Financial Data and Key Metrics Changes - Net investment income was $23.4 million or $0.43 per share, a decrease from $29.9 million or $0.54 in the first quarter, representing a year-over-year increase of 21.4% [8][54] - The net asset value (NAV) increased by $0.20 per share to $15.31 from $15.11 at the end of the previous quarter, attributed to out-earning distributions and share repurchase programs [9][64] - Total investment income for the quarter was $58.5 million, down from $65 million in Q1, while total operating expenses remained consistent at $35.1 million [54] Business Line Data and Key Metrics Changes - The weighted average leverage of portfolio companies decreased to 4.83 times from 5.1 times in Q1, with interest coverage remaining stable at two times [4] - The investment portfolio totaled $1.69 billion, with 89.3% in senior secured investments and 87% in first lien investments [20] - Non-accruals decreased from 3.5% of fair value to 1.7%, with several companies successfully removed from non-accrual status [52][63] Market Data and Key Metrics Changes - The company observed a 100 to 150 basis point increase in spreads for new direct investments year-over-year [6] - The current debt mix is 71% in senior secured and 29% in unsecured, with 85% of the debt being floating rate [55] - The company maintained over $110 million in cash and short-term investments, with an additional $125 million available under credit facilities [54] Company Strategy and Development Direction - The company remains highly selective with new investments, particularly cautious regarding the US consumer market [5] - The strategy focuses on diversifying the debt mix between secured and unsecured while expanding the syndicate of lending partners [10] - The company aims to increase leverage to a target of 1.25 times while maintaining a conservative approach [44] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious view of the economy, indicating that despite media reports of reduced recession likelihood, it is not the time to take unnecessary risks [2][3] - The company anticipates continued strong liquidity and a robust investment pipeline, with expectations for new investment opportunities primarily in the second half of the year [18][59] - Management highlighted the importance of monitoring economic conditions over the next six to twelve months before committing to permanent dividend increases [13] Other Important Information - A supplemental dividend of $0.05 per share was announced for the next two quarters, reflecting the company's strong liquidity position [71] - The company successfully restructured David's Bridal out of bankruptcy, becoming a secured lender and majority equity owner [7] Q&A Session Summary Question: What is the outlook for EagleTree? - Management clarified that the nature of the EagleTree portfolio leads to lumpy distributions, and there is no substantive improvement but rather a reflection of the portfolio's structure [26][33] Question: What factors drove the improvement in internal ratings? - The improvement was primarily due to the successful completion of transactions for previously challenged names, leading to changes in risk ratings [77] Question: What is the current investment pipeline? - The pipeline is expected to be largely funded by the end of August, with a mix of new investment opportunities and add-ons to existing portfolio companies [75][59]

| --- | --- | --- | --- | |------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | CION Investment Corporation | | | | | Second Quarter 2023 | | | | | Earnings Presentation | | | | 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 August 9, 2023 as well as the Company's Quarterly Report on Form 10-Q for the q ...

Debt and Financing - As of June 30, 2023, the aggregate principal amount of 2026 Notes outstanding was $125,000[196] - The Second Amended JPM Credit Facility increased the aggregate principal amount available for borrowings from $275,000 to $700,000[189] - Under the Second Amended JPM Credit Facility, the maturity date was extended to May 15, 2023[189] - The financing fee under the UBS Facility was equal to the three-month LIBOR plus a spread of up to 3.90% per year[202] - The financing fee payable to UBS was revised to a floating rate of 3.525% per year until November 19, 2023, and 3.20% thereafter[205] - The Company issued $80,712 in aggregate principal amount of Series A Unsecured Notes due 2026, receiving net proceeds of approximately $77,900[246] - The Series A Notes bear interest at a rate equal to SOFR plus a credit spread of 3.82% per year, with interest payments commencing on May 31, 2023[247] - The Company incurred debt issuance costs of $3,006 related to the Series A Notes, with an unamortized portion of $2,714 as of June 30, 2023[250] Interest Expense and Rates - Total interest expense for the three months ended June 30, 2023, was $1,539,000, compared to $1,555,000 for the same period in 2022, reflecting a decrease of approximately 1%[198] - The weighted average interest rate for the period remained stable at 4.50%[198] - Total interest expense for the three months ended June 30, 2023, was $466, with a weighted average interest rate of 5.20%[237] - For the three months ended June 30, 2023, total interest expense was $2,251, compared to $1,554 for the same period in 2022, representing a 45% increase[246] - The weighted average interest rate for the Amended UBS Facility was 8.62% for the three months ended June 30, 2023, up from 4.42% in 2022[246] - A basis point change in interest rates could impact interest income significantly, with a 300 basis point increase resulting in an increase of $16,934 or 15.6%[384] Compliance and Reporting - The Company was in compliance with all covenants and reporting requirements as of June 30, 2023[192] - The company was in compliance with all covenants and reporting requirements under the Amended UBS Facility as of June 30, 2023[243] - The Company was in compliance with all covenants and reporting requirements as of June 30, 2023[249] Financial Performance - General and administrative expenses for the three months ended June 30, 2023, totaled $2,074,000, an increase from $1,712,000 in the same period of 2022[211] - Fee income for the three months ended June 30, 2023, was $1,631,000, compared to $2,567,000 for the same period in 2022[219] - Total unfunded commitments as of June 30, 2023, amounted to $56,378,000, down from $71,420,000 as of December 31, 2022[214] - The Company intends to use cash on hand and short-term investments to fund its unfunded commitments[217] Investments - The company's total investments as of June 30, 2023, amounted to $1,660,246, with senior secured first lien debt valued at $1,468,630[238] - The ending balance of senior secured first lien debt decreased from $1,579,512 as of December 31, 2022, to $1,468,630 as of June 30, 2023[240] - Investments purchased during the six months ended June 30, 2023, totaled $188,242, including PIK interest[241] - The company’s equity investments included a total of $133,725 as of June 30, 2023[238] - As of June 30, 2023, the fair value of assets held by Murray Hill Funding II was $229,265[245] Business Outlook - The Company anticipates potential impacts on its business prospects due to inflation and rising interest rates[184] - The Company has no contractual obligation to post cash collateral for Murray Hill Funding unless the market value of the portfolio declines by at least 10%[206] - The More Term Loan Agreement requires a minimum asset coverage ratio of not less than 150%[255] Shareholder Information - The company’s shares began trading on the NYSE under the ticker symbol "CION" on October 5, 2021, enhancing shareholder liquidity[229] - The investment advisory agreement with CIM was renewed for twelve months starting August 9, 2023[230]

Financial Data and Key Metrics Changes - Total investment income increased by 17% to $65 million compared to $55.5 million in the previous quarter [33] - Net investment income rose by 25% to $29.9 million or $0.54 per share, up from $23.9 million or $0.43 per share in the fourth quarter [33] - The net asset value (NAV) decreased to $15.11 per share from $15.98 per share, primarily due to price declines in the portfolio [34] Business Line Data and Key Metrics Changes - The investment portfolio is well-structured with $1.66 billion spread across 109 distinct issuers, with 91% in senior secured investments and 89% in first lien investments [3] - The non-accrual rate increased to 3.5% of fair value, up from 1.3% at the end of the previous year, driven by restructurings in the portfolio [31] - Approximately 10% of the total portfolio is in retail-facing consumer companies, with 2.5% on non-accrual status [21] Market Data and Key Metrics Changes - The weighted average leverage of portfolio companies decreased slightly to 5.11x from 5.30x in the previous quarter [17] - The weighted average interest coverage ratio decreased to 2.07x from 2.31x in the fourth quarter [17] - Total debt outstanding increased by $53 million primarily due to a public bond offering [34] Company Strategy and Development Direction - The company is focused on maintaining a highly selective approach to new investments due to strong economic headwinds and the need for greater liquidity [30] - There is a strategic emphasis on diversifying the debt mix between secured and unsecured financing [35] - The company aims to leverage its diversified sourcing capabilities to maintain robust deal flow, independent of M&A activity [41] Management's Comments on Operating Environment and Future Outlook - Management noted that recent banking failures have dampened optimism and negatively impacted U.S. consumer sentiment, particularly in middle and lower markets [29] - The company remains conservatively leveraged with a net debt-to-equity ratio of 1.02x, positioning itself well for future direct lending opportunities [41] - Management expressed optimism about the potential for recovery in the value of investments that have recently been restructured [27] Other Important Information - The company raised approximately $81 million in series A unsecured bonds, which were oversubscribed, further strengthening its balance sheet [11] - The company repurchased approximately 338,000 shares at an average price of $10.63 per share during the quarter [28] - The total operating expenses increased to $35.1 million from $31.6 million in the previous quarter, primarily due to higher interest expenses [9] Q&A Session Summary Question: What is the outlook for the company's investment strategy given current market conditions? - Management emphasized a selective approach to new investments and the importance of maintaining liquidity in the current economic environment [30] Question: How has the company's non-accrual status changed? - The non-accrual status increased to 3.5% due to intra-quarter restructurings, but management expects some investments to return to performance status in the near future [31] Question: What are the implications of the recent bond offering? - The bond offering strengthens the balance sheet and aligns well with the company's floating rate investments, diversifying financing sources [11]

FORM 10-Q | --- | --- | --- | --- | |----------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------|-------------------------------------------| | Maryland | | | 45-3058280 | | (State or other jurisdiction of incorporation or organization) | | | (I.R.S. Employer Identification No.) | | 100 Park Avenue, 25th Floor New York, New York | | | 10017 | | (Address of principa ...

CION Investment Corporation (NYSE:CION) Q4 2022 Results Conference Call March 16, 2023 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 Finian O'Shea - Wells Fargo Operator Thank you. Good morning, and welcome to the CION Investment Corporation's Fourth Quarter and Year Ended December 31, 2022, Earnings Conference Call. An earnings press release was distribut ...

Investment Portfolio - The total investments as of December 31, 2022, amounted to $1,760,030, with a fair value of $1,749,161, representing a total investment portfolio of 100%[404] - Senior secured first lien debt constitutes 90.3% of the investment portfolio, with a cost of $1,638,995 and a fair value of $1,579,512[404] - The investment portfolio is diversified across various industries, with the largest allocation in Business Services at 19.2% and Healthcare & Pharmaceuticals at 13.6% as of December 31, 2022[407] - The total investments as of March 8, 2023, amounted to $1,814,876, with senior secured first lien debt representing 89.8% of the investment portfolio[426] - The investment portfolio's fair value as of December 31, 2022, was $1,749,161, with 81.5% rated as investment grade (rating 2) and 1.4% rated as the highest quality (rating 1)[416] - The company intends to invest primarily in senior secured debt, including first lien loans, second lien loans, and unitranche loans of U.S. middle-market companies[556] - The company anticipates that up to 30% of its investments may be in assets located outside the United States, which are subject to various risks including foreign governmental laws and currency devaluations[575] - The company holds 99.5% of its investment portfolio in the United States, with total investments at fair value amounting to $1.76 billion[583] Financial Performance - The average annual EBITDA of portfolio companies is reported at $55.2 million, while the median annual EBITDA stands at $35.0 million[404] - Investment income for the year ended December 31, 2022, was $194,898, an increase from $157,348 in 2021, driven by higher interest income from investments[418][419] - The net investment income after taxes for 2022 was $88,205, compared to $74,307 in 2021, reflecting an increase in investment income despite higher operating expenses[429] - The gross annual portfolio yield based on the purchase price is reported at 11.80%[404] - The gross annual portfolio yield based on the purchase price increased to 11.89% as of March 8, 2023, compared to 8.62% in the previous year[426] - The total revenues for the year ended December 31, 2022, were $9,653,000, compared to $688,000 for the period from December 21, 2021, through December 31, 2021[586] - The total expenses for the year ended December 31, 2022, were $11,120,000, compared to $800,000 for the previous period[586] - Net realized gain on investments for the year ended December 31, 2022, was $9,947,000[586] - Net change in unrealized depreciation on investments for the year ended December 31, 2022, was $(5,839,000)[586] - Net increase in net assets from operations for the year ended December 31, 2022, was $2,641,000, compared to $9,085,000 for the previous period[586] Shareholder Distributions - The company declared a regular quarterly distribution of $0.34 per share for Q1 2023, payable on March 31, 2023[411] - The total distributions for the year ended December 31, 2022, amounted to $81,575, an increase from $71,530 in 2021[459] - The company must distribute at least 90% of its net ordinary income and realized net short-term capital gains to maintain RIC tax treatment, avoiding a 4% excise tax[468] - The company intends to make distributions sufficient to maintain RIC status each year, evaluated by management and the board of directors[470] Operating Expenses - The total operating expenses for 2022 were $106,693, up from $83,041 in 2021, driven by increases in interest expense and subordinated incentive fees[429] - Total operating expenses and income taxes increased from $83,041 in 2021 to $106,693 in 2022, representing a rise of about 28.5%[438] - Interest expense rose significantly from $31,807 in 2021 to $49,624 in 2022, an increase of approximately 55.9%[438] Debt and Financing - The Series A Notes bear interest at a rate equal to SOFR plus a credit spread of 3.82% per year, with maturity on August 31, 2026[400] - The company issued approximately $80.7 million in aggregate principal amount of Series A Notes, with net proceeds of approximately $77.9 million intended for investments in portfolio companies and general corporate purposes[503] - As of March 8, 2023, the aggregate outstanding borrowings under the JPM Credit Facility were $600,000, with an aggregate unfunded principal amount of $75,000[473] - The Series A Notes will mature on August 31, 2026, and may be redeemed at par plus a "make-whole" premium[504] Regulatory Compliance - The company is subject to the Sarbanes-Oxley Act, requiring compliance with internal control over financial reporting, which may impact financial performance[491] - The company is no longer a "non-accelerated filer" and must comply with independent auditor attestation requirements under Section 404(b) of the Sarbanes-Oxley Act[476] - Compliance with Section 404(b) of the Sarbanes-Oxley Act may impose significant documentation and administrative burdens, potentially affecting investor confidence[541] Risks and Challenges - The company faces risks related to competition from larger firms with greater financial resources and different risk tolerances[477] - The company may experience fluctuations in quarterly operating results due to various factors, including competition and economic conditions[517] - The company may not be able to assure continued distributions to shareholders, as these depend on earnings and compliance with BDC regulations[515] - The company invests in below-investment grade debt securities, which carry greater risks regarding the borrower's capacity to pay interest and repay principal[531] - The company is exposed to risks associated with changes in interest rates, particularly in the current rising interest rate environment[535] - Rising interest rates may increase borrowing costs, potentially reducing net investment income[536] - Recent inflationary pressures have increased costs of labor, energy, and raw materials, adversely affecting consumer spending and portfolio companies' operations[538] - The company faces competition from larger BDCs and investment funds, which may have lower costs of capital and greater resources, potentially impacting investment opportunities[512] - The company may face challenges in raising additional capital or borrowing for investment purposes due to regulations governing BDC operations[547] - Economic recessions may increase non-performing assets and decrease the value of the portfolio, impacting revenues and net asset value[576] - The risk of nationalization or expropriation in certain investment countries may adversely affect portfolio companies and returns[539] - The company may need to periodically access capital markets to fund new investments, which could limit investment opportunities compared to other companies[523] - The company may not control most portfolio companies, leading to potential misalignment of interests and risks associated with management decisions[558] - The company has invested in illiquid securities, which may complicate the sale of these investments and lead to potential losses[566] - The use of leverage increases investment volatility, with a potential decline in net asset value if asset values decrease[571] - The company faces risks related to prepayments of debt investments, which could adversely affect return on equity and operational results[579] - The transition from LIBOR to SOFR is ongoing, with no expected material impact on the company's business or financial condition[574]

CION Investment Corporation (NYSE:CION) Q3 2022 Earnings Conference Call November 10, 2022 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 Casey Alexander – Compass Point Operator Operator Good morning, and welcome to the CION Investment Corporation's Third Quarter Ended September 30, 2022 Earnings Conference Call. An earnings press release was distributed e ...

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, 2022 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) | --- | --- | --- | --- ...

CION Investment Corporation (NYSE:CION) Q2 2022 Earnings Conference Call August 11, 2022 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 Finian O’Shea - Wells Fargo Securities Operator Good morning and welcome to CION Investment Corporation’s Second Quarter Ended June 30, 2022 Earnings Conference Call. An earnings press release was distributed earlier this m ...