Willis Lease Finance Corporation Announces Partnership with Liberty Mutual Investments

Rhea-AI Summary

Willis Lease Finance Corporation (NASDAQ: WLFC) closed a partnership with Liberty Mutual Investments to provide up to $600 million to fund WLFC’s credit strategy, focusing on loan and loan-like engine financings.

The capital commitment is supported by a warehouse debt facility from Bank of America N.A. and aims to scale WLFC’s asset management and credit platform by combining WLFC’s operating capabilities with LMI’s long-term capital.

Positive

• $600 million committed to WLFC credit strategy
• Warehouse debt facility provided by Bank of America N.A.
• Partnership with Liberty Mutual Investments adds long-term institutional capital

Negative

• Increased exposure to loan and loan-like engine financings
• Concentration risk from a single inaugural partner committing up to $600 million

Key Figures

Credit partnership capacity $600 million Maximum capital to fund WLFC credit strategy with Liberty Mutual

Liberty AUM $117 billion Long-term capital invested globally by Liberty Mutual Investments

Q3 2025 revenue $183.4M Third quarter 2025 revenue as previously reported

Q3 2025 pre-tax income $43.2M Third quarter 2025 pre-tax income, up year over year

Quarterly dividend $0.40 per share Raised recurring dividend payable Nov 26, 2025

Lease-assets book value $3,302.6M Lease-assets book value as of Sept 30, 2025

WMES revolver size $750.0 million Five-year revolving credit facility for WMES JV

WEST IX notes $392.9 million Total fixed-rate notes priced by WEST IX subsidiary

Market Reality Check

$134.12 Last Close

Volume Volume 37,826 vs. 20-day average 44,174 (relative volume 0.86) shows no outsized trading interest pre‑announcement. normal

Technical Shares at $134.65 are trading below the $142.34 200-day MA and sit 41.37% under the 52-week high.

Peers on Argus

WLFC was down 1.35% while peers showed mixed moves: CTOS -1.16%, HTZ -0.78%, VSTS -4.57%, PRG roughly flat and RCII unchanged, indicating stock-specific factors rather than a clear sector trend.

Common Catalyst Only one peer (HTZ) had same-day news tied to a marketing event, suggesting no shared sector catalyst.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 11	Secured note pricing	Positive	-2.3%	Priced <b>$392.9M</b> WEST IX fixed-rate notes backed by engine portfolio.
Dec 10	Debt offering launch	Positive	+3.6%	Announced offering of <b>$392.9M</b> fixed-rate notes via WEST IX structure.
Nov 10	Executive hire	Positive	+1.0%	Appointed new SVP M&A to drive portfolio growth across businesses.
Nov 04	Earnings release	Positive	-6.0%	Reported strong Q3 <b>$183.4M</b> revenue and raised dividend to <b>$0.40</b>.
Nov 03	JV credit facility	Positive	-1.8%	WMES entered new <b>$750.0M</b> five‑year revolving credit facility.

Pattern Detected

Recent history shows WLFC often experiencing negative or muted price reactions following fundamentally positive financing, earnings, and partnership updates.

Recent Company History

Over the last few months, WLFC has focused on scaling its engine financing and balance sheet flexibility. A $750.0M revolving credit facility for the WMES joint venture on Oct 31, 2025 and a $392.9M fixed-rate note issuance via WEST IX in December expanded funding tied to its engine portfolio. Q3 2025 results showed revenue of $183.4M and higher pre-tax income, alongside a raised $0.40 quarterly dividend. The new Liberty Mutual partnership continues this theme of leveraging institutional capital to grow credit and asset management platforms.

Market Pulse Summary

This announcement adds a notable external capital source, with Liberty Mutual committing up to $600 million to WLFC’s engine-focused credit strategy, supported by a warehouse debt facility from Bank of America. It builds on recent financings and strong Q3 2025 results, reinforcing a shift toward fee and asset management growth. Investors may watch future deployment levels, credit performance of engine loans, and how this platform complements existing securitizations and JV facilities.

Key Terms

warehouse debt facility financial

"supported by a warehouse debt facility provided by Bank of America N.A."

A warehouse debt facility is a short-term line of credit that a lender uses to temporarily fund loans or receivables until those assets are sold or packaged and moved off the balance sheet. Think of it like a storage bay that lets a seller finance inventory while it waits for a buyer. Investors watch these facilities because they reveal how a lender pays for new business, affect liquidity and leverage, and can quickly amplify losses if borrowers or market demand dry up.

revolving credit lease financial

"business WLFC pioneered with its first revolving credit lease in 2021."

A revolving credit lease is a flexible financing setup that combines a reusable line of credit with lease-style payments for equipment or property, letting a company draw, repay and redraw funds as needs change while effectively renting the asset. For investors it matters because it affects liquidity and ongoing cash obligations—similar to a credit card for assets—so it can change a company’s risk profile, apparent debt levels, and cost of capital.

asset management business financial

"continue building our credit strategy and accelerate growth of our asset management business"

An asset management business is a company that professionally invests and looks after other people’s or institutions’ money, choosing stocks, bonds and other investments on their behalf. Think of it as a gardener who tends different plants (investments) for a variety of clients and charges for care; its revenue and reputation depend on how well those investments grow and how much money clients entrust it, so performance and client flows directly affect its profitability and value to investors.

aviation finance financial

"pursue adjacent opportunities across aviation finance"

Aviation finance covers the ways airlines, lessors and manufacturers obtain and manage money for aircraft and related operations, using loans, leases, insurance and capital-market deals to buy, operate, or retire planes. It matters to investors because these financing choices determine an airline’s costs, cash flow and flexibility — like whether a household buys or rents a home — and so directly affect profitability, risk and the value of related stocks and bonds.

AI-generated analysis. Not financial advice.

COCONUT CREEK, Fla., Dec. 18, 2025 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC”), the leading lessor of commercial aircraft engines and a global provider of aviation services, today announced the closing of an investment partnership that will invest up to $600 million to fund WLFC’s growing credit strategy. This inaugural partnership with Liberty Mutual Investments (“LMI”), the investment firm for Liberty Mutual Group, is supported by a warehouse debt facility provided by Bank of America N.A. and will invest in loan and loan-like engine financings, a business WLFC pioneered with its first revolving credit lease in 2021.

“We are excited to partner with an incredibly reputable firm like LMI to continue building our credit strategy and accelerate growth of our asset management business,” said Brian R. Hole, Global Head of Managed Funds and Credit of WLFC. “LMI’s trust in us demonstrates the credibility of our platform and the strength of our position in this space.”

“At Liberty Mutual Investments, we partner with specialist platforms where our long-term, flexible capital and sector expertise can help scale strong businesses. Willis is a recognized leader in aviation engines and services, and through this partnership, we will combine their operating strengths with our aviation investing capabilities to support growth and pursue adjacent opportunities across aviation finance,” said Alex Kayvanfar, Head of Capital Solutions and John Kim, Head of Alternative Credit, at Liberty Mutual Investments.

LMI’s investment was led by the firm's Capital Solutions and Alternative Credit businesses, emphasizing LMI's ability to provide holistic financing solutions and support world-class partners as they build enduring businesses. LMI invests more than $117 billion of long-term capital globally across its integrated platform on behalf of Liberty.   

About Willis Lease Finance Corporation

Willis Lease Finance Corporation leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services. Willis Sustainable Fuels intends to develop, build and operate projects to help decarbonize aviation.

About Liberty Mutual Investments

Liberty Mutual Investments (LMI) is the investment firm for Liberty Mutual Group (Liberty), a global insurance and capital solutions partner. With deep expertise in liquid, credit, and alternative strategies, LMI invests more than $117B of capital globally, taking a long-term approach across its integrated platform. LMI has a clear purpose: build enduring businesses side-by-side with our partners, drive economic growth, and generate superior risk-adjusted returns that power Liberty’s strategy and secure its promises.

Liberty Mutual Group Asset Management Inc. does business under the name Liberty Mutual Investments.
For more information, visit https://www.libertymutualinvestments.com/ 

Forward-Looking Statements

Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. By their nature, forward-looking statements involve a number of inherent risks, uncertainties and assumptions and are subject to change in circumstances that are difficult to predict and many of which are outside of our control. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. Our actual results may differ materially from the results discussed, either expressly or implicitly, in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and natural disasters; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors, as well as the impact of new or increased tariffs; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing and current reports filed with the Securities and Exchange Commission. It is advisable, however, to consult any further disclosures the Company makes on related subjects in such filings. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

CONTACT:	Lynn Mailliard Kohler
	Director, Global Corporate Communications
	415.328.4798

FAQ

What did WLFC announce on December 18, 2025 regarding new funding?

WLFC announced a partnership with Liberty Mutual Investments to invest up to $600 million in its credit strategy.

How is the WLFC–Liberty Mutual Investments deal financed?

The investment is supported by a warehouse debt facility provided by Bank of America N.A.

What will WLFC use the Liberty Mutual Investments capital for?

The capital will fund WLFC’s growing loan and loan-like engine financings and expand its asset management business.

Does the partnership change WLFC’s business focus?

The partnership emphasizes scaling WLFC’s credit strategy and accelerating growth in asset management.

Who led Liberty Mutual Investments’ participation in the WLFC partnership?

LMI’s participation was led by its Capital Solutions and Alternative Credit businesses.