Carlyle Aviation Partners to pick up 7.5% stake in SpiceJet

No-frills carrier SpiceJet on Monday said it has restructured over USD 100 million outstanding dues to aircraft leasing firm Carlyle Aviation Partners, into equity shares and compulsorily convertible debentures (CCDs).

The Board of Directors of SpiceJet Ltd on February 27 approved issuing fresh equity shares of USD 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.

Following this transaction, Carlyle Aviation Partners will have over 7.5 per cent equity stake in SpiceJet Ltd.

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

"Carlyle Aviation Partners picking up a stake in our passenger and cargo business reinforces the huge potential of SpiceJet and SpiceXpress."

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"Carlyle partnering with us will tremendously boost our business and this deal would be a transforming moment of change and opportunity for us," said Ajay Singh, Chairman and Managing Director of SpiceJet.

Moreover, the transaction will retire over USD 100 million debt of SpiceJet, thereby strengthening its balance sheet for future expansion, the company said in the statement.

The move will substantially deleverage the company'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 USD 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 USD 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/USD 301.9 million through an issue of securities to Qualified Institutional Buyers, it said.

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