The board of CION Investment Corporation, a publicly registered non-traded business development company that manages approximately $1.6 billion in assets, has suspended the company’s share repurchase program beginning with the third quarter of 2021.
The suspension is being suspended in anticipation of a potential listing and “the concurrent enhanced liquidity the listing is expected to provide,” the company said in a filing with the Securities and Exchange Commission.
The DI Wire reported in April that CION plans to list its shares on a national securities exchange, which is now anticipated to occur within the next two to nine months, subject to market conditions. The share repurchase program will ultimately terminate once the shares are listed.
The board also intends to declare a special cash distribution to shareholders during the fourth quarter of 2021, although the amount was not disclosed in the filing.
CION Investment Corporation focuses primarily on senior secured loans to U.S. middle-market companies. Since launching in July 2012, the company raised approximately $1.2 billion in investor equity before closing its follow-on offering in January 2019. CION’s investment portfolio had a fair value of $1.62 billion, as of March 31, 2021.