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 ...

Financial Performance - For Q4 2024, the company declared a quarterly base distribution of $0.36 per share, payable on December 16, 2024[313]. - The company reported net portfolio activity of $(61,111) for the three months ended September 30, 2024, compared to $6,670 in 2023[319]. - Investment income for the three months ended September 30, 2024, was $59,627, a decrease of 11.3% from $67,540 in 2023[332]. - Net investment income after taxes for the three months ended September 30, 2024, was $21,618, down 28.0% from $29,990 in 2023[337]. - Net increase in net assets resulting from operations for the nine months ended September 30, 2024, was $28,444, down from $44,322 in 2023[350]. - For the nine months ended September 30, 2024, investment income was $194,538, an increase of 1.3% from $191,011 in 2023[343]. - Total operating expenses and income taxes for the three months ended September 30, 2024, increased to $38,009, compared to $37,550 in 2023[335]. - Total operating expenses and income taxes for the nine months ended September 30, 2024, were $117,364, up from $107,747 in 2023[344]. Investment Activity - Net investment activity for the three months ended September 30, 2024, included $91,286 in senior secured first lien debt purchases, down from $102,666 in 2023[319]. - Total purchases and drawdowns for the nine months ended September 30, 2024, included $330,952 in senior secured first lien debt, compared to $186,493 in 2023[319]. - The company experienced sales and principal repayments of $(153,580) for the three months ended September 30, 2024, compared to $(96,373) in 2023[319]. - The company has entered into multiple term loans and note purchase agreements, including the 2024 Term Loan and the 2027 Note Purchase Agreement, which may impact future financing costs[394][395]. Portfolio Composition - The company’s portfolio primarily consists of senior secured debt, with a focus on private and thinly-traded U.S. middle-market companies[302]. - As of September 30, 2024, total investments amounted to $1,850,244, with a fair value of $1,806,229, representing a decrease from $1,975,630 and $1,954,270 as of December 31, 2023[320][322]. - The average annual EBITDA of portfolio companies increased to $61.7 million, up from $51.8 million[322]. - The investment portfolio's fair value allocation by industry shows that the Business Services sector accounts for 15.5% and Healthcare & Pharmaceuticals for 12.6% as of September 30, 2024[325]. - The total number of portfolio companies increased to 111 as of December 31, 2023, from 103[322]. Risk and Exposure - The investment rating system indicates that 85.7% of the portfolio is rated 2, reflecting stable performance, while 11.8% is rated 3, indicating increased risk[329]. - The company’s investment portfolio quality shows that only 0.6% is rated 1, indicating low risk, down from 5.3% at the end of 2023[329]. - The percentage of floating interest rate investments in the portfolio increased to 81.2% as of September 30, 2024, compared to 80.1% at the end of 2023[323]. - Approximately 6.0% of the company's investments paid fixed interest rates as of September 30, 2024, which may lead to fair value declines in a rising interest rate environment[401]. - The company is subject to financial market risks, including changes in interest rates, which could materially affect its business and financial condition[399]. Commitments and Borrowings - The company reported unfunded commitments of $71,113 as of September 30, 2024, up from $47,349 at the end of 2023[325]. - As of September 30, 2024, outstanding borrowings under the JPM Credit Facility were $450,000, with an unfunded principal amount of $112,500[367]. - The company fully repaid all obligations under the 2021 Term Loan as of September 24, 2024[371]. - As of September 30, 2024, the aggregate principal amount of 2026 Notes outstanding was $125,000, with no unfunded principal[370]. Shareholder Returns - The board approved a share repurchase policy allowing up to $60 million in common stock repurchases, with the discretion to determine timing and method[358]. - As of September 30, 2024, a total of 3,672,497 shares were repurchased under the 10b5-1 trading plan for an aggregate purchase price of $37,187, averaging $10.13 per share[361]. - Total distributions for the year ended December 31, 2023, amounted to $87,867, with a per-share distribution of $1.61[365]. - For the nine months ended September 30, 2024, total distributions were $59,473, averaging $1.11 per share[365]. Economic Environment - Persistent inflationary pressures are expected to affect the profit margins of the company's portfolio companies, particularly in the U.S.[403]. - A sensitivity analysis shows that a 300 basis point increase in interest rates could increase interest income by 15.6%[401]. - The company currently has no off-balance sheet arrangements, which may provide a clearer view of its financial commitments[398]. - The company has not experienced claims or losses related to indemnifications in its contracts, suggesting a low risk of loss[396].

Nowadays it seems very hard to find quality dividend stocks at a bargain. Especially those in the BDC sector ( BIZD ) since many have seen their share prices balloon the past 2 years, thanks in part to Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I' ...

As many of my followers have noticed, when it comes to BDCs, I tend to prefer high quality and am even willing to pay a premium over NAV just to keep the potential downside risk limited. Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policyleve ...

DNY59/E+ via Getty Images Overview When I previously covered CION Investment Corporation (NYSE:CION) back in May, I issued a strong buy rating because of the massive discount to NAV pricing that, I felt, wasn't deserved. Unfortunately, my confidence has not resulted in much of a return since then, so I wanted to revisit and reassess this business development company. CION Investment Corp operates as an externally managed business development company that has a market cap of about $639M. They generate earnin ...

CION Investment Corporation (NYSE:CION) Q2 2024 Results Conference Call August 8, 2024 11:00 AM ET Company Participants Charlie Arestia - MD and Head of Investor Relations Mark Gatto - Co-Founder & Co-Chief Executive Officer Gregg Bresner - President & Chief Investment Officer Keith Franz - Chief Financial Officer Conference Call Participants Erik Zwick - Lucid Capital Finian O'Shea - Wells Fargo Securities Operator Greetings, and welcome to the CION Investment Corporation Second Quarter 2024 Conference Cal ...

Exhibit 99.1 CION INVESTMENT CORPORATION REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS Disciplined Capital Deployment Contributes to Net Portfolio Growth For Immediate Release NEW YORK, August 8, 2024 — CION Investment Corporation (NYSE: CION) ("CION" or the "Company") today reported financial results for the second quarter ended June 30, 2024 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. CION also announced that, on August 5, 2024, its co-chief executive officers declared a thir ...

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 June 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) | --- | --- | --- | --- | |-- ...

Evolution of CION Investment Corporation 2012 0.002% $1.15B 30+ Through the years, this BDC helped to deliver significant dividends along the way to accumulate a total of $16.01 in distributions paid out. Admittedly, returns here were partially offset by a decline in net asset value per share through this period. | --- | --- | --- | --- | --- | |-----------------------------------|----------------------------------------------------------|------------------------------|---------------|---------------| | | D ...