Applied Digital Corporation announced the closing of a $375 million financing arrangement with Sumitomo Mitsui Banking Corporation (SMBC) through its HPC subsidiary, APLD HPC Holdings LLC. This financing is intended to support the ongoing development of the Ellendale HPC Campus.
A portion of the proceeds from this financing was used to repay Applied Digital's obligations under the November 2024 Macquarie Capital senior secured note. The remaining funds are designated to advance the development of the first and second data center buildings at the Ellendale HPC Campus.
This interim SMBC loan is expected to be replaced with more permanent project financing in the future. The company stated that this permanent project financing is not expected to be dilutive to its common stock, providing a clear funding path for its critical infrastructure projects.
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