Telecommunications High Yield Weekly: Weekly Update

Research evidence excerpt

Telecommunications High Yield Weekly: Weekly Update

News Summary

Telecommunications sector performance for the week ended June 18, 2026

• The ICE BofA High Yield Telecommunications Index returned 0.8% over the week

(Wednesday to Wednesday) and currently offers a YTW of 7.6%; this compares to a

weekly return of 0.5% and a YTW of 7.0% for the ICE BofA High Yield Master index.

APLD ComputeCo 2 – Proceeds from $2.15Bn PFORGE 6.75% secured notes ‘31

released from escrow on ESA condition satisfaction

• Applied Digital disclosed that the gross proceeds from its subsidiary’s, APLD

ComputeCo 2’s, notes issuance, which refers to the PFORGE $2.15 billion of 6.75%

senior secured notes due 3/15/31, were released from escrow as it satisfied the

ESA condition. Recall, the 6.75% notes had a special mandatory par redemption if by

6/30/26 APLD ComputeCo 2 did not enter into (a) binding electric service

agreement(s) for sufficient power to permit it to meet its requirements under the

lease.

• Recall, in March 2026, APLD ComputeCo 2 issued $2.15Bn of 6.75% senior secured

notes ’31 at $0.98 to fund the construction of 200MW of AI data center capacity at

Polaris Forge 2 in Harwood, North Dakota. The notes have mandatory amortization

beginning at 4.25% per annum after the issue date with the step-ups of 0.375% per

annum thereafter. The company has disclosed that Polaris Forge 2 is pre-leased to

Oracle with a 15-year base term, with expected delivery dates of 2H26-1H27, and

contracted revenue was approximately $5 billion for the 200MW base term with

expected net operating income margins of approximately 86%. The notes are first

callable on 3/15/28 at $103.375. The notes are rated Ba3/BB- by Moody's/Fitch,

respectively.

Cogent Communications – Amended 6.5% secured notes ’32 indenture to