WEST HARRISON, N.Y. – Sky Harbour Group Corporation (NYSE American: SKYH, SKYH WS), a developer of aviation infrastructure, has entered into a securities purchase agreement with select investors to sell 3,352,106 shares of Class A Common Stock, aiming to raise approximately $31.8 million. The initial closing of this private investment in public equity (PIPE) transaction is scheduled between October 15 and October 25, 2024, contingent on customary closing conditions.
Investors who participated in the company's November 2023 PIPE, including Altai Capital and Raga Partners, as well as Boulderado, represented by SHG Board member Alex Rozek, are also involved in this financing round. These investors have been granted an option to buy an additional share for every share initially purchased at the same price of $9.50. This option expires on December 4, 2024, with the potential for a second closing by December 20, 2024.
The company may, at its discretion, allow new investors to join the agreement before the initial closing. The terms for new investors could match or exceed the $9.50 share price, and the number of additional shares purchasable at the second closing could be adjusted accordingly.
Sky Harbour plans to use the anticipated $63 million from both PIPE closings and other available funds, in conjunction with $150 million in private activity debt financing expected in the first half of 2025. The total projected funds of around $240 million are earmarked for phase 1 development of new airport campuses, adding approximately 800,000 rentable square feet to the already funded one million. The company anticipates announcing eight more ground leases by the end of 2025, expanding its portfolio to 22 airports.
David B. Heller and Atul S. Joshi of Raga Partners expressed their support for Sky Harbour's approach to the private aviation market. CEO Tal Keinan noted the strategic contributions of the investor group and the company's growth trajectory. Rishi Bajaj of Altai Capital lauded Sky Harbour's success in securing top-tier airfields and tenants.
Sky Harbour will also present at the Sidoti Small Cap Virtual Investor Conference on September 18-19, 2024, and the Emerging Growth Conference on September 25, 2024.
This news article is based on a press release statement from Sky Harbour Group Corporation.
In other recent news, Sky Harbour Group Corporation reported a positive financial trajectory, showcasing increased revenues and operational cash flow in its 2024 second quarter earnings call. The company also outlined its aggressive expansion strategy, highlighting three significant development projects in Denver, Phoenix, and Dallas, due for completion by Q1 2025, with an additional ten projects in the pipeline.
Sky Harbour's commitment to bondholder protection is evident in its robust liquidity position. The company is also seeking investment-grade ratings and planning equity offerings to address the low stock float, influenced by shareholder activities from Boston Omaha and Altai.
Sky Harbour is accelerating growth and expanding its portfolio, exceeding revenue projections from airports and seeing a notable increase in revenue upon lease renewals. The company plans to add a Senior Vice President of Airports to support operations. However, they acknowledged the complexity of addressing bottlenecks and operational pushbacks at airports.
The completion of the Sky Harbour 37 prototype hangar marks a significant milestone in business aviation. In addition, the company continues to explore new revenue streams through services offered at Sky Harbour campuses. These are recent developments that paint a picture of a company in strong financial health, with a clear strategy for growth and development.
InvestingPro Insights
As Sky Harbour Group Corporation (NYSE American: SKYH, SKYH WS) continues to expand its aviation infrastructure footprint, the company's financial metrics and market performance offer valuable insights for investors. According to InvestingPro data, Sky Harbour's market capitalization stands at $925.28 million, reflecting the market's valuation of the company amidst its growth initiatives. Despite not paying dividends, the company has shown a significant return over the last week with a 10.03% price total return, and an even more impressive year-to-date price total return of 36.34%, indicating strong investor confidence in the company's trajectory.
InvestingPro Tips highlight the company's potential with analysts anticipating sales growth in the current year, which aligns with Sky Harbour's development plans for new airport campuses. Additionally, the stock's performance has been quite volatile, which may appeal to certain investors seeking high-growth opportunities. Notably, Sky Harbour's liquid assets exceed its short-term obligations, suggesting a solid liquidity position to support its ongoing projects.
For investors considering Sky Harbour's future prospects, it's worth noting that the company is trading near its 52-week high, with the price at 97.43% of that peak. These metrics, coupled with the anticipated revenue growth of 177.73% over the last twelve months as of Q2 2024, paint a picture of a company on an upward trajectory. For more in-depth analysis and additional InvestingPro Tips, interested parties can explore the full suite of insights available at InvestingPro, which includes a total of 12 tips for Sky Harbour Group Corporation.
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