Willis Lease Finance, on Oct. 31, 2024, entered into a new, $1 billion, five-year, revolving credit facility among Willis Lease, certain wholly-owned subsidiaries of Willis Lease, as guarantors, the lenders party thereto from time to time and Bank of America as administrative agent, collateral agent, swing line lender and letter of credit issuer. The credit agreement replaced the existing $500 million revolving credit agreement, dated as of June 7, 2019, among Willis Lease, the lenders party thereto from time to time and MUFG Bank as agent.
Under the credit agreement, Willis Lease may request an additional increase of the aggregate commitments from time to time up to an aggregate additional $250 million from the lenders, who may elect to make such increase available, upon the satisfaction of certain conditions.
Proceeds from the revolving credit facility may be used for general corporate purposes. The credit facility will be available on a revolving basis until Oct. 31, 2029, and Willis Lease may request to extend the maturity, subject to lender approval.
Loans under the credit agreement will bear interest based on a floating rate (term SOFR) plus a margin. In addition, Willis Lease has agreed to pay Bank of America an unused line fee, quarterly in arrears, as well as pay other fees to Bank of America and to the lenders as separately agreed upon in writing.
The credit agreement also requires Willis Lease to maintain, as of the last day of each measurement period (as defined in the credit agreement), commencing with the last day of the fiscal quarter ending Dec. 31, 2024, a consolidated interest coverage ratio (as defined in the credit agreement) of no less than 2.25 to 1.00, and a consolidated leverage ratio (as defined in the credit agreement ) of no greater than 4.25 to 1.00 through June 30, 2025 and no greater than 4.00 to 1.00 thereafter.
“We are very excited to have closed our new, expanded revolving credit facility,” Scott B. Flaherty, chief financial officer of Willis Lease, said. “Our new facility will provide incremental capital to support the growth we are experiencing across the Willis Lease platform.”
