AST SpaceMobile slides on $1 billion convertible note offering, debt repurchase, and stock sale

AST SpaceMobile has slumped 8% in premarket trading after the company unveiled a trio of financing moves aimed at raising fresh capital to expand its satellite network while paying down existing, costlier loans.

After Wednesday’s close, the satellite network company said it intends to raise $1 billion through a private offering of convertible senior notes due in 2036 to qualified institutional buyers. Initial purchasers may also buy up to $150 million in additional notes by February 20, 2026. The proceeds will be used for general corporate purposes, including accelerating AST’s global satellite deployment, investing in US government space opportunities, and reducing higher-interest debt, per the release.

In a separate press release, AST also said it intends to repurchase up to $300 million of its existing convertible senior notes due in 2032, including $50 million of its 4.25% notes and $250 million of its 2.375% notes. The buybacks will be funded through concurrent issuances of class A common stock.

All transactions were “subject to market conditions and other factors,” the company added.

Earlier on Wednesday, AST shares had briefly climbed after the company announced it had successfully completed the “unfolding of its next-generation BlueBird 6 satellite.” However, the multilayered financing plan announced later in the day appears to have spooked investors, pushing the stock lower in after-hours trading and into today.