Applied Digital Corporation Secures $5 Billion Preferred Equity Financing Facility for HPC Business
Dallas, Jan. 14, 2025 (GLOBE NEWSWIRE) – Applied Digital Corporation (Nasdaq: APLD) has partnered with investment vehicles managed by MAM to secure a $5.0 billion perpetual preferred equity financing facility. This investment will support the development of next-generation digital infrastructure for HPC applications through APLD HPC Holdings LLC.
The agreement includes issuing equity units for MAM’s investment to support the build-out of the 400 MW Ellendale HPC Campus. The funding will also be used to repay existing debts, recover equity investments, and cover operational expenses.
“We see this partnership with MAM as a strategic move to accelerate Applied Digital’s growth and establish a strong presence in the HPC data center industry,” said Wes Cummins, Chairman, and CEO of Applied Digital.
The financing terms include a dividend rate of 12.75% per annum on the preferred equity, with an option for cash or in-kind payment. MAM will have the right of first refusal for additional funding for future projects, enhancing Applied Digital’s position as a leading HPC data center developer.
As the demand for AI innovation grows, Applied Digital is poised to deliver cutting-edge data center solutions tailored for complex AI and HPC workloads. The company’s purpose-built facilities and cost-effective GPU cloud services aim to empower clients to excel in AI, machine learning, and other high-performance computing applications.
For more information about Applied Digital Corporation and Macquarie Asset Management, please visit their respective websites.
Forward-Looking Statements:
This press release contains forward-looking statements regarding future performance, financial outlook, and product development. These statements are subject to uncertainties and risks, and actual results may vary. Investors and stakeholders are advised to exercise caution when relying on these statements.
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