Applied Digital Announces $300 Million Senior Secured Bridge Facility

Applied Digital (NASDAQ: APLD) closed a $300 million senior secured bridge facility led by Goldman Sachs on May 4, 2026 to fund development of its third AI data center at Polaris Forge 1 in Ellendale, North Dakota.

Rhea-AI Summary

Applied Digital (NASDAQ: APLD) closed a $300 million senior secured bridge facility led by Goldman Sachs on May 4, 2026 to fund development of its third AI data center at Polaris Forge 1 in Ellendale, North Dakota. The facility is a 364-day term loan secured by project assets and bears interest at SOFR + 275 bps. The loan is prepayable without premium. Applied Digital expects to seek additional financing to complete construction and may transition the project to longer-term financing when appropriate.

Positive

• $300 million committed to Polaris Forge 1 project
• Facility is senior secured and asset-backed
• Loan is prepayable without premium
• Facility led by Goldman Sachs, providing capital-market access

Negative

• Short 364-day maturity creates near-term refinancing need
• Interest cost at SOFR + 275 bps increases financing expense
• Company expects to seek additional financing, implying future capital raises

Argus May 4 session

+6.20% close to close Open Argus

Details

News Market Reaction – APLD

On May 4, the day this news came out, APLD closed 6.20% above the previous close.

Data tracked by StockTitan Argus for the May 4 session.

Key Figures

Bridge facility size: $300 million Term loan amount: $300 million Loan maturity: 364 days +1 more

Bridge facility size

$300 million

Senior secured bridge facility led by Goldman Sachs

Term loan amount

$300 million

Single term loan under bridge facility

Loan maturity

364 days

Maturity of senior secured bridge term loan

Interest spread

SOFR + 275 basis points

Interest rate on the bridge term loan

Historical Context

5 past events · Latest: Apr 23

5 events

1. Apr 23

   Hyperscaler AI lease

   24h Move

   +12.1%

   15-year hyperscaler lease at Delta Forge 1 adding major contracted revenue.

2. Apr 8

   Earnings release

   24h Move

   -8.0%

   Strong revenue growth but large net loss in fiscal Q3 2026 results.

3. Mar 19

   Conference call notice

   24h Move

   -2.9%

   Scheduling details for upcoming fiscal Q3 2026 conference call.

4. Mar 4

   Debt financing

   24h Move

   +9.6%

   Pricing of $2.15 billion senior secured notes to fund Polaris Forge 2.

5. Mar 4

   Power project update

   24h Move

   +9.6%

   Notice to proceed on $2.4 billion power project supporting APLD campuses.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior secured bridge facility, term loan, secured overnight financing rate, SOFR, +1 more

5 terms

senior secured bridge facility financial

"today announced the closing of a $300 million senior secured bridge facility"

A senior secured bridge facility is a short-term loan that has first priority for repayment and is backed by the borrower’s assets as collateral. It acts like a temporary financial bridge that keeps a company running or completes a transaction until longer-term funding or a sale is arranged, and it matters to investors because it changes who gets paid first, affects short-term cash risk and interest costs, and can signal urgency about the company’s funding needs.

term loan financial

"The bridge facility consists of a $300 million term loan with a 364-day maturity"

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

secured overnight financing rate financial

"bearing interest at the Secured Overnight Financing Rate (“SOFR”) plus 275 basis points"

A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.

SOFR financial

"bearing interest at the Secured Overnight Financing Rate (“SOFR”) plus 275 basis points"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

basis points financial

"at the Secured Overnight Financing Rate (“SOFR”) plus 275 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DALLAS, May 04, 2026 (GLOBE NEWSWIRE) -- Applied Digital Corporation (NASDAQ: APLD), a designer, builder, and operator of high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads, today announced the closing of a $300 million senior secured bridge facility led by Goldman Sachs.

The facility is intended to fund the continued development and construction of the Company’s third AI data center at its Polaris Forge 1 campus in Ellendale, North Dakota. Applied Digital expects to seek additional financing to fund the completion of construction.

The bridge facility consists of a $300 million term loan with a 364-day maturity, bearing interest at the Secured Overnight Financing Rate (“SOFR”) plus 275 basis points. The loan is prepayable at any time without premium and is secured by the assets of the project.

“This financing supports the continued development of our third AI data center at Polaris Forge 1 and reflects our disciplined approach to funding projects in line with construction timelines,” said Saidal Mohmand, Chief Financial Officer of Applied Digital. “We are focused on procuring capital efficiently to move projects forward and bring capacity online as planned, while maintaining flexibility to transition to long-term financing.”

About Applied Digital

Applied Digital (Nasdaq: APLD) named Best Data Center in the Americas 2025 by Datacloud — designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. Headquartered in Dallas, TX, and founded in 2021, the company combines hyperscale expertise, proprietary waterless cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its award-winning Polaris Forge AI Factory model.

Learn more at applieddigital.com or follow @APLDdigital on X and LinkedIn.

Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives and future financing plans. These statements use words, and variations of words, such as “will,” “intend,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding lease agreements and any current or prospective data center campus development; (ii) statements about the high-performance computing (HPC) industry; (iii) statements of company plans and objectives, including the company’s evolving business model, or estimates or predictions of actions by suppliers; (iv) statements of future economic performance; (v) statements of assumptions underlying other statements and statements about the company or its business; and (vi) the company’s plans to obtain future project financing. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the company’s expectations and projections. These risks, uncertainties, and other factors include, among others: our ability to complete construction of our data center campuses as planned; the lead time of customer acquisition and leasing decisions and related internal approval processes; changes to artificial intelligence and HPC infrastructure needs and their impact on future plans; costs related to the HPC operations and strategy; our ability to timely deliver any services required in connection with completion of installation under lease agreements; our ability to raise additional capital to fund the ongoing datacenter construction and operations; our ability to obtain financing of datacenter leases on acceptable financing terms, or at all; our dependence on principal customers, including our ability to execute and perform our obligations under our leases with key customers, including without limitation, the datacenter leases with hyperscalers; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; maintenance of third party relationships; and conditions in the debt and equity capital markets. A further list and description of these risks, uncertainties and other factors can be found in the company’s most recently filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, including in the sections captioned “Forward-Looking Statements” and “Risk Factors,” and in the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, on the company’s website (www.applieddigital.com) under “Investors,” or on request from the company. Information in this release is as of the dates and time periods indicated herein, and the company does not undertake to update any of the information contained in these materials, except as required by law.

Media Contact
JSA (Jaymie Scotto & Associates)
(856) 264-7827
jsa_applied@jsa.net

Investor Relations Contacts
Matt Glover or Ralf Esper
Gateway Group, Inc.
(949) 574-3860
APLD@gateway-grp.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Applied Digital (APLD) announce on May 4, 2026 regarding financing?

Applied Digital closed a $300 million senior secured bridge facility to fund Polaris Forge 1 construction. According to the company, the term loan matures in 364 days and is secured by project assets.

How long is the bridge loan for Applied Digital (APLD) and what are the terms?

The bridge loan has a 364-day maturity and is prepayable without premium. According to the company, it bears interest at SOFR + 275 basis points and is asset-secured.

What will the $300 million bridge facility fund for Applied Digital (APLD)?

The facility is intended to fund construction of Applied Digital’s third AI data center at Polaris Forge 1 in Ellendale, North Dakota. According to the company, it supports continued development and construction timelines.

Does the Applied Digital (APLD) bridge loan affect future financing plans?

Yes. The company expects to seek additional financing to complete construction and may transition to long-term financing. According to the company, the bridge provides near-term capital and flexibility.

Who led the $300 million bridge facility for Applied Digital (APLD)?

Goldman Sachs led the senior secured bridge facility for Applied Digital. According to the company, Goldman Sachs arranged the $300 million term loan for the Polaris Forge 1 project.

What are the investor risks from Applied Digital's (APLD) bridge financing?

Near-term refinancing risk from the 364-day maturity and higher financing cost at SOFR + 275 bps are primary risks. According to the company, additional capital raises may be required to finish construction.