Sky Harbour Announces Pricing of its Series 2026 Bonds at 6%

Core Viewpoint - Sky Harbour Group Corporation has successfully priced its Series 2026 Aviation Facilities Project bonds at a yield of 6.0%, indicating strong investor demand and support for its growth strategy in aviation infrastructure [1][2]. Group 1: Bond Issuance Details - The Series 2026 Bonds were priced at par with a 6.0% coupon and a mandatory tender on January 1, 2031 [1]. - The bond issuance was upsized from an initial $100 million to $150 million due to approximately $450 million in orders from 18 institutional fund investors [1][2]. - The bonds are expected to be issued around February 12, 2026, pending customary closing conditions [1]. Group 2: Use of Proceeds - Proceeds from the Series 2026 Bonds, along with a $200 million Draw Down Facility from J.P. Morgan, will fund construction projects at multiple airports, including Bradley International Airport and Dulles International Airport [2]. - The funding is expected to support over 1.2 million rentable square feet of new hangar capacity, contributing to a total of over 2.3 million rentable square feet across the portfolio [2]. Group 3: Management Commentary - The CEO emphasized that the bond transaction reflects a deepening partnership with bond investors, which is central to the company's growth plan [3]. - The CFO noted that these subordinated bonds represent a significant milestone in the company's capital formation strategy, effectively doubling the target return on project equity [3]. Group 4: Company Overview - Sky Harbour Group Corporation is focused on developing a nationwide network of Home-Basing campuses for business aircraft, aiming to provide superior infrastructure and service in business aviation [4].