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Applied Digital Corporation Announces Proposed Private Offering of $300 Million of Convertible Notes
DALLAS, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator
About this update from Applied Digital Corporation
[{"type":"text","content":"DALLAS, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) (\"Applied Digital\" or the \"Company\"), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (HPC) applications, today announced that it intends to offer, subject to market conditions and other factors, $300 million aggregate principal amount of convertible senior notes due 2030 (the “Convertible Notes”) in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company also expects to grant the initial purchasers of the Convertible Notes an option to purchase, for settlement within a 13-day period beginning on, and including the date on which the Convertible Notes are first issued, up to an additional $45 million aggregate principal amount of the Convertible Notes. The offering is subject to market and other conditions, and there can be no assurance as to whether, when or on what terms the offering may be completed. The Company intends to use a portion of the net proceeds from the offering to fund the cost of entering into the capped call transactions (as described below). The Company expects to repurchase shares of common stock (the “common stock”) in an amount up to one third of the final aggregate principal amount of the Convertible Notes, through (i) privately negotiated transactions effected concurrently with the pricing of the Convertible Notes (where the Company expects the purchase price per share of the common stock repurchased in such transactions to be equal to the closing price per share of the common stock on the date the offering of the Convertible Notes is priced) and (ii) the prepaid forward described below. The Company expects to use the remainder of the net proceeds from the offering for general corporate purposes. If the initial purchasers exercise their option to purchase additional notes, then the Company intends to use a portion of the additional net proceeds to fund the cost of entering into additional capped call transactions. The Convertible Notes will be senior unsecured obligations of the Company and will accrue interest at a rate payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2025....