In short: in 2020 and 2021 a wave of space companies went public by merging with special purpose acquisition companies (SPACs). Many then struggled: share prices fell, cash ran low and some failed. Since 2024 the survivors with rising share prices have turned to convertible notes, raising billions at falling coupons. AST SpaceMobile alone has issued more than US$4bn since January 2025. The convertible market has become the main debt market for the SPAC generation.
From SPAC to convertible
SPAC listings gave young space companies public equity before they had much revenue. When their shares fell in 2022 and 2023, selling more shares became very dilutive and straight debt was mostly unavailable. Virgin Galactic's US$425m 2.50% convertible in January 2022 was an early example; some peers, such as Virgin Orbit, did not survive.
The turn came as revenue grew and share prices recovered. Rocket Lab's US$355m 4.25% notes due 2029, in February 2024, were followed by a run of larger deals:
| Issuer | Date | Size | Coupon | Due |
|---|---|---|---|---|
| Rocket Lab | Feb 2024 | US$355m | 4.25% | 2029 |
| AST SpaceMobile | Jan 2025 | US$400m | 4.25% | 2032 |
| AST SpaceMobile | Jul 2025 | US$500m | 2.375% | 2032 |
| Planet Labs | Sep 2025 | US$400m | 0.50% | 2030 |
| AST SpaceMobile | Jul 2026 | US$1.0bn | 1.625% | 2034 |
The rest of this guide covers the full coupon and conversion table, how capped calls work, the indenture terms that matter and a pre-launch checklist for an issuer. It is free with a work email, along with the register downloads and the in-house counsel tools.
Read the full guide
Free. Work emails only. Unsubscribe at any time.
Questions
Why do space companies issue convertible notes?
Convertibles let growth companies borrow at low coupons because investors are paid partly through the option to convert into shares. For space companies with little cash flow and volatile share prices, they are often cheaper than straight debt and less dilutive than selling shares.
What coupons have space convertibles paid?
On file, from 8.25% (BlackSky, 2025) and 4.25% (Rocket Lab 2024, AST SpaceMobile January 2025) down to 0.50% (Planet Labs, 2025) and 1.625% (AST SpaceMobile, July 2026), as share prices rose.
What is a capped call?
A pair of options bought by the issuer when it sells convertibles, which offsets dilution between the conversion price and a higher cap price. AST SpaceMobile's July 2025 notes, for example, had a conversion price of about US$72.07 and a cap of US$120.12.
Sources
General information on public law and market practice as at 28 Oct 2026, not legal advice on any transaction.