Willis Lease Finance Corporation Closes on Third JOLCO Deal
Willis Lease Finance closed a $21 million financing deal for a CFM LEAP-1B28 engine, marking its third engine-backed Japanese operating lease with call option transaction. The company views the JOLCO market as a strategic opportunity to enhance its asset portfolio and secure capital from global markets. This move demonstrates WLFC's ability to access competitive financing rates and provide appealing lease and loan options to its clients.
Successful closing of a $21 million financing deal for a CFM LEAP-1B28 engine.
Continued modernization of the company's asset portfolio through JOLCO transactions.
Diversification of capital sources to strengthen financial flexibility.
Access to global capital markets for competitive financing rates.
Ability to offer attractive lease and loan alternatives to customers.
- None.
Insights
The announcement by Willis Lease Finance Corporation of closing a third Japanese operating lease with call option (JOLCO) is a strategic financial move. By securing a
An investor might take note of the repeated success in utilizing the JOLCO structure, which suggests a robust credit profile and the ability to negotiate favorable terms. This scenario usually leads to optimizing capital costs over time. Additionally, the commitment to modernizing their portfolio could signal ongoing competitiveness and potential for growth within the aviation industry—a sector that's typically capital-intensive and sensitive to economic cycles.
From an aviation industry perspective, WLFC's focus on leasing cutting-edge engine models like the CFM LEAP-1B28 is important for maintaining relevance in a sector with rapidly evolving technology requirements. Investors should appreciate the importance of leasing newer, more fuel-efficient engines, as they're becoming a standard demand among airlines looking to lower operational costs and comply with environmental regulations.
The sustained investment in diversified capital sources through instruments like JOLCO could give WLFC an edge over competitors by providing more agility in asset management and better responsiveness to market demand. This foresight might be indicative of a deeper strategic planning and execution capability within the company's leadership.
COCONUT CREEK, Fla., April 30, 2024 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”), the leading lessor of commercial aircraft engines and global provider of aviation services, announced today the closing of its third engine-backed Japanese operating lease with call option (“JOLCO”), a US
“The JOLCO market is particularly attractive to us as we continue to modernize our portfolio and diversify our sources of capital,” said Scott B. Flaherty, the Company’s EVP and Chief Financial Officer. “The successful closing of our third engine JOLCO again demonstrates the Company’s access to the global capital markets, allowing us to finance assets at competitive rates and similarly offer our customers attractive lease and loan alternatives.”
Willis Lease Finance Corporation
Willis Lease Finance Corporation 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 the COVID-19 pandemic; 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 and Chief Financial Officer | |
| sflaherty@willislease.com | |
| 561.413.0112 |
FAQ
<p>What was announced by Willis Lease Finance ?</p>
Willis Lease Finance announced the closing of its third engine-backed Japanese operating lease with call option (JOLCO) deal for a CFM LEAP-1B28 engine.
<p>When did WLFC close its first JOLCO engine transaction?</p>
WLFC closed its first JOLCO engine transaction in August of 2023.
<p>What is the interest rate of the $21 million financing?</p>
The $21 million financing deal has a 5.0% interest rate.
<p>When does the loan mature for the $21 million financing?</p>
The loan for the $21 million financing deal matures in March of 2033.
<p>What are the services offered by Willis Lease Finance ?</p>
WLFC leases spare commercial aircraft engines, provides aviation services, engine trading, asset management, end-of-life solutions, engine maintenance, aircraft maintenance, disassembly, airport services, and cargo handling.
