CION Investment Corporation Enters Into a New Three-Year $125 Million Loan Agreement With UBS

Rhea-AI Summary

CION Investment (NYSE: CION) has announced a significant refinancing move, terminating its existing senior secured repurchase facility with UBS AG, London Branch and simultaneously entering into a new $125 million senior secured credit facility with UBS. The new agreement features improved economic terms, reducing the credit spread by 45 basis points from SOFR plus 3.20% to SOFR plus 2.75% per year. The facility has a maturity date of February 13, 2028.

Positive

• Secured new $125 million credit facility with improved terms
• Reduced borrowing costs by 45 basis points
• Extended maturity to February 2028, providing long-term financing stability

Negative

• Incurred undisclosed costs and expenses for the transaction

Insights

Financial Analyst

The new $125 million credit facility with UBS marks a strategic enhancement in CION's debt structure, with the 45 basis point reduction in credit spread delivering meaningful cost savings. For perspective, on a fully drawn facility, this reduction would translate to approximately $562,500 in annual interest savings, strengthening CION's earnings potential and dividend coverage capacity.

The improved economic terms arrive at an opportune time in the credit cycle. With the facility extending until 2028, CION has secured more favorable financing terms ahead of potential market volatility, while the longer duration provides enhanced stability for their lending operations. The reduction in borrowing costs from SOFR + 3.20% to SOFR + 2.75% indicates growing lender confidence in CION's credit quality and business model.

Beyond the immediate cost benefits, the "more constructive operating provisions" suggest increased operational flexibility, which could support CION's ability to navigate market opportunities and manage their investment portfolio more efficiently. This is particularly valuable for a Business Development Company (BDC) that needs to maintain regulatory compliance while maximizing investment returns.

The facility's structure also demonstrates prudent liability management. By replacing the repurchase facility with a traditional credit facility, CION potentially reduces operational complexity and margin call risks, which enhances their financial stability. This transition to more conventional financing aligns with industry best practices and could improve CION's risk profile in the eyes of both equity and debt investors.

Provides Improved Economic Terms and More Constructive Operating Provisions

NEW YORK--(BUSINESS WIRE)-- CION Investment Corporation (NYSE: CION) (“CION”) announced today that it has terminated its existing senior secured repurchase facility with UBS AG, London Branch (“UBS”) and simultaneously entered into a new senior secured credit facility with UBS.

Under the new $125 million senior secured credit facility, the credit spread on the floating interest rate payable by CION on all advances was reduced by 45 basis points, from the three-month Secured Overnight Financing Rate (“SOFR”) plus a credit spread of 3.20% per year to SOFR plus a credit spread of 2.75% per year. All outstanding advances must be repaid by the final maturity date of February 13, 2028. CION incurred certain customary costs and expenses in connection with these transactions.

ABOUT CION INVESTMENT CORPORATION

CION Investment Corporation is a leading publicly listed business development company that had approximately $1.9 billion in total assets as of September 30, 2024. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and an affiliate of CION. For more information, please visit www.cionbdc.com.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "project," "target," "estimate," "intend," "continue," or "believe" or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss CION’s plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters. These statements represent CION’s belief regarding future events that, by their nature, are uncertain and outside of CION’s control. There are likely to be events in the future, however, that CION is not able to predict accurately 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, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors CION identifies in the sections entitled "Risk Factors" and "Forward-Looking Statements" in filings CION makes with the SEC, and it is not possible for CION to predict or identify all of them. CION undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

OTHER INFORMATION

The information in this press release is summary information only and should be read in conjunction with CION’s Current Report on Form 8-K, which CION filed with the SEC on February 19, 2025, as well as CION’s other reports filed with the SEC. A copy of CION’s Current Report on Form 8-K and CION’s other reports filed with the SEC can be found on CION’s website at www.cionbdc.com and the SEC’s website at www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250219907851/en/

Media

Susan Armstrong

sarmstrong@cioninvestments.com



Investor Relations

Charlie Arestia

carestia@cioninvestments.com

(646) 253-8259

Source: CION Investment Corporation

FAQ

What are the terms of CION's new $125 million credit facility with UBS?

CION's new credit facility with UBS features a reduced credit spread of SOFR plus 2.75% per year, down from SOFR plus 3.20%, with a maturity date of February 13, 2028.

How much did CION reduce its borrowing costs in the new UBS facility?

CION reduced its borrowing costs by 45 basis points, lowering the credit spread from SOFR plus 3.20% to SOFR plus 2.75% per year.

When does CION's new UBS credit facility mature?

CION's new credit facility with UBS matures on February 13, 2028.

What is the size of CION's new credit facility with UBS?

CION's new credit facility with UBS is $125 million.