AST SpaceMobile loses altitude on $1 bln convertible debt, direct stock offerings

Vodafone

12/02/2026 12:43

** AST SpaceMobile ASTS.O shares down 9.2% premarket at $87.97 after securing capital raise

** Midland, Texas-based satellite communications firm early Thurs announces pricing private offering of $1 bln 2.25% convertible bonds (CBs) due Apr 15, 2036

** Initial conversion price of $116.30 is 20% premium to stock's last close

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

** Also, ASTS issuing about 6.3 mln shares in concurrent direct offerings to repurchase $300 mln of its existing CBs due 2032

** UBS is placement agent and financial advisor and ICR Capital is advisor for placements

** ASTS, whose backers include Alphabet GOOGL.O, AT&T T.N and Vodafone VOD.L, has ~362 mln shares outstanding for $35 bln market cap

** Through Weds, shares up 33% YTD; Stock, which hit record intraday high of $129.89 last month, closed at $27.61 a year ago

** Avg rating of 12 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))