Loan & DebtJun 9, 2026, 07:56 AM
Applied Digital Subsidiary to Offer $1.59B Senior Secured Notes
AI Summary
Applied Digital Corporation announced that its subsidiary, APLD ComputeCo 3 LLC, plans to offer $1.59 billion in senior secured notes due 2031. The net proceeds from this private offering are intended to fund the construction of 150 megawatts of critical IT load at the fourth building (ELN-04) of its Polaris Forge 1 AI Factory campus in Ellendale, North Dakota. Additionally, the funds will be used to repay an existing bridge loan facility, fund debt service reserves, and cover transaction expenses. The offering is subject to market conditions.
Key Highlights
- APLD ComputeCo 3 intends to offer $1.59 billion aggregate principal amount of senior secured notes due 2031.
- Proceeds will fund construction of 150 megawatts of IT load at ELN-04, Polaris Forge 1 AI Factory.
- Funds will also repay a bridge loan facility from Goldman Sachs Bank USA.
- Notes will be secured by first-priority liens on assets of APLD ComputeCo 3 and its guarantors.
- Applied Digital will provide a customary completion guarantee for the ELN-04 project.
Price Impact
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