Applied Digital announces proposed offering of $2.35B of senior secured notes

Applied Digital (APLD) announced that its subsidiary, APLD ComputeCo intends to offer, subject to market conditions and other factors, $2.35 billion aggregate principal amount of senior secured notes due 2030, in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended. APLD Compute intends to use the net proceeds from the offering to fund a portion of the construction and associated expenses of its 100 megawatt and 150 MW data centers, ELN-02 and ELN-03, at Applied Digital’s 400 MW Ellendale, North Dakota data center campus, repay the aggregate principal balance plus any accrued and unpaid interest under the Credit and Guaranty Agreement, dated as of February 11, 2025, by and among APLD HPC Holdings, the subsidiary guarantors thereunder, the lenders party thereto and Sumitomo Mitsui Banking Corporation, as administrative agent, fund the Debt Service Reserve Account in accordance with the provisions of the indenture governing the Notes, and pay transaction expenses.