CION secures $100 million in Senior Unsecured Notes

NEW YORK - CION Investment Corporation (NYSE: CION), a business development company, has completed an additional offering of $100 million in floating rate Senior Unsecured Notes, due 2027. This tranche B offering is an add-on to the initial November 2023 issuance of the 2027 Notes.

The newly issued notes will carry an interest rate based on the three-month Secured Overnight Financing Rate (SOFR) plus a credit spread of 3.90%, with a 2.00% SOFR floor. Interest will be paid quarterly starting November 15, 2024, and the notes will mature on November 8, 2027. CION retains the option to redeem the notes, in whole or in part, at par with a "make-whole" premium.

The notes, classified as general unsecured obligations, will rank equally with all of CION's existing and future unsecured debt and have received an investment-grade rating.

CION plans to use the net proceeds to repay debt under its senior secured financing arrangements, invest in portfolio companies in line with its objectives, and for working capital and general corporate purposes.

Edgar Matthews & Co. LLC served as the sole placement agent for the offering. The notes were issued through a private placement under the Securities Act of 1933, and accordingly, have not been registered under the Securities Act or any state securities laws.

Keith Franz, CION's CFO, expressed confidence in the company's financial positioning in the current economic environment, emphasizing the strategic importance of increasing the company's unsecured debt mix.

CION Investment Corporation, with total assets of approximately $2.0 billion as of June 30, 2024, focuses on senior secured loans to U.S. middle-market companies and is managed by CION Investment Management, LLC.

The information provided in this article is based on a press release statement.

In other recent news, CION Investments has partnered with GCM Grosvenor to create scalable investment solutions for individual investors. The collaboration aims to leverage CION's distribution and product management skills with GCM Grosvenor's expertise in private markets. Meanwhile, CION Investment Corporation has reported a net investment income of $0.43 per share for the second quarter of 2024. This income effectively covered an increased quarterly base dividend, and the net asset value per share rose to $16.08, marking a 5% appreciation year-over-year.

In other developments, CION's shareholders have approved a significant share issuance proposal, allowing the company to issue up to 25% of its outstanding shares at a price below the net asset value over the next 12 months, subject to certain conditions. This move reflects the company's strategic direction and potential growth opportunities as authorized by its shareholders. Looking forward, CION plans to renew its share repurchase authorization, indicating confidence in its stock value. These recent developments highlight the company's commitment to its strategic growth plans and its efforts to provide value to its shareholders.

InvestingPro Insights

CION Investment Corporation's (NYSE: CION) recent completion of an additional $100 million offering in Senior Unsecured Notes reflects its strategic financial management, and the company's current financial metrics provide further insights. With a market capitalization of $641.45 million, CION is trading at a low earnings multiple, with a P/E ratio of 5.22, suggesting that the company's stock could be undervalued compared to its earnings. This is supported by an adjusted P/E ratio for the last twelve months as of Q2 2024 at 5.83.

Investors seeking income will find CION's dividend policy particularly attractive. The company has a history of rewarding shareholders, having raised its dividend for three consecutive years. As of the latest data, CION boasts a robust dividend yield of 14.08%, a figure that is significant in the current investment landscape. This commitment to returning capital to shareholders is complemented by a dividend growth of 3.68% over the last twelve months as of Q2 2024.

For those considering long-term potential, CION's revenue growth stands out, with a 12.57% increase over the last twelve months as of Q2 2024. This indicates a healthy expansion in the company's business operations, which aligns with the management's positive outlook on their financial positioning. The company's profitability is also notable, with analysts predicting profitability for the current year, and CION having been profitable over the last twelve months.

For more detailed analysis and additional InvestingPro Tips on CION, investors can explore the full suite of metrics and expert insights available on InvestingPro, which currently lists 5 tips that could help in making informed investment decisions.

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