AST SpaceMobile has completed a private offering of $1 billion in convertible senior notes due in 2034 and confirmed that the initial purchasers exercised their option to acquire an additional $150 million of notes. Settlement of the additional notes was expected on July 22, 2026, subject to customary closing conditions.
The financing carries an annual interest rate of 1.625%, the lowest coupon AST SpaceMobile has secured on a convertible note offering, according to the company. The transaction is expected to increase its pro forma cash, cash equivalents and restricted cash to more than $3.8 billion as of June 30, 2026.
AST SpaceMobile plans to use the capital to pursue additional growth opportunities, continue vertically integrating its operations and secure greater access to satellite launch capacity. These investments will support the development of its planned space-based cellular broadband network.
The company is building a satellite network designed to provide 4G and 5G connectivity directly to standard, unmodified smartphones. Its technology is intended to serve both commercial mobile customers and government applications without requiring specialized satellite devices.
Convertible senior notes are debt securities that pay interest and may later be converted into common stock under specified conditions. This structure can provide a company with capital at a lower interest rate than conventional debt, although conversion may dilute existing shareholders.
AST SpaceMobile also purchased capped call transactions in connection with the offering. These financial instruments are intended to offset some of the dilution or cash obligations that could occur if investors convert their notes into shares.
The capped call arrangement increases the effective conversion price to $149.20 per share. AST SpaceMobile said that price is above its historical record share price and results in expected effective dilution of less than 2%.
The company retains the option to settle future conversions in cash, shares of its Class A common stock or a combination of both. This flexibility allows AST SpaceMobile to manage potential shareholder dilution and cash requirements based on its financial position when conversions occur.
The financing strengthens AST SpaceMobile’s balance sheet as it develops and deploys its satellite infrastructure. The company ultimately aims to provide space-based cellular broadband access to nearly six billion mobile subscribers globally.
Its ability to realize those plans will depend on factors including satellite manufacturing, launch availability, regulatory approvals, commercial partnerships and the successful deployment of its network.
KEY QUOTES:
“This financing allows us to pursue an expanding universe of growth opportunities, continue vertical integration, and secure additional access to orbit for our space-based cellular network.”
Scott Wisniewski, President of AST SpaceMobile
“The notes have our lowest coupon ever at 1.625% and have an effective conversion price of $149.20 per share, well above our all-time high stock price, providing cost-efficient capital with effective dilution of less than 2%.”
Andy Johnson, CFO of AST SpaceMobile
