Morrison & Foerster advised Sky Harbour Capital LLC (“SH Capital”), a subsidiary of aviation infrastructure developer Sky Harbour LLC (“SHG”), in its agreement to sell $166.34 million Series 2021 private activity tax-exempt senior bonds through municipal conduit issuer, Public Finance Authority (“PFA”). SH Capital and its subsidiaries, Sky Harbour Sugar Land Airport, LLC, Sky Harbour Opa Locka Airport, LLC, Nashville Hangars LLC, APA Hangars LLC, and DVT Hangars LLC, will constitute an Obligated Group, securing the bonds on a joint and several basis.
The bond sale is expected to close on September 14, 2021. As part of the plan of finance, SHG will be contributing $68 million in equity to the Obligated Group as to, along with the bond proceeds, refinance existing debt and fund a development project of eight existing hangars and 74 new hangers in various phases at the five airports listed above.
The MoFo team advising SH Capital was led by Washington, D.C. finance of 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; and New York real estate partner Chris Delson and real estate deal manager and title specialist J. Alethea Jones; together with Washington, D.C. corporate associate Lee Nisson, and Miami corporate associates Roberto Rodriguez, Axel Miranda, and Ludovica Gardani.