AST SpaceMobile (ASTS) priced a private offering of $1 billion aggregate principal amount of 1.625% convertible senior notes due 2034, the company said late Wednesday.
The notes have an initial conversion price of about $79.57 per share of the company's class A common stock.
Initial purchasers an option to buy up to an additional $150 million aggregate principal amount of the notes.
The company expects net proceeds of about $983.6 million, or about $1.13 billion if the option is fully exercised, to fund growth initiatives, expand launch capacity, and pursue partnerships and acquisitions.
The offering is expected to close Monday.
AST SpaceMobile shares were down 10% in premarket activity Thursday.
Price: $59.66, Change: $-6.65, Percent Change: -10.03%