SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES AND
EXCHANGE ACT OF 1934
January 14, 1999
(Date of Earliest Event Reported)
MORGAN STANLEY AIRCRAFT FINANCE
(Exact Name of Registrant as Specified in Trust Agreement)
Delaware
(State or Other Jurisdiction of Incorporation or Organization)
333-56575 13-3375162
(Commission File (IRS Employer
Number) Identification No.)
Morgan Stanley Aircraft Finance
c/o Wilmington Trust Company
1100 North Market Street
Rodney Square North
Wilmington, Delaware 19890-1000
Attention: Corporate Trust Administration
(302) 651-1000
(Address and Telephone Number, Including Area Code, of
Registrant's Principal Executive Office)
<PAGE>
Item 5. Other Events
Attached hereto as Exhibit A is a copy of a Monthly Report to
Noteholders dated January 14, 1999 sent to each holder of Notes due March 15,
2023 of Morgan Stanley Aircraft Finance.
2
<PAGE>
SIGNATURES
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 hereto duly authorized.
MORGAN STANLEY AIRCRAFT FINANCE
Date: January 14, 1999 By: /s/ Alexander Frank
---------------------------
Signatory Trustee
3
<PAGE>
EXHIBIT INDEX
Exhibit 99.A - Report to Noteholders
4
EXHIBIT 99.A
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 15-Jan-99
Current Calculation Date 11-Jan-99
Previous Payment Date 15-Dec-98
Previous Calculation Date 9-Dec-98
<TABLE>
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1. Account Activity Summary between Calculation Dates
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Prior Deposits Withdrawals Balance on
Balance Calculation Date
9-Dec-98 11-Jan-99
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<S> <C> <C> <C> <C>
Expense Account 1,796,334.66 2,291,448.59 (1,043,582.80) 3,044,200.45
Collection Account 13,616,098.91 9,914,254.87 (13,616,098.89) 9,914,254.89
Aircraft Purchase Account - - - -
Liquidity Reserve cash balance 25,000,000.00 - - 25,000,000.00
- --------------------------------------------------------------------------------------------
Total 38,781,891.61 12,205,703.46 (14,659,681.69) 37,958,455.34
</TABLE>
<TABLE>
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2. Analysis of Expenses Account Activity
- --------------------------------------------------------------------------------------------
<S> <C>
Opening Balance on Previous Calculation Date 1,796,334.66
Transfer from Collection Account on previous Payment Date 1,850,430.50
Permitted Aircraft Accrual 400,000.00
Interim Transfer from Collection Account 30,331.10
Interest Income 10,686.99
Balance on current Calculation Date
- Payments on previous payment date (1,005,849.83)
- Interim payments (30,331.10)
- other (7,401.87)
- --------------------------------------------------------------------------------------------
Balance on current Calculation Date 3,044,200.45
</TABLE>
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3. Analysis of Collection Account Activity
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<TABLE>
<S> <C>
Opening Balance on Previous Calculation Date 13,616,098.91
Collections during period
- lease rentals 8,640,199.00
- maintenance reserves 1,151,778.00
- other leasing income 1,883.00
- interest income 143,324.00
- interim transfer from Expense A/C 7,401.87
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 (1,850,430.50)
- Permitted Aircraft Modifications (400,000.00)
Net Swap payments on previous Payment Date (660,557.16)
Aggregate Note Payments on previous Payment Date (10,705,111.23)
Interim Transfer to Expense Account (30,331.00)
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Balance on current Calculation Date 9,914,254.89
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</TABLE>
Analysis of Liquidity Reserve Amount
<TABLE>
<S> <C> <C>
First Collection Account Reserve 15,000,000.00
Second Collection Account Reserve 10,000,000.00
Morgan Stanley Facility 10,000,000.00
ILFC Facility
- Letter of Credit 10,000,000.00
- Cash Security Deposits 20,816,351.00 30,816,351.00
--------------
Liquidity Reserve Amount 65,816,351.00
--------------
Minimum Liquidity Reserve Amount 15,000,000.00
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Balance in Collection Account 9,914,254.89
Liquidity Reserve Amount 65,816,351.00
==================
Available Collections 75,730,605.89
==================
</TABLE>
3. Analysis of Collection Account Activity (Continued)
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Analysis of Current Payment Date Distributions
<TABLE>
<S> <C> <C> <C>
(I) Required Expense Amount 1,352,275.69
(II) a) Class A Interest but excluding Step-up 3,628,649.51
b) Swap Payments other than subordinated
swap payments 388,551.22
(iii) a) Repayment of Primary Eligible Credit
Facilities -
b) First Collection Account top-up (Minimum
liquidity reserve $15 m) 15,000,000.00
(iv) Class A Minimum principal payment -
(v) Class B Interest 544,088.33
(vi) Class B Minimum principal payment 310,577.90
(vii) Class C Interest 616,666.67
(viii) Class C Minimum principal payment -
(ix) Class D Interest 843,333.33
(x) Class D Minimum principal payment -
(xi) a) Secondary Eligible Credit Facilities
(ILFC and Morgan Stanley Facilities) -
b) Second collection account top-up 50,816,351.00
(xii) Class A Scheduled principal -
(xiii) Class B Scheduled principal -
(xiv) Class C Scheduled principal -
(xv) Class D Scheduled principal -
(xvi) Permitted accruals for Modifications 400,000.00
(xvii) Step-up interest -
(xviii) Beneficial interest -
(xix) Class A Supplemental principal 1,830,112.23
(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 less collection
Account Top Ups (iii) (b) and (xi) (b) above 75,730,605.89
65,816,351.00
==================
9,914,254.89
==================
</TABLE>
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4. Payments on the Notes by Subclass
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<TABLE>
Subclass Subclass Subclass
<S> <C> <C> <C>
(a) Floating Rate Notes A-1 A-2 B-1
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Applicable LIBOR 5.53547% 5.53547% 5.53547%
Applicable Margin 0.7100% 0.8500% 1.1500%
Applicable Interest Rate** 6.24547% 6.38547% 6.68547%
Day Count Act/360 Act/360 Act/360
Actual Number of Days 31 31 31
Interest Amount Payable 2,151,217.44 1,477,432.06 544,088.33
Step-up Interest Amount Payable - NA NA
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
Total Interest Paid 2,151,217.44 1,477,432.06 544,088.33
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Expected Final Payment Date 15-Mar-00 15-Sep-05 15-Mar-13
Excess Amortisation Date 15-Mar-00 15-Apr-98 15-Apr-98
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Original Balance 400,000,000.00 340,000,000.00 100,000,000.00
Opening Outstanding Principal Balance 400,000,000.00 268,692,446.59 94,510,110.96
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Extended Pool Factors 100.00% 92.92% 100.00%
expected Pool Factors 100.00% 88.60% 96.71%
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Extension Amount - - -
expected Pool Factor Amount - - -
Surplus Amortisation - 1,830,112.23 310,577.90
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Total Principal Distribution Amount - 1,830,112.23 310,577.90
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Redemption Amount
- - amount allocable to principal
- - amount allocable to premium
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Closing Outstanding Principal Balance 400,000,000.00 266,862,334.36 94,199,533.06
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</TABLE>
<TABLE>
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(b) Fixed Rate Notes C-1 D-1
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<S> <C> <C>
Applicable Interest Rate** 7.40% 9.20%
Day count 30 / 360 30 / 360
Number of Days 30 30
Interest Amount Payable 616,666.67 843,333.33
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Total Interest Paid 616,666.67 843,333.33
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Expected Final Payment Date 15-Mar-13 15-Mar-14
Excess Amortisation Date 15-Mar-13 15-Mar-10
Opening Outstanding Principal Balance 100,000,000.00 110,000,000.00
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Extended Pool Factors 100.00% 100.00%
expected Pool Factors 100.00% 100.00%
- ------------------------------------------------------------------------
Extended Amount - -
expected Pool Factor amount - -
- ---------------------------
- ------------------------------------------------------------------------
Total Principal Distribution Amount - -
- ------------------------------------------------------------------------
Redemption Amount - -
- - amount allocable to principal - -
- - amount allocable to premium - -
- ------------------------------------------------------------------------
Closing Outstanding Principal Balance 100,000,000.00 110,000,000.00
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</TABLE>
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** The Exchange Offer was not consummated on or prior to Nov 30, 1998.
Therefore pursuant to the Registration Rights Agreement, the interest rate
borne by each subclass of Notes has been increased by 0.50% per annum over
the rate otherwise applicable to such subclass from and after Nov 30, 1998
to January 18th, 1999, the date of consummation of the Exchange Offer.
5. Floating Rate Note information for next Interest Accrual Period
Start of Interest Accrual Period 15-Jan-99
End of Interest Accrual Period 15-Feb-99
Reference Date 11-Jan-99
<TABLE>
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A-1 A-2 B-1
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Applicable LIBOR 5.00000% 5.00000% 5.00000%
Applicable Margin 0.2100% 0.3500% 0.6500%
Applicable Interest Rate 5.21000% 5.3500% 5.6500%
Actual Pool Factor 100.00% 78.49% 94.20%
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Fixed Rate Notes C-1 D-1
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Actual Pool Factor 100.00% 100.00%
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</TABLE>
<TABLE>
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6. Payments per $ 100,000 Inital Outstanding Principal Balance of Notes
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<CAPTION>
(a) Floating Rate Notes A-1 A-2 B-1
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Opening Outstanding Principal Balance 100,000.00 79,027.19 94,510.11
Total Principal Payments - 538.27 310.58
Closing Outstanding Principal Balance 100,000.00 78,488.92 94,199.53
Total Interest 537.80 434.54 544.09
Total Premium - - -
- --------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
<CAPTION>
(b) Fixed Rate Notes C-1 D-1
- ----------------------------------------------------------------------------------
Opening Outstanding Principal Balance 100,000.00 100,000.00
Total Principal Payments - -
Closing Outstanding Principal Balance 100,000.00 100,000.00
Total Interest 616.67 766.67
Total Premium - -
- ----------------------------------------------------------------------------------
</TABLE>
