Sable Offshore Corp. said it plans to raise $400.0 million through two separate public offerings: $100.0 million of common stock and $300.0 million of convertible senior notes due 2031.
The company also expects to give underwriters 30 days to buy up to an additional $15.0 million of stock and up to an additional $45.0 million of notes to cover over-allotments. J.P. Morgan is the sole book-running manager for both offerings.
The notes are set to mature on July 1, 2031, unless they are repurchased, redeemed or converted earlier. They will pay interest semi-annually, with the rate and initial conversion terms to be set at pricing.
Sable said it plans to use proceeds from the stock sale and note offering, together with money from a previously announced new senior secured term loan, to repay its senior secured term loan with Exxon Mobil, cover transaction fees and expenses, and fund general corporate purposes.
The new term loan, the stock offering and the note offering are all cross-conditioned, meaning each deal will close only if all of them close. The market has reacted to these announcements by moving the company's shares -3.41% to a price of $4.25. For more information, read the company's full 8-K submission here.
