Sable Offshore prices stock and note offerings totaling ~$382M

Sable Offshore Corp. (NYSE: SOC) has priced concurrent public offerings of 32,467,533 shares of common stock at $3.08 per share and $300.0 million in aggregate principal amount of 6.5% convertible senior notes due 2031, according to a company press release.

The offerings are scheduled to settle on July 2, 2026, subject to customary closing conditions. Sable estimates net proceeds of approximately $92.8 million from the stock offering and approximately $288.8 million from the notes offering, after deducting underwriting discounts, commissions, and estimated expenses.

Underwriters have been granted 30-day options to purchase up to an additional 4,870,129 shares of common stock and up to an additional $45.0 million in notes to cover over-allotments. If fully exercised, net proceeds would total approximately $107.0 million from the stock offering and approximately $332.5 million from the notes offering.

The notes will carry an interest rate of 6.5% per annum, payable semi-annually, and will mature on July 1, 2031. The initial conversion price is approximately $4.00 per share, representing a 30% premium over the common stock offering price. Sable may redeem the notes on or after July 6, 2029, if its stock price exceeds 175% of the conversion price for a specified period.

Sable intends to use the combined proceeds from the stock offering, the notes offering, and a previously announced new senior secured term loan to repay its existing senior secured term loan with Exxon Mobil Corporation, pay transaction fees, and fund general corporate purposes. The three transactions are cross-conditioned, meaning each will close only if all are completed.

J.P. Morgan is acting as sole book-running manager for both offerings.

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