Loan & DebtJun 16, 2026, 04:37 PM
Applied Digital Subsidiary Completes $1.59B Senior Secured Notes Offering
AI Summary
Applied Digital Corporation's subsidiary, APLD ComputeCo 3 LLC, completed a private offering of $1.59 billion in 7.000% Senior Secured Notes due 2031. The notes, issued at 100% of their principal amount, will fund the construction of 150 megawatts of IT load at the Polaris Forge 1 AI Factory campus in North Dakota. Additionally, proceeds will be used to repay a bridge loan facility from Goldman Sachs Bank USA, fund debt service reserves, and cover transaction expenses. Applied Digital Corp. has provided a completion guarantee for the related projects.
Key Highlights
- APLD ComputeCo 3 LLC, a subsidiary of Applied Digital, completed a private offering of 7.000% Senior Secured Notes due 2031.
- The aggregate principal amount of notes sold in the offering was $1.59 billion.
- The notes bear interest at a rate of 7.000% per annum, payable semi-annually, and mature on June 15, 2031.
- Net proceeds will fund the construction of 150 megawatts of critical IT load (ELN-04) at Polaris Forge 1.
- Proceeds will also repay an aggregate principal balance plus accrued interest under a bridge loan facility from Goldman Sachs Bank USA.
- The Issuer may redeem the notes on or after June 15, 2028, or earlier with a make-whole premium.
- Applied Digital Corporation provided a customary completion guarantee for projects related to the facilities.
Price Impact
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