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 May 16, 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 May 2003, including
additional information excluded form the 6-K, filed May 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: May 16, 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 May-03
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 15-May-03
Current Calculation Date 9-May-03
Previous Payment Date 15-Apr-03
Previous Calculation Date 9-Apr-03
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1. Account Activity Summary between Calculation Dates
- ----------------------------------------------------------------------------------------------------------------------------------
Prior Deposits Withdrawals Balance on
Balance Calculation Date
9-Apr-03 9-May-03
- ----------------------------------------------------------------------------------------------------------------------------------
Expense Account 3,089,804.87 1,913,769.63 (1,226,800.03) 3,776,774.47
Collection Account 92,094,625.14 13,870,486.84 (11,059,223.15) 94,905,888.83
Aircraft Purchase Account - - - -
- Liquidity Reserve cash balance 81,035,402.00 (486,380.95) 80,549,021.05
- ----------------------------------------------------------------------------------------------------------------------------------
Total 95,184,430.01 15,784,256.47 (12,286,023.18) 98,682,663.30
- ----------------------------------------------------------------------------------------------------------------------------------
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 3,089,804.87
Transfer from Collection Account on previous Payment Date 1,910,195.13
Permitted Aircraft Accrual -
Interim Transfer from Collection Account -
Interest Income 3,574.50
Balance on current Calculation Date
- Payments on previous payment date (547,293.15)
- Interim payments
- Other (679,506.88)
- ----------------------------------------------------------------------------------------------------------------------------------
Balance on Current Calculation Date 3,776,774.47
- ----------------------------------------------------------------------------------------------------------------------------------
4. Analysis of Collection Account Activity
- ----------------------------------------------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 92,094,625.14
Collections during period 13,870,486.84
Transfer to Expense Account on previous Payment Date
- Required Expense Amount (1,910,195.13)
- Permitted Aircraft Modifications -
Interim Transfer to Expense Account -
Net Swap payments on previous Payment Date (3,531,473.79)
Aggregate Note Payments on previous Payment Date (5,617,554.23)
- ----------------------------------------------------------------------------------------------------------------------------------
Balance on Current Calculation Date 94,905,888.83
- ----------------------------------------------------------------------------------------------------------------------------------
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 15,549,021.05
-------------------
Liquidity Reserve Amount 80,549,021.05
-------------------
A Liquidity Facility of $35 million is also available to AerCo as a primary eligible credit facility, but remains undrawn.
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Page 1
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-May-03
Current Calculation Date 9-May-03
Previous Payment Date 15-Apr-03
Previous Calculation Date 9-Apr-03
- -----------------------------------------------------------------------------------------------------------------
Balance in Collection and Expense Account 98,682,663.30
Liquidity Reserve Amount (80,549,021.05)
---------------------
Available Collections 18,133,642.25
=====================
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 1,180,534.25
b) Swap Payments other than subordinated swap payments 3,396,926.65
(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 230,656.09
(vi) Class B Minimum principal payment 1,353,740.12
(vii) Class C Interest 388,411.84
(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 50,549,021.05
(xii) Class A Scheduled principal 5,875,039.96
(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 98,682,663.30
less collection Account Top Ups (iii) (b) and (xi) (b) above 80,549,021.05
---------------------
18,133,642.25
=====================
0.00
- -----------------------------------------------------------------------------------------------------------------
Page 2
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-May-03
Current Calculation Date 9-May-03
Previous Payment Date 15-Apr-03
Previous Calculation Date 9-Apr-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 1.31000% 1.31000% 1.31000%
Applicable Margin 0.3200% 0.4600% 0.5200%
Applicable Interest Rate 1.63000% 1.77000% 1.83000%
Day Count Act/360 Act/360 Act/360
Actual Number of Days 30 30 30
Interest Amount Payable 150,011.83 804,884.10 225,638.33 1,180,534.25
Increase in Step-up Interest Amount Payable
in Current Month NA 228,171.25 NA 228,171.25
Total Step-up Interest Amount Payable to date NA 652,961.49 NA 652,961.49
- ------------------------------------------------------------------------------------------------------------------------------------
Total Interest Paid 150,011.83 804,884.10 225,638.33 1,180,534.25
- ------------------------------------------------------------------------------------------------------------------------------------
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 110,438,157.47 545,684,134.79 147,959,557.46 804,081,849.72
- ------------------------------------------------------------------------------------------------------------------------------------
Extended Pool Factors 49.65% 100.00% 76.10%
Pool Factors 36.85% 100.00% 66.06%
- ------------------------------------------------------------------------------------------------------------------------------------
Minimum Principal Payment - - - -
Scheduled Principal Payment 3,573,157.47 2,301,882.49 - 5,875,039.96
Supplemental Principal Payment - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total Principal Distribution Amount 3,573,157.47 2,301,882.49 - 5,875,039.96
- ------------------------------------------------------------------------------------------------------------------------------------
Redemption Amount
- - amount allocable to principal -
- - amount allocable to premium
- ------------------------------------------------------------------------------------------------------------------------------------
Closing Outstanding Principal Balance 106,865,000.00 543,382,252.30 147,959,557.46 798,206,809.76
- ------------------------------------------------------------------------------------------------------------------------------------
5. Payments on the Notes by Subclass (continued)
- ---------------------------------------------------------------------------------------------------------------
Subclass Subclass Total
Floating Rate Notes B-1 B-2 Class B
- ---------------------------------------------------------------------------------------------------------------
Applicable LIBOR 1.31000% 1.31000%
Applicable Margin 0.6000% 1.0500%
Applicable Interest Rate 1.91000% 2.36000%
Day Count Act/360 Act/360
Actual Number of Days 30 30
Interest Amount Payable 99,280.06 131,376.03 230,656.09
Increase in Step-up Interest Amount Payable
in Current Month NA NA
Total Step-up Interest Amount Payable to date NA NA
- ---------------------------------------------------------------------------------------------------------------
Total Interest Paid 99,280.06 131,376.03 230,656.09
- ---------------------------------------------------------------------------------------------------------------
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 62,374,909.62 66,801,369.53 129,176,279.15
- ---------------------------------------------------------------------------------------------------------------
Extended Pool Factors 80.09% 98.39%
Pool Factors 73.15% 96.37%
- ---------------------------------------------------------------------------------------------------------------
Minimum Principal Payment 755,762.99 597,977.13 1,353,740.12
Scheduled Principal Payment - - -
Supplemental Principal Payment - - -
- ---------------------------------------------------------------------------------------------------------------
Total Principal Distribution Amount 755,762.99 597,977.13 1,353,740.12
- ---------------------------------------------------------------------------------------------------------------
Redemption Amount
- - amount allocable to principal
- - amount allocable to premium
- ---------------------------------------------------------------------------------------------------------------
Closing Outstanding Principal Balance 61,619,146.63 66,203,392.39 127,822,539.03
- ---------------------------------------------------------------------------------------------------------------
5. Payments on the Notes by Subclass (continued)
- -------------------------------------------------------------------------------------------------------------
Subclass Subclass Total
Floating Rate Notes C-1 C-2 Class C
- -------------------------------------------------------------------------------------------------------------
Applicable LIBOR 1.31000% 1.31000%
Applicable Margin 1.3500% 2.0500%
Applicable Interest Rate 2.66000% 3.36000%
Day Count Act/360 Act/360
Actual Number of Days 30 30
Interest Amount Payable 175,641.37 212,770.46 388,411.84
Increase in Step-up Interest Amount Payable
in Current Month NA NA
Total Step-up Interest Amount Payable to date NA NA
- -------------------------------------------------------------------------------------------------------------
Total Interest Paid 175,641.37 212,770.46 388,411.84
- -------------------------------------------------------------------------------------------------------------
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 97.80% 97.44%
Pool Factors 92.52% 94.22%
- -------------------------------------------------------------------------------------------------------------
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
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-May-03
Current Calculation Date 9-May-03
Previous Payment Date 15-Apr-03
Previous Calculation Date 9-Apr-03
- -------------------------------------------------------------------------------
6. Floating Rate Note information for next Interest Accrual Period
Start of Interest Accrual Period 16-May-03
End of Interest Accrual Period 16-Jun-03
Reference Date 10-Jun-03
- -----------------------------------------------------------------------------------------------------------------------------------
A-2 A-3 A-4 B-1 B-2 C-1 C-2
- -----------------------------------------------------------------------------------------------------------------------------------
Applicable LIBOR 1.3100% 1.3100% 1.3100% 1.3100% 1.3100% 1.3100% 1.3100%
Applicable Margin 0.3200% 0.4600% 0.5200% 0.6000% 1.0500% 1.3500% 2.0500%
Applicable Interest Rate 1.6300% 1.7700% 1.8300% 1.9100% 2.3600% 2.6600% 3.3600%
- -----------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------
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 110,438.16 545,684.13 147,959.56 62,374.91 66,801.37 79,236.71 75,989.45
Total Principal Payments 3,573.16 2,301.88 - 755.76 597.98 - -
Closing Outstanding Principal Balance 106,865.00 543,382.25 147,959.56 61,619.15 66,203.39 79,236.71 75,989.45
Total Interest 150.01 804.88 225.64 99.28 131.38 175.64 212.77
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
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
- -----------------------------------------------------------------------------------------------------------
July 2000 to Oct-Dec Jan-Mar Apr-Jun Jul-Sept
Sept 2001 2001 2002 2002 2002
- -----------------------------------------------------------------------------------------------------------
CASH COLLECTIONS
[1] Lease Rentals 217.6 45.4 45.4 46.0 45.9
[2] - Renegotiated Leases (3.0) (2.8) (2.1) (3.0) (4.0)
[3] - Rental Resets (1.3) (3.2) (4.1) (3.2) (3.5)
------------------------------------------------------
[4] S[1]..[3] Contracted Lease Rentals 213.3 39.4 39.2 39.8 38.4
[5] Movement in Current Arrears Bal. (0.8) (2.4) 1.4 (0.9) (2.3)
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
[9] - AOG (4.3) (1.5) (0.4) - -
[10] - Other Leasing Income - - - - -
[11] - Repossession Costs (0.3) - - - -
------------------------------------------------------
[12] S[6]..[11] sub-total (3.4) (1.4) (1.7) (0.4) 0.6
[13] [4]+[5]+[12] Net Lease Rentals 209.1 35.6 38.9 38.5 36.7
[14] Interest Earned 5.8 0.8 0.4 0.4 0.3
[15] Drawings from Expense Account
Maintenance Receipts 22.6 4.5 3.6 6.1 4.9
Maintenance Payments (11.8) (1.8) (3.9) (10.1) -
------------------------------------------------------
[15] Net Maintenance 10.8 2.7 (0.3) (4.0) 4.9
[16] S[13]..[15] Total Cash Collections 225.7 39.1 39.0 34.9 41.9
- -----------------------------------------------------------------------------------------------------------
CASH EXPENSES
Aircraft Operating Expenses
[17] - Insurance (0.1) - - (0.3) -
[18] - Re-leasing and other overheads (7.5) (0.7) (0.4) (1.4) (0.8)
------------------------------------------------------
[19] [17]+[18] subtotal (7.6) (0.7) (0.4) (1.7) (0.8)
SG&A Expenses
[20] Aircraft Servicer Fees
- Retainer Fee (1.6) (0.4) (0.3) (0.7) (0.7)
- Rent Collected Fee (1.9) (0.4) (0.4) (0.7) (0.9)
- Previous Servicer Fees (1.8) - - - -
------------------------------------------------------
[21] sub-total (5.3) (0.8) (0.7) (1.3) (1.6)
[22] Other Servicer Fees (13.1) (0.4) (1.2) (0.9) (1.1)
------------------------------------------------------
[23] [21]+[22] subtotal (18.4) (1.2) (1.9) (2.3) (2.7)
[24] [20]+[23] Total Cash Expenses (26.0) (1.9) (2.3) (4.0) (3.5)
- -----------------------------------------------------------------------------------------------------------
NET CASH COLLECTIONS
[25] [17] Total Cash Collections 225.7 39.1 39.0 34.9 41.9
[26] [24] Total Cash Expenses (26.0) (1.9) (2.3) (4.0) (3.5)
[27] Movement in Expense Account 6.0 1.2 0.3 1.2 -
[28] Interest Payments (111.6) (12.0) (9.3) (9.5) (10.2)
[29] Swap Payments (12.1) (9.3) (10.7) (10.5) (10.9)
[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
======================================================
- -----------------------------------------------------------------------------------------------------------
[33] PRINCIPAL PAYMENTS
subclass A 115.6 14.4 14.4 9.1 14.4
subclass B 14.8 1.8 1.7 1.8 1.7
subclass C 2.1 0.9 0.9 1.2 1.2
subclass D - - - - -
------------------------------------------------------
Total 132.5 17.1 17.0 12.1 17.3
======================================================
- -----------------------------------------------------------------------------------------------------------
Debt Balances
subclass A 882.8 868.4 984.0 844.9 830.5
subclass B 140.0 138.2 153.1 134.7 133.0
subclass C 162.0 161.1 163.2 158.9 157.7
subclass D 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
=======================================================
-------------------------------------------------------------------------------------------
* Adjusted Base Case are July 2000 Prospectus Base Case
cashflows adjusted for aircraft sales.
- ----------------------------------------------------------------------------------------------
Oct-Dec Jan-Mar April May
2002 2003 2003 2003
- ----------------------------------------------------------------------------------------------
CASH COLLECTIONS
[1] Lease Rentals 44.6 45.3 16.5 13.7
[2] - Renegotiated Leases (1.8) (2.4) (0.4) (0.7)
[3] - Rental Resets (5.3) (8.0) (3.1) (2.5)
------------------------------------------
[4] S[1]..[3] Contracted Lease Rentals 37.4 34.8 13.0 10.5
[5] Movement in Current Arrears Bal. (0.1) (2.3) (2.1) 0.5
less Net Stress-related Costs
[6] - Bad Debts - - - -
[7] - Security Deposits Drawn Down - -
[8] - Restructured Arrears 0.4 0.3 0.1 0.0
[9] - AOG (0.8) (1.4) (0.6) (0.6)
[10] - Other Leasing Income - - - -
[11] - Repossession Costs (0.1) - (0.5) (0.0)
------------------------------------------
[12] S[6]..[11] sub-total (0.5) (1.1) (1.0) (0.6)
[13] [4]+[5]+[12] Net Lease Rentals 36.9 31.4 9.9 10.4
[14] Interest Earned 0.2 0.3 0.1 0.1
[15] Drawings from Expense Account
Maintenance Receipts 5.5 3.7 0.5 1.3
Maintenance Payments (1.6) (3.1) - (1.1)
------------------------------------------
[15] Net Maintenance 3.9 0.6 0.5 0.3
[16] S[13]..[15] Total Cash Collections 41.0 32.3 10.5 10.8
- ----------------------------------------------------------------------------------------------
CASH EXPENSES
Aircraft Operating Expenses
[17] - Insurance (0.1) -
[18] - Re-leasing and other overheads (1.7) (0.8) (1.1) (0.7)
-----------------------------------------
[19] [17]+[18] subtotal (1.8) (0.8) (1.1) (0.7)
SG&A Expenses
[20] Aircraft Servicer Fees
- Retainer Fee 0.1 (0.4) (0.1) (0.1)
- Rent Collected Fee 0.3 (0.4) (0.1) (0.1)
- Previous Servicer Fees - -
-----------------------------------------
[21] sub-total 0.4 (0.8) (0.2) (0.2)
[22] Other Servicer Fees (2.7) (0.5) (0.2) (0.2)
-----------------------------------------
[23] [21]+[22] subtotal (2.3) (1.3) (0.4) (0.4)
[24] [20]+[23] Total Cash Expenses (4.1) (2.1) (1.5) (1.1)
- ----------------------------------------------------------------------------------------------
NET CASH COLLECTIONS
[25] [17] Total Cash Collections 41.0 32.3 10.5 10.8
[26] [24] Total Cash Expenses (4.1) (2.1) (1.5) (1.1)
[27] Movement in Expense Account 0.3 1.5
[28] Interest Payments (9.4) (8.6) (2.4) (2.5)
[29] Swap Payments (10.5) (11.0) (3.4) (3.3)
[30] Proceeds from sale of aircraft - - - 3.4
[31] Refinancing Costs - - - -
-----------------------------------------
[32] S [25]..[31] TOTAL 17.3 12.2 3.2 7.3
=========================================
- ----------------------------------------------------------------------------------------------
[33] PRINCIPAL PAYMENTS
subclass A 13.7 10.1 2.6 5.9
subclass B 2.0 1.2 0.6 1.4
subclass C 1.6 0.9
subclass D -
------------------------------------------
Total 17.2 12.2 3.2 7.3
==========================================
- ----------------------------------------------------------------------------------------------
Debt Balances
subclass A 816.8 806.7 804.1 798.2
subclass B 131.0 129.8 129.2 127.8
subclass C 156.1 155.2 155.2 155.2
subclass D 100.0 100.0 100.0 100.0
------------------------------------------
TOTAL 1,204.0 1,191.7 1,188.5 1,181.2
==========================================
------------------------------------------------------------------------------
* Adjusted Base Case are July 2000 Prospectus Base Case
cashflows adjusted for aircraft sales.
All amounts in millions Dollar amounts expressed
of US dollars as a percentage
unless otherwise stated 2000 Base Case Lease Rentals
- --------------------------------------------------------------------------------------- ---------------------------------
Cumulative to Date Cumulative to Date
Actual *Adjusted Variance Actual *Adjusted Variance
- --------------------------------------------------------------------------------------- ---------------------------------
CASH COLLECTIONS
[1] Lease Rentals 520.4 520.4 (0.0) 100.0% 100.0% 0.0%
[2] - Renegotiated Leases (20.2) - (20.2) (3.9%) 0.0% (3.9%)
[3] - Rental Resets (34.3) - (34.3) (6.6%) 0.0% (6.6%)
----------------------------------- ---------------------------------
[4] S[1]..[3] Contracted Lease Rentals 465.9 520.4 (54.5) 89.5% 100.0% (10.5%)
[5] Movement in Current Arrears Bal. (9.0) - (9.0) (1.7%) 0.0% (1.7%)
less Net Stress-related Costs
[6] - Bad Debts - (5.2) 5.2 0.0% (1.0%) 1.0%
[7] - Security Deposits Drawn Down 0.5 - 0.5 0.1% 0.0% 0.1%
[8] - Restructured Arrears 0.5 3.2 (2.7) 0.1% 0.6% (0.5%)
[9] - AOG (9.6) (22.0) 12.4 (1.8%) (4.2%) 2.4%
[10] - Other Leasing Income - - - 0.0% 0.0% 0.0%
[11] - Repossession Costs (0.9) (4.2) 3.3 (0.2%) (0.8%) 0.6%
----------------------------------- ---------------------------------
[12] S[6]..[11] sub-total (9.5) (28.2) 18.7 (1.8%) (5.4%) 3.6%
[13] [4]+[5]+[12] Net Lease Rentals 447.4 492.2 (44.8) 86.0% 94.6% (8.6%)
[14] Interest Earned 8.4 10.3 (1.9) 1.6% 2.0% (0.4%)
[15] Drawings from Expense Account - - - 0.0% 0.0% 0.0%
Maintenance Receipts 52.7 - 52.7 10.1% 0.0% 10.1%
Maintenance Payments (33.3) - (33.3) (6.4%) 0.0% (6.4%)
----------------------------------- ---------------------------------
[15] Net Maintenance 19.4 - 19.4 3.7% 0.0% 3.7%
[16] S[13]..[15] Total Cash Collections 475.2 502.5 (27.3) 91.3% 96.6% (5.2%)
- ----------------------------------------------------------------------------------------------------------------------------
CASH EXPENSES
Aircraft Operating Expenses
[17] - Insurance (0.5) - (0.5) (0.1%) 0.0% (0.1%)
[18] - Re-leasing and other overheads (15.1) (15.7) 0.6 (2.9%) (3.0%) 0.1%
---------------------------------- ---------------------------------
[19] [17]+[18] subtotal (15.6) (15.7) 0.1 (3.0%) (3.0%) 0.0%
SG&A Expenses
[20] Aircraft Servicer Fees
- Retainer Fee (4.2) (4.3) 0.1 (0.8%) (0.8%) 0.0%
- Rent Collected Fee (4.6) (4.9) 0.3 (0.9%) (0.9%) 0.1%
- Previous Servicer Fees (1.8) - (1.8) (0.3%) 0.0% (0.3%)
---------------------------------- ---------------------------------
[21] sub-total (10.5) (9.2) (1.3) (2.0%) (1.8%) (0.3%)
[22] Other Servicer Fees (20.3) (11.4) (8.9) (3.9%) (2.2%) (1.7%)
---------------------------------- ---------------------------------
[23] [21]+[22] subtotal (30.9) (20.6) (10.3) (5.9%) (4.0%) (2.0%)
[24] [20]+[23] Total Cash Expenses (46.5) (36.3) (10.2) (8.9%) (7.0%) (2.0%)
- --------------------------------------------------------------------------------------- ---------------------------------
NET CASH COLLECTIONS
[25] [17] Total Cash Collections 475.2 502.5 (27.3) 91.3% 96.6% (5.2%)
[26] [24] Total Cash Expenses (46.5) (36.3) (10.2) (8.9%) (7.0%) (2.0%)
[27] Movement in Expense Account 10.5 - 10.5 2.0% 0.0% 2.0%
[28] Interest Payments (175.5) (276.5) 101.0 (33.7%) (53.1%) 19.4%
[29] Swap Payments (81.7) 4.9 (86.6) (15.7%) 0.9% (16.6%)
[30] Proceeds from sale of aircraft 53.9 51.1 2.8 10.4% 9.8% 0.5%
[31] Refinancing Costs - (2.3) 2.3 0.0% (0.4%) 0.4%
---------------------------------- ---------------------------------
[32] S [25]..[31] TOTAL 236.0 243.4 (7.4) 45.3% 46.8% (1.4%)
================================== =================================
- --------------------------------------------------------------------------------------- ---------------------------------
[33] PRINCIPAL PAYMENTS
subclass A 200.2 205.8 (5.6) 38.5% 39.5% (1.1%)
subclass B 27.0 27.0 (0.0) 5.2% 5.2% (0.0%)
subclass C 8.8 10.6 (1.8) 1.7% 2.0% (0.4%)
subclass D - - - 0.0% 0.0% 0.0%
---------------------------------- ---------------------------------
Total 236.0 243.4 (7.4) 45.3% 46.8% (1.4%)
================================== =================================
- --------------------------------------------------------------------------------------- ---------------------------------
Debt Balances
subclass A 798.2 792.6 5.6
subclass B 127.8 127.8 0.0
subclass C 155.2 153.4 1.8
subclass D 100.0 100.0 -
---------------------------------
TOTAL 1,181.2 1,173.8 7.4
=================================
----------------------------------------------------------------------
* Adjusted Base Case are July 2000 Prospectus Base Case
cashflows adjusted for aircraft sales.
Page 5
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
- -----------------------------------------------------------------------------------------------------------------------------------
6
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
- ------------------------------------------------------------------------------------------------------------------------------------
Coverage Ratios 2000
Closing Actual *Adjusted Base Case
- ------------------------------------------------------------------------------------------------------------------------------------
Net Cash Collections 236.0 243.4
Add Back Interest 175.5 276.5
--------
Add Back Swap Payments 81.7 (4.9)
----------------------
a Net Cash Collections 493.2 515.0
b Swaps 81.7 (4.9)
c Class A Interest 99.9 176.5
d Class A Minimum 30.5 37.9
e Class B Interest 17.2 29.5
f Class B Minimum 11.0 9.0
g Class C Interest 23.3 37.8
h Class C Minimum - -
I Class D Interest 24.1 24.1
j Class D Minimum - -
k Class A Scheduled 13.3 -
l Class B Scheduled 15.5 17.9
m Class C Scheduled 8.8 10.6
n Class D Scheduled - -
o Permited Aircraft Modifications - -
p Step Up Interest 1.9 -
q Class A Supplemental 156.4 168.0
Class E Interest 9.1 8.7
Class B Supplemental 0.5 -
------------------------------------
Total 493.2 515.0
------------------------------------
[1] Interest Coverage Ratio
Class A 2.72 3.00 = a / (b+c)
Class B 2.15 2.16 = a / (b+c+d+e)
Class C 1.87 1.80 = a / (b+c+d+e+f+g)
Class D 1.71 1.66 = a / (b+c+d+e+f+g+h+i)
[2] Debt Coverage Ratio
Class A 1.64 1.66 = a / (b+c+d+e+f+g+h+i+j+k)
Class B 1.56 1.57 = a / (b+c+d+e+f+g+h+i+j+k+l)
Class C 1.52 1.52 = a / (b+c+d+e+f+g+h+i+j+k+l+m)
Class D 1.52 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 15-May-03 15-May-03
-------------------------------------------------------------------------
[3] Assumed Portfolio Value 1,566.7 1,284.6 1,284.6
Adjusted Portfolio Value (105%) 1,225.8
Liquidity Reserve Amount
Cash 65.0 65.0 65.0
- Accrued Expenses 5.0 5.0 5.0
- Security Deposits 22.4 15.5 22.4
-------------- ----------- -------------
subtotal cash 92.4 85.5 92.4
Letters of Credit - - -
-------------- ----------- -------------
Total Liquidity Reserve 92.4 85.5 92.4
[4] Total Asset Value 1,659.1 1,370.1 1,377.0
Note Balance
Class A 998.4 60.2% 798.2 58.3% 792.6 57.6%
Class B 154.8 69.5% 127.8 67.6% 127.8 66.8%
Class C 164.1 79.4% 155.2 78.9% 153.4 78.0%
Class D 100.0 85.4% 100.0 86.2% 100.0 85.2%
----------------- -------------- ----------------
Total 1,417.3 1,181.2 1,173.8
- ------------------------------------------------------------------------------------------------------------------------------------
* 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
7
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
----------------------