CION Ares Diversified Credit Fund Boosts Credit Facility 50% to $450 Million

CION Ares Diversified Credit Fund, a $4.7 billion interval fund, increased a revolving credit facility by 50%, to $450 million, and extended the maturity by nearly two years.

The interval fund amended its State Street Credit Facility to raise the total commitment from $300 million to $450 million, extend the stated maturity from Aug. 31, 2026, to July 31, 2028, and increase the interest-rate spread from the secured overnight financing rate plus 1.25% to SOFR plus 1.35%. The amendment also modified certain concentration limits governing the facility.

As of June 30, the fund had $231.9 million outstanding under the facility, leaving about $218 million of undrawn capacity under the expanded $450 million cap. The facility carries a 0.25% commitment fee through Feb. 22, 2027, after which unused capacity is charged 0.25% or 0.30% annually depending on how heavily the line is drawn. Borrowings remain subject to asset-coverage covenants requiring the fund to maintain at least a 2-to-1 ratio of total assets to senior debt, and at least 3-to-1 against outstanding and requested loans specifically.

CION Ares Diversified Credit Fund, a joint venture between CION Investments and Ares Management offering exposure to global liquid and illiquid credit, reported net assets of approximately $4.7 billion and total assets of about $7.5 billion as of June 30. The fund is sold through independent broker-dealers, registered investment advisers, and wirehouses across seven share classes.

The fund invests across senior secured loans, high-yield bonds, structured credit, and other credit strategies globally, and targets income and diversification away from public markets for individual investors, according to CION Ares.

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