2nd time: Lessor Carlyle to convert part of SpiceJet dues into equity at 63% share price premium
NEW DELHI: In a major relief to struggling-to-survive SpiceJet, one of its biggest aircraft lessors Carlyle has agreed to convert upto $50 million of its dues into equity. In a regulatory filing, the airline and Carlyle Aviation Management Ltd (CAML) said they will restructure lease obligations at a rate of Rs 100 per share of SpiceJet — 63% premium over the closing share price of Rs 61.46 on BSE Friday.The airline has been trying to raise funds to stay afloat amid mounting payables to stakeholders, including employees.
“SpiceJet and CAML have entered into a term sheet to restructure certain aircraft lease obligations of SpiceJet aggregating to $137.68 million (as of June 30, 2024), which upon settlement/waivers will be adjusted to $97.51 million (subject to further adjustments, if any),” the filing said.
“Such number of equity shares at a price of Rs 100 per share, subject to an aggregate amount of not more than $ 30 million. Lessors will also consider purchasing, via the exchange of lease
arrears, compulsorily convertible debentures of SpiceXpress & Logistics Pvt Ltd (a SpiceJet subsidiary) in a principal amount of $20 million,” the filing said.
This is the second time Carlyle will be partially converting its dues into equity in SpiceJet. Last August, SpiceJet had sought shareholders’ nod to issue 5.91% stake to Carlyle Aviation Partners at Rs 48 per share. Carlyle, SpiceJet’s biggest aircraft lessor, had that time also decided to convert part of its dues to the airline into equity shares and compulsorily convertible debentures (CCDs).
“SpiceJet and CAML have entered into a term sheet to restructure certain aircraft lease obligations of SpiceJet aggregating to $137.68 million (as of June 30, 2024), which upon settlement/waivers will be adjusted to $97.51 million (subject to further adjustments, if any),” the filing said.
“Such number of equity shares at a price of Rs 100 per share, subject to an aggregate amount of not more than $ 30 million. Lessors will also consider purchasing, via the exchange of lease
arrears, compulsorily convertible debentures of SpiceXpress & Logistics Pvt Ltd (a SpiceJet subsidiary) in a principal amount of $20 million,” the filing said.
This is the second time Carlyle will be partially converting its dues into equity in SpiceJet. Last August, SpiceJet had sought shareholders’ nod to issue 5.91% stake to Carlyle Aviation Partners at Rs 48 per share. Carlyle, SpiceJet’s biggest aircraft lessor, had that time also decided to convert part of its dues to the airline into equity shares and compulsorily convertible debentures (CCDs).
