CION Investment Corporation Successfully Secures $100 Million Debt Offering
CION Investment Corporation Successfully Secures $100 Million Debt Offering
CION Investment Corporation (NYSE: CION) has successfully closed an offering amounting to $100 million in floating rate Senior Unsecured Notes, Tranche B, due 2027. This issuance serves as an additional tranche of the existing 2027 Notes previously launched by the firm.
Key Features of the Notes
The floating rate Senior Unsecured Notes are structured to provide interest payments based on the three-month Secured Overnight Financing Rate (SOFR) plus a credit spread of 3.90% per annum. There is a minimum payment guarantee with a SOFR floor set at 2.00%, ensuring competent yields for investors. Commencing on November 15, 2024, interest will be paid quarterly, with maturity taking place on November 8, 2027, allowing CION the option to redeem the Notes in whole or part at par plus any applicable make-whole premium.
Repayment and Strategic Use of Proceeds
CION has indicated that the net proceeds from this capital raise will primarily focus on debt repayment associated with its senior secured financing arrangements. This debt management strategy aligns with CION's objectives, facilitating further investments in portfolio companies while also supporting working capital and various corporate needs. Additionally, the company has incurred customary costs and expenses linked to this offering.
Role of Edgar Matthews & Co. LLC
Edgar Matthews & Co. LLC has been designated as the sole placement agent for this offering, confirming the transaction’s soundness and adherence to professional standards.
Regulatory Information
The issuance and offering of the Notes were carried out as a private placement, compliant with Section 4(a)(2) of the Securities Act of 1933. This regulatory framework means that the Notes do not require registration under the Securities Act or any relevant state securities laws, retaining a selective trading profile to adhere to legal stipulations.
Growth and Future Outlook
Keith Franz, CFO of CION Investment Corporation, expressed enthusiasm regarding the successful conclusion of the offering, emphasizing the strategic priority of bolstering their unsecured debt profile. Franz noted that this approach not only fortifies CION's financial standing in the ever-evolving macroeconomic landscape but also enhances the company's flexibility as they look ahead. The positive investor sentiment showcases CION’s robust relationships, further establishing its standing in the market.
About CION Investment Corporation
CION Investment Corporation positions itself as a leading publicly listed business development company, managing approximately $2.0 billion in total assets. The corporation’s primary focus lies in generating current income and modest capital appreciation through investing in senior secured loans to U.S. middle-market companies. These strategic investments are facilitated by CION Investment Management, LLC, a registered investment adviser affiliated with CION.
Frequently Asked Questions
What is CION Investment Corporation's recent financing move?
CION Investment Corporation recently closed a $100 million offering of floating rate Senior Unsecured Notes, Tranche B, due in 2027.
What are the interest rates on these Notes?
The Notes bear interest at a floating rate equal to SOFR plus 3.90%, with a minimum SOFR floor of 2.00%.
What will CION do with the proceeds from this offering?
The proceeds will primarily be used to repay existing debt, invest in portfolio companies, and cover working capital needs.
Who acted as the placement agent for the offering?
Edgar Matthews & Co. LLC served as the sole placement agent for the Notes offering.
How does this offering affect CION's financial strategy?
This offering enhances CION's unsecured debt profile, providing strategic flexibility to navigate the current market environment.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.
Related Articles
- Hampton Financial Secures $500,000 in Convertible Debenture Deal
- Immersion Corporation Changes Fiscal Year-End for Growth
- Evoke Pharma Secures $2.4 Million Through Warrant Amendments
- Applied Digital Launches Series E-1 Preferred Stock Offering
- Lamb Weston Captures $500 Million Term Loan for Growth
- JPMorgan Chase Enhances Dividend Reinvestment Strategy
- Centene Corporation Announces Leadership Changes and Future Plans
- Armada Hoffler Properties Completes Major Stock Offering
- Daxor Corporation Optimizes Regulatory Pathway for Device Launch
- How a $100 Investment in Eaton Corp Grew Over 15 Years
Recent Articles
- Cidara Therapeutics Pushes Forward with CD388 Flu Vaccine Trial
- Investigation into Acadia Healthcare’s Leadership Conduct
- Alliance Trust PLC Updates Net Asset Value for Shareholders
- Ecolab's Latest Study Uncovers Key Insights on Water Use
- Bridge Growth Partners Enhances Team with Senior Advisor
- Gnosis Freight Secures Major Investment for Expansion
- B. Riley Securities Welcomes Brendon Philipps to Expand Advisory Services
- Rediscovering Eggs: The American Egg Board's Fresh Approach
- Strengthening Water Policy: Radhika Fox Joins I Squared Capital
- Bracco Diagnostics Unveils CitraClear: The Future of Hydration
- ZEMA Global Data Corporation Expands Data Services through Acquisition
- Crafting Flavor: Vermont Smoke & Cure and WhistlePig Unite
- Forma Capital Enhances Investment Opportunities with Cashmere Fund
- Key Developments Regarding Reconnaissance Energy Securities Case
- Empower Expands Horizons with the Acquisition of OptionTrax
- Blue Arch Capital, Lincoln Property, and LoanCore Form Alliance
- Settlement Reached With Key Individuals by AnalytixInsight
- Why Tesla's Stock Is Surging Beyond Other Tech Giants
- Navigating the Ethical Challenges of Generative AI
- Traction Uranium Corp. Upholds Share Consolidation Strategy
- Musely Celebrates 100x Growth as Tele-Dermatology Leader
- Canoo's Innovative Electric Vans: Shaping the Future of Fleets
- New Developments in Arrow Financial Corp Class Action Settlement
- Empowering Grid Resiliency: New Agreements Between Key Innovators
- Monarch Insurance Service Enhances Coverage with Obsidian
- Harris Personal Injury Lawyers Achieves Major Legal Milestones
- Moleculin Biotech Showcases Promising Annamycin Results in Cancer Models
- Halia Therapeutics' HT-6184 Shows Hope in Combating Obesity
- Rising Diaper Affordability Crisis Affects U.S. Families Deeply
- Peet's Coffee Unveils Ultra Coffee for National Coffee Day
- Honeywell Harnesses AI with Qualcomm to Elevate Business Efficiency
- Avantor Showcases Innovations at BioProcess International 2024
- Lil Pump Collaborates with BC.GAME to Transform Gaming Scene
- Innovative Strategies to Combat Global Poverty Challenges
- 11 bit Studios Shares Plunge Following Frostpunk 2 Launch
- Trump's Key Issues with Swing-State Voters: Analyzing the Landscape
- CrowdStrike's Stock Insights: Analyst Upgrades and Future Prospects
- Priority Technology Sees Growth as Stock Target Raised to $13
- Pebblebrook Hotel Trust Announces $350M Notes Offering Plan
- Swiss National Bank Likely to Decrease Rates This Week
- Wen Lung Wang Boosts Ankam Holdings with Significant Stock Purchase
- Biden Administration's Push to Restrict Chinese Automotive Imports
- Jeffs' Brands' Fort Products Joins Amazon's Elite Top Seller List
- Celebrating Four Years of the Distinguished Gentleman's Drive
- Brookfield Global Infrastructure Fund Declares Latest Distribution
- Growth Projections for Automotive Gear Oil Market to 2034
- Sports.com Enhances Global Presence with New Asian Market Launch
- Stardust Power Appoints Paramita Das as Strategic Leader
- Oma Savings Bank Raises EUR 30 Million with New Bond Issue
- VR Resources Advances Copper-Gold Exploration with New Properties