CION Investment Corp Forms Joint Venture to Sell Senior Secured Loans

What Happened

• On September 17, 2026, CION Investment Corp filed an 8‑K announcing it entered into an Amended and Restated LLC Agreement to form Senior Loan Fund Partners, LLC (the Joint Venture) with certain institutional investors.
• The Joint Venture acquired a portfolio of 20 senior secured first‑lien loans from CION (aggregate par ≈ $180.3M; aggregate fair value ≈ $180.0M), for an implied purchase price of 99.8% of par. CION received net proceeds of approximately $132.3M.

Key Details

• Capital structure: $125.0M of senior secured notes issued to investors (priced at 98.25%) and $59.7M of LLC membership interests (CION holds 80% common, investors hold 20% preferred).
• Preferred LLC Interests: 11.50% cumulative annual dividend and priority over common LLC Interest distributions.
• Notes: interest at SOFR + 4.75% (1.00% SOFR floor), 7‑year final maturity, rated investment grade; include a 100% cash‑flow sweep after the two‑year investment period to repay principal.
• Governance & services: four‑member Board (CION and Investors each appoint two managers); all material actions require unanimous approval of managers present (including at least one appointee from each side). CION Investment Management, LLC will administer portfolio management, valuation, accounting and tax services.

Why It Matters

• The transaction provides CION with immediate liquidity (~$132.3M) that it will use to repay part of its outstanding debt and for general corporate purposes, reducing near‑term leverage pressure.
• Investors receive senior note exposure and a preferred equity slice with a fixed preferred dividend, while CION retains the majority common economic interest (80%), so CION still has meaningful ongoing exposure to the portfolio’s performance.
• Note protections (investment‑grade rating, cash‑flow sweep, two‑year investment period) and unanimous board vote requirements give investors governance and cash‑flow priority features that affect risk and return for both CION and outside holders.