CION Investment (CION) News
Market Cap: $554.13M
Avg Volume: 306.92K
Industry: Asset Management
Sector: Financial Services
My BDC Portfolio And The Strategy For Alpha Going Forward
This is my first BDC portfolio monthly performance review article. The good news is that the portfolio has done its job, outperforming the two BDC benchmarks - PBDC and BIZD. Yet, on an absolute basis, the portfolio is slightly down.
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Best Income Stocks to Buy for March 21st
CION, PFLT and FHB made it to the Zacks Rank #1 (Strong Buy) income stocks list on March 21, 2025.
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All You Need to Know About CION Investment Corporation (CION) Rating Upgrade to Strong Buy
CION Investment Corporation (CION) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
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Best Income Stocks to Buy for March 19th
CION, PSTL and THFF made it to the Zacks Rank #1 (Strong Buy) income stocks list on March 19, 2025.
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CION Investment: A Dividend Cut Is Likely, But I Remain Long
CION Investment has recently issued its Q4, 2024 report. The NII per share has declined to a level, where the dividend is no longer covered. This has also provided a fruitful environment for the bears to speak about PIK and insufficient cash generation to accommodate the dividend.
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CION Investment: Credit Quality Concerns & Economic Uncertainty Outweigh The 13% Yield
CION Investment Corp faces financial challenges, particularly with borrowers like David's Bridal, impacting their top and bottom lines and raising concerns about credit quality. Despite a solid dividend coverage and share repurchases, economic volatility and recession risks warrant caution for investors seeking high yields. The company's net investment income and NAV have declined, with leverage increasing, although their focus on first-lien loans and portfolio growth offers some positives.
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CION Investment Corporation (CION) Q4 2024 Earnings Call Transcript
CION Investment Corporation (NYSE:CION ) Q4 2024 Earnings Conference Call March 13, 2025 11:00 AM ET Company Participants Charles Arestia - Managing Director and Head, Investor Relations Michael Reisner - Co-Founder and Co-Chief Executive Officer Gregg Bresner - President and Chief Investment Officer Keith Franz - Managing Director and Chief Financial Officer Conference Call Participants Finian O'Shea - Wells Fargo Securities Justin Marca - Lucid Capital Markets Operator Greetings and welcome to the CION Investment Corporation Q4 and Year-End 2024 Earnings Call. At this time, all participants are in a listen-only mode.
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CION Investment Corporation (CION) Surpasses Q4 Earnings and Revenue Estimates
CION Investment Corporation (CION) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.40 per share a year ago.
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CION Investment Corporation Reports Fourth Quarter and Year End 2024 Financial Results
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today reported financial results for the fourth quarter and year ended December 31, 2024 and filed its Form 10-K with the U.S. Securities and Exchange Commission. CION also announced that, on March 10, 2025, its co-chief executive officers declared a first quarter 2025 base distribution of $0.36 per share payable on April 11, 2025 to shareholders of record as of March 28, 2025. FOURTH QUARTER AND OTHER.
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The Moment Of Truth For BDC Dividend Investors Is Close
As a structural BDC bull I have to admit that the period of BDCs consistently surprising us on the upside has come to an end. Many lower quality BDCs have already cut their dividends to sync their cash flows with less favorable private credit lending environment. I would say that the moment of truth for high quality BDCs is also very close, where we will see how really durable their base dividends are.
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Tactical BDCs For Sizable Income And Alpha: 1 To Buy, 1 To Avoid
Since BDCs carry in general above-average risks, it makes sense to prioritize defensive and prudently structured picks. Yet, if the price is right, higher risk BDCs could also become enticing investments. In this article, I discuss two tactical or higher risk BDCs - one of which is a buy, and the other one, in my view, should be avoided.
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My BDC Portfolio To Beat The Index And Generate Durable Income
In this article I have elaborated on my actual BDC portfolio. The objective of this portfolio is to beat the BDC-specific indices/ETFs and capture durable base dividends. The portfolio is optimized across leverage, dividend coverage, yield, and valuation levers.
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CION Investment Corporation Enters Into a New Three-Year $125 Million Loan Agreement With UBS
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) announced today that it has terminated its existing senior secured repurchase facility with UBS AG, London Branch (“UBS”) and simultaneously entered into a new senior secured credit facility with UBS. Under the new $125 million senior secured credit facility, the credit spread on the floating interest rate payable by CION on all advances was reduced by 45 basis points, from the three-month Secured Overnight Financing R.
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CION Investment Corporation Schedules 2024 Fourth Quarter and Year-End Earnings Release and Conference Call
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, 2024 on Thursday, March 13, 2025, 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.
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CION Investment Corporation: Disappointing Growth And Investment Activity (Rating Downgrade)
I am downgrading CION Investment Corporation to a hold due to suppressed growth in a high-interest rate environment and a slightly weakened dividend coverage. CION's portfolio structure is solid, but its NAV has shown no meaningful growth, attributed to net losses, a growing non-accrual rate, and reduced new investments. Despite a high 13% dividend yield, the non-accrual rate has increased to 1.85%, and earnings cover the distribution at a slightly weakened rate of 111%.
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SPE And PFO: Two 'Buy' Opportunities Based On Attractive Discounts
Closed-end fund discounts/premiums, due to their structure, allow for potential opportunities to capitalize on mean reversion. CEFs also offer relatively higher distribution yields as they leverage their portfolios and payout sources of income, capital gains and/or return of capital. Today, we are giving SPE and PFO a look; these are two funds that, we believe, are attractively valued and provide monthly distribution to investors.
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Why BDCs Will Likely Outperform In 2025
The BDC sector had a lackluster H2 of 2024 after being on a strong run from 2022 to mid 2024. However, recently there has been some great news for BDCs to start 2025. We share our approach to BDCs right now.
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12-15% Dividend Yields And Big Buybacks
Double-digit yielding stocks that also repurchase shares have plenty of inherent advantages. I share some dividend stocks that meet these criteria. I take a look at them to see if they are worth buying right now.
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2 BDCs With 20%+ Discount To NAV: 1 To Buy, 1 To Avoid
The primary return source of BDC investments is dividend income. Yet, when there is a mismatch between price and value, it is possible to pocket attractive price returns as well. In this article, I share two BDCs that trade at 20%+ discount to their NAV and offer dividend yield starting from 13%.
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I'm Not Married To CION Investment
CION Investment Corporation is downgraded to a hold due to financial pressure from smaller borrowers and expected volatility in the coming quarters. The business development company's Q3 performance showed declines in net investment and total investment income, with significant unrealized losses impacting NAV. Despite headwinds, CION's balance sheet remains strong with well-staggered debt, active share repurchases, and a safe base dividend.
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Is the Options Market Predicting a Spike in CION Investment (CION) Stock?
Investors need to pay close attention to CION Investment (CION) stock based on the movements in the options market lately.
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CION Investment Corporation: Deep Discount And Tempting Yield But Riskier
Income-focused investors could consider CION Investment Corporation for its high yields, but there are definitely risks to consider. CION offers a 12.55% dividend yield and trades at a significant discount of over 27% to its last reported net asset value per share. One of the risks includes higher relative non-accruals and significant payment-in-kind income, though they add that PIK is part of their overall strategy.
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CION Investment Corporation Announces Year-End Special Distribution of $0.05 Per Share
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) today announced that it has declared a special distribution for the year ending December 31, 2024 in the amount of $0.05 per share, payable on January 27, 2025 to shareholders of record as of December 30, 2024, which results in total distributions declared in 2024 of $1.52 per share. The special distribution represents a portion of the Company's investment company taxable income generated through the course of the year.
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KBW Announces Index Rebalancing for Fourth-Quarter 2024
NEW YORK, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Keefe, Bruyette & Woods, Inc., a leading specialist investment bank to the financial services and fintech sectors, and a wholly owned subsidiary of Stifel Financial Corp. (NYSE: SF), announces the upcoming index rebalancing for the fourth quarter of 2024.
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Invest In $95,000 BDC Portfolio For $10,000 Annual Income And Durable Compounding
Private credit/BDC investments offer exposure to structural growth and a significant portfolio yield enhancement. Yet, we have to be extra careful of not falling into value traps and investing in unsustainable yields, which are abundant in the inherently risky sector. In this article, I share a BDC portfolio that has ~10.5% yield, healthier fundamentals than the average in the space, and, importantly, meaningful price appreciation potential.
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CION Investment: Double-Digit Yield Is Safer Than It Seems
CION Investment offers a high regular dividend yield exceeding 12%, supported by a solid dividend coverage of 124%, despite sensitivity to interest rate changes. The company primarily invests in first-lien debt, ensuring high repayment priority, but has seen a slight increase in non-accruals to 1.8% at fair value. CION's valuation is attractive due to trading at a discount to its Net Asset Value, though this raises concerns about its capital-gathering effectiveness.
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Dividend Cut Alert: 13-14% Yields Getting Too Risky
Sky-high dividends of 13-14% are appealing but often come with significant risks. I discuss two stocks that have fully covered 13% and 14% yields that have a lot going for them and look deeply undervalued. However, I believe their dividends are at risk of getting cut soon.
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CION Investment Corporation: 12.5% Yield, P/NAV Of 0.73x Makes It A Buy
CION Investment Corporation is a deeply discounted high yield play. The market is concerned about CION's PIK and portfolio volatility. Looking at the fundamentals, I simply can't rationalize the ~27% discount to NAV.
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CION Investment Corporation (CION) Q3 2024 Earnings Call Transcript
CION Investment Corporation (NYSE:CION ) Q3 2024 Earnings Conference Call November 7, 2024 11:00 AM ET Company Participants Charlie Arestia - Managing Director and Head, Investor Relations Mark Gatto - Co-Chief Executive Officer Gregg Bresner - President and CIO Keith Franz - Chief Financial Officer Conference Call Participants Operator Greetings. And welcome to the CION Investment Corporation's Third Quarter 2024 Conference Call.
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New Preferred Stock And Exchange Traded Debt IPOs, October 2024
September saw two new convertible preferred stock offerings, one term preferred offering, and one Exchange Traded Debt (ETD) offering, with yields ranging from 6% to 8.125%. Here is a comparison against the highest quality preferred stocks in our coverage universe, as ranked by our internal “CDx3 Compliance Score” metric: CDx3 preferreds ranked 10 out of 10 are meanwhile selling for an average premium to par of about 7 cents and offer an average current yield of 6.23%.
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2 BDCs Everyone Seems To Overlook
CION Investment Corp. and Chicago Atlantic BDC are overlooked small-cap BDCs that offer high yields for dividend investors. CION has strong fundamentals, solid dividend coverage, and trades at a 26% discount to NAV, making it an attractive entry point. Chicago Atlantic BDC, the only cannabis-focused BDC, has diversified its portfolio, boasts a clean balance sheet, and trades at a slight discount.
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Invest In All Weather BDC Dividend Portfolio
The All Weather Portfolio concept introduced by Ray Dalio aims for stable returns through largely uncorrelated investment exposures. In this article, I have tried to apply the essence of such a construct for BDC dividend-seeking investments. The sample portfolio, which is presented in the article, consists of three structural layers that are not that correlated and offer different risk and reward profiles.
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Good News For BDCs
I have been bearish on BDCs for a while, and this caution has paid off. However, some good news just arrived for the sector. I discuss what this is and share some of my top picks of the moment in light of this good news.
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CION Investment Corp: A Quality BDC Worth Buying, Although Upside May Be Limited
CION Investment Corp remains undervalued, trading at a 34% discount to its NAV despite solid fundamentals and solid dividend coverage. The BDC's smaller size and shorter track record may be a contributor to its market mispricing compared to larger, more established peers. CION's portfolio performance has been resilient, with high credit quality and decreasing non-accruals year-over-year, despite higher for longer interest rates.
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CION Investment Corporation Announces Pricing of Public Offering of Unsecured Notes Due 2029
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (the “Company” or “CION”) announced today that it has priced an underwritten public offering of $150.0 million aggregate principal amount of unsecured notes due 2029 (the “Notes”), which will result in net proceeds to the Company of approximately $145.4 million after the payment of underwriting discounts and commissions and estimated offering expenses payable by the Company. The Notes will mature on December 30, 2029 and may be.
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2 BDCs At Discounts Of ~20% With Attractive Asymmetric Profiles
This is not the right time to take high risk in the BDC space. Yet, as it is often the case, a challenging environment creates opportunities. In this article, I elaborate on two BDCs which indeed have some risks, but not to the extent that is currently priced in by the market.
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CION Investments and GCM Grosvenor Form Strategic Partnership Focused on Developing Private Market Investment Solutions
NEW YORK--(BUSINESS WIRE)--CION Investments (CION), a leading alternative investment solutions platform, and GCM Grosvenor, (NASDAQ: GCMG), a global alternative asset management firm, are pleased to announce a strategic partnership to enhance individual investors' access to private market assets through their financial advisors. CION Investments and GCM Grosvenor's joint venture will leverage CION's extensive market insights, distribution prowess and product management capabilities in combinati.
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CION Investment Corporation: 2 Possible Outcomes From Interest Rate Cuts
CION Investment Corporation operates as a business development company that generates its earnings through a diverse portfolio of debt investments. CION offers a high dividend yield of 13.8%, making it an excellent option for income-focused investors. Despite potential short-term earnings impact from lower interest rates, CION's focus on first-lien senior secured debt supports long-term portfolio growth.
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Dividend Cut Alert: Bad News For BDCs
BDCs have outperformed REITs since early 2022 due to rising short-term interest rates and a strong economy, but dynamics shifted in July. With long-term rates declining and recession fears rising, BDCs face dividend cut risk. One BDC recently slashed its dividend aggressively and more are likely to follow.
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2 BDCs With Unjustified Discount Of 10% Or Greater
In the current environment, it is indeed difficult for BDCs to achieve premium over NAV. However, as the earnings and dividends continue to remain strong in the sector, I see no reason for significant discounts to NAV. In this article, I have identified two BDCs, which trade at a steep discount to their net asset values despite robust fundamentals. It clearly provides an opportunity for investors.
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CION Investment Corporation: Sound BDC With De-Risked Base Dividend Yield Of 11.6%
CION Investment Corporation focuses on established, cash-generating companies with annual EBITDA between $20-$75 million and has an NAV base of $861 million. It is interesting due to a P/NAV discount of 0.74x and similarities with FS KKR Capital, my top BDC pick for 2024. At the core, CION has a robust portfolio quality underpinned by very healthy credit statistics and an immaterial non-accrual base.
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Want $18,000 in Passive Income? Invest $15,000 in These Dividend Stocks
24/7 Wall Street Insights Inflation and reduced purchasing power due to escalating prices is impacting millions of Americans.
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CION Investment Corp: Big Discount, Strong Yield
CION Investment Corp. is a debt-focused BDC with $2 billion in assets invested primarily in first-lien floating rate debt. CION trades at a significant discount relative to peers, offering a strong dividend yield of nearly 12% with high coverage. CION has had past challenges, but they appear to be on the mend, and dividend coverage here is strong.
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CION Investment Corporation Announces the Amount of its Mid-Year Supplemental Distribution of $0.05 Per Share
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) today announced that it has declared a mid-year supplemental distribution for the period ending June 30, 2024 in the amount of $0.05 per share, payable on July 12, 2024 to shareholders of record as of June 28, 2024. Michael A. Reisner, co-CEO of CION stated, “We are pleased to announce our mid-year supplemental distribution, based on the sustained performance of our conservatively positioned investment portfolio. We re.
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CION Investment Corporation: Strong Cash Flow And Massive Dividend Coverage
CION Investment Corporation: Strong Cash Flow And Massive Dividend Coverage
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Three BDCs And 3 REITs In My Income Compounder Portfolio
In this article I discuss my Income Compounder portfolio strategy, which focuses on generating a steady stream of passive income for retirement. The article reviews three REITs (AGNC, IVR, EFC) and three BDCs (FSK, TRIN, CION) that I hold in my Schwab IRA. I provide insights on the performance, dividends, and future prospects of each investment.
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Wall Street Is Sleeping On These High-Dividend Small Caps
Small-cap stocks are on sale. We can buy select names for just 8.8 times earnings and 83% of book value.
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CION Investment: Q4, The Market May Have This One Wrong (Rating Upgrade)
CION Investment: Q4, The Market May Have This One Wrong (Rating Upgrade)
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CION Investment Corporation Schedules 2024 First Quarter Earnings Release and Conference Call
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) announced today that it will report its financial results for the first quarter ended March 31, 2024 on Thursday, May 9, 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 approximately.
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CION Investment Corporation Strengthens Leadership Team with the Appointment of Charlie Arestia as Managing Director and Head of Investor Relations
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”), a leading publicly listed business development company focused on the U.S. middle market, is pleased to announce the appointment of Charlie Arestia as Managing Director and Head of Investor Relations. In this key role, Mr. Arestia will play a pivotal part in fostering and expanding relationships with CION's valued investors. Mr. Arestia will be based in New York and will work closely with CION's senior management and.
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CION Investment: Negative Growth Could Hinder Returns
CION Investment performed well in 2023 with a 32% total return but faces challenges in 2024. The company's dividend growth and share price upside potential may be negatively impacted by declining income and high debt maturities. CION's stock price is undervalued based on valuations and net asset value, but its overall rating score is affected by negative growth and poor stock price momentum.
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CION Investment Corporation (CION) Q4 2023 Earnings Call Transcript
CION Investment Corporation (NYSE:CION) Q4 2023 Results Conference Call March 14, 2024 11:00 AM ET
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CION Investment Corporation Reports Fourth Quarter and Year End 2023 Financial Results
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today reported financial results for the fourth quarter and year ended December 31, 2023 and filed its Form 10-K with the U.S. Securities and Exchange Commission. CION also announced that, on March 11, 2024, its co-chief executive officers declared a first quarter 2024 base distribution of $0.34 per share payable on March 28, 2024 to shareholders of record as of March 22, 2024. FOURTH QUARTER AND OTHER.
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Want $1000 in Passive Income? Invest $1500 in These 5 Stocks
Work smarter, not harder, says the adage. Passive income is derived from ownership rather than labor or active involvement in an enterprise.
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CION Investment Corporation Schedules 2023 Fourth Quarter and Year-End Earnings Release and Conference Call
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.
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Main Street Capital Vs. CION Investment: Only One Is A Strong Buy
MAIN is an established blue-chip BDC that many consider to be the industry's gold standard. CION is a relative newcomer without much of a publicly traded track record to judge it by. That being said, CION trades at a meaningful discount to MAIN and has a bit of a different focus in its investment portfolio.
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Best BDCs Of 2023: Probably Not The Ones You Expected
I've analyzed the performance of various BDCs in 2023 and specifically those with market caps over $100M.
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CION Investment Corporation Announces Special Year-End 2023 Distribution of $0.15 Per Share
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) today announced that it has declared a special cash distribution for the year ending December 31, 2023 in the amount of $0.15 per share, payable on January 31, 2024 to shareholders of record as of December 22, 2023, which results in an increase in total distributions declared in 2023 of $0.16 per share, or 11.0%, from total distributions declared for the year ended December 31, 2022 of $1.45 per share. This special yea.
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KBW Announces Index Rebalancing for Fourth-Quarter 2023
NEW YORK, Dec. 08, 2023 (GLOBE NEWSWIRE) -- Keefe, Bruyette & Woods, Inc., a leading specialist investment bank to the financial services and fintech sectors, and a wholly owned subsidiary of Stifel Financial Corp. (NYSE: SF), announces the upcoming index rebalancing for the fourth quarter of 2023.
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CION Investment Corporation Announces the Issuance of $100 Million Floating Rate Senior Unsecured Notes due 2027
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) announced today that it closed an offering of $100 million in aggregate principal amount of its Senior Unsecured Notes due 2027 (the “Notes”). The Notes will bear interest at a floating rate equal to the three-month Secured Overnight Financing Rate (“SOFR”) plus a credit spread of 4.75% per year and subject to a 2.00% SOFR floor, which will be paid quarterly commencing on February 15, 2024. The Notes will mature on Nov.
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CION Investment Corporation (CION) Q3 2023 Earnings Call Transcript
CION Investment Corporation (NYSE:CION ) Q3 2023 Earnings Conference Call November 9, 2023 11:00 AM ET Company Participants Michael Reisner - Co-Chief Executive Officer Mark Gatto - Co-Chief Executive Officer Gregg Bresner - President and CIO Keith Franz - Chief Financial Officer Conference Call Participants Erik Zwick - Hovde Group Operator Good morning. And welcome to CION Investment Corporation's Third Quarter 2023 Earnings Conference Call.
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CION Investment Corporation Schedules 2023 Third Quarter Earnings Release and Conference Call
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) announced today that it will report its financial results for the third quarter ended September 30, 2023, on Thursday, November 9, 2023, 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 app.
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CION Investment's Dividend Coverage Could Fall On Negative Growth
CION Investment may struggle to increase earnings due to potential Fed rate cuts, leading to a decline in dividend coverage ratio. The company's cautious investment strategy and low new investments may also negatively impact prospects for sustainable growth in interest income. CION Investment's liquidity position is currently strong, but debt maturities in the future may put pressure on its liquidity.
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CION Investment Corporation Announces Extension of Existing $60 Million Share Repurchase Program
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) today announced a one-year extension to its existing $60 million share repurchase program through August 29, 2024, under which CION will continue to support the trading of its common shares and seek to drive long-term shareholder value. The share repurchase program authorizes CION to repurchase up to $60 million of its common shares, of which approximately $37.0 million remains available. CION had repurchased a total o.
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CION Investment Corporation (CION) Q2 2023 Earnings Call Transcript
CION Investment Corporation (NYSE:CION ) Q2 2023 Earnings Conference Call August 9, 2023 11:00 AM ET Company Participants Michael Reisner - Co-Chief Executive Officer Gregg Bresner - President & Chief Investment Officer Keith Franz - Chief Financial Officer Conference Call Participants Erik Zwick - Hovde Group Finian O'Shea - Wells Fargo Operator Thank you. Good morning and welcome to the CION Investment Corporation's Second Quarter 2023 Earnings Conference Call.
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CION Investment Corporation Reports Second Quarter 2023 Financial Results
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today reported financial results for the second quarter ended June 30, 2023 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. CION also announced that, on August 7, 2023, its co-chief executive officers declared (i) a third quarter 2023 regular distribution of $0.34 per share payable on September 15, 2023 to shareholders of record as of September 1, 2023 and (ii) a supplemental.
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David's Bridal and CION Investment Corporation Complete Successful Transaction and Announce Plans for Go-Forward Industry Leading Bridal Company
CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--David's Bridal, LLC ("the Company"), the nation's leading bridal and special occasion authority, today announced that it has successfully closed its transaction with CION Investment Corporation (NYSE: CION) (“CION”), a leading publicly listed business development company, for the sale of substantially all of the Company's assets (the “CION Transaction”). Through the CION Transaction, David's Bridal will continue operations at up to 195 stores, preserving 7,00.
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CION Investment Corporation Schedules 2023 Second Quarter Earnings Release and Conference Call
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) announced today that it will report its financial results for the second quarter ended June 30, 2023 on Wednesday, August 9, 2023, 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 approxima.
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CION's Vertical Integration Supports Margin Expanding Operational Growth
CION Investment, a New York-based alternative asset manager, has seen Q1 revenues of $60.45mn, a 45.26% increase, with a net income of -31.05mn and a free cash flow of $12.54mn. The company's value proposition is supported by its vertically integrated investment fund structure, focus on first-lien, senior secured loans, and in-house capital origination and fundraising. Despite volatile cash flows, the company's vertical integration, lean organization, and quality investment philosophy combined with a moderate undervaluation leads me to rate the company a 'buy'.
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CION Investment: This Strong BDC Outperforms In 2023
CION makes investments in middle market companies to generate market beating returns due to their expertise in private credit and rigorous lending practices. CION has outperformed most of its peer BDCs over the past 6 months including ARCC, ORCC, FSK, and OCSL.
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CION Investment Corporation Schedules 2023 First Quarter Earnings Release and Conference Call
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION”) announced today that it will report its financial results for the first quarter ended March 31, 2023, on Wednesday, May 10, 2023, 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.
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BDCs: CION Investment Outperforming Peers And S&P 500
CION Investment Corporation appears to be the best business development company to own in 2023 due to its solid dividend and share price growth prospects. The company is well-positioned to generate high risk-adjusted returns because its portfolio is well-positioned to benefit from high interest rates, while low non-accruals limit the downside risk.
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CION Ares Diversified Credit Fund Announces Increase to Distribution Rate
NEW YORK--( BUSINESS WIRE )--CION Ares Management LLC, a joint venture between affiliates of CION Investments (“CION”), a leading manager of alternative investment solutions for individual investors, and Ares Management Corporation (“Ares”), a leading global alternative investment manager, announced that the CION Ares Diversified Credit Fund (“CADC” or the “Fund”) increased its distribution rates for all share classes, effective as of January 1, 2023.
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CION Had Good Performance In 2022 But Still Trades Well Below Book Value
CION Investment Corp. is an externally managed closed-end fund that is regulated as a BDC. It primarily provides senior secured loans to US middle-market companies. The book value was $16.26 per share as of Sept. 30, 2022.
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CION Investment Corporation (CION) Q3 2022 Earnings Call Transcript
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 earlier this morning before market opened.
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CION Investment Corporation Reports Third Quarter 2022 Financial Results
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today reported financial results for the third quarter ended September 30, 2022 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. CION also announced that, on November 8, 2022, its co-chief executive officers declared a fourth quarter 2022 regular distribution of $0.31 per share payable on December 8, 2022 to shareholders of record as of December 1, 2022. THIRD QUARTER AND OTHER HIGHLIGHTS Net investment income and earnings per share for the quarter ended September 30, 2022 were $0.45 per share and $0.60 per share, respectively; Net asset value per share was $16.26 as of September 30, 2022 compared to $15.89 as of June 30, 2022. The increase was primarily due to mark to market changes in the Company's portfolio and over earning its distribution for the period; As of September 30, 2022, the Company had $958 million of total principal amount of debt outstanding, of which 79% was comprised of senior secured bank debt and 21% was comprised of unsecured debt. The Company’s debt-to-equity ratio was 1.05x as of September 30, 2022, which represents no change from the debt-to-equity ratio as of June 30, 2022; As of September 30, 2022, the Company had total investments at fair value of $1,797 million in 119 portfolio companies across 22 industries. The investment portfolio was comprised of 92.0% senior secured loans, including 89.8% in first lien investments;1 During the quarter, the Company had new investment commitments of $134 million, funded new investment commitments of $127 million, funded previously unfunded commitments of $14 million, and had sales and repayments totaling $155 million, resulting in a net decrease to the Company's funded portfolio of $14 million; As of September 30, 2022, investments on non-accrual status amounted to 0.4% and 1.7% of the total investment portfolio at fair value and amortized cost, respectively; On August 16, 2022, as part of the previously announced $60 million share repurchase policy, the Company entered into a 10b5-1 trading plan with Wells Fargo Securities, LLC and began repurchasing its shares of common stock. During the quarter, the Company repurchased 695,476 shares of its common stock at an average price of $9.65 per share for a total repurchase amount of $6.7 million. DISTRIBUTIONS For the quarter ended September 30, 2022, the Company paid a regular quarterly distribution totaling $17.6 million, or $0.31 per share, which was an increase of $0.03 per share, or 10.7%, from the $0.28 per share regular distribution paid for the second quarter. “Despite continuing turbulence in the market, we believe our clear strategic focus on first lien investments, steadfast commitment to a high level of diversification, and continuing penchant to avoid reaching for yield down the capital structure has positioned our portfolio well to perform through the myriad of challenges and headwinds that are expected over the next twelve to eighteen months. Amid challenging market conditions, we were able to generate both net investment income and NAV growth while remaining under-levered relative to our peers. As a result of higher base interest rates, the continued strength of our portfolio and the implementation of our 10b5-1 share repurchase plan, we were able to out earn our distribution and are pleased to announce our intention to declare a special distribution before the year is over,” said Michael A. Reisner, co-Chief Executive Officer of CION. SELECTED FINANCIAL HIGHLIGHTS As of (in thousands, except per share data) September 30, 2022 June 30, 2022 Investment portfolio, at fair value1 $ 1,797,244 $ 1,791,107 Total debt outstanding2 $ 957,500 $ 947,500 Net assets $ 914,906 $ 905,238 Net asset value per share $ 16.26 $ 15.89 Debt-to-equity 1.05x 1.05x Three Months Ended (in thousands, except share and per share data) September 30, 2022 June 30, 2022 Total investment income $ 54,163 $ 43,552 Total operating expenses and income tax expense $ 28,606 $ 24,264 Net investment income after taxes $ 25,557 $ 19,288 Net realized (losses) gains $ (17,169 ) $ 180 Net unrealized gains (losses) $ 25,595 $ (20,734 ) Net increase (decrease) in net assets resulting from operations $ 33,983 $ (1,266 ) Net investment income per share $ 0.45 $ 0.34 Net realized and unrealized gains (losses) per share $ 0.15 $ (0.36 ) Earnings per share $ 0.60 $ (0.02 ) Weighted average shares outstanding 56,816,992 56,958,440 Distributions declared per share $ 0.31 $ 0.28 Total investment income for the three months ended September 30, 2022 and June 30, 2022 was $54.2 million and $43.6 million, respectively. The increase in investment income was primarily driven by an increase in LIBOR and SOFR rates and fees generated from the Company's investment activity during the three months ended September 30, 2022 compared to the three months ended June 30, 2022. Operating expenses for the three months ended September 30, 2022 and June 30, 2022 were $28.6 million and $24.3 million, respectively. The increase in operating expenses was primarily driven by an increase in interest expense under the Company's financing arrangements due to higher LIBOR and SOFR rates during the quarter ended September 30, 2022 compared to the quarter ended June 30, 2022. PORTFOLIO AND INVESTMENT ACTIVITY1 A summary of the Company's investment activity for the three months ended September 30, 2022 is as follows: New Investment Commitments Sales and Repayments Investment Type $ in Thousands % of Total $ in Thousands % of Total Senior secured first lien debt $ 112,078 84 % $ 154,469 100 % Senior secured second lien debt 18,108 14 % 9 — Collateralized securities and structured products - equity — — 133 — Equity 3,379 2 % 261 — Total $ 133,565 100 % $ 154,872 100 % During the three months ended September 30, 2022, new investment commitments were made across 6 new portfolio companies and 5 existing portfolio companies. Sales and repayments were primarily driven by the full sale or repayment of investments in 8 portfolio companies. As a result, the number of portfolio companies decreased from 121 as of June 30, 2022 to 119 as of September 30, 2022. PORTFOLIO SUMMARY1 As of September 30, 2022, the Company’s investments consisted of the following: Investments at Fair Value Investment Type $ in Thousands % of Total Senior secured first lien debt $ 1,616,352 89.8 % Senior secured second lien debt 38,716 2.2 % Collateralized securities and structured products - equity 1,366 0.1 % Unsecured debt 28,319 1.6 % Equity 112,491 6.3 % Total $ 1,797,244 100.0 % The following table presents certain selected information regarding the Company’s investments: As of September 30, 2022 June 30, 2022 Number of portfolio companies 119 121 Percentage of performing loans bearing a floating rate3 89.1% 89.2% Percentage of performing loans bearing a fixed rate3 10.9% 10.8% Yield on debt and other income producing investments at amortized cost4 10.76% 9.14% Yield on performing loans at amortized cost4 10.98% 9.51% Yield on total investments at amortized cost 10.33% 8.90% Weighted average leverage (net debt/EBITDA)5 4.97x 4.67x Weighted average interest coverage5 2.67x 3.29x Median EBITDA6 $37.3 million $33.7 million As of September 30, 2022, investments on non-accrual status represented 0.4% and 1.7% of the total investment portfolio at fair value and amortized cost, respectively. LIQUIDITY AND CAPITAL RESOURCES As of September 30, 2022, the Company had $958 million of total principal amount of debt outstanding, comprised of $753 million of outstanding borrowings under its senior secured credit facilities and $205 million of unsecured notes and term loans. The combined weighted average interest rate on debt outstanding was 5.4% for the quarter ended September 30, 2022. As of September 30, 2022, the Company had $53 million in cash and short-term investments and $72 million available under its financing arrangements.2 EARNING CONFERENCE CALL CION will host an earnings conference call on Thursday, November 10, 2022 at 11:00 am Eastern Time to discuss its financial results for the third quarter ended September 30, 2022. Please visit the Investor Resources - Events and Presentations section of the Company’s website at www.cionbdc.com for a slide presentation that complements the earnings conference call. All interested parties are invited to participate via telephone or listen via the live webcast, which can be accessed by clicking the following link: CION Investment Corporation Third Quarter 2022 Financial Results Webcast. Domestic callers can access the conference call by dialing (877) 445-9755. International callers can access the conference call by dialing +1 (201) 493-6744. All callers are asked to dial in approximately 10 minutes prior to the call. An archived replay will be available on a webcast link located in the Investor Resources - Events and Presentations section of CION’s website. The discussion of the investment portfolio excludes short-term investments. Total debt outstanding excludes netting of debt issuance costs of $7.0 million and $7.8 million as of September 30, 2022 and June 30, 2022, respectively. The fixed versus floating composition has been calculated as a percentage of performing debt investments measured on a fair value basis, including income producing preferred stock investments and excludes investments, if any, on non-accrual status. Computed based on the (a) annual actual interest rate or yield earned plus amortization of fees and discounts on the performing debt and other income producing investments as of the reporting date, divided by (b) the total performing debt and other income producing investments (excluding investments on non-accrual status) at amortized cost. This calculation excludes exit fees that are receivable upon repayment of the investment. For a particular portfolio company, the Company calculates the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compares that amount to measures of cash flow available to service the net debt. To calculate net debt, the Company includes debt that is both senior and pari passu to the tranche of debt owned by it but excludes debt that is legally and contractually subordinated in ranking to the debt owned by the Company. The Company believes this calculation method assists in describing the risk of its portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by the Company relative to other senior and junior creditors of a portfolio company. The Company typically calculates cash flow available for debt service at a portfolio company by taking EBITDA for the trailing twelve-month period. Weighted average net debt to EBITDA is weighted based on the fair value of the Company's performing debt investments and excluding investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. For a particular portfolio company, the Company also calculates the level of contractual interest expense owed by the portfolio company, and compares that amount to EBITDA (“interest coverage ratio”). The Company believes this calculation method assists in describing the risk of its portfolio investments, as it takes into consideration contractual interest obligations of the portfolio company. Weighted average interest coverage is weighted based on the fair value of the Company's performing debt investments, excluding investments where interest coverage may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Portfolio company statistics, including EBITDA, are derived from the financial statements most recently provided to the Company for each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by the Company and may reflect a normalized or adjusted amount. Median EBITDA is calculated based on the portfolio company's EBITDA as of the Company's initial investment. CĪON Investment Corporation Consolidated Balance Sheets (in thousands, except share and per share amounts) September 30, 2022 June 30, 2022 (unaudited) (unaudited) Assets Investments, at fair value: Non-controlled, non-affiliated investments (amortized cost of $1,629,044 and $1,660,187, respectively) $ 1,567,403 $ 1,601,753 Non-controlled, affiliated investments (amortized cost of $138,586 and $131,439, respectively) 142,202 113,554 Controlled investments (amortized cost of $84,347 and $84,347, respectively) 97,443 90,145 Total investments, at fair value (amortized cost of $1,851,977 and $1,875,973, respectively) 1,807,048 1,805,452 Cash 43,661 42,542 Interest receivable on investments 26,976 21,962 Receivable due on investments sold and repaid 7,146 2,713 Prepaid expenses and other assets 841 2,112 Total assets $ 1,885,672 $ 1,874,781 Liabilities and Shareholders' Equity Liabilities Financing arrangements (net of unamortized debt issuance costs of $7,014 and $7,849, respectively) $ 950,486 $ 939,651 Payable for investments purchased — 11,635 Accounts payable and accrued expenses 1,853 1,194 Interest payable 5,143 5,603 Accrued management fees 6,943 6,839 Accrued subordinated incentive fee on income 5,421 4,091 Accrued administrative services expense 604 530 Share repurchases payable 316 — Total liabilities 970,766 969,543 Commitments and contingencies Shareholders' Equity Common stock, $0.001 par value; 500,000,000 shares authorized; 56,373,217 and 56,958,440 shares issued, and 56,262,964 and 56,958,440 shares outstanding, respectively 57 57 Capital in excess of par value 1,053,278 1,059,989 Accumulated distributable losses (138,429 ) (154,808 ) Total shareholders' equity 914,906 905,238 Total liabilities and shareholders' equity $ 1,885,672 $ 1,874,781 Net asset value per share of common stock at end of period $ 16.26 $ 15.89 CĪON Investment Corporation Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, Year Ended December 31, 2022 2021 2022 2021 2021 (unaudited) (unaudited) (unaudited) (unaudited) Investment income Non-controlled, non-affiliated investments Interest income $ 37,336 $ 31,036 $ 100,079 $ 87,305 $ 119,792 Paid-in-kind interest income 6,876 3,969 16,095 13,957 17,306 Fee income 4,542 1,543 8,045 3,356 5,927 Dividend income 57 81 103 254 366 Non-controlled, affiliated investments Interest income 1,949 1,425 4,517 3,867 4,961 Paid-in-kind interest income 1,174 776 3,493 2,655 3,160 Fee income 19 — 525 — — Dividend income 13 3,790 66 5,550 5,576 Controlled investments Interest income 2,197 — 6,066 — 260 Paid-in-kind interest income — — 409 — — Total investment income 54,163 42,620 139,398 116,944 157,348 Operating expenses Management fees 6,942 8,443 20,436 24,469 31,143 Administrative services expense 733 722 2,234 2,103 3,069 Subordinated incentive fee on income 5,421 2,933 13,645 2,933 6,875 General and administrative 2,027 2,709 5,961 7,950 9,805 Interest expense 13,469 8,175 32,769 23,551 31,807 Total operating expenses 28,592 22,982 75,045 61,006 82,699 Net investment income before taxes 25,571 19,638 64,353 55,938 74,649 Income tax expense, including excise tax 14 26 25 41 342 Net investment income after taxes 25,557 19,612 64,328 55,897 74,307 Realized and unrealized (losses) gains Net realized (losses) gains on: Non-controlled, non-affiliated investments 4,267 873 4,475 1,344 (4,100 ) Non-controlled, affiliated investments (21,433 ) 18,856 (21,530 ) 17,776 8,010 Controlled investments — — — (3,067 ) (3,067 ) Foreign currency (3 ) 7 (3 ) (4 ) (3 ) Net realized (losses) gains (17,169 ) 19,736 (17,058 ) 16,049 840 Net change in unrealized appreciation (depreciation) on: Non-controlled, non-affiliated investments (669 ) 6,937 (25,646 ) 32,132 25,566 Non-controlled, affiliated investments 18,966 (21,177 ) 13,609 (4,354 ) 7,261 Controlled investments 7,298 — 5,373 3,067 10,790 Net change in unrealized appreciation (depreciation) 25,595 (14,240 ) (6,664 ) 30,845 43,617 Net realized and unrealized gains (losses) 8,426 5,496 (23,722 ) 46,894 44,457 Net increase in net assets resulting from operations $ 33,983 $ 25,108 $ 40,606 $ 102,791 $ 118,764 Per share information—basic and diluted (1) Net increase in net assets per share resulting from operations $ 0.60 $ 0.44 $ 0.71 $ 1.81 $ 2.09 Net investment income per share $ 0.45 $ 0.35 $ 1.13 $ 0.98 $ 1.31 Weighted average shares of common stock outstanding 56,816,992 56,774,323 56,910,773 56,758,586 56,808,960 (1) The Company completed a two-to-one reverse stock split, effective as of September 21, 2021. The weighted average shares used in the computation of the net increase in net assets per share resulting from operations and net investment income per share reflect the reverse stock split on a retroactive basis. ABOUT CION INVESTMENT CORPORATION CION Investment Corporation is a leading publicly listed business development company that had approximately $1.9 billion in total assets as of September 30, 2022. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and an affiliate of CION. For more information, please visit www.cionbdc.com. FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss CION’s plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters. These statements represent CION’s belief regarding future events that, by their nature, are uncertain and outside of CION’s control. There are likely to be events in the future, however, that CION is not able to predict accurately or control. Any forward-looking statement made by CION in this press release speaks only as of the date on which it is made. Factors or events that could cause CION’s actual results to differ, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors CION identifies in the sections entitled “Risk Factors” and “Forward-Looking Statements” in filings CION makes with the SEC, and it is not possible for CION to predict or identify all of them. CION undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. OTHER INFORMATION The information in this press release is summary information only and should be read in conjunction with CION’s Quarterly Report on Form 10-Q, which CION filed with the SEC on November 10, 2022, as well as CION’s other reports filed with the SEC. A copy of CION’s Quarterly Report on Form 10-Q and CION’s other reports filed with the SEC can be found on CION’s website at www.cionbdc.com and the SEC’s website at www.sec.gov.
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CION Investment Corporation to Present at the Sidoti Small-Cap Virtual Conference on September 22
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today announced that its management will be presenting at the Sidoti Small-Cap Virtual Conference on Thursday, September 22nd at 9:15am (ET). Additionally, CION's management will be meeting with investors throughout the day. Investors will be able to access the presentation live over the internet via the weblink: https://sidoti.zoom.us/webinar/register/WN_OGFsDFMORFuFvSOkSMT-Yg. A webcast replay will b
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CION Investment Corporation (CION) CEO Michael Reisner on Q2 2022 Results - Earnings Call Transcript
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 morning before market open.
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CION Investment Corporation Reports Second Quarter 2022 Financial Results
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today reported financial results for the second quarter ended June 30, 2022 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. CION also announced that, on August 9, 2022, its co-chief executive officers declared a third quarter 2022 regular distribution of $0.31 per share payable on September 8, 2022 to shareholders of record as of September 1, 2022, which is an increase of $0.03 per share, or 10.7%, from the $0.28 per share regular distribution paid for the second quarter 2022. SECOND QUARTER AND OTHER HIGHLIGHTS Net investment income and earnings per share for the quarter ended June 30, 2022 were $0.34 per share and $(0.02) per share, respectively; Net asset value per share was $15.89 as of June 30, 2022 compared to $16.20 as of March 31, 2022. The decrease was primarily due to mark-to-market adjustments caused by wider credit spreads and price declines on our portfolio during the quarter; As of June 30, 2022, the Company had $947.5 million of total principal amount of debt outstanding, of which 78% was comprised of senior secured bank debt and 22% was comprised of unsecured debt. The Company’s debt-to-equity ratio was 1.05x as of June 30, 2022 compared to 0.95x as of March 31, 2022; As of June 30, 2022, the Company had total investments at fair value of $1,791 million in 121 portfolio companies across 22 industries. The investment portfolio was comprised of 94.2% senior secured loans, including 92.7% in first lien investments;1 During the quarter, the Company had new investment commitments of $184 million, funded new investment commitments of $165 million, funded previously unfunded commitments of $8 million, and had sales and repayments totaling $110 million, resulting in a net funded portfolio change of $63 million; As of June 30, 2022, investments on non-accrual status amounted to 1.5% and 3.6% of the total investment portfolio at fair value and amortized cost, respectively; On April 27, 2022, the Company entered into a 5-year floating rate unsecured term loan agreement with More Provident Funds and Pension Ltd. under which the Company borrowed $50 million; and On June 24, 2022, the Company’s board of directors, including the independent directors, increased the amount of shares of the Company’s common stock that may be repurchased under the Company’s share repurchase policy by $10 million to up to an aggregate of $60 million. DISTRIBUTIONS For the quarter ended June 30, 2022, the Company paid a regular quarterly distribution totaling $15.9 million, or $0.28 per share. “The improved second quarter financial and portfolio performance is a result of our prudent, long-term investment strategy which we continued to implement even during these volatile market conditions. We remained focused on the expansion and diversification of our portfolio with solid companies across many industries while seeking to capitalize on new opportunities. As a result, during the quarter we increased our portfolio by $63 million in net funded investments. We believe we are well positioned to provide strong returns to our shareholders. Our stock trades at a significant discount to our net asset value per share of $15.89 at quarter end, which is one of the reasons why our Board recently approved the increase of the total amount to be repurchased under our existing share repurchase policy by $10 million to a total of $60 million. Share repurchases under this policy will be accretive to our net investment income per share, thus provide higher returns to our current shareholders,” said Michael A. Reisner, co-Chief Executive Officer of CION. SELECTED FINANCIAL HIGHLIGHTS As of (in thousands, except per share data) June 30, 2022 March 31, 2022 Investment portfolio, at fair value1 $ 1,791,107 $ 1,739,534 Total debt outstanding2 $ 947,500 $ 875,000 Net assets $ 905,238 $ 922,453 Net asset value per share $ 15.89 $ 16.20 Debt-to-equity 1.05x 0.95x Three Months Ended (in thousands, except share and per share data) June 30, 2022 March 31, 2022 Total investment income $ 43,552 $ 41,683 Total operating expenses and income tax expense $ 24,264 $ 22,200 Net investment income after taxes $ 19,288 $ 19,483 Net realized gains (losses) $ 180 $ (69 ) Net unrealized losses $ (20,734 ) $ (11,525 ) Net (decrease) increase in net assets resulting from operations $ (1,266 ) $ 7,889 Net investment income per share $ 0.34 $ 0.34 Net realized and unrealized losses per share $ (0.36 ) $ (0.20 ) Earnings per share $ (0.02 ) $ 0.14 Weighted average shares outstanding 56,958,440 56,958,440 Distributions declared per share $ 0.28 $ 0.28 Total investment income for the three months ended June 30, 2022 and March 31, 2022 was $43.6 million and $41.7 million, respectively. The increase in investment income was primarily driven by an increase in non-recurring fee revenue during the three months ended June 30, 2022 compared to the three months ended March 31, 2022. Operating expenses for the three months ended June 30, 2022 and March 31, 2022 were $24.3 million and $22.2 million, respectively. The increase in operating expenses was primarily driven by an increase in interest expense under the Company's financing arrangements due to higher LIBOR and SOFR rates as well as higher average borrowings during the quarter ended June 30, 2022 compared to the quarter ended March 31, 2022. PORTFOLIO AND INVESTMENT ACTIVITY1 A summary of the Company's investment activity for the three months ended June 30, 2022 is as follows: New Investment Commitments Sales and Repayments Investment Type $ in Thousands % of Total $ in Thousands % of Total Senior secured first lien debt $ 181,175 98 % $ 93,195 85 % Senior secured second lien debt 1,836 1 % 15,000 14 % Collateralized securities and structured products - equity — — 854 1 % Equity 1,009 1 % 504 — Total $ 184,020 100 % $ 109,553 100 % During the three months ended June 30, 2022, new investment commitments were made across 10 new portfolio companies and 9 existing portfolio companies. Sales and repayments were primarily driven by the full sale or repayment of investments in 4 portfolio companies. As a result, the number of portfolio companies increased from 115 as of March 31, 2022 to 121 as of June 30, 2022. PORTFOLIO SUMMARY1 As of June 30, 2022, the Company’s investments consisted of the following: Investments at Fair Value Investment Type $ in Thousands % of Total Senior secured first lien debt $ 1,660,828 92.7 % Senior secured second lien debt 27,086 1.5 % Collateralized securities and structured products - equity 1,602 0.1 % Unsecured debt 27,994 1.6 % Equity 73,597 4.1 % Total $ 1,791,107 100.0 % The following table presents certain selected information regarding the Company’s investments: As of June 30, 2022 March 31, 2022 Number of portfolio companies 121 115 Percentage of performing loans bearing a floating rate3 89.2 % 90.1 % Percentage of performing loans bearing a fixed rate3 10.8 % 9.9 % Yield on debt and other income producing investments at amortized cost4 9.14 % 8.90 % Yield on performing loans at amortized cost4 9.51 % 9.12 % Yield on total investments at amortized cost 8.90 % 8.64 % Weighted average leverage (net debt/EBITDA)5 4.67x 4.74x Weighted average interest coverage5 3.29x 3.73x Median EBITDA6 $33.7 million $32.8 million As of June 30, 2022, investments on non-accrual status represented 1.5% and 3.6% of the total investment portfolio at fair value and amortized cost, respectively. LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2022, the Company had $947.5 million of total principal amount of debt outstanding, comprised of $743 million of outstanding borrowings under its senior secured credit facilities and $205 million of unsecured notes and term loans. The combined weighted average interest rate on debt outstanding was 4.3% for the quarter ended June 30, 2022. As of June 30, 2022, the Company had $57 million in cash and short-term investments and $82 million available under its financing arrangements.2 EARNING CONFERENCE CALL CION will host an earnings conference call on Thursday, August 11, 2022 at 11:00 am Eastern Time to discuss its financial results for the second quarter ended June 30, 2022. Please visit the Investor Resources - Events and Presentations section of the Company’s website at www.cionbdc.com for a slide presentation that complements the earnings conference call. All interested parties are invited to participate via telephone or listen via the live webcast, which can be accessed by clicking the following link: CION Investment Corporation Second Quarter 2022 Financial Results Webcast. Domestic callers can access the conference call by dialing (877) 445-9755. International callers can access the conference call by dialing +1 (201) 493-6744. All callers are asked to dial in approximately 10 minutes prior to the call. An archived replay will be available on a webcast link located in the Investor Resources - Events and Presentations section of CION’s website. ENDNOTES Total debt outstanding excludes netting of debt issuance costs of $7.8 million and $7.6 million as of June 30, 2022 and March 31, 2022, respectively. 3) 4) Computed based on the (a) annual actual interest rate or yield earned plus amortization of fees and discounts on the performing debt and other income producing investments as of the reporting date, divided by (b) the total performing debt and other income producing investments (excluding investments on non-accrual status) at amortized cost. This calculation excludes exit fees that are receivable upon repayment of the investment. 5) For a particular portfolio company, we calculate the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compare that amount to measures of cash flow available to service the net debt. To calculate net debt, we include debt that is both senior and pari passu to the tranche of debt owned by us but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by us relative to other senior and junior creditors of a portfolio company. We typically calculate cash flow available for debt service at a portfolio company by taking EBITDA for the trailing twelve-month period. Weighted average net debt to EBITDA is weighted based on the fair value of our performing debt investments and excluding investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. For a particular portfolio company, we calculate the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compare that amount to measures of cash flow available to service the net debt. To calculate net debt, we include debt that is both senior and pari passu to the tranche of debt owned by us but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by us relative to other senior and junior creditors of a portfolio company. We typically calculate cash flow available for debt service at a portfolio company by taking EBITDA for the trailing twelve-month period. Weighted average net debt to EBITDA is weighted based on the fair value of our performing debt investments and excluding investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Portfolio company statistics, including EBITDA, are derived from the financial statements most recently provided to us for each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by us and may reflect a normalized or adjusted amount. 6) CĪON Investment Corporation Consolidated Balance Sheets (in thousands, except share and per share amounts) June 30, 2022 March 31, 2022 (unaudited) (unaudited) Assets Investments, at fair value: Non-controlled, non-affiliated investments (amortized cost of $1,660,187 and $1,576,679, respectively) $ 1,601,753 $ 1,533,188 Non-controlled, affiliated investments (amortized cost of $131,439 and $144,704, respectively) 113,554 130,934 Controlled investments (amortized cost of $84,347 and $83,702, respectively) 90,145 91,175 Total investments, at fair value (amortized cost of $1,875,973 and $1,805,085, respectively) 1,805,452 1,755,297 Cash 42,542 17,500 Interest receivable on investments 21,962 21,298 Receivable due on investments sold and repaid 2,713 7,303 Prepaid expenses and other assets 2,112 3,618 Total assets $ 1,874,781 $ 1,805,016 Liabilities and Shareholders' Equity Liabilities Financing arrangements (net of unamortized debt issuance costs of $7,849 and $7,636, respectively) $ 939,651 $ 867,364 Payable for investments purchased 11,635 — Accounts payable and accrued expenses 1,194 862 Interest payable 5,603 3,173 Accrued management fees 6,839 6,655 Accrued subordinated incentive fee on income 4,091 4,133 Accrued administrative services expense 530 376 Total liabilities 969,543 882,563 Commitments and contingencies Shareholders' Equity Common stock, $0.001 par value; 500,000,000 shares authorized; 56,958,440 shares issued and outstanding for both periods 57 57 Capital in excess of par value 1,059,989 1,059,989 Accumulated distributable losses (154,808 ) (137,593 ) Total shareholders' equity 905,238 922,453 Total liabilities and shareholders' equity $ 1,874,781 $ 1,805,016 Net asset value per share of common stock at end of period $ 15.89 $ 16.20 CĪON Investment Corporation Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2022 2021 2022 2021 2021 (unaudited) (unaudited) (unaudited) (unaudited) Investment income Non-controlled, non-affiliated investments Interest income $ 31,749 $ 30,167 $ 62,743 $ 56,269 $ 119,792 Paid-in-kind interest income 4,613 3,853 9,219 9,988 17,306 Fee income 2,554 880 3,503 1,813 5,927 Dividend income — 91 46 173 366 Non-controlled, affiliated investments Interest income 1,545 1,041 2,568 2,442 4,961 Paid-in-kind interest income 874 1,056 2,319 1,879 3,160 Fee income 13 — 506 — — Dividend income 53 933 53 1,760 5,576 Controlled investments Interest income 1,742 — 3,869 — 260 Paid-in-kind interest income 409 — — — — Total investment income 43,552 38,021 85,235 74,324 157,348 Operating expenses Management fees 6,839 8,243 13,494 16,026 31,143 Administrative services expense 781 697 1,501 1,381 3,069 Subordinated incentive fee on income 4,091 — 8,224 — 6,875 General and administrative 1,712 2,563 3,934 5,241 9,805 Interest expense 10,841 7,828 19,300 15,376 31,807 Total operating expenses 24,264 19,331 46,453 38,024 82,699 Net investment income before taxes 19,288 18,690 38,782 36,300 74,649 Income tax expense, including excise tax — 4 11 15 342 Net investment income after taxes 19,288 18,686 38,771 36,285 74,307 Realized and unrealized gains (losses) Net realized gains (losses) on: Non-controlled, non-affiliated investments 180 445 208 471 (4,100 ) Non-controlled, affiliated investments — — (97 ) (1,080 ) 8,010 Controlled investments — — — (3,067 ) (3,067 ) Foreign currency — (4 ) — (11 ) (3 ) Net realized gains (losses) 180 441 111 (3,687 ) 840 Net change in unrealized (depreciation) appreciation on: Non-controlled, non-affiliated investments (17,482 ) 5,957 (24,977 ) 25,195 25,566 Non-controlled, affiliated investments (1,577 ) 2,885 (5,357 ) 16,823 7,261 Controlled investments (1,675 ) — (1,925 ) 3,067 10,790 Net change in unrealized (depreciation) appreciation (20,734 ) 8,842 (32,259 ) 45,085 43,617 Net realized and unrealized (losses) gains (20,554 ) 9,283 (32,148 ) 41,398 44,457 Net (decrease) increase in net assets resulting from operations $ (1,266 ) $ 27,969 $ 6,623 $ 77,683 $ 118,764 Per share information—basic and diluted(1) Net (decrease) increase in net assets per share resulting from operations $ (0.02 ) $ 0.49 $ 0.12 $ 1.37 $ 2.09 Net investment income per share $ 0.34 $ 0.33 $ 0.68 $ 0.64 $ 1.31 Weighted average shares of common stock outstanding 56,958,440 56,747,687 56,958,440 56,750,588 56,808,960 (1) The Company completed a two-to-one reverse stock split, effective as of September 21, 2021. The weighted average shares used in the computation of the net (decrease) increase in net assets per share resulting from operations and net investment income per share reflect the reverse stock split on a retroactive basis. ABOUT CION INVESTMENT CORPORATION CION Investment Corporation is a leading publicly listed business development company that had approximately $1.9 billion in total assets as of June 30, 2022. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and an affiliate of CION. For more information, please visit www.cionbdc.com. FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss CION’s plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters. These statements represent CION’s belief regarding future events that, by their nature, are uncertain and outside of CION’s control. There are likely to be events in the future, however, that CION is not able to predict accurately or control. Any forward-looking statement made by CION in this press release speaks only as of the date on which it is made. Factors or events that could cause CION’s actual results to differ, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors CION identifies in the sections entitled “Risk Factors” and “Forward-Looking Statements” in filings CION makes with the SEC, and it is not possible for CION to predict or identify all of them. CION undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. OTHER INFORMATION The information in this press release is summary information only and should be read in conjunction with CION’s Quarterly Report on Form 10-Q, which CION filed with the SEC on August 11, 2022, as well as CION’s other reports filed with the SEC. A copy of CION’s Quarterly Report on Form 10-Q and CION’s other reports filed with the SEC can be found on CION’s website at www.cionbdc.com and the SEC’s website at www.sec.gov.
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BDC Weekly Review: Q2 Got Unlucky With Credit Spreads
We take a look at the action in BDCs through the third week of July and highlight some of the key themes we are watching. BDCs continued their rally over July, supported by higher stocks and tighter credit spreads.
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CION Investment Corporation - Bad Timing For This 14% Yielding BDC
CION is a BDC that went public in October 2021 after 9 years non-publicly traded. The stock trades at a deep discount to NAV and pays out a well-covered distribution approaching 14% annual yield.
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Why Shares Of CION Investment Corp. Are Trading Higher Today
CION Investment (NYSE: CION) shares are trading higher after the company announced expansion of its share repurchase policy by 20% to up to $60 million. Additionally, CION will enter into a trading plan to facilitate repurchases under the Policy during its first available trading window after the.
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CION Investment Corporation Announces Presentation at Investor Conferences
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today announced that its management will be presenting at the following investor conferences: Wells Fargo BDC Power Alley Conference (virtual event) - June 9: CION's management will be hosting virtual one-on-one and small group meetings throughout the day. LD Micro Invitational Conference (in-person event) to be held at the Four Seasons Westlake Village hotel in California - June 8: CION's management w
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CION Investment Corporation (CION) Management on Q1 2022 Results - Earnings Call Transcript
CION Investment Corporation (NYSE:CION ) Q1 2022 Earnings Conference Call May 12, 2022 11:00 AM ET Company Participants Jeehae Linford - Investor Relations Mark Gatto - Co-Founder, Co-Chairman & Co-Chief Executive Officer Michael Reisner - Co-Founder & Co-Chairman & Co-Chief Executive Officer Gregg Bresner - President & Chief Investment Officer Keith Franz - Chief Financial Officer & Treasurer Conference Call Participants Jenaro Cardona-Fox - North Ground Capital Operator Greetings and welcome to the CION Investment Corp. First Quarter 2022 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.
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CION Investment Corporation Reports March 31, 2022 Financial Results
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today reported financial results for the first quarter ended March 31, 2022 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. QUARTERLY AND OTHER HIGHLIGHTS Net investment income and earnings per share for the quarter ended March 31, 2022 were $0.34 per share and $0.14 per share, respectively; Net asset value per share was $16.20 as of March 31, 2022 compared to $16.34 as of December 31, 2021. The decrease was primarily due to mark-to-market adjustments caused by wider credit spreads and price declines on our liquid portfolio during the quarter; As of March 31, 2022, the Company had $875 million of total principal amount of debt outstanding, of which 82% was comprised of senior secured bank debt and 18% was comprised of unsecured debt. The Company’s debt-to-equity ratio was 0.95x as of March 31, 2022 compared to 0.89x as of December 31, 2021; As of March 31, 2022, the Company had total investments at fair value of $1,740 million in 115 portfolio companies across 22 industries. The investment portfolio was comprised of 93.9% senior secured loans, including 91.8% in first lien investments;1 During the quarter, the Company had new investment commitments of $155 million, funded new investment commitments of $123 million, funded previously unfunded commitments of $15 million, and had sales and repayments totaling $61 million, resulting in a net funded portfolio change of $77 million; The Company did not place any new investments on non-accrual status during the quarter. As of March 31, 2022, investments on non-accrual status amounted to 0.6% and 2.3% of the total investment portfolio at fair value and amortized cost, respectively; On March 28, 2022, the Company, through its wholly-owned special purpose financing subsidiary, increased the aggregate principal amount available for borrowing from JPMorgan Chase Bank, National Association, by $100 million, from $575 million to $675 million; and Subsequent to quarter end, on April 27, 2022, the Company entered into a 5-year floating rate unsecured term loan agreement with More Provident Funds and Pension Ltd. under which the Company borrowed $50 million. DISTRIBUTIONS For the quarter ended March 31, 2022, the Company paid a regular quarterly distribution totaling $15.9 million, or $0.28 per share; and As previously announced, the Company's co-chief executive officers declared a second quarter 2022 regular distribution of $0.28 per share payable on June 8, 2022 to shareholders of record as of June 1, 2022. “Our first quarter results reflect continued momentum from the fourth quarter, as we generated net investment income of $0.34 per share. We experienced greater operational efficiency as the result of measured portfolio growth during the quarter. Accordingly, investment activity was solid during the quarter as we generated $77 million in net funded portfolio activity. Finally, while we continue to closely monitor market and economic conditions that could impact our portfolio companies, overall credit quality of the portfolio remained healthy for the quarter,” said Mark Gatto, co-Chief Executive Officer of CION. “We expanded our senior secured credit facility with JPMorgan by $100 million to $675 million in total committed amount and subsequent to quarter end, we closed a $50 million unsecured term loan from an existing lender. With this added flexibility and leverage capacity, we are well positioned to continue to become more fully invested over time,” added Michael A. Reisner, co-Chief Executive Officer of CION. SELECTED FINANCIAL HIGHLIGHTS As of (in thousands, except per share data) March 31, 2022 December 31, 2021 Investment portfolio, at fair value1 $ 1,739,534 $ 1,666,122 Total debt outstanding2 $ 875,000 $ 830,000 Net assets $ 922,453 $ 930,512 Net asset value per share $ 16.20 $ 16.34 Debt-to-equity 0.95x 0.89x Three Months Ended (in thousands, except share and per share data) March 31, 2022 December 31, 2021 Total investment income $ 41,683 $ 40,404 Total operating expenses and income tax expense $ 22,200 $ 21,994 Net investment income after taxes $ 19,483 $ 18,410 Net realized losses $ (69 ) $ (15,209 ) Net unrealized (losses) gains $ (11,525 ) $ 12,772 Net increase in net assets resulting from operations $ 7,889 $ 15,973 Net investment income per share $ 0.34 $ 0.32 Net realized and unrealized losses per share $ (0.20 ) $ (0.04 ) Earnings per share $ 0.14 $ 0.28 Weighted average shares outstanding 56,958,440 56,958,440 Distributions declared per share $ 0.28 $ 0.46* * Includes a special distribution of $0.20 per share during the quarter ended December 31, 2021. Total investment income for the three months ended March 31, 2022 and December 31, 2021 was $41.7 million and $40.4 million, respectively. The increase in investment income was primarily driven by an increase in the size of the Company's investment portfolio. Operating expenses for the three months ended March 31, 2022 and December 31, 2021 were $22.2 million and $22.0 million, respectively. There were no significant changes to the Company's operating expenses from the three months ended December 31, 2021 to the three months ended March 31, 2022. PORTFOLIO AND INVESTMENT ACTIVITY1 A summary of the Company's investment activity for the three months ended March 31, 2022 is as follows: New Investment Commitments Sales and Repayments Investment Type $ in Thousands % of Total $ in Thousands % of Total Senior secured first lien debt $ 154,148 99 % $ 60,842 100 % Collateralized securities and structured products - equity — — 190 — Equity 1,125 1 % — — Total $ 155,273 100 % $ 61,032 100 % During the three months ended March 31, 2022, new investment commitments were made across 8 new portfolio companies and 7 existing portfolio companies. Sales and repayments were primarily driven by the full sale or repayment of investments in 6 portfolio companies. As a result, the number of portfolio companies increased from 113 as of December 31, 2021 to 115 as of March 31, 2022. PORTFOLIO SUMMARY1 As of March 31, 2022, the Company’s investments consisted of the following: Investments at Fair Value Investment Type $ in Thousands % of Total Senior secured first lien debt $ 1,597,364 91.8 % Senior secured second lien debt 36,875 2.1 % Collateralized securities and structured products - equity 2,632 0.2 % Unsecured debt 27,280 1.6 % Equity 75,383 4.3 % Total $ 1,739,534 100.0 % The following table presents certain selected information regarding the Company’s investments: As of March 31, 2022 December 31, 2021 Number of portfolio companies 115 113 Percentage of performing loans bearing a floating rate3 90.1 % 88.8 % Percentage of performing loans bearing a fixed rate3 9.9 % 11.2 % Yield on debt and other income producing investments at amortized cost4 8.90 % 8.89 % Yield on performing loans at amortized cost4 9.12 % 9.16 % Yield on total investments at amortized cost 8.64 % 8.62 % Weighted average leverage (net debt/EBITDA)5 4.74x 4.52x Weighted average interest coverage5 3.73x 3.39x Median EBITDA6 $32.8 million $36.3 million As of March 31, 2022, investments on non-accrual status represented 0.6% and 2.3% of the total investment portfolio at fair value and amortized cost, respectively. LIQUIDITY AND CAPITAL RESOURCES As of March 31, 2022, the Company had $875 million of total principal amount of debt outstanding, comprised of $720 million of outstanding borrowings under its senior secured credit facilities, $125 million of senior unsecured notes due 2026, and a $30 million unsecured term loan due 2024. The combined weighted average interest rate on debt outstanding was 3.72% for the quarter ended March 31, 2022. As of March 31, 2022, the Company had $33 million in cash and short-term investments and $105 million available under its financing arrangements.2 EARNING CONFERENCE CALL CION will host an earnings conference call on Thursday, May 12, 2022 at 11:00 am Eastern Time to discuss its financial results for the first quarter ended March 31, 2022. Please visit the Investor Resources - Events and Presentations section of the Company’s website at www.cionbdc.com for a slide presentation that complements the earnings conference call. All interested parties are invited to participate via telephone or listen via the live webcast, which can be accessed by clicking the following link: CION Investment Corporation First Quarter 2022 Financial Results Webcast. Domestic callers can access the conference call by dialing (877) 445-9755. International callers can access the conference call by dialing +1 (201) 493-6744. All callers are asked to dial in approximately 10 minutes prior to the call. An archived replay will be available on a webcast link located in the Investor Resources - Events and Presentations section of CION’s website. ENDNOTES 1. The discussion of the investment portfolio excludes short-term investments. 2. Total debt outstanding excludes netting of debt issuance costs of $7.6 million as of March 31, 2022 and December 31, 2021. 3. The fixed versus floating composition has been calculated as a percentage of performing debt investments measured on a fair value basis, including income producing preferred stock investments and excludes investments, if any, on non-accrual status. 4. Computed based on the (a) annual actual interest rate or yield earned plus amortization of fees and discounts on the performing debt and other income producing investments as of the reporting date, divided by (b) the total performing debt and other income producing investments (excluding investments on non-accrual status) at amortized cost. This calculation excludes exit fees that are receivable upon repayment of the investment. 5. For a particular portfolio company, we calculate the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compare that amount to measures of cash flow available to service the net debt. To calculate net debt, we include debt that is both senior and pari passu to the tranche of debt owned by us but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by us relative to other senior and junior creditors of a portfolio company. We typically calculate cash flow available for debt service at a portfolio company by taking EBITDA for the trailing twelve-month period. Weighted average net debt to EBITDA is weighted based on the fair value of our performing debt investments and excluding investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. For a particular portfolio company, we also calculate the level of contractual interest expense owed by the portfolio company, and compare that amount to EBITDA (“interest coverage ratio”). We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual interest obligations of the portfolio company. Weighted average interest coverage is weighted based on the fair value of our performing debt investments, excluding investments where interest coverage may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Portfolio company statistics, including EBITDA, are derived from the financial statements most recently provided to us for each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by us and may reflect a normalized or adjusted amount. 6. Median EBITDA is calculated based on the portfolio company's EBITDA as of our initial investment. CĪON Investment Corporation Consolidated Balance Sheets (in thousands, except share and per share amounts) March 31, 2022 December 31, 2021 (unaudited) Assets Investments, at fair value: Non-controlled, non-affiliated investments (amortized cost of $1,576,679 and $1,617,126, respectively) $ 1,533,188 $ 1,581,124 Non-controlled, affiliated investments (amortized cost of $144,704 and $91,476, respectively) 130,934 81,490 Controlled investments (amortized cost of $83,702 and $83,702, respectively) 91,175 91,425 Total investments, at fair value (amortized cost of $1,805,085 and $1,792,304, respectively) 1,755,297 1,754,039 Cash 17,500 3,774 Interest receivable on investments 21,298 21,549 Receivable due on investments sold and repaid 7,303 2,854 Prepaid expenses and other assets 3,618 466 Total assets $ 1,805,016 $ 1,782,682 Liabilities and Shareholders' Equity Liabilities Financing arrangements (net of unamortized debt issuance costs of $7,636 and $7,628, respectively) $ 867,364 $ 822,372 Payable for investments purchased — 11,327 Accounts payable and accrued expenses 862 1,922 Interest payable 3,173 4,339 Accrued management fees 6,655 6,673 Accrued subordinated incentive fee on income 4,133 3,942 Accrued administrative services expense 376 1,595 Total liabilities 882,563 852,170 Commitments and contingencies Shareholders' Equity Common stock, $0.001 par value; 500,000,000 shares authorized; 56,958,440 shares issued and outstanding for both periods 57 57 Capital in excess of par value 1,059,989 1,059,989 Accumulated distributable losses (137,593 ) (129,534 ) Total shareholders' equity 922,453 930,512 Total liabilities and shareholders' equity $ 1,805,016 $ 1,782,682 Net asset value per share of common stock at end of period $ 16.20 $ 16.34 CĪON Investment Corporation Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended March 31, 2022 2021 (unaudited) (unaudited) Investment income Non-controlled, non-affiliated investments Interest income $ 30,994 $ 26,102 Paid-in-kind interest income 4,606 6,135 Fee income 949 933 Dividend income 46 82 Non-controlled, affiliated investments Interest income 1,023 1,401 Paid-in-kind interest income 1,445 823 Fee income 493 — Dividend income — 827 Controlled investments Interest income 2,127 — Total investment income 41,683 36,303 Operating expenses Management fees 6,655 7,783 Administrative services expense 720 684 Subordinated incentive fee on income 4,133 — General and administrative 2,222 2,678 Interest expense 8,459 7,548 Total operating expenses 22,189 18,693 Net investment income before taxes 19,494 17,610 Income tax expense, including excise tax 11 11 Net investment income after taxes 19,483 17,599 Realized and unrealized (losses) gains Net realized (losses) gains on: Non-controlled, non-affiliated investments 28 26 Non-controlled, affiliated investments (97 ) (1,080 ) Controlled investments — (3,067 ) Foreign currency — (7 ) Net realized losses (69 ) (4,128 ) Net change in unrealized (depreciation) appreciation on: Non-controlled, non-affiliated investments (7,495 ) 19,238 Non-controlled, affiliated investments (3,780 ) 13,938 Controlled investments (250 ) 3,067 Net change in unrealized (depreciation) appreciation (11,525 ) 36,243 Net realized and unrealized (losses) gains (11,594 ) 32,115 Net increase in net assets resulting from operations $ 7,889 $ 49,714 Per share information—basic and diluted(1) Net increase in net assets per share resulting from operations $ 0.14 $ 0.88 Net investment income per share $ 0.34 $ 0.31 Weighted average shares of common stock outstanding 56,958,440 56,753,521 (1) The Company completed a two-to-one reverse stock split, effective as of September 21, 2021. The weighted average shares used in the computation of the net increase in net assets per share resulting from operations and net investment income per share reflect the reverse stock split on a retroactive basis. ABOUT CION INVESTMENT CORPORATION CION Investment Corporation is a leading publicly listed business development company that had approximately $1.8 billion in assets as of March 31, 2022. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and an affiliate of CION. For more information, please visit www.cionbdc.com. FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss CION’s plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters. These statements represent CION’s belief regarding future events that, by their nature, are uncertain and outside of CION’s control. There are likely to be events in the future, however, that CION is not able to predict accurately or control. Any forward-looking statement made by CION in this press release speaks only as of the date on which it is made. Factors or events that could cause CION’s actual results to differ, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors CION identifies in the sections entitled “Risk Factors” and “Forward-Looking Statements” in filings CION makes with the SEC, and it is not possible for CION to predict or identify all of them. CION undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. OTHER INFORMATION The information in this press release is summary information only and should be read in conjunction with CION’s Quarterly Report on Form 10-Q, which CION filed with the SEC on May 12, 2022, as well as CION’s other reports filed with the SEC. A copy of CION’s Quarterly Report on Form 10-Q and CION’s other reports filed with the SEC can be found on CION’s website at www.cionbdc.com and the SEC’s website at www.sec.gov.
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CION Investment Corporation Reports December 31, 2021 Financial Results; Announces Second Quarter 2022 Regular Distribution of $0.28 Per Share
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today reported its financial results for the fourth quarter and fiscal year ended December 31, 2021 and filed its Form 10-K with the U.S. Securities and Exchange Commission. CION also announced that, on March 8, 2022, its co-chief executive officers declared a second quarter 2022 regular distribution of $0.28 per share payable on June 8, 2022 to shareholders of record as of June 1, 2022. QUARTERLY HIGHLIGHTS On December 21, 2021, the Company formed a joint venture partnership with an affiliate of EagleTree Capital, LP to jointly pursue debt opportunities and special situation, crossover, subordinated and other junior capital investments; On December 30, 2021, the Company received shareholder approval to reduce its asset coverage ratio requirement from 200% to 150%, effective December 31, 2021, which allows the Company to increase the maximum amount of leverage that it is permitted to incur; Net investment income per share for the quarter ended December 31, 2021 was $0.32. Earnings per share for the quarter ended December 31, 2021 was $0.28; Net asset value per share was $16.34 as of December 31, 2021 compared to $16.52 as of September 30, 2021. The decrease was primarily due to the year-end special distribution of $0.20 per share that was paid in the fourth quarter; As of December 31, 2021, the Company had $830 million of total principal amount of debt outstanding, of which 81% was comprised of senior secured bank debt and 19% was comprised of unsecured debt. The Company’s debt-to-equity ratio was 0.89x as of December 31, 2021 compared to 0.86x as of September 30, 2021; As of December 31, 2021, the Company had total investments at fair value of $1,666 million in 113 portfolio companies across 22 industries. The investment portfolio was comprised of 93.9% senior secured loans, including 91.6% in first lien investments;1 During the quarter, the Company had new investment commitments of $353 million, funded new investment commitments of $339 million, funded previously unfunded commitments of $10 million, and had sales and repayments totaling $319 million, resulting in a net funded portfolio change of $30 million; The Company placed one new investment on non-accrual status during the quarter. As of December 31, 2021, investments on non-accrual status amounted to 0.7% and 2.5% of the total investment portfolio at fair value and amortized cost, respectively; For the quarter ended December 31, 2021, the Company paid distributions totaling $26.5 million, or $0.46 per share, with two record dates, which included a quarterly regular distribution of $0.26 per share and a year-end special distribution of $0.20 per share; and As previously announced, the Company's co-chief executive officers declared a first quarter 2022 regular distribution of $0.28 per share payable on March 30, 2022 to shareholders of record as of March 23, 2022. “Our core portfolio continued to perform well in the fourth quarter, generating net investment income of $0.32 per share. Investment activity was very strong during the quarter as we closed $353 million in new investment commitments, and experienced $319 million in sales and repayments. We previously announced an increase to our quarterly regular distribution from $0.26 per share to $0.28 per share beginning in the first quarter of 2022, and we are pleased to maintain this level of distribution for the second quarter of 2022,” said Mark Gatto, co-Chief Executive Officer of CION. “In December, we received shareholder approval to reduce our asset coverage ratio from 200% to 150%, which will enable us to potentially increase our leverage as we seek to further drive portfolio growth and commensurate investment income,” added Michael A. Reisner, co-Chief Executive Officer of CION. “Additionally, we announced the formation of a joint venture partnership with a longstanding, experienced partner that we believe will provide us the opportunity to expand our investment focus.” SELECTED FINANCIAL HIGHLIGHTS As of As of (in thousands, except per share data) December 31, 2021 September 30, 2021 Investment portfolio, at fair value1 $ 1,666,122 $ 1,630,464 Total debt outstanding2 $ 830,000 $ 805,000 Net assets $ 930,512 $ 941,013 Net asset value per share $ 16.34 $ 16.52 Debt-to-equity 0.89x 0.86x (in thousands, except share and per share data) Three Months Ended December 31, 2021 Three Months Ended September 30, 2021 Total investment income $ 40,404 $ 42,620 Total operating expenses and income tax expense $ 21,994 $ 23,008 Net investment income after taxes $ 18,410 $ 19,612 Net realized (losses) gains $ (15,209 ) $ 19,736 Net unrealized gains (losses) $ 12,772 $ (14,240 ) Net increase in net assets resulting from operations $ 15,973 $ 25,108 Net investment income per share $ 0.32 $ 0.35 Net realized and unrealized (losses) gains per share $ (0.04 ) $ 0.09 Earnings per share $ 0.28 $ 0.44 Weighted average shares outstanding 56,958,440 56,774,323 Distributions declared per share $ 0.46 $ 0.26 Total investment income for the three months ended December 31, 2021 and September 30, 2021 was $40.4 million and $42.6 million, respectively. The decrease in investment income was primarily driven by a decrease in dividend income related to the exit of the Conisus Holdings, Inc. investment during the three months ended September 30, 2021. Operating expenses for the three months ended December 31, 2021 and September 30, 2021 were $22.0 million and $23.0 million, respectively. Operating expenses decreased by $1.0 million primarily due to lower management fees incurred as a result of the change in the calculation of the management fee during the fourth quarter and lower non-recurring expenses associated with the listing of the Company's common stock on the New York Stock Exchange, partially offset by higher incentive fees, administrative services expenses and non-recurring shareholder proxy solicitation costs. PORTFOLIO AND INVESTMENT ACTIVITY1 A summary of the Company's investment activity for the three months ended December 31, 2021 is as follows: New Investment Commitments Sales and Repayments Investment Type $ in Thousands % of Total $ in Thousands % of Total Senior secured first lien debt $ 311,036 88 % $ 200,599 63 % Senior secured second lien debt — — 60,145 19 % Collateralized securities and structured products - equity — — 10,373 3 % Unsecured debt 20,000 6 % — — Equity 22,133 6 % 47,525 15 % Total $ 353,169 100 % $ 318,642 100 % During the three months ended December 31, 2021, new investment commitments were made across 13 new portfolio companies and 5 existing portfolio companies. Sales and repayments were primarily driven by the full sale or repayment of investments in 25 portfolio companies. As a result, the number of portfolio companies decreased from 126 as of September 30, 2021 to 113 as of December 31, 2021. PORTFOLIO SUMMARY1 As of December 31, 2021, the Company’s investments consisted of the following: Investments at Fair Value Investment Type $ in Thousands % of Total Senior secured first lien debt $ 1,526,989 91.6 % Senior secured second lien debt 38,583 2.3 % Collateralized securities and structured products - equity 2,998 0.2 % Unsecured debt 26,616 1.6 % Equity 70,936 4.3 % Total $ 1,666,122 100.0 % The following table presents certain selected information regarding the Company’s investments: As of December 31, 2021 September 30, 2021 Number of portfolio companies 113 126 Percentage of performing loans bearing a floating rate3 88.8 % 93.1 % Percentage of performing loans bearing a fixed rate3 11.2 % 6.9 % Yield on debt and other income producing investments at amortized cost4 8.89 % 8.95 % Yield on performing loans at amortized cost4 9.16 % 8.92 % Yield on total investments at amortized cost 8.62 % 8.31 % Weighted average leverage (net debt/EBITDA)5 4.52x 4.63x Weighted average interest coverage5 3.39x 3.50x Median EBITDA6 $36.3 million $43.1 million As of December 31, 2021, investments on non-accrual status represented 0.7% and 2.5% of the total investment portfolio at fair value and amortized cost, respectively. LIQUIDITY AND CAPITAL RESOURCES As of December 31, 2021, the Company had $830 million of total principal amount of debt outstanding, comprised of $675 million of outstanding borrowings under its senior secured credit facilities, $125 million of senior unsecured notes due 2026, and $30 million of unsecured notes due 2024. The combined weighted average interest rate on debt outstanding was 3.64% for the quarter ended December 31, 2021. As of December 31, 2021, the Company had $92 million in cash and short term investments and $50 million available under its financing arrangements.2 EARNING CONFERENCE CALL CION will host an earnings conference call on Thursday, March 10, 2022 at 11:00 am Eastern Time to discuss its financial results for the fourth quarter and fiscal year ended December 31, 2021. Please visit the Investor Resources - Events and Presentations section of the Company’s website at www.cionbdc.com for a slide presentation that complements the earnings conference call. All interested parties are invited to participate via telephone or listen via the live webcast, which can be accessed by clicking the following link: CION Investment Corporation Fourth Quarter and Full Year 2021 Financial Results Webcast. Domestic callers can access the conference call by dialing (877) 445-9755. International callers can access the conference call by dialing +1 (201) 493-6744. All callers are asked to dial in approximately 10 minutes prior to the call. An archived replay will be available on a webcast link located in the Investor Resources - Events and Presentations section of CION’s website. ENDNOTES The discussion of the investment portfolio excludes short-term investments. Total debt outstanding excludes netting of debt issuance costs of $7.6 million and $8.3 million as of December 31, 2021 and September 30, 2021, respectively. The fixed versus floating composition has been calculated as a percentage of performing debt investments measured on a fair value basis, including income producing preferred stock investments and excludes investments, if any, on non-accrual status. Computed based on the (a) annual actual interest rate or yield earned plus amortization of fees and discounts on the performing debt and other income producing investments as of the reporting date, divided by (b) the total performing debt and other income producing investments (excluding investments on non-accrual status) at amortized cost. This calculation excludes exit fees that are receivable upon repayment of the investment. For a particular portfolio company, we calculate the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compare that amount to measures of cash flow available to service the net debt. To calculate net debt, we include debt that is both senior and pari passu to the tranche of debt owned by us but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by us relative to other senior and junior creditors of a portfolio company. We typically calculate cash flow available for debt service at a portfolio company by taking EBITDA for the trailing twelve-month period. Weighted average net debt to EBITDA is weighted based on the fair value of our performing debt investments and excluding investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. For a particular portfolio company, we also calculate the level of contractual interest expense owed by the portfolio company, and compare that amount to EBITDA (“interest coverage ratio”). We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual interest obligations of the portfolio company. Weighted average interest coverage is weighted based on the fair value of our performing debt investments, excluding investments where interest coverage may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Portfolio company statistics, including EBITDA, are derived from the financial statements most recently provided to us for each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by us and may reflect a normalized or adjusted amount. Median EBITDA is calculated based on the portfolio company's EBITDA as of our initial investment. CĪON Investment Corporation Consolidated Balance Sheets (in thousands, except share and per share amounts) December 31, 2021 September 30, 2021 (unaudited) Assets Investments, at fair value: Non-controlled, non-affiliated investments (amortized cost of $1,617,126 and $1,658,592, respectively) $ 1,581,124 $ 1,629,201 Non-controlled, affiliated investments (amortized cost of $91,476 and $138,742, respectively) 81,490 117,097 Controlled investments (amortized cost of $83,702 and $0, respectively) 91,425 — Total investments, at fair value (amortized cost of $1,792,304 and $1,797,334, respectively) 1,754,039 1,746,298 Cash 3,774 2,159 Interest receivable on investments 21,549 21,283 Receivable due on investments sold and repaid 2,854 19,559 Dividends receivable on investments — 135 Prepaid expenses and other assets 466 474 Total assets $ 1,782,682 $ 1,789,908 Liabilities and Shareholders' Equity Liabilities Financing arrangements (net of unamortized debt issuance costs of $7,628 and $8,327, respectively) $ 822,372 $ 796,673 Payable for investments purchased 11,327 33,360 Accounts payable and accrued expenses 1,922 3,509 Interest payable 4,339 2,838 Accrued management fees 6,673 8,443 Accrued subordinated incentive fee on income 3,942 2,933 Accrued administrative services expense 1,595 1,139 Total liabilities 852,170 848,895 Commitments and contingencies Shareholders' Equity Common stock, $0.001 par value; 500,000,000 shares authorized; 56,958,440 shares issued and outstanding for both periods 57 57 Capital in excess of par value 1,059,989 1,059,989 Accumulated distributable losses (129,534 ) (119,033 ) Total shareholders' equity 930,512 941,013 Total liabilities and shareholders' equity $ 1,782,682 $ 1,789,908 Net asset value per share of common stock at end of period $ 16.34 $ 16.52 CĪON Investment Corporation Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 (unaudited) (unaudited) Investment income Non-controlled, non-affiliated investments Interest income $ 32,487 $ 27,340 $ 119,792 $ 125,395 Paid-in-kind interest income 3,349 7,125 17,306 17,078 Fee income 2,571 2,279 5,927 4,393 Dividend income 112 — 366 331 Non-controlled, affiliated investments Interest income 1,094 5,004 4,961 7,883 Paid-in-kind interest income 505 739 3,160 2,082 Dividend income 26 762 5,576 3,012 Fee income — 150 — 150 Controlled investments Paid-in-kind interest income 260 — 260 — Dividend income — — — 3,518 Total investment income 40,404 43,399 157,348 163,842 Operating expenses Management fees 6,674 7,668 31,143 31,828 Administrative services expense 966 672 3,069 2,465 Subordinated incentive fee on income 3,942 4,323 6,875 7,631 General and administrative 1,855 1,401 9,805 6,085 Interest expense 8,256 7,361 31,807 36,837 Total operating expenses 21,693 21,425 82,699 84,846 Net investment income before taxes 18,711 21,974 74,649 78,996 Income tax expense, including excise tax 301 243 342 268 Net investment income after taxes 18,410 21,731 74,307 78,728 Realized and unrealized (losses) gains Net realized (losses) gains on: Non-controlled, non-affiliated investments (5,444 ) (12,181 ) (4,100 ) (69,687 ) Non-controlled, affiliated investments (9,766 ) — 8,010 (211 ) Controlled investments — — (3,067 ) — Foreign currency 1 2 (3 ) 26 Net realized (losses) gains (15,209 ) (12,179 ) 840 (69,872 ) Net change in unrealized appreciation (depreciation) on: Non-controlled, non-affiliated investments (6,566 ) 39,721 25,566 1,110 Non-controlled, affiliated investments 11,615 (1,998 ) 7,261 (17,945 ) Controlled investments 7,723 (59 ) 10,790 (3,043 ) Net change in unrealized appreciation (depreciation) 12,772 37,664 43,617 (19,878 ) Net realized and unrealized (losses) gains (2,437 ) 25,485 44,457 (89,750 ) Net increase (decrease) in net assets resulting from operations $ 15,973 $ 47,216 $ 118,764 $ (11,022 ) Per share information—basic and diluted(1) Net increase (decrease) in net assets per share resulting from operations $ 0.28 $ 0.83 $ 2.09 $ (0.19 ) Net investment income per share $ 0.32 $ 0.38 $ 1.31 $ 1.39 Weighted average shares of common stock outstanding 56,958,440 57,056,443 56,808,960 56,817,920 (1) The Company completed a two-to-one reverse stock split, effective as of September 21, 2021. The weighted average shares used in the computation of the net increase (decrease) in net assets per share resulting from operations and net investment income per share reflect the reverse stock split on a retroactive basis. ABOUT CION INVESTMENT CORPORATION CION Investment Corporation is a leading publicly listed business development company that had approximately $1.8 billion in assets as of December 31, 2021. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and an affiliate of CION. For more information, please visit www.cionbdc.com. FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss CION’s plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters. These statements represent CION’s belief regarding future events that, by their nature, are uncertain and outside of CION’s control. There are likely to be events in the future, however, that CION is not able to predict accurately or control. Any forward-looking statement made by CION in this press release speaks only as of the date on which it is made. Factors or events that could cause CION’s actual results to differ, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors CION identifies in the sections entitled “Risk Factors” and “Forward-Looking Statements” in filings CION makes with the SEC, and it is not possible for CION to predict or identify all of them. CION undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. OTHER INFORMATION The information in this press release is summary information only and should be read in conjunction with CION’s Annual Report on Form 10-K, which CION filed with the SEC on March 9, 2022, as well as CION’s other reports filed with the SEC. A copy of CION’s Annual Report on Form 10-K and CION’s other reports filed with the SEC can be found on CION’s website at www.cionbdc.com and the SEC’s website at www.sec.gov.
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CION Investment Corporation Reports September 30, 2021 Financial Results and Announces First Quarter 2022 Distribution of $0.28 Per Share
NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today reported its financial results for the third quarter ended September 30, 2021 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. The Company completed a previously announced 2-to-1 reverse stock split effective September 21, 2021. Accordingly, share and per share amounts in this press release have been retroactively adjusted to reflect the 2-to-1 reverse stock split. CION also announced that, on November 12, 2021, its co-chief executive officers declared a regular first quarter distribution of $0.28 per share payable on March 30, 2022 to shareholders of record as of March 23, 2022, which represents an increase of $0.02 per share, or 8%, from the regular fourth quarter distribution of $0.26 per share. QUARTERLY HIGHLIGHTS Net investment income per share for the quarter ended September 30, 2021 was $0.35 compared to $0.33 for the quarter ended June 30, 2021; Earnings per share for the quarter ended September 30, 2021 was $0.44 compared to $0.49 for the quarter ended June 30, 2021; Net asset value per share increased $0.18, or 1.1%, to $16.52 as of September 30, 2021 from $16.34 as of June 30, 2021; As of September 30, 2021, the Company had $805 million of total principal amount of debt outstanding of which 81% was comprised of senior secured bank debt and 19% was comprised of unsecured debt. The Company’s debt-to-equity ratio was 0.86x as of September 30, 2021 compared to 0.87x as of June 30, 2021; As of September 30, 2021, the Company had total investments at fair value of $1,630 million in 126 portfolio companies across 23 industries. The investment portfolio was comprised of 93.7% senior secured loans, including 87.6% in first lien investments;1 During the quarter, the Company had new investment commitments of $179.0 million, funded new investment commitments of $157.3 million, funded previously unfunded commitments of $7.7 million, and had sales and repayments totaling $223.2 million, resulting in a net funded portfolio change of $(58.2) million; The Company placed one new investment on non-accrual status during the quarter, and as of September 30, 2021, investments on non-accrual status amounted to 0.9% and 2.5% of the total investment portfolio at fair value and amortized cost, respectively; For the quarter ended September 30, 2021, the Company paid distributions totaling $15.0 million, or $0.265 per share, with three record dates; As previously announced, the Company's co-chief executive officers declared a fourth quarter 2021 distribution of $0.26 per share payable on December 8, 2021 to shareholders of record as of December 1, 2021. In addition, the Company also previously announced a special year-end distribution expected to be in the range of $0.14 to $0.20 per share payable on December 23, 2021 to shareholders of record as of December 16, 2021. “We are reporting solid third quarter results highlighted by consistent earnings, distribution coverage and net realized gains of $19.7 million. Net asset value per share increased to $16.52, marking the sixth straight quarter-to-quarter increase,” said Mark Gatto, co-Chief Executive Officer of CION. “Looking ahead, we seek to optimize our balance sheet for added flexibility and growth opportunities. We continue to have a favorable outlook for the remainder of the year and believe we are well positioned to execute on our initiatives as we seek to generate value for shareholders,” added Michael A. Reisner, co-Chief Executive Officer of CION. SELECTED FINANCIAL HIGHLIGHTS As of As of (in thousands, except per share data) September 30, 2021 June 30, 2021 Investment portfolio, at fair value1 $ 1,630,464 $ 1,675,554 Total debt outstanding2 $ 805,000 $ 805,000 Net assets $ 941,013 $ 925,880 Net asset value per share $ 16.52 $ 16.34 Debt-to-equity 0.86x 0.87x (in thousands, except share and per share data) Three Months Ended September 30, 2021 Three Months Ended June 30, 2021 Total investment income $ 42,620 $ 38,021 Net investment income $ 19,612 $ 18,686 Net realized gains $ 19,736 $ 441 Net unrealized (losses) gains $ (14,240 ) $ 8,842 Net increase in net assets resulting from operations $ 25,108 $ 27,969 Net investment income per share $ 0.35 $ 0.33 Earnings per share $ 0.44 $ 0.49 Weighted average shares outstanding 56,774,323 56,747,683 Distributions declared per share $ 0.26 $ 0.26 Total investment income for the three months ended September 30, 2021 and June 30, 2021 was $42.6 million and $38.0 million, respectively. The increase in investment income was primarily driven by an increase in dividend income related to the exit of the Conisus Holdings, Inc. investment. Operating expenses for the three months ended September 30, 2021 and June 30, 2021 were $23.0 million and $19.3 million, respectively. Operating expenses increased by $3.7 million primarily due to a change in the calculation of the incentive fee during the quarter, higher interest expense as a result of higher average borrowings, non-recurring expenses associated with the listing of the Company's common stock on the New York Stock Exchange and non-recurring shareholder proxy solicitation costs. PORTFOLIO AND INVESTMENT ACTIVITY1 A summary of the Company's investment activity for the three months ended September 30, 2021 is as follows: New Investment Commitments Sales and Repayments Investment Type $ in Thousands % of Total $ in Thousands % of Total Senior secured first lien debt $ 175,395 98 % $ 144,379 65 % Senior secured second lien debt — — 42,785 19 % Collateralized securities and structured products - equity — — 900 — Equity 3,560 2 % 35,150 16 % Total $ 178,955 100 % $ 223,214 100 % During the three months ended September 30, 2021, new investment commitments were made across 9 new portfolio companies and 11 existing portfolio companies. Sales and repayments were primarily driven by the full repayment of investments by 15 portfolio companies. As a result, the number of portfolio companies decreased from 132 as of June 30, 2021 to 126 as of September 30, 2021. PORTFOLIO SUMMARY1 As of September 30, 2021, the Company’s investments consisted of the following: Investments at Fair Value Investment Type $ in Thousands % of Total Senior secured first lien debt $ 1,428,556 87.6 % Senior secured second lien debt 99,499 6.1 % Collateralized securities and structured products - equity 13,012 0.8 % Unsecured debt 5,551 0.3 % Equity 83,846 5.2 % Total $ 1,630,464 100.0 % The following table presents certain selected information regarding the Company’s investments: As of September 30, 2021 June 30, 2021 Number of portfolio companies 126 132 Percentage of performing loans bearing a floating rate3 93.1% 92.6% Percentage of performing loans bearing a fixed rate3 6.9% 7.4% Yield on debt and other income producing investments at amortized cost4 8.95% 9.03% Yield on performing debt at amortized cost4 8.92% 8.95& Yield on total investments at amortized cost 8.31% 8.50% Weighted average leverage (net debt/EBITDA)5 4.63x 4.59x Weighted average interest coverage5 3.50x 3.14x Median EBITDA6 $43.1 million $49.0 million As of September 30, 2021, investments on non-accrual status represented 0.9% and 2.5% of the total investment portfolio at fair value and amortized cost, respectively. LIQUIDITY AND CAPITAL RESOURCES As of September 30, 2021, the Company had $805 million of total principal amount of debt outstanding, comprised of $650 million outstanding borrowings under its senior secured credit facilities, $125 million of senior unsecured notes due 2026, and $30 million of unsecured notes due 2024. The combined weighted average interest rate on debt outstanding was 3.68% for the quarter ended September 30, 2021. As of September 30, 2021, the Company had $118 million in cash and short term investments and $75 million available under its financing arrangements.2 EARNING CONFERENCE CALL CION will host an earnings conference call on Monday, November 15, 2021 at 11:00 am Eastern Time to discuss its financial results for the quarter ended September 30, 2021. Please visit the Investor Resources - Events and Presentations section of the Company’s website at www.cionbdc.com for a slide presentation that complements the earnings conference call. All interested parties are invited to participate via telephone or listen via the live webcast, which can be accessed by clicking the following link: CION Investment Corporation Third Quarter 2021 Financial Results Webcast. Domestic callers can access the conference call by dialing (877) 445-9755. International callers can access the conference call by dialing +1 (201) 493-6744. All callers are asked to dial in approximately 10 minutes prior to the call. An archived replay will be available on a webcast link located in the Investor Resources - Events and Presentations section of CION’s website. ENDNOTES CĪON Investment Corporation Consolidated Balance Sheets (in thousands, except share and per share amounts) September 30, 2021 December 31, 2020 (unaudited) Assets Investments, at fair value: Non-controlled, non-affiliated investments (amortized cost of $1,658,592 and $1,501,529, respectively) $ 1,629,201 $ 1,440,004 Non-controlled, affiliated investments (amortized cost of $138,742 and $134,184, respectively) 117,097 116,895 Controlled investments (amortized cost of $0 and $15,539, respectively) — 12,472 Total investments, at fair value (amortized cost of $1,797,334 and $1,651,252, respectively) 1,746,298 1,569,371 Cash 2,159 19,914 Interest receivable on investments 21,283 17,484 Receivable due on investments sold and repaid 19,559 6,193 Dividends receivable on investments 135 45 Prepaid expenses and other assets 474 1,788 Total assets $ 1,789,908 $ 1,614,795 Liabilities and Shareholders' Equity Liabilities Financing arrangements (net of unamortized debt issuance costs of $8,327 and $5,044, respectively) $ 796,673 $ 719,956 Payable for investments purchased 33,360 133 Accounts payable and accrued expenses 3,509 694 Interest payable 2,838 2,500 Accrued management fees 8,443 7,668 Accrued subordinated incentive fee on income 2,933 4,323 Accrued administrative services expense 1,139 1,265 Total liabilities 848,895 736,539 Commitments and contingencies Shareholders' Equity Common stock, $0.001 par value; 500,000,000 shares authorized; 56,958,440 and 56,646,867 shares issued and outstanding, respectively 57 57 Capital in excess of par value 1,059,989 1,054,967 Accumulated distributable losses (119,033) (176,768) Total shareholders' equity 941,013 878,256 Total liabilities and shareholders' equity $ 1,789,908 $ 1,614,795 Net asset value per share of common stock at end of period $ 16.52 $ 15.50 CĪON Investment Corporation Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, Year Ended December 31, 2021 2020 2021 2020 2020 (unaudited) (unaudited) (unaudited) (unaudited) Investment income Non-controlled, non-affiliated investments Interest income $ 31,036 $ 30,477 $ 87,305 $ 98,055 $ 125,395 Paid-in-kind interest income 3,969 5,001 13,957 9,953 17,078 Fee income 1,543 773 3,356 2,114 4,393 Dividend income 81 95 254 404 331 Non-controlled, affiliated investments Interest income 1,425 610 3,867 2,879 7,883 Paid-in-kind interest income 776 131 2,655 1,343 2,082 Dividend income 3,790 444 5,550 1,392 3,012 Fee income — — — — 150 Controlled investments Dividend income — 1,356 — 4,303 3,518 Total investment income 42,620 38,887 116,944 120,443 163,842 Operating expenses Management fees 8,443 7,780 24,469 24,160 31,828 Administrative services expense 722 593 2,103 1,793 2,465 Subordinated incentive fee on income 2,933 — 2,933 3,308 7,631 General and administrative 2,709 1,503 7,950 4,684 6,085 Interest expense 8,175 7,570 23,551 29,476 36,837 Total operating expenses 22,982 17,446 61,006 63,421 84,846 Net investment income before taxes 19,638 21,441 55,938 57,022 78,996 Income tax expense, including excise tax 26 21 41 25 268 Net investment income after taxes 19,612 21,420 55,897 56,997 78,728 Realized and unrealized gains (losses) Net realized gain (loss) on: Non-controlled, non-affiliated investments 873 (42,543 ) 1,344 (57,506 ) (69,687 ) Non-controlled, affiliated investments 18,856 — 17,776 (211 ) (211 ) Controlled investments — — (3,067 ) — — Foreign currency 7 32 (4 ) 24 26 Net realized gains (losses) 19,736 (42,511 ) 16,049 (57,693 ) (69,872 ) Net change in unrealized (depreciation) appreciation on: Non-controlled, non-affiliated investments 6,937 58,572 32,132 (38,611 ) 1,110 Non-controlled, affiliated investments (21,177 ) (7,401 ) (4,354 ) (15,947 ) (17,945 ) Controlled investments — 1,007 3,067 (2,984 ) (3,043 ) Net change in unrealized (depreciation) appreciation (14,240 ) 52,178 30,845 (57,542 ) (19,878 ) Net realized and unrealized gains (losses) 5,496 9,667 46,894 (115,235 ) (89,750 ) Net increase (decrease) in net assets resulting from operations $ 25,108 $ 31,087 $ 102,791 $ (58,238 ) $ (11,022 ) Per share information—basic and diluted(1) Net increase (decrease) in net assets per share resulting from operations $ 0.44 $ 0.55 $ 1.81 $ (1.03 ) $ (0.19 ) Weighted average shares of common stock outstanding 56,774,323 56,707,775 56,758,586 56,737,832 56,817,920 ABOUT CION INVESTMENT CORPORATION CION Investment Corporation is a leading publicly listed business development company that had approximately $1.8 billion in assets as of September 30, 2021. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and an affiliate of CION. For more information, please visit www.cionbdc.com. FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss CION’s plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters. These statements represent CION’s belief regarding future events that, by their nature, are uncertain and outside of CION’s control. There are likely to be events in the future, however, that CION is not able to predict accurately or control. Any forward-looking statement made by CION in this press release speaks only as of the date on which it is made. Factors or events that could cause CION’s actual results to differ, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors CION identifies in the sections entitled “Risk Factors” and “Forward-Looking Statements” in filings CION makes with the SEC, and it is not possible for CION to predict or identify all of them. CION undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. OTHER INFORMATION The information in this press release is summary information only and should be read in conjunction with CION’s Quarterly Report on Form 10-Q, which CION filed with the SEC on November 15, 2021, as well as CION’s other reports filed with the SEC. A copy of CION’s Quarterly Report on Form 10-Q and CION’s other reports filed with the SEC can be found on CION’s website at www.cionbdc.com and the SEC’s website at www.sec.gov.
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