← Applied Digital Corporation · FinancingEdit
SMBC term loan credit agreement (18-month)
Feb 11, 2025 · ClosedTerms of issuance
Instrument
Term loan / DDTL
Principal
$375.0M
Net proceeds
Drawn (of commitment)
$0 as of May 31, 2026
Coupon
Daily Simple SOFR + 350 bps
Issue date
Feb 11, 2025
Maturity
Seniority
Conversion ratio
n/a
Settlement
n/a
Economic analysis
Effective annual cost
n/acalculated: coupon + capped-call cost amortized over the note's life — needs coupon, maturity, and (if hedged) capped-call cost
Interest savings vs. plain debt
n/anot shown — would require an assumed comparable straight-debt rate, which we do not fabricate
Implied option value / volatility
n/anot shown — would require an assumed volatility input, which we do not fabricate
Breakeven
n/anot shown — would require assumed reinvestment/discount-rate assumptions, which we do not fabricate
Context
Shares outstanding (as of issue date)
222,903,471
Stock price / market cap (as of issue date)
n/ano price on or before the issue date
Use of proceeds
Prepay in full the Macquarie Equipment Capital promissory note (dated November 27, 2024); data center project development costs at the 400 MW Ellendale, North Dakota data center campus; fund the interest reserve account
Other financing outstanding (excl. this instrument)
Private placement of common stock (Nvidia, Related Companies) ($160.0M), 2.75% Convertible Senior Notes due 2030 ($450.0M), Perpetual preferred + common equity partnership (APLD HPC Holdings LLC, Macquarie Asset Management) ($5.00B), 9.250% senior secured notes due 2030 ($2.35B), 7.000% senior secured notes due 2031 (APLD ComputeCo 3 LLC, Polaris Forge 1 Building 4) ($1.59B), Senior Secured Notes due 2031 — Polaris Forge 2 (APLD ComputeCo 2 LLC) ($2.15B), Revolving credit facility (up to $430 million committed, $120 million incremental capacity to $550 million) ($430.0M), Series G convertible preferred stock equity facility (PEPA, sixth amendment) ($2.00B)
— of which existing debt
$14.13B
Existing cash
n/anot tracked in the system yet
Anti-dilution adjustment terms
n/a
Related acquisition
none
Related deal
Related site
Sources
ClosedApplied Digital closes $375 million SMBC financing for Ellendale HPC campus
Feb 11, 2025