BUZZ-AST SpaceMobile falls after $400 mln convertible bond offering, preliminary results

Shares of satellite communication firm AST SpaceMobile ASTS.O tumble 13% to $19.56 premarket

ASTS announces pricing of privately offered $400 mln convertible bonds due 2032

Initial conversion price of about $26.99/shr represents roughly 20% premium to ASTS' last close

ASTS plans to use the proceeds for capped calls, working capital and other purposes, including strategic transactions

Co has 289.7 mln outstanding shares for $6.52 bln market capitalization, according to data compiled by LSEG

ASTS also reported that it had cash and restricted cash of about $567.5 mln as of Dec. 31, 2024, vs $88.1 mln in 2023 and it expects total operating expenses to be between $58.3 mln and $62.3 mln for quarter ended Dec. 31

Jeff Bezos' rocket company Blue Origin last year signed multi-launch deal with ASTS to deploy the firm's direct-to-cellular satellites

ASTS shares more than tripled in 2024