Sky Harbour, a developer of business aviation hangar campuses, has secured $166.34 million in financing through the sale of bonds from its subsidiary, Sky Harbour Capital. Bond proceeds and a $68 million equity investment will be used to refinance debt and fund eight existing hangars and 74 new hangars in various stages of development at Miami-Opa Locka Executive Airport, Sugar Land Regional Airport in Texas, Nashville International Airport, Centennial Airport in Denver, and Phoenix Deer Valley Airport.
Concurrent with the closing of the bond transaction, Boston Omaha will invest $55 million in Sky Harbour’s merger with special purpose acquisition company Yellowstone Acquisition Co. The business combination will allow Sky Harbour to become a publicly-traded company.
The sale of Series 2021 private activity tax-exempt bonds through Public Finance Authority has received “significant investor interest,” according to Sky Harbour, with nearly $1 billion in orders from more than 30 institutional investors. Goldman Sachs is the lead book-runner and Barclays Capital is the co-managing underwriter in the bond sale.
Sky Harbour said the bond issuance comprises unrated senior fixed-rate tax-exempt bonds with three term maturities—in 2036, 2041, and 2054, with principal amortization from 2032 through 2054. The term bonds were priced to yield 3.80 percent in 2036, 4 percent in 2041, and 4.25 percent in 2054. The bonds are expected to be issued in mid-September.
Advising Sky Harbour Capital on the bond sale was a team from Morrison & Foerster: Washington, D.C. counsel Rafael Hernandez; New York corporate partner and co-chair of the firm's global corporate department Mitchell Presser; New York corporate partners John Owen and Omar Pringle; New York real estate partner Chris Delson and real estate deal manager and title specialist J. Alethea Jones; along with Washington, D.C., and Miami corporate associates Lee Nisson, Roberto Rodriguez, Axel Miranda, and Ludovica Gardani.