The Daily Dig
Applied Digital has priced a $1.59 billion senior secured notes offering to fund construction and associated expenses for the fourth building at Polaris Forge 1, its AI Factory campus in Ellendale, North Dakota. The notes are issued through subsidiary APLD ComputeCo 3 LLC, carry a 7.000% interest rate, mature in 2031, and are priced at par. The offering closed on June 16, 2026.
Proceeds will cover four things: funding 150 megawatts of critical IT load in the fourth building, designated ELN-04; repaying a Goldman Sachs bridge loan; funding debt service reserves; and covering transaction expenses.
Applied Digital is also providing what the company describes as a customary completion guarantee on ELN-04, committing to fund APLD ComputeCo 3 as necessary to ensure timely completion of the project.
Snapshot:
Project Name: ELN-04 (Fourth Building, Polaris Forge 1)
Campus: Polaris Forge 1 AI Factory
Developer/Company: Applied Digital Corporation (NASDAQ: APLD)
Issuing Entity: APLD ComputeCo 3 LLC
Guarantors: APLD ELN-04 HoldCo LLC, APLD ELN-04 LLC, APLD ELN-04 LandCo LLC
Location: Ellendale, North Dakota
Sector: Data Center / AI Infrastructure
Capacity: 150 megawatts (critical IT load)
Financing: $1.59 billion, 7.000% Senior Secured Notes due 2031, priced at par
Offering Type: Private offering under Rule 144A and Regulation S
Security: First-priority liens on substantially all assets of APLD ComputeCo 3 and guarantors
Bridge Lender (To Be Repaid): Goldman Sachs Bank USA
Completion Guarantee: Customary, provided by Applied Digital Corporation
Date closed: On June 16, 2026
HQ: Dallas, Texas
Founded: 2021
TheJobWalk Thoughts
A $1.59 billion notes offering on a single building tells you something about where AI infrastructure investment is heading. For mechanical, electrical, and specialty contractors in the Ellendale region, this is the financing event that precedes real construction activity. When capital of this size closes and deploys, subcontractor packages on a project like this tend to be large, move quickly, and reward contractors who are already in the market.
The completion guarantee is described in the release as customary, but at $1.59 billion it is anything but routine. Applied Digital has put its corporate balance sheet behind timely delivery of ELN-04. That gives noteholders added protection and tells the broader market this project has a hard commitment behind it, not just a financing structure.
ELN-04 adds 150 megawatts of critical IT load to a campus that already has three buildings behind it. That kind of phased expansion means established relationships with the GC, subcontractors, and suppliers already on campus carry real value. If you are not in that network yet, now is the time to change that.
