“Please note that SpiceJet Limited and Carlyle Aviation Management Limited have entered into an agreement to restructure certain aircraft lease obligations of SpiceJet totalling USD 137.68 million, which, upon settlement/exemption, will be adjusted to USD 97.51 million,” the company said in its filing to the stock exchanges.
It is proposed to restructure part of the outstanding lease arrears ($137.68 million), which were adjusted to $97.51 million, through the issuance/purchase of securities under the agreement.
The leasing firm, which has the largest exposure among other lessors of around eight Boeing 737s, has priced the airline’s shares at Rs 100 per share, which is a significant premium to the airline’s current share price, which closed at Rs 61.46 on the Bombay Stock Exchange, down 2.4 per cent, on Friday.
In addition, Carlyle will also consider buying a stake in SpiceXpress & Logistics, the company’s freight division, through mandatorily convertible debentures.Read also: Vedanta among 6 stocks to trade ex-dividend tomorrow; last date to buy to qualify
“The Transaction will partially restructure the outstanding arrears with the Lessors, thereby deleveraging the Company’s balance sheet,” the document added.
The airline is conducting roadshows to raise around Rs 2,500 crore by selling shares to institutional investors. If the share sale is successful, it will dilute promoter Ajay Singh’s stake by over 10%.
It has appointed ICICI Securities JM Financial and DAM Capital to manage the fundraising process, while the airline had earlier announced plans to raise around Rs 2,250 crore from a group of 64 investors.
Jet Spice The airline has been facing a number of problems due to its inability to raise fresh capital. The airline has defaulted on lease payments, forcing aircraft lessors to approach the insolvency courts against the airline. The airline’s outstanding engineering and lessor liabilities have risen to Rs 3,700 crore, while legal dues stand at Rs 650 crore.
Spicejet shares have gained 65% in the last one year, while they have risen 5.75% in the current calendar year.
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