Weil is advising funds managed by Mudrick Capital Management, L.P. in a multi-pronged transaction with Vertical Aerospace Limited [NYSE: EVTL] that includes (a) a $50 million funding commitment by Mudrick Capital, which consists of $25 million in upfront funding and an additional $25 million backstop commitment that will be reduced by any amounts raised from third parties; (b) a balance sheet deleveraging through the conversion of approximately $130 million of convertible notes held by Mudrick Capital funds into equity; and (c) further support for Vertical’s future fundraising and strategic plans by fixing the conversion price for the remaining outstanding convertible notes and extending the maturity of the convertible notes by two years to December 2028.  

Vertical is a UK-headquartered engineering and aeronautical business developing electric vertical take-off and landing (eVOTL) aircraft. The transaction is expected to support Vertical’s Flightpath 2030 Strategy to establish itself as a leader in the eVTOL market, including the ongoing development and certification of its VX4 aircraft.

The transaction follows Weil’s representation of the Mudrick Capital funds in a $200 million senior secured convertible notes financing for Vertical’s business combination with Broadstone Acquisition Corp., a special purpose acquisition company, which closed in December 2021.

The cross-border Weil team is led by Capital Markets and Banking & Finance partner Nitin Konchady, and includes Restructuring partners Matt Barr, Neil Devaney and Jenny Davidson and counsel Jonathon New; Public Company Advisory Group partner Kaitlin Descovich and associate Julie Rong; and Securities Litigation partner Joshua Amsel.