Sable Offshore Corp. said June 30 it plans to raise $400 million through separate public offerings of common stock and convertible senior notes due 2031, with an additional $60 million available if underwriters fully exercise their over-allotment options.
The company intends to sell $100 million of common stock and $300 million of convertible senior notes. The stock offering includes a 30-day option for underwriters to buy up to another $15 million of shares, while the notes offering carries a 30-day option for up to an additional $45 million of principal.
If fully exercised, the total capital raise would climb to $460 million.
J.P. Morgan is serving as sole book-running manager for both offerings.
The notes will mature on July 1, 2031. Sable said noteholders will have the right to convert under certain conditions and during specified periods, while the company will have the option to redeem the notes for cash beginning July 6, 2029, if its stock price trades above 175% of the conversion price for a specified period.
Sable said it plans to use the proceeds, together with money from a previously announced new senior secured term loan, to repay its senior secured term loan with Exxon Mobil Corp., cover transaction fees and expenses, and fund general corporate purposes.
The new term loan, the stock offering and the notes offering are all cross-conditioned, meaning each deal depends on the others closing. 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.
