Applied Digital Announces Proposed Offering of $2.15 Billion of Senior Secured Notes to fund Polaris Forge 2 Campus

Core Viewpoint - Applied Digital Corporation announced a private offering of $2.15 billion in senior secured notes due 2031 to fund the development of its AI Factory campus in North Dakota and related expenses [1][2]. Group 1: Offering Details - APLD Compute 2 plans to offer $2.15 billion in senior secured notes, subject to market conditions, to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S [1][5]. - The net proceeds from the offering will be used for developing 200 megawatts of critical IT load at the Polaris Forge 2 campus and to fund project accounts, including a Debt Service Reserve Account [2]. Group 2: Guarantees and Security - The notes will be fully guaranteed by APLD Compute 2's existing and future subsidiaries, which include several LLCs [3]. - The notes and guarantees will be secured by first-priority liens on substantially all assets of APLD Compute 2 and its subsidiaries, excluding certain properties [3]. Group 3: Project Completion and Funding - Applied Digital will provide completion guarantees for the Polaris Forge 2 project, ensuring necessary funding for timely completion [4]. - The offering is subject to market conditions, and there is no assurance regarding the completion or terms of the offering [4]. Group 4: Company Overview - Applied Digital, founded in 2021 and headquartered in Dallas, TX, specializes in designing and operating high-performance data centers for AI, networking, and blockchain workloads [7]. - The company was recognized as the Best Data Center in the Americas 2025 by Datacloud, highlighting its expertise in hyperscale data center solutions [7].