Log-in here if you’re already a subscriber
Months of charged negotiations over the future of Vertical Aerospace reached a conclusion on Nov. 25 when the U.K.-based electric vertical take-off and landing developer announced a deal that will cede majority ownership of the company to its primary creditor, Jason Mudrick of Mudrick Capital Management.
As previewed in earlier reporting by The Air Current, Mudrick Capital will commit $50 million in fresh funding to the company, including $25 million up front and a $25 million backstop for future fundraising, sufficient to carry the company through the end of 2025. It will also trim $130 million in debt from Vertical’s balance sheet by converting half of its outstanding convertible notes to equity at $2.75 per share, while fixing the conversion rate for the remaining notes at $3.50 per share and extending their maturity date to December 2028.
Related: Mudrick Capital sweetens its deal for eVTOL developer Vertical Aerospace
According to Vertical CEO Stuart Simpson, by deleveraging the company’s balance sheet and providing certainty around the remaining convertible notes, the agreement positions Vertical to raise the rest of the money it will need to complete certification of its VX4 eVTOL, which is now targeted for 2028.
“It means that I can go and talk to potential equity investors, and explain to them: ‘Listen, you give me x million, this is how much of the company you get on a fully diluted basis.’ And I just couldn’t do that before,” Simpson said in an interview with TAC on Monday.
Subscribe to continue reading...Subscribe to Continue Reading
Our award-winning aerospace reporting combines the highest standards of journalism with the level of technical detail and rigor expected by a sophisticated industry audience.
- Exclusive reporting and analysis on the strategy and technology of flying
- Full access to our archive of industry intelligence
- We respect your time; everything we publish earns your attention
