Sky Harbour secures $37.6m in equity financing

Aviation infrastructure company Sky Harbour Group Corporation announced it has successfully completed the initial closing of its equity raise, securing $37.58m in net proceeds.

The company aims to use these funds to accelerate the development of phase 1 projects at approximately 6-7 new airport campuses, adding roughly 800,000 rentable square feet to the company’s portfolio.

This, coupled with the previously announced $150m private activity debt financing, brings the total capital allocation to approximately $240m.

The company issued 3,955,790 PIPE shares of Class A Common Stock at a net purchase price of $9.50 per share. A second closing of up to an additional $37.58m is scheduled for December 20, 2024.

Sky Harbour aims to expand its nationwide network of home-basing campuses for business aircraft, with a target of 22 airports by the end of 2025. This strategic expansion will provide enhanced convenience and services to business aviation customers.

Tal Keinan, CEO of Sky Harbour, expressed enthusiasm about the successful equity raise and the strong support from both existing and new investors.

“This capital funds Sky Harbour’s construction program through 2026, when cash flow will serve as an increasingly significant portion of the company’s development equity needs. We are very pleased that investors who have already contributed to Sky Harbour’s growth are increasing their positions. We welcome our new investors, and expect their contributions to further steepen our trajectory,” said Keinan.

Earlier in September, the company announced that it has secured $31.8m in equity financing through a securities purchase agreement with investors. The company said it planned to use the funds to accelerate the company’s nationwide expansion of home-basing campuses for business aircraft.