Cash-strapped domestic carrier SpiceJet announced it has signed a term sheet with Carlyle Aviation Management to restructure part of its aircraft lease obligations amounting $137.68 million, SpiceJet said in an exchange filing.
Under the agreement, lessors may also acquire compulsorily convertible debentures from SpiceJet’s subsidiary, SpiceXpress & Logistics, amounting to $20 million. These debentures would have priority over all other existing and future equity or equity-linked securities of SpiceXpress, according to the filing.
“Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SpiceJet Limited and Carlyle Aviation Management Limited have entered into a term sheet to restructure certain aircraft lease obligations of SpiceJet aggregating to $137.68 million (as of June 30, 2024).
“Which upon settlement/waivers will be adjusted to $97.51 million (subject to further adjustments, if any, in the case of certain events to be agreed in the definitive agreement), owed to various lessor entities managed by CAML or its affiliates’,” the airline said.
It also said that “part of the outstanding lease arrears due to Lessors, i.e. aggregating to $137.68 million (as of June 30, 2024), as adjusted to $97.51 million (subject to further adjustments, if any, in the case of certain events to be agreed in the definitive agreement), are proposed to be restructured through issuance/purchase of securities, subject to compliance with applicable Indian law, approval of shareholders and execution of definitive agreement between the parties”.
Such several equity shares of the company for Rs 100 per share (about 39% premium on Friday’s closing price), subject to an aggregate amount of not more than $30 million (“equity shares”), the airline stated.
“The transaction will partially restructure the outstanding arrears due to the lessors, thereby deleveraging the company’s balance sheet,” it added.
The proposed restructuring does not contemplate any direct benefits to the promoter/promoter group, it added.
From: financialexpress
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