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RESIDCO Announces Closing of $100 Million Commercial Aircraft Engine Acquisition Facility Provided by Huntington National Bank

Chicago, Illinois – RESIDCO today announced the closing of a $100 million commercial aircraft engine acquisition facility provided by Huntington National Bank, a $223 billion asset regional bank headquartered in Columbus, Ohio. This newly formed debt facility is designed to support RESIDCO’s strategic expansion within the global aviation secondary market, specifically focusing on the acquisition of high-demand commercial aircraft engines.

“As the aviation industry continues its robust recovery, the demand for engine leasing solutions and liquidity has never been higher,” said Scott Daniels, Managing Director-Aviation of RESIDCO. “We are thrilled by the trust Huntington has placed in RESIDCO’s Aircraft Engine leasing platform. This facility provides us with the necessary capital to execute our growth strategy and continue delivering value to our global airline and trading partners.”

“This significant funding is a direct result of the incredible dedication and expertise of our team, whose relentless work ethic has been the bedrock of our success and growth,” said Michael Yovkovich, President of RESIDCO. “It is a pivotal moment for our company as a whole. We are excited to start building a major, long-term relationship with Huntington and deeply appreciate the confidence they have shown in our business model and our people.”

The facility will enable RESIDCO to further leverage its deep technical expertise and asset management capabilities. By securing this $100 million commitment, RESIDCO is well-positioned to capitalize on immediate market opportunities and enhance its already substantial portfolio of mid-to-late-life commercial aircraft engines.

“We are pleased to establish this partnership with RESIDCO and provide the financing to support their acquisition goals,” said Michael Labrum, Managing Director of Lender Finance at Huntington. “RESIDCO’s specialized focus and proven track record in the aviation sector make them an ideal partner. This transaction underscores Huntington’s commitment to providing tailored financial solutions for industry leaders in the specialty finance and transportation sectors.”

Vedder Price served as legal counsel to RESIDCO on the transaction, while Chapman and Cutler LLP provided legal counsel to Huntington.

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RAIL & AERO MERGERS PROLIFERATE IN A SOUND ECONOMIC CIRCUMSTANCE

With some dissent[1] the Fed cut the overnight lending rate to a range of 3.5% to 3.75% at its December meeting. It’s the sixth consecutive reduction since September 2024 (a total rate reduction of 1.75 percentage points). The Bureau of Labor Statistics reported that November CPI rose 2.7% year over year (after increasing 3% over the 12 months ending September). Unemployment rose to 4.6% in November, up from 4.4% in September (the Labor Department will release the December jobs report in January, before the next Fed meeting, January 27-28, 2026). The Fed also restarted quantitative easing (calling it a ‘technical adjustment’) at its December meeting ‘to manage market liquidity’. Lower rates, tax cuts, and QE2 will keep the economy stable, directly influencing the transportation merger trends we are seeing across the industry in 2026.  

The UP and NS filed their comprehensive merger application with the STB (Docket No. FD 36873) on December 19. The nearly 7,000-page document can be accessed here[2]. Union Pacific CEO Jim Vena, “We look forward to working with the Surface Transportation Board as it reviews our historic application to create America’s first transcontinental railroad.” Norfolk Southern President and CEO Mark George, “This combination will bring together Union Pacific’s expansive Western reach and Norfolk Southern’s unparalleled access to Eastern manufacturing and population centers in an end-to end combination. It will create a cohesive freight rail solution with 50,000 route miles that connect 43 states and more than 100 ports.” The Board will decide by January 18, 2026, whether to accept the application for consideration or consider it incomplete. If accepted, the STB review process is expected to continue into early 2027. In another combination, the GATX and Brookfield Infrastructure transaction is expected to close in the first quarter of 2026. It will result in the largest railcar fleet in North America (242,000 railcars).

Boeing completed its acquisition of Spirit AeroSystems on December 8, 2025. Spirit was split: 15,000 personnel to Boeing, 4,0000 to Airbus. The $8.3 billion acquisition is intended to address quality issues and supply chain bottlenecks and to ramp up 737 Max production. Airbus confirmed it expects to deliver 790 units in 2025, short of its target of 820. Boeing is forecast to deliver 590 aircraft. The FAA has allowed Boeing to lift 737 MAX production to 42 per month. Boeing’s November deliveries: 32 737 MAX, the majority delivered were 737 MAX 8 and MAX 8-200 variants, with four MAX 9s completed.  Boeing’s longer-term goal is to deliver 52 aircraft per month. 737 MAX 10 and 7 certifications are expected to happen in 2026. All projections assume suppliers can keep pace.

Retirement data suggest passenger jets are typically retired after 25 to 30 years of service, but economics determine flight lifespan. The value of mid-life commercial aircraft is dependent on traffic (network needs), aircraft type, equipment availability, and maintenance condition. The Boeing 737 and Airbus A320 family narrowbody aircraft are designed for service lives of 60,000 to 75,000 flight cycles (approximately 25 years). Service life can be extended through proper maintenance and refurbishment.  Aftermarkets include smaller airlines, cargo operators, and charter services. At retirement, engines, avionics, and landing gear are valuable components that can be refurbished and resold (most of the value lies in the engines). Mid-life in service units are attractive alternatives as new deliveries continue to be delayed.

Airline and railroad transport are market bellwethers. In mid-December, the Dow Jones Transportation Average was up 10%. Third quarter GDP rose at a seasonally and inflation adjusted 4.3% annual rate[3].  To identify investment opportunities that unlock portfolio growth?  Call RESIDCO.

Glenn Davis 312-635-3161

davis@residco.com

[1] With three dissenting votes for the first time since 2014 and four nonvoting regional bank presidents opposed.

[2] AAR Rail Industry Overview, November 2025.

[3] The highest in two years.

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