AST SpaceMobile drops 6%, prices $1B senior notes

* AST SpaceMobile (NASDAQ:ASTS [https://seekingalpha.com/symbol/ASTS]) priced [https://seekingalpha.com/pr/20274667-ast-spacemobile-prices-repurchase-of-convertible-senior-notes-to-be-funded-by-concurrent] a cash repurchase of $50M aggregate principal amount of its 4.25% convertible senior notes due 2032 and its offering of ~2M shares of its Class A common stock to holders of existing notes participating in the repurchase in a direct offering.
* The company also priced [https://seekingalpha.com/pr/20274667-ast-spacemobile-prices-repurchase-of-convertible-senior-notes-to-be-funded-by-concurrent] $1B aggregate principal amount of convertible senior notes due 2036. The notes have an initial conversion price of ~$96.30 per share, which represents a premium of ~22.5% to the last reported sale price.
* Net proceeds will be ~$981.9M (or ~$1,129.2M if the initial purchasers’ option to purchase additional Notes is exercised in full).
* The proceeds will be used for general corporate purposes, including without limitation funding the deployment of AST SpaceMobile’s worldwide constellation of satellites in anticipation of adding incremental strategic markets for AST SpaceMobile’s SpaceMobile Service.
* The stock price dropped ~6.6% on Wednesday during pre-market hours of trading.

MORE ON AST SPACEMOBILE

* AST SpaceMobile Has Launched [https://seekingalpha.com/article/4830739-ast-spacemobile-launched]
* AST SpaceMobile Is In The Stratosphere After Its Big Move With Verizon Communications [https://seekingalpha.com/article/4828636-ast-spacemobile-is-in-stratosphere-after-big-move-with-verizon-communications]
* Why AST SpaceMobile Soared (Rating Upgrade) [https://seekingalpha.com/article/4827515-why-ast-spacemobile-soared-rating-upgrade]
* AST SpaceMobile announces proposed private offering of $850M and repurchase of $50M convertible senior notes [https://seekingalpha.com/news/4506382-ast-spacemobile-announces-proposed-private-offering-of-850m-and-repurchase-of-50m-convertible-senior-notes]
* Barclays cuts AST SpaceMobile's rating by two notches on expensive valuation concerns [https://seekingalpha.com/news/4505170-barclays-cuts-ast-spacemobiles-rating-by-two-notches-on-expensive-valuation-concerns]