Flame Acquisition in a regulatory filing said it had secured an additional $10 million for its PIPE supporting the proposed merger with Sable Offshore, a Nova Scotia-based natural gas exploration consortium.
Total PIPE commitments now stand at $74.5 million.
As announced last November, the deal had an $883 million enterprise value. At that time, the SPAC said it intended to pursue PIPE subscriptions totalling up to $400 million. Flame has also secured a $623 million five-year term loan at 10% annual interest. The loan requires a $19 million deposit up front.
Sable has an agreement to acquire the Santa Ynez oil field in Federal waters off the California coast and associated onshore processing and pipeline assets from Exxon Mobil and Mobil Pacific Pipeline Company for $625 million. Read more.
