Low-cost carrier SpiceJet has received a $100 million funding from WL Ross & Co LLC, a global private equity investor, and certain other investors.
The completion of the transaction will make available up to $100 million to SpiceJet. This is higher than the $80 million proposed earlier and has been made possible partly through the participation of Istithmar World Capital and SpiceJet Director 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, which are 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.
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."
SpiceJet is India's second largest domestic budget airline with a 10 per cent market share. The company operates 94 flights daily with a fleet of 15 aircraft. |
