Applied Digital stock price drops due to $2.15 billion bond issuance plan

LootboxPhobia · 2026-03-03T17:25:00+00:00

Applied Digital Corporation stock price drops 6.6% as it announces plans to issue $2.15 billion in bonds through its subsidiary, with funds to be used for building an AI factory project in North Dakota. The issuance depends on market conditions and cannot be guaranteed to be completed.

LootboxPhobia

2026-03-03 17:25:00

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Investing.com – Applied Digital Corporation (NASDAQ:APLD) stock fell 6.6% on Tuesday after the company announced plans to raise $2.15 billion through a bond issuance by its subsidiary.

Applied Digital stated that its subsidiary APLD ComputeCo 2 LLC plans to issue $2.15 billion of 2031 maturity senior secured notes to qualified institutional buyers through a private placement. The issuance is subject to market conditions and no guarantee is made that it will be completed or when.

The company intends to use the proceeds from this issuance to fund the development and construction of a 200-megawatt critical IT load at the Polaris Forge 2 AI factory campus in Hatton, North Dakota. The funds will also be used for project accounts, including debt service reserve accounts, and to pay related fees and expenses.

These notes will be guaranteed by the future and existing direct and indirect subsidiaries of APLD Compute 2, including APLD FAR-01 HoldCo LLC, APLD FAR-02 HoldCo LLC, and related entities. The notes and guarantees will be secured by a first priority lien on almost all assets of APLD Compute 2 and its guarantors, as well as all equity interests in APLD Compute 2 held by its parent company, APLD FAR Holdings LLC.

Applied Digital will provide completion guarantees for the Polaris Forge 2 project, under which the company will provide funding to APLD Compute 2 as needed to ensure the project is completed on time. The company primarily designs, builds, and operates data centers and hosting services for AI, networking, and blockchain workloads.

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