Applied Digital announced the pricing of $375 million 2.75% Convertible Senior Notes due 2030, with an option for purchasers to buy an additional $75 million. The notes will be convertible into cash, common stock, or a combination at an initial conversion price of $9.75 per share, representing a 32.5% premium. The offering is expected to close on November 4, 2024.The company estimates net proceeds of $361.8 million (or $434.5 million if the additional option is exercised). The proceeds will be used to fund $84 million in share repurchases, including $52.7 million for prepaid forward repurchases and $31.3 million for concurrent share buybacks. Additionally, $43.1 million will fund capped call transactions with a cap price of $14.72 per share, representing a 100% premium.The notes will accrue interest semi-annually and mature on June 1, 2030. The company may redeem the notes after December 1, 2027, if the stock price reaches 130% of conversion price for a specified period. The transaction includes capped call transactions to reduce potential dilution and offset cash payments upon conversion.

Applied Digital announced the pricing of $375 million 2.75% Convertible Senior Notes due 2030, with an option for purchasers to buy an additional $75 million. The notes will be convertible into cash, common stock, or a combination at an initial conversion price of $9.75 per share, representing a 32.5% premium. The offering is expected to close on November 4, 2024.The company estimates net proceeds of $361.8 million (or $434.5 million if the additional option is exercised). The proceeds will be used to fund $84 million in share repurchases, including $52.7 million for prepaid forward repurchases and $31.3 million for concurrent share buybacks. Additionally, $43.1 million will fund capped call transactions with a cap price of $14.72 per share, representing a 100% premium.The notes will accrue interest semi-annually and mature on June 1, 2030. The company may redeem the notes after December 1, 2027, if the stock price reaches 130% of conversion price for a specified period. The transaction includes capped call transactions to reduce potential dilution and offset cash payments upon conversion.