Vertical Aerospace Signs Financing Agreement Totaling $850M
Vertical Aerospace announced the signing of an agreement in principle as part of a financing package totaling up to $850M. The new comprehensive financing package provides Vertical with access to a capitalized runway to build upon the Company's significant operational progress and support achievement of its strategic milestones over the next 12 months and beyond. These include completing piloted transition flight, public flight demonstrations of the current prototype, progressing its hybrid-electric demonstrator, expanding the Vertical Energy Center, advancing construction of its aircraft manufacturing facility, and beginning production of the first full-scale Valo certification aircraft. The Company is now positioned to have approximately $160M of working capital in the near term, combining the $50M of equity capital raised today and $30M to be drawn under the facilities immediately on their execution with existing cash on hand and anticipated tax relief and government grants.The comprehensive financing package is structured to provide Vertical with access to capital across multiple instruments. Mudrick Capital Management and Yorkville Advisors Global, partnered with the Company to assemble the financing package. It comprises four components: Equity Capital Issuance - $50M. The Company closed the new issuance of ordinary shares, raising $50M of immediate working capital. Convertible Secured Notes - Maturity Extension and Up to $50M of New Notes. Mudrick Capital has agreed as part of the agreement in principle to amend the Company's existing 10.00% / 12.00% PIK Convertible Secured Notes to extend their maturity from December 2028 to December 2030 - ensuring debt matures after planned certification in 2028. Mudrick Capital also agreed in principle to provide a facility under which it would purchase up to $50M of new additional convertible secured notes subject to certain conditions, issuable in tranches over 12 months, and on the same terms as the existing notes. Series A Convertible Preferred Equity - Up to $250M. Yorkville has agreed in principle to purchase up to $250M of Series A Convertible Preferred Shares of the Company, issuable at the Company's option in tranches over 24 months, subject to certain conditions. The preferred shares are to carry a 0% dividend, and convert at a share price determined at individual tranche issuance and conversion dates, in the ordinary course. Equity Line of Credit - Up to $500M. Yorkville also has agreed in principle to provide an equity line of credit of up to $500M over 36 months, with the ability for the Company to draw on it from time to time subject to customary conditions. This structure would enable Vertical to raise common equity at progressively higher prices as it achieves key milestones, capturing the full benefit of valuation appreciation for existing shareholders. Pursuant to the agreement in principle, the parties have committed to use best efforts to execute the definitive documents by April 19, 2026, at which point the full suite of capital facilities would become available to the Company.
