Overview
- Applied Digital, which closed the $300 million bridge Monday, will use the funds to keep building its third AI data center at the Polaris Forge 1 campus in Ellendale, North Dakota.
- The loan is a 364-day term facility at a floating rate tied to the Secured Overnight Financing Rate plus 2.75 percentage points, and it can be repaid early without a fee.
- The financing is secured by the project’s assets, which gives lenders collateral and lets the company refinance into longer-term debt when it is ready.
- The company says it will seek more funding to complete construction, and management has discussed a possible $300 million revolving credit line to cover development and working capital needs.
- Industry reports place the bridge on top of $2.15 billion in notes backed by an Oracle lease and a recent 15-year, $7.5 billion hyperscaler lease, a stack that adds near-term refinancing risk but aims to match debt to long customer contracts.