Applied Digital Secures $300M Bridge Loan for Third Polaris Forge AI Data Center
APLD•Applied Digital closed a $300 million senior secured bridge facility to fund its third AI data center at Polaris Forge 1 in Ellendale, North Dakota. The 364-day term loan carries interest at SOFR plus 275 basis points, is prepayable without premium, and is secured by the project’s assets.
1. Bridge Facility Details
Applied Digital closed a $300 million senior secured bridge facility with a 364-day maturity, bearing interest at SOFR plus 275 basis points. The term loan is prepayable at any time without premium and is secured by the assets of the Polaris Forge 1 project.
2. Project Funding and Development
Proceeds will fund construction of the company’s third AI data center at its Polaris Forge 1 campus in Ellendale, North Dakota. Completion schedules align with the bridge facility’s timeline, with additional financing to be sought for project completion.
3. Financing Strategy and Outlook
Applied Digital’s CFO emphasized a disciplined approach to capital procurement, aiming to bring new capacity online efficiently. The company plans to transition to long-term financing options once construction milestones are met.
