Sable Offshore plans $400M in stock and note offerings

Sable Offshore Corp. (NYSE: SOC) announced plans to raise $100.0 million through a common stock offering and $300.0 million through convertible senior notes due 2031 in separate public offerings, according to a press release from the Houston-based oil and gas company.

The company also expects to grant underwriters a 30-day option to purchase up to an additional $15.0 million in common stock and up to $45.0 million in additional notes to cover over-allotments. J.P. Morgan is acting as sole book-running manager for both offerings.

The notes will be senior, unsecured obligations maturing July 1, 2031, with interest payable semi-annually. Sable may redeem the notes, in whole or in part, on or after July 6, 2029, provided the last reported sale price of its common stock exceeds 175% of the conversion price for a specified period. The interest rate, initial conversion rate, and other terms will be set at pricing.

Noteholders may require Sable to repurchase their notes upon certain corporate events constituting a fundamental change, or on July 6, 2029, at a cash price equal to principal plus accrued interest.

Sable intends to use proceeds from both offerings, along with a previously announced new senior secured term loan, to repay its existing senior secured term loan with Exxon Mobil Corporation, cover transaction fees and expenses, and fund general corporate purposes.

The three transactions — the new term loan, the stock offering, and the notes offering — are cross-conditioned, meaning each will only close if all three are completed. U.S. Bank Trust Company, N.A. is expected to serve as trustee for the notes.

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