Surf Air Mobility cuts debt principal by 64% to $47 million
Surf Air Mobility Inc. has refinanced its existing senior secured convertible note, reducing the principal from $74 million to $47 million through a new $16.9 million convertible note and a $30 million term note. This restructuring lowers monthly amortization by up to 50% and extends maturities. Additionally, subsidiaries secured a $21.6 million asset-backed loan, with the first tranche received on June 30, 2026, and a second $14 million tranche expected within 30 days.
*this image is generated using AI for illustrative purposes only.
Surf Air Mobility Inc. has entered into a definitive agreement to refinance its existing senior secured convertible note due 2028, reducing the principal from $74 million to $47 million. The transaction converts the outstanding principal of approximately $46.9 million into a new $16.9 million senior secured convertible note due 2027 and a new non-convertible $30 million senior secured term note due 2028. These moves are designed to significantly lower near-term cash obligations, extend debt maturities, and improve balance sheet liquidity.
Separately, certain subsidiaries received the first disbursement of a new non-convertible $21.6 million asset-backed loan secured by new and existing aircraft. The loan will fund in two tranches, with the first disbursement occurring on June 30, 2026. A second disbursement of $14 million is expected within 30 days, subject to conditions including a guaranty by Surf Air Mobility.
Convertible Refinancing Details
The new structure will reduce the existing convertible note principal by 64% and lower monthly amortization payments from up to $4 million to up to $2 million, a reduction of up to 50%. The company may make these payments in cash or stock, subject to certain conditions, providing additional flexibility to manage liquidity. Surf Air Mobility anticipates closing on the new notes on or about July 1, 2026, subject to certain closing conditions.
| Instrument Type | Principal Amount | Maturity Date |
|---|---|---|
| Senior Secured Convertible Note | $16.9 million | 2027 |
| Non-Convertible Term Note | $30 million | 2028 |
Asset-Backed Loan Structure
The $21.6 million asset-backed loan is secured by new and existing aircraft. The table below outlines the disbursement schedule for this facility.
| Tranche | Disbursement Amount | Status |
|---|---|---|
| First Disbursement | $7.6 million | Received June 30, 2026 |
| Second Disbursement | $14 million | Expected within 30 days |
Oliver Reeves, Chief Financial Officer of Surf Air Mobility, stated that the company is positioning itself to shift the majority of its convertible debt to term debt to minimize shareholder dilution. Upon completion, the company expects significantly lower amortization, less dilution, and greater flexibility around liquidity.
What specific conditions must be met to secure the second $14 million disbursement of the asset-backed loan?
How will the reduction in convertible debt impact Surf Air Mobility's ability to raise equity capital in the future?
What operational milestones does the company plan to achieve with the improved liquidity and extended debt maturities?
16
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
