Willis Lease Finance Corp (WLFC) – Odd Lot Tender Offer – minimal upside currently

The share price shot up right after the announcement but might reverse during the course of the tender.

Current Price – $17.39;

Offer Price – $15.5 – $18;

Upside – $60 or 3.5% (if the upper pricing limit is used);

Expiration date –  16 December 2015;

No proration for odd lot holders;

SEC Filling

 

Summary:

Willis Lease Finance Corporation is offering to purchase for cash up to 516,129 shares of its outstanding common stock, pursuant to auction tenders at prices specified by the tendering stockholders of not less than $15.50 per share nor greater than $18.00 per share.

Assuming that the Offer is fully subscribed, if the Purchase Price is determined to be $15.50 per share, the minimum Purchase Price under the Offer, the approximate number of shares that will be purchased under the Offer is 516,129 shares, representing approximately 6.3% of issued and outstanding shares of the Company as of November 13, 2015. Assuming the Offer is fully subscribed, if the Purchase Price is determined to be $18.00 per share, the maximum Purchase Price under the Offer, the approximate number of shares that will be purchased under the Offer is 444,444 shares, representing approximately 5.4% of issued and outstanding shares of the Company as of November 13, 2015.

 

No proration for Odd Lot holders:

If you own, beneficially or of record, fewer than 100 shares in the aggregate, you validly tender all of these shares at or below the Purchase Price prior to the Expiration Time (and do not validly withdraw such shares) and you complete the section entitled “Odd Lots” in the Letter of Transmittal and, if applicable, in the Notice of Guaranteed Delivery, and all conditions to the Offer are satisfied or waived, we will purchase all of your shares without subjecting them to proration

 

Source of Funds:

We will use our existing cash reserves as well as borrowing under our revolving line of credit with a syndicate of banks to purchase the shares tendered in the Offer and to pay fees and expenses related to the Offer.