Willis Lease Finance is preparing to launch a $392.9 million securitization that will finance a portfolio of leases on 49 aircraft assets—primarily narrowbody host engines—and refinance two existing transactions from the Willis Engine Structure Trust (WEST) platform.
The WEST IX assets include 46 narrowbody host engines, which account for 97.1% of the collateral pool by value; one regional jet host engine; and two narrowbody airframes, all of which are on lease to 19 lessees located in 14 jurisdictions, according to analysts at Kroll Bond Rating Agency.
WEST IX will sell notes through two tranches of class A and B notes, both of which have an anticipated repayment date of December 2031 and a legal final maturity date of December 2050.
After expenses, monthly cash flows will pay interest to the series A and B sequentially, then principal to series A and B, respectively. After those payments, WEST IX will pay amounts needed to replenish the security deposit amount, and amounts needed to fund the credit supporting reserve account, the rating agency said.
Other structural aspects of the deal include debt service coverage ratio (DSCR) triggers, where a cash trap event will occur on any payment date if the DSCR falls below 1.15x, KBRA said.
The deal also includes a liquidity facility sized to nine months of interest due on both series of notes.
KBRA assigns an A to the class A notes.
