AST SpaceMobile Inc. said it intends to raise $500 million through a private offering of unsecured convertible senior notes due 2032, granting initial purchasers an option to buy up to an additional $75 million. The company plans to use the proceeds for capped-call transactions designed to limit dilution and for general corporate purposes as it builds a space-based cellular broadband network that links directly with standard smartphones. In a related move, the Texas-based startup plans to repurchase up to $135 million of its outstanding 4.25% convertible notes, financing the buyback with a concurrently arranged registered direct offering of Class A common stock. The package forms part of a broader $635 million balance-sheet overhaul aimed at funding the next phase of satellite deployments. The financing push comes as competition in the direct-to-device market intensifies. On 23 July, T-Mobile and SpaceX began offering Starlink-powered satellite texting, while AT&T and Verizon have aligned with AST SpaceMobile for future voice and data services. AST’s five BlueBird satellites have already completed voice, video and data trials with AT&T spectrum, and the company is preparing to launch second-generation spacecraft in the coming months. Investor reaction was mixed. ASTS shares, which had surged 156% in the past three months to touch $60 on expectations that additional carriers will adopt its technology, fell about 10% after the debt-financing announcement as markets weighed the dilution risk against the need for fresh capital.