Sky Harbour Advances Financing Strategy With Proposed $100 Million Bond Offering, J.P. Morgan Facility Draw, and Expanding Leasing Momentum
Sky Harbour Group Corporation an aviation infrastructure company developing the first nationwide network of Home Base Operator (HBO) campuses for business aviation, has announced a series of significant financing, leasing, and capital formation updates that underscore the company’s continued expansion and strengthening balance sheet. Together, these developments position Sky Harbour to accelerate the buildout of its hangar campus portfolio while reducing reliance on equity capital and enhancing long-term financial flexibility.
At the center of the announcement is the planned issuance of $100 million in tax-exempt fixed-rate bonds, alongside an initial draw under the company’s committed warehouse financing facility with JPMorgan Chase Bank, N.A., and meaningful progress across leasing activities at multiple U.S. airport locations.
Proposed $100 Million Tax-Exempt Bond Offering
Sky Harbour disclosed that its indirect, wholly owned subsidiary, Sky Harbour Capital III LLC, is filing a Preliminary Limited Offering Memorandum with the Municipal Securities Rulemaking Board through its Electronic Municipal Market Access (EMMA) system. The filing relates to the proposed issuance of $100 million in tax-exempt fixed-rate bonds with a five-year mandatory tender date, referred to as the Series 2026 Bonds.
The bonds are expected to be issued by the Public Finance Authority of Wisconsin, a multi-jurisdictional conduit issuer frequently used to facilitate tax-exempt financing for infrastructure and development projects across the United States. The Series 2026 Bonds would be underwritten by a syndicate led by Barclays Capital, J.P. Morgan, and Academy Securities.
Sky Harbour anticipates pricing the Series 2026 Bonds during the week of January 26, following an approximately two-week investor marketing period. The final terms of the offering—including principal amount, structure, tenor, and timing—remain preliminary and are subject to market conditions, investor demand, and customary closing considerations. The company cautioned that there is no assurance that all or any portion of the bonds will ultimately be issued.
If completed, the proceeds from the Series 2026 Bonds are expected to be used primarily to finance the development of several hangar campuses within Sky Harbour’s expanding national network, supporting the company’s long-term strategy of building standardized, high-quality infrastructure for business aviation.
J.P. Morgan Facility: Onboarding, Amendments, and Initial Draw
Separately, Sky Harbour Capital II LLC, another indirect subsidiary of the company, completed the onboarding of subsidiaries that own hangar campuses at Camarillo Airport in California and Bradley International Airport in Connecticut into the borrowing base of its committed warehouse bank facility with JPMorgan Chase Bank, N.A. This onboarding was completed on January 8, 2026.
The committed warehouse facility, commonly referred to as the JPM Facility, represents a cornerstone of Sky Harbour’s construction and development financing strategy. In conjunction with the onboarding, the company also amended the JPM Facility to facilitate the flow of funds that would secure the proposed Series 2026 Bonds. These amendments were formally disclosed in a filing on Form 8-K with the U.S. Securities and Exchange Commission.
On the same date, Sky Harbour Capital II drew approximately $13 million under the JPM Facility. The proceeds were used to reimburse the parent company for prior advances related to capital expenditures at Bradley International Airport, cover certain costs associated with the proposed bond issuance, and fund required reserves under the JPM Facility.
This initial draw marks a meaningful step in the operationalization of Sky Harbour’s financing structure, providing near-term liquidity while aligning the facility with the company’s broader capital markets strategy.
Leasing Performance: Occupancy Growth and Revenue Upside
Alongside its financing updates, Sky Harbour provided a detailed overview of leasing activity across its portfolio, highlighting continued demand for its purpose-built hangar campuses.
Stabilized Campuses
At campuses that have reached stabilized occupancy levels, Sky Harbour expects revenue per square foot to continue increasing over time. This growth is driven by the rollover or renewal of legacy hangar leases at higher market rates, as well as annual rent escalators embedded within all tenant agreements. These dynamics are expected to support steady organic revenue growth without the need for additional capital investment.
Recently Opened Campuses
Sky Harbour reported strong early leasing traction at recently opened locations. As of January 9, 2026, occupancy levels reached approximately:
- 87% at Dallas Addison Airport (ADS) Phase 1
- 73% at Phoenix Deer Valley Airport (DVT)
- 27% at Denver Centennial Airport (APA)
Management noted that these occupancy levels reflect healthy demand curves, particularly at campuses that opened more recently and are still progressing through their initial lease-up phases.
Pre-Leasing Activity
The company continues to actively pursue pre-leasing at several strategic locations, including Washington Dulles International Airport (IAD) and Bradley International Airport (BDL). In addition, pre-leasing has begun at Miami-Opa Locka Airport (OPF) Phase 2 and Addison Airport (ADS) Phase 2.
Both OPF Phase 2 and ADS Phase 2 are currently under construction, following the success of their respective Phase 1 developments, which are now nearly fully leased. The company views pre-leasing as a critical risk-mitigation tool, enabling earlier revenue visibility and supporting more efficient capital deployment.
Strategic Partnerships and Long-Term Lease Structures
Sky Harbour also provided updates on several strategic initiatives designed to enhance long-term revenue stability and capital efficiency.
Selective Long-Term Partnerships
The company has extended the documentation negotiation period under a letter of intent with a potential joint venture partner for the lease of a single SH34 hangar at OPF Phase 2. The extension, which runs through mid-March 2026, is intended to allow additional time to address certain operational requirements. In parallel, Sky Harbour continues discussions regarding similar joint venture structures at other locations across its network.
Ultra-Long-Term Tenant Leases
In late December, Sky Harbour entered into an amended lease agreement with an existing tenant at OPF Phase 1, extending the lease term to 15 years. In exchange, the tenant provided an upfront lump-sum rent payment of $5.9 million. This structure enhances near-term liquidity while locking in long-term occupancy and reducing re-leasing risk.
Capital Formation Strategy and Portfolio Expansion
If completed as planned, the Series 2026 Bonds would raise $100 million, reducing the company’s need for incremental equity contributions associated with its $200 million JPM Facility. As previously disclosed, the JPM Facility has a five-year term beginning in September 2025 and carries an interest rate equal to 80% of the sum of daily SOFR plus 0.10%, plus an additional 200 basis points.
To manage interest rate exposure, Sky Harbour entered into a floating-to-fixed interest rate swap with a notional schedule aligned to anticipated draws under the JPM Facility. The swap locks in a fixed rate of 4.73% for the duration of the facility, providing cost certainty and protecting against potential rate volatility.
Proceeds from the JPM Facility and the proposed Series 2026 Bonds are expected to fund construction projects at multiple airports, including:
- 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)
- Washington Dulles International Airport (IAD)
The JPM Facility also includes an expansion feature that could increase total borrowing capacity to $300 million, subject to credit approval.
Portfolio Scale and Internal Cash Flow Generation
Assuming successful execution of the bond issuance and full utilization of available financing, Sky Harbour expects that the $100 million Series 2026 Bonds, combined with the $200 million JPM Facility and other existing resources, will be sufficient to fully fund approximately 1.1 million square feet of new rentable hangar space. This would bring the company’s total portfolio to approximately 2.1 million rentable square feet nationwide.
Importantly, Sky Harbour anticipates that improving occupancy levels, lease renewals, and the planned opening of its OPF Phase 2 campus in the second quarter of 2026 will enable the company to reinvest internally generated cash flows as equity for future developments. This shift toward self-funded growth represents a key milestone in the company’s evolution and long-term capital efficiency.
Positioning for Long-Term Growth in Business Aviation
Collectively, the financing, leasing, and operational updates highlight Sky Harbour’s disciplined approach to scaling its Home Base Operator campus model. By combining tax-exempt financing, committed bank facilities, long-term tenant leases, and internal cash flow generation, the company is building a resilient platform designed to support sustained growth in business aviation infrastructure.
As demand for modern, purpose-built hangar space continues to rise across major U.S. aviation hubs, Sky Harbour’s expanding national footprint and standardized development model position it to capture long-term value while maintaining financial flexibility and operational discipline.
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