TLDR
- Vertical Aerospace closed its full $850M financing package on April 20, 2026, including equity and debt facilities.
- The deal extends its convertible notes to December 2030 and adds up to $50M in new notes via Mudrick Capital.
- Yorkville Advisors is providing a $250M preferred equity facility and a $500M equity line of credit.
- The company now has about $160M in near-term working capital, with $30M already drawn down.
- EVTL stock fell 10.48% on the news, likely reflecting dilution concerns from the preferred equity and note structures.
Vertical Aerospace (EVTL) closed its previously announced $850 million financing package on April 20, 2026. The stock dropped 10.48% on the day.
The deal was first announced on March 30 as an $800 million agreement. A completed $50 million equity raise brought the total to $850 million.
The package has three main parts. First, existing convertible notes held by Mudrick Capital have been extended to December 15, 2030. Mudrick can also receive up to $50 million in new notes, convertible at $3.50 per share.
Second, Yorkville Advisors is providing a $250 million Series A convertible preferred equity facility. The first tranche of $24 million has already been funded at $960 per share. This facility runs over 24 months.
Third, Yorkville is also providing a $500 million equity line of credit over 36 months. Together, these instruments give Vertical access to staged funding over the next two to three years.
The company now has approximately $160 million in working capital available in the near term. It has drawn down an initial $30 million under the new facilities.
Dilution Risk Weighs on Stock
The preferred equity structure places Yorkville ahead of common shareholders in a downside scenario. The preferred stock also pays dividends in kind, meaning more stock is issued rather than cash paid out.
That combination — dilutive notes, preferred equity with conversion rights, and a large equity line — appears to be behind the sharp drop in the stock price.
The company has a current market cap of around $272 million. Average daily trading volume is just under 2 million.
Roadmap to 2028 Certification
CEO Stuart Simpson said the financing lets the company build on operational progress, including a recent full-scale piloted two-way transition flight.
Vertical plans to use the funds to reach Critical Design Review for its Valo aircraft, run public flight demonstrations, and advance its manufacturing facility build-out.
The Valo is designed to carry passengers up to 100 miles at speeds up to 150 mph with zero operating emissions.
Vertical says it holds roughly 1,500 pre-orders from customers including American Airlines, Avolon, Bristow, GOL, and Japan Airlines.
The company is targeting certification by 2028.
The initial $24 million preferred equity tranche from Yorkville was funded on April 20, the same day the full package officially closed.
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