AST SpaceMobile Inc. priced a private offering of $1.0 billion of 2.250% convertible senior notes due 2036 on February 11, 2026, targeting qualified institutional buyers under Rule 144A. The notes carry a semi‑annual interest rate of 2.25% and mature on April 15, 2036, with an initial conversion price of approximately $116.30 per share, a 20% premium to the February 11 closing price of $96.92. Purchasers also received an option to buy an additional $150 million of notes, potentially raising total proceeds to $1.15 billion.
The company estimates net proceeds of about $983.7 million from the initial offering, or roughly $1.131 billion if the option is exercised in full, after deducting discounts, commissions and other expenses. These funds will be used to accelerate the deployment of controlled spectrum bands, monetize its technology for artificial‑intelligence opportunities, reduce higher‑interest debt, and pursue opportunistic investments to advance the SpaceMobile Service.
In addition to the new notes, AST SpaceMobile will repurchase up to $300 million of its existing convertible senior notes due 2032 – $50 million of 4.25% notes and $250 million of 2.375% notes – through registered direct equity offerings. The repurchase reduces the company’s higher‑interest debt load and improves its balance‑sheet profile, while the equity issuances provide the capital needed for the buyback.
Investor sentiment was subdued following the announcement, largely because the convertible notes and the equity issuances raise the potential for future share dilution. Market participants focused on the dilution risk rather than the strategic benefits of the financing package.
The financing comes at a time when AST SpaceMobile has successfully deployed its BlueBird 6 satellite, a milestone that validates the company’s technology and supports its planned satellite launch cadence. The new capital will help the firm expand its spectrum holdings, accelerate network build‑out, and explore AI monetization opportunities, positioning it to compete with other satellite‑to‑device providers such as Starlink and Project Kuiper.
The combination of a sizable capital raise, a targeted debt repurchase, and a recent technical milestone underscores AST SpaceMobile’s commitment to scaling its satellite network while managing its capital structure, even as investors weigh the short‑term dilution implications of the convertible notes.
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