Summary by Moomoo AI
Applied Digital completed a $450 million offering of 2.75% Convertible Senior Notes due 2030, including $75 million from the initial purchasers' option. The notes were sold to qualified institutional buyers under Rule 144A. Net proceeds totaled approximately $434.5 million after deducting fees and expenses.The company plans to use about $84 million for share repurchases, including $52.7 million for a prepaid forward repurchase and $31.3 million for direct repurchases. Additionally, $51.8 million will fund capped call transactions with a cap price of $14.72, representing a 100% premium over the last reported share price. The remaining proceeds are earmarked for general corporate purposes.Applied Digital designs and operates digital infrastructure for high-performance computing applications. The offering aims to strengthen the company's financial position and support its growth initiatives in AI, blockchain, and HPC sectors. However, investors are cautioned about forward-looking statements due to potential risks and uncertainties in the volatile crypto asset industry.
