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← Applied Digital Corporation
Tue, Jun 16, 2026

Applied Digital files indenture terms for $1.59 billion 7% notes

Source document ↗

Key points

  • Subsidiary APLD ComputeCo 3 LLC completed its $1.59 billion private offering of 7.000% senior secured notes due June 15, 2031 on June 16, 2026, issued at 100% of principal under a June 9 purchase agreement led by Goldman Sachs.
  • Interest is payable semi-annually on June 15 and December 15, starting December 15, 2026; principal amortizes semi-annually once the final commencement date under all datacenter leases in effect at issuance has occurred.
  • Notes are redeemable at the issuer option from June 15, 2028 at indenture prices; before then at par plus a make-whole premium, with up to 40% redeemable from equity offering proceeds.
  • Holders may put the notes at 101% on a change of control; the indenture restricts additional debt, dividends, investments, liens, asset sales and affiliate transactions.
  • Proceeds fund the 150 MW critical IT load ELN-04 building at Polaris Forge 1 (Ellendale, North Dakota), repay the Goldman Sachs Bank USA bridge loan, fund debt service reserves and pay transaction expenses.
  • Applied Digital provides a completion guarantee covering construction and lease phase 1 commencement if note proceeds and equity contributions fall short. Wilmington Trust is trustee and collateral agent.