SpiceJet Ltd.,
PRESS RELEASE
SpiceJet Limited (“SpiceJet” or “Company”) and WL Ross & Co. LLC (“WL Ross”), a global private equity investor, announced the execution of definitive documents for a funding transaction with WL Ross and others. The completion of the transaction will make available up to Rs. 421 crores (USD $100 million) to SpiceJet. This is higher than the Rs. 345 crore (USD $80 million) proposed earlier and has been made possible partly through the participation of Istithmar World Capital and SpiceJet Director, Mr. Ajay Singh.
The infusion of capital will take place in two successive tranches. Completion of the funding of the first tranche is subject to certain conditions precedent, which are expected to be fulfilled in the next two weeks. The remainder of the funding will be received after shareholder approval which the Company will seek shortly. As part of the transaction, Goldman Sachs has agreed to subscribe for equity warrants in the Company under the preferential issue guidelines of SEBI and subject to requisite approvals.
Mr. Bhulo Kansagra and Mr. Singh, Board Members of SpiceJet, said, “We are delighted that such a large amount of funding has been made available to SpiceJet at a challenging time for the aviation industry in
Mr. Wilbur L. Ross Jr., Chairman & CEO, WL Ross & Co. LLC said, “This financing is intended to give SpiceJet the staying power to get through the industry consolidation that is underway. We also gain encouragement that oil prices have been abating and that the government has appointed a Committee under the Chairmanship of the Cabinet Secretary to recommend measures to stabilize the industry.”
Mr. Ranjeet Nabha, Managing Director & CEO of WL Ross India said, “We have worked closely with the promoter group and Istithmar World Capital to provide SpiceJet with a strong capital base that will enable it to emerge from the current down turn and be recognized and admired, not only in
Mr. Ross and Mr. Nabha are expected to join the Board of Directors of SpiceJet.
Background
SpiceJet is
WL Ross, a part of Invesco Ltd. since October 2006, manages assets for institutional investors in the
Istithmar World Capital, the private equity and alternative investment arm of Istithmar World, is headquartered in