CION Investment Corporation Reduces Sales Load
January 6, 2017 | by James Sprow | Blue Vault
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.
To learn more about CION Investment Group, please visit their Sponsor Focus page located here.