CION completes deleveraging campaign: repays $115 million in Israeli bonds and $200 million in bank debt

U.S. investment fund CION has completed a complex financial maneuver, repaying over $314 million in debt, including its entire bond series traded in Tel Aviv, and lowering its net leverage ratio.

Investment fund CION has fully repaid its Series A bonds traded in Tel Aviv, totaling $114.8 million, alongside a credit facility of approximately $200 million from JPMorgan. The move was enabled by establishing a joint venture and selling a $180 million loan portfolio, reducing the company's net leverage to approximately 1.35x.

U.S. investment fund CION Investment Corporation (NYSE: CION), operating as a business development company (BDC), announced the completion of a strategic deleveraging program. The move included the repayment of debt totaling over $314 million, spearheaded by the full repayment of its Series A bonds issued to the public in Israel and traded on the Tel Aviv Stock Exchange.

According to the company's filing, it repaid the entire $114.8 million principal of its Series A bonds (unsecured bonds maturing in 2026). The repayment was executed on August 31, 2026, plus accrued interest, thereby concluding the company's presence with this debt series in the Israeli capital market. Concurrently, a wholly-owned subsidiary, 34th Street Funding, LLC, repaid the remaining balance of loans under a senior secured credit facility provided by JPMorgan Chase Bank. The repayment amounted to approximately $200 million and was completed on September 25, 2026, leading to the release of all collateral pledged for the loan.

Financing via joint venture and asset sale

The funding source for the repayments is a strategic transaction to establish a joint venture that closed on September 17, 2026. The company partnered with several institutional investors to form "Senior Loan Fund Partners, LLC," an entity designed to invest primarily in senior secured first lien loans to U.S. middle-market companies.

The joint venture raised capital by issuing $125 million in secured notes alongside $59.7 million in membership interests. Using these funds, the joint venture acquired a portfolio of 20 senior secured loans from CION. The book value of the loans stood at $180 million, and they were sold at a price reflecting 99.8% of par value. Essentially, CION monetized assets from its balance sheet to generate the cash required to reduce its debt.

The central outcome of these maneuvers is a significant decrease in the company's leverage. CION estimated that on a pro-forma basis as of June 30, 2026, its net leverage ratio (total debt less cash and short-term investments, divided by net assets) would decline to approximately 1.35x.

Michael Reisner, Co-CEO of CION, noted that the move was executed in accordance with the plan presented to investors. "Over the past several months, we have preserved and allocated cash to execute the deleveraging plan we outlined to shareholders on our second-quarter earnings call," he stated. "We are pleased to report that we successfully executed the plan within our self-imposed deadline of September 30, 2026."

CION Investment Corporation is a public business development company that managed approximately $1.8 billion in assets as of the end of June 2026. The company focuses on generating current income and capital appreciation through senior debt investments in U.S. companies.