← Applied Digital Corporation · FinancingEdit
7.000% senior secured notes due 2031 (APLD ComputeCo 3 LLC, Polaris Forge 1 Building 4)
Jun 16, 2026 · ClosedTerms of issuance
Instrument
Secured notes
Principal
$1.59B
Net proceeds
Coupon
7%
Issue date
Jun 16, 2026
Maturity
Jun 15, 2031 (5.0 years)
Seniority
senior secured
Conversion ratio
n/a
Settlement
n/a
Redemption terms
Issuer call date
Jun 15, 2028
Issuer call condition
On or after June 15, 2028 redeemable in whole or in part at indenture redemption prices; prior to June 15, 2028 redeemable at 100% of principal plus make-whole premium and accrued interest; prior to June 15, 2028 up to 40% of aggregate principal redeemable with proceeds of certain equity offerings at the indenture redemption price plus accrued interest
Holder put terms
Upon specified change of control events the issuer must offer to repurchase the notes at 101% of principal plus accrued and unpaid interest
Make-whole
Make-whole premium applies to optional redemptions prior to June 15, 2028
Economic analysis
Effective annual cost
7.00%coupon + capped-call cost amortized straight-line over the note's life
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)
285,769,539
Stock price / market cap (as of issue date)
n/ano price on or before the issue date
Use of proceeds
Fund construction and associated expenses of 150 MW of critical IT load (ELN-04) at Polaris Forge 1, Ellendale, North Dakota; repay principal and accrued interest under the Goldman Sachs Bank USA bridge loan credit and guaranty agreement; fund debt service reserves; pay transaction expenses
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), SMBC term loan credit agreement (18-month) ($375.0M), 9.250% senior secured notes due 2030 ($2.35B), 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
$12.91B
Existing cash
n/anot tracked in the system yet
Anti-dilution adjustment terms
n/a
Related acquisition
none
Related deal
none
Related site
none
Sources
ProposedApplied Digital proposes $1.59 billion notes for Polaris Forge 1 Building 4
Jun 9, 2026ClosedApplied Digital closes $1.59 billion senior secured notes for Polaris Forge 1 Building 4
Jun 16, 2026ClosedApplied Digital files indenture terms for $1.59 billion 7% notes
Jun 16, 2026