SpiceJet confirms debt-to-equity swap with lessor Carlyle Aviation

SpiceJet finalized a deal with its lessors, including Carlyle Aviation Partners, to settle its debts during a board meeting on February 27, 2023.

The Indian low-cost carrier will undertake a debt-to-equity swap with Carlyle Aviation Partner and, as part of its debt restructuring with the United States (US)-based leasing company, will issue equity shares. The shares will be issued on a preferential basis to Carlyle Aviation Partners “consequent upon conversion of their existing lease liabilities equivalent to an amount not exceeding $29.5 million at a price”, or RS 48 ($0.58) per share, according to a filing on BSE, formerly known as the Bombay Stock Exchange, a stock exchange based in Mumbai, India.

The price “may be determined in accordance with extant preferential issue guidelines, whichever is higher, in accordance with the relevant provisions of applicable laws and subject to the approval of the shareholders of the Company and receipt of applicable regulatory approvals, as may be required,” continued the filing.

Furthermore, SpiceJet will also exchange its current lease liabilities for a sum that does not exceed $65.5 million into Compulsorily Convertible Debentures (CCD) in its subsidiary, SpiceXpress and Logistics Private Limited.

To settle its debts with Castlelake Aviation, another aircraft lessor, SpiceJet will purchase a 100% stake in AS Air Lease 41 Limited, a company registered in Ireland and the owner of two Boeing 737-800 aircraft operated by the Indian low-cost carrier. The aircraft bear Manufacturer Serial Numbers (MSN) 33555 and 33556, registered VT-SYI and VY-SYJ, respectively.

And finally, SpiceJet’s board of directors proposed to raise fresh capital of up to RS 25 billion ($301.7 million) through an issue of eligible securities to qualified institutional buyers. The capital raise is subject to applicable laws and regulatory approvals that may be required according to local regulations.