Simpson Thacher recently represented CIM Group, LLC in connection with a private capital financing with an initial commitment of $125 million to a subsidiary of Applied Digital Corporation (“Applied Digital”), which can be upsized upon mutual agreement by both parties to up to $200 million. Proceeds from the financing will be used by Applied Digital for the buildout of its high-performance computing data center campus located in Ellendale, North Dakota. The financing closed on June 7, 2024.
In connection with the financing, CIM will initially receive a warrant to purchase up to 6,300,449 shares of common stock of Applied Digital, and will receive warrants to purchase additional common stock of Applied Digital upon the funding of loans under the loan financing.
Applied Digital Corporation (NASDAQ: APLD) is a designer, builder and operator of next-generation digital infrastructure designed for high-performance computing applications.
The Simpson Thacher team included Matthew Einbinder, Amy Beller, Ron Havas, Hana Muwaqet and Jack Davis (Alternative Capital and Private Credit—Loans); Brian Rosenzweig, Richie Ragusa and Suzannah Ranzo (Alternative Capital and Private Credit—Warrants); Dennis Loiacano and Tim Gallagher (Real Estate); Adam Arikat, Benjamin Rippeon and Michael Leitner (Tax); Michael Isby (Environmental); and Jon Pall (Collateral).