Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three series of notes (the "Notes") issued by Willis Engine Structured Trust V ("WEST V" or the "Issuer").
WEST V represents Willis Lease Finance Corporation’s ("Willis", the "Servicer" or the "Company") sixth securitization and the third rated by KBRA. KBRA notes that Willis will be retaining the equity in WEST V and have also retained the equity in its previous securitizations.
Proceeds from the Notes will be used to acquire 57 assets, including 54 engines and three airframes (the "Portfolio"). 53 of the 57 assets in the Portfolio are on lease to 24 lessees located in 17 countries, along with 4 engines currently not subject to a lease agreement. As of January 15, 2020, the Portfolio had a remaining lease term of approximately 2.0 years, with approximately 10.5% of the Portfolio initially not subject to a lease. The three airframes (A319-100), representing 3.2% of the Portfolio, is leased to easyJet Airlines based in the United Kingdom with an initial age ranging from 13.1 to 13.4 years and a remaining lease term of 2.3 to 2.9 years. The Portfolio has an initial value of approximately $420.9 million.
The transaction benefits from sufficient credit enhancement and liquidity, as well as a dynamic structure that accelerates principal payments on the Notes in the event of weak performance.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
Initial Note Amount
Series A Notes
Series B Notes
Series C Notes
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