Trans Maldivian Airways (TMW, Malé) - the world’s largest seaplane operator - has finalised a debt restructuring deal that has seen global investment firm Carlyle Group Inc. take over a majority stake from Bain Capital, the companies announced in a joint statement.
No financial details were revealed about the deal led by Carlyle’s Global Credit platform, which has USD59 billion in assets under management.
Reuters, quoting anonymous sources in the know, said Carlyle took majority ownership of TMA from Bain in exchange for agreeing to restructure the airline's outstanding debt of about USD300 million.
Under the deal, funds affiliated with Carlyle, alongside hedge fund managers King Street Capital Management and global institutional investment management firm Davidson Kempner Capital Management LP, have now become TMA’s majority owner. Bain Capital and Tempus Group, a Chinese tourism-focused conglomerate, have retained minority stakes in the airline, according to Reuter’s sources.
Bain Capital had owned most of TMA since 2017, when it paid over USD500 million in a leveraged buyout deal, together with Tempus, to acquire the airline from Blackstone Group Inc.
The new restructuring was aimed at returning Trans Maldivian to a solid financial footing and provide a strong foundation for its strategic business growth, the companies said. TMA began negotiating debt relief with Carlyle and its other creditors after it was forced to ground most of its fleet of 56 seaplanes last year when COVID-19 brought tourism in the Maldives to a standstill. The airline's fleet comprises fifty DHC-6-300s, three DHC-6-400s, two DHC-6-200s, and one DHC-6-100, according to the ch-aviation fleets module.
Carlyle said TMA’s current management team would remain the same. A newly reconstituted board would include Lars Erik Nielsen, one of TMA’s founders, and representatives from the new owners, and other industry experts.
Commented Carlyle Global Credit Managing Director, Christian Schmitz: “TMA is an operationally strong business with an experienced management team and clear competitive advantages. We are pleased to provide the strategic capital and expertise the company needs to return to growth. As vaccines continue to be rolled out globally, we expect travel to return to pre-pandemic levels in the Maldives, which remains one of most attractive vacation destinations in the world.”
The transaction marked the beginning of a new chapter for the airline, said TMA Chief Executive Officer, A.U.M. Fawzy. “We look forward to the support of our new owners as we ramp up business,” he added.
