SpiceJet has reached an agreement with Carlyle Aviation Partners, part of global private equity firm Carlyle Group, to convert a portion of its aircraft lease obligations into equity.
The deal restructures USD 137.68 million of SpiceJet’s lease liabilities, which will be reduced to USD 97.51 million after waivers and settlements. Carlyle is also considering acquiring a stake in SpiceXpress & Logistics Private Limited, the cargo arm of SpiceJet, through compulsorily convertible debentures.
Carlyle, one of SpiceJet’s largest lessors with exposure to eight Boeing 737 aircraft, has valued the airline’s shares at Rs 100 per equity share, a significant premium compared to the current market price of Rs 61.46. While the airline did not disclose the exact stake Carlyle will receive, this marks the second time the lessor has opted for a debt-to-equity swap with SpiceJet. Last year, Carlyle converted USD 28 million into a 5.9 per cent stake in the airline.
SpiceJet, facing severe financial pressure, is conducting roadshows to raise around Rs 2,500 crore through a share sale to institutional investors.
The airline had earlier aimed to raise Rs 2,250 crore but fell short, securing only Rs 1,060 crore after one key investor backed out. The latest fundraising effort, if successful, would dilute the ownership stake of promoter Ajay Singh by over 10 per cent.
The airline has struggled to stay afloat, with unpaid liabilities to lessors and engineering partners amounting to Rs 3,700 crore, alongside statutory dues of Rs 650 crore. Several aircraft lessors have taken legal action to declare the airline bankrupt, citing defaults in lease payments.
SpiceJet’s operational fleet has dwindled to fewer than 20 planes, with 36 grounded due to a shortage of engines and spare parts, contributing to its market share falling below 4 per cent.
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