AST SpaceMobile plans $135 million convertible note repurchase

AST SpaceMobile Inc. (NASDAQ: ASTS) announced plans to repurchase up to $135 million of its 4.25% convertible senior notes due 2032 through cash funded by a concurrent registered direct offering of Class A common stock.

The satellite communications company intends to use gross proceeds from the stock offering to enter privately negotiated transactions with a limited number of holders of existing convertible notes. The repurchase terms will depend on factors including the market price of AST SpaceMobile's Class A common stock and the trading price of the existing notes at the time of repurchase.

AST SpaceMobile will offer Class A common stock shares to holders of existing notes participating in the repurchase through a direct placement registered under the Securities Act of 1933. The number of shares to be sold and price per share will be determined at pricing of the registered direct offering.

The company noted that certain holders participating in the repurchase may purchase or sell shares in the open market or enter derivative transactions to unwind hedge positions related to the existing notes. These activities may affect the trading price of AST SpaceMobile's Class A common stock, though the company cannot predict the magnitude or overall effect on its stock price.

Separately, AST SpaceMobile announced plans to offer $500 million of new convertible senior notes due 2032 in a private offering to qualified institutional buyers. The company intends to grant initial purchasers an option to purchase up to an additional $75 million of new notes.

The completion of the registered direct offering and repurchase is not contingent on completion of the new convertible notes offering. UBS Investment Bank is acting as placement agent and financial advisor, while ICR Capital LLC serves as financial advisor for the placement.

AST SpaceMobile is developing a space-based cellular broadband network designed to work directly with standard mobile devices for commercial and government applications.

You May Also Be Interested In

• Ambiq prices upsized public offering at $78 per share
• MoonLake prices $200 million public offering at $20 per share
• Selectis Health agrees to $5.75-per-share cash buyout by Black Pearl