What Does Willis Lease Finance Corp (WLFC) Notes Offering Say About the Stock?

Willis Lease Finance Corp (NASDAQ:WLFC) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. The stock has gained roughly 36% year-to-date and soared almost 60% over the past six months. Analysts see more upside in Willis Lease Finance Corp (NASDAQ:WLFC) shares, forecasting a rise of at least 26% from the current level.

On May 13, Willis Lease Finance Corp announced the offering of $200 million in convertible senior notes. It said that it was expecting the offering to generate net proceeds of around $193.1 million. But the proceeds could be more since the company granted the underwriters an option to purchase up to $30 million in additional notes to cover over-allotments.

These notes mature in May 2031 and carry an interest rate of 2.50%. At maturing, investors can swap these notes for Willis Lease Finance Corp shares instead of receiving cash. For those who opt for equity instead of cash, the conversion rate is 3.7202 shares of stock per $1,000 of notes. This represents a conversion price of around $268.80, which is roughly 46% above the current WLFC stock price.

Willis Lease Finance Corp’s upsizing of the offering also demonstrates strong investor interest in the notes. The company increased the offering size from $175 million, as announced originally. Willis Lease Finance Corp plans to use the proceeds from this offering to repay amounts outstanding under its revolving credit facility.

Willis Lease Finance Corp (NASDAQ:WLFC) is a global aviation company engaged in leasing business. The company leases commercial aircraft, aircraft engines, and aircraft spare parts. It serves airlines, MRO facilities, and other parties in the aviation industry.

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