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