AST SpaceMobile Shares Slide Following Announcement of $1 Billion Capital Raise

2026-02-12 companies

Midland, Thursday, 12 February 2026.
Stock dropped 11% as the company seeks $1 billion via convertible notes to restructure debt and scale operations, overshadowing the successful deployment of its next-generation BlueBird 6 satellite.

Market Reaction to Capital Restructuring

AST SpaceMobile (NASDAQ: ASTS) saw its stock plummet 11% on Thursday, February 12, 2026, closing at $85.86 per share, as investors digested the implications of a massive capital reorganization [7]. The Midland, Texas-based company [6] priced a $1.0 billion private offering of convertible senior notes due 2036, carrying a 2.25% interest rate and a conversion price of $116.30 per share [7]. This pricing represents a conversion rate of approximately 8.5982 shares per $1,000 principal amount [7]. Initial purchasers also hold an option to acquire an additional $150 million in notes, with a settlement deadline of February 20, 2026 [2][3].

Strategic Debt Realignment

A significant portion of this financial maneuver involves addressing existing liabilities to solidify the company’s balance sheet. AST SpaceMobile intends to repurchase approximately $300 million of its existing convertible senior notes due 2032, specifically targeting $50 million of its 4.25% notes and $250 million of its 2.375% notes [2][6]. To facilitate this repurchase, the company is issuing roughly 6.3 million shares of Class A common stock to participating noteholders [7]. While the immediate equity issuance likely contributed to the market’s negative reaction, the restructuring offers specific long-term benefits: the buyback is projected to eliminate approximately $51.4 million in future interest payments and removes about 5.2 million underlying shares associated with the previous conversion structure [7].

Technical Success Meets Capital Intensity

The complex financial news effectively eclipsed a major operational victory announced earlier in the week. On February 10, 2026, the company successfully completed the unfolding of its BlueBird 6 satellite in orbit [2]. This next-generation satellite represents a significant leap in capability, boasting more than three times the physical size of the earlier BlueBird 1 through 5 series and delivering up to 10 times the bandwidth capacity [7]. These advancements are critical as the company aims to deploy between 45 and 60 satellites by the end of 2026 to support its global cellular broadband network [7].

Future Funding Requirements

This substantial capital raise underscores the immense cost of deploying a space-based cellular broadband network accessible by standard mobile devices [3]. Beyond satellite deployment, AST SpaceMobile is continuing to pursue a $550 million transaction with Ligado Networks to secure mid-band spectrum in the United States and Canada, for which it has already paid $420 million [4]. As noted by analysts, while the company possesses technical momentum, it faces the dual pressures of large operating losses and intensifying cash burn common to the sector [4]. The net proceeds from the new note offering are designated for general corporate purposes, including accelerating spectrum deployment, monetizing AI technology, and reducing higher-interest debt [3][5].

Sources

Capital Markets Satellite Telecommunications