secwatch.observer — SEC 8-K summary
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Issuer:     Applied Digital Corp. (APLD)
CIK:        0001144879
Form:       8-K
Filed at:   2023-02-21T23:59:59+00:00
Accession:  0001144879-23-000074
Event type: debt
Sentiment:  neutral
Materiality: 0.60
Item codes: 1.01, 5.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1144879/000114487923000074/0001144879-23-000074-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1144879/000114487923000074/apld-20230214.htm
  HTML page:      https://secwatch.observer/filing/0001144879-23-000074

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