Item 1
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
<TABLE>
Month January-01
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 16-Jan-01
Current Calculation Date 9-Jan-01
Previous Payment Date 15-Dec-00
Previous Calculation Date 11-Dec-00
----------------------------------------------------------------------------------------------
1. Account Activity Summary between Calculation Dates
----------------------------------------------------------------------------------------------
Prior Deposits Withdrawals Balance on
Balance Calculation Date
11-Dec-00 9-Jan-01
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expense Account 1,354,167.30 7,538,425.23 (2,040,345.98) 6,852,246.55
Collection Account 104,278,006.51 15,539,266.15 (18,111,397.51) 101,705,875.15
Aircraft Purchase Account 115,609,802.83 420,460.02 (80,455,720.85) 35,574,542.00
- Liquidity Reserve cash balance 84,716,609.00 - 86,982,761.00
----------------------------------------------------------------------------------------------
Total 221,241,976.64 23,498,151.40 (100,607,464.34) 144,132,663.70
----------------------------------------------------------------------------------------------
2. Analysis of Aircraft Purchase Account Activity
----------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 115,609,802.83
Interest Income 420,460.02
Aircraft Purchase Payments (79,817,769.00)
Economic Swap Payments (637,951.85)
----------------------------------------------------------------------------------------------
Balance on current Calculation Date 35,574,542.00
----------------------------------------------------------------------------------------------
3. Analysis of Expenses Account Activity
----------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 1,354,167.30
Transfer from Collection Account on previous Payment Date 7,518,263.06
Permitted Aircraft Accrual -
Interim Transfer from Collection Account -
Transfers from Aircraft Purchase Account -
Interest Income 20,162.17
Balance on current Calculation Date
- Payments on previous payment date (895,299.82)
- Interim payments -
- Other (1,145,046.16)
----------------------------------------------------------------------------------------------
Balance on current Calculation Date 6,852,246.55
----------------------------------------------------------------------------------------------
<PAGE>
4. Analysis of Collection Account Activity
----------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 104,278,006.51
Collections during period 15,539,266.15
Transfer to Expense Account on previous Payment Date
- Required Expense Amount (7,342,740.57)
- Permitted Aircraft Modifications -
Net Swap payments on previous Payment Date (175,522.49)
Aggregate Note Payments on previous Payment Date (10,593,134.45)
----------------------------------------------------------------------------------------------
Balance on current Calculation Date 101,705,875.15
----------------------------------------------------------------------------------------------
Analysis of Liquidity Reserve Amount
First Collection Account Reserve 65,000,000.00
Cash Held
- Security Deposits 21,982,761.00
-----------------
Liquidity Reserve Amount 86,982,761.00
-----------------
<PAGE>
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 16-Jan-01
Current Calculation Date 9-Jan-01
Previous Payment Date 15-Dec-00
Previous Calculation Date 11-Dec-00
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Balance in Collection and Expense Account 108,558,121.70
Liquidity Reserve Amount (86,982,761.00)
------------------
Available Collections 21,575,360.70
==================
4. Analysis of Collection Account Activity (Continued)
----------------------------------------------------------------------------------------------------------------
Analysis of Current Payment Date Distributions
(I) Total Required Expense Amount 7,600,000.00
(II) a) Class A Interest but excluding Step-up 6,189,436.99
b) Swap Payments other than subordinated swap payments 133,837.32
(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 1,016,286.26
(vi) Class B Minimum principal payment 72,922.22
(vii) Class C Interest 1,223,473.67
(viii) Class C Minimum principal payment -
(ix) Class D Interest 700,522.66
(x) Class D Minimum principal payment -
(xi) Second collection account top-up 56,982,761.00
(xii) Class A Scheduled principal -
(xiii) Class B Scheduled principal 609,699.82
(xiv) Class C Scheduled principal 131,325.01
(xv) Class D Scheduled principal -
(xvi) Permitted accruals for Modifications
(xvii) Step-up interest -
(xviii) Class A Supplemental principal 3,897,856.75
(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 108,558,121.70
less collection Account Top Ups (iii) (b) and (xi) (b) above 86,982,761.00
------------------
21,575,360.70
==================
----------------------------------------------------------------------------------------------------------------
<PAGE>
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 16-Jan-01
Current Calculation Date 9-Jan-01
Previous Payment Date 15-Dec-00
Previous Calculation Date 11-Dec-00
------------------------------------------------------------------------------------------
5. Payments on the Notes by Subclass
---------------------------------------------------------------------------------------------
Subclass Subclass Subclass Total
Floating Rate Notes A-2 A-3 A-4 Class A
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Applicable LIBOR 6.71000% 6.71000% 6.71000%
Applicable Margin 0.3200% 0.4600% 0.5200%
Applicable Interest Rate 7.03000% 7.17000% 7.23000%
Day Count Act/360 Act/360 Act/360
Actual Number of Days 32 32 32
Interest Amount Payable 1,189,680.41 3,600,933.33 1,398,823.25
Step-up Interest Amount Payable NA NA NA
---------------------------------------------------------------------------------------------
Total Interest Paid 1,189,680.41 3,600,933.33 1,398,823.25 6,189,436.99
---------------------------------------------------------------------------------------------
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
Balance 190,382,711.37 565,000,000.00 217,659,219.42 973,041,930.79
---------------------------------------------------------------------------------------------
Extended Pool Factors 76.45% 100.00% 100.00%
Pool Factors 67.90% 100.00% 91.61%
---------------------------------------------------------------------------------------------
Minimum Principal Payment - - - -
Scheduled Principal Payment - - - -
Supplemental Principal Payment 710,193.27 - 3,187,663.48 3,897,856.75
----------------------------------------------------------------------------------------------
Total Principal Distribution
Amount 710,193.27 - 3,187,663.48 3,897,856.75
----------------------------------------------------------------------------------------------
Redemption Amount
- amount allocable to principal -
- amount allocable to premium
---------------------------------------------------------------------------------------------
Closing Outstanding Principal
Balance 189,672,518.10 565,000,000.00 214,471,555.94 969,144,074.04
---------------------------------------------------------------------------------------------
(Table to be continued)
<PAGE>
(Table continued)
---------------------------------------------------------------------------
Subclass Subclass Total
Floating Rate Notes B-1 B-2 Class B
---------------------------------------------------------------------------
Applicable LIBOR 6.71000% 6.71000%
Applicable Margin 0.6000% 1.0500%
Applicable Interest Rate 7.31000% 7.76000%
Day Count Act/360 Act/360
Actual Number of Days 32 32
Interest Amount Payable 475,992.17 540,294.08
Step-up Interest Amount Payable NA NA
----------------------------------------------------------------------------
Total Interest Paid 475,992.17 540,294.08 1,016,286.26
----------------------------------------------------------------------------
Expected Final Payment Date 15-Jul-13 15-Jul-08
Excess Amortisation Date 17-Aug-98 15-Aug-00
----------------------------------------------------------------------------
Original Balance 85,000,000.00 80,000,000.00
Opening Outstanding
Balance 73,254,609.49 78,328,717.00 151,583,326.49
----------------------------------------------------------------------------
Extended Pool Factors 93.50% 100.00%
Pool Factors 88.31% 99.86%
----------------------------------------------------------------------------
Minimum Principal Payment 35,240.61 37,681.61 72,922.22
Scheduled Principal Payment 294,645.35 315,054.47 609,699.82
Supplemental Principal Payment - - -
----------------------------------------------------------------------------
Total Principal Distribution
Amount 329,885.96 352,736.08 682,622.04
----------------------------------------------------------------------------
Redemption Amount
- amount allocable to principal
- amount allocable to premium
----------------------------------------------------------------------------
Closing Outstanding Principal
Balance 72,924,723.53 77,975,980.92 150,900,704.45
----------------------------------------------------------------------------
(Table to be continued)
<PAGE>
(Table continued)
------------------------------------------------------------------------------
Subclass Subclass Total
Floating Rate Notes C-1 C-2 Class C
------------------------------------------------------------------------------
Applicable LIBOR 6.71000% 6.71000%
Applicable Margin 1.3500% 2.0500%
Applicable Interest Rate 8.06000% 8.76000%
Day Count Act/360 Act/360
Actual Number of Days 32 32
Interest Amount Payable 601,045.34 622,428.33
Step-up Interest Amount Payable NA NA
------------------------------------------------------------------------------
Total Interest Paid 601,045.34 622,428.33 1,223,473.67
------------------------------------------------------------------------------
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 83,892,804.50 79,935,144.98 163,827,949.48
------------------------------------------------------------------------------
Extended Pool Factors 99.96% 100.00%
Pool Factors 98.35% 99.77%
------------------------------------------------------------------------------
Minimum Principal Payment - - -
Scheduled Principal Payment 93,572.00 37,753.01 131,325.01
Supplemental Principal Payment - - -
------------------------------------------------------------------------------
Total Principal Distribution
Amount 93,572.00 37,753.01 131,325.01
------------------------------------------------------------------------------
Redemption Amount - -
- amount allocable to principal - -
- amount allocable to premium - -
------------------------------------------------------------------------------
Closing Outstanding Principal
Balance 83,799,232.50 79,897,391.97 163,696,624.47
------------------------------------------------------------------------------
------------------------------------------------
Fixed Rate Notes D-2
------------------------------------------------
Applicable Interest Rate 8.50000%
Day count 30 / 360
Number of Days 30
Interest Amount Payable 700,522.66
------------------------------------------------
Total Interest Paid 700,522.66
------------------------------------------------
Expected Final Payment Date 15-Mar-14
Excess Amortisation Date 15-Jul-10
------------------------------------------------
Original Balance 100,000,000.00
Opening Outstanding Principal
Balance 98,897,317.00
------------------------------------------------
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 98,897,317.00
------------------------------------------------
</TABLE>
<PAGE>
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
<TABLE>
Current Payment Date 16-Jan-01
Current Calculation Date 9-Jan-01
Previous Payment Date 15-Dec-00
Previous Calculation Date 11-Dec-00
----------------------------------------------------------------------------------------------------------------
6. Floating Rate Note information for next Interest Accrual Period
Start of Interest Accrual Period 16-Jan-01
End of Interest Accrual Period 15-Feb-01
Reference Date 11-Jan-01
---------------------------------------------------------------------------------------------------------------------------
A-2 A-3 A-4 B-1 B-2 C-1 C-2
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Applicable LIBOR 5.88250% 5.88250% 5.88250% 5.88250% 5.88250% 5.88250% 5.88250%
Applicable Margin 0.3200% 0.4600% 0.5200% 0.6000% 1.0500% 1.3500% 2.0500%
Applicable Interest Rate 6.2025% 6.3425% 6.4025% 6.4825% 6.9325% 7.2325% 7.9325%
---------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------
Fixed Rate Notes D-1
----------------------------------------------------
Actual Pool Factor 100.00%
----------------------------------------------------
----------------------------------------------------------------------------
7. Payments per $100,000 Initial 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 190,382.71 565,000.00 217,659.22 73,254.61 78,328.72 83,892.80 79,935.14
Total Principal Payments 710.19 - 3,187.66 329.89 352.74 93.57 37.75
Closing Outstanding Principal Balance 189,672.52 565,000.00 214,471.56 72,924.72 77,975.98 83,799.23 79,897.39
Total Interest 1,189.68 3,600.93 1,398.82 475.99 540.29 601.05 622.43
Total Premium 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
---------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------
(b) Fixed Rate Notes D-2
----------------------------------------------------
Opening Outstanding Principal Balance 98,897.32
Total Principal Payments -
Closing Outstanding Principal Balance 98,897.32
Total Interest 700.52
Total Premium -
----------------------------------------------------
----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
AerCo Limited - Cumulative Case Performance to date - July 17, 2000 to January 16, 2001
Dollar amounts
All amounts in expressed as a
millions of US dollars percentage 2000 Base
unless otherwise stated Case Lease Rentals
----------------------- ------------------
Jul 17- Cumulative to Date Cumulative to Date
Jul 17 Sept 15 Oct-15 Nov-15 Dec-15 Jan-16 Base Base Vari-
2000 2000 2000 2000 2000 2001 Actual Case Variance Actual Case ance
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CASH COLLECTIONS
[1] Lease Rentals 30.6 19.3 14.6 15.7 15.3 95.5 94.6 0.9 101.0% 100.0% 1.0%
[2] - Renegotiated Leases - - - - - - - - 0.0% 0.0% 0.0%
[3] - Rental Resets - - - - - - - - 0.0% 0.0% 0.0%
---------------------------------------------------------------------------------------
[4] S [1]...[3] Contracted Lease Rentals 30.6 19.3 14.6 15.7 15.3 95.5 94.6 0.9 101.0% 100.0% 1.0%
[5] Movement in Current Arrears
Balance (1.9) 0.5 (1.2) (0.3) (1.6) (4.5) - (4.5) -4.8% 0.0% -4.8%
less Net Stress-related Costs
[6] - Bad Debts - - (0.9) 0.9 0.0% -1.0% 1.0%
[7] - Security Deposits Drawn Down - - - - - - - 0.0% 0.0% 0.0%
[8] - Restructured Arrears 0.3 0.1 - 0.2 0.2 0.8 1.9 (1.1) 0.8% 2.0% -1.2%
[9] - AOG - - - (0.7) (0.6) (1.3) (4.0) 2.7 -1.4% -4.2% 2.8%
[10] - Other Leasing Income - - - - - - - 0.0% 0.0% 0.0%
[11] - Repossession Costs - - - - - - (0.8) 0.8 0.0% -0.8% 0.8%
---------------------------------------------------------------------------------------
[12] S [6]...[11]sub-total 0.3 0.1 - (0.5) (0.4) (0.5) (3.8) 3.3 -0.5% -4.0% 3.4%
[13] [4]+[5]+[12] Net Lease Rentals 29.0 19.9 13.4 14.9 13.3 90.5 90.8 (0.3) 95.7% 96.0% -0.3%
[14] Interest Earned 0.7 0.6 0.5 0.5 0.5 2.7 1.7 1.0 2.9% 1.8% 1.1%
[15] Drawings from Expense Account - - - - - - 0.0% 0.0% 0.0%
Maintenance Receipts 3.2 1.9 1.3 2.2 0.5 9.1 - 9.1 9.6% 0.0% 9.6%
Maintenance Payments (0.7) - (0.8) (1.2) (0.7) (3.4) - (3.4) -3.5% 0.0% -3.5%
---------------------------------------------------------------------------------------
[15] Net Maintenance 2.5 1.9 0.5 1.0 (0.2) 5.7 - 5.7 6.1% 0.0% 6.1%
[16] S[13]...[15]Total Cash Collections 32.2 22.4 14.4 16.4 13.6 99.0 92.5 6.4 104.6% 97.8% 6.8%
------------------------------------------------------------------------------------------------------------------------------------
CASH EXPENSES
Aircraft Operating Expenses
[17] - Insurance - - (0.1) - - (0.1) -0.1% 0.0% 0.0%
[18] - Re-leasing and other overheads (0.1) (0.5) (4.0) (0.4) (0.3) (5.3) (1.6) (3.7) -5.6% -1.7% -3.9%
---------------------------------------------------------------------------------------
[19] [17]+[18] subtotal (0.1) (0.5) (4.1) (0.4) (0.3) (5.4) (1.6) (3.8) -5.7% -1.7% -3.9%
SG&A Expenses
[20] Aircraft Servicer Fees
- Retainer Fee (0.3) (0.1) (0.5) (0.1) (0.1) (1.1) (1.1) (0.0) -1.2% -1.2% 0.0%
- Rent Collected Fee (0.3) (0.2) (0.3) (0.2) (0.2) (1.2) (1.0) (0.2) -1.3% -1.1% -0.2%
- Previous Servicer Fees (1.8) - - - - (1.8) (1.8) -1.9% 0.0% -1.9%
------------------------------------------------------------------------------------------------------------------------------------
[21] sub-total (2.4) (0.3) (0.8) (0.3) (0.3) (4.2) (2.1) (2.1) -4.4% -2.2% -2.2%
[22] Other Servicer Fees (0.5) (1.6) (1.8) (1.2) (0.6) (5.7) (3.9) (1.8) -6.0% -4.1% -1.9%
------------------------------------------------------------------------------------------------------------------------------------
[23] [21]+[22] subtotal (2.9) (1.9) (2.6) (1.5) (0.9) (9.9) (6.0) (3.9)
[24] [20]+[23] Total Cash Expenses (3.0) (2.4) (6.7) (1.9) (1.2) (15.2) (7.6) (7.6) -16.1% -8.0% -8.1%
------------------------------------------------------------------------------------------------------------------------------------
NET CASH COLLECTIONS
[25] [17] Total Cash Collections 32.2 22.4 14.4 16.4 13.6 99.0 92.5 6.4 104.6% 97.8% 6.8%
[26] [24] Total Cash Expenses (3.0) (2.4) (6.7) (1.9) (1.2) (15.2) (7.6) (7.6) -16.1% -8.0% -8.1%
[27] Movement in Expense Account 2.8 2.0 2.2 (1.5) 1.3 6.8 - 6.8 7.1% 0.0% 7.1%
[28] Interest Payments (18.2) (11.1) (8.5) (11.0) (9.1) (57.9) (52.6) (5.3) -61.2% -55.6% -5.6%
[29] Swap Payments 0.5 0.1 0.1 0.1 0.1 0.9 1.3 (0.4) 1.0% 1.4% -0.4%
[30] Exceptional Items - - - - - - 7.6 (7.6) 0.0% 8.0% -8.0%
---------------------------------------------------------------------------------------
[31] S [25]-[30]TOTAL 14.3 11.0 1.5 2.1 4.6 33.5 41.2 (7.8) 35.4% 43.6% -8.2%
=======================================================================================
------------------------------------------------------------------------------------------------------------------------------------
[32] PRINCIPAL PAYMENTS
subclass A 14.2 9.5 1.6 - 3.8 29.1 35.3 (6.2) 30.8% 37.3% -6.6%
subclass B - 0.4 0.8 2.0 0.7 3.9 5.4 (1.5) 4.1% 5.7% -1.6%
subclass C 0.1 0.1 0.1 0.1 0.1 0.5 0.5 - 0.5% 0.5% 0.0%
subclass D - - - - - - - - 0.0% 0.0% 0.0%
---------------------------------------------------------------------------------------
Total 14.3 10.0 2.5 2.1 4.6 33.5 41.2 (7.7) 35.4% 43.6% -8.1%
=======================================================================================
Debt Balances
subclass A 998.4 984.2 974.7 973.1 974.7 969.3 969.3 963.1 6.2
subclass B 154.8 154.8 154.4 153.6 151.6 150.9 150.9 149.4 1.5
subclass C 164.1 164.0 164.0 163.9 163.9 163.8 163.6 163.6 -
subclass D 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 -
-------------------------------------------------------------------------
TOTAL 1,417.3 1,403.0 1,393.1 1,390.6 1,390.2 1,384.0 1,383.8 1,376.1 7.7
=========================================================================
</TABLE>
<PAGE>
<TABLE>
AerCo Limited
------------------------------------------------------------------------------------------------------------------------------------
Note: Report Line Name Description
------------------------------------------------------------------------------------------------------------------------------------
CASH COLLECTIONS
<S> <C> <C>
[1] Lease Rentals Assumptions per the July 2000 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 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 Current contracted lease rentals not received as at the latest Calculation
Balance Date, excluding Bad debts
less Net Stress related Costs
[6] - Bad debts Arrears owed by former lessees and deemed irrecoverable.
[7] - Restructured 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] 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 AerFi
[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
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
AerCo Limited
<TABLE>
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
Coverage Ratios 2000
Closing Actual Base Case
--------------------------------------------------------------------------------------------------------------------------
Net Cash Collections 99.0 92.5
Add Back Interest 57.9 52.6
Add Back Swap Payments -0.9 -1.3
a Net Cash Collections 156.0 143.8
b Swaps -0.9 -1.3
c Class A Interest 29.1 29.0
d Class A Minimum - 7.5
e Class B Interest 4.8 4.8
f Class B Minimum 1.6 3.1
g Class C Interest 5.6 4.5
h Class C Minimum - -
I Class D Interest 3.5 3.5
j Class D Minimum - -
k Class A Scheduled - -
l Class B Scheduled 1.6 1.7
m Class C Scheduled 0.4 0.4
n Class D Scheduled - -
o Permited Aircraft Modifications -
p Class A Supplemental 25.3 22.7
-----------------------------------------
Total 71.0 75.9
-----------------------------------------
[1] Interest Coverage Ratio
Class A 5.53 5.19 = a / (b+c)
Class B 4.73 3.60 = a / (b+c+d+e)
Class C 3.88 3.02 = a / (b+c+d+e+f+g)
Class D 3.57 2.81 = a / (b+c+d+e+f+g+h+i)
[2] Debt Coverage Ratio
Class A 3.44 2.72 = a / (b+c+d+e+f+g+h+i+j+k)
Class B 3.44 2.72 = a / (b+c+d+e+f+g+h+i+j+k+l)
Class C 3.44 2.72 = a / (b+c+d+e+f+g+h+i+j+k+l+m)
Class D 3.44 2.72 = a / (b+c+d+e+f+g+h+i+j+k+l+m+n)
Loan-to-Value Ratios
--------------------------------------------------------------------
2000 Base Case Actual 2000 Base Case
15-Jul-00 16-Jan-01 16-Jan-01
--------------------------------------------------------------------
[3] Assumed Portfolio Value 1,566.7 1,524.2 1,508.5
Liquidity Reserve Amount
Cash 65.0 65.0 65.0
- Accrued Expenses 5.0 5.0 5.0
- Security Deposits 22.4 22.0 22.4
------------- ------------ ------------
subtotal cash 92.4 92.0 92.4
Letters of Credit - - -
------------- ------------ ------------
Total Liquidity Reserve 92.4 92.0 92.4
[4] Total Asset Value 1,659.1 1,616.2 1,600.9
Note Balance
Class A 998.4 60.2% 969.3 60.0% 963.1 60.2%
Class B 154.8 69.5% 150.9 69.3% 149.4 69.5%
Class C 164.1 79.4% 163.6 79.4% 163.6 79.7%
Class D 100.0 85.4% 100.0 85.6% 100.0 86.0%
------------- ------------ ------------
Total 1,417.3 1,383.8 1,376.1
</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
