Applied Digital Secures $300 Million Bridge Loan for North Dakota AI Data Center
AI-generated image: synthetic visual, not an actual depiction of events, people, or locations.
Key Takeaways
- $300 million senior secured bridge facility led by Goldman Sachs.
- Funds construction of the third AI data center at the Polaris Forge 1 campus in Ellendale, North Dakota.
- Loan features a 364-day maturity at SOFR plus 275 basis points.
- Facility is prepayable without premium and secured by project assets.
Applied Digital Corporation announced the closing of a $300 million senior secured bridge facility led by Goldman Sachs. The financing is designated for the continued development and construction of the company's third AI data center at the Polaris Forge 1 campus located in Ellendale, North Dakota.
The bridge facility is structured as a $300 million term loan with a 364-day maturity. It carries an interest rate of the Secured Overnight Financing Rate (SOFR) plus 275 basis points. The loan is secured by the assets of the project and is prepayable at any time without premium.
Applied Digital CFO Saidal Mohmand stated that the financing supports the company's disciplined approach to funding projects in line with construction timelines. The company expects to seek additional financing to complete the construction while maintaining the flexibility to transition to long-term financing.
