SpiceJet to seek shareholders’ nod on warrants issue

New Delhi: The Delhi-based low cost airline SpiceJet will seek shareholders’ nod next month for the financing arrangement recently concluded with investors such as W.L. Ross to infuse more funds into the company. The company has convened an extraordinary general meeting on September 12 for the purpose.
The overall financing arrangement included resetting the terms of the $80-million foreign currency convertible bonds (FCCBs) issued in 2005 in the wake of change in ownership of these bonds. Besides resetting the conversion price, the nature of the investment instrument is also proposed to be changed from a secured one to an unsecured one, thereby allowing for the release of entire cash collateral in favour of the company.
The financing arrangement also involved issue of 1,53,60,715 warrants to two Mauritius based Goldman Sachs affiliates – GS Investment Partners (Mauritius) I Limited and/or GS Investment Partners Mauritius II Limited – on a preferential basis.
The warrants would give the entities an option to be allotted an equivalent number of equity shares of face value of Rs 10 each at Rs 39.45 per equity share (including a premium of Rs 29.45 per equity share) any time before 18 months from the date of issue of warrants. If the option to convert is exercised, SpiceJet could in aggregate get up to Rs 60.59 crore from these Mauritius-based entities.
31/08/08 K.R.Srivats/Ashwini Phadnis/Business Line

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Categories: Foreign Aug 2008, SpiceJet Aug 2008