AST SpaceMobile plans $300 million convertible note repurchase program

AST SpaceMobile Inc. (NASDAQ: ASTS) announced plans to repurchase up to $300 million of its existing convertible senior notes through two registered direct offerings of Class A common stock.

The company intends to repurchase up to $50 million of its 4.25% convertible senior notes due 2032 and up to $250 million of its 2.375% convertible senior notes due 2032. AST SpaceMobile will fund these repurchases using proceeds from concurrent registered direct stock offerings and cash on hand.

The repurchases will be conducted through privately negotiated transactions with a limited number of noteholders. Terms will depend on various factors including the market price of AST SpaceMobile's Class A common stock and trading prices of the notes at the time of repurchase.

AST SpaceMobile plans to offer shares of its Class A common stock to holders of the existing notes participating in the repurchases through two separate registered direct offerings. The number of shares and price per share will be determined at the time of each offering's pricing.

UBS Investment Bank serves as placement agent and financial advisor, while ICR Capital LLC acts as financial advisor for the placements.

The company warned that noteholders participating in the repurchases may engage in substantial trading activities or derivative transactions involving AST SpaceMobile's stock, which could adversely affect the stock's trading price.

In a separate transaction, AST SpaceMobile announced plans to offer $1 billion in new convertible senior notes due 2036 in a private placement to qualified institutional buyers. The completion of the stock offerings and note repurchases is not contingent on the new convertible notes offering.

The transactions are subject to market conditions and closing requirements that may not be satisfied. AST SpaceMobile provided no assurance regarding how many notes will be repurchased or the final terms.

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