AST SpaceMobile Inc ( ASTS ) shares are falling in Wednesday’s after-hours session after the space-based cellular broadband network company announced a proposed private offering.

What Happened: After the market close on Wednesday, AST SpaceMobile ( ASTS ) announced plans to offer $400 million worth of convertible senior notes due 2032 in a private offering to institutional investors.

The company said it also intends to grant the initial purchasers a 13-day period to purchase up to an additional $60 million of the notes.

AST SpaceMobile ( ASTS ) plans to use a portion of the net proceeds to pay the cost of capped call transactions. The remaining proceeds will be used for working capital and other general corporate purposes.

AST SpaceMobile ( ASTS ) last reported earnings in November, ending the period with $518.9 million in cash, cash equivalents and restricted cash.

AST Price Action: AST SpaceMobile ( ASTS ) shares were down 13.74% in after-hours, trading at $19.41 at the time of publication Wednesday, according to Benzinga Pro.

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