Applied Digital secures $20M loan for Ellendale data center expansion; creates Series E Preferred Stock

Applied Digital Corp.

$20M term loan from Starion Bank at 7.48% fixed, matures Feb 3, 2028, secured by Ellendale Facility.
Loan proceeds to fund expansion of next-generation data center near Ellendale, North Dakota.
Created 5M shares of Series E Preferred Stock with 8% annual dividend, $25 stated value, and optional redemption features.
Preferred stock dividends payable in cash or common stock, subject to 18.8M share cap without shareholder approval.
Company guaranteed the loan via unlimited corporate guaranty; loan also secured by assignment of hosting agreements.

Key facts

Extracted from this filing and checked against the source text.

Governance Changes SEC 8-K Item 5.03/5.05/5.06 confidence 0.9

Applied Digital Corp.: Filed Certificate of Designation for Series E Preferred Stock, establishing its rights, privileges, preferences, and restrictions (effective 2023-02-14).

Change: charter amendment
Effective: 2023-02-14

Exact text from the filing

On February 14, 2023, the Company filed a Certificate of Designation of Rights, Privileges, Preferences, and Restrictions of Series E Preferred Stock (the “Certificate of Designation”) with the Secretary of State of the State of Nevada to establish the rights, privileges, preferences, and restricts of the Series E Preferred Stock. The Certificate of Designation became effective upon filing on February 14, 2023.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Applied Digital Corp. entered into Loan Agreement with Starion Bank valued at $20,000,000 (effective 2023-02-16).

Action: entry
Agreement: credit facility
Counterparty: Starion Bank
Value: $20,000,000
Effective: 2023-02-16

Exact text from the filing

On February 16, 2023, APLD ELN-01 LLC (the “Borrower”), a wholly-owned subsidiary of Applied Digital Corporation (the “Company”), entered into a Loan Agreement with Starion Bank (“Lender”) and the Company as Guarantor (the “Loan Agreement”).

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13 governance changes filed in the last 30 days. Browse all governance changes →

Applied Digital Corp. filing history →

Source: SEC EDGAR

accession 0001144879-23-000074

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