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SpiceJet restructures over 100 mn dues into equity to Carlyle Aviation, ET Infra

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<p>FILE PHOTO: A SpiceJet passenger Boeing 737-800 aircraft takes off from Sardar Vallabhbhai Patel international airport in Ahmedabad, India May 19, 2016. REUTERS/Amit Dave</p>
FILE PHOTO: A SpiceJet passenger Boeing 737-800 aircraft takes off from Sardar Vallabhbhai Patel international airport in Ahmedabad, India May 19, 2016. REUTERS/Amit Dave

Debt-ridden budget carrier SpiceJet has announced that it has restructured over USD 100 million outstanding dues to Carlyle Aviation Partner, 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.

As part of the deal, Carlyle Aviation will get over 7.5 per cent stake in the airline. The transaction will wipe out over USD 100 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 have approved issuing fresh equity shares of USD 29.5 million or INR 244.28 crore to Carlyle Aviation Partner at INR 48 per share or the SEBI determined price, whichever is higher.

Additionally, SpiceJet will transfer Compulsorily Converted Debentures (CCDs) of SpiceXpress and Logistics Private Limited (SXPL), held by SpiceJet 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 USD 1.5 billion or INR 12,422 crore.

SpiceJet reports profit in Q3 FY2023, operating revenue increases by 19%

The total revenue for the reported quarter was INR 2,794 crore as against INR 2,679 crore in the same quarter of the previous year. For the same comparative period, operating expenses were INR 2,687 crore as against INR 2,579 crore. ​The airline launched 15 new routes and operated 254 charter flights in the quarter.

Commenting on the development, Ajay Singh, Chairman and Managing Director, SpiceJet said, “Carlyle Aviation Partners picking up a stake in our passenger and cargo business reinforces the huge potential of SpiceJet and SpiceXpress. Carlyle, a global aviation leader, partnering us will tremendously boost our business and this deal would be a transforming moment of change and opportunity for us. 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, 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 (affiliate entity of Castlelake).

The Company’s Board has also sought shareholders’ approval to raise fresh capital of up to INR 2,500 crore/USD 301.9 million through an issue of securities to Qualified Institutional Buyers.

  • Published On Sep 25, 2023 at 04:33 PM IST

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