Sable Offshore Corp. said it plans to raise $400 million through two separate public offerings: $100 million of common stock and $300 million of convertible senior notes due 2031.
The company also expects to give underwriters 30-day options to buy up to an additional $15 million of stock and up to an additional $45 million of notes to cover overallotments, which would bring the total potential proceeds to $460 million.
Sable said it intends to use the proceeds from the stock sale and note offering, along with money from a previously announced new senior secured term loan, to pay off its senior secured term loan with Exxon Mobil Corp., cover transaction fees and expenses, and fund general corporate purposes.
The new loan, the stock offering and the note offering are all cross-conditioned, meaning each deal will close only if the others do as well.
The notes will mature on July 1, 2031. Sable said noteholders will be able to convert under certain circumstances and during specified periods, while the company will have the option to redeem the notes beginning July 6, 2029 if its share price stays above 175% of the conversion price for a required period.
The company said noteholders could require repurchase of the notes if a fundamental change occurs, and also on July 6, 2029, at par plus accrued interest. 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.
