Carlyle Aviation, one of the biggest lessors of low-cost carrier SpiceJet, has agreed to take a 5% equity stake in the airline in lieu of its outstanding lease rental dues. Sources said SpiceJet will also issue convertible debentures in its logistics arm, SpiceXpress, which Carlyle can convert into equity in future.
The development will considerably deleverage SpiceJet’s balance sheet to access fresh funding. The company’s board will meet on Friday to discuss issuing equity shares to Carlyle and consider options for raising capital. The board will also take up for consideration the financial results for the October-December quarter. Earlier, the board meeting was scheduled for February 14, but was postponed to February 24.
“The board will discuss and consider, inter alia, issuance of equity shares on preferential basis consequent upon conversion of outstanding liabilities into equity shares of the company, subject to applicable regulatory approvals,” SpiceJet had said in a regulatory filing. The board will also discuss and consider options to raise fresh capital through issue of eligible securities to qualified institutional buyers, subject to applicable regulatory approvals, it had added.
On Thursday, SpiceJet’s shares fell to a low of 1.87% intraday before closing 0.42% lower than its Wednesday’s closing.
Earlier in the month, the Supreme Court asked SpiceJet to invoke a bank guarantee to pay ex-promoter Kalanithi Maran `270 crore towards dues from the arbitral award of `572 crore. The airline said it had already paid `308 crore.
Though SpiceJet has among the best passenger load factors among its peers in India, it is struggling to hold on to its market share. At the end of January, the airline had a share of 7.3%, down from its full year market share of 8.7% recorded in 2022, according to DGCA data.