AST SpaceMobile Inc. (ASTS) stock jumped 11% Tuesday after the company completed a $1.15 billion private offering of convertible senior notes. The deal strengthens the balance sheet and provides additional funding for its satellite broadband network.

The financing boosts AST SpaceMobile's pro forma cash, cash equivalents and restricted cash to more than $3.8 billion as of June 30, 2026.

AST SpaceMobile Strengthens Balance Sheet

The company closed its previously announced $1.0 billion offering of 1.625% convertible senior notes due 2034. Initial purchasers also exercised in full their option to buy an additional $150 million of notes.

Settlement of the additional notes is expected on July 22, subject to customary closing conditions.

AST SpaceMobile also purchased a capped call hedge. The hedge raises the effective conversion price to $149.20 per share. The company said the structure limits effective dilution to less than 2%.

“This financing allows us to pursue an expanding universe of growth opportunities, continue vertical integration, and secure additional access to orbit for our space-based cellular network,” said Scott Wisniewski, president of AST SpaceMobile.

Low-Cost Financing Supports Growth

Chief Financial Officer Andy Johnson said the transaction gives the company its lowest borrowing cost for this type of financing.

“The notes have our lowest coupon ever at 1.625% and have an effective conversion price of $149.20 per share, well above our all-time high stock price, providing cost-efficient capital with effective dilution of less than 2%.”

Capped Call Helps Limit Dilution

The capped call transactions are designed to reduce potential dilution or cash obligations if investors convert the notes.

AST SpaceMobile can also settle future conversions with cash, Class A common stock, or a combination of both. That flexibility gives the company more options to manage future capital needs while limiting shareholder dilution.

AST SpaceMobile Price Action

ASTS Price Action: AST SpaceMobile shares were up 11.02% at $63.75 at the time of publication on Tuesday.