AST SpaceMobile Announces Debt Repurchase Plan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy ASTS?
Source: seekingalpha
- Debt Repurchase Plan: AST SpaceMobile announced a cash repurchase of approximately $296.5 million of its convertible senior notes due 2032, including $46.5 million of 4.25% notes and $250 million of 2.375% notes, which is expected to significantly alleviate the company's financial burden.
- Stock Issuance Details: The company plans to issue about 6.3 million shares of Class A common stock to noteholders participating in the repurchases at a price of $96.92 per share, resulting in approximately 1.15 million incremental shares being issued, which will further dilute existing shareholders' stakes.
- Debt Reduction Impact: Through this repurchase, AST SpaceMobile will remove around $300 million of debt and $51.4 million of remaining interest from its balance sheet, which is anticipated to improve the company's financial health and enhance future financing capabilities.
- New Note Issuance: Additionally, AST SpaceMobile priced its previously announced $1 billion offering of 2.250% convertible senior notes due 2036, indicating the company's proactive financing strategy in the capital markets.
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Analyst Views on ASTS
Wall Street analysts forecast ASTS stock price to fall
9 Analyst Rating
4 Buy
3 Hold
2 Sell
Hold
Current: 82.220
Low
43.00
Averages
74.26
High
100.00
Current: 82.220
Low
43.00
Averages
74.26
High
100.00
About ASTS
AST SpaceMobile, Inc. is engaged in building a global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on its intellectual property (IP) and patent portfolio and designed for both commercial and government applications. The Company is engaged in designing and developing the constellation of BlueBird (BB) satellites and has planned space-based Cellular Broadband network distributed through a constellation of low Earth orbit (LEO) satellites. Its SpaceMobile Service is being designed to provide high-speed cellular broadband services to end-users who are out of terrestrial cellular coverage using existing mobile devices. The Company intends to continue testing capabilities of the BW3 test satellite, including further testing with cellular service providers and the government. The Company has operations in India, Scotland, Spain, and Israel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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