AST SpaceMobile Closes Private Offering
Strengthens Balance Sheet With Over $1.5 Billion in Pro Forma Cash
AST SpaceMobile has 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.
“This successful financing meaningfully strengthens our company resources above $1.5 billion in cash."
Abel Avellan, AST SpaceMobile
As 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.
“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.
“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,” said Scott Wisniewski, AST SpaceMobile president.
AST 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 use the net proceeds of the Registered Direct Offering, together with cash on hand of approximately $0.9 million, to repurchase $135.0 million principal amount of its outstanding 4.25% convertible senior notes due 2032 (the “Repurchase”), removing approximately $37.8 million of remaining interest on such repurchased notes. Both the closing of the Registered Direct Offering and the Repurchase are expected to take place on or about July 31, 2025. The transactions are cross-conditional. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any shares of AST SpaceMobile’s Class A common stock. This press release does not constitute an offer to buy, or a solicitation of any offer to sell, any 4.25% convertible senior notes due 2032.