NEW YORK, July 15, 2026, 17:04 EDT
- AST SpaceMobile has put forward a $1 billion offering of convertible senior notes maturing in 2034, and could add another $150 million. The coupon and conversion rate are still to be determined.
- Preliminary cash and restricted cash was $2.723 billion at June 30, down from $3.459 billion at March 31. That’s a drop of around $736 million, or 21%.
- The stock finished the session down 3.7% at $66.31, before dropping a further 13.5% to $57.35 in after-hours trade.
AST SpaceMobile Inc. NASDAQ:ASTS is aiming to raise $1 billion in convertible debt as its early Q2 cash numbers dropped and the company pushed its planned deployment of roughly 45 BlueBird satellites to early 2027. The move doesn’t point directly to a cash crunch but more to AST trying to secure more control over its launch timeline, which is key for any commercial ramp-up.
The notes are due Feb. 1, 2034, and can convert into cash, Class A stock or a mix. Part of the money will go to capped call options, which can help limit dilution or extra cash payout over principal, but only to a point. AST said other proceeds could go to expansion, more orbital access, or deals for partnerships or buyouts meant to lower its use of outside launch partners. The company has no current deals in place for any of those.
Cash dropped sharply. Starting from the March 31 balance, liquidity slipped $735.9 million in Q2. The base deal would put back about 136% of that amount, moving gross cash and restricted cash to around $3.723 billion before fees, capped-call charges or new spending.
| Metric | March 31 filing | July 15 update | Base-deal illustration |
|---|---|---|---|
| Cash and restricted cash | $3.459 billion | $2.723 billion, preliminary | $3.723 billion |
| Change from March 31 | — | -$735.9 million, or -21.3% | +$264.1 million, or +7.6% |
| Timing for about 45 satellites | End of 2026 | Early 2027 | No further change stated |
If the entire $150 million option is exercised, the cash illustration bumps up to $3.873 billion. Neither illustration includes offering costs, capped-call expenses, or cash flows after June 30.
AST didn’t see much of a bump from the added flexibility. Shares ended regular trading at $66.31, then slid to $57.35 after hours. At the close, the base principal worked out to about 5.2% of AST’s $19.3 billion market cap; the full option would put it near 6.0%. The capped call gives some downside cover, though its final cap and cost won’t be clear until pricing.
This is AST’s fifth convertible deal since January 2025 and the second $1 billion issue in five months. Total gross principal sold or planned since then comes to $4.26 billion before this new option. Repurchases brought down the outstanding convertibles to about $2.554 billion as of March 31, so the main deal would lift that by around 39%, not counting any Q2 moves.
| Convertible series | Principal issued or proposed | Coupon | Maturity | Principal remaining at March 31, or proposed |
|---|---|---|---|---|
| January 2025 notes | $460 million | 4.25% | March 1, 2032 | $3.5 million |
| July 2025 notes | $575 million | 2.375% | Oct. 15, 2032 | $325 million |
| October 2025 notes | $1.150 billion | 2.00% | Jan. 15, 2036 | $1.150 billion |
| February 2026 notes | $1.075 billion | 2.25% | April 15, 2036 | $1.075 billion |
| July 2026 proposal | $1.000 billion, plus $150 million option | To be set | Feb. 1, 2034 | $1.000 billion, plus option |
| Total, base proposal | $4.260 billion | — | 2032–2036 | $3.554 billion |
Wednesday’s announcement didn’t include a share sale or a plan to buy back old debt, unlike what happened in February. This is straight additive financing. The new 2034 notes land between AST’s 2032 notes and two big 2036 issues, which staggers repayment but also increases total claims on future cash.
The main focus is on keeping the schedule. Back in May, AST said it had the cash to build and launch around 90 satellites. The company also said 45 to 60 working satellites would be enough for service in key markets. At that time, the plan was for about 45 satellites up by the end of 2026. But Wednesday’s filing moved that target to early 2027. That looks like the new funding could be going to clear launch and supply chain issues, not to close a known funding gap for the constellation.
AST said it’s in advanced talks with Rakuten Group Inc. (TYO:4755) about RAST Co. being picked as an indirect subsidy recipient for the J-LEO satellite project. The potential subsidy could reach 148 billion yen, or about $1 billion. It’s not a sure thing, and investors can’t treat that money as committed capital. The source of the potential funds is Japan.
But risks are still high. AST will have more debt to cover before hitting broad commercial service, and the final conversion terms could hang over the equity. Cash from the deal will be trimmed by capped-call spending. A planned launch acquisition might tie up more capital, even if it doesn’t fix timing soon. AST also flagged possible shifts in its schedule tied to assembly, testing, vehicle work, and logistics.
Next up is pricing. A smaller coupon, higher conversion premium and low capped-call costs would mean AST is getting good terms. If the terms are soft, the deal looks more defensive. Right now, the key number isn’t just the $1 billion target. It’s the 45 satellites AST is aiming to have ready by early 2027, and the spending needed to make that happen.
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