CION Investment (US:CION)2023-08-08 16:00Debt 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]