Surf Air secures $50 million in financing

The $50 million in a new senior secured term loan from Comvest will help Surf Air address ‘near-term liquidity constraints’.

By Doug Gollan, November 14, 2024

Surf Air Mobility said it had closed and funded a new senior secured term loan from Comvest Partners.

The new facility comprises a $44.5 million term loan, fully funded today.

A $5.5 million delayed draw term loan will be used for interest payments over the first 18 months.

Surf Air CFO Oliver Reeves said, “Today, we have fundamentally restructured our balance sheet – addressing our near-term liquidity constraints, lowering our cost of capital, minimizing potential dilution under our equity share subscription facility, and repositioning Surf Air Mobility for profitable growth.”

Reeves added, “Alongside this transaction, we have reduced liabilities and, as a result, have significantly strengthened our balance sheet. We are now poised to optimize the structure of our business and capitalize on the opportunities before us.”

This financing is a catalyst “to initiate the next phase of its transformation, which will allow the company to achieve its long-term goal of introducing software and electrified aircraft to become the world’s premier regional air mobility platform.”

Surf Air transition

The transition is four steps:

  • Transformation (complete) – Improved capital structure, strengthened balance sheet, put a new management team in place, and realized operational synergies from the Southern Airways merger
  • Optimization (2025-2026) – Optimize airline operations, recalibrate the On Demand business, and drive efficiencies from SurfOS
  • Expansion (2026-2027) – Rapidly expand tier 1 routes by leveraging improved business infrastructure and proprietary software developed with Palantir Technologies (NYSE: PLTR)
  • Acceleration (2027+) – Grow revenue and margins by implementing electrification technologies and expanding the technology platform.

COO and Interim CEO Deanna White added, “As we enter the next phase of our transformation plan, we are focused on optimizing operations and capital allocation to meaningfully improve profitability in the near term.”

She continued, “As we look further ahead, phases three and four of our plan will allow us to become the technology-enabled platform best positioned to capture a significant share of the $75B plus global regional air mobility market.”

Surf Air completed a direct IPO last year.

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