Press release
AST SpaceMobile Announces Closing of Private Offering of $575.0 Million of Convertible Senior Notes Due 2032
Strengthens balance sheet with over $1.5 billion in pro forma cash as of 6/30/25, including sales under the now terminated ATM facility Structured
About this update from Ast Spacemobile, Inc.
[{"type":"text","content":"\nStrengthens balance sheet with over $1.5 billion in pro forma cash as of 6/30/25, including sales under the now terminated ATM facility\n\n\nStructured efficiently with seven-year maturity and $120.12 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, and designed for both commercial and government applications, today announced the closing of $575.0 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 $75.0 million aggregate principal amount of notes.\n\n\n“This successful financing meaningfully strengthens our company resources above $1.5 billion in cash, positioning us to scale quickly with the deployment of the world’s first and only space-based cellular broadband network,” said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile. Scott Wisniewski, AST SpaceMobile President, added: “The notes pair a seven year maturity with an effective conversion price of $120.12 per share, balancing near-term funding needs with long-term shareholder value creation.”\n\n\nAs part of the transaction, AST SpaceMobile purchased a capped call hedge to increase the effective conversion premium to 100% of the last reported sale price of AST SpaceMobile’s Class A common stock on July 24, 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 $120.12 per share of AST SpaceMobile’s Class A common stock. The effective dilution to existing shareholders would be less than 1.5% at the effective conversion price. AST 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 of the notes.\n\n\nAST SpaceMobile also previously announced the pricing of a separate registered direct offering of approximately 5.8 million shares of its Class A common stock (the “Registered Direct Offering”). AST SpaceMobile intends to ...