Under the terms of the agreement, the maturity date is now set for July 24, or sooner should an event of default occur. To secure this extension, Sable Offshore must pay a $30 million amendment fee to Exxon Mobil on June 22. In exchange, the energy giant has agreed to waive a $25 million minimum liquidity covenant that had previously constrained the company's operations.
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Sable Offshore Extends Exxon Mobil Loan Terms
Sable Offshore shares climbed 11% to $8.97 on Wednesday after the company secured a critical amendment to its senior debt agreement with Exxon Mobil. The deal pushes back the loan's maturity date, providing the energy firm with essential breathing room as it restructures its financial obligations.
This relief allows Sable Offshore to scale back its plans for new financing. The company confirmed it will reduce the size of its previously proposed senior secured term loan to $775 million. By lowering its borrowing target, the firm aims to navigate its current capital requirements without the pressure of the liquidity mandate that had threatened its fiscal flexibility.
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