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

Company: SURF AIR MOBILITY INC.
Filing Date: 2025-11-10
Form: 424B5
Chunk 25
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,000 in unrestricted cash and cash equivalents in controlled accounts. The Company also must obtain prior written consent from a majority of holders of the Notes before issuing additional notes or securities that would cause a default under the Notes or restrict the Company’s ability to pay the principal amount thereon. In addition, the Company must maintain a required reserve of authorized and unissued common stock calculated pursuant to a specified formula set forth in the Notes, and deliver and maintain the Letter of Credit (as defined below) to backstop the Notes. The Company must also maintain at least $30,000,000 in available capacity under either an equity line of credit or an ATM offering within the meaning of Rule 415(a)(4) of the Securities Act pursuant to which the Company may issue and sell shares of common stock from time to time. Additional affirmative covenants require the Company to maintain its business within existing lines, preserve its corporate existence, properties and intellectual property rights, maintain adequate insurance and ensure affiliate transactions are on arm’s length terms.

Letter of Credit and Reimbursement Agreement Amendment

In connection with the offering of the Notes and the refinancing of existing liabilities of the Company, the Company is required to cause the issuance and delivery of the Letter of Credit. The Notes contain certain representations and warranties, covenants and events of default. Upon the occurrence of certain events of default, the holders of the Notes would have the right to draw upon the letter of credit.

On the closing date for the Registered Direct Offering and the Concurrent Offerings, the Company expects to enter into an amendment to its existing Reimbursement Agreement to add the Letter of Credit to the scope of the Reimbursement Agreement. If the Letter of Credit is drawn upon, the Company will be required to reimburse Park Lane for the drawn amount of the letter of credit and pay interest to Park Lane at 15.00% per annum on such drawn amounts (subject to increase in the event of default). The Company is separately obligated to pay a fee of 1.00% per annum to Park Lane on the outstanding principal amount of the backstop letter of credit. In the event the Company raises capital in certain equity offerings, a portion of the net cash proceeds from such equity offerings is required to be remitted to Park Lane to be held in trust in accordance with the Reimbursement Agreement. The obligations under the Reimbursement Agreement are guaranteed by certain of the Company’s subsidiaries, and subject to a security interest on assets of the Company and the subsidiary guarantors, subject to certain exceptions