Applied Digital Corporation announced the completion of its previously announced offering of $450 million in 2.75% Convertible Senior Notes due 2030. This amount includes the full exercise of the initial purchasers' option for an additional $75 million in notes, which occurred on October 31, 2024.
The net proceeds from the sale of the Convertible Notes amounted to approximately $434.5 million, after accounting for initial purchasers' discounts, commissions, and estimated offering expenses. These funds are earmarked for several strategic uses.
Approximately $84 million of the net proceeds were used to fund share repurchases of the company's common stock, including $52.7 million for a prepaid forward repurchase and $31.3 million for direct share repurchases. An additional $51.8 million was allocated to pay the cost of capped call transactions, with the remaining funds designated for general corporate purposes.
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