Why it matters
The strategic read
Turns the Polaris Forge 1 expansion from bridge-financed construction into long-term project capital. The note pricing ties private-credit demand directly to a named 150 MW AI Factory building, while Applied Digital keeps stacking leases, secured debt and completion guarantees around its Ellendale platform.
Source-supported terms
What was disclosed
- 01
Applied Digital announced on June 9, 2026 that subsidiary APLD ComputeCo 3 priced a $1.59B private offering of 7.000% senior secured notes due 2031.
- 02
The notes were priced at par and are expected to close on or around June 16, 2026, subject to market and other customary conditions.
- 03
Net proceeds are intended to fund construction and associated expenses for 150 MW of critical IT load at ELN-04, the fourth building at Polaris Forge 1 in Ellendale, North Dakota.
- 04
Applied Digital also plans to use proceeds to repay the aggregate principal balance plus accrued interest under the Goldman Sachs bridge loan facility, fund debt service reserves and pay transaction expenses.
- 05
The notes will be senior secured obligations of APLD ComputeCo 3 and are fully and unconditionally guaranteed by Applied Digital's wholly owned subsidiary APLD ELN-04 LLC.
- 06
The notes and guarantee will be secured by first-priority liens on substantially all assets of APLD ComputeCo 3 and APLD ELN-04, plus equity interests in APLD ComputeCo 3.
- 07
Applied Digital will provide a completion guarantee that requires the company to fund APLD ComputeCo 3 as needed to support timely completion of the ELN-04 project.
- 08
The securities are being sold privately to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.
- 09
The financing follows Applied Digital's June 8 announcement of a new 210 MW Delta Forge 2 lease and its broader disclosed platform of five AI Factory campuses, 1.4 GW of contracted critical IT load and about 2.15 GW of grid-connected utility power.
Disclosure boundary
What is known—and what is not
Primary Applied Digital press release. Public details disclose the note size, coupon, maturity, par pricing, expected close date, proceeds use, ELN-04 150 MW construction target, bridge-loan repayment, collateral package and completion guarantee. Public materials do not disclose the full indenture, investor allocations, project budget line items, construction contracts, customer capacity tied specifically to ELN-04, power-supply contracts, draw schedule, covenant package, prepayment terms or final closing confirmation.