Why Invest in CION
*Current distribution yield is calculated as trailing 12 month distributions paid as of September 27, 2024, divided by the closing market share price as of September 27, 2024. There is no guarantee distributions will continue at the current level, if at all.
Why Invest in CION
(NYSE: CION)
We believe private credit has earned a place in investor portfolios as a core holding alongside traditional fixed income. We also believe that our long track record, strong performance and defensive positioning allows CION to help investors navigate increased volatility, and generate attractive income.
CION vs BDC Peers1
Distribution Yield
CION’s distribution yield at quarter-end is higher than many of its BDC Peers1 and, since its NYSE listing in October 2021, CION has fully covered its distributions from net investment income (NII).2
Trades at a Discount to NAV
On Market Price to NAV4, CION trades below many of its BDC Peers1 despite having what we believe is a strong senior secured portfolio.
Base Distribution Coverage
CION’s NII has historically outearned its base distribution, including as of June 30, 2024.5
YTD Share Repurchase / Market Cap
CION has supported its stock through accretive share repurchases in the open market since the commencement of its share repurchase program in August 2022, including as of June 30, 2024.7
Non-Accruals (FV) Overview8
CION’s non-accrual rate as a percentage of fair value
compared to its BDC Peers1
All information is as of June 30, 2024, unless otherwise noted. Past performance does not guarantee future results, which may vary. Refer to Endnotes for additional important information.
Our Advantage:
Strong Sourcing + Selectivity
CIM sources direct first lien and club investments based on deep, long-standing relationships, including with other private and public lenders. CIM’s direct origination also provides a unique and proprietary flow of transactions.
CIM’s targeted EBITDA focus and deal size allows it to be highly selective in creating CION’s portfolio, which can provide income and downside protection.
Our Investment Criteria
US middle-market with annual EBITDA of $20-75 million
First lien, unitranche, second lien, and equity co-invest capabilities
3-8-year tenor
Flexible amortization
Maximum underwriting of $100 million (average targeted hold size of $30 million)
Typically requires covenant package
Management Team
Mark Gatto
Co-Founder, Co-CEO of CION
Investments/Investment
Committee Member
Michael A. Reisner
Co-Founder, Co-CEO of CION
Investments/Investment
Committee Member
Gregg Bresner
President & Chief
Investment Officer of CION
Investment Management
Keith Franz
Managing Director, Chief Financial Officer of CION Investment Management
Geoff Manna
Senior Managing Director
Aditi Budhia
Senior Vice President
Joe Elsabee
Managing Director
Eric Pinero
Chief Legal Officer
Stephen Roman
Chief Compliance Officer, Counsel
Nicholas Tzoumas
Director
Charlie Arestia
Managing Director and Head of Investor Relations
Board of Directors (Six of Eight Independent)
Mark Gatto
Co-Founder, Co-CEO of CION
Investments/Investment
Committee Member
Michael A. Reisner
Co-Founder, Co-CEO of CION
Investments/Investment
Committee Member
Robert A. Breakstone
President & CEO of Landmark International Group, Inc.
Peter I. Finlay
Founder & Managing Principal
of Ardentis LLC
Aron I. Schwartz
Managing Director of ACON
Investments
Earl V. Hedin
Co-Founder & Managing
Partner of Hudson Partners
Group LLC
Catherine K. Choi
President of BULBRITE
Industries
Edward J. Estrada
Principal of Estrada Legal
Consulting
Endnotes*
- CION’s BDC Peers consist of 13 externally managed, publicly-traded BDCs with a senior secured focus and a market capitalization between approximately $4.157bn and $647mm as of June 28, 2024. The peer group consists of: Bain Capital Specialty Finance Inc (BCSF), Barings BDC Inc (BBDC), BlackRock TCP Capital Corp. (TCPC), Carlyle Secured Lending, Inc. (CGBD), Crescent Capital BDC, Inc. (CCAP), Goldman Sachs BDC Inc (GSBD), Golub Capital BDC Inc (GBDC), New Mountain Finance Corporation (NMFC), MidCap Financial Investment Corp (MFIC), Oaktree Specialty Lending Corp (OCSL), PennantPark Floating Rate Capital Ltd. (PFLT), SLR Investment Corp (SLRC), and Sixth Street Specialty Lending Inc (TSLX).
- NII distribution coverage from CION’s public listing on October 5, 2021 is based on GAAP Net Investment Income and applies for the full period noted, not for individual quarters. Distributions may not continue at the current level, if at all.
- Distribution yield is calculated as trailing 12 month quarterly distributions declared as of June 30, 2024, divided by market share price as of June 28, 2024. There is no guarantee distributions will continue at the current level, if at all.
- Net Asset Value, or NAV, is determined by dividing the total assets of CION (the value of CION’s portfolio investments and other assets, less any liabilities), by the total number of shares outstanding. Market price as of June 28, 2024.
- The period covered for NII distribution coverage is from CION’s public listing on October 5, 2021 to June 30, 2024, based on GAAP Net Investment Income, and applies over the full period noted, not for individual quarters. Distributions have been and may in the future be funded through sources other than cash flow from operations. Each year, information regarding the sources of CION’s distributions (i.e., whether paid from ordinary income, paid from net capital gains on the sale of securities, and/or a return of capital, the latter of which is a nontaxable distribution) will be disclosed to its shareholders on CION’s website at www.cionbdc.com. Distributions may not continue at the current level, if at all.
- Distribution coverage for the period of the latest quarter is calculated by taking the prior quarter’s net investment income divided by the prior quarter’s base distribution, which excludes supplemental and special distributions. Adjusted net investment income is used when available. Distributions may not continue at the current level, if at all.
- CION’s current repurchase trading plan expires on August 29, 2024, and is subject to price, market volume and timing restrictions. The repurchase trading plan may be suspended or discontinued at any time and does not obligate CION to acquire any specific number of shares of its common stock. There is no guarantee repurchases will continue at the current level, if at all.
- Non-accrual statistics are calculated as a percentage of total investments at fair value and calculated as Net Asset Value per share divided by market share price as of June 28, 2024. If the non- accrual statistic was calculated as a percentage of total investments at cost, CION and its BDC Peers had investments on non-accrual status of 2.7% and 3.3% respectively.