Applied Digital Corporation Enters into Credit Arrangement

Applied Digital Corporation, through its subsidiary APLD DevCo LLC, has entered into an ongoing credit arrangement with Macquarie Equipment Capital, Inc. for a total of $100 million. The facility, referred to as the DevCo Facility, is evidenced by a promissory note. The initial loan consists of a $45 million First Draw, which has been disbursed, and a $55 million Second Draw, subject to certain conditions. The loan accrues interest at 8.0% per annum, with a Post-Default Rate of 8.0% plus 1.5% per month. Interest will be paid-in-kind for the first twelve months, then in cash. The loan matures on December 18, 2027, with provisions for mandatory prepayment upon specific events such as a Change of Control or within days of an Initial Lease Execution. The company can also request rollovers or additional loans for new projects under an uncommitted term loan facility. Proceeds will be used for transaction expenses and funding the development of new data center projects. A Guarantee and Collateral Agreement and a Parent Guarantee have been executed in connection with the loan.