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← Applied Digital Corporation
Thu, Nov 20, 2025

Applied Digital subsidiary closes $2.35 billion senior secured notes due 2030

Source document ↗

Key points

  • Subsidiary APLD ComputeCo LLC completed a private offering of $2.35 billion of 9.250% senior secured notes due December 15, 2030 on November 20, 2025, issued at 97.000% of principal.
  • Net proceeds fund a portion of construction of the 100 MW ELN-02 and 150 MW ELN-03 data centers at the 400 MW Ellendale, North Dakota campus, repay the SMBC credit agreement, fund debt service reserves, and pay transaction expenses.
  • Interest is payable semi-annually beginning June 15, 2026, with semi-annual principal amortization beginning December 15, 2027.
  • Notes are redeemable at set prices on or after December 15, 2027, earlier at 100% plus a make-whole premium, and up to 40% with equity offering proceeds; change of control triggers a 101% repurchase offer.
  • Applied Digital will provide a completion guarantee for each project, funding any shortfall needed to reach lease commencement; Morgan Stanley acted as representative of the initial purchasers.

Site update

SiteStatusActiveIn buildTheoretical
Polaris Forge 1Ellendale, ND

Note proceeds fund a portion of construction of the 100 MW ELN-02 and 150 MW ELN-03 data centers at the 400 MW Ellendale campus (Polaris Forge 1)

Under construction——400 MWIT