Surf Air Mobility has entered into multiple agreements to restructure existing debt and secure new financing. The company exchanged a convertible note with a ~$47 million balance for two new notes and also secured a new $21.6 million debenture facility to finance aircraft purchases and for working capital.
Key Details
- Debt Restructuring: An existing Senior Secured Convertible Note with an outstanding balance of $46.9 million was exchanged for two new senior secured notes: a ~$16.9 million convertible note due 2027 and a $30.0 million term note due 2028. The new convertible note has a conversion price of approximately $1.116 per share.
- Asset-Backed Financing: The company, through its subsidiaries, secured $21.6 million in Senior Secured Debentures. An initial tranche of ~$7.0 million was issued on June 30, 2026, to finance the purchase of Cessna Grand Caravan aircraft. The debentures carry a 13.5% annual interest rate and mature on June 30, 2031.
- Associated Terms: In connection with the transactions, Surf Air reduced the exercise price on existing warrants from $3.32 to $1.12 per share and issued new warrants to purchase over 1.3 million additional shares related to the debenture financing.