CION Investment Corporation Q2 FY2025 earnings call

Dividend and NAV: Dividend is kept steady at $0.36 per share. Net asset value increased due to fair value increases in equity positions like Longview Power and David's Bridal. ### Portfolio Performance: Credit performance of portfolio remains strong with weighted average adjusted EBITDA growth in mid-single digits LTM. Downgraded 7 portfolio companies and upgraded 4 on internal risk rating scale. ### Share Buyback: Accelerated share buyback activity in Q2 with 699,000 shares repurchased at avg $9.37; Board authorized $20M upsizing of share repurchase program. ### Investment Activity: Q2 investment activity included $41M in commitments and $29M funded in existing portfolio companies; sales and repayments totaled $88M. NAV increase driven by mark-to-market value of portfolio, equity book price volatility, and share repurchase accretiveness.

CION reported $0.32 in quarterly net investment income for Q2, mainly impacted by certain positions. Excluding one-time impacts, net investment income would have exceeded the base dividend of $0.36 per share. Net asset value increased 1.5% QoQ to $14.50. Portfolio fair value ended the quarter at $1.8 billion. Weighted average yield on debt and other income-producing investments at amortized cost was 12.4% at June 30, up 22 basis points from Q1. NAV per share was $14.50 at June 30, up from $14.28 at the end of March.

Dividend: Dividend maintained at $0.36 per share. ### Repayments: Expecting Q3 repayments to be consistent or greater than Q2, allowing deployment into forward pipeline. ### Earnings Hopes: Hopeful of positive benefits from restructuring in Q3 to help net investment income cover dividend.

Volatility: Quarterly volatility in fair value marks of equity positions, especially David's Bridal. ### Macroeconomic: Potential impact of macroeconomic factors like tariffs on earnings. ### Nonaccruals: Nonaccruals increased slightly to 1.37% due to new Term Loan C investment in Anthem Sports.

Q: About pipeline and originations in 3Q vs repayments A: Gregg Bresner says it's too early to tell but there are investment opportunities in the pipeline; depends on timing of repayments and new investments Q: About NII covering dividend and SOFR curve A: Michael Reisner says hopeful to get back to NII covering dividend in Q3, with SOFR movement, activity, fees, and spreads playing roles Q: About share repurchase pace A: Michael Reisner says programmatic buyback to support stock, hopeful less buyback if stock gains momentum, but depends on market