Applied Digital Announces Proposed Offering of $1.59 Billion of Senior Secured Notes to fund the Fourth Building at Polaris Forge 1
Rhea-AI Summary
Applied Digital (NASDAQ: APLD) announced a proposed private offering of $1.59 billion senior secured notes due 2031 by subsidiary APLD ComputeCo 3.
Net proceeds are intended to fund a 150 MW fourth building at Polaris Forge 1, repay a Goldman Sachs bridge loan, fund debt reserves, and cover transaction costs.
Positive
- Proposed $1.59 billion senior secured notes due 2031 to fund growth
- Proceeds intended to finance 150 MW ELN-04 data center capacity
- Plan to repay existing Goldman Sachs bridge loan with note proceeds
- Notes guaranteed by current and future subsidiaries, with first-priority liens on collateral
Negative
- Transaction would add up to $1.59 billion in new senior secured debt
- Offering is subject to market conditions and may not be completed
- First-priority liens on assets and equity increase encumbrance of collateral
News Market Reaction – APLD
In the Jun 9 session, APLD gained 2.36%, reflecting a moderate positive market reaction. Argus tracked a peak move of +3.7% during that session. Argus tracked a trough of -14.2% from its starting point during tracking. Our momentum scanner triggered 56 alerts that day, indicating high trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Offering Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 02 | Debt notes offering | Neutral | -6.4% | Proposed $2.15B senior secured notes to fund Polaris Forge 2 campus. |
| Nov 10 | Debt notes offering | Neutral | +1.5% | Proposed $2.35B senior secured notes for ELN‑02 and ELN‑03 build-out. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Past secured note offerings under the offering tag saw an average next-day move of -2.45%, with one negative and one modestly positive reaction, indicating mixed market responses to similar financings.
Over the past year, APLD has repeatedly used large senior secured note offerings to fund its AI Factory build-out. A $2.35 billion notes proposal in Nov 2025 targeted two Polaris Forge 1 data centers, and a $2.15 billion offering in Mar 2026 aimed at the Polaris Forge 2 campus. These financings, averaging a -2.45% next-day move, frame today’s $1.59 billion ELN‑04 notes proposal as another step in the same capital-intensive expansion strategy.
Key Terms
senior secured notes financial
rule 144a regulatory
regulation s regulatory
collateral agent financial
completion guarantee financial
first-priority liens financial
private offering financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
DALLAS, June 09, 2026 (GLOBE NEWSWIRE) -- Applied Digital Corporation (NASDAQ: APLD) (“Applied Digital” or the “Company”), a leading designer, builder and operator of high-performance, sustainably engineered data centers and colocation services for Artificial Intelligence (“AI”), networking, and blockchain workloads, today announced that its subsidiary, APLD ComputeCo 3 LLC (“APLD ComputeCo 3”), intends to offer, subject to market conditions and other factors,
APLD ComputeCo 3 intends to use the net proceeds from the offering to (i) fund the construction and associated expenses of 150 megawatts of critical IT load at the fourth building (“ELN-04”) at Polaris Forge 1, Applied Digital’s AI Factory campus at Ellendale, North Dakota, (ii) repay the aggregate principal balance plus any accrued interest under the Credit and Guaranty Agreement with Goldman Sachs Bank USA, as administrative agent and as collateral agent and the lenders party thereto, which was provided as a bridge loan facility, (iii) fund debt service reserves, and (iv) pay transaction expenses.
The Notes will be fully and unconditionally guaranteed by APLD ComputeCo 3’s future and existing direct and indirect subsidiaries, which as of today include APLD ELN-04 HoldCo LLC, APLD ELN-04 LLC and APLD ELN-04 LandCo LLC (collectively, the “Guarantors”). The Notes and related guarantees will be secured by first-priority liens on (i) substantially all assets of APLD ComputeCo 3 and the Guarantors, other than certain excluded property, and (ii) all equity interests of APLD ComputeCo 3 held by APLD HPC Holdings 2 LLC, a Delaware limited liability company and the direct parent company of APLD ComputeCo 3.
Applied Digital will provide a customary completion guarantee with respect to the ELN-04 project, under which it will fund APLD ComputeCo 3 as necessary to ensure the timely completion of the ELN-04 project.
The offering is subject to market and other conditions, and there can be no assurance as to whether, when or on what terms the offering may be completed.
The Notes have not been registered under the Securities Act, securities laws of any other jurisdiction, and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and any applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act.
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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, 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.
Caution About 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, the proposed terms of the Notes, the completion, timing and size of the proposed offering of the Notes, the anticipated use of proceeds from the proposed offering, 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,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “deliver,” “outlook,” “demonstrates,” “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 campus development, (ii) statements about the 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, and (v) statements of assumptions underlying other statements and statements about the Company or its business. 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: the Company’s ability to complete construction of the data centers at its campuses; changes to AI and HPC infrastructure needs and their impact on future plans; risks associated with the leasing business, including those associated with counterparties; costs related to the HPC operations and strategy; the Company’s ability to timely deliver any services required in connection with completion of installation under the lease agreements; the Company’s ability to raise additional capital to fund ongoing and future data center construction and operations; the Company’s ability to obtain financing of the lease agreements on acceptable financing terms, or at all; the Company’s dependence on principal customers, including its ability to execute and perform its obligations under its leases with key customers, including without limitation, the lease agreements; the Company’s ability to timely and successfully build 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 the Company’s business; decline in demand for the Company’s 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 and APLD ComputeCo 3 do 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
