Willis Lease Finance Prices $200M Convertible Senior Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2026
0mins
Source: seekingalpha
- Increased Offering Size: Willis Lease Finance has raised its convertible senior notes offering from $175 million to $200 million, with expected net proceeds of approximately $193.1 million, which will strengthen the company's capital structure and support future financing needs.
- Interest Rate and Maturity: The notes carry an interest rate of 2.50% and will mature in 2031, with interest payable semi-annually, providing the company with a low-cost financing option that aids in optimizing financial expenses.
- Underwriter Arrangement: Morgan Stanley, BofA Securities, and Deutsche Bank Securities are acting as joint book-running managers for the offering, while also granting investors a 30-day option to purchase an additional $30 million in notes, enhancing market liquidity.
- Use of Proceeds: The company intends to use the net proceeds from the notes issuance to temporarily repay outstanding amounts under its revolving credit facility until deployed for general corporate purposes, a strategy that will enhance financial flexibility and operational efficiency.
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Analyst Views on WLFC
About WLFC
Willis Lease Finance Corporation, along with its subsidiaries, is a lessor and servicer of commercial aircraft and aircraft engines. The Company operates through two segments: Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment involves acquiring and leasing, primarily pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses. The Spare Parts Sales segment involves the purchase and resale of after-market engine parts, whole engines, engine modules and portable aircraft components. The Spare Parts Sales segment also enables the Company to provide end-of-life solutions for surplus aircraft and engines, as well as manage the full lifecycle of its lease assets. Its subsidiaries include WEST Engine Funding LLC, Willis Aeronautical Services, Inc., and Willis Asset Management Limited.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Four Tree Island Calls for Opposition to WLFC Proposals
- Severe Underperformance: WLFC's revenue grew approximately 160% over the past five years, yet EBITDA increased only 89%, while SG&A expenses surged by 236%, indicating management's extraction of value through excessive compensation, ultimately harming shareholder interests.
- Unfavorable Peer Comparison: WLFC has dramatically underperformed FTAI Aviation by about 431% and 629% in total shareholder returns over the last three and five years, respectively, highlighting poor corporate governance and entrenched family control that prioritize insiders over common stockholders.
- Shareholder Voting Recommendations: Independent advisory firms ISS and Glass Lewis have recommended that shareholders vote against the election of Stephen Jones and the approval of executive compensation, emphasizing the company's failure to adequately address shareholder concerns regarding pay structures and the limited frequency of votes that restrict shareholder dissent.
- Convertible Debt Impact: WLFC's recent convertible debt offering has resulted in approximately $262 million in losses for shareholders, and the proposal to triple authorized shares could further dilute existing investors, increasing market volatility and negatively impacting long-term shareholder value.
See More
Four Tree Island Calls for Opposition to WLFC Proposals
- Severe Underperformance: WLFC's revenue has grown approximately 160% over the past five years, yet EBITDA has only increased by 89%, while SG&A expenses surged by 236%, indicating management is extracting value through excessive compensation, harming shareholder interests.
- Poor Peer Comparison: WLFC has dramatically underperformed FTA Aviation by approximately 431% and 629% in total shareholder returns over the past three and five years, respectively, highlighting issues of poor corporate governance and compensation practices favoring insiders over common shareholders.
- Shareholder Voting Recommendations: While ISS and Glass Lewis support the stock split, they also recommend voting against the election of Stephen Jones and the company's executive compensation, reflecting shareholder dissatisfaction with governance and pay structures.
- Convertible Debt Impact: The recent convertible debt offering led to a 15% drop in WLFC's stock price, resulting in a market cap loss of approximately $255 million, and could lead to a 9.3% dilution of shares, further exacerbating shareholder value erosion.
See More
Investigation into Willis Lease Finance Corporation's Board for Fiduciary Breaches
- Board Investigation: Bleichmar Fonti & Auld LLP is investigating Willis Lease Finance Corporation's board and Executive Chairman Charles F. Willis IV for potential breaches of fiduciary duties related to excessive compensation payments to Mr. Willis.
- Compensation Data: Mr. Willis received approximately $6.2 million in fiscal year 2022, $10.7 million in 2023, $14.0 million in 2024, and $14.2 million in 2025, indicating a significant upward trend in his compensation, with over half being stock awards.
- Stock Option Grant: In November 2025, the compensation committee awarded Mr. Willis an option grant to purchase up to 300,000 shares, intended to retain him as Executive Chairman, raising concerns about the justification for such high compensation amidst ongoing investigations.
- Legal Options: Current shareholders of Willis Lease Finance are encouraged to submit their information to explore legal options, with BFA offering contingency-based representation, indicating potential legal recourse for shareholders affected by these practices.
See More
Willis Lease Finance Prices $200M Convertible Senior Notes Offering
- Increased Offering Size: Willis Lease Finance has raised its convertible senior notes offering from $175 million to $200 million, with expected net proceeds of approximately $193.1 million, which will strengthen the company's capital structure and support future financing needs.
- Interest Rate and Maturity: The notes carry an interest rate of 2.50% and will mature in 2031, with interest payable semi-annually, providing the company with a low-cost financing option that aids in optimizing financial expenses.
- Underwriter Arrangement: Morgan Stanley, BofA Securities, and Deutsche Bank Securities are acting as joint book-running managers for the offering, while also granting investors a 30-day option to purchase an additional $30 million in notes, enhancing market liquidity.
- Use of Proceeds: The company intends to use the net proceeds from the notes issuance to temporarily repay outstanding amounts under its revolving credit facility until deployed for general corporate purposes, a strategy that will enhance financial flexibility and operational efficiency.
See More
Willis Lease Finance Corporation Successfully Prices $200 Million Convertible Senior Notes Offering
- Increased Offering Size: Willis Lease Finance Corporation has raised the size of its 2.50% convertible senior notes offering from $175 million to $200 million, with expected net proceeds of approximately $193.1 million, which will be used to temporarily repay amounts under its revolving credit facility, thereby enhancing the company's financial flexibility.
- Conversion Rights Advantage: The initial conversion rate of the notes is set at 3.7202 shares of common stock per $1,000 principal amount, with a conversion price of approximately $268.80, representing a 40% premium over the public offering price, providing investors with potential capital appreciation opportunities and increasing market attractiveness for the company's stock.
- Redemption Flexibility: The company has the option to redeem the notes after May 21, 2029, at a cash redemption price equal to the principal amount plus any unpaid interest, incentivizing investors to hold the notes if the stock price exceeds 130% of the conversion price, thereby boosting market confidence.
- Concurrent Offering Plan: The concurrent short sale of common stock aims to provide investors with hedging opportunities, further enhancing market liquidity while ensuring the company's continued engagement in capital markets.
See More
Willis Lease Finance Plans $175M Convertible Notes Offering
- Financing Plan: Willis Lease Finance Corporation (WLFC) announced plans to raise $175 million through a public offering of convertible senior notes due 2031, reflecting the company's focus on optimizing its future capital structure.
- Over-Allotment Option: The company may allow underwriters to purchase an additional $25 million in notes to cover over-allotments, enhancing market appeal for the offering and ensuring the financing target is met.
- Use of Proceeds: Proceeds will primarily be used to temporarily repay borrowings under its revolving credit facility before being allocated to general corporate purposes, indicating the company's strategic intent to optimize its financial position and support daily operations.
- Interest Payment Arrangement: The notes will mature on May 15, 2031, with semi-annual interest payments beginning on November 15, 2026, ensuring investors receive a stable cash flow during the holding period.
See More
Four Tree Island Calls for Opposition to WLFC Proposals
- Severe Underperformance: WLFC's revenue grew approximately 160% over the past five years, yet EBITDA increased only 89%, while SG&A expenses surged by 236%, indicating management's extraction of value through excessive compensation, ultimately harming shareholder interests.
- Unfavorable Peer Comparison: WLFC has dramatically underperformed FTAI Aviation by about 431% and 629% in total shareholder returns over the last three and five years, respectively, highlighting poor corporate governance and entrenched family control that prioritize insiders over common stockholders.
- Shareholder Voting Recommendations: Independent advisory firms ISS and Glass Lewis have recommended that shareholders vote against the election of Stephen Jones and the approval of executive compensation, emphasizing the company's failure to adequately address shareholder concerns regarding pay structures and the limited frequency of votes that restrict shareholder dissent.
- Convertible Debt Impact: WLFC's recent convertible debt offering has resulted in approximately $262 million in losses for shareholders, and the proposal to triple authorized shares could further dilute existing investors, increasing market volatility and negatively impacting long-term shareholder value.
See More
Four Tree Island Calls for Opposition to WLFC Proposals
- Severe Underperformance: WLFC's revenue has grown approximately 160% over the past five years, yet EBITDA has only increased by 89%, while SG&A expenses surged by 236%, indicating management is extracting value through excessive compensation, harming shareholder interests.
- Poor Peer Comparison: WLFC has dramatically underperformed FTA Aviation by approximately 431% and 629% in total shareholder returns over the past three and five years, respectively, highlighting issues of poor corporate governance and compensation practices favoring insiders over common shareholders.
- Shareholder Voting Recommendations: While ISS and Glass Lewis support the stock split, they also recommend voting against the election of Stephen Jones and the company's executive compensation, reflecting shareholder dissatisfaction with governance and pay structures.
- Convertible Debt Impact: The recent convertible debt offering led to a 15% drop in WLFC's stock price, resulting in a market cap loss of approximately $255 million, and could lead to a 9.3% dilution of shares, further exacerbating shareholder value erosion.
See More
Investigation into Willis Lease Finance Corporation's Board for Fiduciary Breaches
- Board Investigation: Bleichmar Fonti & Auld LLP is investigating Willis Lease Finance Corporation's board and Executive Chairman Charles F. Willis IV for potential breaches of fiduciary duties related to excessive compensation payments to Mr. Willis.
- Compensation Data: Mr. Willis received approximately $6.2 million in fiscal year 2022, $10.7 million in 2023, $14.0 million in 2024, and $14.2 million in 2025, indicating a significant upward trend in his compensation, with over half being stock awards.
- Stock Option Grant: In November 2025, the compensation committee awarded Mr. Willis an option grant to purchase up to 300,000 shares, intended to retain him as Executive Chairman, raising concerns about the justification for such high compensation amidst ongoing investigations.
- Legal Options: Current shareholders of Willis Lease Finance are encouraged to submit their information to explore legal options, with BFA offering contingency-based representation, indicating potential legal recourse for shareholders affected by these practices.
See More
Willis Lease Finance Prices $200M Convertible Senior Notes Offering
- Increased Offering Size: Willis Lease Finance has raised its convertible senior notes offering from $175 million to $200 million, with expected net proceeds of approximately $193.1 million, which will strengthen the company's capital structure and support future financing needs.
- Interest Rate and Maturity: The notes carry an interest rate of 2.50% and will mature in 2031, with interest payable semi-annually, providing the company with a low-cost financing option that aids in optimizing financial expenses.
- Underwriter Arrangement: Morgan Stanley, BofA Securities, and Deutsche Bank Securities are acting as joint book-running managers for the offering, while also granting investors a 30-day option to purchase an additional $30 million in notes, enhancing market liquidity.
- Use of Proceeds: The company intends to use the net proceeds from the notes issuance to temporarily repay outstanding amounts under its revolving credit facility until deployed for general corporate purposes, a strategy that will enhance financial flexibility and operational efficiency.
See More
Willis Lease Finance Corporation Successfully Prices $200 Million Convertible Senior Notes Offering
- Increased Offering Size: Willis Lease Finance Corporation has raised the size of its 2.50% convertible senior notes offering from $175 million to $200 million, with expected net proceeds of approximately $193.1 million, which will be used to temporarily repay amounts under its revolving credit facility, thereby enhancing the company's financial flexibility.
- Conversion Rights Advantage: The initial conversion rate of the notes is set at 3.7202 shares of common stock per $1,000 principal amount, with a conversion price of approximately $268.80, representing a 40% premium over the public offering price, providing investors with potential capital appreciation opportunities and increasing market attractiveness for the company's stock.
- Redemption Flexibility: The company has the option to redeem the notes after May 21, 2029, at a cash redemption price equal to the principal amount plus any unpaid interest, incentivizing investors to hold the notes if the stock price exceeds 130% of the conversion price, thereby boosting market confidence.
- Concurrent Offering Plan: The concurrent short sale of common stock aims to provide investors with hedging opportunities, further enhancing market liquidity while ensuring the company's continued engagement in capital markets.
See More
Willis Lease Finance Plans $175M Convertible Notes Offering
- Financing Plan: Willis Lease Finance Corporation (WLFC) announced plans to raise $175 million through a public offering of convertible senior notes due 2031, reflecting the company's focus on optimizing its future capital structure.
- Over-Allotment Option: The company may allow underwriters to purchase an additional $25 million in notes to cover over-allotments, enhancing market appeal for the offering and ensuring the financing target is met.
- Use of Proceeds: Proceeds will primarily be used to temporarily repay borrowings under its revolving credit facility before being allocated to general corporate purposes, indicating the company's strategic intent to optimize its financial position and support daily operations.
- Interest Payment Arrangement: The notes will mature on May 15, 2031, with semi-annual interest payments beginning on November 15, 2026, ensuring investors receive a stable cash flow during the holding period.
See More
