As Necessary to Ensure the Timely Completion: Applied Digital's Release on the Pricing of Senior Secured Notes to Fund the Fourth Building at Polaris Forge 1

Applied Digital, which describes itself as a designer, builder and operator of data centers and colocation services for AI, networking and blockchain workloads, announced on June 9, 2026, in a release, that a subsidiary had priced $1.59 billion of 7.000% senior secured notes due 2031, at par. The notes are to be sold in a private offering that, the release says, "is expected to close on or around June 16, 2026, subject to market and other conditions." Parts of the release follow, not the whole.

The Anticipated Use of Proceeds

The subsidiary intends to use the net proceeds to fund the construction and associated expenses of 150 megawatts of critical IT load at the fourth building, called ELN-04, at Polaris Forge 1. The release calls that campus Applied Digital's "AI Factory campus at Ellendale, North Dakota." The other uses in the same sentence are to repay "the aggregate principal balance plus any accrued interest" under a credit and guaranty agreement with a bank, as administrative agent and as collateral agent, and the lenders party to it, "which was provided as a bridge loan facility," to fund debt service reserves, and to pay transaction expenses.

The release does not say how large the bridge is, or how the net proceeds divide among those uses. It counts "the anticipated use of proceeds from the Offering" among its forward-looking statements.

With no split among the uses, a reader cannot tell how much of the money goes into the building and how much repays the bridge.

Guarantees, Liens and Conditions

The notes "will be fully and unconditionally guaranteed" by the subsidiary's future and existing direct and indirect subsidiaries. The notes and those guarantees "will be secured by first-priority liens" on substantially all assets of the subsidiary and the guarantors, "other than certain excluded property," and on all the equity interests in the subsidiary held by its direct parent company.

Applied Digital "will provide a customary completion guarantee with respect to the ELN-04 project," the release says, under which it will fund the subsidiary "as necessary to ensure the timely completion of the ELN-04 project."

The guarantee leaves the money needed to finish ELN-04 on time with Applied Digital, and the release states no limit on the guarantee.

The release also says that "Completion of the Offering is subject to certain conditions, and there can be no assurance as to whether or when the Offering may be completed." How large is the bridge the net proceeds are meant to repay?