Global aerospace and technology company Vertical Aerospace said it has executed and closed on the remaining components of its comprehensive financing package of up to $850 million.
Originally announced on March 30 as an $800 million agreement along with a $50 million equity capital raise, the new announcement positions Vertical to deliver on the technical and operational milestones of its “strategic roadmap.” The funding will also allow the company to maintain flexibility to access other capital sources outside of the package in the future, the company said.
“The close of this comprehensive financing package allows us to build on our strong operational momentum, most recently demonstrated with the successful achievement of full-scale piloted two-way transition flight, a historic technical milestone that validates our product design and represents a major de-risk moment for Vertical,” Stuart Simpson, Chief Executive Officer of Vertical Aerospace, said. “With this funding in place, Vertical is well positioned to continue executing against our roadmap to 2028 certification.”
In connection with the closing of the facilities, the company has initially drawn down an aggregate of $30 million.
The funding consisted of the maturity extension of existing convertible secured notes from Mudrick Capital and up to $50 million of new additional notes; up to $250 million of Series A Convertible Preferred Equity facility provided by Yorkville Advisors Global; and an equity line of credit of up to $500 million over a term of 36 months provided by Yorkville.
“We are pleased to support Vertical Aerospace as it advances toward certification and commercialization,” Mark Angelo, Founder and President of Yorkville Advisors Global, LP, said. “The Company has demonstrated strong execution against all valuation metrics, and we are confident in Vertical’s well-defined strategy and long-term value potential. Our funding commitment reflects our conviction in Vertical’s ability to deliver on the next phases of its development.”