Core Viewpoint - Willis Lease Finance Corporation (WLFC) and Blackstone Credit & Insurance (BX) have formed a strategic partnership focused on aircraft engine leasing, planning to invest over $1 billion in the next two years in both current and next-generation aircraft engines and select aircraft [1] Group 1: Partnership Details - The partnership combines WLFC's expertise in aircraft engine leasing with Blackstone's extensive private credit capabilities, specifically targeting the engine asset class [1] - WLFC is recognized as a pioneer in aircraft engine leasing and is expanding its asset management platform [1] Group 2: Investment Strategy - WLFC has identified a seed portfolio and a near-term pipeline of high-quality engine assets that are expected to be integrated into the partnership, which will provide immediate scale and diversification across various engine types and airline customers globally [1]

Core Insights - The establishment of Willis Aviation Capital (WAC) aims to manage third-party assets and capital, generating recurring management fees and supporting balance sheet deleveraging for Willis Lease Finance Corporation (WLFC) [1][3] Group 1: Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides global aviation services, including leasing large and regional spare commercial aircraft engines and auxiliary power units [5] - The company integrates its leasing activities with end-of-life solutions for engines and aviation materials through Willis Aeronautical Services, Inc. [5] Group 2: New Division and Partnerships - WAC will manage engine and aviation asset portfolios primarily funded by third-party capital, including partnerships with Blackstone Credit & Insurance ($1 billion) and Liberty Mutual Investments (up to $600 million) [3] - WAC will also oversee existing joint ventures with Mitsui & Co. and China Aviation Supplies Company, as well as select third-party aviation assets [3] Group 3: Leadership and Structure - Brian R. Hole has been appointed as Global Head of Managed Funds and Credit for WAC, bringing extensive experience from his previous roles at WLFC [4] - Dan Coulcher has been named Senior Vice President of Joint Ventures, reporting to Mr. Hole [4] Group 4: Strategic Goals - The WAC structure is designed to enhance WLFC's return profile and leverage the company's industry-leading leasing and services platform to attract partners [2][5] - The initiative aims to create durable income streams and recurring revenue from institutional funds and joint ventures, driving shareholder value [7]

Core Viewpoint - Willis Lease Finance Corporation (WLFC) and Blackstone Credit & Insurance (BXCI) have formed a strategic partnership to invest over $1 billion in aircraft engines and select aircraft over the next two years, leveraging WLFC's expertise in aircraft engine leasing and BXCI's capital resources [1][2][3] Group 1: Partnership Details - The partnership aims to deploy over $1 billion in current and next-generation aircraft engines and select aircraft [1] - WLFC has identified a seed portfolio and a near-term pipeline of high-quality engine assets, which will provide immediate scale and diversification across engine types and airline customers globally [2] - BXCI's investment is expected to accelerate the growth of WLFC's asset management business, demonstrating confidence in WLFC's ability to generate attractive returns through disciplined asset selection and active management [3] Group 2: Company Profiles - WLFC is a leading lessor of commercial aircraft engines, providing leasing services to airlines, engine manufacturers, and maintenance providers worldwide, along with various end-of-life solutions for engines [5] - BXCI is a prominent credit investor managing over $100 billion, focusing on providing investment-grade credit, non-investment grade credit, and structured investments across various sectors, including infrastructure and commercial finance [4][6]

Core Viewpoint - Willis Lease Finance Corporation has successfully completed an offering of $337.4 million in Series A Fixed Rate Notes and $55.5 million in Series B Fixed Rate Notes, secured by a portfolio of aircraft engines and airframes [1][2]. Group 1: Financial Details - The Series A Notes have a fixed coupon of 5.159% and the Series B Notes have a fixed coupon of 5.696% [2]. - The expected maturity for both Series A and Series B Notes is approximately six years, with a final maturity of 25 years [2]. - The Series A Notes were issued at a price of 99.99937% of par, while the Series B Notes were issued at 99.99686% of par [2]. Group 2: Company Overview - Willis Lease Finance Corporation specializes in leasing commercial aircraft engines and provides various aviation services, including engine maintenance and asset management [5]. - The company operates through its subsidiaries, offering services such as aircraft disassembly, parking, storage, and ground handling [5]. - Willis Sustainable Fuels aims to develop projects to decarbonize aviation [5].

Investment Partnership Announcement - Willis Lease Finance Corporation (WLFC) has closed an investment partnership with Liberty Mutual Investments (LMI) to invest up to $600 million to support WLFC's credit strategy [1] - The partnership is backed by a warehouse debt facility from Bank of America N.A. and will focus on loan and loan-like engine financings, a sector WLFC pioneered in 2021 [1] Strategic Goals and Expertise - WLFC aims to accelerate the growth of its asset management business through this partnership, leveraging LMI's long-term capital and sector expertise [2] - LMI's investment emphasizes its capability to provide comprehensive financing solutions and support strong business growth in aviation finance [3] Company Overview - WLFC specializes in leasing commercial aircraft engines and related services, including maintenance and end-of-life solutions for aviation materials [4] - The company also aims to develop projects to decarbonize aviation through its Willis Sustainable Fuels initiative [4] Liberty Mutual Investments Overview - LMI is the investment arm of Liberty Mutual Group, managing over $117 billion in long-term capital globally, focusing on building enduring businesses and driving economic growth [5]

Core Points - Willis Lease Finance Corporation (WLFC) announced the pricing of $337.4 million in Series A Fixed Rate Notes and $55.5 million in Series B Fixed Rate Notes, totaling $392.9 million [1] - The Notes will be secured by a portfolio of 47 aircraft engines and two airframes, which will be acquired from WLFC or its subsidiaries [1] - The expected maturity of the Series A and B Notes is approximately six years, with a final maturity of 25 years [2] Summary by Sections Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides global aviation services, including leasing large and regional spare aircraft engines, auxiliary power units, and aircraft [5] - The company integrates its leasing activities with engine and aircraft trading, engine lease pools, and asset management services [5] - WLFC also offers various end-of-life solutions for engines and aviation materials [5] Financial Details - The Series A Notes have a fixed coupon of 5.159%, while the Series B Notes have a fixed coupon of 5.696% [2] - The Series A and B Notes will be issued at prices of 99.99937% and 99.99686% of par, respectively [2] - The expected weighted average life of the Notes is 4.1 years [2] Regulatory Information - The Notes have not been registered under the Securities Act of 1933 and are being offered only to qualified institutional buyers [3] - The offering is conducted in compliance with Regulation S under the Securities Act for non-U.S. persons [3]

Core Points - Willis Lease Finance Corporation (WLFC) announced the offering of $337.4 million in Series A Fixed Rate Notes and $55.5 million in Series B Fixed Rate Notes through its subsidiary, Willis Engine Structured Trust IX (WEST) [1] - The Notes will be secured by interests in a portfolio of 47 aircraft engines and 2 airframes, which will be acquired from WLFC or its subsidiaries [1] - The net proceeds from the Notes will be used for fees related to the offering, reserve accounts for security deposits and maintenance expenses, and to pay WLFC for the acquired aircraft engines and airframes [2] Financial Details - The total amount of the Initial Notes being offered is $392.9 million, comprising $337.4 million in Series A Notes and $55.5 million in Series B Notes [1] - WLFC plans to use any net proceeds received to repay debt collateralized by the assets and for general corporate purposes [2] Regulatory Information - The Notes will not be registered under the Securities Act of 1933 and are being offered only to qualified institutional buyers and non-U.S. persons [3] - The offering does not constitute an offer to sell or a solicitation of an offer to buy in jurisdictions where such actions would be unlawful [4]

Core Insights - The company Willis Lease Finance (WLFC) was previously rated a hold due to its price-to-book (PB) ratio of 1.8x, which was considered high at that time [1] Group 1: Company Analysis - The company has been trading at a PB of 1.8x, indicating a valuation that may not be attractive for new investments [1] - The analysis reflects a perspective of seeking high-quality stocks that are trading at discounted prices, suggesting a focus on value investing [1] Group 2: Market Perspective - The equity markets are described as fascinating, providing an analytical overview of global market performance, which is essential for understanding investment opportunities [1]

Core Insights - Shares of Willis Lease Finance Corporation (WLFC) have declined 4.6% since the earnings report for Q3 2025, contrasting with a 1.8% decline in the S&P 500 index during the same period [1] - The company reported earnings per share (EPS) of $3.25, down from $3.37 in the same quarter last year [1] Revenue and Growth - Total revenues reached $183.4 million, a 25.4% increase from $146.2 million in the prior-year period, driven by strong lease rent and maintenance reserve revenues [2] - Lease rent revenues hit a record $76.6 million, up 17.9% year over year, while maintenance reserve revenue surged 52.8% to $76.1 million [2] Operational Performance - Income from operations was $38 million, reflecting a 12.8% increase, and pre-tax income was $43.2 million, up 25.4% compared to the same quarter last year [3] - Net income attributable to common shareholders slightly decreased to $22.9 million from $23.1 million, a decline of 1.1% due to higher expenses [3] Business Metrics - The portfolio utilization rate improved to 86%, up from 82.9% a year earlier, indicating operational strength [4] - Long-term maintenance revenues rose sharply to $29.5 million from $1.2 million in Q3 2024, reflecting effective monetization of maintenance reserves [4] Gains and Asset Management - Gains on the sale of leased equipment totaled $16.1 million, significantly higher than the $9.5 million gain recorded in the same period last year [5] - The company completed several asset purchases, acquiring 16 engines and one aircraft, while also selling 10 engines and one airframe [11] Management Insights - CEO Austin Willis emphasized the resilience of WLFC's business model amid challenging conditions, attributing success to strong demand for leasing services [6] - The decision to raise the quarterly dividend from 25 cents to 40 cents per share was presented as a vote of confidence in the company's cash-generative model [6] Financial Challenges - General and administrative expenses rose 22.9% to $49.2 million, driven by increased headcount and consultant fees [8] - Write-downs of equipment surged to $10.2 million from $0.6 million a year ago, primarily due to impairments of off-lease assets [8] - Interest expense increased 22.9% to $34.2 million, influenced by higher debt levels and rates [9] Tax Implications - The effective tax rate increased to 43.7%, up from 30.1% in Q3 2024, attributed to recent tax law changes [10] Future Plans - WLFC appointed Pascal Picano as Senior Vice President of Aircraft Leasing and Trading, indicating plans for expansion and professionalization of leasing operations [12] - The company highlighted future capital deployment plans, including investments in sustainable aviation fuel (SAF) production and additional aircraft leasing ventures [12]

Core Insights - Willis Lease Finance Corporation (WLFC) has appointed David Hooke as Senior Vice President of Mergers & Acquisitions to enhance its global strategy and portfolio growth [1][2][3] Company Overview - WLFC is a leading lessor of commercial aircraft engines and provides a range of aviation services, including leasing large and regional spare engines, auxiliary power units, and aircraft to various clients worldwide [6] - The company integrates its leasing activities with end-of-life solutions for engines and aviation materials through Willis Aeronautical Services, Inc. [6] Leadership and Experience - David Hooke brings over a decade of investment banking experience from Bank of America, where he served as Managing Director, advising on mergers and acquisitions, public offerings, and capital markets transactions [3] - Hooke has a military background as a KC-130J Aircraft Commander in the United States Marine Corps, where he held various leadership roles [4][5] Strategic Goals - The appointment of Hooke is aimed at accelerating growth through strategic acquisitions and partnerships that will strengthen WLFC's global platform [2][3]