Vertical Aerospace has today (March 30) announced the signing of an agreement in principle as part of a financing package totaling up to USD 850 million. The company’s piloted, electric vertical take-off and landing (eVTOL) aircraft is designed to fly up to 100 miles at speeds of up to 150 mph. Vertical is also developing a hybrid-electric variant.
Mudrick Capital Management, L.P. and Yorkville Advisors Global, LP partnered with Vertical to assemble the financing package. It comprises four components:
- Equity Capital Issuance – The company today closed the new issuance of ordinary shares, raising USD 50 million of immediate working capital.
- Convertible Secured 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 USD 50 million 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 – Yorkville has agreed in principle to purchase up to USD 250 million of Series A Convertible Preferred Shares of Vertical, 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 – Yorkville has also agreed in principle to provide an equity line of credit of up to USD 500 million over 36 months, with the ability for Vertical 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.
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 Vertical.
Jason Mudrick, Chief Investment Officer, Mudrick Capital Management, said the funding would help Vertical achieve certification and enter commercial service.
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