AST SpaceMobile, Inc. (NASDAQ: ASTS) has completed a $1.15 billion private offering of convertible senior notes, significantly bolstering its financial position heading into the second half of 2026.
The Midland, Texas-based company closed $1.0 billion in aggregate principal of 1.625% convertible senior notes due 2034, with initial purchasers exercising their full option to buy an additional $150 million in notes.
Settlement for the additional option notes is expected to occur on July 22, 2026, subject to customary closing conditions as outlined by the company.
The transaction leaves AST SpaceMobile with over $3.8 billion in pro forma cash, cash equivalents, and restricted cash as of June 30, 2026, substantially strengthening its balance sheet.
As part of the deal structure, the company purchased a capped call hedge that raises the effective conversion price to $149.20 per share, limiting potential shareholder dilution to less than 2%.
President Scott Wisniewski framed the financing as a strategic move to support the company’s broader ambitions in the space-based connectivity market.
“This financing allows us to pursue an expanding universe of growth opportunities, continue vertical integration, and secure additional access to orbit for our space-based cellular network,” said Scott Wisniewski, President of AST SpaceMobile.
Chief Financial Officer Andy Johnson highlighted the favorable terms of the deal, noting it represents the company’s most cost-efficient debt issuance to date.
Andy Johnson, Chief Financial Officer of AST SpaceMobile, added: “The notes have our lowest coupon ever at 1.625% and have an effective conversion price of $149.20 per share, well above our all-time high stock price, providing cost-efficient capital with effective dilution of less than 2%.”
AST SpaceMobile retains the flexibility to settle any future note conversions in cash, shares of its Class A common stock, or a combination of both, giving management additional tools to manage potential dilution.
The company is building what it describes as the first and only global space-based cellular broadband network designed to work directly with standard, unmodified mobile devices.
AST SpaceMobile’s network targets coverage for today’s nearly 6 billion mobile subscribers globally, with services spanning both commercial and government applications across 4G and 5G standards.
Shares of ASTS rose 10.31% following the announcement, reflecting strong investor confidence in the company’s capital raise and long-term growth trajectory.
