UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): November 10, 2022 (
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. Results of Operations and Financial Condition.
Q4 2022 Regular Quarterly Distribution
The board of directors (the “Board”) of CĪON Investment Corporation (“CION”) has delegated to CION’s executive officers the authority to determine the amount, record dates, payment dates and other terms of distributions to shareholders, which will be ratified by the Board on a quarterly basis.
On November 8, 2022, CION’s co-chief executive officers declared a regular quarterly cash distribution of $0.31 per share for the fourth quarter of 2022 payable on December 8, 2022 to shareholders of record as of December 1, 2022. A copy of the press release announcing the foregoing is attached hereto as Exhibit 99.1 and incorporated by reference herein.
Q3 2022 Financial Results
On November 10, 2022, CION issued a press release announcing its financial results for the third quarter ended September 30, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
In connection with its conference call to be held on November 10, 2022 to discuss its financial results for the third quarter ended September 30, 2022, CION has provided an accompanying slide presentation in the Investor Resources – Events and Presentations section of its website at www.cionbdc.com. A copy of the presentation is also attached hereto as Exhibit 99.2 and incorporated by reference herein.
The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, is being “furnished” and shall not be deemed “filed” by CION for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
The information in Item 2.02 of this Current Report on Form 8-K is incorporated by reference into this Item 7.01.
Item 8.01. Other Events.
On November 8, 2022, the Board, including a majority of the Board who are not interested persons, approved the renewal of the administration agreement with CION Investment Management, LLC for a period of twelve months commencing December 17, 2022.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits. |
| 99.1 | Press Release dated November 10, 2022. |
| 99.2 | CĪON Investment Corporation Third Quarter 2022 Earnings Presentation. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
| SIGNATURES |
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CĪON Investment Corporation
| ||
| Date: | November 10, 2022 | By: /s/ Michael A. Reisner |
| Co-Chief Executive Officer |
EXHIBIT LIST
| EXHIBIT NUMBER |
DESCRIPTION |
| 99.1 | Press Release dated November 10, 2022 | |
| 99.2 | CĪON Investment Corporation Third Quarter 2022 Earnings Presentation. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
Exhibit 99.1
CION INVESTMENT CORPORATION REPORTS THIRD QUARTER 2022 FINANCIAL RESULTS
Reports Another Solid Quarterly Performance Across All Key Financial Metrics
Announces Fourth Quarter 2022 Distribution of $0.31 per Share and its Intention to Declare a Special
Year-End Distribution
For Immediate Release
NEW YORK, November 10, 2022 — 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 | 1.05 | x | 1.05 | x | ||||
| 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 | 4.97 | x | 4.67 | x | ||||
| Weighted average interest coverage5 | 2.67 | x | 3.29 | x | ||||
| 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.
ENDNOTES
| 1) | The discussion of the investment portfolio excludes short-term investments. |
| 2) | 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. |
| 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, 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.
| 6) | 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.
CONTACTS
Media
Susan Armstrong
Investor Relations
1-800-343-3736
Analysts and Institutional Investors
Lena Cati
The Equity Group
212-836-9611
Exhibit 99.2
CION Investment Corporation Third Quarter 2022 Earnings Presentation
Disclosures and Forward - Looking Statements 2 The information contained in this earnings presentation should be viewed in conjunction with the earnings conference call of CION Investment Corporation (NYSE : CION) (“CION” or the “Company”) held on November 10 , 2022 as well as the Company’s Quarterly Report on Form 10 - Q for the quarter ended September 30 , 2022 that was filed with the Securities and Exchange Commission (the “SEC”) on November 10 , 2022 . The information contained herein may not be used, reproduced or distributed to others, in whole or in part, for any other purpose without the prior written consent of the Company . This earnings presentation may contain forward - looking statements that involve substantial risks and uncertainties, including the impact of COVID - 19 on the business, future operating results, access to capital and liquidity of the Company and its portfolio companies . 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, including references to assumptions, forecasts of future results, shareholder diversification, institutional research coverage and availability and access to capital . You should read statements that contain these words carefully because they discuss the Company’s plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters . These statements represent the Company’s belief regarding future events that, by their nature, are uncertain and outside of the Company’s control, such as the price at which the Company’s shares of common stock will trade on the NYSE . Any forward - looking statement made by the Company in this earnings presentation speaks only as of the date on which the Company makes it . Factors or events that could cause the Company’s actual results to differ, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors the Company identifies in the sections entitled “Risk Factors” and “Forward - Looking Statements” in filings the Company makes with the SEC, and it is not possible for the Company to predict or identify all of them . The Company 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 . This earnings presentation does not constitute a prospectus and should under no circumstances be understood as an offer to sell or the solicitation of an offer to buy the Company’s common stock or any other securities nor will there be any sale of common stock or any other securities referred to in this earnings presentation in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction . Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by the Company or as legal, accounting or tax advice . An investment in securities of the type described herein presents certain risks . The Company is managed by CION Investment Management, LLC, an affiliate of the Company . Nothing contained herein shall be relied upon as a promise or representation whether as to past or future performance . The information contained in this earnings presentation is summary information that is intended to be considered in the context of other public announcements that the Company may make, by press release or otherwise, from time to time . The Company undertakes no duty or obligation to publicly update or revise the information contained in this earnings presentation, except as required by law . These materials contain information about the Company, certain of its personnel and affiliates and its historical performance . You should not view information related to past performance of the Company as indicative of its future results, the achievement of which cannot be assured . Past performance does not guarantee future results, which may vary . The value of investments and the income derived from investments will fluctuate and can go down as well as up . A loss of principal may occur .
3 (1) The discussion of the investment portfolio excludes short term investments. Third Quarter and Other Highlights – Ended September 30, 2022 The Company completed a 2 - to - 1 reverse stock split effective September 21 , 2021 . Accordingly, share and per share amounts in this presentation have been retroactively adjusted to reflect the 2 - to - 1 reverse stock split . ▪ 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 . 05 x 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 ; and ▪ On August 16 , 2022 , as part of the previously announced $ 60 million share repurchase policy, the Company entered into a 10 b 5 - 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 during the second quarter 2022 ; and ▪ On November 8 , 2022 , the Company’s 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 .
4 Selected Financial Highlights (1) The discussion of the investment portfolio excludes short term investments. (2) Total debt outstanding excludes netting of debt issuance costs. Please refer to page 12 for debt net of issuance costs . (3) Includes a special distribution of $0.20 per share during the quarter ended December 31, 2021.
Investment Activity ▪ New investment commitments for the quarter were $134 million, of which $127 million were funded and $7 million were unfunded. ▪ New investment commitments were made across 6 new portfolio companies and 5 existing portfolio companies. ▪ Fundings of previously unfunded commitments for the quarter were $14 million. ▪ Sales and repayments totaled $155 million for the quarter primarily driven by the full sale or repayment of investments in 8 por tfolio companies. The discussion of the investment portfolio excludes short term investments. Unfunded c ommitments are generally subject to borrowers meeting certain criteria such as compliance with covenants and certain operational metrics. These amounts may remain outstanding until the commitment period of an applicable loan expires, which ma y b e shorter than the loan’s maturity date. 5
6 Portfolio Asset Composition 90% 93% 92% 92% 88% 2% 1% 2% 2% 6% 0% * 0% * 0% * 0% * 1% 2% 2% 2% 2% 0% * 6% 4% 4% 4% 5% $1,797 $1,791 $1,740 $1,666 $1,630 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 End of Period Investments (in millions) * Less than 1%. The discussion of the investment portfolio is at fair value and excludes short term investments. 84% 98% 99% 88% 98% 14% 1% 6% 2% 1% 6% 2% $134 $184 $155 $353 $179 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 New Investment Commitments (in millions) 1%
7 INTERNAL INVESTMENT RISK RATINGS(1) (% of Total Portfolio, Fair Value) Q3 2022 NON - ACCRUAL %(1) Higher Credit Quality Lower Credit Quality Credit Quality of Investments 1.67% 0.42% Amortized Cost Fair Value (1) The discussion of the investment portfolio excludes short term investments. * - Less than 1%.
92% Senior Secured Debt Investments PORTFOLIO BY SECURITY TYPE(4) PORTFOLIO BY INTEREST RATE TYPE(4) 89.8% 2.2% 6.3% 0.1% 1.6% ▪ First Lien Debt (89.8%) ▪ Second Lien Debt (2.2%) ▪ Equity (6.3%) ▪ Collateralized Securities & Structured Products: Equity (0.1%) ▪ Unsecured Debt (1.6%) ▪ Floating Interest Rate Investments (82.9%) ▪ Fixed Interest Rate Investments (10.5%) ▪ Non - Income Producing Investments (6.1%) ▪ Other Income Producing Investments (0.5%) Portfolio Summary 8 ( 1 ) See endnote 4 in our press release filed with the SEC on November 10 , 2022 . ( 2 ) See endnote 5 in our press release filed with the SEC on November 10 , 2022 . ( 3 ) See endnote 6 in our press release filed with the SEC on November 10 , 2022 . ( 4 ) The discussion of the investment portfolio excludes short term investments . 82.9% 10.5% 6.1% 0.5%
Quarterly Operating Results 9
Quarterly Balance Sheet 10
11 Q3 2022 Net Asset Value Bridge Per Share Data * *
12 Total Commitment Amount Principal Amount Outstanding Interest Rate Maturity Date JPM Credit Facility $675 $610 L + 3.10% (2) 5/15/2024 UBS Facility 150 143 L + 3.375% 11/19/2023 Unsecured Notes, 2026 (1) 125 125 4.50% 2/11/2026 2022 Unsecured Term Loan (1) 50 50 S + 3.50% 4/27/2027 2021 Unsecured Term Loan (1) 30 30 5.20% 9/30/2024 Total Debt $1,030 $958 5.4% Debt Summary DEBT MATURITIES ($ in millions) DEBT SCHEDULE ($ in millions) $72 million in available capacity within existing senior secured facilities (1) Investment grade credit rating. (2) $100 million bears interest at a rate of SOFR + 3.10% and a LIBOR to SOFR credit spread adjustment of 0.15%.
13 Distribution Per Share and Distribution Coverage 1