Applied Digital Corporation Announces Closing of $450 Million of Convertible Notes Offering

Core Viewpoint - Applied Digital Corporation has successfully completed a private offering of $450 million in 2.75% Convertible Senior Notes due 2030, which includes an additional $75 million exercised by initial purchasers [1][3] Group 1: Offering Details - The offering was made to qualified institutional buyers under Rule 144A of the Securities Act of 1933 [1] - The net proceeds from the sale of the Convertible Notes were approximately $434.5 million after deducting discounts, commissions, and estimated offering expenses [3] - The company plans to use approximately $84 million of the net proceeds for share repurchases, including $52.7 million for prepaid forward repurchase costs and $31.3 million for common stock repurchases [3] Group 2: Capped Call Transactions - In conjunction with the issuance of the Convertible Notes, the company entered into capped call transactions with a cap price of $14.72, representing a 100% premium over the last reported sale price [2] - The overall transaction is expected to have potential net dilution implications, which are illustrated in a provided table [2] Group 3: Company Overview - Applied Digital develops, builds, and operates next-generation data centers and cloud infrastructure, focusing on high-performance computing applications [4] - The company's facilities are designed to support AI, machine learning, blockchain, and HPC workloads, backed by deep hyperscale expertise [4]