This agreement positions AST SpaceMobile to combine its existing low-band spectrum coverage in the continental United States with premium lower mid-band spectrum access, creating an enhanced framework for reliable and widespread connectivity. The company's advanced communications arrays, the largest deployed in low Earth orbit, will support this integration to deliver better performance across diverse applications.

"Adding premium lower mid-band spectrum access in the United States to the AST SpaceMobile network gives us long-term access to a large block of a scarce resource, significantly enhancing our planned space-based cellular broadband offering," said Abel Avellan, Chairman and CEO at AST SpaceMobile. "Alongside the previously announced 850 MHz nationwide network plans, access to the largest available block of high-quality nationwide spectrum will position us to deliver on our goal of peak data transmission speeds up to 120 Mbps, together with our mobile network operator partners, to enable a true broadband experience directly from space to everyday smartphones."

The agreement, facilitated through a binding Restructuring Support Agreement with Ligado Networks ("Ligado") and its creditors, grants AST SpaceMobile long-term usage rights for 80+ years. This includes up to 40 MHz of L-Band MSS spectrum and an additional 5 MHz in the 1670-1675 MHz Band in the United States. Completion of the transaction depends on finalizing definitive documentation, anticipated in early 2025.

Upon execution, Ligado will receive approximately 4.7 million penny warrants convertible into AST SpaceMobile Class A shares, subject to a 12-month lock-up. Regulatory approvals and other conditions will determine the transaction's closing, which also includes $550 million in additional consideration supported by institutional financing. AST SpaceMobile has arranged for a non-recourse senior-secured delayed-draw term loan facility to finance this commitment, with annual payments of approximately $80 million for spectrum rights. Ligado will also receive long-term net revenue sharing rights. The transaction aligns with Ligado's ongoing restructuring efforts.

UBS Securities LLC is serving as the exclusive financial advisor for AST SpaceMobile. Legal counsel includes Freshfields and Sullivan and Cromwell.

The company's advancements include the September 2024 launch of five BlueBird satellites, which are the largest commercial communication arrays in orbit. These satellites offer non-continuous broadband services across the United States and select global markets, with the aim of achieving nationwide coverage. The next-generation Block 2 BlueBird satellites will feature even larger arrays and deliver up to 10 times the bandwidth capacity, supporting speeds up to 120 Mbps for a full range of cellular services.

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