AST SpaceMobile Announces Pricing of Private Offering of $400.0 Million of Convertible Senior Notes Due 2032
AST SpaceMobile (NASDAQ: ASTS) has announced the pricing of $400.0 million convertible senior notes due 2032 in a private offering to qualified institutional buyers. The notes will have a 4.25% annual interest rate and an initial conversion price of $26.99 per share, representing a 20% premium over the last reported stock price.
The company expects net proceeds of approximately $387.9 million (or $446.3 million if the initial purchasers' option is exercised). About $38.7 million will be used for capped call transactions, with the remainder allocated to working capital and general corporate purposes.
The notes include capped call transactions with an initial cap price of $44.98 per share, designed to reduce potential dilution and offset cash payments upon conversion. The notes will mature on March 1, 2032, unless earlier converted, redeemed, or repurchased.
AST SpaceMobile (NASDAQ: ASTS) ha annunciato il prezzo delle note senior convertibili da 400,0 milioni di dollari in scadenza nel 2032 in un'offerta privata destinata a investitori istituzionali qualificati. Le note avranno un tasso di interesse annuo del 4,25% e un prezzo di conversione iniziale di 26,99 dollari per azione, che rappresenta un premio del 20% rispetto all'ultimo prezzo di mercato riportato.
L'azienda prevede proventi netti di circa 387,9 milioni di dollari (o 446,3 milioni di dollari se l'opzione degli acquirenti iniziali viene esercitata). Circa 38,7 milioni di dollari saranno utilizzati per transazioni di capped call, mentre il restante sarà destinato a capitale circolante e scopi aziendali generali.
Le note includono transazioni di capped call con un prezzo di cap iniziale di 44,98 dollari per azione, progettate per ridurre la potenziale diluizione e compensare i pagamenti in contante alla conversione. Le note scadranno il 1° marzo 2032, salvo conversioni, riscatti o riacquisti anticipati.
AST SpaceMobile (NASDAQ: ASTS) ha anunciado el precio de notas senior convertibles por 400,0 millones de dólares con vencimiento en 2032 en una oferta privada para compradores institucionales calificados. Las notas tendrán una tasa de interés anual del 4,25% y un precio de conversión inicial de 26,99 dólares por acción, lo que representa un 20% de prima sobre el último precio de la acción reportado.
La compañía espera ingresos netos de aproximadamente 387,9 millones de dólares (o 446,3 millones de dólares si se ejerce la opción de los compradores iniciales). Aproximadamente 38,7 millones de dólares se destinarán a transacciones de capped call, mientras que el resto se asignará a capital de trabajo y fines corporativos generales.
Las notas incluyen transacciones de capped call con un precio de cap inicial de 44,98 dólares por acción, diseñadas para reducir la posible dilución y compensar los pagos en efectivo al momento de la conversión. Las notas vencerán el 1 de marzo de 2032, a menos que se conviertan, rediman o recompren antes.
AST SpaceMobile (NASDAQ: ASTS)는 4억 달러 규모의 전환 가능 선순위 채권을 2032년 만기로 자격이 있는 기관 투자자들에게 비공식적으로 제공한다고 발표했습니다. 이 채권은 연 4.25%의 이자율과 주당 26.99달러의 초기 전환 가격을 가지며, 이는 마지막 보고된 주가에 비해 20% 프리미엄을 나타냅니다.
회사는 약 3억 8790만 달러의 순수익이 기대되며 (초기 구매자의 옵션이 행사될 경우 4억 4630만 달러). 약 3870만 달러는 capped call 거래에 사용될 것이며, 나머지는 운영 자본 및 일반 기업 용도로 배정됩니다.
이 채권은 주당 44.98달러의 초기 캡 가격을 가진 capped call 거래를 포함하며, 이는 잠재적 희석을 줄이고 전환 시 현금 지급을 상쇄하기 위해 설계되었습니다. 이 채권은 2032년 3월 1일 만기되며, 그 전에 전환되거나 상환되거나 재매입되지 않는 한 만료됩니다.
AST SpaceMobile (NASDAQ: ASTS) a annoncé le prix de notes senior convertibles de 400,0 millions de dollars arrivant à échéance en 2032 dans le cadre d'une offre privée destinée à des acheteurs institutionnels qualifiés. Les notes auront un taux d'intérêt annuel de 4,25% et un prix de conversion initial de 26,99 dollars par action, représentant une prime de 20% par rapport au dernier prix de l'action rapporté.
L'entreprise s'attend à des produits nets d'environ 387,9 millions de dollars (ou 446,3 millions de dollars si l'option des acheteurs initiaux est exercée). Environ 38,7 millions de dollars seront utilisés pour des transactions de capped call, le reste étant alloué au fonds de roulement et à des fins d'entreprise générales.
Les notes comprennent des transactions de capped call avec un prix de cap initial de 44,98 dollars par action, conçues pour réduire la dilution potentielle et compenser les paiements en espèces lors de la conversion. Les notes arriveront à échéance le 1er mars 2032, sauf si elles sont converties, remboursées ou rachetées auparavant.
AST SpaceMobile (NASDAQ: ASTS) hat die Preisgestaltung von 400,0 Millionen Dollar wandlungsfähigen vorrangigen Anleihen mit Fälligkeit im Jahr 2032 im Rahmen eines privaten Angebots für qualifizierte institutionelle Käufer bekannt gegeben. Die Anleihen werden einen vorausgehenden Zinssatz von 4,25% und einen anfänglichen Umwandlungspreis von 26,99 Dollar pro Aktie haben, was einem Aufschlag von 20% auf den zuletzt gemeldeten Aktienkurs entspricht.
Das Unternehmen erwartet Nettomittel in Höhe von etwa 387,9 Millionen Dollar (oder 446,3 Millionen Dollar, wenn die Option der ursprünglichen Käufer ausgeübt wird). Rund 38,7 Millionen Dollar werden für begrenzte Call-Transaktionen verwendet, während der Rest für das Betriebskapital und allgemeine Unternehmenszwecke bereitgestellt wird.
Die Anleihen beinhalten begrenzte Call-Transaktionen mit einem anfänglichen Höchstpreis von 44,98 Dollar pro Aktie, die darauf abzielen, eine mögliche Verwässerung zu reduzieren und Barzahlungen bei der Umwandlung auszugleichen. Die Anleihen laufen am 1. März 2032 ab, es sei denn, sie werden zuvor umgewandelt, eingelöst oder zurückgekauft.
- Secured significant funding of $400 million through convertible notes offering
- Implemented capped call transactions to minimize potential share dilution
- Favorable conversion premium of 20% above current stock price
- Strong interest rate terms at 4.25% annually
- Potential future dilution if notes are converted to common stock
- Additional long-term debt obligation of $400 million
- Interest payments will increase cash outflow by $17 million annually
Insights
AST SpaceMobile's $400 million convertible notes offering marks a strategic move to secure substantial funding while managing potential dilution. The
The terms reveal thoughtful financial engineering: The
Breaking down the strategic implications:
- The 2032 maturity provides extended financial flexibility during the critical network deployment phase
- The capped call structure, costing
$38.7M , acts as a dilution shield, protecting existing shareholders while still offering conversion upside to noteholders - The timing suggests management's confidence in the company's growth trajectory, with the conversion premium indicating expected value appreciation
For context, this financing provides AST SpaceMobile with substantial working capital to advance its space-based cellular network development without immediately diluting existing shareholders. The structure allows the company to access capital at a reasonable cost while maintaining operational flexibility through the cash settlement option for conversions.
The market dynamics of this offering reveal sophisticated positioning by AST SpaceMobile. The capped call transactions create an interesting market mechanism that warrants attention. When option counterparties hedge their positions, we typically see short-term trading activity that can affect stock price movements, particularly during the initial hedge establishment period.
From a market perspective, several elements stand out:
- The
100% premium on the cap price signals strong institutional confidence in AST SpaceMobile's upside potential - The conversion premium of
20% aligns with market standards while providing adequate upside potential for noteholders - The redemption option after March 2029 at
130% of conversion price provides flexibility for early refinancing if market conditions improve
The timing of this offering is particularly strategic, capitalizing on the company's recent market momentum and current investor interest in space-based communications infrastructure. The structure allows AST SpaceMobile to secure long-term capital while maintaining significant upside potential for both existing shareholders and new investors. The hedging activities by option counterparties could create near-term trading volatility, but the overall framework suggests a well-designed balance between capital needs and market dynamics.
Key Elements of the Transaction:
-
$400.0 million 4.25% convertible senior notes offering with an initial conversion price of approximately$26.99 20.0% to the last reported sale price of AST SpaceMobile’s Class A common stock on January 22, 2025; -
Capped call transactions entered into in connection with the pricing of the notes with an initial cap price of
$44.98 100% to the last reported sale price of AST SpaceMobile’s Class A common stock on January 22, 2025
Option to Purchase Additional Notes:
AST SpaceMobile also granted the initial purchasers of the notes in the offering an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional
Use of Proceeds:
AST SpaceMobile estimates that the net proceeds from the offering will be approximately
Additional Details of the Notes:
The notes will be senior, unsecured obligations of AST SpaceMobile. The notes will accrue interest at an annual rate of
Prior to the close of business on the business day immediately preceding December 1, 2031, noteholders will have the right to convert their notes only upon the satisfaction of specified conditions and during certain periods. On or after December 1, 2031 and until the close of business on the second scheduled trading day immediately preceding March 1, 2032, noteholders may convert their notes at any time regardless of these conditions. The initial conversion rate will be 37.0535 shares of AST SpaceMobile’s Class A common stock per
The notes will not be redeemable at AST SpaceMobile’s option prior to March 6, 2029. AST SpaceMobile may, at its option, redeem all or any portion of the notes for cash on or after March 6, 2029, but only if the last reported sale price per share of AST SpaceMobile’s Class A common stock equals or exceeds
Noteholders will have the right to require AST SpaceMobile to repurchase for cash all or a portion of their notes upon the occurrence of a fundamental change (as defined in the indenture governing the notes) at a purchase price of
Capped Call Transactions:
In connection with the pricing of the notes, AST SpaceMobile entered into capped call transactions with certain of the initial purchasers of the notes or affiliates thereof (the “option counterparties”). The capped call transactions cover, subject to customary adjustments, the number of shares of AST SpaceMobile’s Class A common stock initially underlying the notes. The capped call transactions are expected generally to reduce the potential dilution to AST SpaceMobile’s Class A common stock upon any conversion of notes and/or offset any cash payments AST SpaceMobile is required to make in excess of the principal amount of converted notes, as the case may be, with such reduction and/or offset subject to a cap. The cap price of the capped call transactions is initially
In connection with establishing their initial hedges of the capped call transactions, AST SpaceMobile expects the option counterparties or their respective affiliates will enter into various derivative transactions with respect to AST SpaceMobile’s Class A common stock and/or purchase shares of AST SpaceMobile’s Class A common stock concurrently with or shortly after the pricing of the notes, including with, or from, as the case may be, certain investors in the notes. This activity could increase (or reduce the size of any decrease in) the market price of AST SpaceMobile’s Class A common stock or the notes at that time.
In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to AST SpaceMobile’s Class A common stock and/or purchasing or selling AST SpaceMobile’s Class A common stock or other securities of AST SpaceMobile in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so during the 20 trading day period beginning on the 21st scheduled trading day prior to the maturity date of the notes, or, to the extent AST SpaceMobile exercises the relevant termination election under the capped call transactions, following any repurchase, redemption or conversion of the notes). This activity could also cause or avoid an increase or a decrease in the market price of AST SpaceMobile’s Class A common stock or the notes, which could affect a noteholder’s ability to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of notes, it could affect the number of shares, if any, and value of the consideration that a noteholder will receive upon conversion of its notes.
The notes are only being offered and will only be sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act by means of a private offering memorandum. Neither the notes nor the shares of AST SpaceMobile’s Class A common stock potentially issuable upon conversion of the notes, if any, have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of the notes or any shares of AST SpaceMobile’s Class A common stock potentially issuable upon conversion of the notes and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.
About AST SpaceMobile
AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.
Forward-Looking Statements
This communication contains “forward-looking statements” that are not historical facts, including statements concerning the completion of the offering, the potential effects of entering into the capped call transactions, and the expected use of the net proceeds from the offering. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Such risks include, but are not limited to, whether AST SpaceMobile will consummate the offering, prevailing market conditions, the anticipated use of the net proceeds from the offering, which could change as a result of market conditions or for other reasons, the impact of general economic, industry or political conditions in
AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250122193647/en/
Investor Contact:
Scott Wisniewski
investors@ast-science.com
Media Contacts:
Allison
Eva Murphy Ryan
917-547-7289
AstSpaceMobile@allisonpr.com
Source: AST SpaceMobile, Inc.
FAQ
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