CION Investment Corporation · NYSE:CION
CION Investment — Q1 2022 Earnings Presentation
31 slides from CION Investment's earnings presentation, May 2022
Slide 1: CION Investment Corporation Investor Presentation First Quarter 2022
CION Investment Corporation Investor Presentation First Quarter 2022
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+ 0.06% Inception Year Total Equity Raised Advisor Years of Annualized Loss Rate Experience Since Inception1 CION acquires Credit $1,865 Suisse Park View BDC, Inc. $1,765 $1,714 $1,754 $1,755 Apollo Investment $1,569 Management (“AIM”) engaged a
Slide 6: History of Value Creation
History of Value Creation $30.00 28.66 28.95 29.09 28.22 27.73 27.04 26.85 25.91 26.23 26.50 26.13 26.41 26.56 26.52 26.02 24.85 25.22 25.56 25.18 25.46 $25.00 24.04 24.33 23.49 22.67 21.96 22.29 22.25 21.78 21.86 12.14 12.61 12.89 21.15 21.33 6.92 7.28 7.65 8.01 8.38 8.75 9.11 9.48 9.84 10.24 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 $1.75b $1.74b $1.74b $1.68b $1.67b $1.63b $1.55b $1.58b $1.58b $1.54b $1.54b $1.52b $1.53b $1.51b $1.50b $1.5b $ (Billions) 76.6
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 94% senior s
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 $1.8 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 100.0% 10.00% 130.0% 93.9% 95.0% 9.50% 120.0% 8.90% 110.5% 90.0% 85.8% 9.00% 8.53% 110.0% 85.0% 8.50% 80.0% 100.0% 94.9% 8.00% 75.0% 7.50% 90.0% 70.0% 7.00% 80.0% 65.0% 6.50% 70.0% 60.0% 6.00% 55.0% 5.50% 60.0% 50.0%
Slide 13: Recent Developments
Recent Developments On September 15, 2021, the Board approved a $50 million share repurchase policy. CION intends to establish a 10b5-1 trading plan to facilitate share repurchases and anticipates implementing the trading plan in the future based in part on historical trading data with respect to
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 2022
First Quarter 2022 CION
Slide 16: Quarterly and Other Highlights - Quarter Ended March 31, 2022
Quarterly and Other Highlights - Quarter Ended March 31, 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 in
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 $0.20 per share during the
Slide 18: Investment Activity
Investment Activity New investment commitments for the quarter were $155 million, of which $123 million were funded and $32 million were unfunded. New investment commitments were made across 8 new portfolio companies and 7 existing portfolio companies. Fundings of previously unfunded commitmen
Slide 19: Portfolio Asset Composition
Portfolio Asset Composition End of Period Investments New Investment Commitments (in millions) (in millions) $1,740 $353 4% 2% $1,666 $1,676 6% 4% 2% $1,630 2% 0%* 5% 0%* 6% 0%* $1,534 6% 2% 0%* 1% 6% 1% 8% 7% 0%* 1% 10% $231 $179 $186 2% 92% $155 92% 1% 88% 88% 84% 82% 100% 98% 100% 99% Q1 2022 Q4
Slide 20: Credit Quality of Investments
Credit Quality of Investments INTERNAL INVESTMENT RISK RATINGS1 Q1 2022 NON-ACCRUAL %1 (% of Total Portfolio, Fair Value) Higher Credit Quality 2.34% 0.61% Lower Credit Quality Amortized Cost Fair Value * - Less than 1%. (1) The discussion of the investment portfolio excludes short term investments.
Slide 21: Portfolio Summary
Portfolio Summary PORTFOLIO BY SECURITY TYPE1 94% Senior 0.2% 1.6% 4.3% Secured Debt 2.1% Investments First Lien Debt (91.8%) Second Lien Debt (2.1%) Equity (4.3%) Collateralized Securities & Structured Products: Equity (0.2%) 91.8% Unsecured Debt (1.6%) PORTFOLIO BY INTEREST RATE TYPE1 4.
Slide 22: Q1 2022 Net Asset Value Bridge
Q1 2022 Net Asset Value Bridge Per Share Data * * - Less than $0.01 per share. 22
Slide 23: Full Year 2021 Net Asset Value Bridge
Full Year 2021 Net Asset Value Bridge Per Share Data (1) Includes a special distribution of $0.20 per share during the quarter ended December 31, 2021. 23
Slide 24: Debt Summary
Debt Summary $105 million in available capacity within existing senior secured facilities DEBT SCHEDULE DEBT MATURITIES ($ in millions) ($ in millions) Total Principal Commitment Amount Interest Maturity Amount Outstanding Rate Date JPM Credit Facility $675 $595 L + 3.10%(2) 5/15/2024 UBS Facility 1
Slide 25: Distribution Per Share and Distribution Coverage
Distribution Per Share and Distribution Coverage 1 (1) In March 2020, the Company determined to suspend distributions commencing with the month ended April 30, 2020 in order to provide financial flexibility in response to the COVID-19 pandemic. In July 2020, the Company determined to recommence dist
Slide 26: Quarterly Operating Results
Quarterly Operating Results 26
Slide 27: Quarterly Balance Sheet
Quarterly Balance Sheet Qi 2022 Q4 2021 Q3 2021 Ql 20: Assets L I Investments, at fair value | $1,755,297} $1,754,039 $1,746,298 $1,724,038 $1,621,641 Cash i 17,500} 3,774 2,159 1,496 1641 Interest receivable on investments i 21,298) 21,549 21,283 20,279 17,101 Receivable due on investments sold i 7
Slide 28: Appendix
Appendix CION
Slide 29: 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 30: Corporate Information
Corporate Information Board of Directors Senior Management Corporate Headquarters Research Coverage Mark Gatto Mark Gatto 3 Park Avenue, 36th Floor Finian O’Shea Co-Chairman of the Board Co-Chief Executive Officer New York, NY 10016 Wells Fargo Michael A. Reisner Michael A. Reisner Co-Chairman of th
Slide 31: Slide 31