Vertical Aerospace Ltd. (NYSE:EVTL) saw its shares climb 16% on Monday after disclosing a financing arrangement that could provide as much as $800 million in aggregate capital. The company said on March 30, 2026 that it had reached an agreement in principle for a multi-part funding package involving two investment firms and three distinct financing instruments.
The first component is a commitment from Mudrick Capital Management, L.P. to supply up to $50 million in senior secured convertible notes. Those notes will be issued monthly in increments of up to $5 million over a 12-month period and will carry a maturity date in December 2030. Vertical said that the December 2030 maturity under this new agreement extends the prior maturity referenced in an existing indenture dated December 16, 2021.
Yorkville Advisors Global, LP will provide the other two elements of the package. The firm will furnish a convertible preferred equity facility of up to $250 million to be made available over two years. Preferred shares under that facility will be issued in tranches of up to $25 million at 96% of face value, with at least 60 days required between issuances. The company noted that those preferred shares will rank senior to common stock for purposes of liquidation but will remain junior to the Mudrick convertible notes.
In addition, Yorkville will supply an equity line of credit for ordinary shares valued at up to $500 million over three years. Issuances under that equity line will be priced at 97% of the same-day volume weighted average price.
Vertical specified conditions tied to the Mudrick facility: each incremental issuance requires the company to maintain at least $50 million in liquidity and to demonstrate solvency for a four-month period following issuance. For the preferred equity, the company disclosed that the preferred shares will accrue payment-in-kind interest at an annual rate of 18% if certain trigger events occur.
Vertical Aerospace stated that proceeds from the combined financing will be used to fund research and development related to aircraft development, to expand testing and manufacturing capabilities, to support certification processes, and to cover general working capital and corporate purposes.
Context for markets and operations
The package brings together short- and longer-term instruments with differing seniority and pricing mechanics. The convertible notes, preferred equity tranches and equity line together create a layered capital structure that the company is positioning to apply across R&D, test and manufacturing execution, certification activities and corporate liquidity needs.
What the company disclosed
- Financing announced March 30, 2026 totaling up to $800 million across three components.
- Mudrick to provide up to $50 million in senior secured convertible notes, issued monthly up to $5 million across 12 months, maturing December 2030.
- Yorkville to provide up to $250 million in convertible preferred equity over two years and up to $500 million in an equity line over three years, with specified pricing mechanics and issuance cadence.