AST SpaceMobile Inc (NASDAQ: ASTS), which is developing the world’s first space-based cellular broadband network, said on Tuesday it has closed a $575 million private offering of convertible senior notes due in 2032, bolstering its liquidity position to over $1.5 billion.
The financing includes the full exercise of a $75 million option granted to initial purchasers, the company said in a statement. The proceeds will support AST’s continued build-out of its satellite-based mobile network, which is designed to connect directly to standard smartphones without the need for ground-based towers or special hardware.
“This successful financing meaningfully strengthens our company resources… positioning us to scale quickly,” said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile.
The notes carry a seven-year maturity and feature an effective conversion price of $120.12 per share, which represents a significant premium over the company’s stock price as of July 24, 2025. In conjunction with the offering, AST also purchased a capped call hedge to raise the effective conversion premium to 100%, reducing potential shareholder dilution to under 1.5%, the company said.
AST SpaceMobile retains the flexibility to settle conversions in cash, stock, or a mix of both, allowing it to manage future dilution and cash obligations.
The company also disclosed a separate registered direct offering of approximately 5.8 million shares of its Class A common stock. Proceeds from that transaction, along with roughly $0.9 million in cash on hand, will be used to repurchase $135 million of its outstanding 4.25% convertible senior notes due 2032. The move is expected to eliminate approximately $37.8 million in interest obligations.
Both the registered direct offering and the debt repurchase are expected to close around July 31, subject to cross-conditional completion.
The transactions come as AST SpaceMobile prepares for commercial deployment of its space-based network, targeting both commercial and government use cases.
