AST SpaceMobile prices $500 million convertible notes offering

AST SpaceMobile Inc. (NASDAQ: ASTS) announced the pricing of $500 million in convertible senior notes due 2032 in a private offering to qualified institutional buyers. The notes carry a 2.375% annual interest rate and an initial conversion price of approximately $72.07 per share, representing a 20% premium to the company's stock price of $60.06 on July 24, 2025.

The company entered into capped call transactions with an initial cap price of $120.12 per share, representing a 100% premium to the July 24 stock price. The sale is expected to settle on July 29, 2025, subject to customary closing conditions.

AST SpaceMobile granted initial purchasers an option to buy up to an additional $75 million in notes within 13 days of the initial issuance. The company estimates net proceeds of approximately $486.9 million, or $560 million if the option is exercised in full, after deducting fees and expenses.

The company plans to use $47 million of proceeds to pay for the capped call transactions, with remaining funds allocated for general corporate purposes. The notes will mature on October 15, 2032, and will be senior, unsecured obligations with interest paid semiannually.

Separately, AST SpaceMobile announced pricing of a registered direct offering of approximately 5.8 million shares at $60.06 per share, scheduled to settle July 31, 2025. The company intends to use those proceeds to repurchase $135 million of its existing 4.25% convertible senior notes due 2032.

AST SpaceMobile describes itself as building a space-based cellular broadband network accessible by standard smartphones for commercial and government applications, according to the press release.

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