Sky Harbour Upsizes Equity Raise, Bolstered by Long-Term Investors

Sky Harbour Group Corporation (NYSE American: SKYH, SKYH WS) ("SHG" or the "Company"), a pioneering aviation infrastructure company, has announced an upsized equity raise, with existing and new long-term investors participating in the initial closing. The additional capital will strengthen Sky Harbour's financial health and support its ambitious growth plans.

The Company has entered a securities purchase agreement with certain investors to issue 3,352,106 PIPE shares of Class A Common Stock. The initial closing, expected between October 15 and 25, 2024, will generate approximately $31.8 million in net proceeds at a purchase price of $9.50 per share. Additionally, investors have been granted the option to purchase one additional share of Class A Common Stock for each initial PIPE Share purchased, with the second closing expected by December 20, 2024.

The financing includes participation from investors in the Company's November 2023 PIPE, such as affiliates of Altai Capital and Raga Partners, as well as Boulderado, the family office of SHG Board member Alex Rozek. The combined proceeds of approximately $240 million, including other cash on hand and previously announced incremental $150 million in private activity debt financing, will support phase 1 development projects at approximately 6-7 new airport campuses, adding around 800,000 additional rentable square feet.

The upsized equity raise will alter Sky Harbour's debt-to-equity ratio, improving its overall financial health and enhancing its ability to secure additional debt financing in the future. The increased funding will also accelerate the Company's plans for airport campus expansion and ground lease acquisitions, with the portfolio expected to reach 22 airports by the end of 2025.

The investor group's strategic contributions, beyond capital, will significantly impact Sky Harbour's business strategy and growth trajectory. The synergies brought by these investors, such as Altai Capital, Raga Partners, and Boulderado, will enable Sky Harbour to secure top-tier airfields and attract marquee tenants, further solidifying its position in the specialty real estate market.

In conclusion, Sky Harbour's upsized equity raise, bolstered by long-term investors, will strengthen the Company's financial position and support its ambitious growth plans. The strategic contributions of these investors will drive Sky Harbour's expansion and development projects, ultimately solidifying its role as a leading aviation infrastructure provider.