Lowenstein Sandler represented long-term client Applied Digital Corporation (Nasdaq: APLD), a designer, builder, and operator of next-generation digital infrastructure for HPC applications, in an agreement to enter into a $5 billion perpetual preferred equity financing facility, with investment vehicles of funds managed by Macquarie Asset Management (MAM), a global asset manager, for its HPC business conducted through APLD HPC Holdings LLC (APLDH), a subsidiary of Applied Digital.
Under the terms of the unit purchase agreement executed by the parties, APLDH will issue perpetual preferred equity units and common equity units for an initial investment by MAM of $225 million to support the full 400 MW build-out of of Applied’s Ellendale HPC Campus. This initial investment may be increased up to $900 million as additional leases are signed for the Ellendale HPC Campus.
MAM also has a right to invest in all of Applied’ s future HPC data center projects, up to an additional $4.1 billion, for 30 months following close.
In the past twelve months, Lowenstein has represented Applied Digital in the following transactions:
- $160 million strategic financing from a group of institutional and accredited investors, NVIDIA, and Related Companies
- Issuance of $53.2 million convertible preferred stock for net proceeds of $50 million in a private financing arrangement with a single investor to advance HPC data center project
- Committed equity facility of up to $250 million with YA II PN, LTD., a fund managed by Yorkville Advisors Global, LP
- Private debt facility with CIM Group of up to $200 million to accelerate North Dakota data center project
- $97.3 million sale of 200-megawatt Bitcoin mining data center
- $50 million convertible note financing with a single investor
- $125 million at-the-market offering of common stock
- Private offering of convertible notes in the aggregate principal amount of $450 million.
The Lowenstein team included Steven E. Siesser, Brooke A. Gillar, Lesley P. Adamo, Matthew F. Cammarata, Lowell A. Citron, Darren Goodman, Daniel A. Suckerman, Michael Walutes, Deangeor Chin, Marianna Shelenkova, Emily Jewell, Donna Calia, Dana Quinn, and Bonnie E. Schipper.
About Lowenstein Sandler LLP
Lowenstein Sandler is a national law firm with over 350 lawyers based in New York, Palo Alto, New Jersey, Utah, and Washington, D.C. The firm represents leaders in virtually every sector of the global economy, with particular emphasis on investment funds, life sciences, and technology. Recognized for its entrepreneurial spirit and high standard of client service, the firm is committed to the interests of its clients, colleagues, and communities.
