Applied Digital Secures $150 Million Financing with Macquarie for HPC Expansion
Summary
Applied Digital Corporation (Applied Digital), a designer, builder and operator of next-generation digital infrastructure designed for HPC applications, announced that the Company, through its subsidiary, APLD Holdings 2, closed a $150 million senior secured debt financing with Macquarie Equipment Capital, a division of Macquarie Groups Commodities and Global Markets business (Macquarie).APLD Holdings 2 issued a Promissory Note for the full $150 million in gross proceeds on November 27, 2024, and simultaneously repaid its obligations under the Senior Secured Credit Facility with CIM Group, removing encumbrances on assets outside of APLD Holdings 2, as well as the parent guarantee. With extensive access to stranded power and advanced infrastructure technologies like closed-loop liquid cooling, Applied Digital is focused on providing a hyper-efficient platform for the worlds most demanding HPC and AI workloads. This financing improves our cost of capital for the Ellendale project and provides greater flexibility to support other growing areas of our business. The new structure removes the parent guarantee and liens from non-HPC entities, reflecting the value weve created through our previous financings and project execution. We believe this partnership will not only keep our Ellendale buildout on track but may also open the door to future opportunities with Macquarie as we look to scale our projects and expand into even larger endeavors.