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

Core Viewpoint - Applied Digital Corporation has announced a $2.15 billion offering of senior secured notes to fund the development of its AI Factory campus in North Dakota and related expenses [1][2]. Group 1: Offering Details - APLD ComputeCo 2 LLC has priced the offering of 6.750% senior secured notes due 2031 at an issue price of 98% [1]. - The offering is expected to close around March 10, 2026, subject to market conditions [1][4]. - The notes will be sold to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S [1][5]. Group 2: Use of Proceeds - The net proceeds from the offering will be used to fund the development and construction of 200 megawatts of critical IT load at the Polaris Forge 2 campus [2]. - Proceeds will also be allocated to the "Project Accounts," including the Debt Service Reserve Account, and to cover related fees and expenses [2]. Group 3: Guarantees and Security - The notes will be fully guaranteed by APLD Compute 2's existing and future subsidiaries, which include several HoldCo and LandCo entities [3]. - The notes and guarantees will be secured by first-priority liens on substantially all assets of APLD Compute 2 and the Guarantors, excluding certain properties [3]. Group 4: Company Overview - Applied Digital is recognized for designing, building, and operating high-performance data centers for AI, networking, and blockchain workloads [7]. - The company was founded in 2021 and is headquartered in Dallas, TX, combining expertise in hyperscale operations and proprietary cooling technologies [7].