AST SpaceMobile descends on announcing $1 bln convertible, direct stock deals

AST SpaceMobile ASTS.O shares down 10.3% in extended trading to $87 as it seeks capital raise

Midland, Texas-based firm announces private offering of $1 bln convertible bonds (CBs) due Apr 15, 2036

It intends to use net offering proceeds for general purposes, including accelerating deployment of controlled spectrum bands on a global basis, enhancing investment in government space opportunities in the U.S., reducing higher interest debt, and pursuing opportunistic investments to accelerate its SpaceMobile service

Co also unveils concurrent direct stock offerings to repurchase up to $300 mln of its existing CBs due 2032

UBS acting as placement agent and financial advisor for stock placements

With ~362 mln shares outstanding, ASTS has about $35 bln market cap

ASTS shares on Weds closed up 0.7% at $96.92. Stock up 33% YTD and has more than tripled over the past 12 months

ASTS backers include Alphabet GOOGL.O, AT&T T.N and Vodafone VOD.L

Avg rating of 10 analysts is "hold"; median PT $85.44, per LSEG data