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Surf Air Mobility Announces Debt Financing Transactions to Strengthen Balance Sheet and Reduce Future Shareholder Dilution
LOS ANGELES, July 01, 2026--Surf Air Mobility Inc. (NYSE: SRFM) ("Surf Air Mobility" or the "Company") today announced two debt financing transactions designed to strengthen its balance sheet and reduce future shareholder dilution. Surf Air Mobility has entered into a definitive agreement to refinance its existing senior secured convertible note, which is expected to reduce the remaining principal – reduced from the original principal amount of $74 million to $47 million – by an additional 64% a
About this update from Surf Air Mobility Inc.
New non-convertible $21.6 million asset-backed loan will provide incremental working capital. Remaining $47 million senior secured convertible note will be exchanged for two new instruments. New $17 million convertible note will reduce monthly payments by up to 50%. New $30 million non-convertible term note will be non-amortizing and non-interest bearing until January 2027. Transactions are structured to significantly increase balance sheet liquidity while meaningfully reducing shareholder dilution. LOS ANGELES, July 01, 2026--(BUSINESS WIRE)--Surf Air Mobility Inc. (NYSE: SRFM) ("Surf Air Mobility" or the "Company") today announced two debt financing transactions designed to strengthen its balance sheet and reduce future shareholder dilution. Surf Air Mobility has entered into a definitive agreement to refinance its existing senior secured convertible note, which is expected to reduce the remaining principal – reduced from the original principal amount of $74 million to $47 million – by an additional 64% and monthly payments by up to 50%. Separately, certain subsidiaries of Surf Air Mobility have received the first disbursement of a new non-convertible $21.6 million asset-backed loan secured by new and existing aircraft. Together, the transactions are expected to significantly lower the Company's near-term cash obligations, extend debt maturities and improve balance sheet liquidity. Oliver Reeves, Chief Financial Officer of Surf Air Mobility, said: "With these two important transactions, we are positioning ourselves to shift the majority of our convertible debt to term debt to minimize shareholder dilution. Upon completion, we expect significantly lower amortization, less dilution, and far greater flexibility around our liquidity going forward." Over the last week, Surf Air Mobility announced the achievement of several key milestones, including its first enterprise software customer contract with Wheels Up, the expansion of its partnership with Palantir to accelerate the commercialization of SurfOS, and the demonstration of electric flight in Hawaii with BETA Technologies. Deanna White, Chief Executive Officer of Surf Air Mobility, said: "Stability in our capital structure will allow us to focus on both continuing to improve our operations and the commercialization of SurfOS. Our recent business development announcements with Palantir, Wheels Up, and BET...
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