Applied Digital Secures Private Debt Facility of up to $200 million to Accelerate HPC Data Center Project in Ellendale, North Dakota

Core Viewpoint - Applied Digital Corporation has secured a $125 million initial commitment for the construction of its HPC Campus in Ellendale, ND, with the potential to increase this amount to $200 million, positioning the company as a leader in the HPC datacenter sector [1][2]. Financing Details - The financing includes a Promissory Note for $125 million, with $15 million available immediately and the remainder contingent on certain conditions [1]. - An accordion feature allows for an additional $75 million in borrowings, subject to mutual agreement [1]. - The Note has a three-year term with an initial interest rate of 12.0% per annum, payable quarterly [2]. Strategic Positioning - The financing is viewed as a transformative step for the company, enabling it to secure project financing and a long-term lease with a hyperscaler [2]. - The Ellendale Campus is expected to be a leading HPC datacenter, designed to support the AI revolution and provide efficient solutions for high-performance computing needs [2][3]. Company Overview - Applied Digital designs, develops, and operates next-generation data centers across North America, focusing on the high-performance computing (HPC) industry [5]. - The company aims to deliver cost-effective GPU computing solutions tailored for AI, machine learning, and other HPC workloads [3]. Partner Information - CIM Group, a leading investment firm, is providing the financing and has expressed excitement about supporting Applied Digital's growth in cloud and hosting services [2][8].