Shares of Vertical Aerospace Ltd. (NYSE:EVTL) climbed about 16% on Monday after the company revealed plans for a financing package that could total up to $800 million.
The company said on March 30, 2026, that it had reached an agreement in principle for the funding arrangement, which includes three financing components provided by two investment firms.
Mudrick Capital Management, L.P. has committed to supply up to $50 million through senior secured convertible notes. The notes will be issued in monthly installments of as much as $5 million over a 12-month period and will mature in December 2030, extending the maturity from the company’s prior debt agreement dated December 16, 2021.
Yorkville Advisors Global, LP will also provide a convertible preferred equity facility worth up to $250 million over two years. These preferred shares will be issued in tranches of up to $25 million at 96% of their face value, with a minimum interval of 60 days between issuances. In the event of liquidation, the preferred shares rank above common equity but remain subordinate to the convertible notes.
In addition, Yorkville will extend an equity line of credit allowing Vertical Aerospace to sell up to $500 million of ordinary shares over a three-year period at 97% of the same-day volume-weighted average price.
To access funding under the Mudrick facility, Vertical Aerospace must maintain at least $50 million in liquidity and demonstrate solvency for the four months following each issuance. The preferred shares may also accrue payment-in-kind interest at an annual rate of 18% if certain trigger conditions are met.
The company said the proceeds are expected to support research and development for its aircraft programs, expand testing and manufacturing capacity, advance certification efforts, and fund general working capital and corporate needs.