🚨🚨 $ASTS WEEK IN REVIEW🚨🚨
Trump's Boy Brendan Carr gives ASTS the go-ahead, convertible bond successfully placed, a cleaned-up balance sheet and more in the Weekly
Trump's Boy Brendan Carr gives ASTS the go-ahead, convertible bond successfully placed, a cleaned-up balance sheet and more in the Weekly
🏁ASTS Gets a Brendan Carr Approval
The Trump administration approved $ASTS testing on AT&T spectrum on the 3rd full day of its administration. The path for commercial operations starts now.
apps.fcc.gov/oetcf/els/repo…
The Trump administration approved $ASTS testing on AT&T spectrum on the 3rd full day of its administration. The path for commercial operations starts now.
apps.fcc.gov/oetcf/els/repo…
🆙Investors Looking Up
Stocks ripped on Monday after Trump spoke about his goals for space. It's the next big industry
Stocks ripped on Monday after Trump spoke about his goals for space. It's the next big industry
https://x.com/defiantclient/status/1881877640577167596
🔎Catse FCC Analysis
Nationwide testing on two 10 MHz channels. Full throttle power, not limited like Starlink
Nationwide testing on two 10 MHz channels. Full throttle power, not limited like Starlink
https://x.com/CatSE___ApeX___/status/1882488091606499356
🏆PC Mag Calls Us Special
The FCC today issued a special temporary authority to AST SpaceMobile, giving the company until May 30 to test the BlueBird satellites using AT&T’s network spectrum.
Thursday’s approval means the Texas-based startup can test the satellites on specific AT&T-licensed radio bands across the US. In its application, AST SpaceMobile mentioned using the cellular capabilities with up to 2,000 "end user handsets" for AT&T.
x.com/PCMag/status/1…
The FCC today issued a special temporary authority to AST SpaceMobile, giving the company until May 30 to test the BlueBird satellites using AT&T’s network spectrum.
Thursday’s approval means the Texas-based startup can test the satellites on specific AT&T-licensed radio bands across the US. In its application, AST SpaceMobile mentioned using the cellular capabilities with up to 2,000 "end user handsets" for AT&T.
x.com/PCMag/status/1…
1⃣ASTS Is Going to Stop Alternatives In Their Tracks
Why use anything but ASTS?
Why use anything but ASTS?
https://x.com/CatSE___ApeX___/status/1882426502358397235
🤑ASTS Convert
$400MM convertible bond, struck at $26.99 per share. Capped call transaction with initial cap of $44.98, leaving net proceeds of $387.9MM. UBS, Barclays, BAML. The capped call cost $38.7MM. Notes are 4.25% interest rate, with maturity on March 1, 2032. The notes are non-call 4. After that, they have a soft call at 130%. This bond was SUPER attractive and a lot of equity guys would likely see it and swap into the bond from equity, which puts more pressure on it. The bonds are already trading up 5 points, which is insane (they priced this deal too low, which is why it was so hot. A first time issuer is going to have to pay a price of admission since convert investors don't know the name. Once they are seasoned, that price of admission will go away
400,000,000 / 26.99 = 14,482,000 shares. 50% to hedgers on a 60% delta = 14,482,000 * .5 *.6= 4,446,091 shares to short. The other buyers are "outright" which means they own the bond without a hedge. I don't know exact ratios for this deal, but that is what you generally want to see.
The cap call, on my rough valuations, created a positive delta of ~3,500,000 shares that the dealers would need to buy. This would get offset by hedging demand as things work through the system
x.com/spacanpanman/s…
$400MM convertible bond, struck at $26.99 per share. Capped call transaction with initial cap of $44.98, leaving net proceeds of $387.9MM. UBS, Barclays, BAML. The capped call cost $38.7MM. Notes are 4.25% interest rate, with maturity on March 1, 2032. The notes are non-call 4. After that, they have a soft call at 130%. This bond was SUPER attractive and a lot of equity guys would likely see it and swap into the bond from equity, which puts more pressure on it. The bonds are already trading up 5 points, which is insane (they priced this deal too low, which is why it was so hot. A first time issuer is going to have to pay a price of admission since convert investors don't know the name. Once they are seasoned, that price of admission will go away
400,000,000 / 26.99 = 14,482,000 shares. 50% to hedgers on a 60% delta = 14,482,000 * .5 *.6= 4,446,091 shares to short. The other buyers are "outright" which means they own the bond without a hedge. I don't know exact ratios for this deal, but that is what you generally want to see.
The cap call, on my rough valuations, created a positive delta of ~3,500,000 shares that the dealers would need to buy. This would get offset by hedging demand as things work through the system
x.com/spacanpanman/s…
🎙️Convertible Bond Spaces
Want to talk through it? Here you go:
Want to talk through it? Here you go:
https://x.com/spacanpanman/status/1882261508224323740
🌳Balance Sheet Maturity
Moving from expensive secured debt to cheap converts with reasonable equity is the path for efficient growth
Moving from expensive secured debt to cheap converts with reasonable equity is the path for efficient growth
https://x.com/PK_Fund/status/1882683440056959469
🧹Balance Sheet Clean-up
And like magic, the strategic converts are called. ASTS is going to have a pristine balance sheet. While the new converts are NC4, there is still a clean path for a total equity balance sheet instead of the junked up crap you typically see with satellite companies. Converting out the strategic notes gets rid of interest expense and lowers overall risk
x.com/CatSE___ApeX__…
And like magic, the strategic converts are called. ASTS is going to have a pristine balance sheet. While the new converts are NC4, there is still a clean path for a total equity balance sheet instead of the junked up crap you typically see with satellite companies. Converting out the strategic notes gets rid of interest expense and lowers overall risk
x.com/CatSE___ApeX__…
🧑🚀Space is the Focus
Trump wants territory and what greater accomplishment than Mars? It will make the Louisiana Purchase look like child's play.
Trump wants territory and what greater accomplishment than Mars? It will make the Louisiana Purchase look like child's play.
🪖Military Hardware
Advanced 5G router tested by multiple customers…
x.com/defiantclient/…
x.com/CatSE___ApeX__…
Advanced 5G router tested by multiple customers…
x.com/defiantclient/…
x.com/CatSE___ApeX__…
🛰️SDA On the Move
I'd imagine having the convert done for a huge balance sheet helps with the SDA
I'd imagine having the convert done for a huge balance sheet helps with the SDA
https://x.com/CatSE___ApeX___/status/1882691488754331871
⏩Capital Efficiency
This will matter later. Once constellations are up and battling each other, investors will look for the highest margin operators
. They also do. Lower altitudes will cause higher maintenance CAPEX and lower FCF, all else equal. This will matter a lot in terms of the valuation multiples
This will matter later. Once constellations are up and battling each other, investors will look for the highest margin operators
. They also do. Lower altitudes will cause higher maintenance CAPEX and lower FCF, all else equal. This will matter a lot in terms of the valuation multiples
https://x.com/elenaneira/status/1882392553330459007
🍎Apple Planning
It'll be interesting if this collides with the MNOs
It'll be interesting if this collides with the MNOs
https://x.com/Megaconstellati/status/1882105120705441800
🔵Kuiper Coming
Bezos once said something about taking your margins. Here he comes for Starlink.
Bezos once said something about taking your margins. Here he comes for Starlink.
https://x.com/sid6mathur/status/1866231376229347408
🍼Whenever $ASTS Has Good News, Elon Tries to Grab Attention
You always know when he’s actually threatened
You always know when he’s actually threatened
https://x.com/elonmusk/status/1882724115670589573?s=46
💦Elon, Elon, Elon…
Turns out, Trump likes all those who are builders and can put up splashy headlines
Turns out, Trump likes all those who are builders and can put up splashy headlines
https://x.com/elonmusk/status/1882719101627609192
👑Trump Shows He’s In Control, Not Elon
President Trump and Elon Musk aren’t an exclusive item.That point was clear this week when the president welcomed OpenAI Chief Executive Sam Altman to the White House on the second day of Trump 2.0—a visit that left “First Buddy” Musk publicly fuming.
While some of Trump’s allies, including his former chief strategist Steve Bannon, have called for Musk’s ouster, Trump, who himself fires off provocative social-media missives, didn’t budge. “He hates one of the people in the deal,” Trump told reporters, referencing Musk’s well-documented dislike for Altman. “But I have certain hatreds of people, too.”
x.com/DMichaelTripi/…
President Trump and Elon Musk aren’t an exclusive item.That point was clear this week when the president welcomed OpenAI Chief Executive Sam Altman to the White House on the second day of Trump 2.0—a visit that left “First Buddy” Musk publicly fuming.
While some of Trump’s allies, including his former chief strategist Steve Bannon, have called for Musk’s ouster, Trump, who himself fires off provocative social-media missives, didn’t budge. “He hates one of the people in the deal,” Trump told reporters, referencing Musk’s well-documented dislike for Altman. “But I have certain hatreds of people, too.”
x.com/DMichaelTripi/…
Spaces timing TBD. Watching football and it might make sense just to do it tomorrow when people are fresh. I'll let the people decide.
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