Applied Digital Prices $2.15B of 6.75% Notes to Fund 200MW AI Campus
Applied Digital subsidiary priced $2.15 billion of 6.75% senior secured notes due 2031 at 98%, closing March 10. Proceeds will fund development of 200 MW critical IT load at Polaris Forge 2 AI Factory in Harwood, North Dakota, and support project account requirements and completion guarantees.
1. Offering Terms
APLD ComputeCo 2 LLC priced $2.15 billion of 6.75% senior secured notes due 2031 at 98% of face value. The private placement targets qualified institutional buyers and non-US persons and is expected to close around March 10 subject to customary conditions.
2. Use of Proceeds
Net proceeds will finance development and construction of 200 megawatts of critical IT load at the Polaris Forge 2 AI Factory campus in Harwood, North Dakota, satisfy project account requirements including a Debt Service Reserve Account, and cover related transaction fees.
3. Security and Guarantees
The notes will be fully and unconditionally guaranteed by APLD ComputeCo 2’s existing and future subsidiaries, backed by first-priority liens on all assets of the issuer and guarantors plus equity interests held by APLD FAR Holdings LLC.
4. Business Overview
Applied Digital designs, develops and operates digital infrastructure solutions for high-performance computing and AI industries across North America through its Data Center Hosting and HPC Hosting businesses.