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Sable Offshore shares sold and convertible notes issued after support miss
The company priced 32,467,533 common shares at $3.08 and issued $300 million of 6.5% convertible senior notes due 2031, with underwriters given options to buy more.
Sable Offshore Corp. (NYSE: SOC) carried out a new round of public financing after it failed to secure government support, including both share sales and convertible debt, according to details the company shared earlier in July and covered by Yahoo Finance.
The offerings included 32,467,533 common shares priced at $3.08 per share, alongside the issuance of 6.5% convertible senior notes with a $300 million principal amount due in 2031. The company also provided underwriters a one-month option to purchase up to an additional 4,870,129 common shares and up to $45 million more in notes to cover excess allotments.
The notes are set as senior unsecured liabilities, with interest accruing at 6.5% per year and payable semi-annually. The starting conversion rate is 249.7502 shares per $1,000 face value, implying an estimated conversion price of $4 per share and a premium of about 30% over the public offering rate.
In a separate development, Jefferies reduced its price target for Sable Offshore from $24 to $11 on July 6 but kept a Buy rating, citing upside potential of more than 180% despite dilution tied to the convertible notes offering, as described by Yahoo Finance.