Applied Digital raised $1.59 billion in 7% notes to fund 150 MW of AI data center load at its Polaris Forge 1 campus, replacing a Goldman Sachs bridge loan.
Applied Digital (NASDAQ:APLD) raised $1.59 billion in a private offering of 7% senior secured notes due 2031. The company will use the proceeds to fund 150 megawatts of IT load at its Polaris Forge 1 AI data center campus in Ellendale, North Dakota, and to repay a $300 million bridge loan from Goldman Sachs (GS).
The notes pay interest semi-annually and are secured by first-priority liens on the issuer's assets. The five-year maturity replaces shorter-term construction debt, giving the project a stable capital base through the build-out phase, the company said. The 7% fixed rate locks in borrowing costs for the project.
The Ellendale campus is anchored by long-term leases with CoreWeave, a cloud provider focused on AI workloads. CoreWeave uses the site to offer cloud services for AI model training and inference. Applied Digital provided completion guarantees to ensure funding stays available to meet development timelines, it said.
Applied Digital builds and operates digital infrastructure for AI and high-performance computing companies. Headquartered in Dallas, the company was founded in 2021 by Wes Cummins and Jason Zhang. It owns data centers and GPU computing solutions.
The $1.59 billion sum was placed with qualified institutional investors in a single tranche. The notes are not registered under the Securities Act and may not be offered in the U.S. absent registration or an exemption.
The debt deal addresses a near-term financing risk. The bridge loan from Goldman Sachs had shorter maturities. The new notes provide fixed-rate capital for five years, reducing refinancing uncertainty.
Construction at the Polaris Forge 1 campus is a concentrated bet on AI infrastructure. CoreWeave's long-term leases provide a contracted cash flow stream. The campus is designed to house high-density GPU clusters. 150 megawatts of IT load can power thousands of high-end GPUs.
Applied Digital has not disclosed an expected completion date for the campus. The company said the completion guarantees ensure the timeline can be met.
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