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Debt
9 Months Ended
Feb. 29, 2024
Debt Disclosure [Abstract]  
Debt Debt
Long-term debt consisted of the following components (in thousands):
Interest RateMaturity DateFebruary 29, 2024May 31, 2023
Starion term loan6.50%July 25, 2027$10,730 $12,786 
Vantage Garden City loan6.15%April 26, 202812,757 10,074 
Starion Ellendale loan7.48%February 3, 202817,079 19,728 
Vantage transformer loan6.50%February 8, 20293,660 — 
Other long-term debt
373 354 
Deferred financing costs, net of amortization(425)(1,770)
Less: Current portion of term loan(19,329)(7,950)
Long-term debt, net$24,845 $33,222 
Remaining Principal Payments
Below is a summary of the remaining principal payments due over the life of the term loans as of February 29, 2024 (in thousands):
Remainder of FY24$14,429 
FY256,946 
FY268,555 
FY279,172 
FY285,492 
Thereafter
Total$44,599 
Letters of Credit
As of February 29, 2024, the Company had letters of credit totaling $36.5 million. The Company has restricted cash related to its letters of credit and is required to keep these balances in separate accounts for the duration of the letter of credit agreements. The Company presents all restricted cash amounts with letter of credit term of 12 months or less within the Restricted Cash caption within current assets and any amounts with a related letter of credit term of over 12 months in Other Assets.
Vantage Garden City Loan
During the third quarter of fiscal year 2024, the Company approved plans to sell its Garden City facility. In accordance with the original loan agreement, the sale of the Garden City facility will cause the associated loan to become immediately callable by the lender as those assets were pledged as collateral for the loan. As such, the Company has reclassified the outstanding balance on the loan of $12.8 million to Current portion of long-term debt on its condensed consolidated balance sheets as of February 29, 2024.
Cornerstone Bank Loan
On February 28, 2024, APLD GPU-01, LLC, a wholly-owned subsidiary of the Company, entered into a Loan Agreement with Cornerstone Bank and the Company as Guarantor (the “Cornerstone Bank Loan”). The Cornerstone Bank Loan provides for a term loan in the principal amount of $16.0 million with a maturity date of March 1, 2029. The Cornerstone Bank Loan contains customary covenants, representations, warranties and events of default. The Cornerstone Bank Loan provides for an interest rate of 8.59% per annum. The proceeds of the Cornerstone Bank Loan will be used to finance, in part, existing improvements to real property. As of February 29, 2024, the Company had not received funding from the Cornerstone Bank Loan and accordingly, no amounts have been included in the tables above.
Vantage Transformer Loan
On February 8, 2024, APLD ELN-02 LLC, a wholly-owned subsidiary of the Company, entered into a Loan Agreement with Vantage Bank and the Company as Guarantor (the “Vantage Transformer Loan”). The Vantage Transformer Loan provides for a term loan in the principal amount of $3.7 million with a maturity date of February 8, 2029. The Loan Agreement contains customary covenants, representations, warranties and events of default. The Vantage Transformer Loan provides for an interest rate of 6.50% per annum. The proceeds of the Vantage Transformer Loan were used to fund a transformer for its HPC location in Ellendale. As of February 29, 2024, there was $3.7 million outstanding on the loan.