NEW YORK–(BUSINESS WIRE)–CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) announced today that it closed a senior unsecured term loan facility in aggregate principal amount of $50 million on April 27, 2022 (the “ More Term Loan”) with More Provident Funds and Pensions Ltd. as a lender. Net proceeds to the Company, after fees and other financing costs, were approximately $49 million, which the Company intends to use to fund additional investments consistent with its investment objectives and for general corporate purposes.
Advances under the Term Loan bear interest at a floating rate equal to the three-month Secured Overnight Financing Rate (“SOFR”) plus a credit spread of 3.50% per annum and subject to a 1.0% SOFR floor, quarterly payable retrospectively. Advances under the Term Loan mature on April 27, 2027 and are repayable in whole or in part at face value plus a make-whole premium, if applicable, at the Company’s option at any time or from time to time.
The company also announced that on March 28, 2022, March 34th Street Funding, LLC, the Company’s wholly owned dedicated funding subsidiary, has made an amendment to increase the total amount owed to the Company under its current senior secured credit facility (the “JPM Credit Facility) with JPMorgan Chase Bank, National Association, as lender, from $575 million to $675 million. Additional advances of up to US$100 million bear interest at a floating rate equal to the three-month SOFR plus a credit spread of 3.10% per annum and an adjustment of the London Interbank Offered Rate to the SOFR credit spread of 0, 15% No other material terms of the JPM Credit Facility were changed in connection with this change. The Company intends to use the proceeds from the tap to fund additional investments consistent with its investment objectives.
“With the closing of the $50 million extended term loan and the recent increase of $100 million in the total committed amount of our senior secured credit facility from JPMorgan by $100 million, we are pleased to have increased our availability and balance sheet flexibility as we strive are committed to growing our investment portfolio in a prudent and strategic manner,” said Mark Gatto, Co-Chief Executive Officer of CION.
“The expansion of our senior secured credit facility and the closing of the $50 million extended term loan is a testament to the strong working relationships we have with our lenders,” said Michael A. Reisner, Co-Chief Executive Officer of CION. “We thank our bank and credit partners for their continued support and trust in CION.”
ABOUT CION INVESTMENT CORPORATION
CION Investment Corporation is a leading public business development company with assets of approximately $1.8 billion as of December 31, 2021. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to US mid-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and a subsidiary of CION. For more information, please visit www.cionbdc.com.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements that involve significant risks and uncertainties. You can support these statements by using forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “target”, “estimate”, “intend”, ” “continue” or “believe” or the negatives thereof or other variations thereof or comparable terminology. You should read statements containing these words carefully because they address CION’s plans, strategies, prospects and expectations regarding its business, results of operations, financial condition and other similar matters. These statements represent CION’s beliefs about future events, which by their nature are uncertain and beyond CION’s control. However, there are likely to be events in the future that CION cannot accurately predict 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 materially from its expectations include, among others, the risks, uncertainties and other factors identified by CION in the “Risk Factors” and “Forward-Looking Statements” sections. in filings CION files with the SEC and it is not possible for CION to predict or identify all. CION undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
The information in this press release is summary information only and should be read in conjunction with CION’s most recent reports on Form 8-K, filed with the SEC on March 29, 2022 and April 27, 2022, and the others Reports from CION submitted with the SEK. A copy of CION’s current reports on Form 8-K and other reports filed by CION with the SEC are available on CION’s website at www.cionbdc.com and the SEC’s website at www.sec.gov.