Applied Digital (NASDAQ: APLD), through its subsidiary APLD ComputeCo 3, has priced a $1.59 billion offering of 7.000% senior secured notes due 2031 at par.
The transaction is expected to close on or around June 16, 2026, marking a significant milestone in the company’s ongoing AI infrastructure expansion.
Proceeds from the offering will fund construction and associated expenses for an additional 150 megawatts of critical IT load at the fourth building of Polaris Forge 1.
Polaris Forge 1 is Applied Digital’s flagship AI Factory campus, located in Ellendale, North Dakota, and represents the centerpiece of the company’s hyperscale infrastructure ambitions.
Additional proceeds will be directed toward funding debt service reserves and covering transaction expenses related to the deal.
The notes will be sold in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933, and to non-U.S. persons outside the United States under Regulation S.
The notes will be fully and unconditionally guaranteed by APLD ComputeCo 3’s existing and future direct and indirect subsidiaries, including APLD ELN-04 HoldCo LLC, APLD ELN-04 LLC, and APLD ELN-04 LandCo LLC.
Security for the notes and related guarantees will include first-priority liens on substantially all assets of APLD ComputeCo 3 and the guarantors, along with all equity interests held by APLD HPC Holdings 2 LLC.
Applied Digital will provide a customary completion guarantee for the ELN-04 project, committing to fund APLD ComputeCo 3 as necessary to ensure the project’s timely completion.
The capital raise signals Applied Digital’s continued ability to access institutional debt markets at scale, supporting its rapidly expanding AI campus portfolio across the United States.
The sheer size of the offering reflects strong institutional appetite for hyperscale AI infrastructure assets, a sector that has attracted enormous capital flows in recent years.
With 150 megawatts of additional critical IT load planned for the fourth building at Polaris Forge 1, Applied Digital is positioning itself as a major player in next-generation AI data center development.
