AST SpaceMobile (AST) announced a strategic investment from AT&T, Google and Vodafone, intended to support the commercial roll-out of AST’s space-based cellular broadband network, the first of its kind.
AT&T, Google and Vodafone agreed to provide $155 million through a combination of convertible notes and revenue commitments. AST plans to draw an additional $51.5 million from its existing senior-secured credit facility. S&C also advised AST on a $115 million public offering of common stock launched after announcement of the strategic investments.
In addition to the strategic investment, the new investors expanded their strategic and commercial ties to support building AST’s network. Vodafone and AT&T have placed purchase orders for network equipment from AST to aid planned commercial service. Google and AST agreed to collaborate on product development, testing and implementation plans for AST’s network connectivity on Android and related devices.
AST is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on its extensive IP and patent portfolio. The satellite manufacturer has more than 3,100 patent and patent-pending claims for its technology and has agreements with more than 40 mobile network operators globally, which have over two billion existing subscribers total.
The S&C team advising AST included Alison Ressler, Jared Fishman, James Shea, Danielle McKenna, Alexandria Ross, Marianna Zabkowski and Charles Fries. Davis Wang and Bella Schapiro advised on tax matters.