CION Investment Corporation (CION) Bundle
A Brief History of CĪON Investment Corporation
Company Overview
CĪON Investment Corporation is a publicly traded business development company (BDC) that focuses on investing primarily in senior secured debt of private middle-market companies. As of 2024, CĪON maintains a diversified portfolio, primarily consisting of first and second lien debt, equity, and collateralized securities.
Financial Performance
For the nine months ended September 30, 2024, CĪON reported the following financial results:
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Investment Income | $194,538,000 | $191,011,000 |
| Operating Expenses | $117,364,000 | $107,747,000 |
| Net Investment Income After Taxes | $77,174,000 | $83,264,000 |
| Net Realized Loss on Investments | $(26,075,000) | $(31,576,000) |
| Net Change in Unrealized Depreciation | $(22,655,000) | $(7,366,000) |
| Net Increase in Net Assets Resulting from Operations | $28,444,000 | $44,322,000 |
Investment Portfolio
As of September 30, 2024, CĪON's investment portfolio comprised the following:
| Investment Type | Cost | Fair Value | Percentage of Portfolio |
|---|---|---|---|
| Senior Secured First Lien Debt | $1,541,136,000 | $1,494,524,000 | 85.3% |
| Senior Secured Second Lien Debt | $5,116,000 | $3,873,000 | 0.2% |
| Collateralized Securities and Structured Products - Equity | $1,003,000 | $685,000 | 0.0% |
| Unsecured Debt | $29,501,000 | $11,761,000 | 0.7% |
| Equity | $219,985,000 | $241,883,000 | 13.8% |
| Total Investments | $1,850,244,000 | $1,806,229,000 | 100.0% |
Shareholder Distributions
During the nine months ended September 30, 2024, CĪON declared the following distributions:
| Period | Per Share Amount | Total Amount |
|---|---|---|
| March 31, 2024 | $0.34 | $18,279,000 |
| June 30, 2024 | $0.41 | $21,960,000 |
| September 30, 2024 | $0.36 | $19,234,000 |
| Total Distributions (2024) | - | $59,473,000 |
Capital Structure and Leverage
CĪON's capital structure as of September 30, 2024, included the following financing arrangements:
| Type of Financing | Amount Outstanding | Amount Available | Maturity Date |
|---|---|---|---|
| JPM Credit Facility | $450,000,000 | $112,500,000 | June 15, 2027 |
| 2026 Notes | $125,000,000 | - | February 11, 2026 |
| UBS Facility | $100,000,000 | $50,000,000 | November 19, 2024 |
| Series A Notes | $114,844,000 | - | August 31, 2026 |
| 2027 Notes (Tranche A) | $100,000,000 | - | November 8, 2027 |
| Total Senior Securities Outstanding | $1,069,844,000 | - | - |
Market Performance
As of September 30, 2024, CĪON's net asset value per share was $15.73, with shares outstanding totaling 53,359,886. The total investment return based on net asset value was 6.26% for the period.
A Who Owns CION Investment Corporation (CION)
Ownership Structure
CION Investment Corporation (CION) is an externally managed, non-diversified, closed-end management investment company. As of September 30, 2024, CION has the following shares outstanding:
- Common Stock Outstanding: 53,359,886 shares
- Common Stock Authorized: 500,000,000 shares
Shareholder Composition
The major stakeholders in CION include institutional investors, individual shareholders, and management. Below is a table summarizing the top institutional shareholders and their respective ownership percentages:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 5,180,000 | 9.7% |
| The Vanguard Group, Inc. | 4,800,000 | 8.9% |
| State Street Corporation | 3,500,000 | 6.5% |
| Invesco Ltd. | 3,200,000 | 6.0% |
| Goldman Sachs Group, Inc. | 2,900,000 | 5.4% |
Management Ownership
Management also holds a stake in CION. As of September 30, 2024, the total shares owned by management are as follows:
- Management Shares Owned: 1,000,000 shares
- Management Ownership Percentage: 1.87%
Share Repurchase Activity
As part of its capital management strategy, CION has conducted share repurchases. In 2024, the following repurchase activity was reported:
- Shares Repurchased: 1,500,000 shares
- Total Cost of Shares Repurchased: $25,000,000
Market Capitalization
As of September 30, 2024, the market capitalization of CION is calculated as follows:
- Current Share Price: $15.73
- Market Capitalization: $839,190,000
Recent Shareholder Actions
On August 27, 2024, shareholders approved a proposal allowing the Company to issue shares at prices below the current NAV per share. This approval is part of a strategy to enhance shareholder value and liquidity.
Investment Performance
The performance of CION has been reflected in its net asset value (NAV) per share:
- Net Asset Value per Share (September 30, 2024): $15.73
- Net Asset Value per Share (December 31, 2023): $16.23
Investment Management
CION is managed by CION Investment Management, LLC (CIM), which oversees the investment portfolio and management activities. CIM has been instrumental in the strategic direction and financial performance of CION.
CION Investment Corporation (CION) Mission Statement
Mission Statement Overview
The mission of CION Investment Corporation is to provide attractive risk-adjusted returns to its investors through a diverse portfolio of debt and equity investments in private U.S. companies. CION aims to leverage its extensive industry experience and operational expertise to identify and invest in opportunities that foster long-term growth and stability.
Core Values
- Integrity: Upholding the highest ethical standards in all business dealings.
- Transparency: Maintaining clear and open communication with stakeholders.
- Innovation: Continuously seeking innovative investment strategies and operational efficiencies.
- Commitment to Excellence: Striving for excellence in investment selection and portfolio management.
Financial Performance Metrics
| Metric | September 30, 2024 | September 30, 2023 | December 31, 2023 |
|---|---|---|---|
| Net Investment Income After Taxes | $77,174,000 | $83,264,000 | $105,022,000 |
| Net Realized Loss on Investments | $(26,075,000) | $(31,576,000) | $(31,927,000) |
| Net Change in Unrealized Depreciation | $(22,655,000) | $(7,366,000) | $(22,219,000) |
| Net Assets | $839,190,000 | $860,760,000 | $879,563,000 |
| Net Asset Value per Share | $15.73 | $15.80 | $16.23 |
Investment Strategy
CION focuses on senior secured first lien debt, senior secured second lien debt, and equity investments. The company emphasizes investments in industries with strong growth potential, aiming to balance risk and return effectively.
Recent Developments and Future Outlook
As of September 30, 2024, CION's total investments at fair value amounted to $1,806,229,000, with an amortized cost of $1,850,244,000. The company continues to explore new investment opportunities while managing existing assets to maximize shareholder value.
Shareholder Engagement
- Dividends Declared: $0.36 per share as of September 30, 2024.
- Weighted Average Shares Outstanding: 53,359,886 shares.
- Repurchases of Common Stock: 165,737 shares during the third quarter of 2024.
Risk Management Approach
CION employs a rigorous risk management framework to monitor and mitigate potential risks associated with its investment portfolio. This includes regular assessments of market conditions, credit quality, and operational performance of portfolio companies.
Conclusion
The mission statement of CION Investment Corporation encapsulates its commitment to delivering strong investment returns and maintaining high standards of integrity and transparency in its operations. The company's strategic focus on a diverse range of investments positions it well for future growth and resilience in varying market conditions.
How CION Investment Corporation (CION) Works
Business Model
CION Investment Corporation operates as a business development company (BDC), primarily focusing on providing financing solutions to private middle-market companies. The company aims to generate income through interest, fees, and dividends from its investments.
Financial Performance
As of September 30, 2024, CION reported the following financial performance metrics:
| Metric | 2024 (9 Months) | 2023 (9 Months) | 2023 (Year Ended) |
|---|---|---|---|
| Net Investment Income After Taxes | $77,174,000 | $83,264,000 | $105,022,000 |
| Net Realized Loss on Investments | $(26,075,000) | $(31,576,000) | $(31,927,000) |
| Net Change in Unrealized Depreciation | $(22,655,000) | $(7,366,000) | $(22,219,000) |
| Net Increase in Net Assets | $28,444,000 | $44,322,000 | $95,314,000 |
Investment Income
CION's investment income for the three months ended September 30, 2024, included:
| Source | Amount (in thousands) |
|---|---|
| Interest Income (Non-controlled, Non-affiliated) | $40,613 |
| Paid-in-kind Interest Income | $5,526 |
| Fee Income | $900 |
| Dividend Income | $345 |
| Total Investment Income | $59,627 |
Operating Expenses
CION's operating expenses for the nine months ended September 30, 2024, were as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Management Fees | $20,559 |
| Administrative Services Expense | $3,522 |
| Subordinated Incentive Fee on Income | $16,371 |
| General and Administrative Expenses | $5,298 |
| Interest Expense | $71,626 |
| Total Operating Expenses | $117,376 |
Balance Sheet Highlights
As of September 30, 2024, CION's balance sheet included the following key figures:
| Metric | Amount (in thousands) |
|---|---|
| Total Assets | $1,915,621 |
| Total Liabilities | $1,076,431 |
| Total Shareholders' Equity | $839,190 |
| Net Asset Value per Share | $15.73 |
Financing Arrangements
CION has various financing arrangements as of September 30, 2024:
| Financing Arrangement | Type | Rate | Amount Outstanding (in thousands) | Amount Available (in thousands) | Maturity Date |
|---|---|---|---|---|---|
| JPM Credit Facility | Term Loan Credit Facility | SOFR + 2.55% | $450,000 | $112,500 | June 15, 2027 |
| 2026 Notes | Note Purchase Agreement | 4.50% | $125,000 | - | February 11, 2026 |
| UBS Facility | Repurchase Agreement | SOFR + 3.20% | $100,000 | $50,000 | November 19, 2024 |
| Series A Notes | Israel Public Bond Offering | SOFR + 3.82% | $114,844 | - | August 31, 2026 |
| Total | - | - | $1,069,844 | $162,500 | - |
Investment Portfolio
As of September 30, 2024, CION's investment portfolio included:
| Investment Type | Fair Value (in thousands) | Amortized Cost (in thousands) |
|---|---|---|
| Senior Secured First Lien Debt | $1,494,524 | $1,850,244 |
| Senior Secured Second Lien Debt | $3,873 | $62,531 |
| Collateralized Securities and Structured Products | $685 | $1,096 |
| Unsecured Debt | $11,761 | $12,874 |
| Equity | $221,521 | $205,909 |
| Total Investments | $1,732,364 | $1,850,244 |
Shareholder Distributions
Distributions per share declared in 2024 included:
| Period | Distribution per Share | Total Distribution (in thousands) |
|---|---|---|
| March 31, 2024 | $0.34 | $18,279 |
| June 30, 2024 | $0.41 | $21,960 |
| September 30, 2024 | $0.36 | $19,234 |
| Total for 2024 (9 Months) | $1.11 | $59,473 |
How CION Investment Corporation (CION) Makes Money
Revenue Generation
CION Investment Corporation primarily generates revenue through various forms of investment income, which includes:
- Interest Income: The majority of revenue is derived from interest on debt securities held. For the nine months ended September 30, 2024, interest income from non-controlled, non-affiliated investments amounted to $134,497,000, while affiliated investments accounted for $4,331,000.
- Paid-in-Kind (PIK) Interest: This form of income allows CION to receive interest payments in the form of additional securities rather than cash. For the same period, PIK interest income was $19,811,000 from non-controlled, non-affiliated investments and $8,882,000 from affiliated investments.
- Fees: CION earns fees from capital structuring, commitment, and administrative services. Total fee income for the nine months ended September 30, 2024, was $12,018,000.
- Dividend Income: CION also receives dividend income, totaling $5,484,000 for the nine months ended September 30, 2024.
Table of Investment Income
| Income Type | Non-Controlled, Non-Affiliated (in $000) | Non-Controlled, Affiliated (in $000) | Controlled (in $000) | Total Income (in $000) |
|---|---|---|---|---|
| Interest Income | 134,497 | 4,331 | 9,386 | 148,214 |
| Paid-in-Kind Interest | 19,811 | 8,882 | 0 | 28,693 |
| Fee Income | 6,111 | 3,598 | 2,309 | 12,018 |
| Dividend Income | 5,484 | 129 | 0 | 5,613 |
| Total Investment Income | 165,903 | 16,940 | 11,695 | 194,538 |
Operating Expenses
CION's primary operating expenses include management fees, interest expenses, and general administrative costs. For the nine months ended September 30, 2024, the major components of operating expenses were:
- Management Fees: $20,559,000
- Interest Expense: $71,626,000
- Administrative Services Expense: $3,522,000
- General and Administrative Expenses: $5,298,000
Table of Operating Expenses
| Expense Type | Amount (in $000) |
|---|---|
| Management Fees | 20,559 |
| Interest Expense | 71,626 |
| Administrative Services Expense | 3,522 |
| General and Administrative Expenses | 5,298 |
| Total Operating Expenses | 101,005 |
Net Investment Income
Net investment income after taxes for the nine months ended September 30, 2024, totaled $77,174,000, reflecting a decrease from $83,264,000 for the same period in 2023. This decline was primarily due to increased interest expenses.
Realized and Unrealized Gains/Losses
CION also reports net realized and unrealized gains and losses on investments. For the nine months ended September 30, 2024:
- Net Realized Loss on Investments: $(26,075,000)
- Net Change in Unrealized Depreciation: $(22,655,000)
Table of Realized and Unrealized Gains/Losses
| Type | Amount (in $000) |
|---|---|
| Net Realized Loss | (26,075) |
| Net Unrealized Depreciation | (22,655) |
Financing Arrangements
CION employs various financing arrangements to enhance its capital structure and investment capabilities. As of September 30, 2024, the following financing arrangements were in place:
- JPM Credit Facility: $450,000,000
- 2026 Notes: $125,000,000
- UBS Facility: $100,000,000
- Series A Notes: $114,844,000
- 2027 Notes: $200,000,000
- 2024 Term Loan: $30,000,000
Table of Financing Arrangements
| Financing Arrangement | Amount Outstanding (in $000) | Amount Available (in $000) | Maturity Date |
|---|---|---|---|
| JPM Credit Facility | 450,000 | 112,500 | June 15, 2027 |
| 2026 Notes | 125,000 | 0 | February 11, 2026 |
| UBS Facility | 100,000 | 50,000 | November 19, 2024 |
| Series A Notes | 114,844 | 0 | August 31, 2026 |
| 2027 Notes (Tranche A) | 100,000 | 0 | November 8, 2027 |
| 2027 Notes (Tranche B) | 100,000 | 0 | November 8, 2027 |
| 2024 Term Loan | 30,000 | 0 | September 30, 2027 |
| Total | 1,069,844 | 162,500 |
Shareholder Distributions
CION has a history of making shareholder distributions. For the nine months ended September 30, 2024, total distributions amounted to $59,473,000, with a per share distribution of $1.11.
Table of Shareholder Distributions
| Record Date | Per Share Amount (in $) | Total Distribution (in $) |
|---|---|---|
| March 31, 2024 | 0.34 | 18,279 |
| June 30, 2024 | 0.41 | 21,960 |
| September 30, 2024 | 0.36 | 19,234 |
| Total | 1.11 | 59,473 |
CION Investment Corporation (CION) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- CION Investment Corporation (CION) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CION Investment Corporation (CION)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CION Investment Corporation (CION)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.