Sable Offshore plans to raise up to $450 million through a $100 million share sale, $300 million of 2031 convertible senior notes and overallotment options, triggering a 50% plunge in its shares. Its $775 million 15% fixed-rate term loan was downsized by $225 million due to weak demand.
Sable Offshore announced a capital raise of up to $450 million via a $100 million equity sale with a $15 million overallotment option, alongside a $300 million convertible senior note offering due 2031 and a $45 million notes overallotment. The financing plan coincided with a more than 50% share price decline, pushing the stock to record lows.
In parallel, the company sought a $775 million term loan at a 15% fixed interest rate but encountered weak demand, prompting a $225 million cut from the original target. The debt is priced at 97 cents on the dollar, carries a two-and-a-half-year maturity and remains open as the firm works with JPMorgan.
Proceeds from both financing initiatives will repay an upcoming loan to Exxon Mobil and support ongoing capital needs. The company restarted its Santa Ynez offshore pipeline in March after a decade-long shutdown and has resumed oil sales under the restored federal operating approval.
