CION Investment Corporation

Quarterly Report • Aug 9, 2023

Client: 23-23053-1_CION Investment Corporation_8-K	File: tm2323053d1_8k.htm Type: 8-K Pg: 1 of 4

	UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
	FORM 8-K
	CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 9, 2023 (August 7, 2023)
	CĪON Investment Corporation (Exact Name of Registrant as Specified in Charter)
Maryland	000-54755	45-3058280
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
	100 Park Avenue, 25th Floor New York, New York 10017
	(Address of Principal Executive Offices)
	(212) 418-4700
	(Registrant's telephone number, including area code)
	Not applicable
	(Former name or former address, if changed since last report)
Check the appropriate box below if the Form	8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, par value \$0.001 per share CION The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition.

Regular Quarterly and Supplemental Distributions

The board of directors (the "Board") of CĪON Investment Corporation ("CION") has delegated to CION's executive officers the authority to determine the amount, record dates, payment dates and other terms of distributions to shareholders, which will be ratified by the Board on a quarterly basis.

On August 7, 2023, CION's co-chief executive officers declared (i) a regular quarterly cash distribution of \$0.34 per share for the third quarter of 2023 payable on September 15, 2023 to shareholders of record as of September 1, 2023 and (ii) a supplemental cash distribution of \$0.05 per share for both the third and fourth quarters of 2023, payable on October 16, 2023 and January 15, 2024, respectively, to shareholders of record as of September 29, 2023 and December 29, 2023, respectively. A copy of the press release announcing the foregoing is attached hereto as Exhibit 99.1 and incorporated by reference herein.

Q2 2023 Financial Results

On August 9, 2023, CION issued a press release announcing its financial results for the second quarter ended June 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

In connection with its conference call to be held on August 9, 2023 to discuss its financial results for the second quarter ended June 30, 2023, CION has provided an accompanying slide presentation in the Investor Resources – Events and Presentations section of its website at www.cionbdc.com. A copy of the presentation is also attached hereto as Exhibit 99.2 and incorporated by reference herein.

The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, is being "furnished" and shall not be deemed "filed" by CION for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01. Regulation FD Disclosure.

The information in Item 2.02 of this Current Report on Form 8-K is incorporated by reference into this Item 7.01.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release dated August 9, 2023.

99.2 CĪON Investment Corporation Second Quarter 2023 Earnings Presentation. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CĪON Investment Corporation

Date: August 9, 2023 By: /s/ Michael A. Reisner

Co-Chief Executive Officer

Client: 23-23053-1_CION Investment Corporation_8-K File: tm2323053d1_8k.htm Type: 8-K Pg: 4 of 4

EXHIBIT LIST

EXHIBIT
NUMBER	DESCRIPTION
99.1	Press Release dated August 9, 2023.
99.2	CĪON Investment Corporation Second Quarter 2023 Earnings Presentation.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

Exhibit 99.1

CION INVESTMENT CORPORATION REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS

Reports Another Solid Quarterly Performance, Out Earning the Distribution by 26% and Achieving a \$0.20 per Share Increase in Net Asset Value

Announces Third Quarter 2023 Base Distribution of \$0.34 per Share

Announces Total Supplemental Distribution of \$0.10 per Share

For Immediate Release

NEW YORK, August 9, 2023 — CION Investment Corporation (NYSE: CION) ("CION" or the "Company") today reported financial results for the second quarter ended June 30, 2023 and filed its Form 10-Q with the U.S. Securities and Exchange Commission.

CION also announced that, on August 7, 2023, its co-chief executive officers declared (i) a third quarter 2023 regular distribution of \$0.34 per share payable on September 15, 2023 to shareholders of record as of September 1, 2023 and (ii) a supplemental distribution of \$0.05 per share for both the third and fourth quarters of 2023, payable on October 16, 2023 and January 15, 2024, respectively, to shareholders of record as of September 29, 2023 and December 29, 2023, respectively.

SECOND QUARTER AND OTHER HIGHLIGHTS

• Net investment income and earnings per share for the quarter ended June 30, 2023 were \$0.43 per share and \$0.51 per share, respectively;

• Net asset value per share was \$15.31 as of June 30, 2023 compared to \$15.11 as of March 31, 2023, an increase of \$0.20 per share, or 1.3%. The increase was primarily due to the Company out earning its distribution for the period and mark-to-market adjustments to the Company's portfolio;
• As of June 30, 2023, the Company had \$986 million of total principal amount of debt outstanding, of which 71% was comprised of senior secured bank debt and 29% was comprised of unsecured debt. The Company's net debt-to-equity ratio was 1.04x as of June 30, 2023 compared to 1.02x as of March 31, 2023;
• As of June 30, 2023, the Company had total investments at fair value of \$1,688 million in 112 portfolio companies across 24 industries. The investment portfolio was comprised of 89.3% senior secured loans, including 87.0% in first lien investments;¹
• During the quarter, the Company funded new investment commitments of \$62 million, funded previously unfunded commitments of \$8 million, and had sales and repayments totaling \$55 million, resulting in a net increase to the Company's funded portfolio of \$15 million;
• As of June 30, 2023, investments on non-accrual status amounted to 1.7% and 4.8% of the total investment portfolio at fair value and amortized cost, respectively;
• During the quarter, the Company repurchased 328,628 shares of its common stock under its 10b5-1 trading plan at an average price of \$9.81 per share for a total repurchase amount of \$3.2 million. Through June 30, 2023, the Company repurchased a total of 2,325,622 shares of its common stock under its 10b5-1 trading plan at an average price of \$9.57 per share for a total repurchase amount of \$22.3 million and;
• During the quarter, the Company amended its senior secured credit facilities with JPMorgan Chase Bank, National Association and UBS AG to, among other things, extend the maturity from May 15, 2024 and November 19, 2023, respectively, to May 15, 2025 and November 19, 2024, respectively.

DISTRIBUTIONS

• For the quarter ended June 30, 2023, the Company paid a regular quarterly distribution totaling \$18.6 million, or \$0.34 per share.

Michael A. Reisner, co-Chief Executive Officer of CION, commented:

"Our quarterly earnings showed continued strength, with NII of \$0.43 per share, which once again outperformed our base distribution of \$0.34 per share. Moreover, our NAV grew by over 1%, or approximately \$0.20 per share.

Our portfolio's credit quality is solid, with many softer credit positions from last quarter related to consumer-facing businesses already restructured. Looking forward, we expect non-accruals to align more closely with our historical average of below 1% on a pro-forma basis.

Amid recent market uncertainties, our share buyback program has capitalized on attractive market price discounts to our NAV per share, supported by our strong balance sheet. Recognizing the significant undervaluation of our shares, we have already repurchased 666,657 shares

Given our continued strong financial performance, we have declared a supplemental distribution of \$0.05/share for both Q3 and Q4."

Looking ahead, CION is confidently positioned to deliver robust returns to shareholders."

in 2023, reaffirming our confidence in the company's future growth and potential.

SELECTED FINANCIAL HIGHLIGHTS

	As of
(in thousands, except per share data)	June 30, 2023		March 31, 2023
1 Investment portfolio, at fair value	\$ 1,687,691	\$	1,657,026
2 Total debt outstanding	\$ 985,712	\$	1,010,712
Net assets	\$ 836,364	\$	830,310
Net asset value per share	\$ 15.31	\$	15.11
Debt-to-equity	1.18x		1.22x
Net debt-to-equity	1.04x		1.02x
	Three Months Ended
(in thousands, except share and per share data)	June 30, 2023		March 31, 2023
Total investment income	\$ 58,496	\$	64,975
Total operating expenses and income tax expense	\$ 35,080	\$	35,117
Net investment income after taxes	\$ 23,416	\$	29,858
Net realized losses	\$ (18,928)	\$	(4,525)

Net unrealized gains (losses)	\$	23,406	\$ (56,378)
Net increase (decrease) in net assets resulting from operations		27,894	\$ (31,045)
Net investment income per share	\$	0.43	\$ 0.54
Net realized and unrealized gains (losses) per share	\$	0.08	\$ (1.10)
Earnings per share	\$	0.51	\$ (0.56)
Weighted average shares outstanding		54,788,740	55,109,482
Distributions declared per share	\$	0.34	\$ 0.34

Total investment income for the three months ended June 30, 2023 and March 31, 2023 was \$58.5 million and \$65.0 million, respectively. The decrease in investment income was primarily driven by a decrease in dividend income from certain investments and fees generated from investment activity, partially offset by an increase in SOFR and LIBOR rates, during the three months ended June 30, 2023 compared to the three months ended March 31, 2023.

Operating expenses for the three months ended June 30, 2023 and March 31, 2023 were \$35.1 million. During the quarter ended June 30, 2023, the Company incurred higher interest expense due to an increase in SOFR and LIBOR rates which was offset by lower advisory fees as compared to the quarter ended March 31, 2023.

PORTFOLIO AND INVESTMENT ACTIVITY 1

A summary of the Company's investment activity for the three months ended June 30, 2023 is as follows:

		New Investment
	Commitments		Sales and Repayments
	\$ in	%	\$ in	%
Investment Type	Thousands	of Total	Thousands	of Total
Senior secured first lien debt	\$ 62,779	90%	\$ 54,498	100%
Senior secured second lien debt	—	—	5	—
Collateralized securities and structured products - equity	—	—	96	—
Unsecured debt	4,200	6%	—	—
Equity	2,906	4%	—	—
Total	\$ 69,885	100%	\$ 54,599	100%

During the three months ended June 30, 2023, new investment commitments were made across 4 new and 8 existing portfolio companies. During the same period, the Company received the full repayment of a loan from one portfolio company. As a result, the number of portfolio companies increased from 109 as of March 31, 2023 to 112 as of June 30, 2023.

PORTFOLIO SUMMARY 1

As of June 30, 2023, the Company's investments consisted of the following:

	Investments at Fair Value
	\$ in	%
Investment Type	Thousands	of Total
Senior secured first lien debt	\$ 1,468,630	87.0%
Senior secured second lien debt	39,544	2.3%
Collateralized securities and structured products - equity	1,046	0.1%
Unsecured debt	17,301	1.0%
Equity	161,170	9.6%
Total	\$ 1,687,691	100.0%

The following table presents certain selected information regarding the Company's investments:

Date: 08/08/2023 07:45 PM	Toppan Merrill	Project: 23-23053-1 Form Type: 8-K
Client: 23-23053-1_CION Investment Corporation_8-K		File: tm2323053d1_ex99-1.htm Type: EX-99.1 Pg: 4 of 8

	As of
	June 30, 2023	March 31, 2023
Number of portfolio companies	112	109
3 Percentage of performing loans bearing a floating rate	92.2%	92.8%
3 Percentage of performing loans bearing a fixed rate	7.8%	7.2%
Yield on debt and other income producing investments at amortized cost4	12.38%	11.97%
Yield on performing loans at amortized cost4	13.10%	12.90%
Yield on total investments at amortized cost	11.45%	11.18%
Weighted average leverage (net debt/EBITDA)5	4.83x	5.11x
5 Weighted average interest coverage	2.00x	2.07x
6 Median EBITDA	\$35.0 million	\$35.0 million

As of June 30, 2023, investments on non-accrual status represented 1.7% and 4.8% of the total investment portfolio at fair value and amortized cost, respectively. As of March 31, 2023, investments on non-accrual status represented 3.5% and 6.8% of the total investment portfolio at fair value and amortized cost, respectively.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2023, the Company had \$986 million of total principal amount of debt outstanding, comprised of \$700 million of outstanding borrowings under its senior secured credit facilities and \$286 million of unsecured notes and term loans. The combined weighted average interest rate on debt outstanding was 7.9% for the quarter ended June 30, 2023. As of June 30, 2023, the Company had \$112 million in cash and short-term investments and \$125 million available under its financing arrangements.²

EARNING CONFERENCE CALL

CION will host an earnings conference call on Wednesday, August 9, 2023 at 11:00 am Eastern Time to discuss its financial results for the second quarter ended June 30, 2023. Please visit the Investor Resources - Events and Presentations section of the Company's website at www.cionbdc.com for a slide presentation that complements the earnings conference call.

All interested parties are invited to participate via telephone or listen via the live webcast, which can be accessed by clicking the following link: CION Investment Corporation Second Quarter 2023 Financial Results Webcast. Domestic callers can access the conference call by dialing (877) 484-6065. International callers can access the conference call by dialing +1 (201) 689-8846. All callers are asked to dial in approximately 10 minutes prior to the call. An archived replay will be available on a webcast link located in the Investor Resources - Events and Presentations section of CION's website.

ENDNOTES

1) The discussion of the investment portfolio excludes short-term investments.

• 2) Total debt outstanding excludes netting of debt issuance costs of \$9.0 million and \$8.3 million as of June 30, 2023 and March 31, 2023, respectively.
• 3) The fixed versus floating composition has been calculated as a percentage of performing debt investments measured on a fair value basis, including income producing preferred stock investments and excludes investments, if any, on non-accrual status.
• 4) Computed based on the (a) annual actual interest rate or yield earned plus amortization of fees and discounts on the performing debt and other income producing investments as of the reporting date, divided by (b) the total performing debt and other income producing investments (excluding investments on non-accrual status) at amortized cost. This calculation excludes exit fees that are receivable upon repayment of the investment.

Date: 08/08/2023 07:45 PM	Toppan Merrill	Project: 23-23053-1 Form Type: 8-K
Client: 23-23053-1_CION Investment Corporation_8-K		File: tm2323053d1_ex99-1.htm Type: EX-99.1 Pg: 5 of 8

5) For a particular portfolio company, the Company calculates the level of contractual indebtedness net of cash ("net debt") owed by the portfolio company and compares that amount to measures of cash flow available to service the net debt. To calculate net debt, the Company includes debt that is both senior and pari passu to the tranche of debt owned by it but excludes debt that is legally and contractually subordinated in ranking to the debt owned by the Company. The Company believes this calculation method assists in describing the risk of its portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by the Company relative to other senior and junior creditors of a portfolio company. The Company typically calculates cash flow available for debt service at a portfolio company by taking EBITDA for the trailing twelve-month period. Weighted average net debt to EBITDA is weighted based on the fair value of the Company's performing debt investments and excluding investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue.

For a particular portfolio company, the Company also calculates the level of contractual interest expense owed by the portfolio company and compares that amount to EBITDA ("interest coverage ratio"). The Company believe this calculation method assists in describing the risk of its portfolio investments, as it takes into consideration contractual interest obligations of the portfolio company. Weighted average interest coverage is weighted based on the fair value of the Company's performing debt investments, excluding investments where interest coverage may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue.

Portfolio company statistics, including EBITDA, are derived from the financial statements most recently provided to the Company for each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by the Company and may reflect a normalized or adjusted amount.

6) Median EBITDA is calculated based on the portfolio company's EBITDA as of the Company's initial investment.

CĪON Investment Corporation Consolidated Balance Sheets

(in thousands, except share and per share amounts)

		June 30, 2023 March 31, 2023
		(unaudited) (unaudited)
Assets
Investments, at fair value:
Non-controlled, non-affiliated investments (amortized cost of \$1,583,865 and \$1,576,870, respectively)	\$	1,510,372	\$	1,479,976
Non-controlled, affiliated investments (amortized cost of \$204,248 and \$169,539, respectively)		198,084		162,785
Controlled investments (amortized cost of \$76,900)		80,006		80,591
Total investments, at fair value (amortized cost of \$1,823,309 and \$1,803,609, respectively)		1,788,462		1,723,352
Cash		11,515		96,016
Interest receivable on investments		33,200		27,333
Receivable due on investments sold and repaid		997		3,239
Prepaid expenses and other assets		608		4,552
Total assets	\$	1,834,782	\$	1,854,492
Liabilities and Shareholders' Equity
Liabilities
Financing arrangements (net of unamortized debt issuance costs of \$8,976 and \$8,316, respectively)	\$	976,737	\$	1,002,396
Accounts payable and accrued expenses		1,344		1,075
Interest payable		8,183		7,007
Accrued management fees		6,546		6,676
Accrued subordinated incentive fee on income		4,967		6,334
Accrued administrative services expense		574		694
Share repurchases payable		67		—
Total liabilities		998,418		1,024,182
Shareholders' Equity
Common stock, \$0.001 par value; 500,000,000 shares authorized; 54,645,571 and 54,961,455 shares issued, and 54,632,827 and 54,961,455 shares outstanding, respectively		55		55
Capital in excess of par value		1,037,729		1,040,955
Accumulated distributable losses		(201,420)		(210,700)
Total shareholders' equity		836,364		830,310
Total liabilities and shareholders' equity	\$	1,834,782	\$	1,854,492
Net asset value per share of common stock at end of period	\$	15.31	\$	15.11

CĪON Investment Corporation Consolidated Statements of Operations

(in thousands, except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2023 2022 2023 2022 2022 (unaudited) (unaudited) (unaudited) (unaudited) Investment income Non-controlled, non-affiliated investments Interest income \$ 47,117 \$ 31,749 \$ 89,885 \$ 62,743 \$ 140,560 Paid-in-kind interest income 4,297 4,613 9,128 9,219 22,737 Fee income 1,154 2,554 2,297 3,503 9,019 Dividend income — — — 46 103 Non-controlled, affiliated investments Interest income 1,734 1,545 4,208 2,568 5,865 Dividend income 52 53 3,933 53 79 Paid-in-kind interest income 1,751 874 3,482 2,319 6,204 Fee income 477 13 2,397 506 525 Controlled investments Dividend income — — 4,250 — 1,275 Interest income 1,914 1,742 3,891 3,869 6,049 Paid-in-kind interest income — 409 — 409 2,482 Total investment income 58,496 43,552 123,471 85,235 194,898 Operating expenses Management fees 6,546 6,839 13,222 13,494 27,361 Administrative services expense 910 781 1,747 1,501 3,348 Subordinated incentive fee on income 4,965 4,091 11,300 8,224 18,710 General and administrative 2,074 1,712 4,029 3,934 7,278 Interest expense 20,467 10,841 39,776 19,300 49,624 Total operating expenses 34,962 24,264 70,074 46,453 106,321 Net investment income before taxes 23,534 19,288 53,397 38,782 88,577 Income tax expense, including excise tax 118 — 123 11 372 Net investment income after taxes 23,416 19,288 53,274 38,771 88,205 Realized and unrealized (losses) gains Net realized (losses) gains on: Non-controlled, non-affiliated investments (18,928) 180 (23,453) 208 (11,217) Non-controlled, affiliated investments — — — (97) (21,530) Foreign currency — — — — (3) Net realized (losses) gains (18,928) 180 (23,453) 111 (32,750) Net change in unrealized appreciation (depreciation) on: Non-controlled, non-affiliated investments 23,396 (17,482) (17,690) (24,977) (19,807) Non-controlled, affiliated investments 595 (1,577) (9,695) (5,357) 13,523 Controlled investments (585) (1,675) (5,587) (1,925) 970 Net change in unrealized appreciation (depreciation) 23,406 (20,734) (32,972) (32,259) (5,314) Net realized and unrealized gains (losses) 4,478 (20,554) (56,425) (32,148) (38,064) Net increase (decrease) in net assets resulting from operations \$ 27,894 \$ (1,266) \$ (3,151) \$ 6,623 \$ 50,141 Per share information—basic and diluted Net increase (decrease) in net assets per share resulting from operations \$ 0.51 \$ (0.02) \$ (0.06) \$ 0.12 \$ 0.89 Net investment income per share \$ 0.43 \$ 0.34 \$ 0.97 \$ 0.68 \$ 1.56

Weighted average shares of common stock outstanding 54,788,740 56,958,440 54,948,225 56,958,440 56,556,510

ABOUT CION INVESTMENT CORPORATION

CION Investment Corporation is a leading publicly listed business development company that had approximately \$1.8 billion in total assets as of June 30, 2023. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and an affiliate of CION. For more information, please visit www.cionbdc.com.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "project," "target," "estimate," "intend," "continue," or "believe" or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss CION's plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters. These statements represent CION's belief regarding future events that, by their nature, are uncertain and outside of CION's control. There are likely to be events in the future, however, that CION is not able to predict accurately or control. Any forward-looking statement made by CION in this press release speaks only as of the date on which it is made. Factors or events that could cause CION's actual results to differ, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors CION identifies in the sections entitled "Risk Factors" and "Forward-Looking Statements" in filings CION makes with the SEC, and it is not possible for CION to predict or identify all of them. CION undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

OTHER INFORMATION

The information in this press release is summary information only and should be read in conjunction with CION's Quarterly Report on Form 10-Q, which CION filed with the SEC on August 9, 2023, as well as CION's other reports filed with the SEC. A copy of CION's Quarterly Report on Form 10-Q and CION's other reports filed with the SEC can be found on CION's website at www.cionbdc.com and the SEC's website at www.sec.gov.

CONTACTS Media

Susan Armstrong sarmstrong@cioninvestments.com

Investor Relations 1-800-343-3736

Analysts and Institutional Investors James Carbonara Hayden IR (646)-755-7412 James@haydenir.com

Exhibit 99.2

CION Investment Corporation Second Quarter 2023 Earnings Presentation

Disclosures and Forward-Looking Statements

Topnan Merrill

The information this earings presentation should be viewed in conjunction with the earnings corporation (WS: CON) ("CON" or the "Conpary" held on August 9. 202 as well as the Conner's Quartery Report on 50. 2023 that was fleet with the Securities and Exchange Commission the "SCC" on August 9, 2023. The information contained herein may not be used, reproduced to others, in whole or in part, for any other purpose without the prior written consent of the Company,

This earnings presentation nay contain for involve substantlar instandary induding the impact of inflation, ring interest rates supply-chain discriptions and the risk of reeession on the business, future operating the Company and is portfolio companies. You can identify thee statements by the use of forward-looking terminology sun as "may", "Should," "exect," "anticipate" "project", "tontinue" or "belev" or the negatives thereof or other variations thereon or comparable termindop, including references to assumptions, foreasts of future results, sharese coverage and willibility and access o capital. You should read statements that contain these words carefuly beause the company's plans, strategies, prosections concerning is business, perating results, financial condition and other similar matters. These statencers represe Company's belief regarding for events that outside of the Company's control, such as the price at which the Company's shares of common stock will trade on the WSE. Any foward-boking statenent made by the Company in the date on which the Company makes it. Factor or events that could couse the Company's actual results to differ, possibly rom its expectations, included by the risks, uncertainties and other factors the company identifies in the sections entitled "Risk Factors" and "Erward-Looking State flings the Company makes with the SE, and it is not possible in identify al of them. The Company undertakes no obligation to update or revise public) any forward-oding statem whether as a result of new information, future events or otherwise, except as required by law.

This earnings presentation does not constitute prospection of a circumstances be understood as a offer to by the Company's common stock or any other securities nor will here be any sther securities refered to in this earling presentation in which such offer, soliciation or sale wold be unlawful prio the registration or qualification under the securities laws of such state or jurisdiction.

Nothing in these naterials should be construed in any securities that may be issued by the Company or as legal, accurring or tax advice. An investment in securities of the ty described heein presents certain risk. The Company is management, LLC, an affiliate of the Company. Nothing contained heel n shall be reliev upon as a romise or representatio whether as to past or future performance.

The information contained in this earnings information that is intended to be considered in the context of other public anouncements that the Company may make, by press eless otherwise, for time to the Company underation to public) update or revise the information contained in this earnings presentation, exegt as required by law. These materials c information about the Company, certain of its historical performance. You should not view information related to past performance of the Company as industive of it future esu the achievement of which cannot be assured.

Past performance does not guarantee foure results whith income derived from investments will fluctuate and can go down a well a up. A loss of principal may occur.

(\$ in millions)	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Q2 2022
Investment portfolio, at fair value(13)	\$1,688	\$1,657	\$1,749	\$1,797	\$1,791
Total debt outstanding (2)	2986	\$1,011	\$958	\$958	\$948
Net assets	\$836	\$830	\$884	\$915	\$905
Debt-to-equity	1.18x	1.22x	1.08x	1.05x	1.05x
Net debt-to-equity	1.04x	1.02x	0.98x	0.99x	0.98x
Total investment income	\$58.5	\$65.0	\$55.5	\$54.2	\$43.6
Net investment income	\$23.4	\$29.9	\$23.9	\$25.6	\$19.3
Net realized and unrealized gains (losses)	\$4.5	(SEO.9)	(\$14.4)	\$8.4	(\$20.6)
Net increase (decrease) in net assets resulting from operations	\$27.9	(\$31.0)	\$9.5	\$34.0	(\$1.3)
Per Share Data
Net asset value per share	\$15.31	\$15.11	\$15.98	\$16.26	\$15.89
Net investment income per share	\$0.43	\$0.54	\$0.43	\$0.45	\$0.34
Net realized and unrealized gains (losses) per share	\$0.08	(\$1.10)	(\$0.26)	\$0.15	(\$0.36)
-------------------------------------------------------------------------------------------------	AAPA	IAA PI	AA 49	An Ca	140 001

3 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 \$0.27 per share during the quarter ended December 31, 2022.

Second Quarter and Other Highlights - Ended June 30, 2023

· Net investment income and earnings per share for the quarter ended June 30, 2023 were \$0.43 per share, respectively;

Topnan Merrill

• Net asset value per share was \$15.31 as of June 30, 2023. The increase was primarily due to the Company out earning its distribution for the period and mark-to-market adjustments to the Company's portfolio;
• * As of June 30, 2023, the Company had \$986 million of telst outstanding, of which 72% was comprised of senior secured bank debt and 29% was comprised of unsecured debt. The Company's net debt-to-equity ratio was 1.04x as of June 30, 2023 compared to 1.02x as of March 31, 2023;
• As of June 30, 2023, the Company had total investments at fair value of \$1,688 million in 112 portfolio companised on the investment portfolio was comprised of 89.3% senior secured loans, including 87.0% in first lien investments;1
• During the quarter, the Company funded new invests of \$62 million, funded previously unfunded commitments of \$8 million, and had sales and repayments totaling \$55 million, resulting in a net increase to the Company's funded portfolio of \$15 million;
• . As of June 30, 2023, investments on non-accrual status anounted to 1.7% and 4.8% of the total investment portfolio at fair value and anortied cost, respectively;
• During the Company repurchased 326,628 shares of ts common stock under its 105-1 trading plan at average price of \$9.81 per share for a total repurchase . anount of \$3.2 million. Through June 30, 2023, the Common stock under its common stock under its 10b5-1 trading plan at an average price of \$9.57 per share for a total repurchase amount of \$22.3 million, and;
• During the quarter, the Company amended its secured credit JPMorgan Chase Bank, National Association and US AG to, among other things, extend the . maturity dates for one year to May 2025 and November 2024, respectively.

DISTRIBUTIONS

• For the quarter ended June 30, 2023, the Company paid a regular quarterly distribution totaling \$18.6 million, or \$0.34 per share; and
• · On August 7, 2023, the Company's co-chief elective officer 2023 regular distibution of \$0.34 per share payable on September 15, 2023 to shareholders of record as of September 1, 2023 and (ii) a supplemental distribution of \$0.05 per share for to 2023, payable on October 16, 2023 and January 15, 2024, respectively, to shareholders of record as of September 29, 2023, respectively,

(1) The discussion of the investment portfolio excludes short term investments.

4

Investment Activity

• New investment commitments for the quarter were \$62 million, all of which were funded.
• · New investment commitments were made across 4 new and 8 existing portfolio companies.
• Fundings of previously unfunded commitments for the quarter were \$8 million.
• · Sales and repayments totaled \$55 million for the quarter, which included the full repayment of the investment in 1 portfolio company.

Toppan Merrill

(\$ in millions)	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Q2 2022
New investment commitments	\$62	\$15	\$92	\$134	\$184
Funded	\$62	\$14	\$83	\$127	\$165
Unfunded	ડેવ	\$1	ಧಿಗಾವಿದ್ಯಾನಿಕೊಂಡಿದ್ದಾರೆ. ಇದರಿಂದ ಸಾಮಾನ್ಯ ಸಾಮಾನ್ಯ ಸಾಮಾನ್ಯ ಮತ್ತು ಮಾರ್ಥಿಕ ಮಾರ್ಥಿಕ ಮಾರ್ಥಿಕ ಮಾರ್ಥಿಕ ಮಾರ್ಥಿಕ ಮಾರ್ಗ್ ಮತ್ತು ಮಾರ್ಗ್ ಮೊದಲ ಮೊದಲ ಮೊದಲ ಮೊದಲ ಮೊದಲ ಮೊದಲ ಮೊದಲ ಮೊದಲ ಮೊದಲ ಮೊದಲ ಮ	\$7	\$19
Fundings of previously unfunded commitments	રૂક	ਟੈਰੇ	\$16	\$14	\$8
Repayments	(ટેટર)	(\$57)	(\$102)	(\$143)	(\$103)
Sales	(\$2)	(રેત્ર)	(\$42)	(\$12)	(\$7)
Net funded investment activity	\$15	(\$43)	(\$46)	(\$14)	\$63
Total Portfolio Companies	112	109	113	119	121

The discusion of the investment. Unfuded commitments are generally subject to borrowers neeting certain criteria such as compliance with coverant and certain operational metrics. These amounts may remain outsil the commitment period of an expires, which may be shorter than the loan's maturity date.

5

6 Portfolio Asset Composition 87% 89% 90% 90% 93% 2% 2% 2% 2% 1% 0% * 0% * 0% * 0% * 0% * 1% 1% 2% 2% 2% 10% 8% 6% 6% 4% \$1,688 \$1,657 \$1,749 \$1,797 \$1,791 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 End of Period Investments (in millions) * Less than 1%. The discussion of the investment portfolio is at fair value and excludes short term investments. 88% 87% 99% 84% 98% 14% 1% 7% 5% 13% 1% 2% 1% \$62 \$15 \$92 \$134 \$184 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 New Investment Commitments (in millions)

Credit Quality of Investments

Indicates the least amount of risk to our initial cost basis. 1

The tends and risk factors for this investment in acquisition are generally favorable, which may include the porformance of the potfolio compary or a potential ext

Toppan Merrill

• Indicates a level of risk to our initial cost basis that is similar to the risk to our initial cost basis at the time of origination or acquisition. 2
• This portfolio company is generally performing in accordance with our analysis of its business and the full return of principal and interest or dividend is expected.
• Indicates that the risk to our ability to recoup the cosed since origination or acquisition, but full return of principal and interest or dividend is expected. 3 A portfolio company with an investment rating of 3 requires closer monitoring.
• Indicates that the risk to our ability to recoup the incresed significardly since or intime on accusition, including as a necil of factors such as declining performance and n covenants

We expect some loss of interest, dividend or capital appreciation, but still expect an overall positive internal rate of return on the investment.

5 Indicates that the risk to our ability to recoped naterally since origination or acquisition and the portfolio comany likely has materally decling performance Loss of interest or dividend and some loss of principal is expected, which would result in an overal negative internal ate of return on the investment.

(1) The discussion of the investment portfolio excludes short term investments.

7

89.3% Senior Secured Debt Investments PORTFOLIO BY SECURITY TYPE (4) PORTFOLIO BY INTEREST RATE TYPE (4) 87.0% 2.3% 9.6% 0.1% 1.0% ▪ First Lien Debt (87.0%) ▪ Second Lien Debt (2.3%) ▪ Equity (9.6%) ▪ Collateralized Securities & Structured Products: Equity (0.1%) ▪ Unsecured Debt (1.0%) ▪ Floating Interest Rate Investments (82.6%) ▪ Fixed Interest Rate Investments (7.4%) ▪ Non - Income Producing Investments (6.6%) ▪ Other Income Producing Investments (3.4%) Portfolio Summary 8 ( 1 ) See endnote 4 in our press release filed with the SEC on August 9 , 2023 . ( 2 ) See endnote 5 in our press release filed with the SEC on August 9 , 2023 . ( 3 ) See endnote 6 in our press release filed with the SEC on August 9 , 2023 . ( 4 ) The discussion of the investment portfolio excludes short term investments . 82.6% 7.4% 6.6% 3.4%

Portfolio Characteristics (as of June 30, 2023)				PORTFOLIO BY SECURITY TYPE(4)
Investment Portfolio		0.1% 1.0% 89.3% Senior
Total investments and unfunded commitments	\$1,744.1 million Secured Debt	9.6%
Unfunded commitments	\$56.4 million	2.3% Investments
Investments at fair value	\$1,687.7 million			First Lien Debt (87.0%)
Yield on debt and other income producing investments at amortized cost [1]	12.38%			Second Lien Debt (2.3%)
Yield on performing loans at amortized cost121	13.10%			Equity (9.6%)
Yield on total investments at amortized cost	11.45%			Collateralized Securities & Structured Products: Equity
				(0.1%)
Portfolio Companies			87.0%	Unsecured Debt (1.0%)
Number of portfolio companies	112
Weighted average leverage (net debt/EBITDA)(2)	4.83x
Weighted average interest coverage 121	2.00x
Median EBITDA(3)	\$35.0 million			PORTFOLIO BY INTEREST RATE TYPE(4)
Industry Diversification(4)		6.6%	3.4%
Industry	% of Investment Portfolio
Services: Business	18.0%
Healthcare & Pharmaceuticals	14.0%	7.4%		Floating Interest Rate
Media: Diversified & Production	7.3%			Investments (82.6%)
Media: Advertising, Printing & Publishing	6.5%			Fixed Interest Rate
Services: Consumer	6.3%			Investments (7.4%)
Other (≤ 4.8% each)	47.9%		82.6%	Non-Income Producing Investments (6.6%)
				Other Income Producing

All figures in thousands, except share and per share data		Q2 2023		Q1 2023		Q4 2022		Q3 2022		Q2 2022
Investment income
Interest income (1)	ં ડ	56,813	S	53,781	S	53,238	ട	49,532	5	40,932
Dividend income		52		8,131		1,288		70		53
Fee income		1,631		3,063		974		4,561		2,567
Total investment income	ર્ડ	58,496	ഗ	64,975	ટ	55,500	ર	54,163	ഗ	43,552
Expenses
Management fees	ા રે	6,546	S	6,676	5	6,925	5	6,942	5	6,839
Interest and other debt expenses		20,467		19,309		16,855		13,469		10,841
Incentive fees		4,965		6,335		5,065		5,421		4,091
Other operating expenses		2,984		2,792		2,431		2,760		2,493
Total expenses before taxes	ર્ડ	34,962	ર	35,112	ર	31,276	ഗ	28,592	5	24,264
Income tax expense, including excise tax		118		5		347		14
Net investment income after taxes		23,416	ഗ	29,858	ഗ	23,877		\$ 25,557		\$ 19,288
Net realized and unrealized gains (losses)
Net realized (loss) gain	15	(18,928)	ഗ	(4,525)	5	(15,692)	ട	(17,169)	5	180
Net change in unrealized appreciation (depreciation)		23,406		(56,378)		1,350		25,595		(20,734)
Net realized and unrealized gains (losses)	: \$	4,478 :	5	(60,903)		\$ (14,342)	ട	8,426		\$ (20,554)
Net increase (decrease) in net assets resulting from operations		27,894		\$ (31,045)	ર્ડ	9,535	5	33,983		\$ (1,266)
Per share data
Net investment income	s	0.43	5	0.54	5	0.43	5	0.45	5	0.34
Net realized gain (loss) and unrealized appreciation (depreciation) on investments	1 5	0.08	5	(1.10)	5	(0.26)	5	0.15	\$	(0.36)
Earnings per share	ં ડ	0.51	S	(0.56)	5	0.17	5	0.60	5	(0.02)
Distributions declared per share (2)	: ડ	0.34	5	0.34	S	0.58	5	0.31	5	0.28
Weighted average shares outstanding		54,788,740		55,109,482		55,505,248		56,816,992		56,958,440
Shares outstanding, end of period		54,632,827		54,961,455		55,299,484		56,262,964		56,958,440

Quarterly Operating Results 9

All figures in thousands, except per share data and asset coverage ratio	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Q2 2022
Assets
Investments, at fair value	\$1,788,462.	\$1,723,352	\$1,760,030	\$1,807,048	\$1,805,452
Cash	11,515.	96,016	82,739	43,661	42,542
Interest receivable on investments	33,200!	27,333	26,526	26,976	21,962
Receivable due on investments sold	997	3,239	1,016	7,146	2,713
Dividend receivable on investments			1,275
Prepaid expenses and other assets	୧୦୫	4,552	825	841	2,112
Total Assets	\$1,834,782;	\$1,854,492	\$1,872,411	\$1,885,672	\$1,874,781
Liabilities & Net Assets
Financing arrangements (net of debt issuance costs)14/	\$976,737	\$1,002,396	\$951,322	\$950,486	\$939,651
Payable for investments purchased					11,635
Accounts payable and accrued expenses	1,344	1,075	1,012	1,853	1,194
Interest payable	8,183	7,007	7,820	5,143	5,603
Accrued management fees	6,5461	6,676	6,924	6,943	6,839
Accrued subordinated incentive fee on income	4,9671	6,334	5,065	5,421	4,091
Accrued administrative services expense	5741	694	1,703	604	530
Share repurchase payable	67			316
Shareholder distribution payable			14,931
Total Liabilities	\$998,418	\$1,024,182	\$988,777	\$970,766	\$969,543
Total Net Assets	\$836,364	\$830,310	\$883,634	\$914,906	\$905,238
Total Liabilities and Net Assets	\$1,834,782	\$1,854,492	\$1,872,411	\$1,885,672	\$1,874,781
Net Asset Value per share	\$15.31	\$15.11	\$15.98	\$16.26	\$15.89
Asset coverage ratio(2)	1.85	1.82	1.92	1.96	1.96

Quarterly Balance Sheet 10

11 Q2 2023 Net Asset Value Bridge Per Share Data

12 Total Commitment Amount Principal Amount Outstanding Interest Rate Maturity Date JPM Credit Facility \$675 \$600 S + 3.20% (2) 5/15/2025 UBS Facility 150 100 S + 3.53% (3) 11/19/2024 Unsecured Notes, 2026 (1) 125 125 4.50% 2/11/2026 Series A Unsecured Notes, 2026 (1) 81 81 S + 3.82% 8/31/2026 2022 Unsecured Term Loan (1) 50 50 S + 3.50% 4/27/2027 2021 Unsecured Term Loan (1) 30 5.20% 9/30/2024 Total Debt \$1,111 \$986 7.9% Debt Summary DEBT MATURITIES (\$ in millions) DEBT SCHEDULE (\$ in millions) \$125 million in available capacity within existing senior secured facilities (1) Investment grade credit rating. (2) Bears interest at a rate of SOFR + 3.05% and a LIBOR to SOFR credit spread adjustment of 0.15%. (3) Will bear interest at a rate of SOFR + 3.20% commencing November 19, 2023.

											Fiscal Year
		Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	2021	2022
Net Investment Income (per share)		\$0.35	\$0.32	\$0.34	\$0.34	\$0.45	\$0.43	\$0.54	\$0.43	\$1.31	\$1.56
Distribution (per share)		\$0.26	\$0.46(1)	\$0.28	\$0.28	\$0.31	\$0.58(1)	\$0.34	\$0.34	\$0.79	\$0.87
Distribution coverage		1.32x	0.70x	1.21x	1.21x	1.45x	0.74x	1.59x	1.26x	1.65x	1.79x
								\$0.58
	\$0.46							\$0.27
	\$0.20
\$0.26	\$0.26		\$0.28	\$0.28		\$0.31		\$0.31	\$0.34		\$0.34
Q3 2021	Q4 2021		Q1 2022	Q2 2022 Regular Distribution		Q3 2022 YE Special Distribution		Q4 2022	Q1 2023		Q2 2023

13 Distribution Per Share and Distribution Coverage 1 (1) Includes special distributions of \$0.20 per share and \$0.27 per share during Q4 2021 and Q4 2022, respectively.
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