AST SpaceMobile is adding to its borrowings, raising $1 billion (€0.86bn) of convertible debt, but using some of its cash to pay off $50 million of existing borrowings.

The $1 billion sum is made up of $850 million in new debt, but is giving the lenders the option to increase by $150 million in their lending. A decision on this extra $150 million will be made in the next two weeks. AST’s last cash-raising effort was four-times over-subscribed.

“AST SpaceMobile intends to use the net proceeds from the Notes Offering for general corporate purposes, including without limitation funding the deployment of AST SpaceMobile’s worldwide constellation of satellites in anticipation of adding incremental strategic markets for its SpaceMobile Service,” said the company’s prospectus.

This new borrowing is priced at $78.61 per share. Convertible note is undoubtedly debt, and pays a 1.75 per cent – 2.25 per cent coupon (latest pricing) similar to a bond.

AST’s new prospectus states that it is raising the cash to secure the satellite construction plans to launch 90 satellites to provide global continuous service in major markets and strategic emerging markets and government applications.

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