Company: SRFM
Filing Date: 2025-11-10
Form Type: 424B5
Source: 0001193125-25-273369
Chunk: 11

Company: SURF AIR MOBILITY INC.
Filing Date: 2025-11-10
Form: 424B5
Chunk 11
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 business;

pay dividends or other distributions on, redeem or repurchase capital stock

prepay, redeem, or purchase certain subordinated indebtedness

sell assets; and

make investments (including acquisitions) or certain expenditures.

If we are not in compliance with certain of these covenants, the amounts outstanding under the Notes and/or outstanding obligations under the Reimbursement Agreement may become immediately due and payable. This immediate payment may negatively impact our financial condition.

We and our subsidiaries may incur substantially more debt or take other actions which would intensify the risks discussed above.

We and our subsidiaries may be able to incur substantial additional debt in the future, subject to the restrictions contained in our debt instruments, including the Notes and our other secured debt or other secured obligations. We will not be restricted under the terms of the indenture governing the Notes offered in the Concurrent Offerings from incurring additional debt, securing then-existing or future debt or recapitalizing our debt or taking a number of other actions that are not limited by the terms of the indenture governing the notes offered in the Concurrent Offerings that could have the effect of diminishing our ability to make payments on our indebtedness when due if we obtain the consent of the holder of the Notes.

Provisions in the Notes offered in the Concurrent Offerings may deter or prevent a business combination that may be favorable to you.

If a fundamental change occurs prior to the maturity date, holders of the Notes offered in the Concurrent Offerings will have the right, at their option, to require us to repurchase all or a portion of their notes, which could include a premium over the principal amount then outstanding under certain circumstances, making it costlier for a potential acquirer to engage in such takeover. See “The Concurrent Offerings–The Notes” for further information on the terms of the fundamental change repurchase right. These and other provisions in the Notes could deter or prevent a third party from acquiring us even when the acquisition may be favorable to you.

Additional Risks Related to Our Business

Continued access to Essential Air Service revenue is of critical importance to us and interruptions or reductions in EAS funding could adversely affect our business.

Southern Airways Corporation (“Southern”) has historically received EAS subsidies as compensation for providing essential air service to numerous small communities. Over the last decade, overall funding of the EAS program by the U.S. government has increased from $193 million in 2012 to $466.4 million in 2022, which includes an increase in Congressional appropriation from $143 million in 2012