Sable Offshore Corp. said it plans to raise $400 million through separate offerings of common stock and convertible senior notes, while also lining up a new senior secured term loan.
The company intends to sell $100 million of common stock and $300 million of convertible senior notes due 2031. It also expects underwriters to have 30-day over-allotment options for up to an additional $15 million of stock and $45 million of notes.
The financing package is tied together: Sable said the new term loan, the stock sale and the notes offering are all cross-conditioned, meaning each deal will close only if all three close.
Sable said it plans to use the proceeds, along with the term loan, to repay its senior secured term loan with Exxon Mobil Corp., cover transaction fees and expenses, and fund general corporate purposes.
The notes would mature on July 1, 2031. They would pay interest semi-annually and could be converted under certain circumstances. Sable would have the option to redeem them for cash starting July 6, 2029, if its share price tops 175% of the conversion price for a specified period and other conditions are met.
The company also said noteholders could force a repurchase if there is a fundamental change, and could require repurchase on July 6, 2029, at principal plus accrued interest.
J.P. Morgan is the sole book-running manager for both offerings. Following these announcements, the company's shares moved -3.41%, and are now trading at a price of $4.25. If you want to know more, read the company's complete 8-K report here.
