CῙON Investment Corporation Announces Results of Tender Offer
January 3, 2020
On November 15, 2019, CĪON Investment Corporation (“the Company”) filed a Tender Offer Statement with the SEC to purchase up to the lesser of (i) 4,280,266.28 shares of its issued and outstanding common stock, par value $0.001 per share (the “Shares”) (which number represents 3.75% of the weighted average number of Shares outstanding for the calendar year ended December 31, 2018) and (ii) the number of Shares the Company can repurchase with the proceeds it has received from the issuance of common stock under the Company’s distribution reinvestment plan, as amended and restated.
The Offer terminated at 5:00 P.M., Eastern Time, on December 20, 2019, and a total of 6,361,332.410 Shares were validly tendered and not withdrawn pursuant to the Offer as of such date, an amount that exceeded the maximum number of Shares the Company offered to purchase pursuant to the Offer. In accordance with the terms of the Offer, the Company purchased a total of 1,088,882.672 Shares validly tendered and not withdrawn on a pro rata basis at a price equal to $8.217 per Share (an amount equal to the estimated net asset value per share of the Company’s common stock on December 26, 2019) for an aggregate purchase price of $8,947,342.24 (an amount equal to the proceeds the Company received from the issuance of Shares under its distribution reinvestment plan). Approximately 17.1% of the number of Shares tendered by each shareholder who participated in the Offer was repurchased by the Company.
CĪON Investment Corporation is an externally managed, non-diversified closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act.
CĪON Investment Corporation’s investment objective is to generate current income and, to a lesser extent, capital appreciation for investors. Its portfolio is comprised primarily of investments in senior secured debt, including first lien loans, second lien loans, and unitranche loans, and, to a lesser extent, collateralized securities, structured products and other similar securities, and equity, of private and thinly traded U.S. middle-market companies. In connection with its debt investments, it may receive equity interests such as warrants or options as additional consideration. The Company may also purchase equity interests in the form of common or preferred stock in target companies, either in conjunction with one of its debt investments or through a co-investment with a financial sponsor.
CĪON Investment Corporation is managed by CIM, its affiliate and a registered investment adviser. Pursuant to an investment advisory agreement with the Company, CIM oversees the management of the Company’s activities and is responsible for making investment decisions for its portfolio. On November 5, 2019, the board of directors, including a majority of directors who are not interested persons, approved the renewal of the investment advisory agreement with CIM for a period of twelve months commencing December 17, 2019.
As of September 30, 2019, the Company had total assets of $1.806 billion. During the nine months ended September 30, 2019, and 2018, the Company sold 3,825,347 and 5,214,461 shares, respectively, at an average price per share of $8.72 and $9.29, respectively.
Since commencing its initial continuous public offering on July 2, 2012, and through September 30, 2019, the Company sold 113,381,782 shares of common stock for net proceeds of approximately $1,155,287,000 at an average price per share of $10.19. The net proceeds include gross proceeds received from reinvested shareholder distributions of approximately $189,713,000, for which the Company issued 21,025,378 shares of common stock and gross proceeds paid for shares of common stock tendered for the repurchase of approximately $189,713,000, for which the Company repurchased 21,135,341 shares of common stock.
Source: SEC
