CION Investment Corporation Issues $172.5 Million in 7.50% Notes: What Investors Need to Know
In a recent SEC filing, CION Investment Corporation (NYSE:CION) announced a significant agreement, issuing $172.5 million in aggregate principal amount of 7.50% Notes due December 30, 2029. These notes will pay interest quarterly, are unsecured, and rank equally with existing and future unsecured debt. While they are senior to potential preferred stock issuances and subordinated debt, they are effectively subordinated to secured debt and subsidiary obligations.
CION has the option to redeem the notes starting December 30, 2026, at a redemption price of $25 per note plus accrued interest. The company has also committed to certain provisions of the Investment Company Act of 1940 and providing financial information to note holders and the trustee.
In addition to this issuance, CION has reported strong financial performance, with a net investment income of $0.43 per share in the second quarter of 2024. The company's net asset value per share has appreciated by 5% year-over-year.
Furthermore, CION has raised additional capital through the issuance of $150 million in notes due 2029 and $100 million in floating rate Senior Unsecured Notes due 2027. The company has also formed strategic partnerships to expand access to private market assets and received shareholder approval for issuing new shares.
InvestingPro Insights reveal that CION's financial position is robust, with a market capitalization of $628.09 million and an attractive P/E ratio of 5.22. The company has a history of dividend growth, currently offering a dividend yield of 14.38%, making it appealing to income-focused investors.
Overall, CION's new debt issuance is seen as a strategic move to optimize its capital structure and support future growth. Investors interested in a more in-depth analysis can access additional InvestingPro Tips for a comprehensive view of the company's investment potential.