalten, einschließlich eines konsolidierten Zinsdeckungsgrads von mindestens 2,25:1,00 und variierenden konsolidierten Verschuldungsgraden bis 2025.
- Doubled credit facility capacity from $500M to $1.0B
- Option to increase facility by additional $250M
- Extended maturity to October 31, 2029
- Enhanced financial flexibility for growth initiatives
- New debt facility increases potential leverage exposure
- Stricter financial covenants requiring specific ratio maintenance
- Additional fees including unused line fee and other lender charges
Insights
The new
The floating rate structure based on Term SOFR plus margin aligns with current market standards. The required financial covenants - maintaining a Consolidated Interest Coverage Ratio above 2.25x and Consolidated Leverage Ratio below 4.25x (reducing to 4.00x) - are reasonable for the aircraft leasing industry and provide adequate operational flexibility.
This enhanced liquidity positions WLFC well to capitalize on growth opportunities in the commercial aircraft engine leasing market, particularly as the aviation industry continues its recovery trajectory.
COCONUT CREEK, Fla., Nov. 04, 2024 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”) today reported that on October 31, 2024, the Company entered into a new,
Under the Credit Agreement, WLFC may request an additional increase of the aggregate commitments from time to time up to an aggregate additional
Proceeds from the revolving credit facility may be used for general corporate purposes. The credit facility will be available on a revolving basis until October 31, 2029, and WLFC may request to extend the maturity, subject to lender approval.
Loans under the Credit Agreement will bear interest based on a floating rate (Term SOFR) plus a margin. In addition, WLFC has agreed to pay Bank of America, N.A. an unused line fee, quarterly in arrears, as well as pay other fees to Bank of America, N.A. and to the Lenders as separately agreed upon in writing.
The Credit Agreement also requires WLFC to maintain, as of the last day of each Measurement Period (as defined in the Credit Agreement), commencing with the last day of the fiscal quarter ending December 31, 2024, a Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of no less than 2.25 to 1.00, and a Consolidated Leverage Ratio (as defined in the Credit Agreement ) of no greater than 4.25 to 1.00 through June 30, 2025 and no greater than 4.00 to 1.00 thereafter.
“We are very excited to have closed our new, expanded revolving credit facility,” said Scott B. Flaherty, the Company’s Chief Financial Officer. “Our new facility will provide incremental capital to support the growth we are experiencing across the WLFC platform.”
Willis Lease Finance Corporation
Willis Lease Finance Corporation (“WLFC”) leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.
Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and pandemics; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission.
| CONTACT: | Scott B. Flaherty |
| EVP & Chief Financial Officer | |
| 561.413.0112 |
FAQ
What is the size of WLFC's new revolving credit facility?
When does WLFC's new credit facility mature?
What financial covenants must WLFC maintain under the new credit facility?
Who is the administrative agent for WLFC's new credit facility?
