CION Investment secures new $125 million credit facility

NEW YORK - CION Investment Corporation (NYSE: CION), a business development company with a market capitalization of $649 million, has announced the replacement of its prior senior secured repurchase agreement with a new $125 million senior secured credit facility through UBS AG, London Branch. This strategic financial move is set to provide CION with more favorable economic terms. According to InvestingPro, CION maintains a strong financial health score of 3.29, labeled as "GREAT," suggesting solid operational fundamentals.

The new credit facility offers a reduced credit spread on the floating interest rate, which CION will pay on all advances. Previously set at a three-month Secured Overnight Financing Rate (SOFR) plus a credit spread of 3.20% per annum, the rate has been lowered by 45 basis points to SOFR plus a credit spread of 2.75% per year. The agreement stipulates that all advances must be repaid by February 13, 2028.

CION, which reported approximately $1.9 billion in total assets as of September 30, 2024, focuses primarily on senior secured loans to U.S. middle-market companies. The company aims to generate current income and, to a lesser extent, capital appreciation for its investors, currently offering an attractive 12.5% dividend yield. Trading near its 52-week high of $12.69, CION maintains a conservative P/E ratio of 8.04 and a healthy current ratio of 5.09, indicating strong liquidity. InvestingPro subscribers can access 6 additional key insights and a comprehensive Pro Research Report, providing deeper analysis of CION’s financial position and growth prospects.

While this press release may contain forward-looking statements, it is important to note that such statements are subject to substantial risks and uncertainties and should be read with caution. Factors that could cause actual results to differ materially from expectations include risks and uncertainties detailed in the "Risk Factors" and "Forward-Looking Statements" sections of CION’s filings with the SEC. Notably, InvestingPro data indicates that two analysts have recently revised their earnings downward for the upcoming period, with the next earnings report expected on March 13, 2025.

The information provided is a summary and should be considered in conjunction with CION’s Current Report on Form 8-K filed with the SEC on February 19, 2025, as well as its other reports available on the SEC’s website.

This news article is based on a press release statement from CION Investment Corporation, and it is intended to present the facts surrounding their new credit facility without offering opinions or recommendations.

In other recent news, CION Investments and GCM Grosvenor have introduced the CION Grosvenor Infrastructure Fund (CGIF), a $322 million infrastructure fund. The fund initially includes a $240 million portfolio of 43 infrastructure assets and an additional $82 million in committed capital. Designed as an evergreen interval fund, CGIF allows individual investors access to private infrastructure investments typically reserved for institutional investors. Meanwhile, CION Investment Corp has extended its repurchase agreement with UBS AG. Originally set to expire on January 15, 2025, the agreement has been extended to February 14, 2025, as both parties work toward a broader amendment. This extension relates to the Class A-1 Notes and Class A-R Notes sold to UBS under the facility. The extension is part of CION’s ongoing financial strategy, maintaining its capital and liquidity management practices. Investors can find more details about this agreement in the exhibits attached to CION’s SEC filing.

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