Aircastle (AYR)

Capital Markets Activity

In June 2007, we closed our second securitization (“Securitization No. 2”) involving the issuance of a single tranche of $1.17 billion of Class G-1 Floating Rate Asset Backed Certificates (the “Certificates”). The Certificates will bear interest on a floating rate basis at the rate of one month LIBOR plus 0.26%. The all-in cost over the expected five year life of the Certificates, including interest rate hedges and transaction costs, is approximately 6.20% per annum.

Securitization No. 2 is comprised of 59 aircraft of which 26 aircraft were purchased during 2006, 29 aircraft were acquired during the first half of 2007 and four aircraft are committed to and scheduled to be acquired by us during the third quarter of 2007. As of June 30, 2007, 39 of 59 aircraft had been transferred into Securitization No. 2 and approximately $501 million of the Company’s restricted cash was held pending release upon the transfer of the remaining 20 aircraft. As of August 9, 2007, 53 of the 59 aircraft had been transferred to ACS 2007-1, with approximately $90 million of restricted cash remaining for the transfer of the final six aircraft. We expect to transfer all remaining aircraft into Securitization No. 2 during the third quarter of 2007.

As of August 9, 2007, we had: