Carlyle Aviation Partners Set To Pick Up 7.5 Per Cent Stake In SpiceJet

The SpiceJet board on Monday approved issuing fresh equity shares of $29.5 million (Rs 244.28 crore) to Carlyle Aviation Partners at Rs 48 per share or the SEBI determined price, whichever is higher

Carlyle Aviation Partners will have over 7.5 per cent equity stake in SpiceJet after this transaction. ( Image Source :Getty )

SpiceJet on Monday said it has restructured dues of over $100 million to aircraft leasing firm Carlyle Aviation Partners, into equity shares and compulsorily convertible debentures (CCDs), reported  by the PTI. 

According to the report, the Board of Directors of SpiceJet on Monday approved issuing fresh equity shares of $29.5 million (Rs 244.28 crore) to Carlyle Aviation Partners at Rs 48 per share or the SEBI determined price, whichever is higher, the company said. Carlyle Aviation Partners will have over 7.5 per cent equity stake in SpiceJet after this transaction.

Carlyle Aviation Partners is the commercial aviation investment and servicing arm of Carlyle's $143 billion Global Credit platform.

Ajay Singh, chairman and managing director (CMD), SpiceJet, said, "Carlyle Aviation Partners picking up a stake in our passenger and cargo business reinforces the huge potential of SpiceJet and SpiceXpress. Carlyle partnering with us will tremendously boost our business and this deal would be a transforming moment of change and opportunity for us."

The transaction will retire over $100 million debt of SpiceJet, thereby strengthening its balance sheet for future expansion, the company said in the statement. The move will substantially deleverage SpiceJet's balance sheet, it added.

Additionally, SpiceJet will transfer Compulsorily Converted Debentures (CCDs) of SpiceXpress and Logistics Private Limited (SXPL), held by SpiceJet aggregating to $65.5 million, subject to regulatory approvals, it said. The CCDs will be converted into equity shares of SpiceXpress at an anticipated future valuation of $1.5 billion or Rs 12,422 crore, the company said.

"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,” he said.

Additionally, the 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 entire share capital of AS Air Lease 41 (Ireland) Limited from CLSEC Holdings 10 DAC, SpiceJet said.

The company's Board has also sought shareholders' approval to raise fresh capital of up to Rs 2,500 crore/$301.9 million through an issue of securities to Qualified Institutional Buyers, it added.