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MIDLAND, Texas - AST SpaceMobile, Inc. (NASDAQ:ASTS), which has seen its stock surge nearly 195% over the past six months to a market capitalization of $20.28 billion, announced Thursday its intention to repurchase up to $135 million of its 4.25% convertible senior notes due 2032 and to offer shares of Class A common stock to participating noteholders in a registered direct offering. According to InvestingPro data, the company maintains a strong liquidity position with current assets exceeding short-term obligations by over 10 times.
The space-based cellular broadband network company plans to use proceeds from the stock offering to fund the note repurchases. The terms of the repurchase will depend on market conditions, including the company’s stock price - currently trading near its 52-week high of $60.95 - and the trading price of the existing notes.
In a separate announcement, AST SpaceMobile revealed plans to offer $500 million in new convertible senior notes due 2032 through a private placement to qualified institutional buyers. The company will grant initial purchasers an option to buy up to an additional $75 million in notes.
UBS Investment Bank is acting as placement agent and financial advisor for the registered direct offering, with ICR Capital LLC serving as financial advisor.
The company cautioned that holders of the existing notes who participate in the repurchase may engage in various market activities, including buying or selling the company’s stock or entering derivative transactions, which could affect the stock’s trading price.
AST SpaceMobile noted that the registered direct offering and note repurchase are cross-conditional but not contingent on the completion of the new notes offering. The company will use cash on hand to cover transaction fees and expenses related to the registered direct offering.
The announcement was made through a press release statement filed with the Securities and Exchange Commission. With the stock’s notable volatility and current valuation levels, investors seeking deeper insights can access comprehensive analysis and 16 additional key ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, AST SpaceMobile announced plans to offer $500 million in convertible senior notes due 2032 in a private placement. The offering, which targets qualified institutional buyers, includes an option for initial purchasers to buy an additional $75 million in notes. The company intends to use part of the proceeds for capped call transactions to mitigate potential dilution, with the rest allocated for general corporate purposes. Additionally, AST SpaceMobile secured $100 million in non-dilutive equipment financing, led by Trinity Capital Inc., to support its manufacturing and network deployment goals. This financing will provide long-term liquidity through 2031, with $25 million already drawn at closing. Furthermore, Clear Street initiated coverage on AST SpaceMobile with a Buy rating and a $59.00 price target. The research firm views AST SpaceMobile as a long-term growth opportunity in the mobile sector, emphasizing its patented satellite technology. These developments highlight AST SpaceMobile’s strategic financial maneuvers and growth potential in its sector.
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