Mudrick backs Vertical Aerospace (NYSE: EVTL) with $35M note deal, new terms
Mudrick Capital Management and related funds reported updated ownership in Vertical Aerospace (EVTL), holding 105.4M shares, about 55% of the class including conversion/warrants. Under an April 20, 2026 note agreement, EVTL can issue up to $50M additional convertible notes; $15M was bought and Mudrick agreed to buy the remaining $35M on amended terms. The notes’ conversion price changes from $3.50 to $1.30 per share, alongside Series A preferred financing and governance terms.
How this was made
The 30-second read
Why it matters
EVTL’s capital structure is being re-priced via a conversion price reduction and additional convertible preferred issuance, alongside governance changes and a scheduled shareholder vote.
Market read
This is a concrete financing and governance update for EVTL, with a major conversion price reset and a defined timeline to a shareholder vote.
What to watch
Key details like definitive agreement conditions, use of proceeds, and how the preferred issuance affects liquidation preferences are not provided, which can materially change dilution and downside risk.
Background
The filing describes Mudrick Capital’s updated beneficial ownership and amended terms tied to Vertical Aerospace’s convertible note program and related equity financings.
Ticker impact
Mudrick agreed in principle to buy the remaining $35M of Vertical Aerospace convertible notes, with the conversion price cut from $3.50 to $1.30.
Near-term volatility is likely around financing execution and the September 15, 2026 shareholder vote; direction depends on dilution expectations versus liquidity relief.
The article discloses a concrete capital-structure change (conversion price reset) plus additional preferred issuance and board/consent rights, which can reprice equity and warrants even without an explicit EVTL price move.
Market effects
Signals continued distressed/structured financing dynamics in aerospace/space-adjacent capital markets, where convertible terms can reset quickly.
Limited, primarily affects US small-cap risk appetite and high-yield convertible sentiment.
Low; the transaction is company-specific and not described as industry-wide.
Counterpoint
The conversion price reset could be viewed as a negotiated path to fund operations without immediate cash burn, potentially reducing near-term default risk.
Key entities
- issuerVertical Aerospace Ltd.
Subject of the amended convertible note terms, additional convertible issuance, and shareholder governance changes.
- investorMudrick Capital Management, L.P.
Backs EVTL with a $35M incremental note purchase on amended terms and receives board/consent rights.
- investorYorkville Advisors Global, LP
Agreed to receive $25M of Series A convertible preferred shares as part of the amended financing package.
