FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For March 17, 2003
Commission File Number 333-66973
AERCO LIMITED
22 Grenville Street
St. Helier
Jersey, JE4 8PX
Channel Islands
------------------------------------------------
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ___
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ___
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- _____
INDEX TO EXHIBITS
Item
- ----
1. - AerCo Limited Monthly Report to Noteholders for March 2003, including
additional information excluded form the 6-K, filed March 13, 2003.
- AerCo Limited Portfolio Analysis at March 13, 2003
24. Power of Attorney for AerCo Limited.
Page 2 of 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: March 17, 2003
AERCO LIMITED
(Registrant)
By: /s/ Adrian Robinson
--------------------------
Name: Adrian Robinson
Title: Attorney-in-Fact
Page 3 of 3
Item 1
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Month March-03
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 17-Mar-03
Current Calculation Date 11-Mar-03
Previous Payment Date 18-Feb-03
Previous Calculation Date 11-Feb-03
- -----------------------------------------------------------------------------------------------------
1. Account Activity Summary between Calculation Dates
- -----------------------------------------------------------------------------------------------------
Prior Balance on
Balance Calculation Date
11-Feb-03 Deposits Withdrawals 11-Mar-03
- -----------------------------------------------------------------------------------------------------
Expense Account 3,694,341.02 1,308,686.42 (2,344,821.90) 2,658,205.54
Collection Account 93,315,768.40 12,997,014.38 (12,400,366.40) 93,912,416.38
Aircraft Purchase Account - - - -
- Liquidity Reserve cash balance 80,915,402.00 100,000.00 - 81,015,402.00
- ------------------------------------------------------------------------------------------------------
Total 97,010,109.42 14,305,700.80 (14,745,188.30) 96,570,621.92
- ------------------------------------------------------------------------------------------------------
2. Analysis of Aircraft Purchase Account Activity
- -----------------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date -
Interest Income -
Aircraft Purchase Payments -
Economic Swap Payments -
- -----------------------------------------------------------------------------------------------------
Balance on Current Calculation Date -
- -----------------------------------------------------------------------------------------------------
3. Analysis of Expense Account Activity
- -----------------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 3,694,341.02
Transfer from Collection Account on previous Payment Date 1,305,658.98
Permitted Aircraft Accrual -
Interim Transfer from Collection Account -
Interest Income 3,027.44
Balance on current Calculation Date
- Payments on previous payment date (1,521,898.70)
- Interim payments
- Other (822,923.20)
- -----------------------------------------------------------------------------------------------------
Balance on Current Calculation Date 2,658,205.54
- -----------------------------------------------------------------------------------------------------
4. Analysis of Collection Account Activity
- -----------------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 93,315,768.40
Collections during period 12,997,014.38
Transfer to Expense Account on previous Payment Date
- Required Expense Amount (1,305,658.98)
- Permitted Aircraft Modifications -
Interim Transfer to Expense Account -
Net Swap payments on previous Payment Date (4,138,715.62)
Aggregate Note Payments on previous Payment Date (6,955,991.80)
- -----------------------------------------------------------------------------------------------------
Balance on Current Calculation Date 93,912,416.38
- -----------------------------------------------------------------------------------------------------
Analysis of Liquidity Reserve Amount
First Collection Account Reserve 30,000,000.00
Second Collection Account Reserve 35,000,000.00
Cash Held
- Security Deposits 16,015,402.00
-----------------
Liquidity Reserve Amount 81,015,402.00
-----------------
A Liquidity Facility of $35 million is also available to AerCo as a primary eligible credit facility,
but remains undrawn.
Page 1 of 7
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AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 17-Mar-03
Current Calculation Date 11-Mar-03
Previous Payment Date 18-Feb-03
Previous Calculation Date 11-Feb-03
- -----------------------------------------------------------------------------------------------------
Balance in Collection and Expense Account 96,570,621.92
Liquidity Reserve Amount (81,015,402.00)
------------------
Available Collections 15,555,219.92
==================
4. Analysis of Collection Account Activity (Continued)
- -----------------------------------------------------------------------------------------------------
Analysis of Current Payment Date Distributions
(I) Total Required Expense Amount 5,000,000.00
(II) a) Class A Interest but excluding Step-up 1,089,875.81
b) Swap Payments other than subordinated swap payments 3,289,558.89
(iii) First Collection Account top-up (Minimum liquidity reserve $30 m) 30,000,000.00
(iv) Class A Minimum principal payment -
(v) Class B Interest 211,510.57
(vi) Class B Minimum principal payment 31,819.97
(vii) Class C Interest 353,063.24
(viii) Class C Minimum principal payment -
(ix) Class D Interest 708,333.33
(x) Class D Minimum principal payment -
(xi) Second collection account top-up 51,015,402.00
(xii) Class A Scheduled principal 4,871,058.11
(xiii) Class B Scheduled principal -
(xiv) Class C Scheduled principal -
(xv) Class D Scheduled principal -
(xvi) Permitted accruals for Modifications -
(xvii) Step-up interest -
(xviii) Class A Supplemental principal -
(xix) Class E Primary Interest -
(xx) Class B Supplemental principal -
(xxi) Class A Outstanding Principal -
(xxii) Class B Outstanding Principal -
(xxiii) Class C Outstanding Principal -
(xxiv) Class D Outstanding Principal -
(xxv) Subordinated Swap payments -
------------------
Total Payments with respect to Payment Date 96,570,621.92
less collection Account Top Ups (iii) (b) and (xi) (b) above 81,015,402.00
------------------
15,555,219.92
==================
-
- -----------------------------------------------------------------------------------------------------
Page 2 of 7
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 17-Mar-03
Current Calculation Date 11-Mar-03
Previous Payment Date 18-Feb-03
Previous Calculation Date 11-Feb-03
- -----------------------------------------------------------------------------------------------------------
5. Payments on the Notes by Subclass
- -----------------------------------------------------------------------------------------------------------
Subclass Subclass Subclass Total
Floating Rate Notes A-2 A-3 A-4 Class A
- -----------------------------------------------------------------------------------------------------------
Applicable LIBOR 1.34000% 1.34000% 1.34000%
Applicable Margin 0.3200% 0.4600% 0.5200%
Applicable Interest Rate 1.66000% 1.80000% 1.86000%
Day Count Act/360 Act/360 Act/360
Actual Number of Days 27 27 27
Interest Amount Payable 146,798.65 736,673.58 206,403.58 1,089,875.81
Step-up Interest Amount Payable NA 204,631.55 NA 204,631.55
- -----------------------------------------------------------------------------------------------------------
Total Interest Paid 146,798.65 736,673.58 206,403.58 1,089,875.81
- -----------------------------------------------------------------------------------------------------------
Expected Final Payment Date 15-Dec-05 15-Jun-02 15-May-11
Excess Amortisation Date 17-Aug-98 15-Feb-06 15-Aug-00
- -----------------------------------------------------------------------------------------------------------
Original Balance 290,000,000.00 565,000,000.00 235,000,000.00
Opening Outstanding Principal Balance 117,910,559.07 545,684,134.79 147,959,557.46 811,554,251.32
- -----------------------------------------------------------------------------------------------------------
Extended Pool Factors 51.74% 100.00% 77.87%
Pool Factors 38.85% 100.00% 67.68%
- -----------------------------------------------------------------------------------------------------------
Minimum Principal Payment - - - -
Scheduled Principal Payment 4,871,058.11 - - 4,871,058.11
Supplemental Principal Payment - - - -
- -----------------------------------------------------------------------------------------------------------
Total Principal Distribution Amount 4,871,058.11 - - 4,871,058.11
- -----------------------------------------------------------------------------------------------------------
Redemption Amount
- - amount allocable to principal
- - amount allocable to premium
- -----------------------------------------------------------------------------------------------------------
Closing Outstanding Principal Balance 113,039,500.96 545,684,134.79 147,959,557.46 806,683,193.21
- -----------------------------------------------------------------------------------------------------------
Table continue
- -----------------------------------------------------------------------------------------
Subclass Subclass Total
Floating Rate Notes B-1 B-2 Class B
- -----------------------------------------------------------------------------------------
Applicable LIBOR 1.34000% 1.34000%
Applicable Margin 0.6000% 1.0500%
Applicable Interest Rate 1.94000% 2.39000%
Day Count Act/360 Act/360
Actual Number of Days 27 27
Interest Amount Payable 91,192.51 120,318.05 211,510.57
Step-up Interest Amount Payable NA NA
- -----------------------------------------------------------------------------------------
Total Interest Paid 91,192.51 120,318.05 211,510.57
- -----------------------------------------------------------------------------------------
Expected Final Payment Date 15-Jul-13 15-Jun-08
Excess Amortisation Date 17-Aug-98 15-Aug-00
- -----------------------------------------------------------------------------------------
Original Balance 85,000,000.00 80,000,000.00
Opening Outstanding Principal Balance 62,675,266.95 67,123,041.83 129,798,308.78
- -----------------------------------------------------------------------------------------
Extended Pool Factors 81.16% 98.66%
Pool Factors 74.39% 96.76%
- -----------------------------------------------------------------------------------------
Minimum Principal Payment 15,364.80 16,455.17 31,819.97
Scheduled Principal Payment - - -
Supplemental Principal Payment - - -
- -----------------------------------------------------------------------------------------
Total Principal Distribution Amount 15,364.80 16,455.17 31,819.97
- -----------------------------------------------------------------------------------------
Redemption Amount
- - amount allocable to principal
- - amount allocable to premium
- -----------------------------------------------------------------------------------------
Closing Outstanding Principal Balance 62,659,902.15 67,106,586.66 129,766,488.81
- ----------------------------------------------------------------------------------------
(Table continue)
- -----------------------------------------------------------------------------------------
Subclass Subclass Total
Floating Rate Notes C-1 C-2 Class C
- -----------------------------------------------------------------------------------------
Applicable LIBOR 1.34000% 1.34000%
Applicable Margin 1.3500% 2.0500%
Applicable Interest Rate 2.69000% 3.39000%
Day Count Act/360 Act/360
Actual Number of Days 27 27
Interest Amount Payable 159,860.06 193,203.18 353,063.24
Step-up Interest Amount Payable NA NA
- -----------------------------------------------------------------------------------------
Total Interest Paid 159,860.06 193,203.18 353,063.24
- -----------------------------------------------------------------------------------------
Expected Final Payment Date 15-Jul-13 15-Jun-08
Excess Amortisation Date 17-Aug-98 15-Aug-00
- -----------------------------------------------------------------------------------------
Original Balance 85,000,000.00 80,000,000.00
Opening Outstanding Principal Balance 79,236,710.01 75,989,451.34 155,226,161.35
- -----------------------------------------------------------------------------------------
Extended Pool Factors 98.08% 97.86%
Pool Factors 93.09% 94.84%
- -----------------------------------------------------------------------------------------
Minimum Principal Payment - - -
Scheduled Principal Payment - - -
Supplemental Principal Payment - - -
- -----------------------------------------------------------------------------------------
Total Principal Distribution Amount - - -
- -----------------------------------------------------------------------------------------
Redemption Amount - -
- - amount allocable to principal - -
- - amount allocable to premium - -
- -----------------------------------------------------------------------------------------
Closing Outstanding Principal Balance 79,236,710.01 75,989,451.34 155,226,161.35
- -----------------------------------------------------------------------------------------
- ------------------------------------------------------
Fixed Rate Notes D-2
- ------------------------------------------------------
Applicable Interest Rate 8.50000%
Day count 30/360
Number of Days 30
Interest Amount Payable 708,333.33
- ------------------------------------------------------
Total Interest Paid 708,333.33
- ------------------------------------------------------
Expected Final Payment Date 15-Mar-14
Excess Amortisation Date 15-Jul-10
- ------------------------------------------------------
Original Balance 100,000,000.00
Opening Outstanding Principal Balance 100,000,000.00
- ------------------------------------------------------
Extended Pool Factors 100.00%
Expected Pool Factors 100.00%
- ------------------------------------------------------
Extended Amount -
Expected Pool Factor Amount -
Surplus Amortisation
- ------------------------------------------------------
Total Principal Distribution Amount -
- ------------------------------------------------------
Redemption Amount -
- - amount allocable to principal -
--------------
- - amount allocable to premium -
- ------------------------------------------------------
Closing Outstanding Principal Balance 100,000,000.00
- ------------------------------------------------------
Page 3 of 7
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 17-Mar-03
Current Calculation Date 11-Mar-03
Previous Payment Date 15-Jan-03
Previous Calculation Date 9-Jan-03
- ------------------------------------------------------------------------------------------------------------------------------------
6. Floating Rate Note information for next Interest Accrual Period
Start of Interest Accrual Period 18-Feb-03
End of Interest Accrual Period 16-Mar-03
Reference Date 13-Feb-03
- ------------------------------------------------------------------------------------------------------------------------------------
A-2 A-3 A-4 B-1 B-2 C-1 C-2
- ------------------------------------------------------------------------------------------------------------------------------------
Applicable LIBOR 1.28000% 1.28000% 1.28000% 1.28000% 1.28000% 1.28000% 1.28000%
Applicable Margin 0.3200% 0.4600% 0.5200% 0.6000% 1.0500% 1.3500% 2.0500%
Applicable Interest Rate 1.6000% 1.7400% 1.8000% 1.8800% 2.3300% 2.6300% 3.3300%
- -----------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------
Fixed Rate Notes D-1
- ------------------------------------------------------
Actual Pool Factor 100.00%
- ------------------------------------------------------
- --------------------------------------------------------------------------------
7. Payments per $ 1,000 Inital Outstanding Principal Balance of Notes
- ------------------------------------------------------------------------------------------------------------------------------------
(a) Floating Rate Notes A-2 A-3 A-4 B-1 B-2 C-1 C-2
- ------------------------------------------------------------------------------------------------------------------------------------
Opening Outstanding Principal Balance 117,910.56 545,684.13 147,959.56 62,675.27 67,123.04 79,236.71 75,989.45
Total Principal Payments 4,871.06 - - 15.36 16.46 - -
Closing Outstanding Principal Balance 113,039.50 545,684.13 147,959.56 62,659.90 67,106.59 79,236.71 75,989.45
Total Interest 146.80 736.67 206.40 91.19 120.32 159.86 193.20
Total Premium 0.0000% 0.5000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------
(b) Fixed Rate Notes D-2
- ------------------------------------------------------
Opening Outstanding Principal Balance 100,000.00
Total Principal Payments -
Closing Outstanding Principal Balance 100,000.00
Total Interest 708.33
Total Premium -
- ------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Page 4 of 7
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
- ------------------------------------------------------------------------------------------------------------------------------------
July 2000 to Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan Feb Mar
Sept 2001 2001 2002 2002 2002 2002 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
CASH COLLECTIONS
[1] Lease Rentals 217.6 45.4 45.4 46.0 45.9 44.6 15.2 13.9 16.2
[2] - Renegotiated Leases (3.0) (2.8) (2.1) (3.0) (4.0) (1.8) (0.5) (1.0) (0.8)
[3] - Rental Resets (1.3) (3.2) (4.1) (3.2) (3.5) (5.3) (2.3) (2.1) (2.2)
[4] S [1]...[3] Contracted Lease Rentals 213.3 39.4 39.2 39.8 38.4 37.4 12.3 10.8 13.2
-----------------------------------------------------------------------------------------
[5] Movement in Current Arrears
Balance (0.8) (2.4) 1.4 (0.9) (2.3) (0.1) (1.6) (0.4) (0.9)
less Net Stress-related Costs
[6] - Bad Debts - - - - - - -
[7] - Security Deposits Drawn
Down 0.5 - - - - - -
[8] - Restructured Arrears 0.7 0.1 (1.3) (0.4) 0.6 0.4 0.1 0.2 -
[9] - AOG (4.3) (1.5) (0.4) - - (0.8) (0.4) (0.6) (1.0)
[10] - Other Leasing Income - - - - - - - -
[11] - Repossession Costs (0.3) - - - - (0.1) -
----------------------------------------------------------------------------------------
[12] S[6]...[11] sub-total (3.4) (1.4) (1.7) (0.4) 0.6 (0.5) (0.3) (0.4) (1.0)
[13] [4]+[5]+[12] Net Lease Rentals 209.1 35.6 38.9 38.5 36.7 36.9 10.4 10.0 11.3
[14] Interest Earned 5.8 0.8 0.4 0.4 0.3 0.2 0.1 0.1 0.1
[15] Drawings from Expense
Account
Maintenance Receipts 22.6 4.5 3.6 6.1 4.9 5.5 0.6 1.9 1.2
Maintenance Payments (11.8) (1.8) (3.9) (10.1) - (1.6) (0.8) (1.0) (1.3)
----------------------------------------------------------------------------------------
[15] Net Maintenance 10.8 2.7 (0.3) (4.0) 4.9 3.9 (0.2) 0.9 (0.1)
[16] S[13]...[16] Total Cash Collections 225.7 39.1 39.0 34.9 41.9 41.0 10.3 11.0 11.3
- ------------------------------------------------------------------------------------------------------------------------------------
CASH EXPENSES
Aircraft Operating Expenses
[17] - Insurance (0.1) - - (0.3) - (0.1) - -
[18] - Re-leasing and other
overheads (7.5) (0.7) (0.4) (1.4) (0.8) (1.7) (0.3) (0.1) (0.4)
----------------------------------------------------------------------------------------
[19] [17]+[18] subtotal (7.6) (0.7) (0.4) (1.7) (0.8) (1.8) (0.3) (0.1) (0.4)
SG&A Expenses
[20] Aircraft Servicer Fees
- Retainer Fee (1.6) (0.4) (0.3) (0.7) (0.7) 0.1 (0.2) (0.1) (0.1)
- Rent Collected Fee (1.9) (0.4) (0.4) (0.7) (0.9) 0.3 (0.2) (0.1) (0.1)
- Previous Servicer Fees (1.8) - - - - - - -
----------------------------------------------------------------------------------------
[21] sub-total (5.3) (0.8) (0.7) (1.3) (1.6) 0.4 (0.4) (0.2) (0.2)
[22] Other Servicer Fees (13.1) (0.4) (1.2) (0.9) (1.1) (2.7) (0.1) (0.2) (0.2)
[23] [21]+[22] subtotal (18.4) (1.2) (1.9) (2.3) (2.7) (2.3) (0.5) (0.4) (0.4)
----------------------------------------------------------------------------------------
[24] [20]+[23] Total Cash Expenses (26.0) (1.9) (2.3) (4.0) (3.5) (4.1) (0.8) (0.5) (0.8)
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH COLLECTIONS
[25] [17] Total Cash Collections 225.7 39.1 39.0 34.9 41.9 41.0 10.3 11.0 11.3
[26] (24] Total Cash Expenses (26.0) (1.9) (2.3) (4.0) (3.5) (4.1) (0.8) (0.5) (0.8)
[27] Movement in Expense
Account 6.0 1.2 0.3 1.2 - 0.5 0.7 0.5 -
[28] Interest Payments (111.6) (12.0) (9.3) (9.5) (10.2) (9.6) (2.9) (3.1) (2.4)
[29] Swap Payments (12.1) (9.3) (10.7) (10.5) (10.9) (10.5) (3.8) (4.0) (3.2)
[30] Proceeds from sale of
aircraft 50.5 - - - - - - - -
[31] Refinancing Costs - - - - - - - - -
----------------------------------------------------------------------------------------
[32] S[25]...[31] TOTAL 132.5 17.1 17.0 12.1 17.3 17.3 3.6 3.9 4.9
========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
[33] PRINCIPAL PAYMENTS
subclass A 115.6 14.4 14.4 9.1 14.4 13.7 2.4 2.8 4.9
subclass B 14.8 1.8 1.7 1.8 1.7 2.0 0.7 0.6 -
subclass C 2.1 0.9 0.9 1.2 1.2 1.6 0.5 0.5 -
subclass D - - - - - - -
----------------------------------------------------------------------------------------
Total 132.5 17.1 17.0 12.1 17.3 17.2 3.6 3.9 4.9
========================================================================================
------------------------------------------------------------------------------------------------------------------
Debt Balances
subclass A 882.8 868.4 984.0 844.9 830.5 816.8 814.4 811.6 806.7
subclass B 140.0 138.2 153.1 134.7 133.0 131.0 130.3 129.7 129.7
subclass C 162.0 161.1 163.2 158.9 157.7 156.1 155.6 155.1 155.1
subclass D 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
----------------------------------------------------------------------------------------
TOTAL 1,284.8 1,267.7 1,250.7 1,238.5 1,221.2 1,204.0 1,200.3 1,196.4 1,191.5
========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
*Adjusted Base Case are July 2000 Prospectus Base Case cashflows adjusted for aircraft sales.
(Table continue)
All amounts in millions of Dollar amounts expressed
US dollars as a percentage
unless otherwise stated 2000 Base Case Lease Rentals
- -----------------------------------------------------------------------------------------------------------------------------
Cumulative to Date Cumulative to Date
*Adjusted *Adjusted
Actual base case Variance Actual base case Variance
- -----------------------------------------------------------------------------------------------------------------------------
CASH COLLECTIONS
[1] Lease Rentals 490.2 490.2 (0.0) 100.0% 100.0% 0.0%
[2] - Renegotiated Leases (19.0) - (19.0) (3.9%) 0.0% (3.9%)
[3] - Rental Resets (27.3) - (27.3) (5.6%) 0.0% (5.6%)
[4] S [1]...[3] Contracted Lease Rentals 443.9 490.2 (46.3) 90.6% 100.0% (9.4%)
-------------------------------------------------------------------------
[5] Movement in Current Arrears
Balance (8.0) - (8.0) (1.6%) 0.0% (1.6%)
less Net Stress-related Costs
[6] - Bad Debts - (4.9) 4.9 0.0% (1.0%) 1.0%
[7] - Security Deposits Drawn
Down 0.5 - 0.5 0.1% 0.0% 0.1%
[8] - Restructured Arrears 0.4 3.2 (2.8) 0.1% 0.7% (0.6%)
[9] - AOG (9.0) (20.7) 11.7 (1.8%) (4.2%) 2.4%
[10] - Other Leasing Income - - - 0.0% 0.0% 0.0%
[11] - Repossession Costs (0.4) (3.9) 3.5 (0.1%) (0.8%) 0.7%
-------------------------------------------------------------------------
[12] S[6]...[11] sub-total (8.5) (26.3) 17.8 (1.7%) (5.4%) 3.6%
[13] [4]+[5]+[12] Net Lease Rentals 427.4 463.9 (36.5) 87.2% 94.6% (7.4%)
[14] Interest Earned 8.2 9.6 (1.4) 1.7% 2.0% (0.3%)
[15] Drawings from Expense
Account - - - 0.0% 0.0% 0.0%
Maintenance Receipts 50.9 - 50.9 10.4% 0.0% 10.4%
Maintenance Payments (32.3) - (32.3) (6.6%) 0.0% (6.6%)
-------------------------------------------------------------------------
[15] Net Maintenance 18.6 - 18.6 3.8% 0.0% 3.8%
[16] S[13]...[16] Total Cash Collections 454.2 473.5 (19.3) 92.7% 96.6% (3.9%)
- -----------------------------------------------------------------------------------------------------------------------------
CASH EXPENSES
Aircraft Operating Expenses
[17] - Insurance (0.5) - (0.5) (0.1%) 0.0% (0.1%)
[18] - Re-leasing and other
overheads (13.3) (14.8) 1.5 (2.7%) (3.0%) 0.3%
-------------------------------------------------------------------------
[19] [17]+[18] subtotal (13.8) (14.8) 1.0 (2.8%) (3.0%) 0.2%
SG&A Expenses
[20] Aircraft Servicer Fees
- Retainer Fee (4.0) (4.0) 0.0 (0.8%) (0.8%) 0.0%
- Rent Collected Fee (4.4) (4.6) 0.2 (0.9%) (0.9%) 0.0%
- Previous Servicer Fees (1.8) - (1.8) (0.4%) 0.0% (0.4%)
-------------------------------------------------------------------------
sub-total (10.1) (8.6) (1.5) (2.1%) (1.8%) (0.3%)
Other Servicer Fees (19.9) (10.9) (9.0) (4.1%) (2.2%) (1.8%)
[22] -------------------------------------------------------------------------
[23] [21]+[22] subtotal (30.1) (19.5) (10.6) (6.1%) (4.0%) (2.2%)
[24] [20]+[23] Total Cash Expenses (43.9) (34.3) (9.6) (9.0%) (7.0%) (2.0%)
- -----------------------------------------------------------------------------------------------------------------------------
NET CASH COLLECTIONS
[25] [17] Total Cash Collections 454.2 473.5 (19.3) 92.7% 96.6% (3.9%)
[26] (24] Total Cash Expenses (43.9) (34.3) (9.6) (9.0%) (7.0%) (2.0%)
[27] Movement in Expense
Account 10.4 - 10.4 2.1% 0.0% 2.1%
[28] Interest Payments (170.6) (259.5) 88.9 (34.8%) (52.9%) 18.1%
[29] Swap Payments (75.0) 4.8 (79.8) (15.3%) 1.0% (16.3%)
[30] Proceeds from sale of
aircraft 50.5 51.1 (0.6) 10.3% 10.4% (0.1%)
[31] Refinancing Costs - (2.3) 2.3 0.0% (0.5%) 0.5%
-------------------------------------------------------------------------
[32] S[25]...[31] TOTAL 225.7 233.3 (7.6) 46.0% 47.6% (1.6%)
=========================================================================
- -----------------------------------------------------------------------------------------------------------------------------
[33] PRINCIPAL PAYMENTS
subclass A 191.7 198.0 (6.3) 39.1% 40.4% (1.3%)
subclass B 25.1 25.8 (0.7) 5.1% 5.3% (0.2%)
subclass C 8.9 9.5 (0.6) 1.8% 1.9% (0.1%)
subclass D - - - 0.0% 0.0% 0.0%
-------------------------------------------------------------------------
Total 225.7 233.3 (7.6) 46.0% 47.6% (1.6%)
=========================================================================
-----------------------------------------------------------------------------------------------------------
Debt Balances
subclass A 806.7 800.4 6.3
subclass B 129.7 129.0 0.7
subclass C 155.1 154.5 0.6
subclass D 100.0 100.0 -
-----------------------------------
TOTAL 1,191.5 1,183.9 7.6
===================================
- ---------------------------------------------------------------------------------------
*Adjusted Base Case are July 2000 Prospectus Base Case cashflows adjusted for aircraft sales.
Page 5 of 7
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
- ------------------------------------------------------------------------------------------------------------------------------------
Note: Report Line Name Description
- ------------------------------------------------------------------------------------------------------------------------------------
CASH COLLECTIONS
[1] Lease Rentals Assumptions per the July 2000 Prospectus adjusted for aircraft sales
[2] - Renegotiated Leases Change in contracted rental cash flow caused by a renegotiated lease
[3] - Rental Resets Re-leasing events where new lease rate deviated from the 2000 Base Case
[4] S [1]....[3] Contracted Lease Rentals Current Contracted Lease Rentals due as at the latest Calculation Date
[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 Arrears owed by former lessees and deemed irrecoverable.
[7] - Security deposits drawn down Security deposits received following a lesse default
[8] - Restructured arrears
[9] - AOG Lost of rental due to an aircraft being off-lease and non-revenue
earning
[10] - Other Leasing Income Includes lease termination payments, rental guarantees and late
payments charges
[11] - Repossession Legal and technical costs incurred in repossessing 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
[15] Net Maintenance Maintenance Revenue Reserve received less and reimbursements
to lessees.
[16] S [13]...[15] 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 Costs associated transferring an aircraft from one lessee to another
[19] [17]+[18] subtotal
SG&A Expenses
[20] Aircraft Servicer Fees Monthly and annual fees paid to Aircraft Servicer
- Base Fee Fixed amount per month per aircraft
- Rent Contracted Fee 1.00% of rental contracted for the month
- Rent Collected Fee 1.25% of rental received for the month
- Previous Servicer Fees Fees paid to the previous Servicer of AerCo
[21] [20] subtotal
[22] Other Servicer Fees Administrative Agent, trustee and professional fees paid to other
service providers.
[23] [21]+[22] subtotal
[24] [19]+[23] Total Cash Expenses Aircraft Operating Expenses + SG&A Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
NET CASH COLLECTIONS
[25] [16] Total Cash Collections line 16 above
[26] [24] Total Cash Expenses line 24 above
[27] Movement in Expense Account Movement in Expense Account
[28] Interest Payments Interest paid on all outstanding debt
[29] Swap payments Net swap payments (paid) /received
[30] Proceeds from Aircraft Sales Proceeds, net of fees and expenses, from the sale of aircraft
[31] S [25]...[30] Exceptional Items Includes adjustment for aircraft included in the Basecase but not
acquired by AerCo
TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
Page 6 of 7
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
- -----------------------------------------------------------------------------------------------------------------------------------
Coverage Ratios 2000
Closing Actual *Adjusted Base Case
- ------------------------------------------------------------------------------------------------------------------------------------
Net Cash Collections 225.7 233.3
Add Back Interest 170.6 259.5
Add Back Swap Payments 75.0 (4.8)
a Net Cash Collections 471.2 488.0
b Swaps 75.0 (4.8)
c Class A Interest 97.4 167.2
d Class A Minimum 30.5 37.9
e Class B Interest 16.8 27.9
f Class B Minimum 9.1 9.0
g Class C Interest 22.5 35.6
h Class C Minimum - -
I Class D Interest 22.7 22.7
j Class D Minimum - -
k Class A Scheduled 4.9 -
l Class B Scheduled 15.5 16.8
m Class C Scheduled 8.9 9.5
n Class D Scheduled - -
o Permited Aircraft Modifications - -
p Step Up Interest 1.9
q Class A Supplemental 156.4 160.1
Class E Interest 9.1 6.2
Class B Supplemental 0.5
----------------------------------
Total 471.2 488.0
----------------------------------
[1] Interest Coverage Ratio
Class A 2.73 3.00 = a / (b+c)
Class B 2.14 2.14 = a / (b+c+d+e)
Class C 1.87 1.79 = a / (b+c+d+e+f+g)
Class D 1.72 1.65 = a / (b+c+d+e+f+g+h+i)
[2] Debt Coverage Ratio
Class A 1.69 1.65 = a / (b+c+d+e+f+g+h+i+ j+k)
Class B 1.60 1.56 = a / (b+c+d+e+f+g+h+i+j+k+l)
Class C 1.55 1.52 = a / (b+c+d+e+f+g+h+i+j+k+l+m)
Class D 1.55 1.52 = a / (b+c+d+e+f+g+h+i+j+k+l+m+n)
Loan-to-Value Ratios
---------------------------------------------------------------------
2000 Base Case Actual 2000 *Adjusted Base Case
17-Jul-00 18-Mar-03 18-Mar-03
---------------------------------------------------------------------
[3] Assumed Portfolio Value 1,566.7 1,304.2 1,304.2
Adjusted Portfolio Value (105%) 1,185.6
Liquidity Reserve Amount
Cash 65.0 65.0 65.0
- Accrued Expenses 5.0 5.0 5.0
- Security Deposits 22.4 16.0 22.4
--------- --------- -------------
subtotal cash 92.4 86.0 92.4
Letters of Credit - - -
--------- --------- ------------
Total Liquidity Reserve 92.4 86.0 92.4
[4] Total Asset Value 1,659.1 1,390.2 1,396.6
Note Balance
Class A 998.4 60.2% 806.7 58.0% 800.4 57.3%
Class B 154.8 69.5% 129.7 67.4% 129.0 66.5%
Class C 164.1 79.4% 155.1 78.5% 154.5 77.6%
Class D 100.0 85.4% 100.0 85.7% 100.0 84.8%
---------- ---------- -------
Total 1,417.3 1,191.5 1,183.9
- --------------------------------------------------------------------------------------------------------
* Adjusted Base Case are July 2000 Prospectus Base Case cashflows adjusted for aircraft sales.
[1] Interest Coverage Ratio is equal to Net Cash Collections, before Interest
and swap payments, expressed as a ratio of the swap costs and 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 before 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] 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.
[4] Total Asset Value is equal to Total Portfolio Value plus Liquidity
Reserve Amount
Page 7 of 7
AerCo Portfolio Analysis at March 13, 2003
% of
Aircraft
Appraisal % of by
Date of Value of Aircraft by Appraised
Aircraft Engine erial Manufacturer Februry 19, Appraised Value in
No. Region Country Lessee Type Configuration umber /Conversion 2003(US$m) Value Region
- ------------------------------------------------------------------------------------------------------------------------------------
1. Asia
(Emerging) China China Xinjiang B757-200 RB211-535E4 26153 Aug-92 30,909 2.6%
2. China China Southern B737-300 CFM56-3C1 26068 Jun-92 19,616 1.6%
3. China China Southern B737-300 CFM56-3C1 25604 Jan-93 18,578 1.6%
4. China Xiamen Airlines B737-500 CFM56-3C1 27153 Aug-93 17,857 1.5%
5. China Xiamen Airlines B737-500 CFM56-3C1 27155 Mar-93 18,174 1.5%
6. India Indian Airlines A300B4-200 CF6-50C2 240 May-83 7,225 0.6%
7. Indonesia Mandala Airlines B737-400 CFM56-3C1 23868 Oct-88 17,098 1.4%
8. Philippines PAL B737-300 CFM56-3B1 24465 Aug-89 16,005 1.3%
9. Philippines PAL B737-300 CFM56-3B1 24677 Mar-90 16,549 1.4%
10. Philippines PAL B737-400 CFM56-3C1 25594 May-92 21,589 1.8%
11. South Korea Asiana B737-400 CFM56-3C1 25764 Jun-92 21,863 1.8%
12. South Korea Asiana B737-400 CFM56-3C1 25765 Jul-92 20,782 1.7%
13. South Korea Asiana B737-500 CFM56-3C1 25768 May-95 18,825 1.6%
14. Taiwan FEAT MD83 JT8D-219 49952 Dec-91 15,032 1.3%
Sub-total 21.9%
15. Europe
(Developed) Italy Volare Spa A320-200 CFM5-5A1 85 Feb-90 20,176 1.7%
16. Italy Blue Panorama B737-400 CFM56-3C1 24901 May-90 19,703 1.7%
17. Italy Blue Panorama B737-400 CFM56-3C1 27074 Apr-92 22,467 1.9%
18. Spain Spanair MD83 JT8D-219 49627 Apr-89 13,231 1.1%
19. Spain Spanair MD83 JT8D-219 49790 Oct-89 12,719 1.1%
20. Spain Spanair MD-82 JT8D-217C 49570 Feb-88 10,680 0.9%
21. UK Air 2000 B757-200 RB211-535E4 26158 Feb-93 32,310 2.7%
22. UK Mytravel A320-200 V2500-A1 362 Nov-92 23,437 2.0%
23. UK BMI A320-200 V2527-A5 934 Jan-99 35,663 3.0%
24. UK BMI A321-200 V2533-A5 1207 Apr-00 44,963 3.8%
25. UK Monarch (LOI) A320-200 CFM56-5A3 391 Feb-93 25,722 2.2%
26. UK British Airways B737-500 CFM56-3C1 25789 Feb-92 17,297 1.5%
27. UK British Airways B737-300 CFM56-3C1 24908 Mar-91 18,284 1.5%
28. UK JMC Airlines A320-200 V2500-A1 354 Oct-92 22,906 1.9%
29. UK JMC Airlines A320-200 V2500-A1 411 Mar-93 24,686 2.1%
30. Belgium Virgin Express B737-400 CFM56-3C1 24270 May-89 19,671 1.7%
31. Belgium Virgin Express B737-400 CFM56-3C1 24271 Jun-89 17,922 1.5%
32. Finland Finnair MD-82 JT8D-219 49905 Oct-90 13,239 1.1%
33. Finland Finnair MD-82 JT8D-219 53245 Apr-92 14,791 1.2%
34. France Europe Airpost B737-300QC CFM56-3B2 24021 Nov-88 18,303 1.5%
35. France Aigle Azur B737-400 CFM56-3C1 26066 Jun-92 22,107 1.9%
36. France Aigle Azur (LOI) B737-400 CFM56-3C1 23979 Jan-89 17,726 1.5%
37. Norway Braathens SAFE B737-500 CFM56-3C1 24651 Apr-90 15,630 1.3%
38. Iceland Islandsflug (LOI) B737-300 CFM56-3B2 25041 Mar-91 17,240 1.4%
Sub-total 42.1%
(Table continue)
% of
Aircraft
Appraisal % of by
Date of Value of Aircraft by Appraised
Aircraft Engine erial Manufacturer Februry 19, Appraised Value in
No. Region Country Lessee Type Configuration umber /Conversion 2003(US$m) Value Region
- ------------------------------------------------------------------------------------------------------------------------------------
39. Europe
(Emerging) Hungary Malev B737-300 CFM56-3C1 24909 Apr-91 18,019 1.5%
40. Hungary Malev B737-400 CFM56-3C1 24904 Feb-91 20,299 1.7%
41. Turkey Pegasus B737-400 CFM56-3C1 24685 May-90 19,435 1.6%
Sub-total 4.9%
42. Latin
America Brazil TAM Fokker 100 TAY650-15 11341 Aug-91 8,235 0.7%
43. (Emerging) Brazil TAM Fokker 100 TAY650-15 11350 Apr-92 8,909 0.7%
44. Brazil TAM Fokker 100 TAY650-15 11351 Sep-91 7,869 0.7%
45. Brazil TAM Fokker 100 TAY650-15 11320 Apr-91 7,653 0.6%
46. Brazil TAM Fokker 100 TAY650-15 11322 Jun-91 8,183 0.7%
47. Brazil Nordeste B737-500 CFM56-3C1 26067 Jun-92 18,284 1.5%
48. Brazil Varig B737-300 CFM56-3C1 24834 Jun-90 18,095 1.5%
49. Chile AILL (1) DC8-71F CFM56-2C1 46040 Mar-91 9,912 0.8%
50. Columbia Avianca B757-200 RB211-535E4 26152 Aug-92 30,330 2.6%
Sub-total 9.9%
51. North
America Canada Air Canada A320-200 CFM56-5A1 403 Dec-93 24,859 2.1%
52. (Devoloped) Canada Air Canada B767-300ER PW4060 24947 Mar-91 45,543 3.8%
53. Canada Air Canada B767-300ER PW4060 24999 Feb-91 48,973 4.1%
54. USA BAX Global DC8-71F CFM56-2C1 46064 Mar-92 10,280 0.9%
55. USA Delta B737-300 CFM56-3B1 23345 Jul-85 13,280 1.1%
56. USA Frontier B737-300 CFM56-3C1 24856 Aug-90 18,803 1.6%
57. USA Frontier B737-300 CFM56-3B2 26440 Mar-92 18,821 1.6%
58. USA Frontier B737-300 CFM56-3B2 26442 May-92 18,564 1.6%
Sub-total 16.7%
59. Off-Lease AOG (2) MD-82 JT8D-219 49931 Aug-90 14,566 1.2%
60. AOG (2) MD-82 JT8D-219 49932 Sep-90 13,656 1.1%
61. AOG (3) A320-200 CFM56-5A3 299 Apr-92 25,828 2.2%
Sub-total 4.5%
----------------------------------
Total 1,189,371 100.0% 100.0%
==================================
1. This DC8-71F aircraft is scheduled to redeliver from AIIL in March 2003.
2. The two MD-82 aircraft off lease were repossessed from Vanguard Airlines Inc. in October 2002.
3. The one A320-200 aircraft off lease was redelivered from MyTravel in February 2003.
Item 24
POWER OF ATTORNEY
Each of the undersigned, being a Director and officer of AerCo Limited,
hereby individually appoints John McMahon, Huib van Doorn, Sean Brennan, Brian
Marks, Wouter Marinus den Dikken, Pat Keating, Aengus Kelly and Caroline Jones
and each of them, acting on behalf of debis AirFinance Administrative Services
Limited, as Administrative Agent of AerCo Limited, his true and lawful
attorney-in-fact and agent (each an "Attorney-in-Fact"), with full power by
power of attorney of substitution and resubstitution, for him and in his name,
place and stead, in his capacity as a Director and an officer of AerCo Limited,
to sign each Report on Form 6-K which will be filed at least monthly, provided
that where any such Report on Form 6-K is required to contain any information in
addition to or other than a copy of the relevant monthly report to noteholders
the contents of such Report on Form 6-K shall be approved by any one Director of
AerCo Limited prior to the filing thereof, each such Report on Form 6-K
containing a monthly report to noteholders to be filed monthly on or about the
15th day of each month and each other Report on Form 6-K to be filed within the
time prescribed by the Securities and Exchange Commission (the "SEC") upon the
occurrence of certain events listed in the SEC rules and regulations with the
SEC and any amendments thereto, and to file the same with any exhibits thereto
and any other documents in connection therewith with the SEC, granting unto said
Attorney-in-Fact full power and authority to do and perform each and every act
and thing requisite and necessary to be done in and about the premises as fully
to all intents and purposes as he might or could do in person, hereby ratifying
and confirming all that said Attorney-in-Fact, or his substitute, may lawfully
do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, each of the undersigned has caused this Power of Attorney to
be duly executed and delivered in Shannon, Ireland on the date indicated below.
Dated: 24 July 2002 /s/ G. Adrian Robinson
------------------------------
G. Adrian Robinson
Witness: /s/ B. C. Robins
Dated: 24 July 2002 /s/ Peter Sokell
------------------------------
Peter Sokell
Witness: /s/ B. C. Robins
Dated: 24 July 2002 /s/ Kenneth N. Peters
------------------------------
Kenneth N. Peters
Witness: /s/ B. C. Robins
Dated: 24 July 2002 /s/ M. John McMahon
------------------------------
M. John McMahon
Witness: /s/ B. C. Robins
Dated: 9 August 2002 /s/ Sean Brennan
------------------------------
Sean Brennan
Witness: Marian Kennedy