AST SpaceMobile, Inc., a pioneer in the space-based cellular broadband network sphere, has recently made a significant move by partnering with Ligado Networks LLC. The collaboration, formalized through a binding agreement termed the “Strategic Collaboration Term Sheet,” aims to provide AST SpaceMobile with extended access to up to 45 MHz of lower mid-band spectrum in the United States for direct-to-device satellite applications.
This strategic move marks a pivotal moment for AST SpaceMobile as it enhances the technological capabilities and expands the space-based network of the company. The agreement involves the deployment of vast communications arrays in low Earth orbit, with plans to augment existing projects for the continental United States utilizing low-band spectrum. Additionally, the partnership grants AST SpaceMobile access to the largest available block of high-quality nationwide spectrum in the United States.
Per the terms of the Strategic Collaboration Term Sheet and subject to the finalization of the Definitive Agreements, Ligado LLC will provide AST with usage rights to its satellites, ground station assets, and L-band spectrum. In return, AST will offer Ligado various considerations, including penny warrants, cash payments, convertible notes, and revenue share payments, to secure access to the L-band spectrum until 2107.
Moreover, AST SpaceMobile will sublease spectrum under the Master Agreement for space-to-ground utilization on a preemptable basis, with provisions for potential future purchases. The collaboration ensures Ligado’s ownership and control of spectrum licenses, space station, and ground station assets, with negotiation terms in place for potential transfers to AST in the future.
To facilitate the financial aspects of the AST Transaction, AST SpaceMobile has secured an institutional financing commitment of $550 million in the form of a senior-secured delayed-draw term loan facility. The facility will be utilized by a newly formed subsidiary of AST SpaceMobile and is subject to customary conditions and due diligence.
The details of the Strategic Collaboration Term Sheet, along with the related financing commitment, have been disclosed to provide investors with a comprehensive overview of the agreements. It is imperative to note that the information presented is solely intended to convey terms and conditions and does not encompass broader factual details about the involved entities.
The cooperation between AST SpaceMobile and Ligado Networks exemplifies a strategic maneuver that positions both companies for future growth and technological advancement within the space-based communication arena.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read AST SpaceMobile’s 8K filing here.
AST SpaceMobile Company Profile
AST SpaceMobile, Inc, together with its subsidiaries, develops and provides access to a space-based cellular broadband network for smartphones in the United States. Its SpaceMobile service provides cellular broadband services to end-users who are out of terrestrial cellular coverage. The company was founded in 2017 and is headquartered in Midland, Texas.
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