Vertical Aerospace Agrees to Restructuring Terms

TL;DR

Vertical Aerospace inked a deal with its main lender Mudrick Capital and major shareholder Fitzpatrick to sort out finances.

AI Summary

On November 24, 2024, Vertical Aerospace Ltd. reached an agreement in principle with its majority shareholder, Stephen Fitzpatrick, and its primary creditor, Mudrick Capital Management L.P. This agreement, documented in a term sheet dated November 24, 2024, is a significant step for the company's financial restructuring.

Why It Matters

This agreement in principle is crucial for Vertical Aerospace's financial stability and future operations, potentially averting a more severe financial situation.

Risk Assessment

Risk Level: medium — While an agreement in principle is positive, the details and successful execution of the restructuring are still pending, introducing ongoing financial risk.

Key Players & Entities

• Vertical Aerospace Ltd. (company) — The company filing the report and entering into the agreement.
• Stephen Fitzpatrick (person) — Majority shareholder of Vertical Aerospace Ltd. and party to the agreement.
• Mudrick Capital Management L.P. (company) — Primary creditor and senior secured lender of Vertical Aerospace Ltd., and party to the agreement.
• November 24, 2024 (date) — Date of the Board resolution and the term sheet.

FAQ

Key Financial Figures

• $3.50 — for the Notes remaining outstanding of $3.50 per ordinary share; o the interest ra
• $130 m — ediately convert half, or approximately $130 million, of the principal amount of the C
• $2.75 — es held by it, at a conversion price of $2.75 per Company ordinary share; o Immedia
• $50 million — rick Capital is to commit to fund up to $50 million to the Company in its next funding roun
• $25 million — ”), subject to the following: o $25 million is to be funded by Mudrick Capital on a

Filing Documents

• tm2429432d1_6k.htm (6-K) — 31KB
• tm2429432d1_ex99-1.htm (EX-99.1) — 74KB
• tm2429432d1_ex99-2.htm (EX-99.2) — 19KB
• 0001104659-24-122277.txt ( ) — 125KB

Forward-Looking Statements

Forward-Looking Statements This Report of Foreign Private Issuer on Form 6-K (the “Form 6-K”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied including, without limitation, including, without limitation, statements regarding the consummation of the Agreement in Principle, including the entry into final transaction agreements and the satisfaction of all closing conditions, completion of the committed funding from Mudrick Capital and use of proceeds therefrom, the sufficiency of the proceeds from the committed funding to meet the Company’s more immediate capital expenditure requirements, the Company’s satisfaction of all closing conditions to the committed funding, our ability and plans to raise additional capital to fund our operations, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate,” “will,” “aim,” “potential,” “continue,” “is/are likely to” and similar statements of a future or forward-looking nature. These forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the important factors discussed under the caption “Risk Factors” in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on March 14, 2024, as such factors may be updated from time

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Vertical Aerospace Ltd. Date: November 25, 2024 By: /s/ Stuart Simpson Stuart Simpson Chief Executive Officer

View Full Filing

View this 6-K filing on SEC EDGAR