AST SpaceMobile has announced a $500 million private offering of convertible senior notes due 2032, with an effective conversion price of $72.07 per share and capped at $120.12 per share. These 2.375% notes were priced at a 20% premium to the company's stock price as of July 24, 2025. Settlement of the offering is expected by July 29, subject to standard closing conditions.
As part of the by Clarence Oxford
Los Angeles CA (SPX) Jul 25, 2025
AST SpaceMobile has announced a $500 million private offering of convertible senior notes due 2032, with an effective conversion price of $72.07 per share and capped at $120.12 per share. These 2.375% notes were priced at a 20% premium to the company's stock price as of July 24, 2025. Settlement of the offering is expected by July 29, subject to standard closing conditions.
As part of the deal, AST SpaceMobile has also entered capped call transactions to reduce potential dilution. The company granted initial purchasers the option to acquire up to an additional $75 million in notes within 13 days of issuance.
Net proceeds are expected to total approximately $486.9 million, potentially rising to $560 million if the option is fully exercised. AST SpaceMobile will allocate around $47 million toward the capped call agreements and the remaining funds to general corporate needs.
In a parallel move, the company has priced a cash repurchase of $135 million in outstanding 4.25% convertible senior notes also due in 2032. This repurchase will be funded through a registered direct offering of approximately 5.8 million shares of Class A common stock to participating noteholders, scheduled to close on or around July 31, 2025. Following the repurchase, $100 million in existing notes will remain on the company's books.
The repurchase will eliminate roughly $135 million in debt and $37.8 million in interest obligations, while resulting in the issuance of approximately 0.8 million incremental shares. AST SpaceMobile will unreserve around 5 million shares linked to the repurchased notes for future issuance.
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