November 02, 2021
Latham & Watkins advised Vertical
Aerospace Ltd. (“Vertical”), a global aerospace and technology company that is
pioneering zero-emissions aviation, on US$205 million in additional financing
to support its path to scale production and certification of the VA-X4 electric
vertical take-off and landing (eVTOL) aircraft. Vertical is targeting the
highest global certification for its VA-X4, which is expected to achieve the
equivalent safety standard of a passenger jet by 2024 (based on the expected
standards promulgated by the CAA and EASA).
Mudrick Capital Management, L.P., a global
investment firm focused on special situation investing, will invest US$200
million in Vertical through convertible senior secured notes. In addition,
Kouros SA, a firm specializing in investments to decarbonize transport and
energy production, will invest US$5 million in Vertical’s PIPE financing in
connection with Vertical’s de-SPAC transaction, alongside American Airlines,
Avolon, Honeywell, Microsoft’s M12, and Rolls-Royce.
Latham previously advised Vertical
Aerospace on its US$2.2 billion de-SPAC.
The cross-border Latham team was led by
corporate partners Robbie McLaren and David Stewart, with associates Yolanda
Min, Sarah Youssefi, Adam Czernikiewicz, Cécile Wirxel, and Summer Xia. Advice
on convertible notes was provided by partner Reza Mojtabaee-Zamani, with
associates Eric Rice, Kate Kim, and Saem Kim; on tax matters by partners Jiyeon
Lee-Lim and Karl Mah, with associates Shruti Hazra and Aaron Bradley; and on
finance matters by partner Fergus O'Domhnaill, with associate Hannah Drake.