Surf Air Mobility raises $100 million in strategic transaction

Surf Air Mobility Inc. (NYSE: SRFM) announced a $100 million strategic transaction comprising debt refinancing and equity raises to fund its SurfOS software platform development.

The transaction includes a $74 million zero-coupon convertible note sold to an institutional investor at 87.8% of face value, generating $65 million in proceeds. The note converts at $3.98 per share, representing a 20% premium to the transaction closing price, and matures on October 31, 2028.

Surf Air Mobility will use proceeds to repay $51 million owed under its credit agreement with Comvest Partners affiliates and $8 million owed to Partners For Growth V, L.P. The refinancing reduces annual cash interest expense by approximately $5.5 million.

The company also raised $26 million in new equity specifically for SurfOS development. An institutional investor and the company's co-founder with a related party purchased $20 million of common stock and warrants at $3.32 per share, Friday's closing price. The warrants expire after two years and become exercisable immediately.

Palantir Technologies Inc. will receive $6 million of common stock as prepayment for software and services. The arrangement follows an expanded partnership integrating Palantir's AI and Foundry platforms into SurfOS.

"This strategic transaction marks a pivotal moment for Surf Air Mobility, expanding and accelerating our Transformation Plan," said CEO Deanna White.

The equity proceeds will fund development of three SurfOS products: BrokerOS, OperatorOS, and OwnerOS, with commercial rollout planned for 2026. The funds will also support engineering and sales capabilities scaling.

Following the transaction, Surf Air Mobility's consolidated net debt decreased 37.3% from $139.1 million on December 31, 2024, to $87.2 million, according to CFO Oliver Reeves.

The equity closing is expected around November 12, 2025, subject to customary conditions. Information is based on a company press release.

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