AST SpaceMobile Refinances with New Equity and Debt

AST SpaceMobile (NASDAQ: ASTS) fell 5.16% to $71.48 premarket Wednesday after announcing a refinancing plan involving both new share issuance and a $1 billion convertible note offering, marking a significant capital restructuring effort.

The move introduces additional shareholder dilution but aims to reduce future interest expenses and extend debt maturity.

Equity Issuance and Debt Buyback

The company said it will issue 2 million new shares at $78.61 per share, raising proceeds to repurchase $50 million of its $100 million senior convertible notes due 2032 (coupon: 4.25%).
While the repurchase helps reduce near-term debt, the share issuance represents a dilutive event for existing shareholders.

New $1B Convertible Note Offering

Separately, AST SpaceMobile launched a convertible senior notes offering, which was upsized to $1 billion due to investor demand.
Key details:

Coupon rate: 2%
Maturity: 2036
Initial conversion price: ~$96.30 per share (~20% premium to Tuesday’s close)
Optional additional issuance: up to $150 million

If fully converted, the offering could add approximately 10.4 million new shares, increasing total outstanding shares from 274.6 million to ~285 million.

Use of Proceeds

AST SpaceMobile said proceeds will fund:

General corporate purposes
Deployment of its global satellite constellation
Debt refinancing and liquidity enhancement

The company retains flexibility to settle conversions in cash, stock, or both.

Investor Reaction and Outlook

Investors reacted negatively to the near-term dilution and added leverage, sending shares lower in early trading.
However, analysts note the move reduces high-interest debt and extends capital runway, supporting long-term network expansion.

AST SpaceMobile remains focused on deploying its space-based cellular broadband network, designed to connect smartphones directly to satellites without ground infrastructure.