Adverse financial market conditions may adversely impact our liquidity, our access to capital and our cost of capital. for Aircastle (AYR)

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AYR » Topics » Adverse financial market conditions may adversely impact our liquidity, our access to capital and our cost of capital.

These excerpts taken from the AYR 10-K filed Mar 2, 2009.

Adverse financial market conditions may adversely impact our liquidity, our access to capital and our cost of capital.

There is extreme financial market volatility and disruption and, in the recent past, the volatility and disruption have reached unprecedented levels. In many cases, the financial markets have exerted downward pressure on share prices and have limited or eliminated entirely the availability of liquidity and credit capacity for certain companies, without regard to their underlying financial strength. The financial markets are under severe distress and it is not clear when or whether the lease-backed securitization market will re-open and when other long-term credit will once again become readily available in sufficient volume to satisfy the future financing and refinancing needs in the aviation industry. If current levels of financial market disruption and volatility continue or worsen, there can be no assurance that we will not experience an adverse effect, which may be material, on our ability to access capital, on our cost of capital or on our business, financial condition or results of operations.

We are exposed to risk from financial markets volatility and disruption in various ways, including:


	•	difficulty or inability to finance pre-delivery payment obligations under, or to finance a portion of the remaining purchase price for the New A330 Aircraft to be delivered under, the Airbus A330 Agreement;

	•	lack of liquidity in the market may continue to make it difficult for buyers to finance acquisitions of aviation assets, which would contribute to a decline in demand for aviation assets and could result in a decline in the value of aviation assets;


	•	aircraft leasing companies and other aircraft investors may decide or be forced to liquidate assets at discounted prices, driving aviation asset values down generally;

	•	increased risk of default by our lessees resulting from financial market distress, lack of available credit or an economic recession;

	•	exposure to increased bank or counterparty risk in the current environment, including the risk that our counterparties will not be able to perform their obligations under interest rate hedging contracts and the risk that banks issuing letters of credit we hold as lease security deposits may fail to pay when we seek to draw on these letters of credit; and

	•	increased risk that we will not be able to re-finance our securitizations and other long-term financings before the dates on which the excess cash flow will be applied to reduce the principal balance of the debt rather than made available to us to pay dividends or for other corporate purposes.

Adverse
financial market conditions may adversely impact our liquidity,
our access to capital and our cost of capital.

There is extreme financial market volatility and disruption and,
in the recent past, the volatility and disruption have reached
unprecedented levels. In many cases, the financial markets have
exerted downward pressure on share prices and have limited or
eliminated entirely the availability of liquidity and credit
capacity for certain companies, without regard to their
underlying financial strength. The financial markets are under
severe distress and it is not clear when or whether the
lease-backed securitization market will re-open and when other
long-term credit will once again become readily available in
sufficient volume to satisfy the future financing and
refinancing needs in the aviation industry. If current levels of
financial market disruption and volatility continue or worsen,
there can be no assurance that we will not experience an adverse
effect, which may be material, on our ability to access capital,
on our cost of capital or on our business, financial condition
or results of operations.

We are exposed to risk from financial markets volatility and
disruption in various ways, including:


	•	difficulty or inability to finance pre-delivery payment obligations under, or to finance a portion of the remaining purchase price for the New A330 Aircraft to be delivered under, the Airbus A330 Agreement;

	•	lack of liquidity in the market may continue to make it difficult for buyers to finance acquisitions of aviation assets, which would contribute to a decline in demand for aviation assets and could result in a decline in the value of aviation assets;


	•	aircraft leasing companies and other aircraft investors may decide or be forced to liquidate assets at discounted prices, driving aviation asset values down generally;

	•	increased risk of default by our lessees resulting from financial market distress, lack of available credit or an economic recession;

	•	exposure to increased bank or counterparty risk in the current environment, including the risk that our counterparties will not be able to perform their obligations under interest rate hedging contracts and the risk that banks issuing letters of credit we hold as lease security deposits may fail to pay when we seek to draw on these letters of credit; and

	•	increased risk that we will not be able to re-finance our securitizations and other long-term financings before the dates on which the excess cash flow will be applied to reduce the principal balance of the debt rather than made available to us to pay dividends or for other corporate purposes.

This excerpt taken from the AYR 10-Q filed Nov 17, 2008.

Adverse financial market conditions may adversely impact our liquidity, our access to capital and our cost of capital.

There is extreme financial market volatility and disruption and, in recent months, the volatility and disruption have reached unprecedented levels. In many cases, the financial markets have exerted downward pressure on share prices and have limited the availability of liquidity and credit capacity for certain companies, without regard to their underlying financial strength. The financial markets are under severe distress and it is not clear when credit will once again become readily available in sufficient volume to satisfy the future financing and refinancing needs in the aviation industry. If current levels of financial market disruption and volatility continue or worsen, there can be no assurance that we will not experience an adverse effect, which may be material, on our ability to access capital, on our cost of capital or on our business, financial condition or results of operations.

We are exposed to risk from financial markets volatility and disruption in various ways, including:


	•	difficulty or inability to finance pre-delivery payment obligations under, or to finance a portion of the remaining purchase price for the New A330 Aircraft to be delivered under, the Airbus A330 Agreement;

	•	lack of liquidity in the market may contribute to a decline in the value of aviation assets;

	•	an increased risk of default by our lessees resulting from financial market distress, lack of available credit or an economic recession; and

	•	we are exposed to increased bank or counterparty risk in the current environment, including the risk that our counterparties will not be able to perform their obligations under interest rate hedging contracts and the risk that banks issuing letters of credit we hold as lease security deposits may fail to pay when we seek to draw on these letters of credit.

EXCERPTS ON THIS PAGE:

10-K (2 sections)	Mar 2, 2009

10-Q	Nov 17, 2008

Aircastle (AYR)

AYR » Topics » Adverse financial market conditions may adversely impact our liquidity, our access to capital and our cost of capital.

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