Applied Digital secures $375M financing for Ellendale HPC campus

By Bobby Samwell • Wednesday, February 12 10:19 • Permanent Link

Applied Digital Corporation (NASDAQ: APLD) has successfully closed a significant financing deal with Sumitomo Mitsui Banking Corporation (SMBC), totaling an impressive $375 million. This funding is specifically aimed at supporting the Ellendale High-Performance Computing (HPC) data center campus.

The company used a portion of the proceeds to repay its obligations under the Macquarie Capital senior secured note. The remaining funds from this substantial financing are intended to be utilized for the advancement of the first and second data center buildings at the Ellendale HPC campus.

This financing marks a pivotal moment for Applied Digital Corporation as it not only signifies a strong partnership with SMBC but also demonstrates the confidence and validation of the Ellendale HPC campus. The company's Chief Financial Officer, Saidal Mohmand, expressed excitement about the partnership and the opportunities it presents for advancing their HPC data center platform.

The financing also aligns with the company's strategic plans, as it aims to bridge the gap to more permanent project financing once a hyperscaler lease is signed for the Ellendale HPC campus. Importantly, the company anticipates that the permanent project financing will not be dilutive to its common stock.

It's worth noting that Northland Capital Markets acted as the capital markets advisor to the company, while Milbank LLP and Lowenstein Sandler LLP provided legal counsel to Applied Digital. Paul Hastings LLP acted as legal counsel to SMBC during this landmark transaction.

Applied Digital Corporation, known for developing, building, and operating next-generation data centers and cloud infrastructure, now looks forward to leveraging this substantial financing to further its mission of delivering secure, scalable, and sustainable digital hosting solutions.

Sumitomo Mitsui Banking Corporation (SMBC), a top-tier global financial group with a 400-year history, has demonstrated its commitment to supporting significant projects by leading this landmark financing deal. With a diverse range of financial services and a global presence, SMBC's involvement further solidifies the significance of this financing for Applied Digital Corporation and the Ellendale HPC campus. Today the company's shares have moved -2.4% to a price of $7.41. For the full picture, make sure to review Applied Digital's 8-K report.

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