By Angela McDaniels
Tacoma, Wash., Sept. 7 - Willis Lease Finance Corp. subsidiary Willis Engine Securitization Trust II, a newly established asset-backed securities issuer, agreed to sell $390 million of class 2012-A senior secured term notes with a 5½% coupon, according to an 8-K filing with the Securities and Exchange Commission.
The notes (/A(sf)/A(sf)) are expected to have a maturity of 10 years, a weighted average life of 7.3 years and a final maturity of 25 years.
Credit Agricole Securities (USA) Inc. is the structuring agent and a joint bookrunner. Goldman Sachs & Co. is a joint bookrunner.
The notes are secured by 79 aircraft engines being acquired from Willis Lease Finance at a loan-to-appraised value of about 70%.
The proceeds will be used to repay the floating-rate ABS notes of another Willis Lease Finance subsidiary, Willis Engine Securitization Trust, and for other general corporate purposes.
"Shortly after closing, there will be a significant reduction in restricted cash balances, and throughout the term of the notes, there will be a sharp drop in principal repayments, allowing us to better employ our cash flow from operations," chief financial officer Brad Forsyth said in a news release.
Willis leases spare commercial aircraft engines and aircraft. The company is based in Novato, Calif.
| Issuer: | Willis Engine Securitization Trust II
|
| Issue: | Class 2012-A senior secured term notes
|
| Amount: | $390 million
|
| Expected maturity: | 2022
|
| Bookrunners: | Credit Agricole Securities (USA) Inc., Goldman Sachs & Co.
|
| Coupon: | 5½%
|
| Price: | Par
|
| Pricing date: | Sept. 6
|
| Settlement date: | Sept. 17
|
| Ratings: | Standard & Poor's: A(sf)
|
| Fitch: A(sf)
|
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