Macquarie Asset Management has announced a significant partnership with Applied Digital Corporation to provide up to $5 billion in funding for the company's high-performance computing (HPC) initiatives. The agreement includes an initial investment of up to $900 million for the development of Applied Digital's Ellendale HPC data center campus, with an option for Macquarie Asset Management to invest an additional $4.1 billion in future projects.
The collaboration will see Applied Digital issue perpetual preferred equity units and common equity units, with Macquarie investing $2.25 million per megawatt of capacity leased, supporting the full 400 MW build-out of the Ellendale HPC Campus.
Investment proceeds from Macquarie are intended to complete the construction of the Ellendale campus, repay existing debt, recover part of Applied Digital's equity investment, fund general and administrative expenses, and cover transaction costs. Anton Moldan from Macquarie expressed enthusiasm about the partnership: “We are excited to partner with Applied Digital to build and scale its HPC data center platform.”
Wes Cummins, Chairman and CEO of Applied Digital, stated that this relationship positions the company for growth: "We believe this expanded relationship with MAM positions Applied Digital for significant growth in the industry."
The financing facility includes a dividend on preferred equity at a rate of 12.75% per annum. Conditions for closing include executing a lease acceptable to Macquarie for part of the Ellendale site under construction.
Northland Capital Markets served as placement agent, while Goldman Sachs & Co., Citizens JMP Securities, LLC, TD Securities, Needham & Company provided financial advice. Legal counsel was provided by Lowenstein Sandler LLP and Simpson Thacher & Bartlett LLP.
This announcement does not constitute an offer or solicitation related to securities sales under U.S. law.