EXHIBIT A
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 18-Jan-00
Current Calculation Date 13-Jan-00
Previous Payment Date 15-Dec-99
Previous Calculation Date 9-Dec-99
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1. Account Activity Summary between Calculation Dates
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Prior Deposits Withdrawals Balance on
Balance Calculation Date
9-Dec-99 13-Jan-00
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Expense Account 1,146,318.95 5,617,479.53 (2,195,288.66) 4,568,509.82
Collection Account 12,565,223.62 10,296,107.29 (12,549,181.99) 10,312,148.92
Aircraft Purchase Account - - - -
Liquidity Reserve cash balance 25,000,000.00 - - 25,000,000.00
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Total 38,711,542.57 15,913,586.82 (14,744,470.65) 39,880,658.74
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2. Analysis of Expenses Account Activity
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Opening Balance on Previous Calculation Date 1,146,318.95
Transfer from Collection Account on previous Payment Date 5,601,794.23
Permitted Aircraft Accrual
Interim Transfer to Collection Account
Interest Income 15,685.30
Balance on current Calculation Date
- Payments on previous payment date (514,012.03)
- Interim payments (1,681,276.63)
- other
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Balance on current Calculation Date 4,568,509.82
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3. Analysis of Collection Account Activity
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Opening Balance on Previous Calculation Date 12,565,223.62
Collections during period
- lease rentals 8,076,002.85
- maintenance reserves 989,584.35
- other leasing income 1,071,847.69
- interest income 158,672.40
- interim transfer from Expense A/C -
Transfers from Aircraft Purchase Account -
Drawings under Credit or Liquidity Enhancement Facilities -
Repayment of Drawings under Credit or Liquidity Enhancement Facilities -
Transfer to Expense Account on previous Payment Date
- Required Expense Amount (5,601,794.23)
- Permitted Aircraft Modifications
Net Swap payments on previous Payment Date (531,250.04)
Aggregate Note Payments on previous Payment Date (6,416,137.72)
Interim Transfer to Expense Account
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Balance on current Calculation Date 10,312,148.92
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Analysis of Liquidity Reserve Amount
First Collection Account Reserve 15,000,000.00
Second Collection Account Reserve 10,000,000.00
Morgan Stanley Facility 10,000,000.00
ILFC Facility
- Letter of Credit 10,000,000.00
- Cash Security Deposits 20,038,351.00 30,038,351.00
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Liquidity Reserve Amount 65,038,351.00
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Minimum Liquidity Reserve Amount 15,000,000.00
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MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 18-Jan-00
Current Calculation Date 13-Jan-00
Previous Payment Date 15-Dec-99
Previous Calculation Date 9-Dec-99
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Balance in Collection Account 10,312,148.92
Liquidity Reserve Amount 65,038,351.00
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Available Collections 75,350,499.92
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3. Analysis of Collection Account Activity (Continued)
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Analysis of Current Payment Date Distributions
(I) Required Expense Amount 2,673,089.18
(II) a) Class A Interest but excluding Step-up 4,021,675.13
b) Swap Payments other than subordinated swap payments (205,409.72)
(iii) a) Repayment of Primary Eligible Credit Facilities -
b) First Collection Account top-up (Minimum liquidity reserve $15 m) 15,000,000.00
(iv) Class A Minimum principal payment -
(v) Class B Interest 609,249.21
(vi) Class B Minimum principal payment 326,207.94
(vii) Class C Interest 574,826.87
(viii) Class C Minimum principal payment -
(ix) Class D Interest 797,500.00
(x) Class D Minimum principal payment -
(xi) a) Secondary Eligible Credit Facilities (ILFC and Morgan Stanley Facilities) -
b) Second collection account top-up 50,038,351.00
(xii) Class A Scheduled principal -
(xiii) Class B Scheduled principal -
(xiv) Class C Scheduled principal 23,923.00
(xv) Class D Scheduled principal -
(xvi) Permitted accruals for Modifications
(xvii) Step-up interest -
(xviii) Beneficial interest -
(xix) Class A Supplemental principal 1,491,087.32
(xx) Class B Supplemental principal -
(xxi) Class D Redemption Price -
(xxii) Class C Redemption Price -
(xxiii) Class B Redemption Price -
(xxiv) Class A Redemption Price -
(xxv) Subordinated Swap payments -
(xxvi) all remaining amounts to holders of Beneficial interests
Total Payments with respect to Payment Date 75,350,499.92
less collection Account Top Ups (iii) (b) and (xi) (b) above 65,038,351.00
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10,312,148.92
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MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 18-Jan-00
Current Calculation Date 13-Jan-00
Previous Payment Date 15-Dec-99
Previous Calculation Date 9-Dec-99
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4. Payments on the Notes by Subclass
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Subclass Subclass Subclass
(a) Floating Rate Notes A-1 A-2 B-1
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Applicable LIBOR 6.46250% 6.46250% 6.4625%
Applicable Margin 0.2100% 0.3500% 0.6500%
Applicable Interest Rate 6.67250% 6.81250% 7.11250%
Day Count Act/360 Act/360 Act/360
Actual Number of Days 34 34 34
Interest Amount Payable 2,520,722.22 1,500,952.91 609,249.21
Step-up Interest Amount Payable - NA NA
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Total Interest Paid 2,520,722.22 1,500,952.91 609,249.21
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Expected Final Payment Date 15-Mar-00 15-Sep-05 15-Mar-13
Excess Amortisation Date 15-Mar-00 15-Apr-98 15-Apr-98
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Original Balance 400,000,000.00 340,000,000.00 100,000,000.00
Opening Outstanding Principal Balance 400,000,000.00 233,283,560.00 90,697,700.84
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Extended Pool Factors 100.00% 84.20% 96.71%
expected Pool Factors 100.00% 76.50% 92.79%
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Extension Amount - - 326,207.94
expected Pool Factor Amount - - -
Surplus Amortisation - 1,491,087.32 -
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Total Principal Distribution Amount - 1,491,087.32 326,207.94
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Redemption Amount
- - amount allocable to principal
- - amount allocable to premium
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Closing Outstanding Principal Balance 400,000,000.00 231,792,472.68 90,371,492.90
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(b) Fixed Rate Notes C-1 D-1
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Applicable Interest Rate 6.90000% 8.70000%
Day count 30 / 360 30 / 360
Number of Days 30 30
Interest Amount Payable 574,826.87 797,500.00
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Total Interest Paid 574,826.87 797,500.00
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Expected Final Payment Date 15-Mar-13 15-Mar-14
Excess Amortisation Date 15-Mar-13 15-Mar-10
Original Balance 100,000,000.00 110,000,000.00
Opening Outstanding Principal Balance 99,969,890.00 110,000,000.00
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Extended Pool Factors 100.00% 100.00%
expected Pool Factors 99.95% 100.00%
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Extended Amount - -
expected Pool Factor amount 19,890.00 -
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Surplus Amortisation 4,033.00
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Total Principal Distribution Amount 23,923.00 -
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Redemption Amount - -
- - amount allocable to principal - -
- - amount allocable to premium - -
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Closing Outstanding Principal Balance 99,945,967.00 110,000,000.00
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MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 18-Jan-00
Current Calculation Date 13-Jan-00
Previous Payment Date 15-Dec-99
Previous Calculation Date 9-Dec-99
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5. Floating Rate Note information for next Interest Accrual Period
Start of Interest Accrual Period 18-Jan-00
End of Interest Accrual Period 15-Jun-99
Reference Date 14-Jan-00
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A-1 A-2 B-1
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Applicable LIBOR 5.78125% 5.78125% 5.78125%
Applicable Margin 0.2100% 0.3500% 0.6500%
Applicable Interest Rate 5.99125% 6.1313% 6.4313%
Actual Pool Factor 100.00% 68.17% 90.37%
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Fixed Rate Notes C-1 D-1
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Actual Pool Factor 99.95% 100.00%
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6. Payments per $ 100,000 Inital Outstanding Principal Balance of Notes
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(a) Floating Rate Notes A-1 A-2 B-1
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Opening Outstanding Principal Balance 100,000.00 68,612.81 90,697.70
Total Principal Payments - 438.56 326.21
Closing Outstanding Principal Balance 100,000.00 68,174.26 90,371.49
Total Interest 630.18 441.46 609.25
Total Premium - - -
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(b) Fixed Rate Notes C-1 D-1
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Opening Outstanding Principal Balance 99,969.89 100,000.00
Total Principal Payments 23.92 -
Closing Outstanding Principal Balance 99,945.97 100,000.00
Total Interest 574.83 725.00
Total Premium - -
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Morgan Stanley Aircraft Finance
Comparison of Actual to Date Cashflows versus Prospectus
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% of Assumed Gross
Lease Revenues
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15-Jan-00 Actual To Assumed* Variance Actual Assumed* Variance
15-Jan-00 To Date
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Cash Collections
Gross Lease Rentals 8,076,003 218,088,479 243,409,705 (25,321,226) 89.6% 100.0% -10.4%
Other Cash Received 16,402 3,203,631 3,203,631 1.3% 0.0% 1.3%
Security Deposits 490,000 4,496,650 4,496,650 1.8% 1.8%
Repossession Costs - Actual 1,573 (2,088,458) (10,953,437) 8,864,979 -0.9% -4.5% 3.6%
Repossession Costs - Accrued (1) (93,275) (93,275) 0.0% 0.0% 0.0%
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Net Lease Rentals 8,583,976 223,607,027 232,456,268 (8,849,241) 91.9% 95.5% -3.6%
Maintenance Receipts 989,584 31,388,873 0 31,388,873 12.9% 0.0% 12.9%
Maintenance Expenses- Actual (1,591,451) (19,450,579) 0 (19,450,579) -8.0% 0.0% -8.0%
Maintenance Expenses - Accrued 99,690 (5,827,687) (5,827,687) -2.4% 0.0% -2.4%
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Net Maintenance (502,177) 6,110,607 0 6,110,607 2.5% 0.0% 2.5%
Interest Received 174,358 4,163,362 2,615,262 1,548,099 1.7% 1.1% 0.6%
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Total Cash Collections 8,256,158 233,880,996 235,071,530 (1,190,535) 96.1% 96.6% -0.5%
Cash Expenses
Cash Operating Expenses
- Insurance, re-leasing and other costs
- Actual 0 (1,616,002) (8,519,340) 6,903,337 -0.7% -3.5% 2.8%
- Insurance, re-leasing and other costs
- Accrued (106,667) (206,678) (206,678) -0.1% 0.0% -0.1%
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subtotal (106,667) (1,822,680) (8,519,340) 6,696,659 -0.7% -3.5% 2.8%
SG&A
- Servicer Fees (349,129) (8,974,692) (10,619,250) 1,644,558 -3.7% -4.4% 0.7%
- Other Servicer provider fees and Overhead
- Actual (254,773) (5,065,320) (6,092,835) 1,027,515 -2.1% -2.5% 0.4%
- Other Servicer provider fees and Overhead
- Accrued 93,471 (20,002) (20,002) 0.0% 0.0% 0.0%
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subtotal (510,431) (14,060,014) (16,712,085) 2,652,070 -5.8% -6.9% 1.1%
Interest Payments (Net of Swap Payments) (5,797,841) (127,251,318) (126,553,809) (697,509) -52.3% -52.0% -0.3%
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Total Cash Expenses & Interest Payments (6,414,939) (143,134,012) (151,785,233) 8,651,221 -58.8% -62.4% 3.6%
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Net Cash Collections 1,841,218 90,746,983 83,286,297 7,460,686 37.3% 34.2% 3.1%
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Exceptional Items
- THY Note Distribution 27,143,085 27,143,085 0 11.2% 11.2% 0.0%
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Cash Collections Available for Distribution 1,841,218 117,890,068 110,429,382 7,460,686 48.4% 45.4% 3.1%
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Principal Payments
A-1 0 0 0 0 0.0% 0.0% 0.0%
A-2 1,491,087 108,207,527 100,746,842 7,460,685 44.5% 41.4% 3.1%
B-1 326,208 9,628,507 9,628,507 (0) 4.0% 4.0% 0.0%
C-1 23,923 54,033 54,033 0 0.0% 0.0% 0.0%
D-1 0 0 0 0 0.0% 0.0% 0.0%
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subtotal 1,841,218 117,890,067 110,429,382 7,460,685 48.4% 45.4% 3.1%
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Total Payments to Noteholders 1,841,218 117,890,067 110,429,382 7,460,685 48.4% 45.4% 3.1%
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Benefical Interest Distributions 0 0 0 0 0.0% 0.0% 0.0%
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*Assumed Cash Collections and Cash Expenses have been adjusted for non-delivery of an aircraft.
Total Accrued Expenses on Payment Date: 15-Jan-00 (6,147,642)
Page 1
Morgan Stanley Aircraft Finance
Comparison of Actual to Date Cashflows versus Prospectus
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Coverage Ratios
Closing Actual Assumed*
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Cash Collections Available for Distribution 117,890,068 110,429,382
Add Back Interest and Swap Payments 127,251,318 126,553,809
Add Back Permitted Accruals 1,600,000
a Net Cash Collections(excl. interest and swap pymts) 246,741,386 236,983,191
b Swaps 12,220,962 6,814,917 5,999,708
c Class A Interest 73,185,799 77,551,298 67,619,558
d Class A Minimum 15,221,945 22,188,410 22,188,410
e Class B Interest 10,960,825 11,443,862 9,955,144
f Class B Minimum 9,628,507 9,628,507 8,653,844
g Class C Interest 12,946,399 12,879,732 11,155,000
h Class C Minimum 175 175 175
I Class D Interest 17,937,333 17,864,000 15,471,500
j Class D Minimum - - -
k Class A Scheduled - - -
l Class B Scheduled - - -
m Class C Scheduled 53,858 53,858 3,228
n Class D Scheduled - - -
o Permited Aircraft Modifications 1,600,000 - -
p Class A Supplemental 92,985,582 78,558,432 68,379,981
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Total 246,741,385 236,983,191 209,426,548
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Interest Coverage Ratio
Class A 2.89 2.81
Class B 2.21 2.01
Class C 1.84 1.69
Class D 1.62 1.50
Debt Coverage Ratio
Class A 1.62 1.50
Class B 1.62 1.50
Class C 1.62 1.50
Class D 1.62 1.50
Loan-to-Value Ratios
Assumed Portfolio Value 1,115,510,000 1,008,610,412
Adjusted Portfolio Value 955,932,687
Liquidity Reserve Amount
Of which - Cash 25,000,000 25,000,000 25,000,000
- Accrued Expenses 6,147,642
- Letters of Credit held 40,000,000 40,003,351 40,003,351
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Subtotal 65,000,000 71,150,993 65,003,351
Less Lessee Security Deposits (20,000,000) (20,003,351) (20,003,351)
Subtotal 45,000,000 51,147,642 45,000,000
Total Asset Value 1,160,510,000 1,007,080,329 1,053,610,412
Note Balances a15-Jan-00
Class A 740,000,000 63.8% 631,792,473 639,253,158 60.7% 62.7%
Class B 100,000,000 72.4% 90,371,493 90,371,493 69.2% 71.7%
Class C 100,000,000 81.0% 99,945,967 99,945,967 78.7% 81.6%
Class D 110,000,000 90.5% 110,000,000 110,000,000 89.2% 92.6%
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Total 1,050,000,000 932,109,933 939,570,618
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*Assumed Cash Collections and Cash Expenses have been adjusted for non-delivery of an aircraft.
1. Interest Coverage Ratio is equal to Net Cash Collections(excl. interest and
swap payments) expressed as a ratio of the interest payable on each subclass of
Notes plus the interest and minimum principal payments payable on each subclass
of Notes that rank senior in priority of payment to the relevant subclass of
Notes.
2. Debt Service Ratio is equal to Net Cash Collections (excl. interest and swap
payments) expressed as a ratio of the interest and minimum and scheduled
principal payments payable on each subclass of Notes plus the interest and
minimum and scheduled principal payments payable on each subclass of Notes that
ranks equally with or senior to the relevant subclass of Notes in the priority
of payments.
3. Total Asset Value is equal to Total Assumed Portfolio Value plus Liquidity
Reserve Amount minus Lessee Security Deposits.
4. Assumed Portfolio Value represents the Inital Appraised Value of each
aircraft in the Portfolio multipled by the Depreciation Factor at Calculation
date divided by the Depreciation Factor at Closing date.
5. Adjusted Portfolio Value represents the Base Value of each aircraft in the
Portfolio as detemined by the most recent Appraisal multipled by the
Depreciation Factor at Calculation date divided by the Depreciation Factor at
Closing date.
6. The lower of the Assumed Portfolio Value or 105% of the Adjusted Portfolio
Value is used to calculate the principal repayment amounts to Noteholders
Page 2