SpiceJet Limited and WL Ross & Co., 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 up to US$100 million available to SpiceJet. This is higher than the US$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.
