CION Ares Diversified Credit Fund Announces Closing of $300 Million Private Placement of Preferred Stock

Rhea-AI Summary

CION Ares Diversified Credit Fund completed its $300 million private placement of mandatory redeemable preferred stock, achieving the final closing on Sept. 30, 2021. This included the sale of 3,600,000 Series B MRPS and 6,000,000 Series C MRPS, generating gross proceeds of $90 million and $150 million, respectively. Proceeds are primarily allocated for debt repayment and general corporate purposes. The MRPS is not registered under the Securities Act and cannot be offered or sold without registration or exemption. CADC aims to provide superior risk-adjusted returns across various market cycles.

Positive

• Completed $300 million private placement of mandatory redeemable preferred stock.
• Generated gross proceeds of $90 million from Series B and $150 million from Series C MRPS.
• Proceeds used for debt repayment, enhancing financial stability.

Negative

• MRPS not registered under the Securities Act, limiting potential investor access.

NEW YORK, Oct. 18, 2021 (GLOBE NEWSWIRE) -- CION Ares Diversified Credit Fund ("CADC") announced that on Sept. 30, 2021, it completed the final of two closings of its $300 million private placement of mandatory redeemable preferred stock ("MRPS"). The final closing consisted of the sale of (i) 3,600,000 Series B MRPS for gross proceeds of $90 million and (ii) 6,000,000 Series C MRPS for gross proceeds of $150 million. The initial closing of the sale of 2,400,000 Series A MRPS for gross proceeds of $60 million was completed on July 30, 2021. Net proceeds from the MRPS have been used to repay existing debt and for investment and general corporate purposes.

The MRPS will not be and has not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state securities laws and may not be offered or sold absent registration under the Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted. An investor should consider CADC's investment objective, risks, charges, and expenses carefully before investing.

ABOUT CION ARES DIVERSIFIED CREDIT FUND

CADC is a continuously offered, diversified, unlisted closed-end management investment company that is structured as an interval fund. CADC is externally managed by CION Ares Management, LLC ("CAM"). CADC's investment objective is to provide superior risk-adjusted returns across various market cycles by investing in a globally diversified portfolio of liquid and illiquid credit assets. CADC seeks to capitalize on market inefficiencies and relative value opportunities throughout the entire global credit spectrum. There can be no assurance that CADC will achieve its investment objective.

For more information, including CADC's daily net asset value, please visit www.cioninvestments.com/cadc.

ABOUT CION INVESTMENTS

CION Investments is a leading manager of alternative investment solutions designed to redefine the way individual investors can build their portfolios and help meet their long-term investment goals. CION Investments currently sponsors CION Investment Corporation (NYSE: CION), a leading publicly listed business development company that currently manages approximately $1.8 billion in assets, and also sponsors, through CION Ares Management, CION Ares Diversified Credit Fund, a globally diversified interval fund that currently manages approximately $2.0 billion in assets.

For more information, please visit www.cioninvestments.com.

ABOUT ARES MANAGEMENT CORPORATION

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate, and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2021, including the acquisition of Black Creek Group which closed July 1, 2021, Ares Management Corporation's global platform had approximately $262 billion of assets under management, with approximately 2,000 employees operating across North America, Europe, Asia Pacific, and the Middle East.

FORWARD LOOKING STATEMENTS

The information in this press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are identified by words such as "may," "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "would," "could," "should," and variations of these words and similar expressions, including references to assumptions, forecasts of future results, shareholder diversification, institutional research coverage and availability and access to capital. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. CADC undertakes no obligation to update any forward-looking statements contained herein to conform the statements to actual results or changes in its expectations.

For more information, please contact:

Alex Cavalieri

Head of Marketing - CION Investments 
E: acavalieri@cioninvestments.com  

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FAQ

What is CION's recent investment milestone in 2021?

CION Ares Diversified Credit Fund completed a $300 million private placement of mandatory redeemable preferred stock on Sept. 30, 2021.

How much was raised in CION's final closing of MRPS?

The final closing raised $90 million from Series B MRPS and $150 million from Series C MRPS.

What are the intended uses of proceeds from CION's MRPS?

The proceeds from the MRPS will be used to repay existing debt and for general corporate purposes.

Is CION's MRPS registered under the Securities Act?

No, the MRPS is not registered under the Securities Act and cannot be offered or sold without registration or an exemption.

What is CADC's investment objective?

CADC aims to provide superior risk-adjusted returns across various market cycles through a diversified portfolio of credit assets.