APLD · Applied Digital Corporation

On June 16, 2026, APLD ComputeCo 3 LLC, a subsidiary of Applied Digital Corporation, completed a private placement of $1.59 billion of 7.000% Senior Secured Notes due 2031. The notes were sold to qualified institutional buyers under Rule 144A and Regulation S. The indenture, among the Issuer, its parent APLD HPC Holdings 2 LLC, certain subsidiary guarantors, and Wilmington Trust as trustee, includes robust covenants typical for project finance, such as limitations on additional debt, liens, dividends, asset sales, and affiliate transactions, as well as a change of control put at 101%. The notes amortize semi-annually after construction completion. The offering is transformative for Applied Digital, providing capital to construct a 150 MW AI datacenter (ELN-04) at its Ellendale campus, repay existing bridge debt, fund reserves, and cover expenses. This strengthens the company's balance sheet with long-term, fixed-rate financing and supports its hyperscale AI infrastructure strategy. The establishment of a debt service reserve account and cash waterfall provides additional creditor protection.