Applied Digital Corporation (NASDAQ: APLD) has closed a $1.59 billion private offering of 7.000% senior secured notes due 2031, priced at par through its subsidiary APLD ComputeCo 3.
The transaction closed around June 16, 2026, with proceeds directed toward expanding the company’s Polaris Forge 1 AI data center campus in Ellendale, North Dakota.
Specifically, the funds will finance construction of a new facility designated ELN-04, which will deliver 150 megawatts of critical IT load capacity to the campus.
ELN-04 represents the fourth building in the Polaris Forge 1 expansion sequence, continuing Applied Digital’s aggressive buildout of large-scale AI infrastructure across North Dakota.
Proceeds will also be used to repay the aggregate principal balance plus accrued interest under a Credit and Guaranty Agreement with Goldman Sachs Bank USA, which served as a bridge loan facility.
Additional uses of funds include financing debt service reserves and covering transaction expenses associated with the offering.
The notes carry full and unconditional guarantees from certain ELN-04 subsidiaries and are secured by first-priority liens on substantially all of their assets and related equity interests.
Applied Digital has also provided a completion guarantee for the ELN-04 project, offering bondholders an additional layer of protection against construction risk.
This latest raise follows a $2.15 billion senior secured notes offering that closed in March 2026, which was structured to finance the company’s Polaris Forge 2 campus in Harwood, North Dakota.
The two transactions combined represent over $4 billion in debt financing raised within a single quarter, signaling strong creditor confidence in Applied Digital’s asset base and revenue prospects.
On June 5, 2026, Applied Digital entered into a Memorandum of Understanding with CoreWeave to assign the lease for Building 3 at Polaris Forge 1 to a CoreWeave subsidiary, contingent on that subsidiary achieving an investment-grade credit rating.
Applied Digital has secured a series of long-term, take-or-pay leases with U.S.-based investment-grade hyperscalers, anchoring significant portions of its future revenue against creditworthy counterparties.
Among those deals is a 15-year, 210 MW agreement at Delta Forge 2 valued at approximately $5.2 billion and a 15-year, 300 MW lease at Polaris Forge 3 valued at approximately $7.5 billion.
These agreements lift the company’s contracted AI data center portfolio to roughly $36 billion in total value across five campuses and more than 1.4 gigawatts of critical IT load.
While the debt accumulation strengthens Applied Digital’s construction pipeline, equity investors remain subordinate to senior secured noteholders in any liquidation scenario, a structural consideration as leverage continues to grow.
Applied Digital serves AI, networking, and blockchain applications, and has increasingly relied on traditional capital markets to fund its rapid infrastructure expansion.
