Lowenstein Represents Applied Digital Corporation in Closing of $450 Million of Convertible Notes Offering

Lowenstein Sandler represented Applied Digital Corporation (Nasdaq: APLD), a designer, builder, and operator of next-generation digital infrastructure designed for high performance computing applications, in the closing of its previously announced private offering of convertible notes in the aggregate principal amount of $450 million, which includes $75 million aggregate principal amount of notes issued pursuant to an option to purchase additional notes granted to the initial purchasers (which the initial purchasers exercised in full on October 31, 2024).

In conjunction with the issuance of the convertible notes, the company entered into capped call transactions with a cap price of $14.72 (representing a premium of 100 percent over the last reported sale price) and, pursuant to related share repurchases and prepaid forward repurchase transaction, repurchased approximately $84 million of the company's common stock.

Applied Digital builds and operates next-generation data centers and cloud infrastructure. Different by design, the company's purpose-built facilities are engineered to unleash the power of accelerated compute and deliver secure, scalable and sustainable digital hosting, along with turnkey CSaaS and GPU-as-a-Service solutions. Backed by deep hyperscale expertise and a robust pipeline of available power, Applied Digital accommodates AI factories and beyond to support the world's most exacting AI/ML, blockchain and high-performance computing (HPC) workloads.

This year, Lowenstein has represented Applied Digital in the following transactions:

• $160 million strategic financing,
• Issuance of $53.2 million convertible preferred stock to advance HPC data center project
• Committed equity facility of up to $250 million
• Private debt facility of up to $200 million to accelerate North Dakota data center project
• $97.3 million sale of 200-megawatt Bitcoin mining data center
  
  

The Lowenstein deal team included Steven E. Siesser, Brooke A. Gillar, Christopher M. Cozzens, Bonnie E. Schipper, Anna L. D' Eramo, James O'Grady, Ian S. Ludd, Lowell A. Citron, Deangeor Chin, Michael Walutes, and Richard Bernstein.