Financial Reporting - CĪON Investment Corporation will report its financial results for Q4 and full year 2024 on March 13, 2025[4] - The press release regarding the financial results will be available prior to market opening on March 13, 2025[4] Conference Call - The earnings conference call is scheduled for 11 a.m. Eastern Time on the same day[4]

Investment Activity - The company reported a net portfolio activity of $(22,409) thousand for the year ended December 31, 2024, compared to $49,937 thousand for 2023, indicating a significant decrease in investment activity [421]. - The company’s total purchases and drawdowns of senior secured first lien debt increased to $439,038 thousand in 2024 from $340,704 thousand in 2023 [421]. - The number of portfolio companies decreased from 111 in 2023 to 105 in 2024, indicating a consolidation in the investment strategy [422]. Financial Performance - The average annual EBITDA of portfolio companies decreased from $61.7 million in 2023 to $53.6 million in 2024, indicating a decline in the financial performance of its investments [422][424]. - The investment income for the year ended December 31, 2024, was $252,432, slightly up from $251,010 in 2023 [432]. - Net investment income after taxes decreased to $95,860 in 2024 from $105,022 in 2023, primarily due to increased interest expenses [437]. - The gross annual portfolio yield based on the purchase price for 2024 was 10.96%, down from 12.12% in 2023, reflecting a decrease in investment returns [422][424]. Portfolio Composition - As of December 31, 2024, the company's total investments amounted to $1,943,693 thousand, with a fair value of $1,888,688 thousand, while the average annual EBITDA of portfolio companies was $53.6 million [422]. - The company’s investment portfolio as of December 31, 2024, was primarily composed of senior secured first lien debt, accounting for 86.0% of the total portfolio [422]. - The investment portfolio's fair value by industry classification showed a notable increase in the Retail sector to $160,093, up from $135,000 in 2023 [426]. Operating Expenses - The company’s management fees and subordinated incentive fees on income are the primary operating expenses, reflecting the cost structure of the investment advisory agreement [417]. - The operating expenses and income taxes totaled $156,572 in 2024, up from $145,988 in 2023, driven by higher interest expenses [435]. Distributions - The company declared a quarterly base distribution of $0.36 per share for Q1 2025, payable on April 11, 2025 [420]. - Total distributions for the year ended December 31, 2022, were $1.45 per share, totaling $81,575, while for 2023, it increased to $1.61 per share, totaling $87,867, representing a 11% increase year-over-year [464]. - For the year ended December 31, 2024, total distributions are projected to be $1.52 per share, totaling $81,308, indicating a decrease of approximately 5.6% compared to 2023 [464]. Borrowings and Commitments - As of March 5, 2025, aggregate outstanding borrowings under the JPM Credit Facility increased from $325,000 to $345,000 [465]. - The company had $125,000 in aggregate principal amount of 2026 Notes outstanding as of March 5, 2025, with no unfunded principal amount [467]. - Unfunded commitments as of December 31, 2024, were $70,681, an increase from $47,349 in 2023 [426]. Interest Rate Sensitivity - As of December 31, 2024, 81.1% of the company's investments paid variable interest rates, indicating a significant exposure to interest rate fluctuations [493]. - The interest rate sensitivity analysis shows that a 300 basis point increase in interest rates could result in a 20.5% increase in net interest income, while a 300 basis point decrease could lead to a 19.0% decrease [495]. - The company expects that a rise in interest rates could lead to a substantial increase in net investment income, particularly due to the majority of variable rate investments [493]. Market Conditions - Market volatility has been exacerbated by geopolitical events, rising energy prices, and uncertainties related to the 2024 U.S. elections, affecting overall economic conditions [499]. - The U.S. inflation rate remains elevated, with potential persistence in the near to medium-term, which could impact the company's portfolio companies' profit margins [499]. - Persistent inflationary pressures and foreign currency exchange volatility could affect the company's portfolio companies' respective profit margins [499].

Investment Strategy - The analyst specializes in identifying high-quality dividend stocks and other assets with long-term growth potential, focusing on a hybrid system that balances growth and income [1] - The strategy includes a mix of classic dividend growth stocks, Business Development Companies (BDCs), Real Estate Investment Trusts (REITs), and Closed End Funds to enhance investment income while maintaining total returns comparable to the S&P 500 [1] Analyst's Background - The analyst has over 10 years of experience in investing and financial analysis, with a focus on uncovering lucrative market opportunities [1] - The analyst emphasizes the importance of a diversified portfolio that includes both income-generating and growth-oriented assets [1]

Group 1 - The stock of CION Investment Corporation (CION) is experiencing significant attention due to high implied volatility in the options market, particularly the March 21, 2025 $7.50 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in CION's stock price, potentially due to an upcoming event [2] - CION Investment currently holds a Zacks Rank 2 (Buy) in the Financial - SBIC & Commercial Industry, ranking in the top 34% of the Zacks Industry Rank, although earnings estimates have slightly decreased from 36 cents to 34 cents per share [3] Group 2 - The high implied volatility surrounding CION Investment may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]

Group 1 - The current environment of rate cuts by the Fed is leading income-focused investors to seek higher yields, particularly in ultra-safe Treasury Bills, money market accounts, and CDs [1] - There is a growing interest in high-quality and reliable dividend growth investments, which are aimed at building a stable and growing income for investors [2] - The focus is on investments that are leaders within their industry to ensure stability and long-term wealth creation, along with strategies for writing options to enhance income [2]

Financial Reporting - CĪON Investment Corporation will report its financial results for Q3 2024 on November 7, 2024, before market opening[3] - An earnings conference call to discuss the financial results is scheduled for 11 a.m. Eastern Time on the same day[3] - The press release regarding the financial results is attached as Exhibit 99.1[5]

Core Insights - Roberts Berzins has over a decade of experience in financial management, focusing on helping top-tier corporates shape financial strategies and execute large-scale financings [1] - Significant efforts have been made to institutionalize the REIT framework in Latvia, aimed at boosting the liquidity of pan-Baltic capital markets [1] - Contributions include the development of national SOE financing guidelines and frameworks for channeling private capital into affordable housing stock [1] - Berzins holds a CFA Charter and an ESG investing certificate, and has experience from an internship at the Chicago Board of Trade [1] - Actively involved in thought-leadership activities to support the development of pan-Baltic capital markets [1]

Financial Data and Key Metrics Changes - CION reported quarterly net investment income of $0.40 per share, down from $0.43 per share in the previous quarter, reflecting a decrease of $1.3 million [36] - Total investment income for Q3 was $59.6 million, compared to $61.4 million in Q2, a decrease of $1.8 million primarily due to lower dividend income [37] - Net asset value (NAV) per share decreased to $15.73 from $16.08, a decline of 2.2% attributed to mark-to-market price declines in the portfolio [41] Business Line Data and Key Metrics Changes - The weighted average yield on debt and other income-producing investments at amortized costs was 12.2%, down from 12.8% in the previous quarter [40] - The company made $97 million in investment commitments during Q3, with $78 million funded, indicating a focus on both new and existing portfolio companies [26] - Total repayments for the quarter amounted to $154 million, with nearly 40% occurring on the last day of the quarter [27] Market Data and Key Metrics Changes - The market environment remained highly competitive, with trends affecting deal volumes, pricing, and lender protections continuing from previous quarters [13] - The company noted a rebuilding of its deal pipeline following a typical late summer slowdown, indicating a thaw in the M&A market [13] Company Strategy and Development Direction - CION is focused on maintaining a conservative outlook while managing its balance sheet to withstand potential market volatility [6][7] - The company aims to remain selective in deploying new transactions, emphasizing first-line investing at the top of the capital structure [18] - A successful public baby bond offering was completed, which was more than three times oversubscribed, marking a significant step in the company's evolution as a public entity [8] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious but optimistic view on navigating a competitive credit environment and potential market volatility [5][6] - The company anticipates continued volatility in the marks of its equity investments, particularly related to David's Bridal, due to its size and seasonal operations [30] - Management highlighted the importance of educating investors on the company's differentiated platform to generate attractive risk-adjusted returns [51] Other Important Information - The company repurchased approximately 166,000 shares at an average price of $12.09 during Q3, renewing its share repurchase authorization through 2025 [12] - The current debt mix is approximately 51% in senior-secured bank debt and 49% in unsecured loans, with about 90% in floating rate [43] Q&A Session Summary Question: What is the outlook for the company's investment strategy in the current market? - Management indicated a focus on being highly selective with new investments due to competitive market conditions and emphasized the importance of maintaining a flexible balance sheet to capitalize on opportunities [14][18] Question: How does the company plan to address the volatility in its equity investments? - Management acknowledged the expected volatility in the marks of David's Bridal and other equity investments, stating that they will continue to monitor these closely [30][33] Question: What are the expectations for future distributions to shareholders? - The company declared a fourth-quarter base distribution of $0.36 per share, consistent with the previous quarter, indicating a stable distribution policy [48]

| --- | --- | --- | --- | |------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | CION Investment Corporation | | | | | Third Quarter 2024 | | | | | Earnings Presentation | | | | Disclosures and Forward-Looking Statements The information contained in this earnings presentation should be viewed in conjunction with the earnings conference call of CION Investment Corporation (NYSE: CION) ("CION" or the "Company") held on Thursday, November 7, 2024 as well as ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-54755 CĪON Investment Corporation (Exact name of registrant as specified in its charter) | --- | --- | --- | |--- ...