Kroll Bond Rating Agency assigned preliminary ratings to three series of notes issued by Willis Engine Structured Trust VI, an aircraft engine ABS transaction. Willis Engine Structured Trust VI is another securitization of Willis Lease Finance and the fourth rated by KBRA. KBRA noted that Willis Lease Finance will be retaining the equity in Willis Engine Structured Trust VI as well as the equity in its previous securitizations.
Proceeds from the notes will be used to acquire 29 aircraft engines and one airframe, collectively 30 assets (the portfolio). Of the total, 27 assets are on lease to 10 lessees located in eight jurisdictions with three aircraft engines (10.5% by value) off lease. As of March 31, the portfolio had a weighted average remaining lease term of approximately five years, excluding the three off-lease assets, or 4.4 years, excluding the off-lease assets, leases with a letter of intent but not executed, and signed leases that have not been delivered. The one airframe (A319-100), representing 1% of the portfolio, is leased to easyJet Airlines in the United Kingdom. The airframe has a 2006 manufacture date and its lease ends in 2022.
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