AST SpaceMobile descends on announcing $1 bln convertible, direct stock deals

Vodafone

11/02/2026 22:24

** AST SpaceMobile ASTS.O shares down 10.3% in extended trading to $87 as it seeks capital raise

** Midland, Texas-based firm announces private offering of $1 bln convertible bonds (CBs) due Apr 15, 2036

** It intends to use net offering proceeds for general purposes, including accelerating deployment of controlled spectrum bands on a global basis, enhancing investment in government space opportunities in the U.S., reducing higher interest debt, and pursuing opportunistic investments to accelerate its SpaceMobile service

** Co also unveils concurrent direct stock offerings to repurchase up to $300 mln of its existing CBs due 2032

** UBS acting as placement agent and financial advisor for stock placements

** With ~362 mln shares outstanding, ASTS has about $35 bln market cap

** ASTS shares on Weds closed up 0.7% at $96.92. Stock up 33% YTD and has more than tripled over the past 12 months

** ASTS backers include Alphabet GOOGL.O, AT&T T.N and Vodafone VOD.L

** Avg rating of 10 analysts is "hold"; median PT $85.44, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))