Sky Harbour Boosts Growth with Significant Equity Raise

Sky Harbour Completes Second Closing of Equity Raise

Sky Harbour Group Corporation (NYSE American: SKYH, SKYH WS) has successfully completed the second closing of its equity raise. As an aviation infrastructure company, they are focused on building a pioneering nationwide network of Home-Basing campuses specifically for business aircraft.

Details of the Equity Raise

In this recent initiative, Sky Harbour issued an additional 3,955,790 shares of its Class A Common Stock, following the rights exercised by PIPE investors from the previous closing. This effort has garnered net proceeds of approximately $37.6 million, resulting in total aggregate proceeds from both closings of about $75.2 million. The sale price during this round was set at $9.50 per share.

Future Financing Plans

The Company has also outlined plans to secure around $150 million in new private activity debt financing, which is scheduled for the first half of 2025. The cumulative proceeds from this equity and potential debt financing, combined with the company’s existing cash reserves, aim to support the development of phase-1 projects at 6 to 7 new airport campuses, totaling approximately 800,000 rentable square feet. Currently, the company has already funded about one million rentable square feet and anticipates signing seven new ground leases by the end of 2025, which will enhance their portfolio to cover 23 airports.

Support from Strategic Investors

Prominent PIPE participants included affiliates of Altai Capital and Raga Partners, along with new long-term investors and Boulderado, the family office of SHG Board member Alex Rozek. This mix of investors showcases a robust confidence in the company’s direction and potential.

Statements from Leadership

CEO's Perspective

Tal Keinan, the CEO of Sky Harbour, expressed gratitude for the company’s ability to attract strategic investors: “Sky Harbour has had the good fortune to attract truly strategic investors to its shareholder community. We are grateful for our new partners, and for existing partners who have increased their stakes in Sky Harbour.”

CFO's Insight

Francisco Gonzalez, the CFO, noted, “We are pleased to have been oversubscribed in the investor interest of this equity financing. We will continue with our policy of conservative and deliberate management of our liquidity and capital formation.” This reflects the company’s commitment to maintaining a strong financial position while pursuing growth.

Emphasis on Long-Term Vision

Rishi Bajaj, Managing Principal from Altai Capital, also shared enthusiasm: “We are excited to be joined by an excellent group of new long-term investors who are equally enthusiastic about Sky Harbour's progress and future pipeline.” This highlights the collaborative effort and shared vision for the company’s ambitious plans.

About Sky Harbour Group

Sky Harbour Group Corporation is dedicated to developing the first nationwide network of Home-Basing campuses for business aircraft. They specialize in constructing, leasing, and managing general aviation hangars throughout the United States. With a focus on providing unmatched physical infrastructure and dedicated services tailored to various aircraft, Sky Harbour aims to enhance the flight readiness of its clients.

About Altai Capital

Founded by Rishi Bajaj in 2009, Altai Capital is a technology-focused investment firm committed to making long-term investments across a wide array of financial instruments, including debt, private equity, venture capital, and publicly traded securities. Their involvement signifies a strong backing of Sky Harbour’s future ambitions.

Frequently Asked Questions

What is the recent equity raise by Sky Harbour?

The recent equity raise involved the issuance of an additional 3,955,790 shares of Class A Common Stock, resulting in total proceeds of approximately $75.2 million.

What are Sky Harbour's future plans?

Sky Harbour plans to secure about $150 million in private activity debt financing to support the development of several new airport campuses over the coming years.

Who are the key investors involved?

Key investors include affiliates of Altai Capital, Raga Partners, Boulderado, and new long-term investors who are supportive of Sky Harbour's initiatives.

What is the significance of Home-Basing campuses?

Home-Basing campuses are designed to streamline operations for business aircraft, providing efficient infrastructure and services tailored to aviation needs.

How does Sky Harbour plan to use the funds from the equity raise?

The funds will be utilized to support the development projects at new airport campuses, enhancing their overall capacity and services in the aviation sector.

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