Sky Harbour Upsizes Bond Offering to $150 Million Amid Strong Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Newsfilter
- Upsized Financing: Sky Harbour Group successfully increased its Series 2026 Aviation Facilities Project bond offering from $100 million to $150 million through its wholly-owned subsidiary, reflecting strong investor demand and providing ample funding for future expansions.
- Stable Bond Yield: The bonds were priced at a 6.0% yield with a mandatory tender on January 1, 2031, ensuring stable returns for investors while offering Sky Harbour a low-cost financing avenue to support its infrastructure projects.
- Clear Use of Proceeds: Proceeds from the bonds will be used alongside a $200 million committed Draw Down Facility from J.P. Morgan for construction projects at multiple airports, expected to fund over 1.2 million rentable square feet of new hangar capacity, enhancing the company's competitive position in the market.
- Positive Management Outlook: CEO Tal Keinan noted that this transaction is a result of deepening partnerships with bond investors, indicating a significant milestone in the company's capital formation strategy, which is expected to effectively double the target return on project equity.
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Analyst Views on SKYH
Wall Street analysts forecast SKYH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SKYH is 17.33 USD with a low forecast of 13.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 9.090
Low
13.00
Averages
17.33
High
25.00
Current: 9.090
Low
13.00
Averages
17.33
High
25.00
About SKYH
Sky Harbour Group Corporation is an aviation infrastructure company. The Company is engaged in developing a nationwide network of home basing hangar campuses for business aircraft. The Company develops, leases and manages general aviation hangars across the United States. The Company’s home basing offering provides private and corporate residents with physical infrastructure in business aviation with dedicated service, tailored to based aircraft. Its home basing hangar campuses provide features and services such as private hangar space for the exclusive use of the tenant; adjoining configurable lounge and office suites; line crews and services dedicated to tenants; climate control to mitigate condensation and associated corrosion; features to support in-hangar aircraft maintenance, and no-foam fire suppression. It also provides customized software to provide security, control access and monitor hangar space.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sky Harbour Prices $150 Million Series 2026 Bonds at 6.0% Yield
- Successful Bond Issuance: Sky Harbour Capital III LLC successfully priced its Series 2026 Bonds at a 6.0% yield, increasing the raised funds from the initial $100 million to $150 million, reflecting strong investor confidence in the company's future growth.
- Clear Use of Proceeds: The bond proceeds will fund new hangar construction projects at multiple airports, including Bradley International and Salt Lake City International, expected to finance over 1.2 million rentable square feet of new hangar capacity, significantly enhancing operational capabilities.
- Deepening Strategic Partnerships: The CEO of Sky Harbour noted that this bond issuance is a result of deepening partnerships with bond investors, marking a significant milestone in the company's capital formation strategy, which is expected to effectively double the target return on project equity.
- Strong Market Demand: The bond offering attracted approximately $450 million in orders from 18 institutional investors, demonstrating high market recognition of Sky Harbour's growth potential, further solidifying its market position in aviation infrastructure.
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Sky Harbour Upsizes Bond Offering to $150 Million Amid Strong Demand
- Upsized Financing: Sky Harbour Group successfully increased its Series 2026 Aviation Facilities Project bond offering from $100 million to $150 million through its wholly-owned subsidiary, reflecting strong investor demand and providing ample funding for future expansions.
- Stable Bond Yield: The bonds were priced at a 6.0% yield with a mandatory tender on January 1, 2031, ensuring stable returns for investors while offering Sky Harbour a low-cost financing avenue to support its infrastructure projects.
- Clear Use of Proceeds: Proceeds from the bonds will be used alongside a $200 million committed Draw Down Facility from J.P. Morgan for construction projects at multiple airports, expected to fund over 1.2 million rentable square feet of new hangar capacity, enhancing the company's competitive position in the market.
- Positive Management Outlook: CEO Tal Keinan noted that this transaction is a result of deepening partnerships with bond investors, indicating a significant milestone in the company's capital formation strategy, which is expected to effectively double the target return on project equity.
Continue Reading