Vertical Aerospace has agreed a comprehensive financing package of up to $850m, combining equity, debt and credit facilities to fund the development, certification and initial production of its electric aircraft.
The UK-based company said it has already raised $50m in common equity and expects a further $30m in the coming weeks, contributing to around $160m of near-term working capital when combined with existing cash, tax relief and government grants.
On top of the equity raise, the broader package provides access to up to $800m in additional capital through a range of instruments extending into 2027 and beyond.
The financing is structured across four main components. These include a $50m equity issuance already completed, up to $50m in new convertible secured notes from Mudrick Capital, up to $250m in series A convertible preferred equity from Yorkville Advisors, and an equity line of credit of up to $500m over 36 months.
As part of the agreement, existing convertible notes held by Mudrick Capital will be extended from December 2028 to December 2030, ensuring debt maturity falls after the planned certification and initial deliveries of the company’s Valo aircraft in 2028.
The preferred equity carries a 0% dividend and can be issued in tranches over 24 months, while the equity line of credit allows the company to raise capital progressively as it meets development milestones.
Vertical said the structure is designed to provide “flexibility” and allow it to access capital “when and how it chooses” while promoting capital efficiency.
Proceeds will be used to support key milestones including piloted transition flight, public flight demonstrations, development of a hybrid-electric demonstrator, expansion of its Vertical Energy Centre, construction of its manufacturing facility and production of its first full-scale certification aircraft.
The company said the package provides a “capitalised runway” to deliver its strategic roadmap over the next 12 months and beyond, with definitive agreements expected to be completed by April 19, 2026.
Vertical has around 1,500 pre-orders of Valo, with customers across four continents, including American Airlines, Avolon, Bristow, GOL and Japan Airlines.