MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Month August-00
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 15-Aug-00
Current Calculation Date 9-Aug-00
Previous Payment Date 17-Jul-00
Previous Calculation Date 11-Jul-00
--------------------------------------------------------------------------------
1. Account Activity Summary between Calculation Dates
<TABLE>
---------------------------------------------------------------------------------------------
Prior Deposits Withdrawals Balance on
Balance Calculation Date
11-Jul-00 9-Aug-00
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expense Account 691,123.56 3,510,769.87 (4,102,913.10) 98,980.33
Collection Account 25,393,848.68 19,035,856.12 (25,593,848.68) 18,835,856.12
Aircraft Purchase Account - - - -
Liquidity Reserve cash balance 46,785,203.00 1,524,688.00 - 48,309,891.00
---------------------------------------------------------------------------------------------
Total 72,870,175.24 24,071,313.99 (29,696,761.78) 67,244,727.45
---------------------------------------------------------------------------------------------
2. Analysis of Expenses Account Activity
---------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 691,123.56
Transfer from Collection Account on previous Payment Date 3,307,296.95
Permitted Aircraft Accrual -
Interim Transfer from Collection Account 200,000.00
Transfers from Aircraft Purchase Account -
Interest Income 3,472.92
Balance on current Calculation Date
- Payments on previous payment date (807,296.95)
- Interim payments (3,295,616.15)
- Other
---------------------------------------------------------------------------------------------
Balance on current Calculation Date 98,980.33
---------------------------------------------------------------------------------------------
</TABLE>
3. Analysis of Collection Account Activity
<TABLE>
---------------------------------------------------------------------------------------------
<S> <C>
Opening Balance on Previous Calculation Date 25,393,848.68
Collections during period
- Lease rentals 16,525,363.32
- Maintenance reserves 2,133,185.02
- Other leasing income 11,561.80
- Interest income 365,745.98
- Lease rental received in error -
- Interim transfer to Expense A/C (200,000.00)
Transfers from Aircraft Purchase Account -
Drawings under Credit or Liquidity Enhancement
Facilities -
Repayment of Drawings under Credit or Liquidity
Enhancement Facilities -
Transfer to Expense Account on previous Payment Date
- Required Expense Amount (3,307,296.95)
- Permitted Aircraft Modifications -
Net Swap payments on previous Payment Date (218,266.67)
Aggregate Note Payments on previous Payment Date (21,868,285.06)
---------------------------------------------------------------------------------------------
Balance on current Calculation Date 18,835,856.12
---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
Analysis of Liquidity Reserve Amount
First Collection Account Reserve 30,000,000.00
Cash Held
- Accrued Expenses 98,980.33
- Security Deposits 18,309,891.00 18,408,871.33
Morgan Stanley Facility 30,000,000.00
ILFC Facility
- Letter of Credit 20,000,000.00
-Security Deposits 20,955,351.00 40,955,351.00
-----------------
Liquidity Reserve Amount 119,364,222.33
-----------------
Minimum Liquidity Reserve Amount 30,000,000.00
---------------------------------------------------------------------------------------------
</TABLE>
1 of 4
<PAGE>
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-Aug-00
Current Calculation Date 9-Aug-00
Previous Payment Date 17-Jul-00
Previous Calculation Date 11-Jul-00
<TABLE>
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Balance in Collection Account 18,835,856.12
Liquidity Reserve Amount 119,364,222.33
------------------
Available Collections 138,200,078.45
==================
3. Analysis of Collection Account Activity (Continued)
----------------------------------------------------------------------------------------------------------------
Analysis of Current Payment Date Distributions
(I) Required Expense Amount
- Servicer Fee 618,281.57
- Administration Agent Fee 71,791.46
- Other Service Providers 12,500.01
- Accrued Expenses 4,000,000.00
------------------
Total Required Expense Amount 4,702,573.04
(II) a) Class A Interest but excluding Step-up 7,897,254.97
b) Swap Payments other than subordinated swap payments (39,481.92)
(iii) a) Repayment of Primary Eligible Credit Facilities -
b) First Collection Account top-up (Minimum liquidity reserve $30 m) 30,000,000.00
(iv) Class A Minimum principal payment -
(v) Class B Interest 976,400.07
(vi) Class B Minimum principal payment 387,988.83
(vii) Class C Interest 1,012,987.50
(viii) Class C Minimum principal payment -
(ix) Class D Interest 797,500.00
(x) Class D Minimum principal payment -
(xi) a) Secondary Eligible Credit Facilities (ILFC and Morgan Stanley Facilities) -
b) Second collection account top-up 89,364,222.33
(xii) Class A Scheduled principal -
(xiii) Class B Scheduled principal 178,203.77
(xiv) Class C Scheduled principal 70,000.00
(xv) Class D Scheduled principal -
(xvi) Permitted accruals for Modifications
(xvii) Step-up interest -
(xviii) Beneficial interest -
(xix) Class A Supplemental principal 2,852,429.86
(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 138,200,078.45
less collection Account Top Ups (iii) (b) and (xi) (b) above 119,364,222.33
------------------
18,835,856.12
==================
----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2 of 4
<PAGE>
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-Aug-00
Current Calculation Date 9-Aug-00
Previous Payment Date 17-Jul-00
Previous Calculation Date 11-Jul-00
--------------------------------------------------------------------------------
<TABLE>
4. Payments on the Notes by Subclass
-----------------------------------------------------------------------------------------------------------------
Subclass Subclass Subclass Subclass Total
<S> <C> <C> <C> <C> <C>
Floating Rate Notes A-2 A-3 A-4 A-5 Class A
-----------------------------------------------------------------------------------------------------------------
Applicable LIBOR 6.62625% 6.62625% 6.62625% 6.62625%
Applicable Margin 0.3500% 0.5200% 0.5400% 0.5800%
Applicable Interest Rate 6.97625% 7.14625% 7.16625% 7.20625%
Day Count Act/360 Act/360 Act/360 Act/360
Actual Number of Days 29 29 29 29
Interest Amount Payable 1,232,224.25 3,338,886.81 1,154,562.50 2,171,581.41
Step-up Interest Amount Payable NA NA NA NA
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
Total Interest Paid 1,232,224.25 3,338,886.81 1,154,562.50 2,171,581.41 7,897,254.97
-----------------------------------------------------------------------------------------------------------------
Expected Final Payment Date 15-Sep-05 15-Mar-02 15-Mar-03 15-Jun-08
Excess Amortization Date 15-Apr-98 15-Mar-02 15-Mar-03 15-Apr-00
-----------------------------------------------------------------------------------------------------------------
Original Balance 340,000,000.00 580,000,000.00 200,000,000.00 400,000,000.00
Opening Outstanding Principal Balance 219,266,466.04 580,000,000.00 200,000,000.00 374,085,859.92 1,373,352,325.96
--------------------------------------------
-----------------------------------------------------------------------------------------------------------------
Extended Pool Factors 78.80% 100.00% 100.00% 100.00%
Pool Factors 69.26% 100.00% 100.00% 93.96%
-----------------------------------------------------------------------------------------------------------------
Extension Amount - - - -
Pool Factor Amount - - - -
Surplus Amortization 1,054,082.35 - - 1,798,347.51
-----------------------------------------------------------------------------------------------------------------
Total Principal Distribution Amount 1,054,082.35 - - 1,798,347.51 2,852,429.86
-----------------------------------------------------------------------------------------------------------------
Redemption Amount
- amount allocable to principal
- amount allocable to premium
-----------------------------------------------------------------------------------------------------------------
Closing Outstanding Principal Balance 218,212,383.69 580,000,000.00 200,000,000.00 372,287,512.41 1,370,499,896.10
-----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
--------------------------------------------------------------------------------
Subclass Subclass Total
Floating Rate Notes B-1 B-2 Class B
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Applicable LIBOR 6.6263% 6.6263%
Applicable Margin 0.6500% 1.0500%
Applicable Interest Rate 7.27625% 7.67625%
Day Count Act/360 Act/360
Actual Number of Days 29 29
Interest Amount Payable 512,626.63 463,773.44
Step-up Interest Amount Payable NA NA
----------------------------------------------------------------------------------
Total Interest Paid 512,626.63 463,773.44 976,400.07
----------------------------------------------------------------------------------
Expected Final Payment Date 15-Mar-13 15-Mar-07
Excess Amortization Date 15-Apr-98 15-Mar-07
----------------------------------------------------------------------------------
Original Balance 100,000,000.00 75,000,000.00
Opening Outstanding Principal Balance 87,457,699.92 75,000,000.00 162,457,699.92
----------------------------
----------------------------------------------------------------------------------
Extended Pool Factors 94.45% 100.00%
Pool Factors 90.42% 100.00%
----------------------------------------------------------------------------------
Extension Amount - -
Pool Factor Amount - -
Surplus Amortization 566,192.60 -
----------------------------------------------------------------------------------
Total Principal Distribution Amount 566,192.60 - 566,192.60
----------------------------------------------------------------------------------
Redemption Amount
- amount allocable to principal
- amount allocable to premium
----------------------------------------------------------------------------------
Closing Outstanding Principal Balance 86,891,507.32 75,000,000.00 161,891,507.32
----------------------------------------------------------------------------------
---------------------------------------------------------------------------------- ---------------
Subclass Subclass Total Subclass
Fixed Rate Notes C-1 C-2 Class C D-1
---------------------------------------------------------------------------------- ---------------
Applicable Interest Rate 6.90000% 9.60000% 8.70000%
Day count 30 / 360 30 / 360 30 / 360
Number of Days 30 30 30
Interest Amount Payable 572,987.50 440,000.00 797,500.00
---------------------------------------------------------------------------------- ---------------
Total Interest Paid 572,987.50 440,000.00 1,012,987.50 797,500.00
---------------------------------------------------------------------------------- ---------------
Expected Final Payment Date 15-Mar-13 15-Oct-16 15-Mar-14
Excess Amortization Date 15-Mar-13 15-Oct-16 15-Mar-10
Original Balance 100,000,000.00 55,000,000.00 110,000,000.00
Opening Outstanding Principal Balance 99,650,000.00 55,000,000.00 154,650,000.00 110,000,000.00
---------------------------------------------------------------------------------- ---------------
Extended Pool Factors 100.00% 100.00% 100.00%
Expected Pool Factors 99.58% 100.00% 100.00%
---------------------------------------------------------------------------------- ---------------
Extended Amount - - -
Expected Pool Factor Amount 70,000.00 - -
Surplus Amortization - -
---------------------------------------------------------------------------------- ---------------
Total Principal Distribution Amount 70,000.00 - 70,000.00 -
---------------------------------------------------------------------------------- ---------------
Redemption Amount - - -
- amount allocable to principal - - -
- amount allocable to premium - - -
---------------------------------------------------------------------------------- ---------------
Closing Outstanding Principal Balance 99,580,000.00 55,000,000.00 154,580,000.00 110,000,000.00
---------------------------------------------------------------------------------- ---------------
-----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3 of 4
<PAGE>
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-Aug-00
Current Calculation Date 9-Aug-00
Previous Payment Date 17-Jul-00
Previous Calculation Date 11-Jul-00
--------------------------------------------------------------------------------
5. Floating Rate Note information for next Interest Accrual Period
Start of Interest Accrual Period 15-Aug-00
End of Interest Accrual Period 15-Sep-00
Reference Date 13-Sep-00
<TABLE>
----------------------------------------------------------------------------------------------------------------------------
A-2 A-3 A-4 A-5 B-1 B-2
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Applicable LIBOR 6.61875% 6.61875% 6.61875% 6.61875% 6.61875% 6.61875%
Applicable Margin 0.3500% 0.5200% 0.5400% 0.5800% 0.6500% 1.0500%
Applicable Interest Rate 6.9688% 7.1388% 7.1588% 7.1988% 7.2688% 7.6688%
Actual Pool Factor 64.18% 100.00% 100.00% 93.07% 86.89% 100.00%
----------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
Fixed Rate Notes C-1 C-2 D-1
------------------------------------------------------------------------------------
Actual Pool Factor 99.58% 100.00% 100.00%
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
6. Payments per $ 100,000 Initial Outstanding Principal Balance of Notes
----------------------------------------------------------------------------------------------------------------------------
(a) Floating Rate Notes A-2 A-3 A-4 A-5 B-1 B-2
----------------------------------------------------------------------------------------------------------------------------
Opening Outstanding Principal Balance 64,490.14 100,000.00 100,000.00 93,521.46 87,457.70 100,000.00
Total Principal Payments 310.02 - - 449.59 566.19 -
Closing Outstanding Principal Balance 64,180.11 100,000.00 100,000.00 93,071.88 86,891.51 100,000.00
Total Interest 362.42 575.67 577.28 542.90 512.63 618.36
Total Premium 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------
(b) Fixed Rate Notes C-1 C-2 D-1
-----------------------------------------------------------------------------
Opening Outstanding Principal Balance 99,650.00 100,000.00 100,000.00
Total Principal Payments 70.00 - -
Closing Outstanding Principal Balance 99,580.00 100,000.00 100,000.00
Total Interest 572.99 800.00 725.00
Total Premium - - -
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
</TABLE>
Page 4 of 4
<PAGE>
<TABLE>
Cumulative Performance to Date - March 15, 2000 to June 15, 2000 MORGAN STANLEY AIRCRAFT FINANCE
All amounts in millions
of US dollars
------------------------------------------------------------------------------------------- ---------------------------
unless otherwise stated
Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Cumulative to Date
Actual Basecase Variance
------------------------------------------------------------------------------------------- ---------------------------
CASH COLLECTIONS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
[1] Lease Rentals 26.3 18.2 22.7 16.9 18.2 102.3 102.3 0.0
[2] - Renegotiated Leases - - - - - - - -
[3] - Rental Resets (0.1) 0.0 0.0 0.0 (0.0) - (0.0)
--------------------------------------- ---------------------------
[4] Sum of [1].[3] Contracted Lease Rentals 26.3 18.1 22.7 17.0 18.2 102.3 102.3 (0.0)
-
[5] Movement in Current Arrears Balance (1.7) (0.5) (0.5) 2.1 (1.2) (1.8) - (1.8)
less Net Stress-related Costs
[6] - Bad Debts - - - - - - -
[7] - Security Deposits Drawn Down - - - - - - -
[8] - Restructured Arrears - - - - - - -
[9] - AOG (0.4) (0.3) (0.8) (0.5) (0.5) (2.6) (2.6)
[10] - Other Leasing Income - (0.6) 0.7 4.2 0.1 4.4 4.4
[11] - Repossession Costs - (0.1) (0.1) (0.1) (0.1) (0.4) (0.4)
--------------------------------------- ---------------------------
[12] Sum of [6].[11] sub-total (0.4) (1.0) (0.2) 3.6 (0.6) 1.4 (4.6) 6.0
-
[13] [4]+[5]+[12] Net2Lease Rentals 24.2 16.6 22.1 22.7 16.4 101.9 97.7 4.2
[14] Interest Earned 0.2 0.3 0.3 0.3 0.4 1.5 1.0 0.6
[15] Drawings from Expense Account 2.0 3.1 5.1 - 5.1
Maintenance Receipts 1.9 2.1 2.4 2.3 2.1 10.9 - 10.9
Maintenance Payments (0.1) (5.2) (3.4) (2.0) (3.0) (13.7) - (13.7)
--------------------------------------- ---------------------------
[16] Net Maintenance 1.8 (3.1) (1.0) 0.3 0.9 (2.8) - (2.8)
[17] Sum of [13].[16] Total Cash Collections 26.3 13.8 21.3 25.4 19.0 105.8 98.7 7.1
-------------------------------------------------------------------------------------------------- ---------------------------
CASH EXPENSES
Aircraft Operating Expenses
[18] - Insurance (0.2) (0.1) 0.1 (0.4)
[19] - Re-leasing and other overheads (0.1) (0.5) - (0.6)
--------------------------------------- ---------------------------
[20] [18]+[19] subtotal (0.3) (0.1) (0.5) - (0.1) (1.0) (0.8) (0.2)
SG&A Expenses
[21] Aircraft Servicer Fees
- Base Fee (0.2) (0.2) (0.2) (0.2) (0.2) (1.1)
- Rent Collected Fee (0.3) (0.2) (0.3) (0.3) (0.2) (1.3)
- Rent Contracted Fee (0.2) (0.2) (0.2) (0.2) (0.2) (0.9)
- Incentive Fee - - - - -
--------------------------------------- ---------------------------
sub-total (0.7) (0.6) (0.7) (0.7) (0.6) (3.3) (3.5) 0.2
[22] Other Servicer Fees (0.8) (0.1) (0.1) (0.1) (0.1) (1.2) (0.8) (0.4)
--------------------------------------- ---------------------------
[23] [21]+[22] subtotal (1.5) (0.7) (0.8) (0.8) (0.8) (4.5) (4.3) (0.2)
[24] [20]+[23] Total Cash Expenses (1.8) (0.8) (1.3) (0.8) (0.9) (5.5) (5.1) (0.4)
-------------------------------------------------------------------------------------------------- ---------------------------
NET CASH COLLECTIONS
[25] [17] Total Cash Collections 26.3 13.8 21.3 25.4 19.0 105.8 98.7 7.1
[26] [24] Total Cash Expenses (1.8) (0.8) (1.3) (0.8) (0.9) (5.5) (5.1) (0.4)
[27] Accrued Expenses (2.5) (4.0) (6.5) - (6.5)
[28] Interest Payments (11.3) (9.8) (11.3) (11.7) (10.7) (54.8) (52.0) (2.8)
[29] Swap Payments (0.6) (0.8) (0.1) (0.2) 0.0 (1.7) (4.3) 2.6
[30] Exceptional Item - - - - - - -
--------------------------------------- ---------------------------
[31] Sum of [25].[30] TOTAL 12.6 2.4 8.7 10.2 3.5 37.3 37.2 0.1
======================================= ===========================
-------------------------------------------------------------------------------------------------- ---------------------------
[32] PRINCIPAL PAYMENTS
subclass A2 1.1 0.1 1.0 3.2 1.1 6.4 7.2 (0.8)
subclass A3 - - - - - - - -
subclass A4 - - - - - - - -
subclass A5 10.9 1.6 7.1 6.3 1.8 27.7 26.9 0.8
subclass B1 0.6 0.6 0.6 0.6 0.6 2.9 2.8 0.1
subclass B2 - - - - - - - -
subclass C1 - 0.1 0.1 0.1 0.1 0.3 0.3 (0.0)
subclass C2 - - - - - - -
subclass D1 - - - - - - - -
Total 12.6 2.4 8.7 10.2 3.5 37.3 37.2 0.1
======================================= ===========================
-------------------------------------------------------------------------------------------------- ---------------------------
Debt Balances
subclass A2 224.7 223.6 223.5 222.5 219.3 218.3 218.3 217.4 (0.8)
subclass A3 580.0 580.0 580.0 580.0 580.0 580.0 580.0 580.0 -
subclass A4 200.0 200.0 200.0 200.0 200.0 200.0 200.0 200.0 -
subclass A5 400.0 389.1 387.5 380.4 374.1 372.3 372.3 373.1 0.8
subclass B1 89.7 89.1 88.5 87.9 87.4 86.8 86.8 86.9 0.1
subclass B2 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 -
subclass C1 99.9 99.9 99.8 99.8 99.7 99.6 99.6 99.6
subclass C2 55.0 55.0 55.0 55.0 55.0 55.0 55.0 55.0 -
subclass D1 110.0 110.0 110.0 110.0 110.0 110.0 110.0 110.0 -
TOTAL 1,834.3 1,821.7 1,819.3 1,810.5 1,800.5 1,797.0 1,797.0 1,797.0 0.1
(Table to be continued)
<PAGE>
(Table continued)
Dollar amounts expressed as
a percentage
----------------------------------------------------------- ---------------------------
2000 Base Case Lease Rentals
Cummlative to Date
Actual Basecase Variance
----------------------------------------------------------- ---------------------------
CASH COLLECTIONS
[1] Lease Rentals 100.0% 100.0% 0.0%
[2] - Renegotiated Leases
[3] - Rental Resets 0.0% 0.0%
---------------------------
[4] Sum of [1].[3] Contracted Lease Rentals 100.0% 100.0% 0.0%
[5] Movement in Current Arrears Balance -1.7% -1.7%
less Net Stress-related Costs
[6] - Bad Debts 0.0%
[7] - Security Deposits Drawn Down 0.0%
[8] - Restructured Arrears 0.0%
[9] - AOG -2.5%
[10] - Other Leasing Income 4.3%
[11] - Repossession Costs -0.4%
---------------------------
[12] Sum of [6].[11] sub-total 1.4% -4.5% 5.9%
[13] [4]+[5]+[12] Net2Lease Rentals 99.6% 95.5% 4.1%
[14] Interest Earned 1.5% 0.9% 0.6%
[15] Drawings from Expense Account 5.0% 0.0% 5.0%
Maintenance Receipts 10.6% 0.0% 10.6%
Maintenance Payments -13.4% 0.0% -13.4%
---------------------------
[16] Net Maintenance -2.8% 0.0% -2.8%
[17] Sum of [13].[16] Total Cash Collections 103.4% 96.4% 7.0%
----------------------------------------------------------- ---------------------------
CASH EXPENSES
Aircraft Operating Expenses
[18] - Insurance -0.4% -0.4%
[19] - Re-leasing and other overheads -0.5% -0.5%
---------------------------
[20] [18]+[19] subtotal -1.0% -0.8% -0.2%
SG&A Expenses
[21] Aircraft Servicer Fees
- Base Fee -1.1%
- Rent Collected Fee -1.2%
- Rent Contracted Fee -0.9%
- Incentive Fee 0.0%
---------------------------
sub-total -3.2% -3.4% 0.2%
[22] Other Servicer Fees -1.2% -0.8% -0.4%
---------------------------
[23] [21]+[22] subtotal -4.4% -4.2% -0.2%
[24] [20]+[23] Total Cash Expenses -5.4% -5.0% -0.4%
----------------------------------------------------------- ---------------------------
NET CASH COLLECTIONS
[25] [17] Total Cash Collections 103.4% 96.4% 7.0%
[26] [24] Total Cash Expenses -5.4% -5.0% -0.4%
[27] Accrued Expenses -6.4% 0.0% -6.4%
[28] Interest Payments -53.5% -50.8% -2.7%
[29] Swap Payments -1.6% -4.2% 2.6%
[30] Exceptional Item 0.0% 0.0% 0.0%
---------------------------
[31] Sum of [25].[30] TOTAL 36.5% 36.4% 0.1%
===========================
----------------------------------------------------------- ---------------------------
[32] PRINCIPAL PAYMENTS
subclass A2 6.3% 7.1% -0.8%
subclass A3 0.0% 0.0% 0.0%
subclass A4 0.0% 0.0% 0.0%
subclass A5 27.1% 26.3% 0.8%
subclass B1 2.9% 2.8% 0.1%
subclass B2 0.0% 0.0% 0.0%
subclass C1 0.3% 0.3% 0.0%
subclass C2 0.0% 0.0% 0.0%
subclass D1 0.0% 0.0% 0.0%
Total 36.5% 36.4% 0.1%
============================
----------------------------------------------------------- ---------------------------
</TABLE>
<TABLE>
<S> <C> <C>
-------------------------------------------------------------------------------------------------------------------
Note: Report Line Name Description
-------------------------------------------------------------------------------------------------------------------
CASH COLLECTIONS
[1] Lease Rentals Assumptions per the March 1998 Prospectus
[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
1998 Base Case
[4] Sum of [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] - Capitalised arrears Current arrears that have been capitalised and
restructured as a Note Payable.
[8] - Security deposits drawn
down Security deposits received following a lesse default
[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] Sum of [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] Sum of [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
- Incentive Fee Annual fee paid to Servicer for performance above an annually
agreed target
[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] Interest Payments Interest paid on all outstanding debt
[28] Swap payments Net swap payments (paid) /received
[29] Proceeds from Aircraft Sales Proceeds, net of fees and expenses,
from the sale of aircraft
[30] Sum of [25]...[29] Exceptional Items Includes adjustment for aircraft
included in the 1998 Basecase but not acquired by MSAF
TOTAL
--------------------------------------------------------------------------------
[31]
</TABLE>
<PAGE>
--------------------------------------------------------------------------------
Coverage Ratios 2000
Closing Actual Base Case
--------------------------------------------------------------------------------
Net Cash Collections 37.3 37.2
Add Back Interest 54.8 52.0
-----------------
Add Back Swap Payments 1.7 4.3
----------------------
a Net Cash Collections 93.8 93.6
b Swaps 1.7 4.3
c Class A Interest 40.7 38.2
d Class A Minimum 5.6 4.8
e Class B Interest 5.1 4.7
f Class B Minimum 2.2 2.3
g Class C Interest 5.1 5.1
h Class C Minimum - -
I Class D Interest 4.0 4.0
j Class D Minimum - -
k Class A Scheduled 1.2 0.1
l Class B Scheduled 0.5 0.6
m Class C Scheduled 0.3 0.3
n Class D Scheduled - -
o Permitted Aircraft Modifications - -
p Class A Supplemental 27.4 29.1
--------- ---------
Total 93.8 93.6
--------- ---------
[1] Interest Coverage Ratio
Class A 2.21 2.20
Class B 1.77 1.80
Class C 1.55 1.57
Class D 1.46 1.48
[2] Debt Coverage Ratio
Class A 1.43 1.47
Class B 1.42 1.46
Class C 1.41 1.45
Class D 1.41 1.45
Loan-to-Value Ratios
<TABLE>
-----------------------------------------------------------------------------------
2000 Base Case Actual 2000 Base Case
15-Mar-00 15-Aug-00 15-Aug-00
-----------------------------------------------------------------------------------
<S> <C> <C> <C>
[3] Assumed Portfolio Value 2,000.9 1,966.3 1,966.3
Liquidity Reserve Amount
Cash 30.0 30.0 30.0
- Accrued Expenses 6.0 4.1 4.1
- Security Deposits 7.1 18.3 18.3
------------- -------------- ---------------
subtotal cash 43.1 52.4 52.4
Letters of Credit 82.1 71.0 71.0
------------- -------------- ---------------
Total Liquidity Reserve 125.2 123.4 123.4
[4] Total Asset Value 2,126.1 2,089.7 2,089.7
Note Balance
Class A 1,404.7 66.1% 1,370.5 65.6% 1,370.6 65.6%
Class B 164.7 73.8% 161.9 73.3% 161.9 73.3%
Class C 154.9 81.1% 154.6 80.7% 154.6 80.7%
Class D 110.0 86.3% 110.0 86.0% 110.0 86.0%
------------- -------------- ---------------
Total 1,834.3 1,797.0 1,797.1
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
[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.
