CION Investment Corp Raises $30M in Private Placement of Senior Notes, Up to $60M Total
CION is trading near its 52-week low of $5.965 (7.3% above the low).
Summary
CION Investment Corp raised $30 million in a private placement of senior unsecured notes, with the option to issue up to $30 million more within a year. The notes carry 7.50% and 8.00% coupons and mature in 2029 and 2031. Proceeds will repay debt and support general corporate purposes.
Key Events · Financing and Capital Events · CION
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Private Placement of Senior Notes
CION entered into two Note Purchase Agreements for up to $60 million in senior unsecured notes. Initial closing of $30 million occurred on July 15, 2026, consisting of $2 million in 7.50% notes due 2029 and $28 million in 8.00% notes due 2031.
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Use of Proceeds
Net proceeds will be used to repay a portion of outstanding debt and for working capital and general corporate purposes, improving liquidity but increasing leverage.
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Financial Covenants
The agreements include covenants requiring minimum shareholders' equity of $493.1 million, asset coverage ratio of at least 150%, interest coverage ratio of at least 1.25x, and unencumbered asset coverage ratio of at least 1.25x.
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Potential Additional Issuance
Subject to purchaser acceptance, CION may issue up to an additional $30 million in notes within one year, providing further financing flexibility.
Analysis · CION · Unknown
CION Investment Corp entered into two note purchase agreements for up to $60 million in senior unsecured notes, with an initial closing of $30 million on July 15, 2026. The 2029 notes carry a 7.50% coupon and the 2031 notes an 8.00% coupon, both issued at a discount (98% and 97% of par, respectively). Proceeds will repay outstanding debt and fund working capital. This financing strengthens the balance sheet but adds leverage and interest expense. The company recently reported declining net investment income and NAV, making this capital raise important for liquidity. The notes include financial covenants requiring minimum shareholders' equity of $493.1 million and asset coverage of at least 150%, which are in line with BDC norms. The potential for an additional $30 million in subsequent closings provides further flexibility but also increases future debt service obligations.
At the time of this filing, CION was trading at $6.40 on NYSE in the Unknown sector, with a market capitalization of approximately $322.1M. The 52-week trading range was $5.97 to $10.93. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.