Willis Lease Finance Corporation Closes Three Additional JOLCO Deals, Bringing Total JOLCO Financings to Nearly $120M

Rhea-AI Summary

Willis Lease Finance (NASDAQ: WLFC) has successfully closed three new Japanese operating lease with call option (JOLCO) transactions worth $64.8 million. The deals include financing for two engines in Q1 2025 (PW1127GA-JM and PW1133G-JM) maturing in 2033, and a LEAP-1A engine in April 2025 maturing in 2034.

These new transactions bring WLFC's total JOLCO financing portfolio to approximately $119.8 million since their first JOLCO engine transaction in August 2023. As the leading lessor of commercial aircraft engines, WLFC leverages these global capital sources to provide airlines with competitive lease and financing solutions.

The company's services encompass:

• Engine and aircraft leasing
• Trading and asset management
• Maintenance and repair services
• Ground handling and FBO services

Positive

• Secured $64.8M in new JOLCO financing through three transactions in Q1-Q2 2025
• Total JOLCO financing portfolio expanded to $119.8M, demonstrating strong funding capabilities
• Successfully diversified financing sources through Japanese market penetration
• Strategic financing of high-demand engine types (PW1127GA-JM, PW1133G-JM, LEAP-1A)
• Extended debt maturity profile with loans maturing in 2033-2034

Negative

• Increased debt obligations with new financing arrangements
• Exposure to market risks including oil prices, inflation, and interest rates as mentioned in risk factors
• Dependency on airline industry health and global economic conditions

Insights

Financial Analyst

WLFC secured $64.8M in engine financing through JOLCOs, bringing total to $119.8M and strengthening their diversified funding strategy.

Willis Lease Finance Corporation (WLFC) has secured $64.8 million in financing through three Japanese operating lease with call option (JOLCO) transactions. This brings their total JOLCO financings to approximately $119.8 million since their first such transaction in August 2023.

The financing covers three specific aircraft engines: two transactions closed in Q1 2025 for PW1127GA-JM and PW1133G-JM engines maturing in 2033, while a third for a LEAP-1A engine closed in April 2025 maturing in 2034.

According to WLFC's EVP and CFO Scott Flaherty, "The JOLCO market remains an attractive way to diversify financing options." This diversification strategy reduces reliance on single funding channels and enhances the company's financial flexibility. The company explicitly states these arrangements enable them to "offer airline customers compelling lease and financing solutions."

The 8-9 year maturity timeframes provide WLFC with longer-term financing stability for these assets, which aligns well with the company's business model as a lessor of commercial aircraft engines and provider of aviation services.

This continued expansion of JOLCO financing demonstrates WLFC's ability to successfully access Japanese capital markets, deepening relationships with Japanese counterparties as noted in the press release. For a capital-intensive business like aircraft engine leasing, diverse funding sources represent a strategic advantage.

COCONUT CREEK, Fla., April 29, 2025 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”), the leading lessor of commercial aircraft engines and global provider of aviation services, today announced the closing of three Japanese operating lease with call option (“JOLCO”) transactions, totaling US$64.8 million in financing. Two of the loans closed in the first quarter of 2025 for a PW1127GA-JM engine and a PW1133G-JM engine, respectively, and mature in 2033. The third loan closed in April of 2025 for a LEAP-1A engine and matures in 2034. These transactions bring WLFC’s total JOLCO financings to approximately US$119.8 million.

“The JOLCO market remains an attractive way to diversify financing options and we’re proud to deepen our relationship with Japanese counterparties,” said Scott B. Flaherty, WLFC EVP and Chief Financial Officer. “Through global capital sources like this, WLFC is able to offer our airline customers compelling lease and financing solutions.”

WLFC closed its first JOLCO engine transaction in August of 2023.

Willis Lease Finance Corporation
Willis Lease Finance Corporation (“WLFC”) 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 engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. 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.

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. 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 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 the COVID-19 pandemic; 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; 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:	Scott B. Flaherty
	EVP and Chief Financial Officer
	sflaherty@willislease.com 561.413.0112

FAQ

How much did Willis Lease Finance (WLFC) raise through JOLCO financing in 2025?

Willis Lease Finance raised $64.8 million through three JOLCO transactions in 2025, with two deals closing in Q1 2025 for PW1127GA-JM and PW1133G-JM engines, and a third in April 2025 for a LEAP-1A engine.

What is the total value of WLFC's JOLCO financings as of April 2025?

Willis Lease Finance's total JOLCO financings reached approximately $119.8 million as of April 2025, following their first JOLCO engine transaction in August 2023.

When do Willis Lease Finance's (WLFC) new JOLCO loans mature?

The two JOLCO loans closed in Q1 2025 mature in 2033, while the third loan closed in April 2025 matures in 2034.

What types of engines did WLFC finance through JOLCO in 2025?

WLFC financed three engines through JOLCO in 2025: a PW1127GA-JM engine, a PW1133G-JM engine, and a LEAP-1A engine.

How is Willis Lease Finance (WLFC) using JOLCO financing for business growth?

WLFC is using JOLCO financing to diversify its funding sources and provide compelling lease and financing solutions to airline customers through Japanese capital markets.