08:51 AM EST, 12/02/2024 (MT Newswires) -- Applied Digital ( APLD ) said Monday that through its APLD Holdings 2 subsidiary it has closed a $150 million senior secured debt financing with Macquarie Equipment Capital to reduce financing costs for the Ellendale High-Performance Computing data center project.

The company said that APLD issued a $150 million promissory note to repay its previous credit facility with CIM Group, eliminating encumbrances on assets outside the HPC project and removing a parent guarantee.

The 18-month note carries a 0.25% annual interest rate with no commitment fees or original issue discounts and includes warrants for 1,035,197 Applied Digital ( APLD ) shares at $9.66 per share, the company said.

The remaining net proceeds will be used to repay other outstanding debt and cover transaction-related expenses, Applied Digital ( APLD ) added.

Shares of the company were up 1.3% in recent Monday premarket activity.