Financial Data and Key Metrics - Total investment income for Q1 was $73.6 million, a 23% increase from $60 million in Q4, driven by restructuring activities, make-whole payments, and prepayment premiums [19] - Net investment income for Q1 was $32.6 million or $0.60 per share, up from $21.8 million or $0.40 per share in Q4, a $10.8 million increase [38] - NAV per share decreased by $0.18 or 1.1% to $16.05 at the end of Q1, primarily due to price declines in the portfolio, partially offset by share repurchases [12] - Total assets stood at $2 billion, with total equity of $863 million and total debt of $1.07 billion, resulting in a net debt-to-equity ratio of 1.03x, down from 1.1x in Q4 [20] - The weighted average yield on debt and income-producing investments decreased by 48 basis points to 12.9% in Q1 [39] Business Line Data and Key Metrics - The company made $125 million in new investment commitments across five new and seven existing portfolio companies, with $107 million funded [7] - Approximately 60% of annual PIK income is derived from highly structured situations, such as litigation finance investments, with over 80% of PIK investments risk-rated one or two [6] - The portfolio remains defensive, with 84% in first lien investments and 86% in senior secured investments, while 99% of the portfolio is risk-rated three or better [37] - Risk-rated three investments increased from 6.5% to 10.4% of the portfolio, reflecting higher engagement or increased risk since initial purchase [37] Market Data and Key Metrics - The company completed first lien investments in new portfolio companies with a weighted average coupon of SOFR plus 6.3% [15] - Sales and repayments totaled $207 million in Q1, primarily from full repayments of debt investments in Ampac, Services Compression, Pentec, and R.R. Donnelley [36] - Non-accruals declined slightly from 0.89% of fair value at the end of Q4 to 0.86% at the end of Q1 [16] Company Strategy and Industry Competition - The company focuses on first lien investments at the top of the capital structure, avoiding riskier mezzanine and equity co-investments, while utilizing yield-enhancing provisions like PIK features and call protection [14] - The company remains selective with new investments, focusing on middle-market companies with $20 million to $50 million of annual EBITDA, avoiding larger, more commoditized deals [66] - The company continues to identify opportunities in the syndicated loan market, acquiring discounted first lien loans and playing active roles in refinancing or restructuring processes [70] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong financial results driven by investment activity and yield-enhancing provisions, with a focus on maintaining a defensive portfolio [10] - The company expects active repayment trends to continue in 2024, fueled by strong cash inflows into direct and syndicated loan funds [16] - Management remains optimistic about credit performance, with only 1% of the portfolio risk-rated four or five, and borrowers showing stable EBITDA trends [60] - The company is actively working to extend credit facilities for an additional two to three years, aiming to diversify its debt mix and expand lending partners [22] Other Important Information - The company declared a Q2 base distribution of $0.36 per share, a 6% increase from Q1, marking the fourth increase since its listing in October 2021 [23] - The company repurchased approximately 424,000 shares at an average price of $11 per share, totaling $4.7 million, reflecting confidence in the stock's undervaluation [63] - The company plans to declare a midyear supplemental distribution in June, payable on July 12 [42] Q&A Session Summary Question: Quantify revenue from transaction and restructuring fees in Q1 that may not recur in Q2 - Answer: Approximately $7 million to $8 million in transaction and restructuring income was realized in Q1 [45] Question: Plans for extending the $30 million unsecured term loan maturing in Q3 and preference for fixed or floating rate funding - Answer: The company is evaluating opportunities in the debt capital markets but is currently focused on extending existing credit facilities [46] Question: Explanation of upgrades and downgrades in the internal risk rating scale - Answer: Investments are upgraded to risk rating one only when there is knowledge of an imminent loan exit, with most investments remaining at rating two [47]

CĪON Investment Corporation (Exact name of registrant as specified in its charter) Common stock, par value $0.001 per share CION The New York Stock Exchange Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ ...

3D_generator CION Investment (NYSE:CION) performed exceptionally in 2023 given its 32% total return compared to S&P 500 return of 24%. However, 2024 could be a challenging year for the business development company because its net investment income is likely to drop year over year. Moreover, the significant amount of debt maturities in 2024 and 2025 could also negatively impact the company's ability to invest in growth opportunities. Therefore, I maintain my hold rating on CION stock. Dividend Is Stable But ...

CION Investment Corporation (NYSE:CION) Q4 2023 Results Conference Call March 14, 2024 11:00 AM ET Company Participants Michael Reisner - Co-Chief Executive Officer Gregg Bresner - President and Chief Investment Officer Keith Franz - Chief Financial Officer Conference Call Participants Erik Zwick - Hovde Group Steven Martin - Slater Capital Management Operator Good morning. And welcome to CION Investment Corporation’s Fourth Quarter and Year End 2023 Earnings Conference Call. An earning press release was di ...

Senior Securities Compliance Policies and Procedures Election to be Taxed as a Regulated Investment Company We elected to be treated as a RIC under Subchapter M of the Code. As a RIC, we generally will not be subject to corporate-level federal income taxes on any income that we distribute to our shareholders from our tax earnings and profits. To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements (as described below). In addition, in order to m ...

NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) announced today that it will report its financial results for the fourth quarter and full year ended December 31, 2023 on Thursday, March 14, 2024, prior to the opening of the financial markets. CION will discuss those results in an earnings conference call at 11:00 a.m. ET that same day. Participant Dial-in Numbers: Domestic (Toll-Free): 877-484-6065 International (Toll): +1 201-689-8846 All participants are asked to dial in ap ...

Richard Drury Main Street Capital (MAIN) and CION Investment Corporation (CION) are both high-yielding Business Development Companies (BIZD). MAIN, with its impressive track record of crushing both the broader BDC sector as well as the S&P 500 (SPY) over the long term, is a leading blue-chip BDC: Data by YCharts Meanwhile, CION, a relatively newer entrant to the publicly traded BDC space, has been making strides with its strategic investments and strong dividend yield. Moreover, with its steep discount to ...

Financial Data and Key Metrics Changes - The company reported a strong third quarter with net income of $0.87 per share, an increase of 70.6% quarter-over-quarter and 45% year-over-year [21] - Net investment income was $30 million or $0.55 per share, up from $23.4 million or $0.43 per share in the previous quarter, reflecting a $6.6 million increase [47] - Total investment income for Q3 was $67.5 million, a 15% increase from $58.5 million in the second quarter [47] - The net asset value (NAV) increased by $0.49 per share to $15.80, a 3.2% increase quarter-over-quarter [49] Business Line Data and Key Metrics Changes - The portfolio's non-accrual rate fell to 1.03% of fair value, down from 1.69% in the previous quarter, indicating improved credit performance [23] - The company maintained 87.8% of its portfolio in senior secured loans and 11.3% in equity positions, focusing on high-quality earnings [27] Market Data and Key Metrics Changes - The company successfully issued $33 million of additional floating rate Series A unsecured notes and closed a $100 million unsecured floating rate note with institutional investors [25][51] - The weighted average cost of debt capital was approximately 8.3% [34] Company Strategy and Development Direction - The company aims to increase its leverage towards a net leverage target of 1.25 times while remaining cautious about market conditions [7] - The focus remains on lending to middle-market companies, with a median EBITDA of $33.7 million, emphasizing a conservative approach to investment [11][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to provide solid returns despite current market conditions, supported by a robust deal pipeline and a conservative balance sheet [36][38] - The company remains selective with new investments, particularly cautious regarding the U.S. consumer environment [40] Other Important Information - The company declared a fourth quarter base distribution of $0.34 per share and a supplemental distribution of $0.05 per share [35][53] - The company has repurchased approximately 168,023 shares at an average price of $10.71 per share during the quarter [8] Q&A Session Questions and Answers Question: What is the company's approach to achieving its leverage target of 1.25 times? - Management indicated a cautious approach to obtaining additional leverage, considering market rates and the mix between secured and unsecured debt [56] Question: Can you explain the decline in median EBITDA and its implications? - Management clarified that the decline in median EBITDA is more reflective of portfolio changes rather than a decrease in earnings, with organic EBITDA growth observed in existing portfolio companies [58][59]

During the quarter, the Company funded new investment commitments of $93 million, funded previously unfunded commitments of $10 million, and had sales and repayments totaling $96 million, resulting in a net increase to the Company's funded portfolio of $7 million; Q1 2023 $958 1.17x On November 8, 2023, the Company completed a private offering pursuant to which the Company issued $100 million of its unsecured notes due 2027, which bear interest at a floating rate equal to the three-month SOFR plus a credit ...

Indemnifications 38 The Company's board of directors ratified distributions for 5 and 4 record dates during the year ended December 31, 2022 and the nine months ended September 30, 2023, respectively. CĪON Investment Corporation (Exact name of registrant as specified in its charter) If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a ...