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AST SpaceMobile to Offer $850 Million in Convertible Notes Due 2036; Shares Fall After Hours

BY MT Newswires | CORPORATE | 10/21/25 05:23 PM EDT

05:23 PM EDT, 10/21/2025 (MT Newswires) -- AST SpaceMobile (ASTS) plans a private offering of $850 million in convertible senior unsecured notes due 2036 to institutional buyers.

Initial purchasers will have a 13-day option to buy up to an additional $150 million of the notes, the company said Tuesday in a statement. Net proceeds will be used for general corporate purposes.

Concurrently with the pricing of the offering, AST SpaceMobile (ASTS) expects to repurchase up to $50 million of its 4.25% convertible senior notes due 2032 through privately negotiated transactions with a limited number of holders. The repurchase will be funded using proceeds from a registered direct offering of Class A shares and cash on hand.

The company's shares fell 7.4% in after-hours trading.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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