Sky Harbour closes $200m facility with JP Morgan

Aviation infrastructure company Sky Harbour Group said it has successfully closed a $200m tax-exempt warehouse drawdown committed bank facility.

The initial borrower is Sky Harbour Capital II, a wholly owned subsidiary of SHG.

The lender and administrative agent is JPMorgan Chase whereas the tax-exempt note underlying the committed facility was issued through the Public Finance Authority of Wisconsin.

The facility’s principal terms include drawdowns for eligible new hangar projects, 65% leverage, a five-year bullet maturity, 80% of (SOFR+0.10%) plus a 200bps applicable margin as the tax-exempt annual interest rate, capitalised monthly interest during the first three years, and no prepayment penalty at the time of refinancing.

At present, the applicable floating interest rate is approximately 5.60% with the option to be expand the facility to $300m.

“We thank our new lending partners at J.P. Morgan for their trust and their creativity in designing a facility that elegantly meets Sky Harbour’s specific needs,” said Tal Keinan, Sky Harbour’s CEO.

McGuireWoods acted as administrative agent and lender’s counsel to JP Morgan.

Attolles Law, acted as issuer counsel to Public Finance Authority whereas Greenberg Traurig, acted as tax and bond counsel and Morrison & Foerster LLP acted as corporate counsel to the initial borrower, SKYH Capital II.

Lexton Infrastructure Solutions LLC acted as financial advisor to Sky Harbour Group.