Applied Digital Corp. 8-K

What Happened
Applied Digital Corporation (APLD) announced on Dec. 18, 2025 that its subsidiary APLD DevCo LLC entered into a loan arrangement with Macquarie Equipment Capital, Inc. The company drew a committed first tranche of $45 million on the closing date; an additional $55 million second draw is available upon satisfaction (or waiver) of conditions, for an initial $100 million facility. Interest on the loan is 8.0% per annum, with interest paid-in-kind (PIK) and capitalized for the first 12 months, then paid in cash thereafter. The loan matures on the earliest of acceleration, July 18, 2026 if a defined lease milestone isn’t met by April 18, 2026, or Dec. 18, 2027.

Key Details

• Closing date: Dec. 18, 2025. First Draw: $45.0M (funded). Second Draw: $55.0M (available subject to lender conditions).
• Interest: 8.0% per year; PIK (capitalized) for 12 months, then cash interest; post-default additional interest of 1.50% per month applies if an Event of Default occurs.
• Maturity/acceleration: loan accelerates on Change of Control, certain sales/issuances, or other defined events; latest termination of the DevCo Facility is Dec. 18, 2027.
• Security & covenants: Applied Digital parent guarantee plus guarantee & collateral agreement pledge substantially all assets (except excluded assets) and mortgages on certain properties; covenants limit transfers/dispositions and liens on collateral.
• Additional notes: Lender may (but is not required to) provide Additional Loans or Rollover Loans for new projects; those advances are uncommitted and discretionary. Press release filed as Exhibit 99.1.

Why It Matters
This filing shows APLD has secured near-term financing to fund sourcing, planning, construction and equipment purchases for its new data center project(s). For investors, the facility provides capital to advance growth plans but also creates secured obligations and parent-level guarantees that restrict asset transfers and grant the lender broad collateral protections. Important operational and cash-flow points include a 12-month PIK period (delaying cash interest payments), a fixed 8% base rate, and material acceleration and prepayment terms that could require full repayment in specific scenarios. The second draw and any further financing are discretionary, so future funding beyond the first $45M is not guaranteed.