NEW YORK, July 16, 2026, 06:11 EDT
AST SpaceMobile, Inc. NASDAQ:ASTS has set terms for a $1 billion convertible bond, a type of debt that can convert to stock. The deal would bring its cash and restricted cash up to roughly $3.61 billion pro forma, only a 4.4% gain from March even after a $735.9 million second-quarter drop. Shares slid about 10% to $59.70 in premarket action Thursday.
Timing is key here as AST now aims to launch roughly 45 BlueBird satellites by early 2027, moving its target from the end of 2026, according to its latest filing. AST says it needs between 45 and 60 satellites for near-persistent service in its most important markets. Pushing back the target date means a longer wait before its network can offer wide commercial service.
Most of the money would go to backfill liquidity that moved off the balance sheet in the quarter. Based on released numbers, the bridge is as follows:
| Liquidity bridge | Amount |
|---|---|
| Cash and restricted cash as of March 31 | $3.459 billion |
| Preliminary balance at June 30 | $2.723 billion |
| Change in Q2 | -$0.736 billion (-21.3%) |
| Net proceeds from notes (estimated) | +$0.984 billion |
| Cost for capped calls | -$0.097 billion |
| Pro forma balance (simple) | $3.610 billion |
| Increase from March 31 | +$0.151 billion (+4.4%) |
The total leaves out the buyers’ extra $150 million option and doesn’t count any cash used after June 30. The number at quarter end isn’t audited and can still change. This is more of a top-up than a true reserve.
AST sees net proceeds of $983.6 million from the base deal and aims to spend $96.9 million on capped calls, a bank hedge used to limit dilution up to a certain price. That would leave $886.7 million. The preliminary June filing doesn’t break out unrestricted versus restricted cash, so the $735.9 million drop shouldn’t be taken as operating cash burn.
The new bond comes with a lower coupon than the $1 billion base deal AST closed in February. But since the initial conversion price is lower, investors get more potential share exposure per dollar.
| Term | February 2026 notes | July 2026 notes |
|---|---|---|
| Base principal | $1.0 billion | $1.0 billion |
| Annual coupon | 2.25% | 1.625% |
| Maturity | April 15, 2036 | February 1, 2034 |
| Initial conversion price | $116.30 | $79.57 |
| Gross shares per $1 billion at initial rate | 8.60 million | 12.57 million |
| Annual interest per $1 billion | $22.50 million | $16.25 million |
Each $1 billion of the July notes reduces yearly interest by $6.25 million but means around 46% more shares at the first conversion rate. AST can pay conversions in cash, stock or a mix. The capped call is set up to counter dilution up to $149.20 per share, but only up to that level.
The company said it may use the rest of the money to “secure additional access to orbit.” That could include partnerships or acquisitions to cut its dependence on other launch providers. No deal is in place for this. Based on exactly 90 satellites at the bottom of AST’s “over 90” range, direct materials and launch costs would come to $1.89 billion to $2.07 billion. That’s 52% to 57% of pro forma liquidity. The comparison does not include ground systems and ongoing operating costs, and some satellite spending is already done. This isn’t a runway projection. Business Wire
Japan could be a possible offset. AST said it is in advanced talks with its backer Rakuten Group, Inc. (TYO:4755) as RAST Co. has been picked for a potential subsidy of up to 148 billion yen, or roughly $1 billion. That total matches the bond principal, but the money is meant for a Japanese infrastructure project and isn’t cash AST can use now. The deal and joint venture talks are still pending, according to the filing.
Piper Sandler Companies NYSE:PIPR analyst Alexander Potter started coverage Wednesday with a Buy and set a $100 target, which is 50.8% higher than where AST closed that day. Shares fell before the bell after the bond pricing, as traders looked to funding and timing for the launch.
The balance-sheet bridge isn’t a forecast. June liquidity could change, satellite testing and rocket schedules set launch timing, and the Japanese subsidy isn’t guaranteed. AST’s initial satellite costs are higher than expected. If launches slow down or spending goes up, the extra funds will burn faster.
The notes are on track to settle July 20. With this deal, AST gets lower interest costs and extends funding to keep building, though recent numbers point to a slower rollout instead of a full network. Investors will be watching the full Q2 cash-flow update to see if the latest drop ties back to spending patterns.
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