Willis Lease Finance reported that following a $15.4 million charge for extinguishment of debt and derivatives termination, it lost $8.0 million in the third quarter of 2012 compared to net income of $2.4 million in the prior quarter and $1.5 million in the same quarter last year.

Willis said in the first nine months of 2012, the net loss was $3.0 million compared to earnings of $8.5 million in the first nine months of 2011.

Willis Lease noted that it completed a $390 million ABS offering of senior secured notes on September 17, 2012, resulting in a $10.1 million charge related to the termination of interest rate swaps used to hedge the prior ABS floating rate debt that was refinanced and a $5.3 million non-cash charge to write off unamortized debt issuance costs and unamortized note discount.

Highlights from the news release included:

. Lease portfolio increased 1.7% to $976.6 million from $960.5 million a year ago, with one engine purchased and three engines sold in the current quarter.

. Total revenues fell 5% to $37.5 million from $39.5 million a year ago, reflecting lower average portfolio utilization, and lower gains from sale of equipment.

. Average utilization for the third quarter was 82% compared to 82% in the second quarter and 86% in the third quarter of 2011.

. Lease rent revenues decreased 13% to $23.0 million compared to $26.5 million a year ago.

Commenting on new lease activity, Donald A. Nunemaker, president, said, “We have seen a definite increase in the amount of new lease activity during September and October.” Nunemaker continued, “For example, during the last week of September we closed ten new leases—the most we have ever closed in a single week. The increase in new lease activity has also led to improved utilization.”

To read the Willis Lease Finance news release click here.