Summary by Futu AI
Applied Digital has successfully completed its private offering of 2.75% Convertible Senior Notes due 2030, raising $450 million, including $75 million from the initial purchasers' fully exercised option. The notes were issued at 100% of principal amount, generating net proceeds of approximately $434.5 million after deducting costs and commissions.The company plans to allocate $84 million for share repurchases, including $52.7 million for prepaid forward repurchase and $31.3 million for direct stock buybacks. Additionally, $51.8 million will fund capped call transactions with a cap price of $14.72, representing a 100% premium over the last trading price. The remaining proceeds will be used for general corporate purposes.The notes, convertible into cash, shares, or a combination thereof, have an initial conversion rate of 102.5431 shares per $1,000 principal amount, equivalent to approximately $9.75 per share. Interest will be paid semiannually at 2.75%, with maturity set for June 1, 2030. The company may redeem the notes after December 1, 2027, subject to certain conditions.
