Applied Digital Corporation Prices $1.59 Billion Senior Secured Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 09 2026
0mins
Source: Newsfilter
- Bond Offering Size: Applied Digital's subsidiary APLD ComputeCo 3 has successfully priced a $1.59 billion offering of 7.000% senior secured notes, expected to close on June 16, 2026, indicating strong demand and confidence in the capital markets.
- Clear Use of Proceeds: The net proceeds from this bond issuance will fund the construction of 150 megawatts of critical IT load at the fourth building, ELN-04, at the AI Factory campus in Ellendale, North Dakota, reflecting the company's ongoing investment in AI infrastructure.
- Debt Repayment Strategy: Part of the proceeds will be used to repay the bridge loan facility under the Credit and Guaranty Agreement with Goldman Sachs, ensuring a robust financial structure that enhances future financing capabilities and operational flexibility.
- Full Guarantee Mechanism: The notes will be fully and unconditionally guaranteed by APLD ComputeCo 3's existing and future subsidiaries, which boosts investor confidence and reduces financing costs, further solidifying the company's market position.
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Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 45.570
Low
36.00
Averages
52.22
High
99.00
Current: 45.570
Low
36.00
Averages
52.22
High
99.00
About APLD
Applied Digital Corporation is a designer, builder, and operator of sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. The Company’s segments include data center hosting (Data Center Hosting Business) and high-performance compute hosting (HPC Hosting Business). The Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. Customer-owned hardware is installed in its facilities, and the Company provides operational and maintenance services for a fixed fee. Its facilities include a 106 megawatt (MW) facility in Jamestown and a 180 MW facility in Ellendale, North Dakota. The HPC Hosting Business designs, builds, and operates data centers which are designed to support high-compute applications using advanced technologies and infrastructures to provide services to customers. Its HPC data center is located at its Polaris Forge 1 campus with 100 MW capacity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Long-Term Contract Expansion: This marks the third long-term lease agreement with the hyperscaler, with contracts for five AI factory campuses expected to yield $36 billion in lifetime lease revenue, demonstrating the company's ongoing expansion capabilities in the industry.
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