Applied Digital Corporation Senior Secured Notes Offering

Applied Digital Corporation, through its subsidiary APLD ComputeCo 3 LLC, has completed a private offering of $1.59 billion in 7.000% Senior Secured Notes due 2031. The offering, which closed on June 16, 2026, involved the sale of notes under a purchase agreement with Goldman Sachs & Co. LLC as the representative for the initial purchasers. The net proceeds will be used to fund the construction of 150 megawatts of critical IT load at Applied Digital’s AI Factory campus in North Dakota, repay a bridge loan facility, fund debt service reserves, and cover transaction expenses. The notes are governed by an indenture with Wilmington Trust, National Association, acting as trustee and collateral agent. The notes bear interest at 7.000% per annum, payable semi-annually, and mature on June 15, 2031. Amortization of the principal will occur on a semi-annual basis starting after the final Commencement Date. The company has the option to redeem the notes on or after June 15, 2028, with specific redemption prices outlined in the indenture. The indenture includes covenants that limit the ability of the Issuer and Subsidiary Guarantors to incur additional debt, make restricted payments, create liens, and engage in certain other transactions. A customary completion guarantee has been provided by Applied Digital Corporation to ensure project completion.