AST SpaceMobile Inc. (ASTS) announced the pricing of $1 billion in convertible senior notes due 2036 in a private offering to qualified institutional buyers. The notes carry a 2.250% annual interest rate and are expected to settle on February 17, 2026.

The notes have an initial conversion price of approximately $116.30 per share of AST SpaceMobile’s Class A common stock, representing a 20% premium to the February 11, 2026 closing price of $96.92 per share on the Nasdaq Global Select Market.

The company granted initial purchasers an option to buy up to an additional $150 million in notes, which could be exercised through February 20, 2026. Net proceeds are estimated at $983.7 million, or $1.13 billion if the option is exercised in full, after deducting fees and expenses.

AST SpaceMobile plans to use proceeds for general corporate purposes, including accelerating global spectrum deployment, investing in artificial intelligence capabilities, enhancing government space opportunities, reducing higher-interest debt, and pursuing investments to advance its space-based cellular service.

The notes will mature on April 15, 2036, with interest paid semiannually beginning October 15, 2026. Conversion rights are limited to specific conditions until January 15, 2036, after which holders may convert at any time until maturity.

Separately, the company announced registered direct offerings totaling 6.34 million shares of Class A common stock and plans to repurchase approximately $296.5 million in existing convertible notes using proceeds from these offerings and cash on hand.

The Midland, Texas-based company is developing a space-based cellular broadband network designed to work directly with standard smartphones for commercial and government applications.