Applied Digital Corporation announced its intention to offer $300 million in aggregate principal amount of convertible senior notes due 2030 through a private offering. The company also expects to grant initial purchasers an option to acquire an additional $45 million in notes.
The net proceeds from this offering are intended to fund the cost of entering into capped call transactions and to repurchase shares of common stock, up to one-third of the final aggregate principal amount of the Convertible Notes. The remaining proceeds will be allocated for general corporate purposes.
These Convertible Notes will be senior unsecured obligations of the company, accruing interest payable semi-annually on June 1 and December 1, with a maturity date of June 1, 2030. The specific initial conversion rate, interest rate, and other terms are to be determined during negotiations with the initial purchasers.
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