SpiceJet Soars on Carlyle Debt Conversion

9 Sep 2024 , 10:49 AM

SpiceJet shares climbed 5.5% on the BSE on Monday, reaching a high of Rs 64.86, following the company’s announcement of a restructuring plan to convert Carlyle Aviation Management’s $137.68 million debt into equity, which will be adjusted to $97.51 million upon settlement.

“Please note that SpiceJet Limited and Carlyle Aviation Management Limited have entered into a term sheet to restructure certain aircraft lease obligations of SpiceJet aggregating to USD 137.68 million, which upon settlement/waivers will be adjusted to USD 97.51 million,” according to the business’s filing with the exchanges.

A portion of the outstanding lease arrears ($137.68 million), which has been amended to $97.51 million, are proposed to be restructured through the issuance/purchase of securities under the agreement.

The leasing firm, which has the most exposure among other lessors to around 8 Boeing 737, has valued the airline’s share at Rs 100 per equity share. This is a considerable premium over the airline’s current share price, which closed at Rs 61.46 on the Bombay Stock Exchange, or 2.4% lower, on Friday.

Additionally, Carlyle will consider obtaining a stake in SpiceXpress & Logistics, the company’s cargo business, through compulsorily convertible debentures.

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