Applied Digital Secures $350M Revolver as CoreWeave Lease Move Takes Shape
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Key Takeaways
- Applied Digital secured a $350 million credit facility with a $200 million accordion option.
- The facility matures in May 2029 and is led by Goldman Sachs and a syndicate of five other banks.
- Funds are earmarked for AI and HPC data center development and general corporate purposes.
- A June 5 MOU with CoreWeave allows for a lease assignment at Polaris Forge 1 pending credit rating milestones.
- Interest is set at SOFR plus 225 basis points or ABR plus 125 basis points.
Applied Digital has closed a $350 million revolving credit facility arranged by Goldman Sachs, giving the AI data center developer additional liquidity as it works through a growing pipeline of leased and pre-leased campuses.
The Dallas-based company said Monday that the facility, which closed on May 29, includes an accordion option for another $200 million, potentially lifting total borrowing capacity to $550 million. The proceeds will be used to support pre- and post-lease development of Applied Digital’s data center projects, working capital and general corporate purposes.
The three-year facility matures on May 29, 2029, and bears interest at SOFR plus 225 basis points, or the alternative base rate plus 125 basis points. It is secured by certain non-data center project assets, according to the announcement.
The financing gives Applied Digital a broader corporate-level liquidity tool as the company continues to build out large-scale AI data center campuses under long-term colocation leases. It also follows a separate $300 million senior secured bridge facility the company closed in May to fund the third AI data center at its Polaris Forge 1 campus in Ellendale, North Dakota. That bridge loan, also led by Goldman Sachs, carried a one-year maturity and an interest rate of SOFR plus 275 basis points.
