CION Investment Corp Q3 FY2024 earnings call

• Mark Gatto mentioned being pleased with quarterly results, navigating a competitive credit environment, Fed rate cut, active balance sheet management with unsecured debt majority, successful public baby bond offering oversubscribed. - Gregg Bresner discussed Q3 net investment income from diverse sources, selective new investments, strategic focus on first-line investing, secondary investments, exit of Heritage Power investment, PIK income details, Q3 investment and portfolio activity including commitments and fundings, portfolio performance with net asset value decline due to David's Bridal equity marks, non-accruals increase, portfolio credit performance. - Keith Franz talked about financial results, balance sheet strength, debt mix changes, refinancing activities, distribution details with base distribution of $0.36 per share declared for Q4.

CION reported $0.40 in quarterly net investment income for the third quarter. Net asset value declined quarter-over-quarter to $15.73 from $16.08 in the second quarter. Unsecured debt made up the majority of the overall debt funding mix for the first time. The public baby bond offering was more than 3 times oversubscribed. Net investment income was driven by interest income from the portfolio and transaction fees. Net asset value decline was due to fair value marks in the equity portfolio, somewhat offset by over-earning the base dividend and accretive share repurchases. Non-accruals increased to 1.85% of the portfolio at fair value from 1.36% last quarter. The weighted average coupon for total funded first-line debt investments was SOFR plus 6%.

• Declared a fourth quarter base distribution of $0.36 per share, same as prior quarters. - Balance sheet remains strong and flexible with over $800 million in unencumbered assets, strong debt servicing capacity, and solid liquidity. - Expect to remain nimble and take advantage of opportunities in a higher volatility environment.

• Volatility in equity book due to larger relative size of David's Bridal investment and seasonal nature of its operations. - Macro effects of higher inflation and interest rates affecting TriMark's revenue demand. - Competitive market conditions impacting deal volumes, pricing, and lender protections.

Q: Are there any questions?

A: No questions at this time