SpiceJet restructures USD 100-mn outstanding dues to Carlyle Aviation Partner
Feb 27, 2023
Gurugram (Haryana) [India], February 27 : Budget carrier SpiceJet has restructured over USD 100-million outstanding dues to Carlyle Aviation Partners, into equity shares and compulsorily convertible debentures (CCDs). Aircraft lessor Carlyle Aviation Partners is the commercial aviation investment and servicing arm of Carlyle's USD 143-billion Global Credit platform.
The transaction will wipe out over USD 10-million debt of SpiceJet, thereby strengthening its balance sheet for future expansion. The move will substantially deleverage the company's balance sheet.
The board of directors of SpiceJet on February 27 approved issuing fresh equity shares of USD 29.5 million or Rs 244.28 crore to Carlyle Aviation Partners at Rs 48 per share or the SEBI-determined price, whichever is higher. Following this transaction, Carlyle Aviation Partners will have over 7.5 per cent equity stake in SpiceJet, according to a statement from SpiceJet.
The company's board has also sought shareholders' approval to raise fresh capital of up to Rs 2,500 crore (USD 301.9 million) through an issue of securities to qualified institutional buyers.
Additionally, SpiceJet will transfer compulsorily converted debentures (CCDs) of SpiceXpress and Logistics Private Limited (SXPL), held by SpiceJet and aggregating to USD 65.5 million, subject to regulatory approvals. The CCDs will be converted into equity shares of SpiceXpress at an anticipated future valuation of $1.5 billion or Rs 12,422 crore.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, "Carlyle Aviation Partners are picking up a stake in our passenger and cargo business reinforces the huge potential of SpiceJet and SpiceXpress. Carlyle, a global aviation leader which is partnering us, will tremendously boost our business and this deal would be a transforming moment of change and opportunity for us."
He added, "The transaction will substantially deleverage our balance sheet thereby allowing us to access fresh funds at a competitive rate and we aim to follow suit with other lessors as well in the near term."
Additionally, SpiceJet's board as a part of restructuring with aircraft lessor CLSEC Holdings 10 DAC (affiliate entity of Castlelake) has in-principally agreed to acquire two Boeing 737-800 airframes by purchasing the entire share capital of AS Air Lease 41 (Ireland) Limited from CLSEC Holdings 10 DAC (affiliate entity of Castlelake).
