TLDR
- AST SpaceMobile closed a $75 million add-on convertible notes offering, bringing the February total to $1.075 billion
- Notes carry a 2.25% rate and mature in 2036, convertible into Class A stock at a max rate of 10.3177 per $1,000
- The full raise generated approximately $983.7 million in net proceeds
- Funds will go toward balance sheet strengthening, global spectrum deployment, and AI monetization
- B. Riley analyst Mike Crawford cut the price target from $105 to $95, maintaining a Neutral rating
AST SpaceMobile (ASTS) wrapped up a busy week in the debt markets, closing a $75 million add-on to its convertible notes offering on February 20, 2026.
That brings the total raised in February to $1.075 billion in 2.25% Convertible Senior Notes due 2036.
The $75 million tranche, known as the “Option Notes,” came after initial purchasers exercised their option to buy more. The option was flagged on Thursday, and the sale closed Friday.
The company first completed the base $1 billion offering on February 17, which generated approximately $983.7 million in net proceeds after fees.
All notes — both the original and the add-on — carry identical terms and fall under the same indenture.
The notes are convertible into ASTS Class A common stock at an initial maximum rate of 10.3177 per $1,000 in principal. That means up to 11,091,528 Class A shares could be issued if all notes are converted.
The notes were sold as a private placement under Rule 144A, exempt from SEC registration, and were offered only to qualified institutional buyers.
What the Money Is For
ASTS said it plans to use the net proceeds to strengthen its balance sheet and fund expansion — specifically accelerating global spectrum deployment and advancing AI monetization efforts.
The company has also been using capital raises to repurchase higher-cost convertible notes, aiming to cut interest expenses and tidy up its capital structure.
Following recent financing activity, the company’s balance sheet stood at $2.78 billion.
Analyst Take and Satellite Progress
On February 13, B. Riley analyst Mike Crawford trimmed his price target on ASTS from $105 to $95, keeping a Neutral rating. He cited a 15% stock decline tied to a sector-wide pullback, though acknowledged the strengthened balance sheet.
William Blair also reiterated its Market Perform rating after conversations with ASTS’s Chief Strategy Officer about commercial service rollout plans.
Management has said that with 25 satellites in orbit, the company can provide intermittent coverage over key markets including the U.S., Canada, select European countries, Japan, and Saudi Arabia.
On the operational side, ASTS recently deployed its BlueBird 6 satellite, which carries the largest commercial communications array antenna ever placed in Low Earth Orbit.
BlueBird 7 is scheduled to launch in late February from Cape Canaveral Space Force Station aboard Blue Origin’s New Glenn rocket — the second satellite in the company’s next-generation campaign.
BlueBird 7’s communications array spans nearly 2,400 square feet.
ASTS stock was down 7.18% at the time of reporting.
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