CION Investment Corporation Announces the Issuance of $100 Million Floating Rate Senior Unsecured Notes due 2027
November 13 2023 - 8:00AM
Business Wire
Senior Unsecured Notes are Rated Investment
Grade
CION Investment Corporation (NYSE: CION) (“CION”) announced
today that it closed an offering of $100 million in aggregate
principal amount of its Senior Unsecured Notes due 2027 (the
“Notes”).
The Notes will bear interest at a floating rate equal to the
three-month Secured Overnight Financing Rate (“SOFR”) plus a credit
spread of 4.75% per year and subject to a 2.00% SOFR floor, which
will be paid quarterly commencing on February 15, 2024. The Notes
will mature on November 8, 2027 and may be redeemed in whole or in
part at CION’s option at par plus a “make-whole” premium, if
applicable. The Notes will be general, unsecured obligations and
rank equal in right of payment with all of CION’s existing and
future unsecured indebtedness. The Notes are rated investment
grade.
CION expects to use the net proceeds of this offering to
primarily repay debt under its senior secured financing
arrangements, make investments in portfolio companies in accordance
with its investment objectives, and for working capital and general
corporate purposes.
Edgar Matthews & Co. LLC acted as the sole placement agent
for this offering.
The offering was conducted, and the Notes were issued, as a
private placement under Section 4(a)(2) of the Securities Act of
1933, as amended (the “Securities Act”), and the rules and
regulations promulgated thereunder. As a result, the Notes have not
been and will not be registered under the Securities Act or any
state securities laws and may not be offered or sold in the United
States absent registration or an applicable exemption from such
registration requirements. This announcement does not constitute an
offer to sell or a solicitation of an offer to buy any of the
Notes, nor shall there be any offer, solicitation or sale in any
state or jurisdiction in which such an offer, solicitation or sale
would be unlawful.
Michael A. Reisner, co-CEO of CION stated, “We are excited to
announce the successful closure of our $100 million Senior
Unsecured Notes offering, a significant milestone for CION
Investment Corporation. We especially value the fact that we
obtained a floating rate in this higher-rate environment. This
financing not only enhances our financial strength but also
provides us with the means to strategically manage our secured
versus unsecured debt mix, continue making impactful investments in
line with our objectives, and further fortify our position in the
market. We appreciate the support of our investors and look forward
to the positive impact this will have on our continued growth and
success.”
ABOUT CION INVESTMENT CORPORATION
CION Investment Corporation is a leading publicly listed
business development company that had approximately $1.9 billion in
total assets as of September 30, 2023. CION seeks to generate
current income and, to a lesser extent, capital appreciation for
investors by focusing primarily on senior secured loans to U.S.
middle-market companies. CION is advised by CION Investment
Management, LLC, a registered investment adviser and an affiliate
of CION. For more information, please visit www.cionbdc.com.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements that
involve substantial risks and uncertainties. You can identify these
statements by the use of forward-looking terminology such as "may,"
"will," "should," "expect," "anticipate," "project," "target,"
"estimate," "intend," "continue," or "believe" or the negatives
thereof or other variations thereon or comparable terminology. You
should read statements that contain these words carefully because
they discuss CION’s plans, strategies, prospects and expectations
concerning its business, operating results, financial condition and
other similar matters. These statements represent CION’s belief
regarding future events that, by their nature, are uncertain and
outside of CION’s control. There are likely to be events in the
future, however, that CION is not able to predict accurately or
control. Any forward-looking statement made by CION in this press
release speaks only as of the date on which it is made. Factors or
events that could cause CION’s actual results to differ, possibly
materially from its expectations, include, but are not limited to,
the risks, uncertainties and other factors CION identifies in the
sections entitled "Risk Factors" and "Forward-Looking Statements"
in filings CION makes with the SEC, and it is not possible for CION
to predict or identify all of them. CION undertakes no obligation
to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
OTHER INFORMATION
The information in this press release is summary information
only and should be read in conjunction with CION’s Current Report
on Form 8-K, which CION filed with the SEC on November 13, 2023, as
well as CION’s other reports filed with the SEC. A copy of CION’s
Current Report on Form 8-K and CION’s other reports filed with the
SEC can be found on CION’s website at www.cionbdc.com and the SEC’s
website at www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20231113318016/en/
Media Susan Armstrong sarmstrong@cioninvestments.com
Investor Relations 1-800-343-3736
Analysts and Institutional Investors James Carbonara
Hayden IR (646)-755-7412 James@haydenir.com
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