AST SpaceMobile Announces Proposed Private Offering of $400.0 Million of Convertible Senior Notes Due 2032
AST SpaceMobile (NASDAQ: ASTS) has announced plans to offer $400.0 million in convertible senior notes due 2032 through a private offering to qualified institutional buyers. The company will also grant initial purchasers an option to buy up to an additional $60.0 million in notes within 13 days of issuance.
The notes will be senior, unsecured obligations with semiannual interest payments and will be convertible into cash, Class A common stock, or a combination thereof. AST SpaceMobile plans to use part of the proceeds for capped call transactions to reduce potential dilution, with the remainder allocated to working capital and general corporate purposes.
The company expects to enter into capped call transactions with initial purchasers or their affiliates to offset potential dilution and cash payments above the principal amount of converted notes. These transactions may influence the market price of both the company's Class A common stock and the notes.
AST SpaceMobile (NASDAQ: ASTS) ha annunciato piani per offrire 400,0 milioni di dollari in note senior convertibili con scadenza nel 2032 tramite un'offerta privata a compratori istituzionali qualificati. L'azienda concederà anche ai compratori iniziali un'opzione per acquistare fino a ulteriori 60,0 milioni di dollari in note entro 13 giorni dall'emissione.
Le note saranno obbligazioni senior non garantite con pagamenti di interessi semestrali e potranno essere convertite in contante, azioni comuni di Classe A, o una combinazione di entrambi. AST SpaceMobile prevede di utilizzare parte dei proventi per transazioni di opzione capped call per ridurre la potenziale diluizione, con il resto destinato a capitale circolante e scopi aziendali generali.
L'azienda si aspetta di entrare in transazioni di opzione capped call con i compratori iniziali o le loro affiliate per compensare la potenziale diluizione e i pagamenti in contante al di sopra dell'importo principale delle note convertite. Queste transazioni potrebbero influenzare il prezzo di mercato sia delle azioni comuni di Classe A dell'azienda che delle note.
AST SpaceMobile (NASDAQ: ASTS) ha anunciado planes para ofrecer 400,0 millones de dólares en notas senior convertibles con vencimiento en 2032 a través de una oferta privada a compradores institucionales calificados. La compañía también otorgará a los compradores iniciales la opción de comprar hasta 60,0 millones de dólares adicionales en notas dentro de los 13 días posteriores a la emisión.
Las notas serán obligaciones senior no garantizadas con pagos de intereses semestrales y se podrán convertir en efectivo, acciones comunes de Clase A, o una combinación de ambos. AST SpaceMobile planea utilizar parte de los ingresos para transacciones de opción capped call para reducir la posible dilución, destinando el resto a capital de trabajo y fines corporativos generales.
La compañía espera realizar transacciones de opción capped call con compradores iniciales o sus afiliados para compensar la posible dilución y los pagos en efectivo por encima del monto principal de las notas convertidas. Estas transacciones podrían influir en el precio de mercado tanto de las acciones comunes de Clase A de la empresa como de las notas.
AST SpaceMobile (NASDAQ: ASTS)는 2032년 만기 convertible senior notes를 4억 달러 규모로 자격을 갖춘 기관 투자자를 대상으로 진행하는 사모 공모 계획을 발표했습니다. 이 회사는 또한 초기 매수자에게 발행일로부터 13일 이내에 추가로 6천만 달러의 노트를 구매할 수 있는 옵션을 부여할 것입니다.
이번 노트는 선순위, 담보 없는 의무로 반기별 이자 지급이 있으며 현금, A 클래스 보통주 또는 이들의 조합으로 전환될 수 있습니다. AST SpaceMobile은 수익금의 일부를 잠재적 희석을 줄이기 위한 capped call 거래에 사용할 계획이며, 나머지는 운영 자금 및 일반 기업 용도로 할당될 것입니다.
회사는 초기 매수자 또는 그 계열사와 capped call 거래를 체결하여 잠재적 희석과 변환 노트의 원금 이상의 현금 지급을 상쇄할 것으로 예상합니다. 이러한 거래는 회사의 A 클래스 보통주 및 노트의 시장 가격에 영향을 미칠 수 있습니다.
AST SpaceMobile (NASDAQ: ASTS) a annoncé des projets d'émission de 400 millions de dollars sous forme de notes senior convertibles arrivant à échéance en 2032 par le biais d'une offre privée à des acheteurs institutionnels qualifiés. La société accordera également aux premiers acheteurs une option d'achat de jusqu'à 60 millions de dollars de notes supplémentaires dans les 13 jours suivant l'émission.
Les notes seront des obligations senior non sécurisées avec des paiements d'intérêts semestriels et pourront être converties en espèces, en actions ordinaires de classe A, ou en une combinaison de ces deux options. AST SpaceMobile prévoit d'utiliser une partie des recettes pour des transactions d'option capped call afin de réduire la dilution potentielle, le reste étant affecté au fonds de roulement et aux besoins d'entreprise générale.
La société s'attend à conclure des transactions d'option capped call avec les premiers acheteurs ou leurs affiliés pour compenser la dilution potentielle et les paiements en espèces dépassant le montant principal des notes converties. Ces transactions pourraient influencer le prix de marché tant de l'action ordinaire de classe A de l'entreprise que des notes.
AST SpaceMobile (NASDAQ: ASTS) hat Pläne angekündigt, 400 Millionen US-Dollar in wandelbaren vorrangigen Anleihen mit Fälligkeit im Jahr 2032 über ein privates Angebot an qualifizierte institutionelle Käufer anzubieten. Das Unternehmen wird auch den ursprünglichen Käufern die Option gewähren, innerhalb von 13 Tagen nach der Emission bis zu zusätzlich 60 Millionen US-Dollar an Anleihen zu kaufen.
Die Anleihen werden vorrangige, unbesicherte Verbindlichkeiten mit halbjährlichen Zinszahlungen sein und können in Bargeld, Stammaktien der Klasse A oder eine Kombination daraus umgewandelt werden. AST SpaceMobile plant, einen Teil der Erlöse für capped call-Transaktionen zu verwenden, um eine potenzielle Verwässerung zu reduzieren, während der Rest für Betriebskapital und allgemeine Unternehmenszwecke verwendet wird.
Das Unternehmen erwartet, capped call-Transaktionen mit den ursprünglichen Käufern oder deren Tochtergesellschaften einzugehen, um potenzielle Verwässerungen und Barleistungen über den Nennbetrag der umgewandelten Anleihen auszugleichen. Diese Transaktionen könnten den Marktpreis sowohl der Stammaktien der Klasse A des Unternehmens als auch der Anleihen beeinflussen.
- Access to significant capital through $400M note offering
- Additional $60M option available to initial purchasers
- Implementation of capped call transactions to minimize dilution impact
- Flexible conversion terms (cash, stock, or combination)
- Potential dilution of existing shareholders upon conversion
- Addition of significant debt to balance sheet
- Market price volatility risk due to hedging activities
- Increased interest payment obligations
Insights
AST SpaceMobile's proposed
The implementation of capped call transactions is particularly noteworthy as it demonstrates management's commitment to protecting shareholder value. These transactions essentially act as an insurance policy against excessive dilution by establishing an upper limit on the potential conversion price. This sophisticated hedging strategy is commonly employed by high-growth technology companies to balance fundraising needs with shareholder interests.
For simplified understanding: Think of capped calls as putting a ceiling on how many shares the company might need to issue if the stock price rises significantly. This helps protect existing shareholders from excessive ownership dilution.
The market impact could manifest in several ways:
- Short-term: The stock may experience pressure due to hedging activities by option counterparties
- Medium-term: The additional capital strengthens AST's balance sheet and execution capabilities
- Long-term: The conversion feature creates potential future dilution, but the capped call structure helps mitigate this risk
With a current market cap of
This financing move is pivotal for AST SpaceMobile's ambitious goal of creating the first direct-to-smartphone satellite network. The space-based cellular broadband sector requires substantial capital investment for satellite development, launch operations and ground infrastructure. The
In simple terms: Building a space-based phone network is like constructing a cellular network, but instead of towers on the ground, the company puts them in space. This requires specialized satellites that can communicate directly with regular smartphones - a technically challenging feat that demands significant funding.
The successful deployment of this network could revolutionize global connectivity by:
- Eliminating cellular dead zones worldwide
- Providing emergency communications in disaster areas
- Enabling connectivity in remote regions without traditional infrastructure
The substantial funding requirement reflects both the complexity of the technology and the scale of infrastructure needed for global coverage. While the convertible note structure provides financial flexibility, it also indicates market confidence in AST's technical roadmap and commercial potential.
The notes will be senior, unsecured obligations of AST SpaceMobile, will accrue interest payable semiannually in arrears and will mature on March 1, 2032, unless earlier converted, redeemed or repurchased. The notes will be convertible into cash, shares of AST SpaceMobile’s Class A common stock, or a combination thereof, at AST SpaceMobile’s election. The interest rate, initial conversion rate, and other terms of the notes are to be determined upon pricing of the offering.
AST SpaceMobile intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions described below. AST SpaceMobile intends to use the remaining net proceeds from the offering for working capital or other general corporate purposes, which may include other strategic transactions. If the initial purchasers exercise their option to purchase additional notes, AST SpaceMobile expects to use a portion of the net proceeds from the sale of the additional notes to enter into additional capped call transactions with the option counterparties (as defined below), with the remainder of the net proceeds to be used for general corporate purposes as set forth in the preceding sentence.
In connection with the pricing of the notes, AST SpaceMobile expects to enter into capped call transactions with one or more of the initial purchasers of the notes or affiliates thereof and/or other financial institutions (the “option counterparties”). The capped call transactions will 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.
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 will only be offered and 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, timing, and size of the offering, the granting of a 13-day option to purchase additional notes, 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 offer the notes or consummate the offering, the final terms of the offering, prevailing market conditions, the anticipated principal amount of the notes, which could differ based upon 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/20250122941825/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
What is the size of AST SpaceMobile's (ASTS) convertible note offering?
When do the ASTS convertible notes mature?
How will ASTS use the proceeds from the convertible note offering?
What measures is ASTS taking to protect against stock dilution?
How can the ASTS convertible notes be converted?
