AST SpaceMobile tumbles on $1 bln convertible bond sale

AST SpaceMobile

16/07/2026 11:22

** AST SpaceMobile's ASTS.O shares tumble 10.5% before the bell on Thurs to $59.32, lowest since early Dec, after clinching capital raise
** Midland, Texas-based ASTS late Weds announced pricing private offering of $1 bln 1.625% convertible bonds due Feb 1, 2024
** Initial conversion price of $79.57 represents 20% premium to stock's last sale on Weds
** Co intends to use net proceeds for growth and secure additional access for its space-based cellular broadband network, including partnerships and/or acquisitions
** Also intends to use $96.9 mln of proceeds to pay cost of capped call transactions to offset potential dilution; initial cap price of $149.20 is 125% above stock's last close
** ASTS, whose backers include Alphabet GOOGL.O, AT&T T.N and Vodafone VOD.L, has about $25.7 bln market cap
** Through Weds, ASTS shares down ~9% YTD and off 50% from intraday record high of $133.86 hit on May 28
** 5 of 12 analysts rate the stock "buy", 5 rate "hold" and 2 recommend "sell"; median PT $83.56, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))