Carlyle: Lessor to buy nearly 6% in SpiceJet at 55% premium

NEW DELHI: Budget carrier SpiceJet has sought shareholders’ nod to issue 5.9% stake to Carlyle Aviation Partners at Rs 48 per share – against Wednesday closing price of Rs 31 on the BSE.

This February, Carlyle, which is SpiceJet’s biggest aircraft lessor, had decided to convert part of its dues to the airline into equity shares and compulsorily convertible debentures (CCDs). It plans to convert dues of over $8 million into equity in the airline.
The biggest of the nine entities is Carlyle Aviation Partners, which is the aircraft financing unit of global private equity giant Carlyle Group. The others include Citrine Aircraft Leasing and Fly Aircraft Holdings.The airline has sought shareholders’ approval to re-appoint Ajay Singh as MD with a monthly pay of Rs 60 lakh, variable pay at 2.5% of annual net profit and other benefits. SpiceJet also proposes to raise funds through QIP.

SpiceJet has significant dues to stakeholders and has been ordered by the Supreme Court to pay Rs 380 crore to former promoter Kalanithi Maran. Its operations have been shrinking in recent months. Last month, Singh had said he will infuse Rs 500 crore into the airline.