CION Investment Corp. Enters New Financial Obligation
Ticker: CICB · Form: 8-K · Filed: Oct 4, 2024 · CIK: 1534254
| Field | Detail |
|---|---|
| Company | Cion Investment Corp (CICB) |
| Form Type | 8-K |
| Filed Date | Oct 4, 2024 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 4 min |
| Key Dollar Amounts | $0.001, $30 million, $29.4 million, $543.6 m, $25,000,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: debt, financing, material-agreement
TL;DR
CION just took on a new financial obligation, filing an 8-K on it.
AI Summary
CION Investment Corp. entered into a material definitive agreement on September 30, 2024, related to a direct financial obligation. The filing does not specify the exact nature of the agreement or the dollar amounts involved, but it indicates a new financial commitment for the company.
Why It Matters
This filing signals a new financial commitment or debt for CION Investment Corp., which could impact its financial leverage and future investment capacity.
Risk Assessment
Risk Level: medium — Entering into new financial obligations can increase a company's debt and financial risk, but the lack of specific details in this filing makes it difficult to assess the full impact.
Key Players & Entities
- CION Investment Corp. (company) — Registrant
- September 30, 2024 (date) — Date of earliest event reported
- October 4, 2024 (date) — Date of Report
FAQ
What is the specific nature of the material definitive agreement entered into by CION Investment Corp. on September 30, 2024?
The filing states that CION Investment Corp. entered into a material definitive agreement, but the specific details of this agreement are not provided in the provided text.
What is the dollar amount of the direct financial obligation or off-balance sheet arrangement created?
The provided text does not specify the dollar amount of the financial obligation or arrangement.
What is the purpose of this new financial obligation for CION Investment Corp.?
The purpose of the new financial obligation is not detailed in the provided excerpt of the filing.
Does this new financial obligation affect CION Investment Corp.'s existing debt structure?
The filing indicates the creation of a direct financial obligation, but it does not provide information on how it affects the company's existing debt structure.
When was the earliest event reported in this 8-K filing?
The earliest event reported in this 8-K filing was on September 30, 2024.
Filing Stats: 1,060 words · 4 min read · ~4 pages · Grade level 12.3 · Accepted 2024-10-04 16:30:28
Key Financial Figures
- $0.001 — ch registered Common stock, par value $0.001 per share CION The New York Stock E
- $30 million — ION in an aggregate principal amount of $30 million (the "2024 Term Loan"). After the deduc
- $29.4 million — eceived net borrowings of approximately $29.4 million less customary legal fees and other exp
- $543.6 m — , (iii) minimum shareholders' equity of $543.6 million, (iv) a minimum asset coverage ra
- $25,000,000 — aggregate principal amount of at least $25,000,000, certain judgments and orders, and cert
Filing Documents
- tm2424835d1_8k.htm (8-K) — 34KB
- tm2424835d1_ex10-1.htm (EX-10.1) — 431KB
- 0001104659-24-106288.txt ( ) — 724KB
- cion-20240930.xsd (EX-101.SCH) — 3KB
- cion-20240930_lab.xml (EX-101.LAB) — 33KB
- cion-20240930_pre.xml (EX-101.PRE) — 22KB
- tm2424835d1_8k_htm.xml (XML) — 4KB
01. Entry Into a Material Definitive
Item 1.01. Entry Into a Material Definitive Agreement. On September 30, 2024, CON Investment Corporation ("CION") entered into an Unsecured Term Loan Facility Agreement (the "Term Loan Agreement") with an Israeli institutional investor, as lender, which provides for an unsecured term loan to CION in an aggregate principal amount of $30 million (the "2024 Term Loan"). After the deduction of fees and other financing expenses, CION received net borrowings of approximately $29.4 million less customary legal fees and other expenses, which CION intends to use for working capital and other general corporate purposes . Advances under the 2024 Term Loan bear interest at a floating rate equal to the three-month Secured Overnight Financing Rate ("SOFR"), plus a credit spread of 3.80% per year and subject to a 4.0% SOFR floor, payable quarterly in arrears. Advances under the 2024 Term Loan mature on September 30, 2027. CION has the right to, at its option, prepay all or any portion of advances then outstanding together with a prepayment fee equal to the higher of (i) zero, or (ii) the discounted present value of all remaining interest payments that would have been paid by CION through the maturity date with respect to the principal amount of such advance that is to be prepaid or becomes due and payable pursuant to the Term Loan Agreement. The discounted present value portion of the prepayment fee is calculated by applying a discount rate on the same periodic basis as that on which interest on advances is payable equal to the three-month SOFR plus 2.00%. Advances under the 2024 Term Loan are general unsecured obligations of CION that rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by CION, rank effectively junior to any of CION's secured indebtedness (including unsecured indebtedness that CION later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future in
03. Creation of a Direct Financial Obligation
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits. 10.1 Unsecured Term Loan Facility Agreement, dated as of September 30, 2024, by and between CON Investment Corporation and an Israeli institutional investor. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CON Investment Corporation Date: October 4, 2024 By: /s/ Michael A. Reisner Co-Chief Executive Officer EXHIBIT LIST EXHIBIT NUMBER DESCRIPTION 10.1 Unsecured Term Loan Facility Agreement, dated as of September 30, 2024, by and between CON Investment Corporation and an Israeli institutional investor. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).