If the first project stalls, can the development loan move to another site?
The $100m note has a $45m first draw and a $55m second draw that Macquarie funds at its sole discretion. Applied Digital may ask to roll the loan into, or add loans for, other data centre projects, but the facility is uncommitted and each rollover needs Macquarie’s approval. The conditions read like a site diligence list: a letter of intent, site diligence reports, a Phase I environmental assessment and a land purchase agreement or option. Each new project company becomes a guarantor.
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What the filed contracts say
Contract
What the filed wording says
Macquarie $100m development note
The second draw is at the lender’s sole discretion.
Macquarie $100m development note
The loan can be rolled to, or increased for, new data centre projects only with the lender’s approval; the facility is uncommitted.
Macquarie $100m development note
Each new site needs a letter of intent, a Phase I environmental report and a land purchase agreement or option.
Macquarie $100m development note
Each new project company becomes a guarantor, and new loans may carry their own base return.
The filed wording
(i) Condition Precedent to Second Draw. Following the Closing Date and prior to the occurrence of the Maturity Date, upon the Company’s request, at the Lender’s sole discretion, the Lender may fund the Second Draw to the Company upon the satisfaction (or waiver by the Lender) of the following condition precedent
Macquarie development loan to Applied Digital (APLD DevCo), $100m, for a hyperscale campus before the lease, section 2(i) · 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.
InfraCompute Weekly
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Deals, terms and the clauses behind them, for the people financing data centres, GPU clouds and the power behind them. By Randeep Bubbra.
