Surf Air Mobility Raises $50M to Address Liquidity Challenges

Surf Air Mobility, the parent company of Surf Air, Mokulele Airlines, and Southern Airways Express, has secured a $50 million loan from investment firm Comvest Partners. The funding is intended to address immediate liquidity needs and support the company’s restructuring efforts.

The loan includes $44.5 million in fully funded term loans and $5.5 million in delayed term loans to cover interest over the next 18 months. It carries a four-year term, priced at the federal SOFR rate plus 5%. Surf Air Mobility stated that the financing provides the company with its “largest cash position” to date while reducing the cost of capital and mitigating equity dilution risks.

“Alongside this transaction, we have reduced liabilities and significantly strengthened our balance sheet,” said CFO Oliver Reeves. “We are now well-positioned to optimize our business structure and capitalize on upcoming opportunities.”

The loan marks a critical step for Surf Air Mobility as it navigates challenges and focuses on stabilizing operations. With improved financial flexibility, the company aims to leverage its regional airline network and innovative business model to drive growth.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com