Lowenstein Sandler represented Applied Digital (Nasdaq: APLD), a leading designer, builder and operator of high-performance, sustainably engineered data centers and colocation services for artificial intelligence (“AI”), cloud, networking, and blockchain workloads, in the pricing by its subsidiary APLD ComputeCo LLC of a $2.35 billion private offering of 9.25 percent senior secured notes due 2030 at an issue price of 97 percent.
APLD Compute intends to use the net proceeds from the offering to fund a portion of the construction and associated expenses of its 100 megawatt and 150 MW data centers, ELN-02 and ELN-03 at Applied Digital’s 400 MW Ellendale, North Dakota data center campus, repay the aggregate principal balance plus any accrued and unpaid interest under the Credit and Guaranty Agreement dated February 11, 2025, fund debt service reserves, and pay transaction expenses.
The Lowenstein deal team included Steven E. Siesser, Lowell A. Citron, Daniel L. Forman, Michael Walutes, Brooke A. Gillar, Daniel A. Suckerman, Kevin Colan, Marianna Shelenkova, Melissa K. Parres, Elena Scialabba, Perry Laub, Dana Quinn, Zachary Benaharon, Billy Fausto Michaca, Bonnie E. Schipper, Anna L. D’Eramo, Victoria Jin, and Sarah McGinley.
Lowenstein has represented Applied Digital in numerous transactions over the past two years, including:
- the closing of a $7 billion AI infrastructure agreement with CoreWeave (NASDAQ:CRWV)
- a $150 million convertible preferred equity facility to advance development of Ellendale HPC Campus
- the closing of a $375 million financing with SMBC to support Ellendale HPC Campus
- an agreement to enter into a $5 billion perpetual preferred equity financing facility
- a $160 million strategic financing from a group of institutional and accredited investors, NVIDIA, and Related Companies
- the issuance of $53.2 million convertible preferred stock for net proceeds of $50 million
- a committed equity facility of up to $250 million with YA II PN, LTD., a fund managed by Yorkville Advisors Global, LP
- a private debt facility with CIM Group of up to $200 million to accelerate the North Dakota data center project
- the $97.3 million sale of a 200-megawatt Bitcoin mining data center
