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Carlyle Aviation to convert lease rental dues from SpiceJet into equity

Economic Times  

Carlyle Aviation Partners, a lessor to low-cost airline SpiceJet, would convert its outstanding lease rental into equity. The leasing firm owned by global private equity major, the Carlyle Group, has the largest exposure among the lessors of 14 Boeing 737 aircraft. Carlyle will take an equity stake of around 5% in the company. SpiceJet will also issue Convertible Debentures in its newly-formed logistics arm SpiceXpress, which Carlyle can convert to equity at a future date. As part of this exercise, SpiceJet has valued its freighter business at USD 1 Billion. Last year, the airline received the shareholders' nod for transferring its cargo and logistics services business to a subsidiary, SpiceXpress, on a slump sale basis, with the business valued at INR 2,555.77 crore. The company is awaiting a nod from lenders. Currently, SpiceJet's liability due to lease rentals is around INR 8,500 crore. Simultaneously, SpiceJet has agreed into separate settlements with three of its major lessors — CDB Aviation and Avolon, BOC Aviation and Goshawk.