Surf Air Mobility Refinances Its Existing Senior Secured Convertible Note, With Expected Reduction In Remaining Principal From $74M To $47M

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.

Convertible Refinancing Surf Air Mobility has entered into a definitive agreement to refinance its existing senior secured convertible note due 2028, with a currently outstanding principal amount 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.

The new notes will be senior secured obligations of the Company, guaranteed by certain of the Company’s subsidiaries.

Surf Air Mobility anticipates closing on the senior secured convertible note due 2027 and the new non-convertible $30 million senior secured term note due 2028, on or about July 1, 2026, subject to certain closing conditions.

Upon completion, the new structure will reduce the existing convertible note principal by 64% and lowers 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.

Asset-Backed Loan Certain subsidiaries of Surf Air Mobility have also entered into a new non-convertible $21.6 million asset-backed loan, secured by new and existing aircraft.

The loan, which significantly increases balance sheet liquidity, will fund in two tranches.

The first disbursement occurred on June 30, 2026, and a second disbursement of $14 million is expected to occur within 30 days, subject to certain conditions, which will include a guaranty by Surf Air Mobility.