CION Investment Corporation Prices Public Offering of Unsecured Notes Due 2031

CION Investment Corporation Secures $125 Million in Unsecured Notes Offering to Bolster Senior Secured Credit Facilities

CION Investment Corporation (NYSE: CION) announced the pricing of its underwritten public offering of $125 million in aggregate principal amount of unsecured notes due 2031. This strategic move is poised to enhance the company’s financial flexibility, with net proceeds estimated at approximately $121.25 million after accounting for underwriting discounts, commissions, and anticipated offering expenses. The offering is slated for closing on February 9, 2026, pending the satisfaction of standard closing conditions.

The newly issued notes carry a coupon rate of 7.50% per annum, payable quarterly, with the inaugural interest payment scheduled for March 30, 2026. These notes will mature on March 31, 2031, and CION retains the option to redeem them in whole or in part, commencing March 31, 2028. The notes are expected to be listed on the New York Stock Exchange within 30 days of their issuance, providing a liquid secondary market for investors.

The primary use of the net proceeds from this offering will be to reduce outstanding borrowings under CION’s existing senior secured credit facilities. This deleveraging strategy is a prudent step for a business development company (BDC) like CION, which primarily invests in senior secured loans to U.S. middle-market companies. By strengthening its credit profile and reducing its reliance on secured debt, CION can potentially lower its overall cost of capital and enhance its borrowing capacity for future investments.

Keefe, Bruyette & Woods, Inc. (A Stifel Company), B. Riley Securities, Inc., Lucid Capital Markets, LLC, and Oppenheimer & Co. Inc. are acting as the joint book-running managers for this offering.

Investors considering this offering are urged to thoroughly review the preliminary prospectus supplement, dated February 2, 2026, and the accompanying base prospectus, dated June 18, 2024. These documents, filed with the Securities and Exchange Commission (SEC), contain crucial details regarding CION’s investment objectives, the inherent risks, and associated charges and expenses. A shelf registration statement related to these securities has been declared effective by the SEC, enabling the company to efficiently access capital markets.

**About CION Investment Corporation**

CION Investment Corporation operates as a publicly listed business development company with a robust portfolio, boasting approximately $1.9 billion in total assets as of September 30, 2025. The company’s investment strategy is geared towards generating current income and, to a lesser extent, capital appreciation, with a strategic focus on senior secured loans extended to U.S. middle-market businesses. CION Investment Management, LLC, a registered investment adviser and an affiliate of CION, provides advisory services to the company.

**Navigating the BDC Landscape: A Deeper Dive**

The unsecured notes offering by CION Investment Corporation highlights several key financial and strategic considerations relevant to the business development company (BDC) sector. BDCs play a vital role in the U.S. financial ecosystem by providing capital to middle-market companies that may have difficulty accessing traditional bank financing. However, their operations are often characterized by higher leverage and a focus on income generation, which can introduce significant volatility.

By issuing unsecured notes, CION is diversifying its funding sources beyond its senior secured credit facilities. While unsecured debt typically carries a higher interest rate than secured debt due to the lack of specific collateral, it offers greater flexibility. This issuance allows CION to manage its balance sheet more effectively and potentially improve its debt-to-equity ratio, a key metric for BDCs. The 7.50% coupon rate, while substantial, reflects current market conditions and the risk profile associated with unsecured debt.

The strategic deployment of proceeds to pay down existing senior secured credit facilities is a move that can be interpreted in several ways. Firstly, it could signal a proactive approach to managing interest expenses, especially if the cost of the new unsecured notes is lower than the average cost of its existing senior secured debt. Secondly, it may be a precursor to future, larger secured debt issuances or an effort to strengthen its credit rating, which could unlock more favorable terms on future borrowings.

The involvement of multiple joint book-running managers underscores the competitive nature of the BDC capital markets and the significant underwriting capabilities required for such offerings. The inclusion of firms like Keefe, Bruyette & Woods, known for its financial services expertise, alongside other established players, suggests a well-orchestrated distribution strategy aimed at reaching a broad base of institutional and retail investors.

Furthermore, the mention of EDGAR and the requirement to consult SEC filings are critical components of investor due diligence. The SEC’s EDGAR database provides a wealth of information, allowing investors to scrutinize a company’s financial health, operational performance, and risk factors. For BDCs, understanding the specifics of their loan portfolios, dividend policies, and management’s track record is paramount. The preliminary prospectus supplement and base prospectus will offer granular details on CION’s asset quality, net asset value per share, and its exposure to various industry sectors and economic cycles.

The “Forward-Looking Statements” section is a standard but crucial disclaimer. It highlights the inherent uncertainties in forecasting future performance, particularly in dynamic sectors like private credit. Investors must differentiate between management’s strategic vision and the inherent risks, which can be influenced by macroeconomic factors such as interest rate fluctuations, economic downturns, and regulatory changes impacting the financial industry. CION’s commitment to updating investors on material developments, as required by law, ensures a degree of transparency in an otherwise complex and often opaque market.