EXHIBIT A
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Month March-01
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 15-Mar-01
Current Calculation Date 9-Mar-01
Previous Payment Date 15-Feb-01
Previous Calculation Date 9-Feb-01
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1. Account Activity Summary between Calculation Dates
- ----------------------------------------------------------------------------------------------
Prior Deposits Withdrawals Balance on
Balance Calculation Date
9-Feb-01 9-Mar-01
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Expense Account 6,033,569.27 3,706,779.49 (3,033,205.82) 6,707,142.94
Collection Account 19,014,699.45 20,416,256.22 (19,014,699.45) 20,416,256.22
Aircraft Purchase Account - - - -
Liquidity Reserve cash balance 49,209,891.00 - - 49,209,891.00
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Total 74,258,159.72 24,123,035.71 (22,047,905.27) 76,333,290.16
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2. Analysis of Expenses Account Activity
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Opening Balance on Previous Calculation Date 6,033,569.27
Transfer from Collection Account on previous Payment Date 3,675,376.82
Permitted Aircraft Accrual -
Interim Transfer from Collection Account -
Transfers from Aircraft Purchase Account -
Interest Income 31,402.67
Balance on current Calculation Date
- Payments on previous payment date (675,376.82)
- Interim payments (2,357,829.00)
- Other -
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Balance on current Calculation Date 6,707,142.94
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3. Analysis of Collection Account Activity
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Opening Balance on Previous Calculation Date 19,014,699.45
Collections during period
- Lease rentals 18,198,133.32
- Maintenance reserves 1,661,821.77
- Other leasing income 5,376.31
- Interest income 275,924.82
- Lease rental received in error 275,000.00
- Interim transfer to 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 (3,675,376.82)
- Permitted Aircraft Modifications -
Net Swap payments on previous Payment Date (827,845.85)
Aggregate Note Payments on previous Payment Date (14,511,476.78)
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Balance on current Calculation Date 20,416,256.22
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Analysis of Liquidity Reserve Amount
First Collection Account Reserve 30,000,000.00
Cash Held
- Accrued Expenses 6,707,142.94
- Security Deposits 19,209,891.00 25,917,033.94
Morgan Stanley Facility 30,000,000.00
ILFC Facility
- Letter of Credit 20,000,000.00
-Security Deposits 20,878,851.00 40,878,851.00
-----------------
Liquidity Reserve Amount 126,795,884.94
-----------------
Minimum Liquidity Reserve Amount 30,000,000.00
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Page 1 of 7
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-Mar-01
Current Calculation Date 9-Mar-01
Previous Payment Date 15-Feb-01
Previous Calculation Date 9-Feb-01
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Balance in Collection Account 20,416,256.22
Liquidity Reserve Amount 126,795,884.94
-----------------
Available Collections 147,212,141.16
=================
3. Analysis of Collection Account Activity (Continued)
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Analysis of Current Payment Date Distributions
(i) Required Expense Amount
- Servicer Fee 660,121.40
- Administration Agent Fee 83,166.13
- Other Service Providers 12,500.01
- Accrued Expenses 550,000.00
------------------
Total Required Expense Amount 1,305,787.54
(ii) a) Class A Interest but excluding Step-up 6,308,203.24
b) Swap Payments other than subordinated swap payments 1,670,250.00
(iii) a) Repayment of Primary Eligible Credit Facilities -
b) First Collection Account top-up (Minimum liquidity reserve $30 m) 30,000,000.00
(iv) Class A Minimum principal payment -
(v) Class B Interest 789,685.75
(vi) Class B Minimum principal payment 187,908.43
(vii) Class C Interest 1,009,135.00
(viii) Class C Minimum principal payment -
(ix) Class D Interest 797,340.50
(x) Class D Minimum principal payment -
(xi) a) Secondary Eligible Credit Facilities (ILFC and Morgan Stanley Facilities) -
b) Second collection account top-up 96,795,884.94
(xii) Class A Scheduled principal -
(xiii) Class B Scheduled principal 395,203.17
(xiv) Class C Scheduled principal 130,000.00
(xv) Class D Scheduled principal 22,000.00
(xvi) Permitted accruals for Modifications -
(xvii) Step-up interest -
(xviii) Beneficial interest -
(xix) Class A Supplemental principal 7,800,742.59
(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 147,212,141.16
less collection Account Top Ups (iii) (b) and (xi) (b) above 126,795,884.94
--------------
20,416,256.22
==============
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Page 2 of 7
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-Mar-01
Current Calculation Date 9-Mar-01
Previous Payment Date 15-Feb-01
Previous Calculation Date 9-Feb-01
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4. Payments on the Notes by Subclass
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Subclass Subclass Subclass Subclass Total
Floating Rate Notes A-2 A-3 A-4 A-5 Class A
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Applicable LIBOR 5.56875% 5.56875% 5.56875% 5.56875%
Applicable Margin 0.3500% 0.5200% 0.5400% 0.5800%
Applicable Interest Rate 5.91875% 6.08875% 6.10875% 6.14875%
Day Count Act/360 Act/360 Act/360 Act/360
Actual Number of Days 28 28 28 28
Interest Amount Payable 944,879.42 2,746,702.78 950,250.00 1,666,371.04
Step-up Interest Amount Payable NA NA NA NA
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Total Interest Paid 944,879.42 2,746,702.78 950,250.00 1,666,371.04 6,308,203.24
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Expected Final Payment Date 15-Sep-05 15-Mar-02 15-Mar-03 15-Jun-08
Excess Amortization Date 15-Apr-98 15-Mar-02 15-Mar-03 15-Apr-00
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Original Balance 340,000,000.00 580,000,000.00 200,000,000.00 400,000,000.00
Opening Outstanding Principal Balance 205,253,637.00 580,000,000.00 200,000,000.00 348,441,073.81 1,333,694,710.81
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Extended Pool Factors 73.15% 100.00% 100.00% 100.00%
Pool Factors 61.39% 100.00% 100.00% 87.53%
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Extension Amount - - - -
Pool Factor Amount - - - -
Surplus Amortisation 2,891,721.30 - - 4,909,021.29
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Total Principal Distribution Amount 2,891,721.30 - - 4,909,021.29 7,800,742.59
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Redemption Amount
- - amount allocable to principal
- - amount allocable to premium
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Closing Outstanding Principal Balance 202,361,915.70 580,000,000.00 200,000,000.00 343,532,052.52 1,325,893,968.22
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Subclass Subclass Total
Floating Rate Notes B-1 B-2 Class B
- --------------------------------------------------------------------------------------
Applicable LIBOR 5.5688% 5.5688%
Applicable Margin 0.6500% 1.0500%
Applicable Interest Rate 6.21875% 6.61875%
Day Count Act/360 Act/360
Actual Number of Days 28 28
Interest Amount Payable 403,746.44 385,939.31
Step-up Interest Amount Payable NA NA
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Total Interest Paid 403,746.44 385,939.31 789,685.75
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Expected Final Payment Date 15-Mar-13 15-Mar-07
Excess Amortisation Date 15-Apr-98 15-Mar-07
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Original Balance 100,000,000.00 75,000,000.00
Opening Outstanding Principal Balance 83,473,778.38 74,970,000.00 158,443,778.38
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Extended Pool Factors 92.12% 100.00%
Pool Factors 87.87% 99.95%
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Extension Amount - -
Pool Factor Amount - 7,500.00
Surplus Amortisation 575,611.60 -
- --------------------------------------------------------------------------------------
Total Principal Distribution Amount 575,611.60 7,500.00 583,111.60
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Redemption Amount
- - amount allocable to principal
- - amount allocable to premium
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Closing Outstanding Principal Balance 82,898,166.78 74,962,500.00 157,860,666.78
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Subclass Subclass Total Subclass
Fixed Rate Notes C-1 C-2 Class C D-1
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Applicable Interest Rate 6.90000% 9.60000% 8.70000%
Day count 30 / 360 30 / 360 30 / 360
Number of Days 30 30 30
Interest Amount Payable 569,135.00 440,000.00 797,340.50
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Total Interest Paid 569,135.00 440,000.00 1,009,135.00 797,340.50
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Expected Final Payment Date 15-Mar-13 15-Oct-16 15-Mar-14
Excess Amortisation Date 15-Mar-13 15-Oct-16 15-Mar-10
Original Balance 100,000,000.00 75,000,000.00 110,000,000.00
Opening Outstanding Principal Balance 98,980,000.00 55,000,000.00 153,980,000.00 109,978,000.00
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Extended Pool Factors 100.00% 100.00% 100.00%
Expected Pool Factors 98.85% 100.00% 99.96%
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Extended Amount - - -
Expected Pool Factor Amount 130,000.00 - 22,000.00
Surplus Amortisation - -
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Total Principal Distribution Amount 130,000.00 - 130,000.00 22,000.00
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Redemption Amount - - -
- - amount allocable to principal - - -
- - amount allocable to premium - - -
- -------------------------------------------------------------------------------------- --------------
Closing Outstanding Principal Balance 98,850,000.00 55,000,000.00 153,850,000.00 109,956,000.00
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Page 3 of 7
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-Mar-01
Current Calculation Date 9-Mar-01
Previous Payment Date 15-Feb-01
Previous Calculation Date 9-Feb-01
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5. Floating Rate Note information for next Interest Accrual Period
Start of Interest Accrual Period 15-Mar-01
End of Interest Accrual Period 17-Apr-01
Reference Date 11-Apr-01
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A-2 A-3 A-4 A-5 B-1 B-2
- -----------------------------------------------------------------------------------------------------------------------------
Applicable LIBOR 5.16375% 5.16375% 5.16375% 5.16375% 5.16375% 5.16375%
Applicable Margin 0.3500% 0.5200% 0.5400% 0.5800% 0.6500% 1.0500%
Applicable Interest Rate 5.5138% 5.6838% 5.7038% 5.7438% 5.8138% 6.2138%
Actual Pool Factor 59.52% 100.00% 100.00% 85.88% 82.90% 99.95%
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Fixed Rate Notes C-1 C-2 D-1
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Actual Pool Factor 98.85% 100.00% 99.96%
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6. Payments per $ 100,000 Initial Outstanding Principal Balance of Notes
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(a) Floating Rate Notes A-2 A-3 A-4 A-5 B-1 B-2
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Opening Outstanding Principal Balance 60,368.72 100,000.00 100,000.00 87,110.27 83,473.78 99,960.00
Total Principal Payments 850.51 - - 1,227.26 575.61 10.00
Closing Outstanding Principal Balance 59,518.21 100,000.00 100,000.00 85,883.01 82,898.17 99,950.00
Total Interest 277.91 473.57 475.13 416.59 403.75 514.59
Total Premium 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
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(b) Fixed Rate Notes C-1 C-2 D-1
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Opening Outstanding Principal Balance 98,980.00 100,000.00 99,980.00
Total Principal Payments 130.00 - 20.00
Closing Outstanding Principal Balance 98,850.00 100,000.00 99,960.00
Total Interest 569.14 800.00 724.86
Total Premium - - -
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Page 4 of 7
MORGAN STANLEY AIRCRAFT FINANCE
Cumulative Performance to Date - March 16, 2000 to March 15, 2001
All amounts in US dollars unless otherwise stated
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All amounts in millions of Dollar amounts expressed
US dollars as a percentage of
unless otherwise stated 2000 Base Case Lease Rentals
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Cumulative to Date Cumulative to Date
Actual Base Case Variance Actual Base Case Variance
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CASH COLLECTIONS
[1] Lease Rentals 240.1 240.1 - 100.0% 100.0% 0.0%
[2] - Renegotiated Leases 0.0 - 0.0 0.0%
[3] - Rental Resets (1.3) - (1.3) -0.6%
--------------------------------------------------------------
[4] S[1]..[3] Contracted Lease Rentals 238.8 240.1 (1.3) 99.5% 100.0% 0.0%
[5] Movement in Current Arrears Balance (7.2) - (7.2) -3.0% 0.0% -3.0%
less Net Stress-related Costs
[6] - Bad Debts (1.8) -0.8%
[7] - Security Deposits Drawn Down 1.7 0.7%
[8] - Restructured Arrears - 0.0%
[9] - AOG (7.9) -3.3%
[10] - Other Leasing Income 9.8 4.1%
[11] - Repossession Costs (0.6) -0.3%
- ----------------------------------------------------------------------------------------------------------------------
[12] S [6]..[11] sub-total 1.1 (10.8) 11.9 0.5% -4.5% 5.0%
[13] [4]+[5]+[12] Net]Lease Rentals 232.8 229.3 3.5 96.9% 95.5% 1.4%
[14] Interest Earned 4.3 2.9 1.4 1.8% 1.2% 0.6%
Maintenance Receipts 27.2 - 27.2 11.3% 0.0% 11.3%
--------------------------------------------------------------
Maintenance Payments (29.1) - (29.1) -12.1% 0.0% -12.1%
--------------------------------------------------------------
[15] Net Maintenance (2.0) - (2.0) -0.8% 0.0% -0.8%
--------------------------------------------------------------
[16] S[13]..[15] Total Cash Collections 235.1 232.2 2.9 97.9% 96.7% 1.2%
- ----------------------------------------------------------------------------------------------------------------------
CASH EXPENSES
Aircraft Operating Expenses
[17] - Insurance (1.2) -0.5%
[18] - Re-leasing and other overheads (1.0) -0.4%
--------------------------------------------------------------
[19] [17]+[18] sub-total (2.2) (1.9) (0.3) -0.9% -0.8% -0.1%
SG&A Expenses
Aircraft Servicer Fees
- Base Fee (2.9) (2.9) 0.0 -1.2% -1.2% 0.0%
- Rent Collected Fee (2.8) (2.9) 0.1 -1.2% -1.2% 0.0%
- Rent Contracted Fee (2.3) (2.4) 0.1 -1.0% -1.0% 0.0%
- Incentive Fee - - - 0.0% 0.0% 0.0%
--------------------------------------------------------------
[20] sub-total (8.0) (8.3) 0.2 -3.4% -3.4% 0.1%
Other Servicer Fees
Cabot (1.1) (1.1) 0.1 -0.5% -0.5% 0.0%
Other Service Providers (1.5) (0.7) (0.7) -0.6% -0.3% -0.3%
--------------------------------------------------------------
[21] sub-total (2.5) (1.9) (0.7) -1.1% -0.8% -0.3%
[22] S[19]..[21] Total Cash Expenses (12.8) (12.0) (0.7) -5.3% -5.0% -0.3%
- ----------------------------------------------------------------------------------------------------------------------
NET CASH COLLECTIONS
[23] [16] Total Cash Collections 235.1 232.2 2.9 97.9% 96.7% 1.2%
[24] [22] Total Cash Expenses (12.8) (12.0) (0.7) -5.3% -5.0% -0.3%
[25] Drawings from Expense Account 34.1 - 34.1 14.2% 0.0% 14.2%
[26] Transfer to Expense Account (35.1) - (35.5) -14.8% 0.0% -14.8%
[27] Interest Payments (129.1) (122.7) (6.4) -53.8% -51.1% -2.7%
[28] Swap Payments (5.0) (10.7) 5.7 -2.1% -4.5% 2.4%
[29] Exceptional Items - - - 0.0% 0.0% 0.0%
--------------------------------------------------------------
[30] S[23]..[29] TOTAL 86.7 86.7 (0.0) 36.1% 36.1% 0.0%
==============================================================
======================================================================================================================
[31] PRINCIPAL PAYMENTS
subclass A2 22.3 22.6 (0.2) 9.3% 9.4% -0.1%
subclass A3 - - - 0.0% 0.0% 0.0%
subclass A4 - - - 0.0% 0.0% 0.0%
subclass A5 56.5 56.2 0.2 23.5% 23.4% 0.1%
subclass B1 6.8 6.8 - 2.8% 2.8% 0.0%
subclass B2 0.0 0.0 - 0.0% 0.0% 0.0%
subclass C1 1.0 1.0 - 0.4% 0.4% 0.0%
subclass C2 - - - 0.0% 0.0% 0.0%
subclass D1 0.0 0.0 - 0.0% 0.0% 0.0%
--------------------------------------------------------------
Total 86.7 86.7 (0.0) 36.1% 36.1% 0.0%
==============================================================
======================================================================================================================
Debt Balances
subclass A2 202.4 202.1 (0.2)
subclass A3 580.0 580.0 -
subclass A4 200.0 200.0 -
subclass A5 343.5 343.8 0.2
subclass B1 82.9 82.9 -
subclass B2 75.0 75.0 -
subclass C1 98.9 98.9 -
subclass C2 55.0 55.0 -
subclass D1 110.0 110.0 -
----------------------------
TOTAL 1,747.6 1,747.6 (0.0)
============================
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Page 5 of 7
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Note: Report Line Name Description
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CASH COLLECTIONS
[1] Lease Rentals Assumptions per the March 2000 Prospectus, the "2000 Base Case".
[2] - Renegotiated Leases Loss in rental revenue caused by a lessee negotiating a reduction in the
lease rental.
[3] - Rental Resets Loss in rental when new lease rates are lower than those assumed in the
2000 Base Case.
[4] S[1]..[3] Contracted Lease Rentals Current Contracted Lease Rentals less adjustments for renegotiated leases
and rental resets.
[5] Movement in Current Arrears Balance Current Contracted Lease Rentals not received as at the latest Calculation
Date, excluding Bad Debts.
less Net Stress-related Costs
[6] - Bad Debts Rental Arrears owed by lessees who have defaulted and which are deemed
irrecoverable.
[7] - Security Deposits Drawn Down Amounts drawn down from Security Deposits to offset arrears or Bad Debts.
[8] - Restructured Arrears Current Arrears that have been capitalized and restructured into a note
payable.
[9] - AOG Base Case lease rental lost when an aircraft is off-lease and non-revenue
earning.
[10] - Other Leasing Income Includes lease termination payments, rental guarantees and late payments
charges.
[11] - Repossession Costs Legal and technical costs incurred as a result of repossessing an aircraft.
[12] S[6]..[11] sub-total
[13][4]+[5]+[12] Net Lease Rentals Contracted Lease Rentals less Movement in Current Arrears Balance and Net
Stress related costs
[14] Interest Earned Interest earned on monthly cash balances held in Collection and Expense
Accounts.
[15] Net Maintenance Maintenance Revenue Reserve received less any reimbursements paid to lessees.
[16] S[14]..[16] Total Cash Collections Net Lease Rentals + Interest Earned + Net Maintenance
- ------------------------------------------------------------------------------------------------------------------------------------
CASH EXPENSES
Aircraft Operating Expenses All operational costs related to the leasing of aircraft.
[17] - Insurance Premium for contingent insurance policies.
[18] - Re-leasing and other overheads Miscellaneous re-delivery and leasing costs associated with re-leasing
events.
[19] [17]+[18] sub-total
SG&A Expenses All fees paid to the Aircraft Servicer and to other service providers.
[20] Aircraft Servicer Fees Monthly and annual fees paid to the Aircraft Servicer, ILFC.
- Base Fee Fixed amount per month per aircraft and changes only as aircraft are
acquired or sold.
- Rent Collected Fee Amount equal to approximately 1.25% of rentals received during the previous
calendar month.
- Rent Contracted Fee Amount equal to 1.00% of rentals contracted in the current calendar month.
- Incentive Fee Annual fee paid to Servicer for performance above an annually agreed target.
[21] Other Servicer Fees Fees paid to other service providers including the Administrative Agent,
Financial Advisor and Independent Trustees
[22] S[19]..[21] Total Cash Expenses Aircraft Operating Expenses + SG&A Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH COLLECTIONS
[23] [16] Total Cash Collections as per line 17 above.
[24] [22] Total Cash Expenses as per line 24 above.
[25] Drawings from Expense Account Cash drawn from the Expense Account and used to pay for expenses during the
period.
[26] Transfer to Expense Account Cash set aside in the Expense Account to pay for future expected expense
obligations.
[27] Interest Payments Interest Payments to Noteholders on all outstanding debt.
[28] Swap Payments Net Swap Payments (paid) / received.
[29] Exceptional Items Cash flows that occur infrequently and are outside the normal business
activities of MSAF Group.
[30] S[24]..[29] TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
[31] PRINCIPAL PAYMENTS Principal Payments to Noteholders.
- ------------------------------------------------------------------------------------------------------------------------------------
Page 6 of 7
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Actual 2000 Base Case Variance
- ----------------------------------------------------------------------------------------------------------------------
Source of Funds
Net Cash Collections 86.7 86.7 -
Add Back Interest 129.1 122.7 6.4
- ----------------------------------------------------------------------------------------------------------------------
Add Back Swap Payments 5.0 10.7 (5.7)
- ----------------------------------------------------------------------------------------------------------------------
a 220.8 220.1 0.7
Application of Funds
b Swap Payments 5.0 10.7 (5.7)
c Class A Interest 95.6 89.8 5.8
d Class A Minimum 5.8 4.8 1.0
e Class B Interest 11.8 11.2 0.6
f Class B Minimum 4.2 4.2 -
g Class C Interest 12.1 12.1 -
h Class C Minimum - - -
I Class D Interest 9.6 9.6 -
j Class D Minimum - - -
k Class A Scheduled 0.8 0.2 0.6
l Class B Scheduled 2.7 2.7 -
m Class C Scheduled 1.0 1.0 -
n Class D Scheduled - - -
o Permitted Aircraft Modifications - - -
p Class A Supplemental 72.2 73.8 (1.6)
- ----------------------------------------------------------------------------------------------------------------------
220.8 220.1 0.7
- ----------------------------------------------------------------------------------------------------------------------
[1] Interest Coverage Ratio
Class A 2.19 2.19 = a/(b+c)
Class B 1.87 1.89 = a/(b+c+d+e)
Class C 1.64 1.66 = a/(b+c+d+e+f+g)
Class D 1.53 1.55 = a/(b+c+d+e+f+g+h+i)
[2] Debt Coverage Ratio
Class A 1.52 1.54 = a/(b+c+d+e+f+g+h+i+j+k)
Class B 1.50 1.51 = a/(b+c+d+e+f+g+h+i+j+k+l)
Class C 1.49 1.50 = a/(b+c+d+e+f+g+h+i+j+k+l+m)
Class D 1.49 1.50 = a/(b+c+d+e+f+g+h+i+j+k+l+m+n)
- ----------------------------------------------------------------------------------------------------------------------
Loan-to-Value Ratios 2000 Base Case Actual 2000 Base Case
15-Mar-00 15-Mar-01 15-Mar-01
- ----------------------------------------------------------------------------------------------------------------------
[3] Assumed Portfolio Value 2,049.1 1,962.7
[4] Adjusted Portfolio Value 1,879.9
Liquidity Reserve Amount
- Cash 30.0 30.0 30.0
- Accrued Expenses 6.0 7.3 7.3
- Security Deposits 7.1 19.2 19.2
-------------------------------------------------------------------------------------
subtotal cash 43.1 56.5 56.5
- Letters of Credit 82.1 70.8 70.8
-------------------------------------------------------------------------------------
Total Liquidity Reserve 125.2 127.3 127.3
[5] Total Asset Value 2,174.3 2,007.2 2,090.0
Note Balance
Class A 1,404.7 64.6% 1,325.9 66.1% 1,325.9 63.4%
Class B 164.7 72.2% 157.9 73.9% 157.9 71.0%
Class C 154.9 79.3% 153.9 81.6% 153.9 78.4%
Class D 110.0 84.4% 110.0 87.1% 110.0 83.6%
-------- ------- -------
Total 1,834.3 1,747.6 1,747.6
- ----------------------------------------------------------------------------------------------------------------------
[1] Interest Coverage Ratio is equal to Net Cash [3] Assumed Portfolio Value represents the Initial Appraised
Collections, before interest and swap payments, expressed Value of each aircraft in the Portfolio multiplied by the
as a ratio of the swap costs and interest payable on each Depreciation Factor at Calculation date divided by the
subclass of Notes plus the interest and minimum principal Depreciation Factor at Closing date.
payments payable on each subclass of Notes that rank senior
in priority of payment to the relevant subclass of Notes. [4] Adjusted Portfolio Value represents the Base Value of
each aircraft in the Portfolio as determined by the most
[2] Debt Coverage Ratio is equal to Net Cash Collections recent Appraisal multiplied by the Depreciation Factor at
before interest and swap payments, expressed as a ratio of Calculation date divided by the Depreciation Factor at Closing
the interest and minimum and scheduled principal payments date. The lower of the Assumed Portfolio Value or 105% of the
payable on each subclass of Notes plus the interest and Adjusted Portfolio Value is used to calculate the principal
minimum and scheduled principal payments payable on each repayment amounts to Noteholders.
subclass of Notes that ranks equally with or senior to the
relevant subclass of Notes in the priority of payments. [5] Total Asset Value is equal to Total Portfolio Value plus
Liquidity Reserve Amount.
Page 7 of 7