Technology High Yield Weekly: Weekly Update

Research evidence excerpt

Technology High Yield Weekly: Weekly Update

News Summary

Technology sector performance for the week ended June 12, 2026

• The ICE BofA High Yield Technology Index posted a return of -0.2% (Thursday to

Thursday) and currently offers a YTW of 8.2%; this compares to a weekly return of -

0.0% and a YTW of 7.1% for the ICE BofA High Yield Master Index.

APLD ComputeCo 3 LLC – Applied Digital subsidiary, APLD ComputeCo 3, issued

$1.59Bn of 7% sr. secured notes ’31

• Applied Digital subsidiary APLD ComputeCo 3 LLC issued $1.59 billion of 7%

senior secured notes due 6/15/31 to fund construction of its 150MW data

center, ELN-4, which is part of its 400MW Polaris Forge 1 campus in Ellendale,

North Dakota. Recall, on Applied Digital’s latest earnings call in April, it had said

there was one tranche of debt left to place for the final 150MW at Polaris Forge 1.

In addition construction costs, additional stated use of proceeds include bridge loan

repayment, funding of debt service reserves and transaction expenses. Recall,

CoreWeave has signed 15-year leases for all the Polaris Forge 1 capacity. The

company said it expects ELN-04 is expected to be energized in 1H27. Applied

Digital parent will provide completion guarantees for ELN-04.

• S&P rated the issuer B+ and the secured notes BB- with a positive outlook. It

said the positive outlook reflects its outlook on the parent company, Applied Digital.

It said the rating reflects its view that construction will be completed on time, but is

constrained by the B+ parent rating. S&P noted all ELN-4 capacity is pre-leased to

CoreWeave under a 15-year contract with three five-year extension options and a

modified gross lease structure. It noted that Applied Digital entered a memorandum