Intel stock spikes after report of possible US government stake
MIDLAND, Texas - AST SpaceMobile, Inc. (NASDAQ:ASTS), currently valued at $18.11 billion, announced Tuesday the closing of $575 million in convertible senior notes due 2032, including the full exercise of the initial purchasers’ option to buy an additional $75 million in notes.
The space-based cellular broadband company reported that the financing strengthens its balance sheet to over $1.5 billion in pro forma cash as of June 30, 2025. The company’s strong liquidity position is reflected in its impressive current ratio of 10.62, according to InvestingPro data. The seven-year notes come with an effective conversion price of $120.12 per share following the company’s purchase of a capped call hedge that increases the effective conversion premium.
According to the company, the capped call transactions are designed to mitigate potential dilution, with effective dilution to existing shareholders expected to be less than 1.5% at the conversion price. AST SpaceMobile maintains the option to settle any conversions in cash, shares, or a combination of both.
In a separate transaction expected to close around July 31, 2025, AST SpaceMobile has priced a registered direct offering of approximately 5.8 million shares of Class A common stock. The company plans to use the proceeds, along with approximately $0.9 million in cash, to repurchase $135 million principal amount of its outstanding 4.25% convertible senior notes due 2032, which would eliminate approximately $37.8 million in remaining interest.
AST SpaceMobile is developing what it describes as the first global cellular broadband network in space designed to work directly with standard mobile devices.
The information in this article is based on a company press release statement.
In other recent news, AST SpaceMobile announced plans to offer $500 million in convertible senior notes due 2032. The company also plans to repurchase up to $135 million of its existing 4.25% convertible senior notes and will offer shares of Class A common stock to participating noteholders. Proceeds from the stock offering are intended to fund the note repurchases, with terms depending on market conditions. Additionally, AST SpaceMobile plans to use part of the proceeds from the new notes to fund capped call transactions, which aim to reduce potential dilution. The remainder of the funds will be allocated for general corporate purposes. Clear Street has initiated coverage on AST SpaceMobile with a Buy rating, setting a price target of $59.00. This rating reflects the firm’s view of AST SpaceMobile as a long-term growth opportunity. These developments highlight significant strategic financial maneuvers by AST SpaceMobile.
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