CION Investment Corporation (NYSE:CION) Q1 2023 Earnings Conference Call May 10, 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 Operator Good morning, and welcome to CION’s Investment Corporation’s First Quarter ended March 31, 2023 Earnings Conference Call. An earnings press release was distributed earlier this morning before market open. A copy of the release, along with the sup ...

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 ...

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

Financial Data and Key Metrics Changes - Net investment income for Q1 2022 increased to $0.34 per share compared to $0.32 per share for Q4 2021, reflecting growth in the portfolio with net funded portfolio activity of $77 million [7] - Total investment income for the quarter was $41.7 million, up from $40.4 million in the prior quarter, while total operating expenses increased to $22.2 million from $21.7 million [27] - The debt-to-equity ratio at the end of the quarter was 95%, up from 89% at the end of Q4 2021, indicating growth through additional leverage [28] Business Line Data and Key Metrics Changes - New investment commitments totaled $155 million, with 15 new investments funded, over 50% of which were to new portfolio companies [8][22] - The portfolio composition at quarter end included 198 investments across 115 portfolio companies, with 93.9% in senior secured debt, including 91.8% in first lien debt [23] Market Data and Key Metrics Changes - The total new market loan issuance was $149.1 billion, a 35% decline from Q1 2021, with new issue spreads for institutional loans increasing to 453 basis points in March 2022 [18] - Despite high net inflows into the loan market, the overall sentiment shifted negatively, with key indexes reflecting declines in performance [20] Company Strategy and Development Direction - The company aims to pursue growth in a prudent and measured manner, focusing on high-quality investment opportunities while managing risks [14] - The strategy includes utilizing leverage primarily to finance first-lien debt investments rather than relying on the capital structure of portfolio companies [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged rising interest rates and their potential impact on borrowing costs but expects a net positive effect on net investment income as rates rise [10] - The company remains optimistic about future prospects, emphasizing its focus on high-quality senior secured investments and credit discipline [32] Other Important Information - The company successfully increased its total debt capacity by $150 million during the quarter, enhancing liquidity to support growth [9][13] - The NAV at the end of the quarter was $16.20 per share, a slight decrease from $16.34 per share at the end of Q4 2021, driven by mark-to-market adjustments [28] Q&A Session Summary Question: Insights on new origination in business services - The company indicated that the focus on business services was a combination of defensive underwriting and the available deal flow in the market [34][35] Question: Impact of liquid market conditions on private credit spreads - Management noted that they are always monitoring the liquid market for good value credits, but recent conditions have not been attractive for spreads [36][37] Question: Coordination of 10b5-1 with the next lock-up - Management confirmed that the next lock-up is on July 5, and they plan to refocus on the 10b5 plan around late Q3 and Q4 [39]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 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) | --- | --- | --- | --- ...