AST SpaceMobile closes $1.15B convertible notes offering at 1.625%

AST SpaceMobile, Inc. (NASDAQ: ASTS) has closed a $1.15 billion convertible senior notes offering due 2034, consisting of $1.0 billion in aggregate principal and an additional $150 million from the full exercise of an initial purchasers' option.

The notes carry a 1.625% interest rate. As part of the transaction, AST SpaceMobile purchased a capped call hedge, raising the effective conversion price to $149.20 per share, which the company says results in effective dilution of less than 2%. Settlement of the $150 million option notes is expected to occur July 22, 2026, subject to customary closing conditions.

The company said the offering brings its pro forma cash, cash equivalents, and restricted cash to over $3.8 billion as of June 30, 2026.

Andy Johnson, Chief Financial Officer of AST SpaceMobile, said in a statement: "The notes have our lowest coupon ever at 1.625% and have an effective conversion price of $149.20 per share, well above our all-time high stock price, providing cost-efficient capital with effective dilution of less than 2%."

AST SpaceMobile retains the option to settle any future conversions in cash, shares of Class A common stock, or a combination of both.

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