Applied Digital subsidiary prices $2.35 billion notes offering

DALLAS - Applied Digital Corporation's (NASDAQ:APLD) subsidiary, APLD ComputeCo LLC, has priced a $2.35 billion offering of 9.250% senior secured notes due 2030 at an issue price of 97%, according to a company press release. This significant debt raise comes as the company, currently valued at $7.39 billion, operates with a moderate level of debt with a debt-to-equity ratio of 0.67.

The notes will be sold in a private offering to qualified institutional buyers under Rule 144A of the Securities Act. The offering is expected to close around November 20, 2025.

Proceeds will fund construction of two data centers at Applied Digital's North Dakota campus: a 100 megawatt facility (ELN-02) and a 150 megawatt facility (ELN-03). Funds will also repay existing debt under a February 2025 Credit and Guaranty Agreement with Sumitomo Mitsui Banking Corporation, establish debt service reserves, and cover transaction expenses.

The notes will be guaranteed by APLD Compute's subsidiaries and secured by first-priority liens on substantially all assets of APLD Compute and its guarantors, equity interests, and project accounts.

Applied Digital will provide completion guarantees for the facilities, committing to fund APLD Compute as needed to ensure timely completion of the data centers.

The company designs and operates data centers for artificial intelligence, cloud, networking, and blockchain workloads. Founded in 2021 and headquartered in Dallas, Applied Digital was named Best Data Center in the Americas 2025 by Datacloud.

The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption. For deeper insights into Applied Digital's financial health, valuation metrics, and 18 additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other US equities with expert analysis.

In other recent news, Applied Digital announced it has successfully completed the first 50-megawatt phase of its Polaris Forge 1 AI Factory Campus in Ellendale, North Dakota. This marks the initial delivery of a fully leased 400 MW deployment for CoreWeave, with lease agreements expected to generate approximately $11 billion in revenue. In addition, Applied Digital is set to receive $787.5 million in equity funding from Macquarie Asset Management to further develop its AI data center campuses in North Dakota. A subsidiary of the company, APLD ComputeCo LLC, plans to offer $2.35 billion in senior secured notes to fund the construction of two data centers at the Ellendale campus.

Shareholders of Applied Digital have approved an amendment to the company’s 2024 Omnibus Equity Incentive Plan, increasing the available shares by 15 million. Furthermore, Babcock & Wilcox has secured a $1.5 billion project to provide one gigawatt of power for an Applied Digital AI facility, involving the installation of natural gas-fired power plants. These developments reflect significant advancements and expansions in Applied Digital's operations and infrastructure.

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