NEW YORK, June 27, 2022–(BUSINESS WIRE)–CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today announced that its Board of Directors, including independent directors, has increased the number of common shares repurchasable under its existing repurchase policy (the “Policy”) of $10 million, or 20%, up to a total of $60 million. In addition, CION will enter into a trading plan adopted pursuant to Rule 10b5-1 of the Exchange Act (the “10b5-1 Redemption Plan”) to facilitate redemptions under the Policy during its first trading window. available after the last third of CION common stock will be available for trading on the NYSE on July 5, 2022.
In addition, it is expected that an affiliate of the CION Investment Advisor will also enter into a trading plan adopted pursuant to Rule 10b5-1 of the Exchange Act to permit such affiliate to also redeem shares of CION common stock. This additional trading plan will be established in addition to recent purchases made by senior members of CION’s management team and several directors, including certain independent directors. For information on recent purchases of common stock by CION officers and directors, please see https://www.cionbdc.com/#resources (SEC Filings).
“We believe that our strong balance sheet, solid credit quality and conservative investment strategy have positioned our portfolio well to minimize the effect of current market volatility and take advantage of new investment opportunities. Until 31 March 2022, we continued to diversify our portfolio across multiple sectors and our investment and origination activity remained strong, while our loss rate and non-recognitions remained low Given that our common stock trades currently at a significant discount to our net asset value, we believe that increasing the total amount to be redeemed under our previously announced policy is an efficient deployment of existing capital and should be highly accretive to our current shareholders,” said Mark Gatto, co-CEO of CION.
“As of March 31, 2022, CION’s net investment income increased to $19.5 million, or $0.34 per share, from $18.4 million, or $0.32 per share, as of December 31. 2021, while having a high allocation of first lien senior secured loans of around 94% and a low leverage ratio of 0.95x.In addition, we believe that our relatively conservative investment strategy has served investors well. , investments in non-recognition status amounting to only 0.6% at fair value as of March 31, 2022, and a cumulative annualized loss rate of only 0.11% since inception. recent expansion of our senior secured credit facility with JPMorgan from $100 million to $675 million and the $50 million unsecured term loan from an existing lender gives us the necessary flexibility and leverage to prudently capitalize on market conditions and hopefully ns-le, increase the income of our shareholders,” added Michael A. Reisner, Co-Chief Executive Officer of CION.
Share buyback policy
As previously announced, on September 15, 2021, CION’s Board of Directors, including the independent directors, approved the policy authorizing CION to repurchase up to $50 million of its outstanding common stock. Under the policy, CION plans to purchase shares of its common stock through various means such as open market transactions, including block purchases, and privately negotiated transactions. The number of shares redeemed and the timing, manner, price and amount of any redemption will be determined at CION’s discretion. Factors should include, but are not limited to, stock price, trading volume and general market conditions, as well as CION’s general business conditions. The policy may be suspended or terminated at any time and does not require CION to acquire any specific number of shares of its common stock.
The 10b5-1 repurchase plan will be entered into by CION and adopted pursuant to Rule 10b5-1 of the Exchange Act based in part on historical trading data regarding its shares. The 10b5-1 repurchase plan would allow common stock to be repurchased at a time when CION might otherwise be prevented from doing so under insider trading laws or self-imposed trading restrictions. The 10b5-1 buyback plan will be administered by an independent broker and will be subject to price, market volume and timing restrictions.
ABOUT CION INVESTMENT CORPORATION
CION Investment Corporation is a leading publicly traded business development company with approximately $1.8 billion in assets as of March 31, 2022. CION seeks to generate current income and, to a lesser extent, appreciation capital for investors with a primary focus on senior secured loans to US Middle Market Companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and subsidiary of CION. For more information, please visit www.cionbdc.com.
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 words such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “target”, “estimate”, ” intends, “” or “believe” or their negative forms or other variations or comparable terminology. You should read statements containing these words carefully because they discuss CION’s plans, strategies, outlook and expectations regarding its business, results of operations, financial condition and other similar matters. These statements represent CION’s beliefs regarding 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, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors identified by CION in the sections entitled “Risk Factors and “Forward-Looking Statements” in CION’s SEC filings, and it is not possible for CION to anticipate or identify all of them. 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 current reports on Form 8-K, which CION filed with the SEC on May 12, 2022 and June 27, 2022, as well as than other reports filed by CION. with the SEC. A copy of CION’s current reports on Form 8-K and CION’s other reports filed with the SEC are available on CION’s website at www.cionbdc.com and the SEC website at www.sec.gov.
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