The $1.59B note offering is a major capital raise that funds the next phase of Applied Digital's AI data center buildout, signaling strong institutional confidence in the company's execution and the CoreWeave relationship. Traders should monitor the pricing and terms of the notes, as well as any updates on the CoreWeave lease assignment MOU, which could de-risk the project if the subsidiary achieves investment grade.
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Executive Summary
Applied Digital announced it closed a $350M revolving credit facility (with a $200M accordion option) on May 29, 2026, arranged by Goldman Sachs, and separately disclosed a proposed $1.59B senior secured notes offering by its subsidiary APLD ComputeCo 3 LLC to fund construction of the 150MW ELN-04 building at its Polaris Forge 1 campus, repay a bridge loan, and pay expenses. The combination of a large-scale debt capital raise and a credit facility provides substantial funding for the company's data center expansion, but the $1.59B note offering adds significant leverage to the balance sheet.
Key Facts
- Closed a $350M revolving credit facility on May 29, 2026, with a $200M accordion option, arranged by Goldman Sachs.
- Credit facility matures May 29, 2029, bears interest at SOFR + 225 bps or ABR + 125 bps, secured by non-data center project assets.
- Subsidiary APLD ComputeCo 3 LLC intends to offer $1.59B aggregate principal amount of senior secured notes due 2031.
- Net proceeds from the notes will fund construction of 150MW of critical IT load (ELN-04) at Polaris Forge 1, repay a bridge loan, fund debt service reserves, and pay transaction expenses.
- Entered into an MOU with CoreWeave on June 5, 2026, to assign the lease for ELN-04 to a CoreWeave subsidiary if that subsidiary achieves an investment grade credit rating.
- Applied Digital will provide a completion guarantee for the ELN-04 project.
Financial Impact
Up to $550M in revolving credit capacity (including accordion) and $1.59B in proposed senior secured notes, totaling over $2.1B in potential new financing for data center development.
Risk Factors
- The $1.59B note offering adds significant leverage; if the ELN-04 project faces delays or cost overruns, debt service could strain cash flows.
- The CoreWeave lease assignment is contingent on a subsidiary achieving an investment grade credit rating, which is uncertain.
- The offering is subject to market conditions and may not be completed on favorable terms or at all.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-027857 |
| Exhibit: ex99-3.htm | 0001493152-26-027857 |
| Exhibit: ex99-1.htm | 0001493152-26-027857 |
| Document: 0001493152-26-027857-index-headers.html | 0001493152-26-027857 |
| Document: 0001493152-26-027857-index.html | 0001493152-26-027857 |
| Document: 0001493152-26-027857.txt | 0001493152-26-027857 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 27, 2026 9w ago | 8-K | $26.62 $28.85 | ▲ +8.38% | ▲ +5.00% | $25.21 (−5.30%) |
Jun 26, 2026 13w ago | 8-K | $37.77 $27.19 | ▼ −28.01% | ▼ −27.73% | $25.21 (−33.25%) |
Jun 16, 2026 15w ago | 8-K | $45.57 $26.44 | ▼ −41.98% | ▼ −43.30% | $25.21 (−44.68%) |
Jun 12, 2026 16w ago | Institutional Cluster | $42.70 $31.15 | ▼ −27.05% | ▼ −28.83% | $25.21 (−40.96%) |
Jun 11, 2026 16w ago | Institutional Cluster | $41.47 $32.29 | ▼ −22.14% | ▼ −24.03% | $25.21 (−39.21%) |
Jun 9, 2026 16w ago | 8-K | $41.91 $30.71 | ▼ −26.72% | ▼ −28.17% | $25.21 (−39.85%) |
May 5, 2026 21w ago | 8-K | $44.24 $44.71 | ▲ +1.06% | ▼ −1.72% | $25.21 (−43.02%) |
Apr 27, 2026 22w ago | Insider Cluster | $33.67 $45.14 | ▲ +34.07% | ▲ +29.11% | $25.21 (−25.13%) |
Apr 23, 2026 23w ago | 8-K | $36.35 $39.52 | ▲ +8.72% | ▲ +4.09% | $25.21 (−30.65%) |
Apr 23, 2026 23w ago | Press Release | $36.35 $39.52 | ▲ +8.72% | ▲ +4.09% | $25.21 (−30.65%) |
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