Cion Investment Corporation · NYSE:CION
Cion Investment — Q1 2023 Earnings Presentation
30 slides from Cion Investment's earnings presentation, May 2023
Slide 1: CION Investment Corporation Investor Presentation First Quarter 2023
CION Investment Corporation Investor Presentation First Quarter 2023
Slide 2: Disclosures and Forward-Looking Statements
Disclosures and Forward-Looking Statements This presentation has been prepared by CĪON Investment Corporation (NYSE: CION) (the “Company” or “CION”) and may be used for information purposes only. This presentation shall not constitute an offer to sell or the solicitation of any offer to buy any secu
Slide 3: CION Investment Corporation (CION) at a Glance
CION Investment Corporation (CION) at a Glance NYSE: CION Size & Scale Strategy Focus • Externally managed • Origination via proprietary • High quality senior secured business development sources and a strong debt financings, primarily company (BDC) with a network of public and first lien market cap
Slide 4: CION Platform Overview
CION Platform Overview CION Investment Group is a vertically integrated alternative investment manager and retail distribution organization founded in 2011 Key Products CION Investment CION Ares Diversified Corporation Credit Fund Profile Publicly listed business Globally diversified development com
Slide 5: Evolution of CION Investment Corporation
Evolution of CION Investment Corporation 2012 $1.15B 30+ 0.04% Inception Year Total Equity Raised Advisor Years of Annualized Loss Rate Experience Since Inception1 CION acquires Credit Suisse Park View BDC, Inc. $1,865 $1,765 $1,760 $1,723 $1,714 $1,754 Apollo Investment Management (“AIM”) $1,569 en
Slide 6: History of Value Creation
History of Value Creation 29.74 30.04 29.51 $30.00 29.09 29.06 28.66 28.95 28.22 27.73 27.04 26.85 26.50 26.56 26.52 26.23 26.13 26.41 26.02 25.56 25.91 24.85 25.22 25.18 25.46 $25.00 24.04 24.33 23.49 13.48 22.67 12.14 21.96 22.29 22.25 21.78 21.86 11.88 12.89 13.17 14.06 21.33 7.65 8.01 8.38 11.61
Slide 7: Credit Portfolio is Focused on First Lien Loans
Credit Portfolio is Focused on First Lien Loans Senior Secured First Lien Loans Senior Secured Second Lien Loans Other Investments $2.0b $1.85b $1.80b $1.81b $1.80b $1.82b $1.79b $1.80b $1.75b $1.75b $1.66b $1.74b $1.74b $1.68b $1.67b $1.63b $1.58b $1.58b $1.54b $1.52b $1.53b $1.50b $1.5b $ (Billion
Slide 8: Differentiated Investment Platform
Differentiated Investment Platform CION’s unique platform drives selectivity, efficiency and focus Direct first lien and club investments based on deep, long-standing relationships with like-minded Sourcing Powered partners, including other leading private and public lenders by Strong Network In
Slide 9: Sourcing Strategy Drives Selectivity
Sourcing Strategy Drives Selectivity CION’s open architecture origination approach capitalizes on a deep and diverse network of highly experienced and like-minded partners: Relationships are deep, long-term and Private and Public Lenders personal; often date back for decades Select middle mark
Slide 10: Investment Strategy
Investment Strategy CION drives investor returns primarily through a first lien focus supplemented with select, opportunistic investments First lien primarily, with unitranche and second lien CORE Companies with EBITDA between $25-$75 million; target $20 million initial hold sizes 91.2% senior
Slide 11: Fund Flexibility and Scale are Highly Advantageous
Fund Flexibility and Scale are Highly Advantageous CION has attractive scale within its niche market along with investing flexibility At $1.9 billion in total assets(1), CION is a scaled BDC with enough influence to have “a voice at the table” Flexibility to invest across a borrower’s capital st
Slide 12: Solid Performance and Current Valuation
Solid Performance and Current Valuation Senior Secured1 Portfolio Yield2 Leverage3 95.0% 91.2% 14.00% 150.0% 90.0% 85.9% 13.00% 140.0% 85.0% 11.97% 12.08% 130.0% 121.7% 12.00% 119.1% 80.0% 120.0% 75.0% 11.00% 110.0% 70.0% 10.00% 100.0% 65.0% 9.00% 90.0% 60.0% 55.0% 8.00% 80.0% 50.0% 7.00% 70.0% CION
Slide 13: Recent Developments
Recent Developments For the quarter ended December 31, 2022, CION paid a regular quarterly distribution totaling $17.6 million, or $0.31 per share, and declared a special year-end distribution totaling $14.9 million, or $0.27 per share, which was paid on January 31, 2023. On February 28, 2023, C
Slide 14: Conclusion
Conclusion CION offers investors a differentiated investment platform and strategy built over nearly a decade of operations High-quality portfolio focused on senior secured loans, primarily first lien Sourcing, origination & investment pipeline product of strong network not easily replicated Underwr
Slide 15: First Quarter 2023
First Quarter 2023 CION
Slide 16: First Quarter and Other Highlights – Ended March 31, 2023
First Quarter and Other Highlights – Ended March 31, 2023 Net investment income and earnings per share for the quarter ended March 31, 2023 were $0.54 per share and $(0.56) per share, respectively; Net asset value per share was $15.11 as of March 31, 2023 compared to $15.98 as of December 31, 20
Slide 17: Selected Financial Highlights
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 10 for debt net of issuance costs. (3) Includes a special distribution of $0.27 per share during the
Slide 18: Investment Activity
Investment Activity New investment commitments for the quarter were $15 million, of which $14 million were funded and $1 million was unfunded. New investment commitments were made across 10 existing portfolio companies. Fundings of previously unfunded commitments for the quarter were $9 millio
Slide 19: Portfolio Asset Composition
Portfolio Asset Composition End of Period Investments New Investment Commitments (in millions) (in millions) $1,797 $1,791 $184 1% $1,749 4% 2% $1,740 1% 6% $1,657 6% 2% 2% 1% 0%* 4% 2% 2% 0%* 2% 0%* 2% 0%* $155 8% 1% 1% 2% 0%* $134 2% 14% $92 1% 98% 90% 90% 93% 92% 89% 99% 84% 99% $15 13% 87% Q1 20
Slide 20: Credit Quality of Investments
Credit Quality of Investments INTERNAL INVESTMENT RISK RATINGS(1) Q1 2023 NON-ACCRUAL %(1) (% of Total Portfolio, Fair Value) Higher Credit Quality 6.80% 3.47% Lower Credit Quality Amortized Cost Fair Value * - Less than 1%. (1) The discussion of the investment portfolio excludes short term investme
Slide 21: Portfolio Summary
Portfolio Summary PORTFOLIO BY SECURITY TYPE(4) 91.2% Senior 0.1% 0.9% 7.8% Secured Debt 2.4% Investments First Lien Debt (88.8%) Second Lien Debt (2.4%) Equity (7.8%) Collateralized Securities & Structured Products: Equity (0.1%) 88.8% Unsecured Debt (0.9%) PORTFOLIO BY INTEREST RATE TYPE
Slide 22: Q1 2023 Net Asset Value Bridge
Q1 2023 Net Asset Value Bridge Per Share Data * * 22
Slide 23: Debt Summary
Debt Summary $100 million in available capacity within existing senior secured facilities DEBT SCHEDULE DEBT MATURITIES ($ in millions) ($ in millions) Total Principal Commitment Amount Maturity Amount Outstanding Interest Rate Date JPM Credit Facility $675 $600 L + 3.10%(2) 5/15/2024(3) UBS Facilit
Slide 24: Distribution Per Share and Distribution Coverage
Distribution Per Share and Distribution Coverage 1 24
Slide 25: Quarterly Operating Results
Quarterly Operating Results 25
Slide 26: Quarterly Balance Sheet
Quarterly Balance Sheet Assets 1 1 Investments, at fair value ! $1,723,352! $1,760,030 $1,807,048 $1,805,452 $1,755,297 Cash ! 36,016! 82,739 43,661 42,542 17,500 Interest receivable on investments q 27,333! 26,526 26,976 21,962 21,298 Receivable due on investments sold ! 3,239) 1,016 7,146 2,713 7,
Slide 27: Appendix
Appendix CION
Slide 28: CION Team Overview
CION Team Overview Years of Relevant Executive Team Experience Years at CION Background Mark Gatto • Co-Founder, CION Investment Group, LLC 17 10 • Attorney, private practice in NJ Co-Chief Executive Officer • B.A., Montclair State University; J.D. and M.B.A, Seton Hall University Michael A. Reisner
Slide 29: Corporate Information
Corporate Information Board of Directors Senior Management Corporate Headquarters Research Coverage Mark Gatto Mark Gatto 100 Park Avenue, 25th Floor Finian O’Shea Co-Chairman of the Board Co-Chief Executive Officer New York, NY 10017 Wells Fargo Michael A. Reisner Michael A. Reisner Co-Chairman of
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