Space convertibles, bonds and hybrids.
How space companies raise debt: conversion premiums, coupons and capped calls on every convertible with published terms, satellite operator bond coupons by tenor and route, and hybrid capital.
Randeep Bubbra | Lawyer | Making space financeable
21fixed-rate bond tranches
9.88%median US$ coupon since 2024
13convertibles with terms
25%median conversion premium
Bonds Convertibles Hybrids By rating Maturity calendar Market analysis
Convertible terms
13 convertibles on file. Median conversion premium 25% and median coupon 2.375%; 9 came with capped calls, at a median cap of 100% above the share price. Since 2024: 11 deals, median premium 25%.
Terms at pricing, from the issuer's pricing release; conversion and cap prices adjust under the indenture. Cap above share price is worked out from the cap and conversion prices and the stated premium.
The wording behind each figure
Voyager Technologies US$402m convertible senior notes due 2032
The notes will not bear regular interest
The notes will mature on October 15, 2032
The initial conversion rate is 24.4978 shares of Class A common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $40.82
The initial conversion price represents a premium of approximately 30%
The cap price of the capped call transactions will initially be $78.50
…believed to be qualified institutional buyers pursuant to Rule 144A
AST SpaceMobile US$1.0bn 1.625% convertible notes due 2034
The Notes will accrue interest at an annual rate of 1.625%
The Notes will mature on February 1, 2034
Key Elements of the Transaction: ● $1.0 billion 1.625% convertible senior notes due 2034, which have an initial conversion price of approximately $79.57
AST SpaceMobile’s Class A common stock, which represents a premium of approximately 20.0%
The cap price of the capped call transactions is initially $149.20
…believed to be qualified institutional buyers pursuant to Rule 144A
AST SpaceMobile US$1.0bn 2.25% convertible notes due 2036
The Notes will accrue interest at an annual rate of 2.250%
The Notes will mature on April 15, 2036
The Notes have an initial conversion price of approximately $116.30
The Notes have an initial conversion price of approximately $116.30 per share of AST SpaceMobile’s Class A common stock, which represents a premium of approximately 20%
…believed to be qualified institutional buyers pursuant to Rule 144A
Voyager Technologies US$435m 0.75% convertible senior notes due 2030
The notes will be senior, unsecured obligations of Voyager and will accrue interest at a rate of 0.75% per annum
The notes will mature on November 15, 2030
The initial conversion rate is 32.2799 shares of Class A common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $30.98
The initial conversion price represents a premium of approximately 30.0%
The cap price of the capped call transactions will initially be approximately $59.58
…believed to be qualified institutional buyers pursuant to Rule 144A
AST SpaceMobile US$1,000m convertible senior notes due 2036
The Notes will accrue interest at an annual rate of 2.00%
The Notes will mature on January 15, 2036
The Notes have an initial conversion price of approximately $96.30
The Notes have an initial conversion price of approximately $96.30 per share of AST SpaceMobile’s Class A common stock, which represents a premium of approximately 22.5%
…believed to be qualified institutional buyers pursuant to Rule 144A
Planet Labs US$400m 0.50% convertible notes due 2030
The notes will bear interest at a rate of 0.50% per year
The notes will mature on October 15, 2030
$1,000 principal amount of notes (equivalent to an initial conversion price of approximately $11.95
$11.95 per share, which represents a conversion premium of approximately 32.5%
The cap price of the capped call transactions is initially $18.04
…believed to be qualified institutional buyers pursuant to Rule 144A
Intuitive Machines US$345m 2.5% convertible notes due 2030
Interest on the Notes will accrue at a rate of 2.500% per year
The Notes are general unsecured obligations of the Company and will mature on October 1, 2030
The conversion rate for the Notes will initially be 76.2631 shares of Class A Common Stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $13.1125
The initial conversion price of the Notes represents a premium of approximately 25.0%
…such reduction and/or offset subject to a cap based on a cap price initially equal to $20.9800
…from registration provided by Section 4(a)(2) and Rule 144A
AST SpaceMobile US$500m 2.375% convertible notes due 2032
The Notes will accrue interest at an annual rate of 2.375%
The Notes will mature on October 15, 2032
Key Elements of the Transaction: ● $500.0 million 2.375% convertible senior notes offering with an initial conversion price of approximately $72.07
AST SpaceMobile’s Class A common stock, which represents a premium of approximately 20%
The cap price of the capped call transactions is initially $120.12
…believed to be qualified institutional buyers pursuant to Rule 144A
BlackSky US$160m 8.25% convertible senior notes due 2033
…and August 1 of each year, beginning on February 1, 2026, at a rate of 8.25% per year
The notes will mature on August 1, 2033
The conversion rate of the notes will initially be 27.1909 shares of BlackSky’s Class A common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $36.78
The initial conversion price of the notes represents a premium of approximately 30%
…believed to be qualified institutional buyers pursuant to Rule 144A
AST SpaceMobile US$400m 4.25% convertible senior notes due 2032
The notes will accrue interest at an annual rate of 4.25%
The notes will mature on March 1, 2032
Key Elements of the Transaction: ● $400.0 million 4.25% convertible senior notes offering with an initial conversion price of approximately $26.99
AST SpaceMobile’s Class A common stock, which represents a premium of approximately 20.0%
The cap price of the capped call transactions is initially $44.98
…believed to be qualified institutional buyers pursuant to Rule 144A
Rocket Lab US$355m 4.25% convertible notes due 2029
The notes will be senior, unsecured obligations of Rocket Lab and will accrue interest at a rate of 4.250% per annum
The notes will mature on February 1, 2029
The initial conversion rate is 195.1029 shares of common stock per $1,000 principal amount of the notes, which represents an initial conversion price of approximately $5.13
The initial conversion price represents a premium of approximately 27.5%
The cap price of the capped call transactions will initially be $8.04
…believed to be qualified institutional buyers pursuant to Rule 144A
Virgin Galactic US$425m 2.50% convertible senior notes due 2027
The notes will be senior, unsecured obligations of Virgin Galactic and will accrue interest at a rate of 2.50% per annum
The notes will mature on February 1, 2027
The initial conversion rate is 78.1968 shares of common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $12.79
The initial conversion price represents a premium of approximately 27.5%
The cap price of the capped call transactions will initially be $20.06
…believed to be qualified institutional buyers pursuant to Rule 144A
Intelsat US$350m 4.50% convertible senior notes due 2025
The notes will accrue interest at an annual rate of 4.50%
The notes will mature on June 15, 2025
The initial conversion rate will be 55.0085 common shares per US$1,000 principal amount of the notes (equivalent to an initial conversion price of approximately US$18.18
The initial conversion price for the notes represents a conversion premium of approximately 22.5%
…offering to qualified institutional buyers pursuant to Rule 144A
Bond coupons by tenor and offering route
21 fixed-rate tranches across 19 bond issues since 2015, read from the register. Each cell is the median coupon, with the number of tranches in brackets.
- Private (Rule 144A)
- European market
- Route not stated
US dollar coupons by tenor and year of issue
| 2015–19 | 2020–21 | 2022–23 | 2024 on | |
|---|---|---|---|---|
| Up to 5 years | 9.75% (3) | — | 7.75% (1) | 9.88% (2) |
| 6 to 10 years | 6.75% (9) | 6.5% (1) | 7.5% (1) | — |
| 11 to 20 years | — | — | — | — |
| Over 20 years | — | — | — | — |
US dollar coupons by rating at issue and year of issue
| 2015–19 | 2020–21 | 2022–23 | 2024 on | |
|---|---|---|---|---|
| BB | — | — | 7.5% (1) | 9% (1) |
| B and below | 5.62% (1) | 6.5% (1) | — | — |
6 of 19 fixed-rate bond issues have a public rating. Ratings come from the SEC pricing term sheet for the notes, the issuer's own release or, failing both, Fitch's Long-Term Issuer Default Rating on the issue date; where agencies differ, the middle of three or the lower of two. Each bond's page quotes its source.
Coupons by offering route and year of issue
| 2015–19 | 2020–21 | 2022–23 | 2024 on | |
|---|---|---|---|---|
| Private (Rule 144A) | 8.5% (11) | 6.5% (1) | 7.62% (2) | 9% (1) |
| European market | 2% (1) | — | — | 5.75% (3) |
The offering route groups every issue, rated or not: SEC-registered notes (mostly investment-grade issuers), private Rule 144A offerings (most high-yield issuers, and some foreign or first-time investment-grade issuers) and the European market (euro, sterling and krona bonds). Coupons are in the currency of issue; floating-rate notes are left out.
Hybrid capital
Perpetual subordinated notes, usually with 50% equity credit from the rating agencies and a first call date in place of a maturity.
| Date | Issue | Coupon | Structure |
|---|---|---|---|
| 24 Mar 2026 | SES €650m 7.375% perpetual hybrid | 7.375% | Perpetual hybrid notes, first call 24 March 2031 |
| 6 Sep 2024 | SES €1bn hybrid dual-tranche bonds | 5.5% (NC5.25, issued at 99.473%); 6.0% (NC8, issued at par) | Subordinated hybrid notes in two tranches: non-call 5.25 years and non-call 8 years |
| 27 May 2021 | SES €625m hybrid bonds (2021) | — | Deeply subordinated hybrid notes |
| 23 Nov 2016 | SES €550m hybrid bonds (2016) | 5.625% | Deeply subordinated fixed-rate resettable securities; first call 29 Jan 2024; 50% equity credit |
| 3 Jun 2016 | SES €750m 4.625% hybrid bonds (2016) | 4.625% | Inaugural deeply subordinated fixed-rate resettable hybrid; 50% equity credit |
Built from the register, which is checked against each issuer's own documents. Updated with every register update. Working on a bond or convertible? Book 20 minutes with Randeep to see how your terms compare.