Applied Digital prices $1.59B 7% notes due 2031 for North Dakota campus
Applied Digital Corporation priced a $1.59 billion offering of 7.000% senior secured notes due 2031 to fund 150 megawatts of critical IT load at its Polaris Forge 1 AI Factory campus in North Dakota and refinance a bridge loan facility with Goldman Sachs Bank USA.
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Applied Digital Corporation announced that its subsidiary, APLD ComputeCo 3 LLC, has priced a $1.59 billion offering of 7.000% senior secured notes due 2031. The notes are priced at par and will be sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 and to non-U.S. persons pursuant to Regulation S. The offering is expected to close on or around June 16, 2026, subject to market and other conditions.
APLD ComputeCo 3 intends to use the net proceeds from the offering to fund the construction and associated expenses of 150 megawatts of critical IT load at the fourth building, designated as ELN-04, at the Polaris Forge 1 AI Factory campus in Ellendale, North Dakota. A portion of the proceeds will repay the aggregate principal balance plus any accrued interest under the Credit and Guaranty Agreement with Goldman Sachs Bank USA, which served as a bridge loan facility. Remaining funds will be directed toward debt service reserves and the payment of transaction expenses.
The notes will be fully and unconditionally guaranteed by APLD ComputeCo 3's future and existing direct and indirect subsidiaries, including APLD ELN-04 HoldCo LLC, APLD ELN-04 LLC, and APLD ELN-04 LandCo LLC. The notes and related guarantees are secured by first-priority liens on substantially all assets of APLD ComputeCo 3 and the guarantors, as well as all equity interests of APLD ComputeCo 3 held by APLD HPC Holdings 2 LLC.
Applied Digital will provide a customary completion guarantee for the ELN-04 project, ensuring the subsidiary is funded as necessary for timely completion. The company focuses on designing, building, and operating high-performance, sustainably engineered data centers and colocation services for Artificial Intelligence, networking, and blockchain workloads.
Use of Proceeds
| Purpose | Description |
|---|---|
| Construction | Fund 150 megawatts of critical IT load at ELN-04, Polaris Forge 1, Ellendale, North Dakota |
| Debt Repayment | Repay principal balance and accrued interest under Credit and Guaranty Agreement with Goldman Sachs Bank USA |
| Reserves | Fund debt service reserves |
| Expenses | Pay transaction expenses |
How will the 7.000% interest rate on the notes impact Applied Digital's overall cost of capital and profitability?
What is the expected timeline for the completion of the ELN-04 project and when will it begin generating revenue?
Will Applied Digital pursue similar financing structures for future data center projects at the Polaris Forge 1 campus?
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