Sky Harbour Announces Pricing of its Series 2026 Bonds at 6%; Deal Upsized to $150 million (Form 8-K)

Sky Harbour Announces Pricing of its Series 2026 Bonds at 6%; Deal Upsized to $150 million

WEST HARRISON, N.Y.--(BUSINESS WIRE)--Sky Harbour Group Corporation (NYSE: SKYH, SKYH WS) ("SHG" or the "Company"), an aviation infrastructure company building the first nationwide network of Home Base Operator (HBO) campuses for business aircraft, announced today that its indirect, wholly-owned subsidiary Sky Harbour Capital III LLC ("SKYH Capital III") priced its Series 2026 Aviation Facilities Project bonds (the "Series 2026 Bonds") at a yield of 6.0%. The Series 2026 Bonds were priced at par, carry a 6.0% coupon, and benefit from a mandatory tender on January 1, 2031. The Series 2026 Bonds are proposed to be issued by the Public Finance Authority of Wisconsin, a multi-jurisdictional conduit issuer. Through underwriters Barclays Capital Inc., J.P. Morgan Securities LLC, and Academy Securities, the Series 2026 Bonds received approximately $450 million in orders from 18 institutional fund investors. The transaction was upsized from the original $100 million to $150 million given investor demand. The Series 2026 Bonds are expected to close on February 12, 2026, subject to customary closing conditions.

The proceeds of the Series 2026 Bonds, along with the previously announced $200 million committed Draw Down Facility from J.P. Morgan (the "JPM Facility"), are intended to fund construction projects at Bradley International Airport (BDL), Salt Lake City International Airport (SLC), Orlando Executive Airport (ORL), Hudson Valley Regional Airport (POU), Trenton-Mercer Airport (TTN), Chicago Executive Airport (PWK) and Dulles International Airport (IAD), among other airports. The JPM Facility is expandable to $300 million subject to credit approval. These funding sources are expected to fully fund over 1.2 million rentable square feet of new hangar capacity, for a total of over 2.3 million rentable square feet funded or constructed portfolio-wide.

Tal Keinan, CEO and Chairman, commented: "This transaction is the product of Sky Harbour's deepening partnership with its bond investors. This partnership has become central to the company's growth plan."

Francisco X. Gonzalez, CFO, added: "These subordinated bonds are a milestone in our capital formation strategy, effectively doubling our target return on project equity.

Greenberg Traurig LLP served as Bond and Tax Counsel, Morrison Foerster LLP as corporate counsel, Nixon Peabody LLP as Underwriters' counsel, Katten Muchin Rosenman LLP as Purchaser's Counsel, and Lexton Infrastructure Solutions LLC as Financial Advisor.

About Sky Harbour

Sky Harbour Group Corporation is an aviation infrastructure company developing the first nationwide network of Home-Basing campuses for business aircraft. The company develops, leases, and manages general aviation hangar campuses across the United States. Sky Harbour's Home-Basing offering aims to provide private and corporate residents with the best physical infrastructure in business aviation, coupled with dedicated service, tailored specifically to based aircraft, offering the shortest time to wheels-up in business aviation. To learn more, visit www.skyharbour.group.