SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13E-3
(Amendment No. 1)

RULE 13E-3 TRANSACTION STATEMENT
UNDER SECTION 13(E) OF
THE SECURITIES EXCHANGE ACT OF 1934

AIRCASTLE LIMITED
(Name of the Issuer)
AIRCASTLE LIMITED
MM AIR MERGER SUB LIMITED
MM AIR LIMITED
MARUBENI CORPORATION
MARUBENI AVIATION HOLDING COÖPERATIEF U.A.
MARUBENI AVIATION CORPORATION
(Names of Person(s) Filing Statement)
Common Shares, $0.01 Par Value Per Share
(Title of Class of Securities)
G0129K104
(CUSIP Number of Class of Securities)
Aircastle Limited
c/o Aircastle Advisor LLC
201 Tresser Boulevard, Suite 400
Stamford, CT 06901
Attention: Christopher L. Beers, Chief Legal Officer
Telephone: (203) 504-1020
Marubeni Corporation
7-1 Nihonbashi 2-chome
Chuo-ku, Tokyo, 103-6060 Japan
Attention: General Manager
Telephone: 81 3 3282 7813
   
 
   
 
Marubeni Aviation Holding Coöperatief U.A.
Herikerbergweg 238, Luna Arena
1101 CM Amsterdam, Netherlands
Attention: MUFG Business Services (Holland) B.V.
Telephone: 31 2057 55600
Marubeni Aviation Corporation
Nihombashi Tower, 18th Floor
7-1 Nihonbashi 2-chome
Chuo-ku, Tokyo, 103-6060 Japan
Attention: Takayuki Sakakida, Director
Telephone: 81 3 3282 7813

(Name, Address, and Telephone Numbers of Person Authorized to Receive Notices
and Communications on Behalf of the Persons Filing Statement)

With copies to:

Joseph A. Coco, Esq.
Thomas W. Greenberg, Esq.
Skadden, Arps, Slate, Meagher & Flom LLP
4 Times Square
New York, New York 10036
Telephone: (212) 735-3000
John A. Healy, Esq.
Clifford Chance US LLP
31 West 52nd Street
New York, New York 10019
Telephone: (212) 878-8000

This statement is filed in connection with (check the appropriate box):

a.☒ The filing of solicitation materials or an information statement subject to Regulation 14A, Regulation 14C or Rule 13e-3(c) under the Securities Exchange Act of 1934.
b.o The filing of a registration statement under the Securities Act of 1933.
c.o A tender offer.
d.o None of the above.

Check the following box if the soliciting materials or information statement referred to in checking box (a) are preliminary copies: ☒

Check the following box if the filing is a final amendment reporting the results of the transaction: o

Calculation of Filing Fee

Transaction valuation*
Amount of filing fee**
$1,736,595,840.00
$225,410.14

* For purposes of calculating the filing fee only, the transaction value was determined based upon the sum of: (1) 53,350,760 common shares issued and outstanding that are subject to the transaction (including 92,996 restricted shares) (which is the difference between the 74,956,134 common shares that are issued and outstanding and the 21,605,374 common shares that are beneficially owned by Marubeni Corporation) multiplied by $32.00 per share; (2) 872,287 common shares issuable upon the vesting or settlement of outstanding performance share units (assuming the achievement, if applicable, of performance metrics at the maximum level of performance) multiplied by $32.00 per share; and (3) 45,573 common shares issuable upon the vesting or settlement of outstanding restricted share units multiplied by $32.00 per share.
**The filing fee was calculated in accordance with Rule 0-11 under the Securities and Exchange Act of 1934, as amended, by multiplying the transaction value by 0.0001298.
Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and date of its filing.
Amount Previously Paid: $227,649.39
Filing Party: Aircastle Limited
Form or Registration No.: Schedule 14A
Date Filed: December 6, 2019

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THIS TRANSACTION, PASSED UPON THE MERITS OR FAIRNESS OF THIS TRANSACTION, OR PASSED UPON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE IN THIS SCHEDULE 13E-3. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

Introduction

This Rule 13E-3 Transaction Statement on Schedule 13E-3, together with the exhibits hereto (this “Schedule 13E-3” or this “Transaction Statement”), is being filed with the Securities and Exchange Commission (the “SEC”) pursuant to Section 13(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), by: (i) Aircastle Limited, a Bermuda exempted company (the “Company”), (ii) Marubeni Corporation, a Japanese corporation (“Marubeni”), (iii) MM Air Limited, a Bermuda exempted company (“Parent”), (iv) MM Air Merger Sub Limited, a Bermuda exempted company and a wholly-owned subsidiary of Parent (“Merger Sub”), (v) Marubeni Aviation Holding Coöperatief U.A., a Netherlands coöperatief (“MHC”), and (vi) Marubeni Aviation Corporation, a Japanese corporation (collectively, the “Filing Persons”).

This Transaction Statement relates to the Agreement and Plan of Merger, dated as of November 5, 2019 (as it may be amended from time to time, the “Merger Agreement”), and a related Statutory Merger Agreement (the “Statutory Merger Agreement”), by and among Parent, Merger Sub and the Company. Pursuant to the Merger Agreement and the Statutory Merger Agreement, if the conditions to the closing of the merger are either satisfied or waived, Merger Sub will be merged with and into the Company with the Company being the surviving company in the merger (the “merger”). Upon completion of the merger, each common share of the Company, par value $0.01 per share (“common share”), that is issued and outstanding at the effective time of the merger (other than common shares held by Parent, Merger Sub, the Company or their wholly-owned subsidiaries or by MHC) will be cancelled and converted into the right to receive $32.00, in cash, without interest and less any required withholding taxes. Upon completion of the merger, the common shares will no longer be publicly traded, and shareholders (other than MHC and Parent) will cease to have any ownership interest in the Company.

The board of directors of the Company (the “Board of Directors”), other than Jun Horie, Takashi Kurihara and Takayuki Sakakida, the Marubeni designees serving on the Board of Directors (collectively, the “Marubeni Directors”), who did not participate due to their affiliation with Marubeni, has unanimously (a) determined that the Merger Agreement, the Statutory Merger Agreement and the transactions contemplated thereby, including the merger, are fair to and in the best interest of the Company, (b) approved the Merger Agreement, the Statutory Merger Agreement and the transactions contemplated thereby, including the merger, and (c) resolved to recommend that the Company’s shareholders approve and adopt the Merger Agreement, the Statutory Merger Agreement and the transactions contemplated thereby, including the merger. Consummation of the merger is subject to customary conditions, including without limitation the approval of the Merger Agreement and the transactions contemplated thereby by the affirmative votes of a majority of the votes cast by holders of outstanding common shares at a meeting of the Company’s shareholders, the expiration or early termination of the waiting period applicable to the consummation of the merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of certain other required, non-U.S. regulatory approvals.

Concurrently with the filing of this Transaction Statement, the Company is filing with the SEC an amended proxy statement (the “Proxy Statement”) under Regulation 14A of the Exchange Act, pursuant to which the Board of Directors is soliciting proxies from shareholders of the Company in connection with the merger. The Proxy Statement is attached hereto as Exhibit (a)(1). A copy of the Merger Agreement is attached to the Proxy Statement as Annex A and is incorporated herein by reference.

Pursuant to General Instruction F to Schedule 13E-3, the information in the Proxy Statement, including all annexes thereto, is expressly incorporated by reference herein in its entirety, and responses to each item herein are qualified in their entirety by the information contained in the Proxy Statement. The cross-references below are being supplied pursuant to General Instruction G to Schedule 13E-3 and show the location in the Proxy Statement of the information required to be included in response to the items of Schedule 13E-3. As of the date hereof, the Proxy Statement is in preliminary form and is subject to completion or amendment.

Item 1. Summary Term Sheet

The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet”

“Questions and Answers about the Special General Meeting and the Merger”

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Item 2. Subject Company Information

(a) Name and Address. The Company’s name and the address and telephone number of its principal executive office are as follows:

Aircastle Limited
c/o Aircastle Advisor LLC
201 Tresser Boulevard, Suite 400
Stamford, CT 06901
(203) 504-1020

(b) Securities. The class of securities to which this Transaction Statement relates is the Company’s common shares, par value $0.01 per share, of which 74,956,134 shares were issued and outstanding as of January 6, 2020.

(c) Trading Market and Price. The information set forth in the Proxy Statement under the following caption is incorporated herein by reference: “Important Information Regarding Aircastle—Market Price of the Company’s Common Shares

(d) Dividends. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Important Information Regarding Aircastle—Dividends”

“The Merger Agreement—Conduct of Business Pending the Merger”

(e) Prior Public Offerings. The information set forth in the Proxy Statement under the following caption is incorporated herein by reference: “Important Information Regarding Aircastle—Prior Public Offerings

(f) Prior Stock Purchases. The information set forth in the Proxy Statement under the following caption is incorporated herein by reference: “Important Information Regarding Aircastle—Transactions in Common Shares

Item 3. Identity and Background of Filing Person

(a)–(c) Name and Address; Business and Background of Entities; Business and Background of Natural Persons. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet”

“Important Information Regarding Aircastle”

“Important Information Regarding the Marubeni Shareholders, Parent and Merger Sub”

“The Parties to the Merger and Their Principal Affiliates”

Item 4. Terms of the Transaction

(a) (1) Tender Offers. Not applicable.

(a) (2) Mergers or Similar Transactions. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet”

“Questions and Answers about the Special General Meeting and the Merger”

“The Merger Agreement—Structure of the Merger”

“The Merger Agreement—Effect of the Merger on the Common Shares of the Company and Merger Sub”

“The Merger Agreement—Treatment of Company Equity Awards”

“The Merger Agreement—Exchange and Payment Procedures for the Common Shares in the Merger”

“The Merger Agreement—Other Covenants and Agreements”

“The Merger Agreement—Conditions to the Merger”

“The Special General Meeting—Required Shareholder Votes for the Merger”

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“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Special Factors—Certain Effects of the Merger”

“Special Factors—Interests of the Company’s Directors and Executive Officers in the Merger”

“Special Factors—Anticipated Accounting Treatment of the Merger”

“Special Factors—U.S. Federal Income Tax Consequences of the Merger”

(c) Different Terms. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet”

“Special Factors—Certain Effects of the Merger”

“Special Factors—Interests of the Company’s Directors and Executive Officers in the Merger”

“The Merger Agreement—Effect of the Merger on the Common Shares of the Company and Merger Sub”

“Advisory Vote on Merger Related Compensation”

(d) Appraisal Rights. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet”

“Questions and Answers about the Special General Meeting and the Merger”

“Special Factors—Appraisal Rights”

“Appraisal Rights”

Annex D: Copy of Section 106 of the Bermuda Companies Act

(e) Provisions for Unaffiliated Security Holders. The information set forth in the Proxy Statement under the following caption is incorporated herein by reference: “Provisions for Public Shareholders

(f) Eligibility for Listing or Trading. Not applicable.

Item 5. Past Contacts, Transactions, Negotiations and Agreements

(a) (1)–(2) Transactions. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet”

“Special Factors—Background of the Merger”

“Special Factors—Interests of the Company’s Directors and Executive Officers in the Merger”

“Special Factors—Voting and Support Agreement”

“Voting and Support Agreement Involving Common Shares”

“Important Information Regarding Aircastle—Transactions in Common Shares”

(b)–(c) Significant Corporate Events; Negotiations or Contacts. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Questions and Answers About the Special General Meeting and the Merger”

“Special Factors—Background of the Merger”

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“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Special Factors—Interests of the Company’s Directors and Executive Officers in the Merger”

“Special Factors—Voting and Support Agreement”

“The Merger Agreement”

“Voting and Support Agreement Involving Common Shares”

Annex A: Merger Agreement

Annex B: Voting and Support Agreement

(e) Agreements Involving the Subject Company’s Securities. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet”

“Questions and Answers About the Special General Meeting and the Merger”

“Special Factors—Certain Effects of the Merger”

“Special Factors—Interests of the Company’s Directors and Executive Officers in the Merger”

“Special Factors—Financing”

“Special Factors—Voting and Support Agreement”

“Special Factors—No Solicitation”

“Special Factors—Termination”

“Special Factors—Termination Fee”

“The Special General Meeting—Required Shareholder Votes for the Merger”

“The Merger Agreement”

“Important Information Regarding Aircastle—Security Ownership of Directors, Executive Officers and Certain Beneficial Owners”

“Important Information Regarding Aircastle—Transactions in Common Shares”

“Voting and Support Agreement Involving Common Shares”

Annex A: Merger Agreement

Annex B: Voting and Support Agreement

Item 6. Purposes of the Transaction and Plans or Proposals.

(b) Use of Securities Acquired. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Questions and Answers About the Special General Meeting and the Merger”

“Special Factors—Certain Effects of the Merger”

“The Merger Agreement—Effect of the Merger on the Common Shares of the Company and Merger Sub”

“The Merger Agreement—Treatment of Company Equity Awards”

(c) (1)–(8) Plans. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet”

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“Questions and Answers about the Special General Meeting and the Merger”

“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Special Factors—Plans for the Company After the Merger”

“Special Factors—Certain Effects of the Merger”

“Special Factors—Interests of the Company’s Directors and Executive Officers in the Merger”

“Special Factors—Voting and Support Agreement”

“The Special General Meeting—Required Shareholder Votes for the Merger”

“The Merger Agreement—Structure of the Merger”

“The Merger Agreement—Effect of the Merger on the Common Shares of the Company and Merger Sub”

“The Merger Agreement—Treatment of Company Equity Awards”

“Voting and Support Agreement Involving Common Shares”

“Important Information Regarding Aircastle—Dividends”

Annex A: Merger Agreement

Annex B: Voting and Support Agreement

Item 7. Purposes, Alternatives, Reasons and Effects

(a) Purposes. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Summary Term Sheet—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Special Factors—Plans for the Company After the Merger”

(b) Alternatives. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Special Factors—Plans for the Company After the Merger”

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(c) Reasons. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Summary Term Sheet—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Special Factors—Plans for the Company After the Merger”

“Special Factors—Certain Effects of the Merger”

“Special Factors—Opinion of Citigroup Global Markets Inc.”

Annex C: Opinion of Citigroup Global Markets Inc.

(d) Effects. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Questions and Answers about the Special General Meeting and the Merger”

“Summary Term Sheet”

“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Special Factors—Plans for the Company After the Merger”

“Special Factors—Certain Effects of the Merger”

“Special Factors—Interests of the Company’s Directors and Executive Officers in the Merger”

“Special Factors—Anticipated Accounting Treatment of the Merger”

“Special Factors—U.S. Federal Income Tax Consequences of the Merger”

“The Merger Agreement—Structure of the Merger”

“The Merger Agreement—Effect of the Merger on the Common Shares of the Company and Merger Sub”

“The Merger Agreement—Treatment of Company Equity Awards”

“Advisory Vote on Merger Related Compensation”

Item 8. Fairness of the Transaction

(a)–(b) Fairness; Factors Considered in Determining Fairness. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Opinion of Citigroup Global Markets Inc.”

“Summary Term Sheet—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Summary Term Sheet—Interests of the Company’s Directors and Executive Officers in the Merger”

6

“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Opinion of Citigroup Global Markets Inc.”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Special Factors—Projected Financial Information”

“Special Factors—Interests of the Company’s Directors and Executive Officers in the Merger”

“Important Information Regarding Aircastle”

Annex C: Opinion of Citigroup Global Markets Inc.

Presentations by Citigroup Global Markets Inc. to the Board of Directors on October 28, 2019 and November 5, 2019 are filed as Exhibits (c)(2) and (c)(3), respectively, and are incorporated herein by reference.

(c) Approval of Security Holders. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Record Date and Quorum”

“Summary Term Sheet—Required Shareholder Votes for the Merger”

“Summary Term Sheet—Conditions to the Merger”

“Questions and Answers about the Special General Meeting and the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“The Special General Meeting—Record Date and Quorum”

“The Special General Meeting—Required Shareholder Votes for the Merger”

“The Merger Agreement—Conditions to the Merger”

(d) Unaffiliated Representative. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Summary Term Sheet—Opinion of Citigroup Global Markets Inc.”

“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Special Factors—Opinion of Citigroup Global Markets Inc.”

Annex C: Opinion of Citigroup Global Markets Inc.

Presentations by Citigroup Global Markets Inc. to the Board of Directors on October 28, 2019 and November 5, 2019 are filed as Exhibits (c)(2) and (c)(3), respectively, and are incorporated herein by reference.

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(e) Approval of Directors. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Questions and Answers about the Special General Meeting and the Merger”

“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

(f) Other Offers. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Special Factors—Background of the Merger”

Item 9. Reports, Opinions, Appraisals and Negotiations

(a)–(c) Report, Opinion or Appraisal; Preparer and Summary of the Report, Opinion or Appraisal; Availability of Documents. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Summary Term Sheet—Opinion of Citigroup Global Markets Inc.”

“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Opinion of Citigroup Global Markets Inc.”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Where You Can Find Additional Information”

Annex C: Opinion of Citigroup Global Markets Inc.

Presentations by Citigroup Global Markets Inc. to the Board of Directors on October 28, 2019 and November 5, 2019 are filed as Exhibits (c)(2) and (c)(3), respectively, and are incorporated herein by reference.

The reports, opinions or appraisals referenced in this Item 9 will be made available for inspection and copying at the principal executive offices of the Company during its regular business hours by any interested equity security holder of the Company or representative who has been so designated in writing.

Item 10. Source and Amounts of Funds or Other Consideration

(a)–(b) Source of Funds; Conditions. The information set forth in the Proxy Statement under the following caption is incorporated herein by reference:

“Summary Term Sheet—Financing”

“Special Factors—Financing”

“Special Factors—Limited Guaranty”

“The Merger Agreement—Financing Cooperation”

(c) Expenses. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

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“Special Factors—Fees and Expenses”

“The Merger Agreement—Termination Fee”

(d) Borrowed Funds. Not applicable.

Item 11. Interest in Securities of the Subject Company

(a) Securities Ownership. The information set forth in the Proxy Statement under the following caption is incorporated herein by reference:

“Special Factors—Certain Effects of the Merger”

“Important Information Regarding Aircastle—Security Ownership of Directors, Executive Officers and Certain Beneficial Owners”

“Important Information Regarding Aircastle—Transactions in Common Shares”

(b) Securities Transactions. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Special Factors—Voting and Support Agreement”

“Voting and Support Agreement Involving Common Shares”

“Important Information Regarding Aircastle—Security Ownership of Directors, Executive Officers and Certain Beneficial Owners”

“Important Information Regarding Aircastle—Transactions in Common Shares”

Annex B: Voting and Support Agreement

Item 12. The Solicitation or Recommendation

(d) Intent to Tender or Vote in a Going-Private Transaction. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Required Shareholder Votes for the Merger”

“Summary Term Sheet—Voting and Support Agreement”

“Questions and Answers about the Special General Meeting and the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

“Special Factors—Voting and Support Agreement”

“The Special General Meeting—Required Shareholder Votes for the Merger”

“Voting and Support Agreement Involving Common Shares”

Annex B: Voting and Support Agreement

(e) Recommendation of Others. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Questions and Answers about the Special General Meeting and the Merger”

“Special Factors—Background of the Merger”

“Special Factors—Purpose and Reasons of the Company for the Merger; Position of the Company as to Fairness of the Merger; Recommendation of the Board of Directors”

“Special Factors—Purposes and Reasons of Parent and Merger Sub for the Merger”

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“Special Factors—Position of the Marubeni Shareholders, Parent and Merger Sub as to Fairness of the Merger”

Item 13. Financial Statements

(a) Financial Information. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Important Information Regarding Aircastle—Historical Selected Financial Information”

“Important Information Regarding Aircastle—Book Value Per Share”

“Where You Can Find Additional Information”

The audited financial statements set forth in Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and the financial statements set forth in Item 1 of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 are incorporated herein by reference.

(b) Pro Forma Information. Not applicable.

Item 14. Persons/Assets, Retained, Employed, Compensated or Used

(a)–(b) Solicitations or Recommendations; Employees and Corporate Assets. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Summary Term Sheet—Opinion of Citigroup Global Markets Inc.”

“Summary Term Sheet—Financing”

“Questions and Answers about the Special General Meeting and the Merger”

“Special Factors—Background of the Merger”

“Special Factors—Opinion of Citigroup Global Markets Inc.”

“Special Factors—Financing”

“Special Factors—Fees and Expenses”

“The Special General Meeting—Solicitation of Proxies”

Item 15. Additional Information

(b) Golden Parachute Compensation. The information set forth in the Proxy Statement under the following captions is incorporated herein by reference:

“Advisory Vote on Merger Related Compensation”

“Summary Term Sheet—Interests of the Company’s Directors and Executive Officers in the Merger”

“Special Factors—Interests of the Company’s Directors and Executive Officers in the Merger”

(c) Other Material Information. The information set forth in the Proxy Statement, including all annexes thereto, is incorporated herein by reference.

Item 16. Exhibits

(a) (1) Preliminary Proxy Statement of Aircastle Limited (incorporated herein by reference to the Schedule 14A filed with the Securities and Exchange Commission on January 15, 2020 (the “Proxy Statement”)).

(a)(2) Form of Proxy Card (incorporated herein by reference to the Proxy Statement).

(a)(3) Letter to Shareholders (incorporated herein by reference to the Proxy Statement).

(a)(4) Notice of Special General Meeting of Shareholders (incorporated herein by reference to the Proxy Statement).

(a)(5) Press Release of Aircastle Limited, dated November 6, 2019 (incorporated herein by reference to Exhibit 99.1 to Aircastle Limited’s Form 8-K filed with the Securities and Exchange Commission on November 7, 2019).

10

(a)(6) Press Release of Marubeni Corporation, dated November 7, 2019 (incorporated herein by reference to the Schedule 14A filed by Marubeni Corporation with the Securities and Exchange Commission on November 7, 2019).

(a)(7) Transcript of Quarterly Earnings Announcement Presentation and Q&A session of Marubeni Corporation (incorporated herein by reference to the Schedule 14A filed by Marubeni Corporation with the Securities and Exchange Commission on December 6, 2019).

(b) None.

(c)(1) Opinion of Citigroup Global Markets Inc. (incorporated herein by reference to Annex C of the Proxy Statement).

(c)(2) Presentation to the Board of Directors, dated October 28, 2019, prepared by Citigroup Global Markets Inc. for the Board of Directors of Aircastle Limited.

(c)(3) Presentation to the Board of Directors, dated November 5, 2019, prepared by Citigroup Global Markets Inc. for the Board of Directors of Aircastle Limited.

(d)(1) Agreement and Plan of Merger, dated as of November 5, 2019, by and among Aircastle Limited, MM Air Limited and MM Air Merger Sub Limited (incorporated herein by reference to Annex A of the Proxy Statement).

(d)(2) Voting and Support Agreement, dated as of November 5, 2019, by and among Aircastle Limited, Marubeni Corporation, Marubeni Aviation Corporation and Marubeni Aviation Holding Coöperatief U.A. (incorporated herein by reference to Annex B of the Proxy Statement).

(d)(3) Amended and Restated Shareholder Agreement, dated as of February 18, 2015, by and among Aircastle Limited, Marubeni Corporation and Marubeni Aviation Holding Coöperatief U.A. (incorporated by reference to Exhibit 4.8 to Aircastle Limited’s Quarterly Report on Form 10-Q filed on May 6, 2015).

(d)(4) Amendment Agreement No. 1 to the Amended and Restated Shareholder Agreement, dated as of September 23, 2016, by and among Aircastle Limited, Marubeni Corporation and Marubeni Aviation Holding Coöperatief U.A. (incorporated by reference to Exhibit 4.1 to Aircastle Limited’s Current Report on Form 8-K filed on September 26, 2016).

(f) Section 106 of the Bermuda Companies Act (incorporated herein by reference to Annex D of the Proxy Statement).

(g) None.

11

SIGNATURES

After due inquiry and to the best of each of the undersigned’s knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

Dated as of January 15, 2020

AIRCASTLE LIMITED

By:
/s/ Christopher L. Beers
 
Name:
Christopher L. Beers
 
Title:
Chief Legal Officer & Secretary
 

MARUBENI CORPORATION

By:
/s/ Takayuki Sakakida
 
Name:
Takayuki Sakakida
 
Title:
General Manager, Finance & Leasing Business
Dept. – II
 

MM AIR LIMITED

By:
/s/ Takayuki Sakakida
 
Name:
Takayuki Sakakida
 
Title:
Director
 
 
 
By:
/s/ Yoshiyasu Mizutomi
 
Name:
Yoshiyasu Mizutomi
 
Title:
Director
 

MM AIR MERGER SUB LIMITED

By:
/s/ Takayuki Sakakida
 
Name:
Takayuki Sakakida
 
Title:
Director
 

MARUBENI AVIATION HOLDING COÖPERATIEF U.A.

By:
/s/ Takayuki Sakakida
 
Name:
Takayuki Sakakida
 
Title:
Managing Director
 

MARUBENI AVIATION CORPORATION

By:
/s/ Takayuki Sakakida
 
Name:
Takayuki Sakakida
 
Title:
Director
 

12


Exhibit (C)(2)
   Strictly Private and Confidential    Citi Banking, Capital Markets & Advisory | TransportationOctober 28, 2019  Project EuropaMaterials for the Board of Directors 
 

     Citi Confidential Disclaimer  The following pages contain material provided to the Board of Directors of Aircastle Limited (“Europa” or the “Company”) by Citigroup Global Markets Inc. (“Citi”) in connection with a potential transaction involving the Company.The accompanying material was compiled or prepared on a confidential basis solely for the use of the Board of Directors of the Company and not with a view toward public disclosure under any securities laws or otherwise. The information contained in the accompanying material was obtained from the Company and other sources. Any estimates and projections for the Company contained herein have been prepared or adopted by the management of the Company, obtained from public sources, or are based upon such estimates and projections, and involve numerous and significant subjective determinations, and there is no assurance that such estimates and projections will be realized. Citi does not take responsibility for such estimates and projections, or the basis on which they were prepared. No representation or warranty, express or implied, is made as to the accuracy or completeness of such information and nothing contained herein is, or shall be relied upon as, a representation, whether as to the past, the present or the future. In preparing the accompanying material, Citi assumed and relied, without independent verification, upon the accuracy and completeness of all financial and other information and data publicly available or provided to or otherwise reviewed by or discussed with Citi and upon the assurances of the managements and other representatives of the Company that they are not aware of any relevant information that has been omitted or that remains undisclosed to Citi.The accompanying material was not prepared for use by readers not as familiar with the Company as the Board of Directors of the Company and, accordingly, neither the Company nor Citi nor their respective legal or financial advisors or accountants take any responsibility for the accompanying material if used by persons other than the Board of Directors of the Company. The accompanying material is necessarily based upon information available, and financial, stock market and other conditions and circumstances existing and disclosed, to Citi as of the date of the accompanying material. Citi does not have any obligation to update or otherwise revise the accompanying material. Nothing contained herein shall be construed as legal, regulatory, tax or accounting advice.  1 
 

 1. Trading Overview 
 

             Total Shareholder Return Performance vs. Select Aircraft Lessors  Total Shareholder Return (1)(Since January 1, 2014)  FactSet. Market data as of October 23, 2019.Total shareholder return assumes dividends are reinvested in the respective security as of distribution.  Source: (1)(2)  Reflects price performance since market close on August 5, 2019, the day before Europa’s Q2 2019 earnings announcement on the morning of August 6, 2019..  64%  83%    TSR  25%  63%    Price Return        20  40  60  80  100  120  140  160  180  200%  Jan-14  May-14  Oct-14  Mar-15  Aug-15  Jan-16 Jun-16 Nov-16Brexit Vote US Election (June 23, (November 6,2016) 2016)  Apr-17  Sep-17  Feb-18 Jul-18Inflation and Interest Rate Concerns (February 2018)  Dec-18 May-19Trade Tensions and Growth Uncertainty (December 2018)  Oct-19  2  51%48%  51%42%  AL  Europa AER          S&P 500                  (5)08/05 08/16 08/27 09/07 09/18 09/29 10/10 10/21  25%  Q2 2019 Earnings (2) 24%  20    15  15%  10  12%  5  6%  0    Total Shareholder Return Since       Total Shareholder Return Since Jan. 1, 2014 2-Years LTM YTD     Europa  64%  15%  30%  44%  5.0%  AL  48  3  13  48  1.2  AER S&P 500   5183   1022   1412   4622   ----  LQA DividendYield  
 

                   $36.3  $17.8  $7.8  $15.9  $2.8                3.7  6.2  9.5  3.1  7.4                1,042  361  283  337  98                  $8.2  $5.0  $1.8  $6.4  $0.7  $36.4  $17.9  $6.8  $19.0  $3.0  Benchmarking Select Publicly-Listed Aircraft Lessors  Number of Aircraft(Last Reported Quarter; Owned and Managed)  Firm Value and Equity Value($ in billions)  Aircraft Net Book Value(Last Reported Quarter; $ in billions)        Source:  Public filings and presentations. FactSet. Market data as of October 23, 2019.  Average Age of Aircraft(Last Reported Quarter; In Years)    Firm Value      Equity Value            EuropaPurchase Commitments (Number of Aircraft)  331 343 32 162 29        Europa          Europa        Europa                  3 
 

                   5.5%  6.0%  8.2%  5.1%  6.8%                2.4x  2.5x  3.1x  3.0x  3.1x                12.7%  11.4%  11.2%  15.7%                12.1%  10.8%  10.6%  14.7%  10.7%    Benchmarking Select Publicly-Listed Aircraft Lessors (Cont’d)  SG&A as a % of Total Revenues(LTM)  Portfolio Yield (1)(LTM)  Net Debt / Equity(Last Reported Quarter)  Post-Tax ROE(LTM; Adjusted for Impairments)        Source: (1)  (2)  Public filings and presentations, Bloomberg, FactSet. Market data as of October 23, 2019. Calculated as Total Lease Revenues / Average Net Book Value of Aircraft, excluding maintenance reserves and overhaul revenues, as disclosed by each company.As reported by each respective company in latest filings.  (3)  (4)  FLY LTM Post-Tax ROE is 15.4%, calculated excluding gain on sale of aircraft. Assumes effective tax rate over prior four quarters.Reflects Europa Base Case estimates for Europa and Wall Street estimates for other select publicly- listed aircraft lessors. FLY figure is 2020E, based on available broker research.  Average Debt Cost (2)  -- / BBB / BBB Baa3 / BBB- / BBB- Baa3 / BBB- / BBB- -- / A- / A- Ba3 / BB- / --  3.5% 4.8% 4.2% 3.6% 4.8%  Long Term ROE (2021E) (4)      Europa        Europa          EuropaCredit Ratings (M / S / F)        Europa      10.2% 13.1% 9.6% 12.2% 15.4%            SG&A as a % of Average Total Assets0.6% 0.6%  1.0%  0.5%  0.9%    22.5%(3)  4 
 

           0.40  0.80  1.601.20  2.00x  Jan-14  Jun-14  Dec-14  Jun-15  Dec-15  May-16  Nov-16  May-17  Nov-17  Apr-18  Oct-18  Apr-19  Oct-19  Historical Trading Multiples for Europa and Select Aircraft Lessors  Price / Book(January 1, 2014 – Present)  Price / NTM Pre-Tax Income(January 1, 2014 – Present)    Source: Note:  AER shown after May 14th, 2014, the closing date of the acquisition of International Lease Finance Corporation.  AER AL        0.93x0.89x0.87x  6.6x  5.6x  10.3x        2.0  6.0  10.0  14.0x  Jan-14  Jun-14 Dec-14 Jun-15 Dec-15 May-16EuropaPublic filings and presentations, FactSet. Market data as of October 23, 2019.  Nov-16  May-17  Nov-17  Apr-18  Oct-18  Apr-19  Oct-19  5   Trailing Averages Since Jan. 1, 2014 3-Years 2-Years LTM   Europa  9.6x  9.0x  8.8x  8.7x  AL  6.8  6.1  6.0  5.1  AER  6.6  6.5  6.6  6.1   Trailing Averages Since Jan. 1, 2014 3-Years 2-Years LTM   Europa AL AER  0.92x1.150.98  0.88x1.060.88  0.83x1.020.86  0.76x0.860.78     
 

 2. Preliminary Financial Analysis 
 

     Overview of Base Case and Sensitivities    Base Case  Assumes aircraft acquisitions of $1.4 billion - $1.7 billion per yearDebt / equity of 2.5x - 2.8x  For Reference Only  Higher Growth Sensitivity  Aircraft acquisitions increased to $1.7 billion - $2.2 billion per yearDebt / equity of 3.0x by 2021E    Lower Growth Sensitivity  Aircraft acquisitions reduced to $1 billion - $1.4 billion per yearDebt / equity of 2.5x - 2.9x  Source: Note:  Europa Management.Base Case and sensitivities assume no share repurchases and treat forecast stock based compensation as a cash cost.  6 
 

                                                                     $2,418  $2,579$2,522  $2,073$2,073  $2,171$2,158  $2,301  $2,480  $2,667  $1,834  $1,908  $2,009  $2,073$2,046  $2,155$2,122  $2,265 $2,390$2,251$2,175  2016A 2017A 2018A 2019E 2020E 2021E 2022E 2023E                                                                        $995  $1,114  $911$894  $1,021  $1,062  $911$911$911  $1,078  $1,203  $1,307$1,194  $812  $852  $890  $890  $975$923  $957$938  2019E  2020E  2021E  2022E  2023E                                                                  $1,400  $1,700  $1,700 $1,700  $1,269  $1,038  $1,212  $1,374  $1,239  $1,269$1,269  $2,200  $1,700  $1,800  $2,100  $1,331  $1,038  $1,317  $1,198  $1,053  $1,100  2018A 2019E 2020E 2021E 2022E 2023E  Source: Note: (1)  Company filings, Europa Management, Wall Street research.Consensus estimates represent the median of latest available Wall Street research. Includes gains on sale of aircraft.  Europa Comparison (Base Case and Sensitivities)  # of Brokers    6    6    4    2016A 2017A 2018AShareholders’ Equity($ in millions)    19-21E CAGR 5.4%4.5%4.2%3.1%      19-21E CAGR 8.8%4.5%3.7%1.5%  # of Brokers    9    9    6  Total Revenue (1)($ in millions)        4    4    3  # of Brokers  Aircraft Acquisition($ in millions)           # of Brokers                                                                  $236  $229  $164$164  $235  $290  $305  $164  $184$178  $265  $278  $151  $148  $248  $151  $197$184  $212$200$193  2016A 2017A 2018A  2021E 2022E 2023EEuropa – Higher Growth Sensitivity Europa – Base CaseEuropa – Lower Growth Sensitivity Historicals / Consensus Estimates  19-21E CAGR19.5%15.1%13.7%8.5%  2016A 2017ANet Income($ in millions)      6 62019E 2020E    3    7 
 

   Implied Per Share Value (1)  Latest Reported Quarter (2)Price / Book Range: 0.87x - 0.93xCurrent Book Value per Share of $26.96  Europa - Base CasePrice / 2020E Pre-Tax Income Range: 5.3x - 6.9x  2020E Pre-Tax Income per Share of $2.56  Europa - Base CasePrice / 2020E Net Income Range: 6.9x - 7.8x  2020E Earnings per Share of $2.39Europa - Base Case  Terminal Year Price / Book: 0.80x - 1.00x; Cost of Equity: 8.00% - 10.50%  Gross Debt / Equity Target of 2.5xTrading Range  52-Week Intraday Trading Range to 10/23/2019  Discounted Analyst Targets (3)Price Target Range: $18.00 - $26.00Discounted at Mid-Point Cost of Equity: 9.25%  Selected Precedent Premiums Paid Analysis  20.0% - 30.0% Premium to Unaffected Share Price as of 10/23/2019 of $23.86  20.0% - 30.0% Premium to Share Price as of 8/6/2019 (Q2 2019 Earnings) of $19.73  Net Asset Value per ShareBased on Average of Third Party Appraisals for Maintenance-Adjusted CMV                                      Selected Companies Analysis  Price / Book    Price / Pre-Tax Income    Price / Earnings    Discounted Dividends Analysis  For Reference Only  Reference Metrics                              $23.60  $13.70  $16.60  $21.50  $15.75  $16.80  $28.60  $11.64  $25.10  $17.70  $18.60  $28.90  $23.86  $23.80  $31.00    $23.70    $25.60  Summary Preliminary Financial Analysis  Source: Note:  (1)  Company filings, Europa Management, FactSet. Market data as of October 23, 2019. Assumes illustrative valuation date of June 30, 2019.Europa fully diluted share count of 76.729 million as of August 2, 2019 per Europa Management. Consists of 74.951 million basic shares, 0.067 million RSUs, and 1.711 million PSUs (assuming maximum LTIP payout).Rounded to the nearest $0.10, except for Trading Range and Net Asset Value per Share.  Based on Book Value Per Share calculated as Shareholders’ Equity of $2,021 million divided by shares issued and outstanding of 74.983 million as of June 30, 2019 and as stated in Europa’s Second Quarter 2019 Earnings Presentation.Discounted to current assuming 1-year forward estimate as of analyst publication date.  Share Price as of 8/6/2019: Share Price as of 10/23/2019:  $19.73$23.86  Offer Range:$28.00 - $30.00  Excludes selected transactions due to lack of publicly available information regarding recent aircraft leasing platform sales, which are typically private transactions.Methodology  8 
 

     Discounted Dividends Analysis    Discounted cash flow analysis based on forecasted dividends  Excess equity capital is distributed annually in the form of a dividend to shareholders based on a target debt to equity ratioAssumes Europa net debt of $5,043 million as of June 30, 2019Assumes any incremental debt is financed through Europa’s existing revolver capacity at a rate of L + 150 bpsAssumes minimum cash of $100 millionMid-period discounting convention applied to dividend stream  Price / Book terminal multiple range applied to terminal Book Equity  Source: Note:  (1)  Company filings, Europa Management.Europa fully diluted share count of 76.729 million as of August 2, 2019 per Europa Management. Consists of 74.951 million basic shares, 0.067 million RSUs, and 1.711 million PSUs (assuming maximum LTIP payout).Rounded to the nearest $0.10.  Assumptions Implied Per Share Value (1)  Europa - Base Case  Terminal Year Price / Book: 0.80x - 1.00x  Cost of Equity: 8.00% - 10.50%  Gross Debt / Equity Target of 2.5x            For Reference Only  Europa - Higher Growth SensitivityTerminal Year Price / Book: 0.80x - 1.00x Cost of Equity: 8.00% - 10.50%Gross Debt / Equity Target of 3.0x  $22.80  $30.00    Europa - Lower Growth SensitivityTerminal Year Price / Book: 0.80x - 1.00x Cost of Equity: 8.00% - 10.50%Gross Debt / Equity Target of 2.5x  $22.10  $28.50  $21.50  $28.90  9 
 

   Implied Multiples at Various Prices  Source: Note:  (1)(2)(3)(4)  Company filings, Europa Management, Wall Street research, FactSet. Market data as of October 25, 2019. Balance sheet data as of June 30, 2019.Europa fully diluted share count of 76.729 million as of August 2, 2019 per Europa management. Consists of 74.951 million basic shares, 0.067 million RSUs, and 1.711 million PSUs (assuming maximum LTIP payout).Date prior to Europa announcement of review of strategic alternatives. Shares closed at $23.86. Date of Europa’s Q2 2019 earnings announcement. Shares closed at $19.73.Assumes net debt of $5,043 million and $79 million in investment in affiliates per Q2 2019 filings.Book Value Per Share calculated as Shareholders’ Equity of $2,021 million divided by shares issued and outstanding of 74.983 million as of June 30, 2019 and as stated in Europa’s Second Quarter 2019 Earnings Presentation.  10  Price / Book  CurrentJune 30, 2019A (4)  $26.96  0.99x  1.04x 1.11x  Price / Pre-Tax Income  Europa Base Case                           October 25, 2019     Offer Range     ($ in millions, except per share items)     Metric    $26.80  $28.00    $30.00  Implied Premium to Share Price on October 25, 2019    $26.80    --  4%    12%  Implied Premium to Share Price on October 23, 2019 (1)    23.86    12%  17    26  Implied Premium to Share Price on August 6, 2019 (2)    19.73    36  42    52  % Premium / (Discount) to:                52-Week Intraday High Pre-Announcement (on October 23, 2019)    $23.86    12%  17%  26%    52-Week Intraday Low (on December 26, 2018)    15.75    70  78  90    VWAP for the 12 Months Prior to August 6, 2019    19.85    35  41  51    VWAP since August 6, 2019    22.04    22  27  36    Equity Value        $2,056  $2,148  $2,302    Firm Value (3)        7,021  7,113  7,266    Dividend Yield                LQA    $1.20    4.5%  4.3%  4.0%            2019E  $2.35  11.4x  11.9x  12.8x  2020E  2.56  10.5  10.9  11.7  Price / Earnings          Europa Base Case2019E  $2.14  12.5x  13.1x  14.0x  2020E  2.39  11.2  11.7  12.5 
 

   Selected Companies Analysis  Financial Data    Source: Note:  (1)  Public filings and presentations, FactSet. Market data as of October 23, 2019. Europa fully diluted share count of 76.729 million as of August 2, 2019 per Europa Management. Consists of 74.951 million basic shares, 0.067 million RSUs, and 1.711 million PSUs (assuming maximum LTIP payout).Rounded to the nearest $0.10.  (2)  (3)  Book Value Per Share calculated as Shareholders’ Equity of $2,021 million divided by shares issued and outstanding of 74.983 million as of June 30, 2019 and as stated in Europa’s Second Quarter 2019 Earnings Presentation.Represents Europa Base Case.  Per Share(1)  Methodology  Reference   Reference Range Low High  Low  High        Considered But Excluded RationaleBOC Aviation considered but excluded due to majority controlling ownership by Chinese SOE (Bank of China) as well as Hong Kong listingFLY Leasing considered but excluded as the company is a publicly traded vehicle externally managed by BBAMImplied Reference Ranges  Europa (Consensus)  $23.86  5.0%  $1.8  $6.8  11.1x  8.7x  11.9x  9.6x  0.89x  Europa (Base Case)  23.86  5.0  1.8  6.8  10.2  9.3  11.1  10.0  0.89  ($ in billions,  Share  LQA  Equity  Firm  Price / Pre-Tax Income   Price / Earnings  Price /  except per share data)  Price  Yield  Value  Value  2019E  2020E    2019E  2020E  Book  AerCap (AER)  $57.72  --  $8.2  $36.4  6.2x  6.9x    7.3x  7.8x  0.87x  Air Lease (AL)  44.12  1.2%  5.0  17.9  6.8  5.3    8.7  6.9  0.93  Considered But Excluded:                    BOC Aviation  $9.17  3.0%  $6.4  $19.0  8.5x  7.7x  9.4x  8.5x  1.48x  Fly Leasing  20.78  --  0.7  3.0  3.3  5.2  3.7  6.1  0.86  (2)              Price / Book  Current BVPS: $26.96    0.87x  0.93x  $23.60  $25.10  Price / Pre-Tax Income  2020E Pre-Tax Income per Share: $2.56  (3)  5.3  6.9  13.70  17.70      (3)          Price / Earnings  2020E Earnings per Share: $2.39    6.9  7.8  16.60  18.60                11 
 

 3. Reference Materials 
 

   12/24/201852-Week Low (2)($16.19)  Share Price Performance over the Last Twelve Months  Source: Note: (1)  (2)  FactSet. Market data as of October 23, 2019.Select Aircraft Lessors include AER and AL. Represents a market cap weighted index.Reflects price performance since market close on August 5, 2019, the day before Europa’s Q2 2019 earnings announcement on the morning of August 6, 2019. Does not indicate total shareholder return.At market close.  Price  10/23/201952-Week High (2)($23.86 )$23.86Unaffected Price  Offer Range:$28.00 - $30.00    $19.85VWAP 12 Months Prior to August 6th  $22.04VWAP Since August 6th        Relative Share Price Performance Since Q2 2019 Earnings Release (1)  22%  6%              20151050(5)  25%  08/05      08/16 08/27 09/07Europa AER      09/18 09/29 10/10 10/21AL S&P 500  For Illustrative Purposes and Reference OnlyShare Price Performance  12  15%12%                                      14  16  18  20  22  24  26  28  30  $32  Oct-18  Nov-18  Dec-18  Jan-19  Feb-19  Mar-19  Apr-19  May-19  Jun-19  Jul-19  Aug-19  Sep-19  Oct-19 
 

       -- -- -- -- 2% 3% 9% 8% 4%                    13%            15%                                    6%                                            $15.50 -  $16.46 -  $17.41 -  $18.37 -  $19.32 -    $20.28 -    $21.23 -    $22.19 -    $23.14 -  $16.46  $17.41  $18.37  $19.32  $20.28    $21.23    $22.19    $23.14    $24.10  34%  32%  Volume Weighted Average Trading Ranges  3%  11%  5%  19%  56%  58%  13%  --  --  Cumulative Volume as a Percentage of Public Float                  2%  6%  3%  12%  34%  36%  8%  $15.50 -$16.46  $16.46 -$17.41  $17.41 -$18.37  $18.37 -$19.32  $19.32 -$20.28  $20.28 -$21.23  $21.23 -$22.19  $22.19 -$23.14  $23.14 -$24.10    Source:  FactSet. Market data as of October 23, 2019.    VWAP: $22.04      Since Q2 Earnings (August 6, 2019)  Unaffected Share Price$23.86  Cumulative Volume as a Percentage of Public Float        52-Week High$23.86      Unaffected Share Price$23.86      52-Week High$23.86    VWAP: $19.85  For Illustrative Purposes and Reference Only12 Months Prior to Q2 Earnings (August 6, 2019)  13 
 

                     $23.00  $23.00  $21.00  $20.00  $20.00  $18.00  $26.00  $26.00  $25.00  $25.00  $25.00  $26.00  Q2 '18  Q3 '18  Q4 '18  Q1 '19  Q2 '19  Current                            Target Price Range vs. Share Price  Ratings and Median Target Price Over TimeBuy Hold Sell                            89%    78%    78%    11%    11%    30%                67%    67%                            50%        22%    22%    22%    22%    20%    11%                        $24.00 $24.50 $24.00$23.00 $22.50                    $22.50    Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19                    Current    Source: (1)  Company filings, Wall Street research, and FactSet. Market data as of October 23, 2019. Unaffected price as of October 23, 2019.      Median    Share Price  14              Wall Street Analyst Target  Prices        For Illustrative Purposes and Reference Only          Unaffected Share Price: $23.86 (1)                  Premium to  Broker  Report Date  Rating  Target Price  Unaffected Price  J.P.Morgan  10/21/19  Sell  $26.00  9.0%  Stephens  10/01/19  Hold  22.00  (7.8)  Bank of America Merrill Lynch  08/12/19  Sell  20.00  (16.2)  Compass Point  08/07/19  Hold  23.00  (3.6)  Barclays  08/07/19  Hold  22.00  (7.8)  Cowen & Company  08/06/19  Buy  25.00  4.8  Macquarie  08/06/19  Buy  25.00  4.8  Deutsche Bank  08/06/19  Hold  23.00  (3.6)  Credit Suisse  08/06/19  Hold  21.00  (12.0)  Goldman Sachs  08/06/19  Sell  18.00  (24.6)            Median      $22.50  (5.7%)  Maximum      26.00  9.0  Minimum      18.00  (24.6)                     
 

     Selected Premiums Paid Analysis    Number of Deals  Source: Note:  Deal Intelligence.Includes friendly and unsolicited transactions involving a US target with an equity value of $1.0-$3.0 billion. Excludes hostile transactions.                25%  27%  36%  28%  26%  25%  2014  2015  2016  2017  2018  2019 YTD   All Cash Deals   Median Premium  27%  75th Percentile  47  25th Percentile  17  Number of Deals  224  27  37  48  37  44  31  For Illustrative Purposes and Reference OnlyMedian 1-Day % Premium(All Cash Deals; January 1, 2014 – October 23, 2019)  15 
 

   Europa Net Asset Value                              Implied Net Asset Value($ in millions; as of June 30, 2019)  $7,842Net Book Value          $6,692Appraiser 1    $6,694Appraiser 2      $6,693Average Appraisal  Cash (1)  $150          $150    $150      $150  Fleet Value  7,842 (2)          6,692    6,694      6,693  Other Assets (2)  292          292    292      292  Total Assets  $8,284          $7,134    $7,136      $7,135  Debt (3)  $5,193          $5,193    $5,193      $5,193  Other Liabilities  1,070          1,070    1,070      1,070  Total Liabilities  $6,263          $6,263    $6,263      $6,263  Implied Net Asset Value  $2,021          $872    $873      $873  Basic Shares Outstanding (4)  74.983          74.983    74.983      74.983  Implied Net Asset Value per Share  $26.96          $11.63    $11.65      $11.64                          Source: Europa Management, Company filings.Assumed pro forma $150 million cash balance as per Europa Management guidance.Includes finance leases, lease incentives & lease premiums and flight equipment held for sale.Represents gross debt outstanding, pro forma for the July 14, 2019 redemption of $500 million Senior Notes due 2019.Europa basic shares outstanding of 74.983 million as listed on the Company’s balance sheet as of June 30, 2019.  For Illustrative Purposes and Reference OnlyBook Value vs. Maintenance-Adjusted Current Market Value($ in millions; as of June 30, 2019)  16 
 

     Discounted Dividends Analysis – Europa Base Case    Source: Note:  (1)(2)  Company filings, Europa Management.Europa fully diluted share count of 76.729 million as of August 2, 2019 per Europa Management. Consists of 74.951 million basic shares, 0.067 million RSUs, and 1.711 million PSUs (assuming maximum LTIP payout).Calculated relative to Europa Base Case forecast.Treats forecast stock based compensation as a cash cost.  Excess equity capital is distributed annually in the form of a dividend to shareholders based on a target of 2.5x debt / equityAssumes Europa net debt of $5,043 million as of June 30, 2019Assumes any incremental debt is financed through Europa’s existing revolver capacity at a rate of L + 150 bpsAssumes minimum cash of $100 millionMid-period discounting convention applied to dividend streamPrice / Book terminal multiple range applied to terminal Book EquitySensitivity AnalysisImplied Per Share Value (@ 2.50x Debt / Equity)    For Illustrative Purposes and Reference Only    Leverage Sensitivity (@ 0.90x Terminal Multiple)Illustrative Discount Rate  TargetLeverage        8.00%  9.25%  10.50%  2.00x  $25.80  $24.50  $23.28  2.50  26.29  25.03  23.83  3.00  27.33  26.19  25.10  Assumptions  ($ in millions)  2H 2019E  2020E  2021E  2022E  2023E  Discounted cash flow analysis based on forecasted dividends  Net Income  $98  $184  $212  $265  $278  After-Tax Interest Savings (Expense) on Paydown / Incremental Debt (1)    1  5  8  9  9  (Gains) Losses from Dispositions    (36)  (28)  (29)  (32)  (32)  Depreciation & Impairment Expense    182  378  415  458  502  Finance Leases    14  28  21  17  15  Other Non-Cash Charges (2)    21  55  47  51  35  FFO    $279  $622  $675  $767  $807  Change in Net Working Capital    7  (5)  (8)  (11)  (15)  Cash Flow from Operations    $286  $617  $666  $756  $792  Capital Expenditures, net    (302)  (1,093)  (1,269)  (1,246)  (1,065)  Change in Debt    (352)  452  518  461  315  Other Financing Cash Flows    11  31  98  118  119  Dividends Paid    (44)  (8)  (13)  (90)  (161)  Net Change in Cash    ($400)  --  --  --  --  Leverage after Dividend Payment  6/30/2019A  2019E  2020E  2021E  2022E  2023E  Debt  $5,543  $5,191  $5,643  $6,161  $6,622  $6,937  Cash  500  100  100  100  100  100  Net Debt  $5,043  $5,091  $5,543  $6,061  $6,522  $6,837  Shareholders' Equity (2)  $2,021  $2,077  $2,257  $2,464  $2,649  $2,775  Total Debt / Equity  2.7x  2.5x  2.5x  2.5x  2.5x  2.5x  Net Debt / Equity  2.5  2.5  2.5  2.5  2.5  2.5                17 
 

     Discounted Dividends Analysis – Higher Growth Sensitivity      For Illustrative Purposes and Reference OnlyAssumptionsDiscounted cash flow analysis based on forecasted dividendsExcess equity capital is distributed annually in the form of a dividend to shareholders based on a target of 3.0x debt / equityAssumes Europa net debt of $5,043 million as of June 30, 2019Assumes any incremental debt is financed through Europa’s existing revolver capacity at a rate of L + 150 bpsAssumes minimum cash of $100 millionMid-period discounting convention applied to dividend streamPrice / Book terminal multiple range applied to terminal Book Equity  Source: Note:  (1)(2)  Company filings, Europa Management.Europa fully diluted share count of 76.729 million as of August 2, 2019 per Europa Management. Consists of 74.951 million basic shares, 0.067 million RSUs, and 1.711 million PSUs (assuming maximum LTIP payout).Calculated relative to Europa Higher Growth Sensitivity forecast. Treats forecast stock based compensation as a cash cost.  Leverage Sensitivity (@ 0.90x Terminal Multiple)Illustrative Discount Rate 8.00% 9.25% 10.50%  2.00x2.503.00  $26.5226.6427.47  $25.1825.3026.22  $23.9324.0425.05  TargetLeverage                  Sensitivity AnalysisImplied Per Share Value (@ 3.00x Debt / Equity) Illustrative Discount Rate   8.00% 9.25% 10.50%  0.80x0.901.00  $24.9727.4729.96  $23.8526.2228.59  $22.8025.0527.30  TerminalMultiple                ($ in millions)  2H 2019E  2020E  2021E  2022E  2023E  Net Income  $98  $197  $235  $290  $305  After-Tax Interest Savings (Expense) on Paydown / Incremental Debt (1)  (0)  1  3  4  3  (Gains) Losses from Dispositions  (36)  (28)  (29)  (32)  (32)  Depreciation & Impairment Expense  182  403  448  493  546  Finance Leases  14  28  21  17  15  Other Non-Cash Charges (2)  21  57  49  53  37  FFO  $278  $657  $727  $824  $874  Change in Net Working Capital  7  (6)  (8)  (11)  (15)  Cash Flow from Operations  $285  $651  $718  $813  $859  Capital Expenditures, net  (302)  (1,893)  (1,269)  (1,346)  (1,465)  Change in Debt  (240)  1,191  513  522  589  Other Financing Cash Flows  11  51  102  130  130  Dividends Paid (155) -- (64) (120) (112)  Net Change in Cash ($400) -- -- -- --  Leverage after Dividend Payment 6/30/2019A 2019E 2020E 2021E 2022E 2023EDebt $5,543 $5,304 $6,494 $7,007 $7,529 $8,118Cash 500 100 100 100 100 100Net Debt $5,043 $5,204 $6,394 $6,907 $7,429 $8,018Shareholders' Equity (2) $2,021 $1,964 $2,162 $2,336 $2,510 $2,706Total Debt / Equity 2.7x 2.7x 3.0x 3.0x 3.0x 3.0xNet Debt / Equity 2.5 2.6 3.0 3.0 3.0 3.0                                  18 
 

     Discounted Dividends Analysis – Lower Growth Sensitivity      For Illustrative Purposes and Reference OnlyAssumptionsDiscounted cash flow analysis based on forecasted dividendsExcess equity capital is distributed annually in the form of a dividend to shareholders based on a target of 2.5x debt / equityAssumes Europa net debt of $5,043 million as of June 30, 2019Assumes any incremental debt is financed through Europa’s existing revolver capacity at a rate of L + 150 bpsAssumes minimum cash of $100 millionMid-period discounting convention applied to dividend streamPrice / Book terminal multiple range applied to terminal Book Equity  Source: Note:  (1)(2)  Company filings, Europa Management.Europa fully diluted share count of 76.729 million as of August 2, 2019 per Europa Management. Consists of 74.951 million basic shares, 0.067 million RSUs, and 1.711 million PSUs (assuming maximum LTIP payout).Calculated relative to Europa Lower Growth Sensitivity forecast. Treats forecast stock based compensation as a cash cost.  Leverage Sensitivity (@ 0.90x Terminal Multiple)Illustrative Discount Rate 8.00% 9.25% 10.50%  2.00x2.503.00  $25.5526.3027.25  $24.2825.1226.19  $23.0924.0125.18  TargetLeverage                  Sensitivity AnalysisImplied Per Share Value (@ 2.50x Debt / Equity) Illustrative Discount Rate   8.00% 9.25% 10.50%  0.80x0.901.00  $24.1426.3028.47  $23.0725.1227.18  $22.0624.0125.97  TerminalMultiple                ($ in millions)  2H 2019E  2020E  2021E  2022E  2023E  Net Income  $98  $178  $193  $236  $229  After-Tax Interest Savings (Expense) on Paydown / Incremental Debt (1)  1  4  7  9  10  (Gains) Losses from Dispositions  (36)  (28)  (29)  (32)  (32)  Depreciation & Impairment Expense  182  372  393  422  450  Finance Leases  14  28  21  17  15  Other Non-Cash Charges (2)  21  55  46  49  32  FFO  $279  $609  $632  $700  $704  Change in Net Working Capital  7  (5)  (8)  (11)  (15)  Cash Flow from Operations  $286  $604  $624  $690  $689  Capital Expenditures, net  (302)  (730)  (780)  (920)  (604)  Change in Debt  (352)  200  196  257  33  Other Financing Cash Flows  10  29  82  116  107  Dividends Paid (44) (102) (122) (143) (226)  Net Change in Cash ($400) -- -- -- --  Leverage after Dividend Payment 6/30/2019A 2019E 2020E 2021E 2022E 2023EDebt $5,543 $5,192 $5,391 $5,588 $5,844 $5,877Cash 500 100 100 100 100 100Net Debt $5,043 $5,092 $5,291 $5,488 $5,744 $5,777Shareholders' Equity (2) $2,021 $2,077 $2,157 $2,235 $2,338 $2,351Total Debt / Equity 2.7x 2.5x 2.5x 2.5x 2.5x 2.5xNet Debt / Equity 2.5 2.5 2.5 2.5 2.5 2.5                                  19 
 

     Europa Capitalization  Source: Note: (1)  Company filings, Europa Management.All debt shown before issuance costs and discounts.Pro forma for redemption of $500 million senior notes in July 2019.  (2)(3)(4)  Unsecured debt has single trigger change of control provision unless otherwise indicated. Assumes maximum LTIP payout.Assumes $150 million proceeds from incremental revolver draw.    Shares Outstanding  (3)    $2.8 billion of debt with dual trigger change of control provision      Standalone    Pro Forma  ($ in millions)  6/30/2019  Adjustment (1)  6/30/2019  Unrestricted Cash  $500  ($350)  $150  DebtSecured        ECA Financings  $169  --  $169  Bank Financings  1,059  --  1,059  Total Secured Debt  $1,228  --  $1,228  Unsecured (2)        For Illustrative Purposes and Reference OnlyCapitalization    Senior Notes due 2019  $500  ($500)  --  Senior Notes due 2020  300  --  $300  Senior Notes due 2021  500  --  500  Senior Notes due 2022  500  --  500  Senior 5.00% Notes due 2023  500  --  500  Senior 4.40% Notes due 2023  650  --  650  Senior Notes due 2024  500  --  500  Senior Notes due 2026  650  --  650  Unsecured Term Loans  215  --  215  Revolving Credit Facilities  --  $150 (4)  150  Total Unsecured Debt  $4,315  ($350)  $3,965  Total Debt  $5,543  ($350)  $5,193  Net Debt  5,043  --  5,043  Shareholder's Equity  $2,021  --  $2,021  Metrics:        Debt / Equity  2.7x    2.6x  Net Debt / Equity  2.5    2.5    20 
 


           2.0  4.0  6.0  8.0  10.0  12.0  14.0  16.0  18.0x  Jan-14  Jun-14  Dec-14  Jun-15  Dec-15  May-16  Nov-16  May-17  Nov-17  Apr-18  Oct-18  Apr-19  Oct-19  Historical Trading Multiples for Europa and Select Aircraft Lessors  7.7x7.2x  10.3x  Source:  Public filings and presentations, FactSet. Market data as of October 23, 2019.  AER  AL  Europa         Trailing Averages Since Jan. 1, 2014 3-Year 2-Year LTM   Europa  10.7x  9.7x  9.4x  9.1x  AL  10.1  8.6  8.0  6.6   AER 8.3 7.6 7.6 7.1     For Illustrative Purposes and Reference OnlyPrice / NTM EPS(January 1, 2014 – Present)  21 

 


Exhibit (C)(3)
 Strictly Private and Confidential    Citi Banking, Capital Markets & Advisory | TransportationNovember 5, 2019  Project EuropaPresentation to the Board of Directors 
 

     Confidential Material Disclaimer  The following pages contain material provided to the Board of Directors of Aircastle Limited (“Europa” or the “Company”) by Citigroup Global Markets Inc. (“Citi”) in connection with a potential transaction involving the Company.The accompanying material was compiled or prepared on a confidential basis solely for the use of the Board of Directors of the Company and not with a view toward public disclosure under any securities laws or otherwise. The information contained in the accompanying material was obtained from the Company and other sources. Any estimates and projections for the Company contained herein have been prepared or adopted by the management of the Company, obtained from public sources, or are based upon such estimates and projections, and involve numerous and significant subjective determinations, and there is no assurance that such estimates and projections will be realized. Citi does not take responsibility for such estimates and projections, or the basis on which they were prepared. No representation or warranty, express or implied, is made as to the accuracy or completeness of such information and nothing contained herein is, or shall be relied upon as, a representation, whether as to the past, the present or the future. In preparing the accompanying material, Citi assumed and relied, without independent verification, upon the accuracy and completeness of all financial and other information and data publicly available or provided to or otherwise reviewed by or discussed with Citi and upon the assurances of the managements and other representatives of the Company that they are not aware of any relevant information that has been omitted or that remains undisclosed to Citi.The accompanying material was not prepared for use by readers not as familiar with the Company as the Board of Directors of the Company and, accordingly, neither the Company nor Citi nor their respective legal or financial advisors or accountants take any responsibility for the accompanying material if used by persons other than the Board of Directors of the Company. The accompanying material is necessarily based upon information available, and financial, stock market and other conditions and circumstances existing and disclosed, to Citi as of the date of the accompanying material. Citi does not have any obligation to update or otherwise revise the accompanying material. Nothing contained herein shall be construed as legal, regulatory, tax or accounting advice.  1 
 

   Implied Proposed Merger Consideration Metrics  Source: Note:  (1)(2)(3)(4)  Company filings, Europa Management, FactSet.Projections provided by Europa Management. Balance sheet data as of September 30, 2019.Europa fully diluted share count of 76.413 million as of November 4, 2019 per Europa Management. Consists of 74.635 million basic shares, 0.067 million RSUs, and 1.711 million PSUs. Day prior to Europa announcement of strategic alternatives.Day of Europa’s Q2 2019 earnings announcement.Net debt of $4,982 million and $69 million in investment in affiliates as of September 30, 2019 per Europa Management.Book Value Per Share calculated as Shareholders’ Equity of $2,038 million as of September 30, 2019 divided by basic shares issued and outstanding of 74.635 million as of September 30, 2019.  (1)  2  Proposed  Price / Pre-Tax Income  2019E  $2.36  10.1x  13.6x  2020E  2.57  9.3  12.5  Price / Earnings  2019E  $2.15  11.1x  14.9x  2020E  2.40  9.9  13.3                                 October 23, 2019   Merger Consideration  ($ in millions, except per share items)     Metric     $23.86  $32.00  Implied Premium / (Discount) to Closing Share Price on November 4, 2019    $27.31    (13%)  17%  Implied Premium / (Discount) to Closing Share Price on October 23, 2019 (1)    23.86    --  34  Implied Premium / (Discount) to Closing Share Price on August 6, 2019 (2)    19.73    21  62  % Premium / (Discount) to:            52-Week Intraday High Prior to Announcement of Strategic Alternatives (October 23, 2019)  $23.86      --  34%  52-Week Intraday Low (December 26, 2018)  15.75      51%  103  VWAP for the 12 Months Prior to October 23, 2019 (1)  20.00      19  60  Equity Value        $1,823  $2,445  Firm Value (3)        6,736  7,358              Price / Book            September 30, 2019A (4)  $27.31      0.87x  1.17x                     
 

       Updates to the Analysis Since October 28th Board Meeting  Valuation date as of September 30, 2019Balance sheet and share count have been rolled forwardBalance sheet data now as of September 30, 2019Share count as of November 4, 2019Cost of equity estimate has been refinedAssumes ~2.5x net debt / equity based on Discounted Dividends Analysis assumed target leverageMarket update of selected companies analysis as of November 4, 2019  3 
 

   Summary Financial Analysis  Source: Note:  Company filings, Europa Management, FactSet.Projections provided by Europa Management. Assumes illustrative valuation date of September 30, 2019.Europa fully diluted share count of 76.413 million as of November 4, 2019 per Europa  (1)  PSUs.Rounded to the nearest $0.10, except for Trading Range and Net Asset Value per Share.  Management. Consists of 74.635 million basic shares, 0.067 million RSUs, and 1.711 million (4)  Book Value Per Share calculated as Shareholders’ Equity of $2,038 million as of September 30, 2019 divided by basic shares issued and outstanding of 74.635 million as of September 30, 2019.Discounted to November 4, 2019 assuming 1-year forward estimate as of analyst publication date. As of June 30, 2019 based on average of two latest available appraisals.Day of Europa’s Q2 2019 earnings announcement.Day prior to Europa’s announcement of strategic alternatives.  Share Price as of 8/6/2019(5): $19.73 Share Price as of 10/23/2019(6): $23.86  Proposed Merger Consideration: $32.00    (6)  4  Implied Per Share Value (1)  Excludes selected transactions due to lack of publicly available information regarding recent aircraft leasing platform sales, which have typically been private transactions.Methodology  Price / Book Range: 0.89x - 0.96x  Current Book Value per Share of $27.31 (9/30/2019)(2)Price / 2020E Pre-Tax Income Range: 5.5x - 7.1x  2020E Pre-Tax Income per Share of $2.57Price / 2020E Net Income Range: 7.2x - 7.9x  2020E Earnings per Share of $2.40Terminal Year Price / Book: 0.80x - 1.00x; Cost of Equity: 8.1% - 9.4%  Gross Debt / Equity Target of 2.5x  Trading Range52-Week Intraday Trading Range to Unaffected Date of 10/23/2019  Intraday Trading Range from Unaffected Date of 10/23/2019 (6) to 11/4/2019  Discounted Wall Street Research Analyst Price Targets (3)Price Target Range: $18.00 - $26.00  Discounted at Mid-Point Cost of Equity: 8.8%Selected Precedent Premiums Paid Analysis  (6)20.0% - 30.0% Premium to Unaffected Share Price as of 10/23/2019 of $23.86  20.0% - 30.0% Premium to Share Price as of 8/6/2019 (Q2 2019 Earnings) of $19.73(5)  Net Asset Value per Share (4)Based on Average of Two Third-Party Appraisals for Maintenance-Adjusted Current Market Value    Selected Companies Analysis  Price / Book    Price / Pre-Tax Income    Price / Earnings    Discounted Dividends Analysis    For Reference Only                                                            $24.40  $14.20  $17.30  $22.70  $15.75  $16.90  $11.64  $26.30  $18.20  $19.10  $29.00  $23.86  $24.00  $31.00      $23.70  $27.74  $28.60$25.60 
 

 1. Supporting Materials 
 

                                 $1,269  $1,400  $1,700  $1,700  $1,700  $1,331  $1,038  $1,317  $1,198  $1,053  $1,100  2018A  2019E  2020E  2021E  2022E  2023E                                    $911  $911  $995  $1,114  $1,194  $812  $852  $890  $890  $923  $957  2016A 2017A 2018A 2019E 2020E 2021E 2022E 2023E                              $2,069  $2,154  $2,261  $2,415  $2,575  $1,834  $1,908  $2,009  $2,046  $2,122  $2,175  Source: Note:  (1)  Company filings, Europa Management, Wall Street research.Consensus estimates represent the median of latest available Wall Street research as of October 23, 2019, the day prior to Europa’s announcement of strategic alternatives.Includes gains on sale of aircraft.  Europa Management Forecast  # of Brokers    6    6    4    Shareholders’ Equity($ in millions)      18A-21E CAGR      # of Brokers    9    9    6  Total Revenue (1)($ in millions)        4    4    3  # of Brokers  Aircraft Acquisition($ in millions)    Europa Management Historicals / Wall Street Estimates  # of Brokers                              $164  $184  $212  $265  $278  $151  $148  $248  $184  $200  2016A 2017A 2018A 2019E 2020E 2021E 2022E 2023E 2016A 2017A 2018A 2019E  2020E 2021E 2022E 2023E  2016A 2017ANet Income (1)($ in millions)    $1516    6    3    18A-21E CAGR3.8%2.5%  4.0%  2.7%  18A-21E CAGR(5.0%)(6.8%)  5 
 

   ($ in billions,  Share  Dividend  Equity  Firm  Price / Pre-Tax Income     Price /Earnings  Price /  except per share data)  Price  Yield (1)  Value  Value  2019E 2020E    2019E 2020E  Book  AerCap (AER)  $59.00  --  $8.3  $36.6  6.4x 7.1x    7.4x 7.9x  0.89x  Air Lease (AL)  45.76  1.1%  5.2  18.1  7.1 5.5    9.0 7.2  0.96  Considered But Excluded:                    BOC Aviation (2588-HK)  $9.59  2.9%  $6.7  $19.3  8.9x  8.1x  9.9x  8.9x  1.55x  Fly Leasing (FLY)  20.85  --  0.7  3.0  3.3  5.2  3.7  6.1  0.86  Selected Companies Analysis  Financial Data    Europa (Wall Street Estimates)    (2)  $23.86  5.0%  $1.8  $6.8  11.1x  8.7x  11.9x  9.6x  0.89x  Europa (Europa Managment)  (2)  23.86    5.0  1.8  6.8  10.1  9.3  11.1  9.9  0.89  Source:  (1)  (2)  (3)(4)  Public filings and presentations, Europa Management, and FactSet. Market data as of November 4, 2019.For Air Lease and Europa, calculated based on annualized Q3 2019 dividends paid. For BOC Aviation, calculated based on annualized 2H 2019 dividends paid.Market data as of October 23, 2019, the day prior to Europa’s announcement of strategic alternatives. Firm value assumes net debt of $5,043 million and $79 million in investment (5) in affiliates per Q2 2019 filings and Europa Management. Assumes BVPS of $26.96 per  Q2 Earnings Presentation. Rounded to the nearest $0.10.Book Value Per Share calculated as Shareholders’ Equity of $2,038 million as of September 30, 2019 divided by basic shares issued and outstanding of 74.635 million as of September 30, 2019.Per Europa Management.  Considered But Excluded RationaleBOC Aviation considered but excluded due to majority controlling ownership by Chinese SOE (Bank of China) as well as Hong Kong listingFLY Leasing considered but excluded as the company is a publicly traded vehicle externally managed by BBAMImplied Reference Ranges  6   Reference Range   Implied Per Share Value (3)    Methodology  Reference  Low  High  Low  High  Price / Book  9/30/2019A Book Value Per Share: $27.31 (4)  0.89x  0.96x  $24.40  $26.30  Price / Pre-Tax Income  2020E Pre-Tax Income per Share: $2.57 (5)  5.5  7.1  14.20  18.20  Price / Earnings  2020E Earnings per Share: $2.40 (5)  7.2  7.9  17.30  19.10             
 

     Discounted Dividends Analysis    Source: Note: (1)(2)  Company filings, Europa Management.Europa fully diluted share count of 76.413 million as of November 4, 2019 per Europa Management. Consists of 74.635 million basic shares, 0.067 million RSUs, and 1.711 million PSUs. Calculated relative to Europa Management forecasts.This analysis treats forecast stock based compensation as a cash expense, so it is not added back as an other non-cash charge.    AssumptionsDiscounted dividend analysis based on Europa Management forecastsExcess equity capital is distributed annually in the form of a dividend to shareholders based on a target of 2.5x debt / equityEuropa net debt of $4,982 million as of September 30, 2019Assumes any incremental debt is financed through Europa’s existing revolver capacity at a rate of L + 150 bpsAssumes minimum cash of $100 millionMid-period discounting convention applied to dividend streamPrice / Book terminal multiple range applied to terminal Book Equity  Leverage Sensitivity (@ 0.90x Terminal Multiple) Cost of Equity 8.1% 8.8% 9.4%  2.00x2.503.00  $26.0126.4427.56  $25.3625.8126.99  $24.7425.1926.44  TargetLeverage              Sensitivity AnalysisImplied Per Share Value (@ 2.50x Debt / Equity) Cost of Equity   8.1% 8.8% 9.4%  0.80x0.901.00  $23.8326.4429.04  $23.2625.8128.35  $22.7125.1927.67  TerminalMultiple                  ($ in millions)  2H 2019E  2020E  2021E  2022E  2023E  Net Income  $55  $184  $212  $265  $278  After-Tax Interest Savings (Expense) on Paydown / Incremental Debt (1)  0  5  8  9  9  (Gains) Losses from Dispositions  (23)  (28)  (29)  (32)  (32)  Depreciation & Impairment Expense  91  378  415  458  502  Finance Leases  7  28  21  17  15  Other Non-Cash Charges (2)  10  55  47  51  35  FFO  $140  $622  $675  $767  $807  Change in Net Working Capital  0  (5)  (8)  (11)  (15)  Cash Flow from Operations  $141  $617  $666  $756  $792  Capital Expenditures, net  (233)  (1,093)  (1,269)  (1,246)  (1,065)  Change in Debt  (45)  452  518  461  315  Other Financing Cash Flows  (1)  31  98  118  119  Dividends Paid (17) (8) (13) (90) (162)  Net Change in Cash ($154) -- -- -- --  Leverage after Dividend Payment 9/30/2019A 2019E 2020E 2021E 2022E 2023EDebt $5,237 $5,192 $5,644 $6,161 $6,622 $6,937Cash 254 100 100 100 100 100Net Debt $4,982 $5,092 $5,544 $6,061 $6,522 $6,837Shareholders' Equity (2) $2,038 $2,077 $2,258 $2,465 $2,649 $2,775Total Debt / Equity 2.6x 2.5x 2.5x 2.5x 2.5x 2.5xNet Debt / Equity 2.4 2.5 2.5 2.5 2.5 2.5                                  7 
 

   Cost of Equity Calculation  Source: Company filings, Bloomberg. AER and AL market data as of November 4, 2019. Europa market data as of October 23, 2019, the day prior to Europa’s announcement of strategic alternatives.Based on Dividend Discount Analysis assumed target capital structure of ~2.5x net debt / equity.Per guidance from Europa Management.The Adjusted Equity Beta is based on a five year regression against the MSCI Global Index.Represents (Adjusted Equity Beta + Debt Beta x (1-Marginal Tax Rate) x (Book Value of Debt / Market Value of Equity)) / 1+((1-Marginal Tax Rate) x (Book Value of Debt / Market Value of Equity)).  (3)  (4)  (2)  (2)               WACC Calculation Inputs Target Capital Structure (Net Debt / Total Capital): 71.4After-Tax Cost of Debt:Expected Long-Term Yield:– Current Statutory Marginal Tax Rate:Cost of Equity: 5.5% Equity Market Risk Premium 8.16.7% Equity Market Risk Premium 9.4Risk Free Rate (30-Year Treasury Bond):Assumed Equity Market Risk Premium - low: Assumed Equity Market Risk Premium - high:Relevered Equity Beta: 1.07Unlevered Asset Beta:Selected “Standard” Beta Measurement Period (Years):Implied Net Debt / Equity Ratio: 250.0    –––––  (1)71.4 %3.3 %3.5 %(2)4.7 %8.1 %9.4 %2.3 %5.5 %6.7 %1.070.3155250.0 %  Weighted Average Cost of Capital:  4.7  –  5.0 %  5.5% Equity Market Risk Premium  4.7  –  4.7 %  6.7% Equity Market Risk Premium  5.0  –  5.0 %  The low end of the WACC is based upon the low end of the equity market risk premium (5.5%) and the high end of the net debt / total capital ratio. The high end is based on the high end of the equity market risk premium (6.7%) and the low end of the capital structure.          8 
 

 2. Reference Materials 
 

                       14  16  18  2220  24  32302826  $34  Oct-18  Nov-18  Dec-18  Jan-19  Feb-19  Mar-19  Apr-19  May-19  Jun-19  Jul-19  Aug-19  Sep-19  Oct-19  12/24/201852-Week Low (2)($16.19)  Share Price Performance over the Last Twelve Months  Source: (1)  (2)  FactSet. Market data as of October 23, 2019, the day prior to Europa’s announcement of strategic alternatives.Reflects price performance since market close on August 5, 2019, the day before Europa’s Q2 2019 earnings announcement, through October 23, 2019. Does not indicate total shareholder return.At market close.  Price  10/23/201952-Week High (2)($23.86)$23.86Unaffected Price  Proposed Merger Consideration: $32.00  $20.00VWAP for the 12 Months Prior to October 23rd        Relative Share Price Performance Since Q2 2019 Earnings Release (1)  22%  6%              20151050(5)  25%  08/05      08/16 08/27 09/07Europa AER      09/18 09/29 10/10 10/21AL S&P 500  For Illustrative Purposes and Reference OnlyLTM Share Price Performance Prior to October 23, 2019(October 23, 2018 – October 23, 2019)  15%12%  9 
 

           Total Shareholder Return Performance vs. Select Aircraft Lessors  FactSet. Market data as of October 23, 2019, the day prior to Europa’s announcement of strategic alternatives. Total shareholder return assumes dividends are reinvested in the respective security as of distribution.For AL and Europa, calculated based on annualized Q3 2019 dividends paid.  Source: Note: (1)(2)  Reflects price performance since market close on August 5, 2019, the day before Europa’s Q2 2019 earnings announcement, through October 23, 2019.  64%  83%    TSR  25%  63%    Price Return        20  40  60  80  100  120  140  160  180  200%  Jan-14  May-14  Oct-14  Mar-15  Aug-15  Jan-16 Jun-16 Nov-16Brexit Vote US Election (June 23, (November 6,2016) 2016)  Apr-17  Sep-17  Feb-18 Jul-18Inflation and Interest Rate Concerns (February 2018)  Oct-19  51%48%  51%42%  Dec-18 May-19Trade Tensions and Growth Uncertainty (December 2018)AER AL  Europa          S&P 500                  (5)08/05 08/16 08/27 09/07 09/18 09/29 10/10 10/21  25%  Q2 2019 Earnings (2) 24%  20    15  15%  10  12%  5  6%  0    Total Shareholder Return Since  For Illustrative Purposes and Reference OnlyTotal Shareholder Return Through October 23, 2019(January 1, 2014 – October 23, 2019)  10                Europa  64%  15%  30%  44%    5.0%  AL  48  3  13  48    1.1  AER S&P 500   5183   1022   1412   4622     ----   Total Shareholder Return Since Jan. 1, 2014 2-Years LTM YTD   Dividend Yield (1) 
 

           0.40  0.80  1.20  1.60  2.00x  Jan-14  Jun-14  Dec-14  Jun-15  Dec-15  May-16  Nov-16  May-17  Nov-17  Apr-18  Oct-18  Apr-19  Oct-19  Historical Price / Book Trading Multiples vs. Select Aircraft Lessors  Source: Note:  Europa AER ALPublic filings and presentations, FactSet. Market data as of October 23, 2019, the day prior to Europa’s announcement of strategic alternatives. AER shown after May 14th, 2014, the closing date of the acquisition of International Lease Finance Corporation.        0.93x0.89x0.87x  For Illustrative Purposes and Reference OnlyPrice / Book Through October 23, 2019(January 1, 2014 – October 23, 2019)   Trailing Averages Since Jan. 1, 2014 3-Years 2-Years LTM   Europa AL  0.92x1.15  0.88x1.06  0.83x1.02  0.76x0.86   AER 0.98 0.88 0.86 0.78     11 
 

                   $23.00  $23.00  $21.00  $20.00  $20.00  $18.00  $26.00  $26.00  $25.00  $25.00  $25.00  $26.00  Q2 '18  Q3 '18  Q4 '18  Q1 '19  Q2 '19  Current                          Wall Street Research Analyst Price Targets    Price Target Range vs. Share Price  Ratings and Median Price Target Over TimeBuy Hold Sell                            89%    78%    78%    11%    11%    30%                67%    67%                            50%        22%    22%    22%    22%    20%    11%                        $24.00 $24.50 $24.00$23.00 $22.50                    $22.50    Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19                    Current    Source: Note: (1)  Company filings, Wall Street research, and FactSet. Market data as of October 23, 2019.Price targets do not reflect any updates following Europa’s announcement of strategic alternatives on October 24, 2019. Unaffected price as of October 23, 2019, the day prior to Europa’s announcement of strategic alternatives.      Median    Unaffected  Share Price: $23.86 (1)                    Premium / (Discount) to    Broker  Report Date  Rating  Price Target  Unaffected Price    J.P.Morgan  10/21/19  Sell  $26.00  9.0%    Stephens  10/01/19  Hold  22.00  (7.8)    Bank of America Merrill Lynch  08/12/19  Sell  20.00  (16.2)    Compass Point  08/07/19  Hold  23.00  (3.6)    Barclays  08/07/19  Hold  22.00  (7.8)    Cowen & Company  08/06/19  Buy  25.00  4.8    Macquarie  08/06/19  Buy  25.00  4.8    Deutsche Bank  08/06/19  Hold  23.00  (3.6)    Credit Suisse  08/06/19  Hold  21.00  (12.0)    Goldman Sachs  08/06/19  Sell  18.00  (24.6)                Median      $22.50  (5.7%)    Maximum      26.00  9.0    Minimum      18.00  (24.6)                          Share Price  For Illustrative Purposes and Reference Only  12 
 

     Selected Precedent Premiums Paid Analysis    Number of Deals  Source: Note:  Citi Deal Intelligence.Includes friendly transactions involving a US target with an equity value of $1.0-$3.0 billion. Excludes hostile transactions.                25%  27%  36%  28%  26%  25%  2014  2015  2016  2017  2018  2019 YTD   All-Cash Deals   Median Premium  27%  75th Percentile  47  25th Percentile  17  Number of Deals  226  27  37  48  37  44  33  For Illustrative Purposes and Reference OnlyMedian 1-Day % Premium(All-Cash Deals; January 1, 2014 – November 4, 2019)  13 
 

   Net Asset Value Per Share                    $7,842  $6,692  $6,694  $6,693  $7,735  Net Book Value  Net Book Value  Appraiser 1  Appraiser 2  Average Appraisal  ($ in millions)  Implied Net Asset Value        Source: Company filings, Europa Management.Assumes June 30, 2019 $150 million cash balance as per Europa Management guidance, pro forma for July 14, 2019 redemption of $500 million Senior Notes due 2019.Includes finance leases, lease incentives & lease premiums and flight equipment held for sale.Represents gross debt outstanding.Represents gross debt outstanding, pro forma for the July 14, 2019 redemption of $500 million Senior Notes due 2019.Europa basic shares outstanding of 74.635 million as of September 30, 2019.Europa basic shares outstanding of 74.983 million as listed on the Company’s balance sheet as of June 30, 2019.  For Illustrative Purposes and Reference OnlyNet Book Value vs. Maintenance-Adjusted Current Market Value      ($ in millions)                    Cash  $254      $150 (1)    $150 (1)  $150(1)    $150(1)  Fleet Value(2)  7,735      7,842    6,692  6,694    6,693  Other Assets  331      292    292  292    292  Total Assets  $8,321      $8,284    $7,134  $7,136    $7,135  Debt  (3)$5,237      (4)$5,193    (4)$5,193  (4)$5,193    (4)$5,193  Other Liabilities  1,046      1,070    1,070  1,070    1,070  Total Liabilities  $6,282      $6,263    $6,263  $6,263    $6,263  Implied Net Asset Value  $2,038      $2,021    $872  $873    $873  Basic Shares Outstanding  (5)74.635      (6)74.983    (6)74.983  (6)74.983    (6)74.983  Implied Net Asset Value per Share  $27.31      $26.96    $11.63  $11.65    $11.64                      As of 9/30/19        As of 6/30/19      Net Book Value Maintenance-Adjusted Current Market Value  14