Applied Digital issues $2.35B 9.25% senior secured notes due 2030

Applied Digital Corporation announced that its subsidiary APLD ComputeCo LLC has completed a private offering of $2.35 billion of 9.250% Senior Secured Notes due 2030, issued at 97% of principal.

Rhea-AI Filing Summary

Applied Digital Corporation announced that its subsidiary APLD ComputeCo LLC has completed a private offering of $2.35 billion of 9.250% Senior Secured Notes due 2030, issued at 97% of principal. The notes are senior secured obligations that pay interest semi-annually each June 15 and December 15, beginning June 15, 2026, and amortize semi-annually starting December 15, 2027, under an Indenture with Wilmington Trust as trustee and collateral agent.

The company intends to use the net proceeds to help fund construction and related costs for its 100 MW and 150 MW ELN-02 and ELN-03 data centers at its 400 MW Ellendale, North Dakota campus, repay a credit and guaranty facility with Sumitomo Mitsui Banking Corporation, fund debt service reserves, and pay transaction expenses. The Indenture includes customary covenants restricting additional debt, liens, dividends, investments, asset sales, affiliate transactions, and mergers, and requires the Issuer to offer to repurchase the notes at 101% upon certain change of control events. Applied Digital will also provide a completion guarantee for each project related to these facilities.

Insights

Credit & Capital Structure Analyst

Applied Digital adds $2.35B of secured debt to fund large data centers.

Applied Digital has financed major capacity expansion through a private offering of $2.35 billion 9.250% Senior Secured Notes due 2030, issued at 97% of principal. The notes sit as senior secured obligations of APLD ComputeCo LLC and are guaranteed by specified subsidiaries, indicating lenders have claims on key assets supporting the new ELN-02 and ELN-03 facilities.

Proceeds are allocated to funding construction of 100 MW and 150 MW data centers at the Ellendale, North Dakota campus, repaying a Credit and Guaranty Agreement with Sumitomo Mitsui Banking Corporation, establishing debt service reserves, and covering transaction costs. This shifts the capital mix toward secured term debt while refinancing existing borrowings into longer-dated notes that mature on December 15, 2030 with semi-annual amortization starting in December 2027.

The Indenture includes restrictive covenants on additional indebtedness, liens, dividends, investments, asset sales, and affiliate transactions, plus a change of control put at 101% of principal. A completion guarantee from the company for each project means Applied Digital must supply funds if note proceeds and prior equity are insufficient to achieve the agreed commencement dates under the datacenter leases, tying corporate liquidity to timely completion of these specific facilities.

8-K Event Classification

Item 1.01 — Entry into a Material Definitive Agreement

1 item

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

FAQ

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

What did Applied Digital (APLD) announce in this 8-K?

Applied Digital reported that its subsidiary APLD ComputeCo LLC completed a private offering of $2.35 billion in 9.250% Senior Secured Notes due 2030 under an Indenture with Wilmington Trust as trustee and collateral agent.

What are the key terms of Applied Digitals new senior secured notes?

The notes are 9.250% Senior Secured Notes due 2030, issued at 97.000% of principal. Interest is payable semi-annually on June 15 and December 15, starting June 15, 2026, and the principal amortizes semi-annually beginning December 15, 2027, as set out in the Indenture.

How will Applied Digital use the $2.35 billion in note proceeds?

The company intends to use net proceeds to fund construction and related expenses for its 100 MW ELN-02 and 150 MW ELN-03 data centers at the 400 MW Ellendale, North Dakota campus, repay amounts under a Credit and Guaranty Agreement with Sumitomo Mitsui Banking Corporation, fund debt service reserves, and pay transaction expenses.

What covenants and protections are included in the new Indenture for APLD?

The Indenture limits the Issuer and Subsidiary Guarantors from incurring additional debt, paying certain dividends or restricted payments, making certain investments, creating liens, completing specified asset sales, entering sale-leaseback transactions, engaging in unrelated operations, and entering certain affiliate transactions or mergers. It also requires an offer to repurchase the notes at 101% of principal plus accrued interest upon specified change of control events and includes customary events of default.

What completion guarantee is Applied Digital providing for these projects?

Applied Digital will provide a completion guarantee for each project related to the ELN-02 and ELN-03 facilities. This requires the company to provide funds to the Issuer as needed to reach the applicable Commencement Date under each datacenter lease if note proceeds and available funds, including prior equity contributions, are insufficient.

Who could buy Applied Digitals new notes and under what rules?

The notes were sold to initial purchasers for resale to persons reasonably believed to be qualified institutional buyers under Rule 144A of the Securities Act and to certain non-U.S. persons under Regulation S.

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

Understanding 8-K Material Events →

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Accepted by SEC EDGAR 11/20/2025 - 05:00 PM Learn about SEC filing dates

false 0001144879 0001144879 2025-11-20 2025-11-20 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

November 20, 2025

(Date of earliest event reported)

APPLIED DIGITAL CORPORATION

(Exact name of registrant as specified in its charter)

Nevada		001-31968		95-4863690
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

3811 Turtle Creek Boulevard, Suite 2100, Dallas, Texas		75219
(Address of principal executive offices)		(Zip Code)

214-427-1704

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		APLD		Nasdaq Global Select Market

Item 1.01. Entry into a Material Definitive Agreement.

Senior Secured Notes Offering

General

On November 20, 2025, APLD ComputeCo LLC (“Issuer”), a subsidiary of Applied Digital Corporation (the “Company” or “Applied Digital”), completed its previously announced private offering of 9.250% Senior Secured Notes due 2030 (the “notes”). The notes were sold under a purchase agreement, dated as of November 13, 2025 and as amended thereafter, entered into by and among the Issuer, the subsidiary guarantors party thereto (the “Subsidiary Guarantors”) and Morgan Stanley & Co. LLC as the representative (the “Representative”) of the several initial purchasers named in Schedule I thereto (the “Initial Purchasers”), for resale to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act. The aggregate principal amount of notes sold in the offering was $2.35 billion.

The notes were issued at a price equal to 97.000% of their principal amount. The Issuer intends to use the net proceeds from the offering to fund a portion of the construction and associated expenses of its 100 megawatt (“MW”) and 150 MW data centers, ELN-02 and ELN-03, respectively (the “Facilities”), at Applied Digital’s 400 MW Ellendale, North Dakota data center campus, repay the aggregate principal balance plus any accrued and unpaid interest under the Credit and Guaranty Agreement, dated as of February 11, 2025, by and among APLD HPC Holdings LLC (a subsidiary of Applied Digital), the subsidiary guarantors thereunder, the lenders party thereto and Sumitomo Mitsui Banking Corporation, as administrative agent and as collateral agent, fund debt service reserves, and pay transaction expenses.

Indenture

On November 20, 2025, the Issuer, APLD HPC Holdings 2 LLC (the direct parent of the Issuer) and the Subsidiary Guarantors entered into an indenture (the “Indenture”) with respect to the notes with Wilmington Trust, National Association, as trustee (the “Trustee”) and collateral agent (the “Collateral Agent”). The notes are senior secured obligations of the Issuer and bear interest at a rate of 9.250% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2026. The notes will mature on December 15, 2030, unless earlier redeemed or repurchased in accordance with their terms. The principal amount of the notes will amortize on a semi-annual basis on June 15 and December 15 of each year, beginning on December 15, 2027, in amounts set forth in the Indenture. Required amortization shall be subject to adjustment in case of partial redemption or repurchase or, in certain circumstances, the issuance of additional notes.

Redemption

On or after December 15, 2027, the Issuer may redeem the notes at its option, in whole at any time or in part from time to time, at the redemption prices set forth in the Indenture. Prior to December 15, 2027, the Issuer may redeem the notes at its option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the notes redeemed, plus a “make-whole” premium and accrued and unpaid interest, if any. In addition, prior to December 15, 2027, the Issuer may redeem up to 40% of the aggregate principal amount of the notes in an amount not to exceed the amount of the proceeds of certain equity offerings, at the redemption price set forth in the Indenture, plus accrued and unpaid interest.

Certain Covenants

The Indenture limits the ability of the Issuer and the Subsidiary Guarantors to, among other things: (i) incur or guarantee additional indebtedness; (ii) pay dividends or distributions on, or redeem or repurchase, capital stock and make other restricted payments; (iii) make certain investments; (iv) create or incur liens; (v) consummate certain asset sales; (vi) enter into sale and lease back transactions; (vii) hold assets or conduct operations unrelated to the operation of the Facilities and certain additional projects; (viii) engage in certain transactions with its affiliates; and (ix) merge, consolidate or transfer or sell all or substantially all of its assets. These covenants are subject to a number of important qualifications and exceptions as set forth in the Indenture. Additionally, upon the occurrence of specified change of control events, the Issuer must offer to repurchase the notes at 101% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the purchase date. The Indenture also provides for customary events of default.

The foregoing description of the Indenture and the notes does not purport to be complete and is qualified in its entirety by reference to the full text of the Indenture (and the form of note included therein), a copy of which is filed with this Current Report on Form 8-K as Exhibit 4.1 and 4.2 hereto and is hereby incorporated herein by reference.

Completion Guarantee

The Company will provide a customary completion guarantee with respect to each Project (as defined in the Indenture) related to the Facilities, which will require the Company to provide the Issuer funds as necessary to ensure the achievement of the applicable Commencement Date (as defined in the Indenture) under the respective datacenter lease in the event that the proceeds of the notes and the available funds (including previous equity contributions from the Company) are insufficient to do so.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

Forward Looking Statements

Statements in this Current Report on Form 8-K about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the anticipated use of any proceeds from the offering, and the terms of the notes. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including uncertainties related to market conditions and the completion of the offering on the anticipated terms or at all, the other factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on July 30, 2025 and the risks described in other filings that the Company may make from time to time with the SEC. Any forward-looking statements contained in this Current Report on Form 8-K speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required by applicable law.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
4.1		Indenture, dated as of November 20, 2025, among APLD ComputeCo LLC, APLD HPC Holdings 2 LLC, the Subsidiary Guarantors as defined therein and Wilmington Trust, National Association, as trustee and collateral agent, relating to the 9.250% senior secured notes.
4.2		Form of Note representing the 9.250% Senior Secured Notes due 2030 (included as Exhibit A to Exhibit 4.1).
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 20, 2025	APPLIED DIGITAL CORPORATION
	By:	/s/ Saidal Mohmand
	Name:	Saidal Mohmand
	Title:	Chief Financial Officer