Securitizations and Term Debt Financings

9 Months Ended

Sep. 30, 2011

Securitizations and Term Debt Financings [Abstract]

Securitizations and Term Debt Financings

Note 5. Securitizations and Term Debt Financings

The outstanding amounts of our secured and unsecured term debt financings were as follows:


	At
	December 31,
	2010		At September 30, 2011
	Outstanding		Outstanding					Final Stated
Debt Obligation	Borrowings		Borrowings		Interest Rate⁽¹⁾			Maturity⁽²⁾
Secured Debt Financings:
Securitization No. 1	$	415,103	$	395,665		0.50	%		06/20/31
Securitization No. 2		997,713		916,457		0.49	%		06/14/37
Term Financing No. 1		643,196		607,014		1.98	%		05/02/15
ECA Term Financings		267,311		545,981	2.65% to 3.96%			12/03/21 to 07/13/23
A330 PDP Facility		88,487		18,083		2.70	%		12/01/11	⁽³⁾

Total secured debt financings		2,411,810		2,483,200


Unsecured Debt Financings:
2010-1 Notes		296,148		296,529		9.75	%		08/01/18
2010 Revolving Credit Facility		—		—		N/A			09/28/13

Total unsecured debt financings		296,148		296,529


Total secured and unsecured debt financings	$	2,707,958	$	2,779,729


(1)		Reflects floating rate in effect at the applicable reset date except for the ECA Term Financings and the 2010-1 Notes, which are fixed rate.

(2)		Effective June 2011 for Securitization No. 1, all cash flows available after expenses and interest is applied to debt amortization. For Securitization No. 2 and Term Financing No. 1, all cash flows available after expenses and interest will be applied to debt amortization, if the debt is not refinanced by June 2012, and May 2013, respectively.


(3)		Reflects the last scheduled delivery month for the six relevant new Airbus A330-200 delivery positions. The final maturity date is the earlier of the aircraft delivery date or nine months after the scheduled delivery month for the last scheduled delivery position.

The following securitizations and term debt financing structures include liquidity facility commitments described in the table below:


		Available Liquidity
		December 31,		September 30,		Unused			Interest Rate
Facility	Liquidity Facility Provider	2010		2011		Fee			on any Advances
Securitization No. 1	Crédit Agricole Corporate and Investment Bank⁽¹⁾	$	42,000	$	42,000		0.45	%	1M Libor + 1.00%
Securitization No. 2	HSH Nordbank AG⁽²⁾		74,828		68,734		0.50	%	1M Libor + 0.75%
Term Financing No. 1	Crédit Agricole Corporate and Investment Bank⁽³⁾		12,864		12,140		0.60	%	1M Libor + 1.20%


(1)		Following a ratings downgrade with respect to the liquidity facility provider in June 2011, the liquidity facility was drawn and the proceeds, or permitted investments thereof, remain available to provide liquidity if required. Amounts drawn following a ratings downgrade with respect to the liquidity facility provider do not bear interest; however, net investment earnings will be paid to the liquidity facility provider and the unused fee continues to apply.

(2)		Following a ratings downgrade with respect to the liquidity facility provider in May 2009, the liquidity facility was drawn and the proceeds, or permitted investments thereof, remain available to provide liquidity if required. Amounts drawn following a ratings downgrade with respect to the liquidity facility provider do not bear interest; however, net investment earnings will be paid to the liquidity facility provider and the unused fee continues to apply.

(3)		There is no ratings threshold for the liquidity facility provider under Term Financing No. 1 and, accordingly, the ratings change referred to in footnote (1) above did not trigger a liquidity facility drawing in relation to Term Financing No. 1.

Secured Debt Financings:

Term Financing No. 1

In March 2011, we completed the annual maintenance-adjusted appraisal for the Term Financing No. 1 Portfolio and we have determined that we are in compliance with the loan to value ratio on the October 2011 payment date.

ECA Term Financings

During 2011, we entered into five twelve-year term loans which are supported by guarantees from COFACE, for the financing of new Airbus Model A330-200 aircraft totaling $359,393, and we repaid in full the outstanding principal balance of one of our ECA term financings in the amount of $61,571.

The obligations outstanding under the ECA Term Financings are secured by, among other things, a mortgage over the aircraft and a pledge of our ownership interest in our subsidiary company that leases the aircraft to the operator. The ECA Term Financings documents contain a $500,000 minimum net worth covenant for Aircastle Limited, as well as a material adverse change default and cross default to any other recourse obligation of Aircastle Limited, and other terms and conditions customary for ECA-supported financings being completed at this time. In addition, Aircastle Limited has guaranteed the repayment of the ECA Term Financings.