NeoCapCompaniesValuationsScenariosMetrics
Log inSign up
← Applied Digital Corporation
Wed, Feb 12, 2025

Applied Digital closes $375 million SMBC financing for Ellendale HPC campus

Source document ↗

Key points

  • Subsidiary APLD HPC Holdings LLC closed a $375 million term loan credit agreement with Sumitomo Mitsui Banking Corporation on February 11, 2025.
  • Proceeds prepay in full the Macquarie Equipment Capital promissory note, fund development of the first and second data center buildings at the 400 MW Ellendale HPC campus, and fund an interest reserve account.
  • Loans bear interest at Daily Simple SOFR plus 3.50% initially, stepping up to 4.50% after six months and 5.50% after one year; the agreement matures 18 months after closing.
  • Secured by a pledge of 100% of the borrower's equity, substantially all borrower and guarantor assets, and mortgages; parent guarantee up to the value of the pledged collateral.
  • Company plans to replace this interim loan with permanent project financing once a hyperscaler lease is signed; the loan is not dilutive to common stock.

Site update

SiteStatusActiveIn buildTheoretical
Polaris Forge 1Ellendale, ND

SMBC $375 million financing to advance development of the first and second data center buildings at the 400 MW Ellendale HPC campus (now Polaris Forge 1)

Under construction——400 MWIT