Applied Digital Announces Pricing of $1.59 Billion of Senior Secured Notes to fund the Fourth Building at Polaris Forge 1
Applied Digital said its subsidiary APLD ComputeCo 3 priced a $1.59 billion private offering of 7.000% senior secured notes due 2031 at par, expected to close around June 16, 2026. Net proceeds will fund 150 MW of IT load for ELN-04 at Polaris Forge 1 and repay a Goldman Sachs bridge loan, plus reserves and fees. Notes are guaranteed by subsidiaries and secured by first-priority liens.
How this was made
The 30-second read
Why it matters
The priced notes provide incremental funding for ELN-04 construction while refinancing/repaying an existing Goldman Sachs bridge facility; the secured, guaranteed structure can influence perceived credit risk and capital-structure expectations.
Market read
A $1.59B secured debt print with defined use of proceeds (150MW ELN-04 build + bridge repayment) is a concrete capital-markets catalyst for APLD.
What to watch
Key sensitivities are the completion guarantee mechanics for ELN-04 and whether leasing/counterparty performance supports the project’s cash flows; the release doesn’t quantify margins or lease terms.
Background
Applied Digital is building out its Polaris Forge AI Factory campus in Ellendale, North Dakota, and this offering is explicitly earmarked for the fourth building’s 150MW IT load.
Ticker impact
Applied Digital priced $1.59B of 7.000% senior secured notes to fund ELN-04 (150MW) and repay a Goldman Sachs bridge loan.
Near-term sentiment likely mixed: supports funding visibility for ELN-04, but adds leverage/financing overhang.
The article discloses the size, coupon, maturity, use of proceeds, and that the notes are first-priority lien secured and guaranteed by subsidiaries—enough to model capital-structure impact, but no guidance or equity issuance details are provided.
Market effects
Reinforces ongoing AI data-center financing demand via secured note structures and project-level funding.
Supports continued hyperscale buildout in North Dakota (Ellendale) tied to Polaris Forge 1 expansion.
Limited direct global read-through; primarily affects US AI infrastructure capital markets and high-yield/secured debt appetite.
Counterpoint
Because proceeds repay a bridge loan and the notes are project-financed with first-priority liens, the net risk may be lower than headline leverage suggests.
Key entities
- issuerApplied Digital Corporation
Designer, builder, and operator of AI-focused data centers; parent company providing a completion guarantee for ELN-04.
- subsidiaryAPLD ComputeCo 3 LLC
Pricing entity for the $1.59B senior secured notes; guarantor structure and lien collateral are tied to this entity and its subsidiaries.
- lenderGoldman Sachs Bank USA
Administrative/collateral agent for the bridge loan facility being repaid with net proceeds.
