APLD · Applied Digital Corporation

Applied Digital Corporation executed two significant financing transactions on June 26, 2026, substantially increasing its liquidity. The first is an $80 million increase to its secured revolving credit facility, raising total commitments to $430 million, with an accordion feature allowing further expansion to $550 million. The facility, maturing in May 2029, provides a $350 million letter of credit sub-facility and bears interest at Term SOFR plus 2.25% or base rate plus 1.25%. Proceeds will be used to refinance existing debt, fund general corporate purposes, and support working capital. The credit agreement is secured by substantially all assets of the company and its restricted subsidiaries.

The second transaction is the Sixth Amendment to the Preferred Equity Purchase Agreement (PEPA), increasing the aggregate commitment from $1.59 billion to $2.0 billion. The PEPA allows the company to sell shares of Series G Convertible Preferred Stock to B. Riley and its affiliates in private placements exempt from registration. This equity-like funding provides additional financial flexibility for Applied Digital's AI cloud services and crypto datacenter hosting segments. Together, these actions strengthen the company's balance sheet and support its capital-intensive data center expansion plans.