AST SpaceMobile Inc. (NASDAQ:ASTS) is trending Friday after a rough few days for the stock that began Wednesday, when the company announced the pricing of $1.0 billion in convertible senior notes. The company also disclosed a delay in the launch of its commercial satellite service.
- AST SpaceMobile stock is trading near recent lows. Where are ASTS shares going?
$1B Convertible Notes Priced
AST SpaceMobile priced $1.0 billion in aggregate principal amount of 1.625% convertible senior notes due 2034 in a private offering to qualified institutional buyers. The notes carry an initial conversion price of approximately $79.57 per share — a 20% premium over the company’s July 15 closing price of $66.31.
The company also entered into capped call transactions with an initial cap price of $149.20 per share, a 125% premium over the same reference price, designed to reduce potential dilution upon conversion. The sale is expected to settle July 20, with initial purchasers holding an option to buy up to an additional $150 million in notes within 13 days of issuance.
AST SpaceMobile expects net proceeds of approximately $983.6 million, with $96.9 million earmarked to pay for the capped call transactions. The company plans to use the remaining proceeds to pursue growth initiatives and secure additional access to orbit for its space-based cellular broadband network, including potential partnerships or acquisitions to vertically integrate its business and reduce reliance on third-party launch providers. AST SpaceMobile said it currently has no agreements in place for any such transactions.
Commercial Launch Delayed to 2027
In the same regulatory filing, AST SpaceMobile disclosed it is pushing back the launch of its commercial Direct-to-Device service from late 2026 to early 2027, now targeting approximately 45 satellites in orbit by early 2027 rather than the 45 to 60 previously planned by year-end. The delay follows a Blue Origin New Glenn launchpad explosion during a hot-fire test in late May, compounding an earlier upper-stage failure that resulted in the loss of the BlueBird 7 satellite. To keep its constellation buildout on track, AST SpaceMobile has pivoted to SpaceX Falcon 9 rockets for its next three satellites — BlueBirds 11, 12, and 13 — targeting a launch in August.
AST SpaceMobile Shares Trade Lower
ASTS Price Action: At the time of publication, AST SpaceMobile shares are trading 1.33% lower at $54.28, according to data from Benzinga Pro.
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