AST SpaceMobile closes $575 million convertible notes offering

AST SpaceMobile Inc. (NASDAQ: ASTS) announced the closing of a $575 million private offering of convertible senior notes due 2032, according to a company statement.

The notes carry an effective conversion price of $120.12 per share and mature in seven years. Initial purchasers exercised their full option to purchase an additional $75 million in notes beyond the base offering.

The company purchased a capped call hedge to raise the effective conversion premium to 100% of AST SpaceMobile's stock price on July 24, 2025. This mechanism is designed to reduce potential dilution to existing shareholders to less than 1.5% at the effective conversion price.

AST SpaceMobile retains the option to settle conversions in cash, stock, or a combination of both. The company stated the financing brings its pro forma cash position to over $1.5 billion as of June 30, 2025.

Separately, the company announced a registered direct offering of approximately 5.8 million shares of Class A common stock. Proceeds from this offering, combined with existing cash, will fund the repurchase of $135 million in outstanding 4.25% convertible senior notes due 2032, eliminating approximately $37.8 million in remaining interest payments.

Both the registered direct offering and the note repurchase are expected to close on or about July 31, 2025. The transactions are cross-conditional.

AST SpaceMobile is developing a space-based cellular broadband network designed to work with standard mobile devices. The company is based in Midland, Texas.

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