Sable Offshore Corp. said June 30 it plans to raise a total of $400 million through separate public offerings of $100 million of common stock and $300 million of convertible senior notes due 2031.
The company also expects to give underwriters options to buy an additional $15 million of stock and $45 million of notes to cover over-allotments, which would lift the potential gross proceeds to $460 million.
Sable said the proceeds, along with money from a previously announced new senior secured term loan, will be used to repay its senior secured term loan with Exxon Mobil Corp., cover transaction fees and expenses, and fund general corporate purposes.
The notes will mature on July 1, 2031. Holders will be able to convert the notes in certain circumstances and during specified periods, while Sable will have the option to redeem the notes for cash starting July 6, 2029 if the stock price exceeds 175% of the conversion price for a specified period and other conditions are met.
If a fundamental change occurs, noteholders may require Sable to repurchase the notes for cash at principal plus accrued interest. Noteholders also may require repurchase on July 6, 2029 at principal plus accrued interest.
J.P. Morgan is the sole book-running manager for both offerings. As a result of these announcements, the company's shares have moved -3.41% on the market, and are now trading at a price of $4.25. For more information, read the company's full 8-K submission here.
