AST SpaceMobile Inc ( ASTS ) shares are trading lower Wednesday morning after the company priced a private offering of convertible senior notes.

ASTS shares are retreating from recent levels. Track the latest developments here.

What To Know: AST SpaceMobile ( ASTS ) said it plans to offer and sell $1 billion of convertible senior notes due 2036 in a private offering to institutional investors. The offering was upsized from the initial announcement of $850 million.

The sale of the notes to the initial purchasers is expected to settle on Friday. AST SpaceMobile ( ASTS ) also granted the initial purchasers a 13-day option to purchase up to an additional $150 million of the notes, which have an initial conversion price of approximately $96.30 per share.

AST SpaceMobile ( ASTS ) anticipates net proceeds of approximately $981.9 million, or approximately $1.13 billion if the initial purchasers exercise their option to purchase additional notes in full. The company intends to use the proceeds to fund the deployment of its worldwide constellation of satellites in anticipation of adding incremental strategic markets for its SpaceMobile Service.

AST SpaceMobile ( ASTS ) also priced a repurchase of convertible senior notes to be funded by the offering. The company will repurchase with cash $50 million of its 4.25% convertible senior notes due 2032 and issue approximately 200,000 incremental shares to the underlying shares of the existing notes being repurchased while removing $50 million of debt from the balance sheet and approximately $13.5 million of remaining interest.

AST SpaceMobile ( ASTS ) had $939.4 million of total cash, cash equivalents and restricted cash as of June 30.

ASTS Analysis: The pullback in AST SpaceMobile ( ASTS ) stock comes after a remarkable year-to-date surge of approximately 230%, indicating strong investor interest and volatility in the stock. The current price is approximately 27.3% above its 50-day moving average of $56.22 and a significant 88.4% above its 200-day moving average of $37.97.

With the Relative Strength Index (RSI) at 58.67, the stock is currently in neutral territory, indicating that it is neither overbought nor oversold. This positioning could suggest that the recent price drop may not necessarily indicate a reversal but rather a healthy correction within a broader bullish trend.

Traders should pay close attention to the 50-day moving average, which could provide support if the downtrend continues. A failure to hold above this level may lead to further declines, while a rebound could signal a resumption of the upward momentum that has characterized the stock’s performance over the past year.

ASTS Price Action: AST SpaceMobile ( ASTS ) shares were down 9.50% at $71.14 at the time of publication on Wednesday, according to Benzinga Pro.

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