Use of proceeds from notes offering
Company: Applied Digital - Project: Polaris Forge 1
The claim, verbatim
Net proceeds will fund construction and expenses of 100 MW ELN-02 and 150 MW ELN-03 data centers at Polaris Forge 1, repay Credit and Guaranty Agreement debt dated February 11, 2025, fund debt service reserves, and pay transaction expenses
Source (primary)
applied-digital 8-K exhibit (ex99-1.htm) (SEC EDGAR (8-K Ex), press_release)
View cached copy (2026-09-26)Live source ↗
Quote: “intends to use the net proceeds from the Offering to fund a portion of the construction and associated expenses of its 100 megawatt ("MW") and 150 MW data centers, ELN-02 and ELN-03 (the "Facilities"), at Applied Digital's 400 MW Ellendale, North Dakota data center campus ("Polaris Forge 1"), repay the aggregate principal balance plus any accrued and unpaid interest under the Credit and Guaranty Agreement, dated as of February 11, 2025, by and among APLD HPC Holdings LLC (a subsidiary of Applied Digital), the subsidiary guarantors thereunder, the lenders party thereto and Sumitomo Mitsui Banking Corporation, as administrative agent, fund debt service reserves, and pay transaction expenses”
How we checked this
Checked on September 28, 2026. The cited source supports part of this claim, but not all of it.
The release lists all four uses of proceeds. However, it says the proceeds would cover only a portion of the construction costs, and the claim leaves out that limit.
Confirmed in the source:
- Net proceeds are intended to fund construction and associated expenses of the 100 MW ELN-02 and 150 MW ELN-03 data centers at Polaris Forge 1
- Net proceeds are intended to repay the principal and accrued interest under the Credit and Guaranty Agreement dated February 11, 2025
- Net proceeds are intended to fund debt service reserves
- Net proceeds are intended to pay transaction expenses
We could not confirm this from the cited source:
- That the notes proceeds would fund the ELN-02 and ELN-03 construction costs in full; the release says the proceeds would fund only a portion of those costs
That does not mean it is false — only that this source does not establish it, as of the date above. If we find a source that settles it, we will re-check and update this page.
What we did: Read our cached copy of SEC EDGAR (8-K Ex) (https://www.sec.gov/Archives/edgar/data/1144879/000149315225022506/ex99-1.htm) in full (8,456 characters, retrieved September 26, 2026) and checked each assertion in the claim against it.
Additional evidence
confirms applied-digital 8-K exhibit (ex99-1.htm)
Quote: “intends to use the net proceeds from the Offering to fund a portion of the construction and associated expenses of its 100 megawatt ("MW") and 150 MW data centers, ELN-02 and ELN-03 (the "Facilities"), at Applied Digital's 400 MW Ellendale, North Dakota data center campus ("Polaris Forge 1"), repay the aggregate principal balance plus any accrued and unpaid interest under the Credit and Guaranty Agreement, dated as of February 11, 2025, by and among APLD HPC Holdings LLC (a subsidiary of Applied Digital), the subsidiary guarantors thereunder, the lenders party thereto and Sumitomo Mitsui Banking Corporation, as administrative agent, fund debt service reserves, and pay transaction expenses”