Applied Digital Corporation's stock is experiencing an uptick today following the announcement of a significant refinancing deal. The company has secured $150 million in senior secured debt financing from Macquarie Equipment Capital, which is expected to lower the overall cost of capital for its Ellendale High Performance Computing (HPC) data center project. This new financing arrangement eliminates the parent guarantee and cross-collateralization of other assets, providing Applied Digital with increased flexibility for future corporate and project-level debt financings. The favorable terms of the deal, including a low interest rate of 0.25% per annum, are seen as a positive development for the company's financial structure and future growth prospects.
The current price of Applied Digital Corporation's stock is $10.38, reflecting a 2.77% increase from its previous close of $10.10.