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2d ago

Applied Digital Secures $300 Million Goldman-Led Bridge for Third AI Data Center

The short-term, prepayable loan underscores a bridge-to-permanent financing plan backed by long-term hyperscaler leases.

Applied digital lines up $300m bridge loan to accelerate ai data center build

Overview

  • A $300 million bridge loan announced Monday between Applied Digital and Goldman Sachs will fund continued construction of the 150 MW Building 3 at the Polaris Forge 1 campus in Ellendale, North Dakota.
  • The 364-day term loan charges interest at the Secured Overnight Financing Rate plus 2.75 percentage points, is secured by the project assets, and allows prepayment without a fee.
  • Executives said they expect to seek more funding to finish the build and are evaluating a matching $300 million revolving credit line for development needs and working capital.
  • The new bridge layers onto March’s $2.15 billion senior secured notes tied to a 200 MW Oracle lease and follows an April 15-year deal worth about $7.5 billion with an unnamed investment-grade hyperscaler.
  • The structure lets the company start work quickly with short-dated debt and then refinance into longer-term loans that match the length and cash flows of its hyperscaler leases.