Overview
- APLD Compute priced $2.35 billion of senior secured notes due 2030 in a private Rule 144A offering to qualified institutional buyers.
- The notes carry a 9.25% coupon, are guaranteed by APLD Compute subsidiaries, and are secured by first‑priority liens on project and corporate assets.
- Proceeds are earmarked to build the 100 MW ELN-02 and 150 MW ELN-03 facilities at Polaris Forge 1, repay a Sumitomo Mitsui-led credit facility, fund debt service reserves, and cover transaction costs, with closing targeted around November 20.
- Applied Digital also announced $787.5 million from Macquarie Asset Management as part of a $5 billion preferred equity facility, including $450 million for completing Polaris Forge 2, where about 200 MW is already leased to an investment‑grade hyperscaler.
- The company disclosed a separate loan and security agreement for up to $65 million in revolving loans and letters of credit with First National Bank of Omaha, and its shares fell roughly 7.5%–10% following the funding news even as Northland Securities recently reiterated a Buy rating with a $40 target.