Sky Harbour Secures $200 Mln Tax-Exempt Facility From J.P. Morgan For Hangar Expansion

(RTTNews) - Sky Harbour Group Corporation (SKYH) has closed a $200 million tax-exempt warehouse drawdown committed bank facility with J.P. Morgan as lender and administrative agent.

The borrower is Sky Harbour Capital II, a wholly owned subsidiary, with the note issued through the Public Finance Authority of Wisconsin.

The facility allows drawdowns for new hangar projects with 65% leverage, a five-year bullet maturity, and an interest rate of about 5.60%. It includes capitalized monthly interest for three years, no prepayment penalty at refinancing, and may expand to $300 million subject to approval.

The CEO said the agreement reflects J.P. Morgan's tailored support for Sky Harbour's needs, while the CFO noted it was the most cost-efficient mechanism after a competitive process, providing flexibility for project funding and long-term refinancing.

Legal and advisory support was provided by McGuireWoods, Attolles Law, Greenberg Traurig, Morrison & Foerster, and Lexton Infrastructure Solutions.

Friday SKYH closed at $9.99, down 2.63%, and showed no after-hours movement on the NYSE.