Sable Offshore Issues $345M Convertible Notes, Prices $100M Stock
Sable Offshore Corp. issued $345.0 million in 6.5% Convertible Senior Notes due 2031 and priced a concurrent public offering of $100.0 million in common stock. The company intends to use the net proceeds, along with a new senior secured term loan, to repay its existing Senior Secured Term Loan with Exxon Mobil Corporation and for general corporate purposes. The offerings are cross-conditioned. Operationally, the company has resumed production from 52 wells at 43,000 gross barrels of oil per day and plans further expansions. However, Sable faces multiple significant legal and regulatory challenges, including disputes with the California Coastal Commission, a lawsuit from Zaca Preserve LLC, and challenges from environmental groups against BSEE and BOEM approvals.
Key Highlights
- Issued $345.0 million aggregate principal amount of 6.5% Convertible Senior Notes due 2031.
- Priced $100.0 million common stock offering (32,467,533 shares at $3.08/share).
- Net proceeds from notes: ~$288.8 million; from common stock: ~$92.8 million.
- Proceeds to repay Senior Secured Term Loan with Exxon Mobil and for general corporate purposes.
- 52 of 77 wells online, producing ~43,000 gross barrels of oil per day.
- Ongoing legal disputes with California Coastal Commission, including a $18.0 million administrative penalty.
- Facing lawsuits from Zaca Preserve LLC, Center for Biological Diversity, and Wishtoyo Foundation.
- Evaluating $125.0 million Buoy Strategy and $475.0 million OS&T Strategy for oil sales.
Price Impact
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