Press release
AST SpaceMobile Announces Closing of Private Offering of $460.0 Million of Convertible Senior Notes Due 2032
Strengthens balance sheet with nearly $1 billion in pro forma cash to accelerate company manufacturing plan Structured efficiently with seven-year maturity
About this update from Ast Spacemobile, Inc.
[{"type":"text","content":"\nStrengthens balance sheet with nearly $1 billion in pro forma cash to accelerate company manufacturing plan\n\n\nStructured efficiently with seven-year maturity and $44.98 effective conversion price\n\n\n MIDLAND, Texas--(BUSINESS WIRE)--\nAST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, today announced the closing of $460.0 million aggregate principal amount of convertible senior notes due 2032 (the “notes”) including the exercise in full of the option granted to the initial purchasers to purchase up to $60.0 million aggregate principal amount of notes.\n\n\n“This successful financing enables us to accelerate our mission of delivering the world’s first space-based cellular broadband network,\" said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile. “With nearly $1 billion in cash on our balance sheet, we are now equipped to fast-track the production and launch of our revolutionary network.”\n\n\nScott Wisniewski, AST SpaceMobile President, added “The convertible offering was structured with an attractive 4.25% interest rate, significantly lower than previous debt funding, a seven-year maturity and an effective conversion price of $44.98 per share designed to minimize shareholder impact.”\n\n\nAs part of the transaction, AST SpaceMobile purchased a capped call hedge to increase the effective conversion premium to 100% of AST SpaceMobile’s share price on January 22, 2025. As a result of the related capped call transactions, dilution or cash obligations upon a conversion of the notes should be mitigated by the increase in the effective conversion price of the notes to $44.98 per share of AST SpaceMobile’s Class A common stock, which represents a premium of 100% over the last reported sale price of the AST SpaceMobile’s Class A common stock of $22.49 per share on January 22, 2025. As a result, the effective dilution to existing shareholders would be approximately 3% at the effective conversion price.\n\n\nAST SpaceMobile has the optionality to settle any conversions in cash, shares of its Class A common stock, or a combination of cash and shares to further influence potential dilution or cash obligations upon any future conversion o...