Sable Offshore Shares Fall on Proposed Offerings of Common Stock, Convertible Senior Notes
By Kelly Cloonan
Shares of Sable Offshore declined after the company disclosed plans for offerings of its common stock and convertible senior notes as part of an effort to repay a loan from Exxon Mobil.
The stock slid 47% to $3.73 on Tuesday. Shares are down 59% year to date.
The oil and gas company said it plans to offer $100 million of common stock and $300 million of convertible senior notes due 2031 in separate public offerings.
The company expects to grant the underwriters of the common stock offering a 30-day option to purchase up to an additional $15 million of common stock, and to grant the underwriters of the notes offering a 30-day option to purchase up to an additional $45 million in notes, both to cover over-allotments. J.P. Morgan is acting as sole book-running manager for the offerings.
Sable said it plans to use the proceeds from the offerings, together with the proceeds from a previously announced new senior secured term loan, to repay a senior secured term loan with Exxon Mobil, as well as to pay transaction fees and expenses and for general corporate purposes.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
June 30, 2026 11:00 ET (15:00 GMT)
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