What happens to a development loan if the hyperscaler lease is not signed in time?
Macquarie lent Applied Digital money to buy land and start building before any lease was signed. The loans run for about two years, but fall due within months if the lease is not signed by a set date. The $100m note matures in December 2027, or in July 2026 if the lease is not signed by 18 April 2026. The project is defined by reference to an exclusivity agreement with a US investment grade hyperscaler. The earlier $50m note needed a 200 MW lease with a tenant rated at least BBB-, not an Applied Digital affiliate, by 31 October 2025.
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What the filed contracts say
Contract
What the filed wording says
Macquarie $100m development note
The $100m note matures on 18 December 2027, but falls due on 18 July 2026 if the lease is not signed by 18 April 2026.
Macquarie $100m development note
The project is a hyperscale campus for a US investment grade hyperscaler that signed an exclusivity agreement with Applied Digital on 3 October 2025.
Macquarie $50m development note
The $50m note fell due on 1 February 2026 unless a 200 MW lease was signed by 31 October 2025; otherwise it ran to 9 September 2027.
Macquarie $50m development note
The lease had to be with a tenant rated at least BBB- that is not an Applied Digital affiliate.
The filed wording
(b) Maturity Date. All principal and accrued interest on the unpaid principal of this Note will be due and payable in immediately available funds upon the earliest of (i) the date of acceleration of the Loan hereunder, (ii) July 18, 2026, to the extent the Initial Lease Execution has not occurred on or before April 18, 2026, or (iii) December 18, 2027 (the “Maturity Date”).
Macquarie development loan to Applied Digital (APLD DevCo), $100m, for a hyperscale campus before the lease, section 2(b) · Applied Digital 8-K, Exhibit 10.1
Each extract is quoted from the contract as filed with the SEC, checked against the filed text when it was added; “…” marks words left out. Filers redact commercial terms, so a [***] or [*] is the filer's, not ours. The summaries describe the wording, not how a court would read it, and each contract's defined terms and other clauses can change the effect. General information drawn from public filings. It is not legal advice on any transaction, and using this page does not create a lawyer-client relationship. Views are personal.
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