Sky Harbour Secures Additional Funding in Second Equity Raise with Increased Investor Involvement
Sky Harbour Group Corporation (NYSE American: SKYH, SKYH WS), an innovative leader in aviation infrastructure, has announced the successful completion of the second closing of its previously disclosed equity raise. This closing saw the issuance of an additional 3,955,790 PIPE (Private Investment in Public Equity) shares of the company’s Class A Common Stock. The shares were issued following the exercise of all rights to purchase additional shares granted to PIPE investors from the first closing. This additional issuance generated net proceeds of approximately $37.6 million, with the shares sold at a price of $9.50 per share.
The total proceeds from both the initial and second closings amount to approximately $75.2 million, reflecting the full capacity of the planned equity raise. As previously disclosed, Sky Harbour also plans to issue approximately $150 million in new private activity debt financing in the first half of 2025, which will further bolster its capital reserves.
The combined proceeds from this equity raise and the anticipated debt financing, alongside the company’s existing cash reserves, amount to around $240 million. These funds will support Sky Harbour’s continued growth and development, particularly in its ambitious phase-1 development projects. These projects include the construction of 6-7 new airport campuses, which will collectively encompass approximately 800,000 rentable square feet. This builds on the approximately one million rentable square feet already funded and under development. By the end of 2025, Sky Harbour expects to finalize seven new ground leases, expanding its portfolio to a total of 23 airports.
Sky Harbour is creating the first nationwide network of Home-Basing campuses for business aircraft, providing much-needed infrastructure to support the growing demand for private aviation services. The company’s innovative approach to aviation facilities is positioning it as a key player in the rapidly expanding private aviation sector.
The PIPE participants in this latest round of funding included affiliates of Altai Capital, Raga Partners, and Boulderado, the family office of Sky Harbour Board member Alex Rozek. In addition, several new long-term investors have joined the shareholder base, further strengthening the company’s capital structure and investor base.
Tal Keinan, CEO of Sky Harbour, expressed his gratitude for the support the company has received from both new and existing investors, stating, “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. Their confidence in our business model and growth prospects is a testament to the potential of our company.”
Sky Harbour’s Chief Financial Officer, Francisco Gonzalez, echoed the positive sentiment, adding, “We are pleased to have been oversubscribed in the investor interest of this equity financing. This strong demand demonstrates the market’s confidence in our business and its future growth trajectory. We will continue with our policy of conservative and deliberate management of our liquidity and capital formation, ensuring that we remain well-positioned to execute on our long-term strategy.”
Rishi Bajaj, Managing Principal at Altai Capital, also commented on the successful equity raise, stating, “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 additional capital will allow the company to continue advancing its development projects, further solidifying its position as a leader in aviation infrastructure.”
Sky Harbour’s innovative vision for the future of private aviation is evident in its ongoing projects and its plans for expansion. By leveraging new funding, the company aims to continue building out its network of airport campuses, enhancing the infrastructure available for business aircraft, and supporting the growth of the private aviation industry.
With a robust capital foundation, Sky Harbour is well-positioned to achieve its goal of revolutionizing the business aviation landscape, providing essential infrastructure for the growing demand for private aviation services. The company’s continued success in attracting strategic investors underscores the confidence in its business model and the promising future ahead.
As Sky Harbour moves forward, it is clear that the company’s commitment to conservative financial management, combined with its visionary approach to aviation infrastructure, will play a key role in its long-term success and growth in the sector.