13D Filings
Vertical Aerospace Ltd.
EVTL
Amendment
Ownership

79.30%

Total Shares

84,942,109

Issuer CIK

1867102

CUSIP

G9471C107

Event Date

Dec 19, 2024

Accepted

Dec 26, 2024, 06:33 PM

Reporting Persons (16)
Joint Filing

This is a joint filing. The reported shares may overlap between reporting persons and should not be summed.

NameType% of ClassAggregateSole VotingShared Voting
Mudrick Capital Management, LLC
Other
79.30%84,942,109084,942,109
Jason Mudrick
Individual
79.30%84,942,109084,942,109
Mudrick Capital Management, L.P.
Partnership
79.30%84,942,109084,942,109
Mudrick Distressed Opportunity Fund Global, L.P.
Partnership
25.50%19,990,704019,990,704
Mudrick GP, LLC
Other
25.50%19,990,704019,990,704
Mudrick Distressed Opportunity Drawdown Fund II GP, LLC
Other
16.90%12,711,538012,711,538
Mudrick Distressed Opportunity Drawdown Fund II, L.P.
Partnership
15.40%11,481,305011,481,305
Mudrick Stressed Credit Fund GP, LLC
Other
9.80%7,103,04607,103,046
Mudrick Stressed Credit Master Fund, L.P.
Partnership
9.80%7,103,04607,103,046
Mudrick Distressed Opportunity 2020 Dislocation Fund, L.P.
Partnership
4.20%3,009,91403,009,914
Mudrick Distressed Opportunity 2020 Dislocation Fund GP, LLC
Other
4.20%3,009,91403,009,914
Mudrick Distressed Opportunity SIF Master Fund GP, LLC
Other
3.30%2,341,33202,341,332
Mudrick Distressed Opportunity SIF Master Fund, L.P.
Partnership
3.30%2,341,33202,341,332
Mudrick Opportunity Co-Investment Fund, L.P.
Partnership
3.00%2,123,55202,123,552
Mudrick Opportunity Co-Investment Fund GP, LLC
Other
3.00%2,123,55202,123,552
Mudrick Distressed Opportunity Drawdown Fund II SC, L.P.
Partnership
2.70%1,230,23301,230,233
Disclosure Items (6)

Security Title

Class A ordinary shares, par value $0.0001 per share

Issuer Name

Vertical Aerospace Ltd.

Issuer Address

Unit 1 Camwal Court, Bristol, X0, BS2 0UW

This Item 4 of the Schedule 13D is amended and supplemented as follows: The information included in Item 4 of this Amendment No. 3 is incorporated by reference into this Item 3.

This Item 4 of the Schedule 13D is amended and supplemented as follows: On December 23, 2024, the Issuer and U.S. Bank Trust Company, National Association, acting as trustee and collateral agent, executed the First Supplemental Indenture to the indenture, dated December 16, 2021 (the "Indenture"), under which the 7.00% / 9.00% Convertible Senior Secured PIK Toggle Notes due 2026 (the "Senior Secured Convertible Notes") were issued, which made certain amendments to the Indenture, including: (i) increasing the interest rate applicable to the Senior Secured Convertible Notes to 10.00% for cash interest and 12.00% for PIK interest; (ii) extending the maturity date of the Senior Secured Convertible Notes to December 15, 2028; and (iii) providing for a fixed conversion price of $2.75 per Ordinary Share for half of the principal amount of the Senior Secured Convertible Notes and $3.50 per Ordinary Share for the other half. Following the execution of the First Supplemental Indenture, on December 23, 2024, certain of the holders of Senior Secured Convertible Notes delivered conversion notices to the Company for the conversion of half, or approximately $130 million in principal amount, of the Senior Secured Convertible Notes at a fixed conversion price of $2.75 per Ordinary Share (the "Partial Conversion") for an aggregate of 47,343,585 Ordinary Shares (the "Converted Shares"), which were purchased with funds from the working capital of such Reporting Persons, as follows: Value Number of Shares Mudrick Distressed Opportunity Fund Global, L.P. $30,640,710 11,142,078 Mudrick Distressed Opportunity Drawdown Fund II, L.P. $17,656,376 6,420,501 Mudrick Distressed Opportunity Drawdown Fund II SC, L.P. $1,842,908 670,148 Mudrick Stressed Credit Master Fund, L.P. $10,916,839 3,969,760 Mudrick Distressed Opportunity 2020 Dislocation Fund, L.P. $4,618,664 1,679,514 Mudrick Distressed Opportunity SIF Master Fund, L.P. $3,509,402 1,276,146 Mudrick Opportunity Co-Investment Fund, LP $3,254,872 1,183,589 Certain Other Entities (in the aggregate) $57,755,090 21,001,849 On December 23, 2024, the Company's shareholders approved at the Extraordinary General Meeting the Fourth Amended and Restated Memorandum and Articles of Association of the Company (the "Fourth A&R Articles"). Pursuant to the Fourth A&R Articles, among other things, so long as Mudrick Capital Management L.P, on behalf of certain funds or accounts managed, sponsored or advised by it ("MCM") beneficially owns (as defined therein) at least 10% of the Company's issued and outstanding Ordinary Shares, MCM is entitled to nominate for election a number of individuals to serve as directors on the board of directors proportionate in number (rounded to the nearest whole number), on the basis of a board of directors consisting of seven directors, to MCM's percentage of beneficial ownership of the Company's issued and outstanding Ordinary Shares, subject to certain conditions, processes and procedures as set forth in the Fourth A&R Articles. Additionally, as reported by the Issuer in its Report on Form 6-K filed with the SEC, on December 20, 2024, as contemplated by the November 24th Term Sheet, MCM entered into the Investment Agreement (as defined in Item 6 below) and, as reported by the Issuer in another Report on From 6-K filed with the SEC, on December 23, 2024, MCM entered into certain Ancillary Agreements (as defined in Item 6 below) in each case, as described in Item 6 of this Amendment No. 3, which descriptions are qualified by the full text of such agreements and are incorporated herein by reference. Subject to the agreements described in the Schedule 13D, the Reporting Persons, at any time and from time to time, may review, reconsider and change their position and/or change their purpose and/or develop such plans, including with respect to influence on management or the Company's board of directors regarding the business and affairs of the Company and its subsidiaries, and engage with advisors, the Company or other persons regarding such matters.

Percentage of Class

This Item 5(a) of the Schedule 13D is amended and supplemented as follows: The responses set forth in rows 7 through 13 and the related "Comments for Type of Reporting Person" on the cover pages to this Amendment No. 3 are incorporated by reference into this Item 5. Such responses are provided as of December 23, 2024.

Number of Shares

This Item 5(b) of the Schedule 13D is amended and supplemented as follows: The responses set forth in rows 7 through 13 and the related "Comments for Type of Reporting Person" on the cover pages to this Amendment No. 3 are incorporated by reference into this Item 5. Such responses are provided as of December 23, 2024. By virtue of the relationships described herein, the Reporting Persons may be deemed to constitute a "group" within the meaning of Rule 13d-5 under the Exchange Act. The filing of this Schedule 13D shall not be construed as an admission that the Reporting Persons beneficially own those securities held by another member of such group. In addition, each Reporting Person expressly disclaims beneficial ownership of any securities reported herein except to the extent such Reporting Person actually exercises voting or dispositive power with respect to such securities.

Transactions

This Item 5(c) of the Schedule 13D is amended and supplemented as follows: Except as set forth herein, the Reporting Persons have not effected any transactions in securities of the Issuer during the past 60 days.

Shareholders

This Item 5(d) of the Schedule 13D is amended and supplemented as follows: Under certain circumstances, partners, members or shareholders of the Reporting Persons, as the case may be, could have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, securities owned by such Reporting Person.

Date of 5% Ownership

N/A

This Item 6 of the Schedule 13D is amended and supplemented as follows: Investment Agreement MCM entered into that certain Investment Agreement, dated as of December 20, 2024 (the "Investment Agreement'), by and among MCM, the Company, VAGL and Stephen Fitzpatrick (together with his affiliated entities, "SF"). Pursuant to the Investment Agreement MCM committed to fund up to $50 million to the Company in its next funding round (the "Equity Placement"), with $25 million funded on a non-contingent basis, and a backstop commitment for an additional $25 million to be funded by MCM if the Company is not able to raise such amount in the Equity Placement. Ancillary Agreements MCM entered into that certain Shareholder Letter Agreement, dated as of December 23, 2024, by and among MCM, the Company and SF (the "Shareholders Agreement") setting forth, among other things, certain corporate governance rights conferred upon MCM. Pursuant to the Shareholders Agreement, among other things, (i) for so long as MCM beneficially owns at least 35% of the Company issued and outstanding as set forth in the Shareholders Agreement, MCM has certain consent rights with respect to the Company's organizational documents and board composition and has agreed to use good faith efforts to ensure that the Company headquarters is maintained in the United Kingdom and the majority of the business operations of it and its subsidiaries, taken together, be maintained the United Kingdom, that the Company name and brand identity remains "Vertical Aerospace" and that, so long as SF is the beneficial owner of greater than 3% of the issued and outstanding Ordinary Shares, MCM will ensure that SF holds a seat on the board of directors of the Company and VAGL. MCM entered into a Lock-Up Agreement, dated as of December 23, 2024, by and between MCM and the Company (the "MCM Lock Up Agreement'), which contains certain restrictions on transfer with respect to the Converted Shares beginning December 23, 2024, and ending on the earlier to occur of (i) the completion of the First Equity Offering (as defined in the Investment Agreement) and (ii) March 31, 2025. MC entered into a Registration Rights Agreement, dated as of December 23, 2024, by and between MCM and the Company (the "MCM Registration Rights Agreement') pursuant to which, subject to certain requirements and customary conditions, the Company shall file a registration statement with the U.S. Securities and Exchange Commission (the "SEC") to register the Conversion Shares together with the Ordinary Shares issuable upon conversion of the remainder of the Convertible Senior Secured Notes outstanding, to the extent not already registered for resale under a currently effective registration statement of the Company. Forbearance and Waiver Prior to the Partial Conversion, MCM entered into a forbearance agreement, dated as of December 15, 2024 (the "Forbearance Agreement"), by and among the Company, VAGL, MCM, Stephen Fitzpatrick and Imagination Aero, pursuant to which MCM committed to forbear from exercising its rights upon the occurrence of an event of default arising as a result of certain specified defaults or potential defaults under the Indenture. Following the Partial Conversion, Mudrick Capital executed a waiver, dated December 23, 2024 (the "Waiver"), granting waivers to the Company in respect of certain existing and potential defaults, as well as any events of default potentially resulting therefrom, under the Indenture, subject to certain terms and conditions specified therein. The descriptions of the foregoing agreements are qualified by the full text of such agreements, which are attached hereto as Exhibits 11 through 16, respectively and incorporated herein by reference.

Exhibit 10: Joint Filing Agreement, dated as of February 10, 2022 (incorporated by reference to Exhibit 1 to the Schedule 13G filed by the Reporting Persons on February 11, 2022). Exhibit 11: Investment Agreement, dated as of December 20, 2024 (incorporated by reference to Exhibit 99.2 to the Form 6-K filed by the Issuer on December 20, 2024). Exhibit 12: Shareholder Letter Agreement, dated as of December 23, 2024 (incorporated by reference to Exhibit 99.1 to the Form 6-K filed by the Issuer on December 23, 2024). Exhibit 13: Lock-up Agreement, dated as of December 23, 2024 (incorporated by reference to Exhibit 99.3 to the Form 6-K filed by the Issuer on December 23, 2024). Exhibit 14: Registration Rights Agreement, dated as of December 23, 2024 (incorporated by reference to Exhibit 99.4 to the Form 6-K filed by the Issuer on December 23, 2024). Exhibit 15: Forbearance Agreement, dated as of December 15, 2024 (incorporated by reference to Exhibit 99.1 to the Form 6-K filed by the Issuer on December 20, 2024). Exhibit 16: Waiver, dated as of December 23, 2024 (incorporated by reference to Exhibit 4.3 to the Form 6-K filed by the Issuer on December 23, 2024).

Vertical Aerospace Ltd. — Schedule 13D | 13D Filings