SpiceJet stock climbs 5% on $89.5 million Carlyle settlement; key details

SpiceJet Ltd shares climbed 5 per cent in Thursday’s trade after the airline announced that it had reached a settlement with Carlyle Aviation Partners, unlocking a liquidity boost of $89.5 million.

On Thursday, SpiceJet stock rose as much as 5.4 per cent to hit the day’s low of Rs 34.85 apiece on the BSE, over its previous close of Rs 33.06. At 11:29 am, the company shares were up 1.91 per cent at Rs 33.69.

In a filing to the BSE, SpiceJet said the agreement would provide $79.6 million in cash maintenance reserves for future aircraft and engine upkeep, along with $9.9 million in credits to offset lease obligations

The company added that the settlement involves restructuring certain lease obligations worth $121.18 million, combined with the issuance of equity shares aggregating to $50 million. A mechanism has also been built into the deal, allowing excess proceeds from the sale of these shares, above $50 million, to be applied towards future lease obligations.

Ajay Singh, Chairman and Managing Director of SpiceJet, said, “This agreement marks a significant milestone in our ongoing restructuring and un-grounding efforts. The support extended by Carlyle demonstrates their confidence in SpiceJet’s long-term prospects. This transaction meaningfully reduces our liabilities, strengthens our balance sheet, and positions us well for sustainable growth.”

The airline noted that its promoter, or a designated assignee, will have the option to purchase the equity shares issued to Carlyle upon expiry of the statutory lock-in and any additional agreed lock-in periods.

SpiceJet said the settlement underscores its focus on strategic restructuring, cost efficiency, and long-term partnerships as it charts its next phase of growth

On the BSE, a total of 100.40 lakh shares of the airline changed hands, translating into a turnover of Rs 34.10 crore. At current levels, the stock commands a price-to-earnings (PE) multiple of 82.17 and a price-to-book (PB) ratio of 112.30. The stock boasts a return on equity (ROE) of 137.84 per cent.