CION Investment Corporation Suspends Distributions
March 26, 2020 | Luke Schmidt | Blue Vault
On March 19, 2020, CION Investment Corporation (“CION”) determined to change the timing of declaring distributions to shareholders from quarterly to monthly and to temporarily suspend the payment of distributions to shareholders commencing with the month ending April 30, 2020. Distributions for future months will be reevaluated by management and the board of directors of CION based on the circumstances and expectations at the time of consideration.
The board of directors also determined to temporarily suspend CION’s share repurchase program commencing with the second quarter of 2020. Share repurchases for the first quarter of 2020, which expired on March 20, 2020, will be accepted by CION and paid to tendering shareholders. Similar to distributions, share repurchases for future quarters will be reevaluated based on the circumstances and expectations at the time of consideration.
Over the past three years, CION has consistently paid a weekly distribution in the amount of $0.014067 per share, equating to a quarterly distribution of $0.1829 per and an annualized distribution of $0.7316 per share. Based on CION’s last public offering price of $9.40 (the public offering closed in January 2019), the annualized distribution yield was 7.78%. Based on CION’s most recently published NAV of $8.40 as of December 31, 2019, the annualized distribution yield was 8.71%
CION, a nontraded business development company, became effective in July of 2012. Since inception and through the closing of its public offering in January of 2019, the Company raised cumulative capital of approximately $1.3 billion. CION reported total assets of approximately $1.81 billion and total investments of $1.77 billion as of December 31, 2019. The Company reported a total return of 5.55% for 2019, up from the 2018 total return of 2.98%.
Source: SEC, Blue Vault
