Cion Investment Corp

CION Investment Corporation has repaid in full $114.8 million in aggregate principal amount of its public Israel Series A Unsecured Notes due 2026 and terminated its JPMorgan credit facility, while closing a strategic joint venture. The Series A Notes, listed on the Tel Aviv Stock Exchange, were repaid at par plus accrued and unpaid interest on August 31, 2026, and its wholly-owned financing subsidiary 34th Street Funding, LLC repaid in full approximately $200 million of outstanding advances under the JPM Credit Facility with JPMorgan Chase Bank, National Association on September 25, 2026, with all security interests on the subsidiary's assets released. Separately, on September 17, 2026, the company closed a strategic joint venture with certain institutional investors to form Senior Loan Fund Partners, LLC, capitalized with $125 million in senior secured notes issued by the joint venture and $59.7 million in membership interests, with combined proceeds used to acquire a portfolio of 20 senior secured first lien loans from CION with an aggregate par of approximately $180.3 million and an aggregate fair value of $180.0 million, an implied purchase price of 99.8% of par. After giving effect to these transactions, CION's pro-forma estimated net leverage as of June 30, 2026 would have decreased to approximately 1.35x. Co-Chief Executive Officer Michael A. Reisner said the company preserved and allocated cash to implement the de-leveraging plan presented to shareholders during its second quarter earnings conference call, executed within its target date of September 30, 2026.

CION Investment Corporation shares jumped 16.9% after the company reported second-quarter 2026 net investment income of 29 cents per share, beating the Zacks Consensus Estimate of 27 cents. Net investment income was $14.2 million, down 16.2% from the prior-year quarter. Total investment income declined 4.7% year over year to $49.8 million, while operating expenses rose nearly 1% to $35.6 million. The board also increased the share repurchase authorization by $50 million to a total of $130 million.

CION Investment Corporation announced a strategic shift to prioritize share repurchases over new originations, citing significant undervaluation of its stock relative to net asset value. The company increased its buyback program by $15 million to a total of $130 million and expects to be aggressive depending on asset monetizations. Net investment income rose to $0.29 per share, supported by a stable first lien book and avoidance of credit facility penalties. Management highlighted the validation of fair value marks through the sale of over $64 million in portfolio assets at approximately 99% of par to independent third parties. Credit quality improved with no new non-accruals, and the company is targeting a pro forma net leverage ratio of about 1.35x through repayment of Israeli bonds and secured facilities, including a $115 million public Israeli bond due for full repayment by month-end.

Bulldog Investors, LLP, a shareholder owning more than 3% of CION Investment Corporation with 1,716,599 shares, is calling on management to materially expand its share repurchase program. As of July 2, 2026, CION’s stock price stood at $6.39, more than 50% below its last reported net asset value of $13.11. Bulldog believes CION should deploy all its investible cash to repurchase shares and reduce debt, rather than issue new loans, until the discount narrows significantly. If management declines, Bulldog may nominate directors to pursue a transaction to maximize shareholder value, including possibly winding up the company.