Applied Digital secures $50M loan at 9% for AI cloud datacenter buildout

Applied Digital Corp.

Loan principal: $50M with $36.5M advanced at closing; $13.5M discretionary. Maturity: 2 years.
Interest rate: 9.0% per annum; proceeds to fund AI Cloud platform and datacenter expansion.
Company subsidiary SAI Computing LLC is borrower; Applied Digital guarantees obligations.
Lenders are B. Riley Commercial Capital and B. Riley Securities; loan is secured by borrower assets.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Applied Digital Corp. entered into Loan and Security Agreement with B. Riley Commercial Capital, LLC and B. Riley Securities, Inc. valued at $50,000,000 (effective 2023-05-23).

Action: entry
Agreement: credit facility
Counterparty: B. Riley Commercial Capital, LLC and B. Riley Securities, Inc.
Value: $50,000,000
Effective: 2023-05-23

Exact text from the filing

On May 23, 2023, SAI Computing LLC (the “Borrower”), a wholly-owned subsidiary of Applied Digital Corporation (the “Company”), entered into a Loan and Security Agreement with B. Riley Commercial Capital, LLC and B. Riley Securities, Inc. ( the “Lenders”), B. Riley Commercial Capital, LLC, as Collateral Agent, and the Company as Guarantor (the “Loan and Security Agreement”).

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Applied Digital Corp. filing history →

Source: SEC EDGAR

accession 0001144879-23-000152

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