| Debt Obligations |
Debt Obligations Debt obligations consisted of the following: | | | | | | | | | | | | | March 31,
2026 | | December 31,
2025 | | (in thousands) | Credit facility at a floating rate of interest of one-month term Secured Overnight Financing Rate (“SOFR”) plus 2.35% at March 31, 2026, secured by engines, airframes, and loan assets. The credit facility has a committed amount of $1.75 billion at March 31, 2026, which revolves until the maturity date of April 2031. | $ | 421,000 | | | $ | 650,000 | | WEST IX Series A 2025 term notes payable at a fixed rate of interest of 5.16%, maturing in December 2050, secured by engines, airframes, and loan assets | 333,561 | | | 337,400 | | WEST IX Series B 2025 term note payable at a fixed rate of interest of 5.70%, maturing in December 2050, secured by engines, airframes, and loan assets | 54,869 | | | 55,500 | | WEST VIII Series A 2025 term notes payable at a fixed rate of interest of 5.58%, maturing in June 2050, secured by engines, airframes, and loan assets | 509,988 | | | 514,720 | | WEST VIII Series B 2025 term note payable at a fixed rate of interest of 6.07%, maturing in June 2050, secured by engines, airframes, and loan assets | 70,075 | | | 70,725 | | WEST VII Series A 2023 term notes payable at a fixed rate of interest of 8.00%, maturing in October 2048, secured by engines, airframes, and loan assets | 127,149 | | | 225,797 | | WEST VI Series A 2021 term notes payable at a fixed rate of interest of 3.10%, maturing in May 2046, secured by engines, airframes, and loan assets | 223,366 | | | 225,896 | | WEST VI Series B 2021 term notes payable at a fixed rate of interest of 5.44%, maturing in May 2046, secured by engines, airframes, and loan assets | 31,009 | | | 31,360 | | WEST VI Series C 2021 term notes payable at a fixed rate of interest of 7.39%, maturing in May 2046, secured by engines, airframes, and loan assets | 6,889 | | | 7,446 | | WEST V Series A 2020 term notes payable at a fixed rate of interest of 3.23%, maturing in March 2045, secured by engines | 207,175 | | | 210,351 | | WEST V Series B 2020 term notes payable at a fixed rate of interest of 4.21%, maturing in March 2045, secured by engines | 28,861 | | | 29,303 | | WEST V Series C 2020 term notes payable at a fixed rate of interest of 6.66%, maturing in March 2045, secured by engines | 4,918 | | | 5,538 | | WEST III Series A 2017 term notes payable at a fixed rate of interest of 4.69%, maturing in August 2042, secured by engines | 83,483 | | | 142,640 | | WEST III Series B 2017 term notes payable at a fixed rate of interest of 6.36%, maturing in August 2042, secured by engines | 11,295 | | | 19,152 | | Willis Warehouse Facility LLC (“WWFL”) credit facility was terminated during the three months ended March 31, 2026 | — | | | 82,655 | | Other fixed-rate engine notes (interest between 4.23% and 5.91%, and maturity dates between March 2032 and April 2034) | 168,146 | | | 123,685 | | | 2,281,784 | | | 2,732,168 | | | Less: unamortized debt issuance costs and note discounts | (28,079) | | | (31,830) | | | Total debt obligations | $ | 2,253,705 | | | $ | 2,700,338 | |
One-month term SOFR was 3.68% and 3.87% as of March 31, 2026 and December 31, 2025, respectively.
Certain notes payable totaling $168.1 million as of March 31, 2026 relate to failed sale-leaseback transactions secured by eight engines. During the three months ended March 31, 2026, the Company entered into two such transactions totaling $45.0 million. The Company has options to repurchase the underlying engines at predetermined prices ranging from $14.7 million to $19.3 million per engine, exercisable between July 2031 and March 2034.
In March 2026, the Company terminated its WWFL credit facility as well as amended and extended its existing revolving credit facility (Amendment No. 3), increasing total commitments from $1.0 billion to $1.75 billion and extending the maturity to April 2031. In February 2026, the Company entered into Amendment No. 2 to the Credit Agreement. Amendment No. 2 among other things, excludes certain amounts from inclusion in “Total Debt” (as defined in the Credit Agreement) that is used for purposes of calculating the “Maximum Leverage Ratio” (as defined in the Credit Agreement).
Principal outstanding at March 31, 2026 is expected to be repayable as follows:
| | | | | | | | | | Year | | (in thousands) | | 2026 | | $ | 59,265 | | | 2027 | | 158,220 | | | 2028 | | 264,805 | | | 2029 | | 372,059 | | | 2030 | | 35,358 | | | Thereafter | | 1,392,077 | | | Total | | $ | 2,281,784 | |
Virtually all of the Company’s debt requires ongoing compliance with certain financial covenants, including debt and tangible net worth ratios, minimum interest coverage ratios, and other eligibility criteria including asset type, customer and geographic concentration restrictions. The Company also has certain negative financial covenant obligations that relate to such items as liens, advances, changes in business, sales of assets, dividends and stock repurchases. Compliance with these covenants is tested either monthly, quarterly or annually, as required, and the Company was in full compliance with all financial covenant requirements at March 31, 2026.
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