UNLOCK THE POWER OF THE VAULT

CION Investment Corporation Reduces Sales Load

January 6, 2017

newsalert

CION Investment Corporation Reduces Sales Load

January 6, 2017 | by James Sprow | Blue Vault

logo_cion-investments-01-2

CION Investment Corporation (CIC) announced on January 3, 2017, a reduction in the sales load for their continuous public offering of common stock from 10% to 5% and a reduction in the dealer manager fee from 3% to 2%. The amended prospectus also adjusted the public offering price from $10.10 per share to $9.57 per share as a result of the decreases in selling commissions and dealer-manager fees, in order to maintain the net offering price of $9.09 per share (net of selling commissions and dealer manager fees).

CION Investment Corporation commenced operations on December 17, 2012 and is a BDC, or business development company with a portfolio comprised primarily of investments in senior secured debt, including first lien loans, second lien loans and other loans and securities. Their 10-Q for Q3 2016 showed $1.22 billion in total assets. The Company focuses primarily on the senior secured debt of private and thinly traded U.S. middle-market companies, which it defines as companies that generally possess annual EBITDA of $50 million or less, with experienced management teams, significant free cash flow, strong competitive positions and potential for growth.

According to Mark Gatto at CIC, “Based upon insights from varied influential members of our selling group, including senior broker-dealer executives, due diligence officers and leading producers we determined that the time was right to adjust CIC’s compensation structure to more closely reflect current market realities and to better align compensation with the interests of investors.”

The Company also maintained the amount of weekly cash distributions payable to shareholders of $0.014067 per share resulting in an annual distribution yield of 7.65% based on the $9.57 per share public offering price.

The adjustments became effective on the Company’s January 4, 2017 weekly closing and will first be applied to subscriptions received from December 28, 2016 through January 3, 2017.

 

didyouknow_sponsorfocus-green

To learn more about CION Investment Group, please visit their Sponsor Focus page located here.

Print Friendly, PDF & Email
Go Back
John E. Moriarty, ChFC
December 2015
February 3, 2016

I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture.  For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments.  Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients.  I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.