Willis Lease releases details on five-year $700 million revolver

By Toni Weeks

San Luis Obispo, Calif., June 9 – Willis Lease Finance Corp. released more details about its $700 million revolving credit facility, which was upsized from $450 million and extended to 2019 on Wednesday.

According to an 8-K filing with the Securities and Exchange Commission, total availability under the agreement is subject to a borrowing base calculation that includes specified percentages of the net book value of eligible aircraft engines, airframes, related equipment and other fixed assets ancillary to the service of aircraft or engines.

Loans initially bear interest at Libor plus 250 basis points. The margin may range from 150 bps to 250 bps and is based on the company’s leverage ratio.

The syndicate of 12 banks is led by Union Bank, NA as administrative agent, swingline lender, security agent and, along with Wells Fargo Securities, LLC, Bank of America Merrill Lynch and U.S. Bank NA, a joint lead arranger and joint bookrunner.

Wells Fargo Bank, NA and Bank of America NA are co-syndication agents. U.S. Bank is documentation agent. Deutsche Bank AG, New York Branch is the senior managing agent.

The new credit facility, which refinances the outstanding loans under the company’s existing and amended and restated credit agreement dated Nov. 18, 2011, is available to finance the acquisition of aircraft and aircraft engines and related equipment as well as for general working capital purposes.

“This debt offering was substantially oversubscribed,” chairman and chief executive officer Charles F. Willis said in a press release on Friday.

“Three new banks joined the facility, and all nine banks in the prior revolver either maintained or increased their commitment levels.”

Based in Novato, Calif., Willis is an independent jet engine lessor.

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