JPMorgan Chase & Co. is currently in discussions with investors regarding the refinancing of a substantial loan for Sable Offshore Corp., an oil driller that received support from the Trump administration. The loan, which is nearing $1 billion, carries a high interest rate of 15% along with 20% amortization payments, according to individuals familiar with the private negotiations. Sable Offshore resumed selling crude in March after a hiatus of more than a decade.
The existing term loan from Exxon Mobil Corp. for Sable Offshore expired on June 26, prompting JPMorgan to seek new investors. The bank is reportedly finding it challenging to secure takers for this high-yield debt. This comes amidst a broader sentiment of caution among energy lenders, who are wary of potential market downturns and prefer that oil companies operate with less debt.
While this particular deal faces hurdles, JPMorgan has recently been active in other debt markets. In March 2026, the firm was preparing to assist issuers in selling billions of dollars in junk bonds and leveraged loans to finance buyouts. However, the current situation with Sable Offshore's debt suggests a more complex environment for certain types of high-risk energy financing.
