Carlyle Aviation Partners to convert SpiceJet dues into equity: Report

Low-cost carrier SpiceJet is likely to enter an agreement with Carlyle Aviation Partners to convert the outstanding lease rental into equity stake, according to a report in The Economic Times.

Carlyle Aviation Partners, owned by private equity major Carlyle Group, will take a 5 percent stake in SpiceJet along with convertible debentures in its cargo arm SpiceXpress that can be converted into equity at a future date, the report added.

This is part of the plan to turn lessors into investors.

The Board of Directors of SpiceJet will hold a meeting on February 24 and consider issuing equity shares on a preferential basis consequent to the conversion of outstanding liabilities into equity shares of the company, subject to applicable regulatory approvals.

The Board will also discuss and consider options for raising fresh capital through the issue of eligible securities to qualified institutional buyers, subject to applicable regulatory approvals.