Cion Investment Corp (CION) 2026 Q1 法說會逐字稿

Good morning, and welcome to CION Investment Corporation's First Quarter 2026 Earnings Conference Call. An earnings press release was distributed earlier this morning before market open. A copy of the release, along with a supplemental earnings presentation is available on the company's website at www.cionbdc.com in the Investor Resources section and should be reviewed in conjunction with the company's Form 10-Q filed with the SEC.

早安，歡迎參加 CION Investment Corporation 2026 年第一季財報電話會議。公司已於今晨開盤前稍早發布財報新聞稿。新聞稿副本及補充財報簡報可於公司網站 www.cionbdc.com 的 Investor Resources（投資人資源）專區取得，並應與公司向美國證券交易委員會（SEC）提交的 Form 10-Q 一併閱讀。

As a reminder, this conference call is being recorded for replay purposes. Please note that today's conference call may contain forward-looking statements, which are not guarantees of future performance or results and involve a number of risks and uncertainties.

提醒各位，本次電話會議將錄音以供回放。另請注意，今日電話會議可能包含前瞻性陳述；該等陳述不保證未來績效或結果，且涉及多項風險與不確定性。

Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the company's filings with the SEC. Joining me on today's call will be Mark Gatto, CION Investment Corporation's Co-Chief Executive Officer; Gregg Bresner, President and Chief Investment Officer; and Keith Franz, Chief Financial Officer. With that, I would now like to turn the call over to Mark Gatto. Please go ahead, Mark.

由於多項因素（包括公司向 SEC 提交文件中所述因素），實際結果可能與前瞻性陳述存在重大差異。今日與我一同出席的有：CION Investment Corporation 共同執行長 Mark Gatto；總裁兼投資長 Gregg Bresner；以及財務長 Keith Franz。接下來，我想把電話交給 Mark Gatto。Mark，請開始。

Thank you, and good morning, everyone. I want to start this morning the way we have on prior calls by putting our quarterly results in the proper context before walking through the details. While this was not our strongest quarter from a headline numbers perspective, I want to make clear that the story underneath those numbers is more nuanced than the headline suggests, and we believe there is quite a bit to feel good about as we look at the underlying health of our portfolio.

謝謝，各位早安。我想如同以往的電話會議一樣，先將本季結果放在適當脈絡下，再進一步說明細節。雖然從表面數字來看，這一季並非我們最強的一季，但我想明確指出，這些數字背後的情況比標題所呈現的更為細緻；就投資組合的基本健康狀況而言，我們認為仍有相當多值得肯定之處。

I think it is important that investors and analysts understand what actually drove our results this quarter and evaluate us not quarter-to-quarter, but on a more long-term basis. Let me start with investment income. We reported $0.25 per share for the first quarter, which is below our monthly base distributions totaling $0.30 per share for the first quarter. This shortfall was driven primarily by lower transaction fees recorded during the quarter due to lower repayment and investment activity and lower dividend income earned on our investments.

我認為投資人與分析師理解本季結果的真正驅動因素很重要，並應以較長期而非逐季的角度來評估我們。我先從投資收益談起。我們第一季每股投資收益為 0.25 美元，低於第一季每月基本配息合計的每股 0.30 美元。此一差額主要源自本季因還款與投資活動較少而認列的交易費用下降，以及我們投資所取得的股利收入較低。

This shortfall was also driven by higher interest expense during the first quarter due to the refinancing of our lower-yielding fixed rate notes and senior secured debt into higher-yielding fixed rate unsecured notes, and the timing of paying down our debt with the net offering proceeds received from the recent issuances of our new unsecured notes due to potential prepayment penalties as all of our debt is currently at their contractual minimums.

此一差額亦受到第一季利息費用上升的影響，原因包括：我們將較低殖利率的固定利率票據與優先擔保債務再融資為較高殖利率的固定利率無擔保票據；以及因所有債務目前皆處於契約最低水位、提前償還可能產生提前清償罰金，故以近期新發行無擔保票據所取得的淨募資款項償還債務的時點安排所致。

As a result, we carried more excess cash on our balance sheet than we would have under normal operating conditions, essentially sitting on proceeds we could not deploy. This was attributable to a specific capital structure decision we made that we believe was in the long-term interest of our shareholders, which we do not view as a reflection of the underlying earnings power of our portfolio.

因此，我們資產負債表上持有的超額現金高於正常營運情況，基本上是持有了無法部署的資金。這源於我們所做的一項特定資本結構決策；我們相信該決策符合股東的長期利益，並不認為這反映了投資組合的內在獲利能力。

Gregg and Keith will provide further context, but I want to be clear that we believe that the underlying earnings capacity of our portfolio remains intact, and we remain optimistic about the trajectory from here. Turning to NAV. Our net asset value declined 4.7% quarter-over-quarter to $13.11 per share from $13.76 at year-end. As we have discussed on prior calls, mark-to-market movements in our portfolio can introduce quarterly volatility, and this quarter was no exception.

Gregg 與 Keith 將提供更多背景說明，但我想明確表示，我們認為投資組合的內在獲利能力仍然完好無虞，並對後續走勢保持樂觀。接著談 NAV。我們每股淨資產價值（NAV）較上季下降 4.7%，由年末的每股 13.76 美元降至每股 13.11 美元。如同先前電話會議所討論，投資組合的按市價評價變動可能帶來季度波動，本季亦不例外。

Importantly, over 80% of the downward movement in our marks this quarter were unrealized in nature and driven by market level influences, movements in comparable public company valuations and broader credit spread widening, and not by a fundamental credit deterioration at our portfolio companies.

重要的是，本季估值下調中超過 80% 屬未實現性質，主要由市場層面的影響、可比上市公司估值變動以及整體信用利差擴大所驅動，而非投資組合公司基本面信用狀況惡化所致。

This is an important distinction and one that gives us confidence in the underlying resilience of the book. I also want to address something directly that I know has been a topic of conversation in the BDC space broadly, the scrutiny around private credit marks and valuation rigor. We welcome that conversation because we believe that we have an extremely disciplined and transparent valuation process.

這是一個重要的區別，也讓我們對投資組合的內在韌性更具信心。我也想直接回應一個我知道在整體 BDC 領域廣受討論的議題：市場對私募信貸估值（marks）與估值嚴謹度的檢視。我們樂見這樣的討論，因為我們相信自身擁有極為嚴謹且透明的估值流程。

We utilize four independent third-party valuation providers, and the vast majority of our portfolio is subject to full independent review and scrutiny every quarter. We believe that process is comprehensive and rigorous, and we are committed to maintaining that standard.

我們採用四家獨立的第三方估值機構，且我們投資組合的絕大部分每季都會接受完整的獨立審查與檢視。我們認為該流程全面且嚴謹，並承諾維持此一標準。

At the same time, the incorporation of third-party macro assumptions and market level inputs can at times introduce marks on certain assets that may not fully reflect the underlying credit fundamentals of those positions, particularly given the secured and senior nature of our first lien holdings, which represents approximately 81% of the portfolio at the end of Q1.

同時，納入第三方的總體假設與市場層面輸入，有時可能使部分資產的估值調整未必能完全反映該等部位的信用基本面，特別是考量我們第一順位擔保（first lien）持倉具備擔保與優先受償特性，而其於第一季末約占投資組合的 81%。

We believe that the heightened focus on software credit quality across the private credit industry may have contributed to a broader tightening of third-party valuation assumptions that given the sector-wide nature of that scrutiny could have affected our portfolio in a manner disproportionate to our actual exposure.

我們認為，私募信貸產業對軟體類信用品質的高度關注，可能促使第三方估值假設在更廣泛層面趨於保守；由於此一檢視具有產業面向，可能使我們的投資組合受到的影響與我們實際曝險程度不成比例。

With software representing just 1.8% of our portfolio, well below the 20% to 25% average reported across many private credit portfolios, we do not believe the degree of mark-to-market pressure we experienced this quarter is fully consistent with our underlying fundamentals. On credit quality more broadly, I am pleased to report that our portfolio continues to hold up very well. Our first lien book remains the core of our strategy and continues to perform well.

由於軟體僅占我們投資組合的 1.8%，遠低於許多私募信貸投資組合所報告的 20% 至 25% 平均水準，我們不認為本季所承受的按市價評價壓力程度，完全符合我們的基本面狀況。就更廣泛的信用品質而言，我很高興報告我們的投資組合仍維持非常良好的表現。我們的第一順位擔保資產仍是策略核心，並持續表現穩健。

Weighted average interest coverage across the debt portfolio was a healthy 2.08x for the quarter, a level we view as consistent with the defensive construction of our portfolio. Weighted average net leverage on our debt portfolio was 4.62 times, essentially flat with 4.7 times in the prior quarter. From an internal risk rating perspective, our weighted average risk rating was essentially unchanged at 2.08% versus 2.09% in the prior quarter, and our risk rated four names improved quarter-over-quarter to 1.55% of the portfolio at fair value, down from 1.9% in Q4.

本季債務投資組合的加權平均利息保障倍數為健康的 2.08 倍，我們認為這與投資組合的防禦性建構一致。債務投資組合的加權平均淨槓桿為 4.62 倍，與前一季的 4.7 倍基本持平。就內部風險評等而言，我們的加權平均風險評等幾乎不變，為 2.08%，前一季為 2.09%；而風險評等為 4 的標的，其按公允價值計占投資組合比重較上季改善至 1.55%，低於第四季的 1.9%。

Our risk rated five names remained a very small portion of the portfolio at 0.54%. We had seven upgrades and 8 downgrades in the quarter, a largely balanced picture that we believe reflects no meaningful deterioration in the overall composition of the book.

風險評等為 5 的標的仍僅占投資組合極小部分，為 0.54%。本季我們有 7 項上調與 8 項下調，整體大致平衡；我們認為這反映投資組合整體結構並無實質性惡化。

On nonaccruals, I am pleased to share some positive news. Our nonaccrual percentage on a fair value basis improved to 1.53% as of March 31, down from 1.78% in the fourth quarter. The principal new addition to nonaccrual status this quarter was Lux Credit Consultants, which was in the midst of a sale process through quarter end. And I'm glad to report that subsequent to quarter close, that sale was successfully completed. As a result, we expect that Lux will be removed from nonaccrual status in Q2.

關於不計息資產（nonaccruals），我很高興分享一些正面消息。截至 3 月 31 日，我們按公允價值計的不計息比例改善至 1.53%，低於第四季的 1.78%。本季新增列入不計息狀態的主要項目為 Lux Credit Consultants，該公司於季末時正處於出售流程中。我也很高興報告，在季後該出售已順利完成。因此，我們預期 Lux 將於第二季自不計息狀態中移除。

Generally, our nonaccruals for the quarter were stable and consistent with our historical levels. More broadly, despite the volume of commentary out there about stress in private credit, we are simply not seeing broad-based deterioration across our middle market borrowers. And that is an important message. We believe that the domestic economy, while not without risks, continues to demonstrate underlying resilience.

一般而言，本季我們的非應計款項維持穩定，且與我們的歷史水準一致。更廣泛來看，儘管外界對私募信貸壓力的評論甚多，我們並未在中型市場借款人中看到普遍性的惡化。這是一項重要訊息。我們認為，國內經濟雖非毫無風險，但仍持續展現其內在韌性。

Our portfolio companies, the majority of which serve B2B end markets continue to operate in line with or close to our expectations. We remain mindful of the ongoing geopolitical developments and the uncertain macro backdrop, but our ground level view across 89 portfolio companies in 23 industries reflects a book that we believe is performing well and does not support the broad distressed narrative that circulates private credit portfolios in the press.

我們的投資組合公司（其中多數服務於B2B終端市場）持續以符合或接近我們預期的水準運作。我們仍留意持續的地緣政治發展與不確定的總體環境背景，但我們對23個產業、89家投資組合公司的第一線觀察顯示，我們認為該投資組合表現良好，並不支持媒體對私募信貸投資組合所流傳的廣泛困境敘事。

Finally, we repurchased approximately 1.1 million shares during the quarter at an average price of $8.71 and we believe current prices represent a compelling opportunity to acquire our shares at a meaningful discount to fair value. We intend to continue such repurchases while seeking to simultaneously reduce our overall leverage through debt repayments, a combination we believe will position CION well for the remainder of 2026. Keith will provide additional details on our capital structure and distribution activity.

最後，我們在本季以平均每股8.71美元回購約110萬股，我們認為目前股價提供了以相對於公允價值的顯著折價買回本公司股票的具吸引力機會。我們計畫在持續進行此類回購的同時，透過償還債務來同步降低整體槓桿；我們相信此一組合將使CION在2026年剩餘期間處於良好定位。Keith將就我們的資本結構與配息活動提供更多細節。

With that, I will now turn the call over to Gregg to discuss our portfolio and investment activity during the quarter.

接下來，我將把電話會議交給Gregg，請他說明本季的投資組合與投資活動。

Thank you, Mark, and good morning, everyone. Prior to covering our investment and portfolio activity for Q1, I would like to expand on Mark's comments regarding our nominal level of software exposure within the portfolio. We have three software portfolio companies totaling approximately 1.8% of portfolio fair value or 2% on an amortized cost basis. We have no ARR loans in the portfolio.

謝謝你，Mark，各位早安。在說明我們第一季的投資與投資組合活動之前，我想進一步補充Mark對於我們投資組合中名目軟體曝險水準的評論。我們有三家軟體投資組合公司，合計約占投資組合公允價值的1.8%，或以攤銷成本計約占2%。我們的投資組合中沒有ARR貸款。

As a firm, we've historically not invested in software as we were unwilling to lend against an ARR growth methodology with negative EBITDA profile at closing. In terms of our Q1 investment activity, we remained highly selective with new portfolio investments and focused on transactions within our portfolio companies and the repurchase of our shares.

就公司而言，我們歷來不投資軟體，因為我們不願在交割時以負EBITDA的狀況，依據ARR成長方法論來放款。就第一季投資活動而言，我們對新增投資組合投資仍保持高度審慎，並聚焦於投資組合公司內的交易以及回購本公司股票。

We also work to balance the timing of investments versus repayment amounts while working to reduce leverage towards our targeted net leverage range. Overall, we had fewer exiting repayments for the quarter versus our Q4 level as certain repayments slipped into Q2.

我們也致力於在投資時點與償還金額之間取得平衡，同時將槓桿降至我們目標的淨槓桿區間。整體而言，本季到期償還金額較第四季水準為少，因部分償還延後至第二季。

During the quarter, we continued to pass on new investment opportunities based on credit and pricing considerations. While secondary credit market conditions remain choppy based on macro concerns and potential cracks in private credit, there remained a significant bifurcation from the new issue market.

本季期間，基於信用與定價考量，我們持續放棄新的投資機會。雖然次級信貸市場因總體疑慮及私募信貸可能出現裂縫而仍顯波動，但與新發行市場之間仍存在顯著分化。

New issue cohort pricing continued to be driven by the hangover of record 2024 and 2025 private debt fundraising, which translated into lower coupon spreads, higher leverage levels and looser credit documents in the new issue market. We focused our Q1 investment activities on incremental opportunities with our portfolio companies.

新發行同業群的定價仍受2024與2025年私募債務募資創紀錄所帶來的「後遺效應」所驅動，進而在新發行市場反映為較低的票息利差、較高的槓桿水準以及較寬鬆的信貸文件條款。我們將第一季投資活動聚焦於與投資組合公司相關的增量機會。

We believe our continued investment selectivity and proportional deployment levels help us to invest in first lien loans at higher spreads when compared to the overall private and public loan markets. The weighted average yield for our new direct first lien investments for the quarter based on our investment cost was the equivalent of SOFR plus 6.1%. As we discussed in previous quarters, the majority of our annual PIK income is strategically derived from either highly structured first lien investments or where PIK income is incremental to our cash coupon.

我們認為，持續的投資審慎度與相稱的資金部署水準，有助於我們投資於相較整體私募與公開貸款市場利差更高的第一順位擔保貸款。本季我們新增的直接第一順位擔保投資，以投資成本計算的加權平均收益率相當於SOFR加6.1%。如同我們在前幾季所討論的，我們年度PIK收入的大部分是策略性地來自高度結構化的第一順位擔保投資，或是在PIK收入為現金票息之外的增量情況。

Together, these categories represented approximately 82% of our total PIK investments in Q1, up from 75% in Q4 of 2025. Over 99% of our PIK investments are in first lien assets. As a result, we believe this PIK income does not compare to restructured PIK income resulting from a deterioration in credit. Turning now to our Q1 investment and portfolio activity.

合計而言，這些類別在第一季約占我們PIK投資總額的82%，高於2025年第四季的75%。我們超過99%的PIK投資位於第一順位擔保資產。因此，我們認為此PIK收入不同於因信用惡化而重整所產生的PIK收入。接下來說明第一季的投資與投資組合活動。

Our Q1 investment activity consisted of investments in 2 new portfolio companies, Anchor QEA and Dependable Acquisition, both specialty business service providers, and incremental add-on investments and secondary purchases in existing portfolio companies, including American Clinical, Carestream Health, Coinmac, David's Bridal, HealthWay, Juice Plus, STATinMED, Stengel Hill and WorkGenius.

我們第一季的投資活動包括投資兩家新的投資組合公司Anchor QEA與Dependable Acquisition，兩者皆為專業商業服務提供者；並對既有投資組合公司進行增量加碼投資與次級市場買入，包括American Clinical、Carestream Health、Coinmac、David's Bridal、HealthWay、Juice Plus、STATinMED、Stengel Hill以及WorkGenius。

During Q1, we made a total of approximately $69 million in investment commitments across two new and nine existing portfolio companies, of which $54 million was funded. We also funded a total of $12 million of previously unfunded commitments. We had sales and repayments totaling $38 million for the quarter, which consisted of the full repayment of our first lien holdings in INW and The Men's Warehouse.

第一季期間，我們在兩家新公司與九家既有投資組合公司合計做出約6,900萬美元的投資承諾，其中5,400萬美元已撥款。我們亦撥付先前尚未撥付之承諾合計1,200萬美元。本季我們的出售與償還合計3,800萬美元，包含我們在INW與The Men's Warehouse之第一順位擔保持倉全數償還。

As a result of all of these activities, our net funded investments increased by approximately $28 million during the quarter. As Mark referenced, our NAV decrease during the quarter was driven primarily by declines in the unrealized mark-to-market value of our portfolio.

在上述各項活動影響下，本季我們的淨撥款投資增加約2,800萬美元。如Mark所提及，本季我們的每股淨值（NAV）下降主要是由投資組合未實現按市價評價下跌所致。

This was in large part driven by reductions in market multiples and resulting valuations due to macro headwinds ranging from the Iranian war and widespread market concerns regarding potential crack in private credit, most specifically the software concentrations within the private capital sector and potential AI impact to those investments.

這在很大程度上是由於總體逆風導致市場倍數下修及相應估值下降，逆風因素包括伊朗戰爭，以及市場普遍擔憂私募信貸可能出現裂縫，尤其是私募資本領域的軟體集中度，以及AI對這些投資可能造成的影響。

For the quarter, the ratio of mark-to-market declines versus mark-to-market increases for our investments was approximately 2:1. Our largest unrealized declines for the quarter were from our investments in Lux Credit, FuseFX, LAV Gear which is also known as 4Wall Entertainment, SIMR STATinMED and the common equity of David's Bridal.

就本季而言，我們投資的按市價評價下跌與上升之比約為2:1。本季我們最大的未實現下跌來自對Lux Credit、FuseFX、LAV Gear（亦稱4Wall Entertainment）、SIMR STATinMED，以及David's Bridal普通股權的投資。

Lux Credit represented our largest decline as the sale process for the company resulted in final bids well below the initial indications of interest based on the company's significant asset base and EBITDA profile. Rather than the lenders restructuring and recapitalizing the company with additional investment, the majority of lenders decided to pursue a cash sale transaction and move on rather than restructure and invest.

Lux Credit為我們跌幅最大者，因該公司出售流程的最終出價遠低於初步意向，儘管公司擁有可觀的資產基礎與EBITDA概況。與其由放款人透過追加投資來重整並重新資本化該公司，多數放款人選擇推動現金出售交易，選擇結案離場而非重整並投資。

The sale closed early in the second quarter. The mark value of our investments in FuseFX and LAV Gear were negatively impacted by reduced trailing EBITDA performance and lower multiples as the sector rebuilds event and production pipelines from the writers' strike that delayed the release queue of new scripts and production content throughout the industry.

該出售於第二季初完成交割。我們對FuseFX與LAV Gear之投資評價值受到不利影響，原因在於過去十二個月（trailing）EBITDA表現下滑，以及在該產業自編劇罷工後重建活動與製作案源管線之際，估值倍數走低；該罷工延後了全產業新劇本與製作內容的發行排程。

Through January and February of 2026, LAV Gear's performance demonstrated stronger-than-projected recovery that we expect to continue into Q2. The unrealized decline in the mark of our SIMR STATinMED term loan was driven by both the relative increase in value to priority senior tranches where CION has a larger pro rata interest and lower revenue multiples derived from quasi comparable large-cap biopharma service companies impacted by AI and software concerns.

截至2026年1月與2月，LAV Gear的表現展現出高於預期的復甦力道，我們預期此趨勢將延續至第二季。我們對SIMR STATinMED定期貸款之評價未實現下跌，係由兩項因素所致：其一，相較於優先高順位分層（CION在其中擁有更大按比例權益）的價值相對上升；其二，受AI與軟體疑慮影響、以準可比的大型生物製藥服務公司推導出的營收倍數下修。

As we have mentioned on previous quarterly calls, we expect to see significant quarter-to-quarter volatility in the marks of David's Bridal equity due to the larger overall relative size of our investment as well as the highly seasonal nature of the company's operations and working capital profile.

如同我們在先前的季度電話會議中提到的，由於我們投資相對規模較大，以及該公司營運與營運資金結構具有高度季節性，我們預期David's Bridal股權的評價在各季之間將出現顯著波動。

In the face of difficult macro market sentiment, we also had a number of portfolio companies where the marks increased for the quarter due to stronger financial performance and projected outlook, including Longview Power, Hollander, TriMark, Avison Young and Services Compression.

面對艱困的宏觀市場情緒，我們的投資組合公司中也有多家在本季因財務表現更強勁及預期展望改善而估值上調，包括 Longview Power、Hollander、TriMark、Avison Young 以及 Services Compression。

From a portfolio credit perspective, our nonaccruals decreased from 1.78% of fair value in Q4 to 1.53% at the end of Q1. On an amortized cost basis, the number increased from 4.32% of cost to 5.35%. We added one new name to nonaccrual, our term loan investment in Lux Credit Consultants. Given the sale of the company in early Q2, Lux Credit will be removed from nonaccrual next quarter.

從投資組合信用角度來看，我們的不計息資產（nonaccrual）占公允價值的比例由第四季的 1.78% 降至第一季末的 1.53%。以攤銷成本為基礎，該比例則由成本的 4.32% 上升至 5.35%。我們新增一個不計息標的，為我們對 Lux Credit Consultants 的定期貸款投資。鑑於該公司於第二季初出售，Lux Credit 將於下季自不計息名單中移除。

On an absolute basis, nonaccruals continue to be in line with historical experience, and we are pleased with the continued credit performance of our portfolio, particularly in the current macro environment. Overall, our portfolio remains defensive in nature with approximately 81% in first lien investments. Approximately 98% of our portfolio remains risk rated three or better.

以絕對金額而言，不計息資產仍與歷史經驗一致；我們對投資組合持續的信用表現感到滿意，尤其是在目前的宏觀環境下。整體而言，我們的投資組合仍偏防禦性，約 81% 為第一順位擔保（first lien）投資。約 98% 的投資組合風險評等為 3 或更佳。

Our risk rated three investments, which are investments where we expect full repayment but are either spending more engagement time and/or have seen increased risk, the initial asset purchase increased from approximately 11.5% in Q4 to 12.9% in Q1.

我們風險評等為 3 的投資（即我們預期可全額償還，但需要投入更多管理/互動時間且/或風險上升者），其占初始資產購買的比例由第四季約 11.5% 上升至第一季的 12.9%。

I'll now turn the call over to Keith.

接下來我把電話會議交給 Keith。

Okay. Thank you, Gregg, and good morning, everyone. During the first quarter, net investment income was $12.9 million or $0.25 per share compared to $18.3 million or $0.35 per share reported in the fourth quarter. Total investment income was $49.5 million during the first quarter compared to $53.8 million reported during the fourth quarter.

好的。謝謝你，Gregg，各位早安。第一季淨投資收益為 1,290 萬美元，或每股 0.25 美元，相較於第四季的 1,830 萬美元或每股 0.35 美元。第一季總投資收益為 4,950 萬美元，相較於第四季的 5,380 萬美元。

The decrease in total investment income was driven primarily by lower transaction fees recorded during the first quarter due to lower prepayment and investment activity and lower dividend income earned on our investments when compared to the prior quarter.

總投資收益下降主要是因第一季因提前償還與投資活動較少而認列的交易費用較低，且相較前一季，我們投資所取得的股利收入較少。

On the expense side, total operating expenses were $36.7 million compared to $35.5 million reported in the fourth quarter. The increase in operating expenses was primarily driven by higher interest expense due to an increase in the average debt balance outstanding and a higher weighted average cost of our debt capital during the quarter.

在費用方面，總營運費用為 3,670 萬美元，相較於第四季的 3,550 萬美元。營運費用增加主要是因本季平均未償債務餘額上升，以及我們債務資金的加權平均成本提高，導致利息費用增加。

These increases were driven as a direct result of refinancing our lower-yielding fixed rate notes and the repayment of a portion of our lower-yielding senior secured debt using the proceeds from our newly issued higher-yielding fixed rate baby bonds. The increase in our operating expenses was partially offset by lower advisory fees earned due to lower investment income recorded during the quarter.

這些增加直接源於我們對較低殖利率的固定利率票據進行再融資，並以新發行、較高殖利率的固定利率小額債券（baby bonds）募集資金所得，償還部分較低殖利率的優先擔保債務。本季因投資收益較低而使顧問費收入下降，部分抵銷了營運費用的增加。

At March 31, we had total assets of approximately $1.8 billion and total equity or net assets of $660 million with total debt outstanding of $1.2 billion and 50.3 million shares outstanding. Our portfolio at fair value ended the quarter at $1.7 billion, and the weighted average yield on our debt and other income-producing investments at amortized cost was 10.4%, which is slightly down from 10.7% in the fourth quarter.

截至 3 月 31 日，我們總資產約 18 億美元，總權益或淨資產為 6.6 億美元；未償總債務為 12 億美元，流通在外股數為 5,030 萬股。以公允價值計，我們的投資組合季末為 17 億美元；以攤銷成本計，我們的債務及其他收益型投資的加權平均收益率為 10.4%，較第四季的 10.7% 略降。

At March 31, our NAV was $13.11 per share as compared to $13.76 per share at the end of December. The decrease of $0.65 per share or 4.7% was primarily due to unrealized mark-to-market price decreases in our portfolio and underearning our distributions during the first quarter. The decrease in NAV was partially offset by the accretive nature of our share repurchase program during the quarter.

截至 3 月 31 日，我們每股淨資產價值（NAV）為 13.11 美元，相較於 12 月底的每股 13.76 美元。每股下降 0.65 美元或 4.7%，主要是因投資組合未實現按市價評價下跌，以及第一季配息未能由收益完全覆蓋。本季股份回購計畫具增厚效果（accretive），部分抵銷了 NAV 的下降。

We ended the first quarter with a strong and flexible balance sheet with about $1.3 billion in unencumbered assets, a strong debt servicing capacity with an interest coverage ratio of about 2 times and solid liquidity. We had over $100 million in cash and short-term investments and another $100 million available under our credit facilities. In terms of our debt capital, at March 31, we continue to have a healthy debt mix with about 75% in unsecured and 25% in senior secured bank debt.

第一季末我們的資產負債表強健且具彈性，約有 13 億美元未設擔保（unencumbered）資產；償債能力強，利息保障倍數約 2 倍，且流動性充裕。我們持有逾 1 億美元的現金與短期投資，另有 1 億美元可透過授信額度動用。就債務資本而言，截至 3 月 31 日，我們仍維持健康的債務組合，約 75% 為無擔保債務，25% 為優先擔保銀行債務。

About 60% of our debt capital is in floating rate, which aligns well and creates a natural hedge with our mostly floating rate investment portfolio. Our well-diversified debt structure is focused on unsecured debt in order to maximize our balance sheet flexibility and at the same time, creates a strong buffer for our financial covenants. At the end of the quarter, our net debt-to-equity ratio increased to 1.62 times from 1.44 times at the end of December.

約 60% 的債務資本為浮動利率，與我們以浮動利率為主的投資組合相當契合，並形成自然避險。我們多元化的債務結構以無擔保債務為核心，以最大化資產負債表彈性，同時也為財務契約提供強力緩衝。季末，我們的淨負債對權益比由 12 月底的 1.44 倍上升至 1.62 倍。

And the weighted average cost of our debt capital was about 7.52%, which is slightly up from the fourth quarter. The increase in our weighted average cost of debt capital was directly due to refinancing our lower-yielding unsecured fixed rate debt and increasing our higher-yielding unsecured debt mix during the quarter. The increase in our net leverage ratio was primarily impacted by the quarterly decrease in our NAV and an increase in the average debt outstanding during the quarter.

我們債務資本的加權平均成本約為 7.52%，較第四季略升。加權平均債務資本成本上升，直接原因是我們對較低殖利率的無擔保固定利率債務進行再融資，並在本季提高較高殖利率無擔保債務的占比。淨槓桿比率上升主要受本季 NAV 下降以及本季平均未償債務增加所影響。

During the quarter, total debt increased by $35 million due to the timing of paying down a portion of our senior secured debt with a portion of the net proceeds raised from the new unsecured baby bond offering completed in February.

本季總債務增加 3,500 萬美元，係因以 2 月完成之新無擔保小額債券發行所募集的部分淨收益，償還部分優先擔保債務的時點所致。

During the quarter, on February 9, we completed a public baby bond offering, issuing $135 million of new senior unsecured notes with a fixed interest rate of 7.5% due 2031, which listed and commenced trading on the New York Stock Exchange under the ticker symbol CICC on February 12. A portion of the net proceeds from this offering was used to repay $100 million under our JPMorgan credit facility at the end of March.

本季於 2 月 9 日，我們完成一項公開小額債券發行，發行 1.35 億美元新的優先無擔保票據，固定利率 7.5%，2031 年到期，並於 2 月 12 日以代號 CICC 在紐約證券交易所掛牌並開始交易。本次發行的部分淨收益於 3 月底用於償還我們在摩根大通（JPMorgan）授信額度下的 1 億美元借款。

We expect to use the remaining proceeds from this offering, along with proceeds from recent and expected repayment and sales activities to further reduce our leverage level over the next few quarters. In addition, we will also consider rightsizing our leverage levels when we refinance our near-term maturity wall. In terms of our 2026 debt maturities, we continue to work with our banking partners and debt investors on refinancing our 2026 maturities over the next few months. Now turning to distributions.

我們預期將運用本次發行剩餘收益，並搭配近期及預期的償還與出售活動所得，在未來幾季進一步降低槓桿水準。此外，在我們為近期到期的債務高峰進行再融資時，也將考量調整至適當的槓桿水準。就 2026 年到期債務而言，我們持續與銀行夥伴及債務投資人合作，於未來數月內推進 2026 年到期債務的再融資。接下來談配息。

As previously announced, we changed the timing of paying base distributions to our shareholders from quarterly to monthly beginning in January 2026 to better align with our shareholder expectations. During the first quarter, we paid monthly base distributions to our shareholders totaling $0.30 per share. We also declared our second quarter monthly base distributions totaling $0.30 per share, which were paid or will be paid at $0.10 per share per month for each of April, May and June.

如先前公告，自 2026 年 1 月起，我們將向股東支付基本配息的時間由按季改為按月，以更貼近股東的期待。第一季我們向股東支付的每月基本配息合計為每股 0.30 美元。我們亦宣告第二季每月基本配息合計每股 0.30 美元，已支付或將以每月每股 0.10 美元的方式，分別於 4 月、5 月與 6 月支付。

As a result, the trailing 12-month distribution yield through the first quarter based on the average NAV was about 9.8% and the trailing 12-month distribution yield based on the quarter end market price was 20.2%. As announced this morning, we declared our third quarter base distributions totaling $0.30 per share, which is the same as the second quarter. The third quarter base distributions will be paid monthly in July, August and September at $0.10 per share per month.

因此，以平均每股淨值（NAV）計算，截至第一季的過去12個月配息殖利率約為9.8%，而以季末市價計算的過去12個月配息殖利率為20.2%。如同今早宣布的，我們宣告第三季基本配息合計每股0.30美元，與第二季相同。第三季基本配息將於7月、8月與9月按月支付，每月每股0.10美元。

Okay, with that, I will now turn the call back to the operator, who will open the line for questions.

好的，接下來我把電話交回給接線員，由他開放提問。

(Operator Instructions)

（接線員指示）

Eric Zwick, Lucid Capital Markets.

Eric Zwick，Lucid Capital Markets。

Thank you. Good morning, all. I wanted to start with a question on your commentary about kind of gradually reducing leverage. Wondering if you could potentially provide just maybe a little kind of quantitative thoughts there in terms of where is your target to get there? And potentially, what is the time frame to achieve that target?

謝謝。各位早安。我想先從你們提到逐步降低槓桿的評論開始提問。想請問你們是否可以提供一些量化的想法，例如你們的目標水準大概在哪裡？以及達成該目標的時間表可能是多久？

Yes, good morning, Erik. It's Keith. Yes, we're focused on getting those and driving those leverage levels down over the course of the remaining few quarters. We've got a few tranches that are in the queue to be repaid or matures this year. So we're going to take the advantage -- take advantage of either a combination of both rightsizing leverage through refinancing and/or using sales and repayments to reduce and drive down the leverage levels.

是的，早安，Erik。我是Keith。是的，我們專注於在接下來幾個季度把槓桿水準往下拉。我們有幾個分段（tranches）今年排程要償還或到期。因此我們會把握機會——透過再融資來適度調整槓桿，及／或運用資產出售與回收款項來降低並推動槓桿水準下行。

But no specific kind of quantitative target at this point. Just in terms of where you'd like the debt to equity ratio to kind of where you feel comfortable having that today?

但目前沒有特定的量化目標。只是就你們希望的負債對股權比率而言，今天你們覺得舒適的水準大概在哪裡？

Yeah, for sure. With the majority of our debt capital and unsecured, I think our leverage range is around 1.30, 1.35. Obviously, we're way above that. So it's going to take some time and some wood to chop to get us back there.

是的，當然。由於我們大部分的債務資金是無擔保的，我認為我們的槓桿區間大約在1.30到1.35。顯然我們目前遠高於那個水準。所以要回到那裡需要一些時間，也還有不少工作要做。

But just looking at how our portfolio churns each and every year, at least 25% that generates an enormous amount of capital. So we intend to use that and other levers to drive the leverage levels down over the next couple of quarters.

但從我們投資組合每年周轉的情況來看，至少有25%會周轉，這會產生大量資金。因此我們打算運用這些資金以及其他槓桿手段，在接下來幾個季度把槓桿水準降下來。

That's helpful, Keith. And then just curious with regard to Lux Credit Consultants and the sale there. Was the final sales price consistent with the 3/31 fair value mark?

這很有幫助，Keith。另外想請教關於Lux Credit Consultants以及那筆出售交易。最終成交價格是否與3/31的公允價值評價一致？

Yes.

是的。

Okay. Okay. So no, nothing shouldn't be any additional kind of, I think, put in there. Okay. Great. And then one kind of -- just curious about the -- you had a strong quarter of originations in 1Q. How is the pipeline looking at this point? And what are you seeing in terms of spreads and how that compares to the existing portfolio yield?

好的。好的。所以不會有任何額外的——我想——需要計入的項目。好的。很好。另外我也想問一下——你們在第一季放款／承作（originations）表現很強。目前的案源（pipeline）看起來如何？以及你們看到的利差（spreads）如何，與現有投資組合的收益率相比又是怎樣？

So Erik, we ended the quarter -- the quarter was [S6 10] profile of our new investments. I would say we're being very careful. There is definitely a disconnect between the new issue market and the secondary and public markets for direct. I think there's still a cohort of a lot of fundraising that happened over the last 18 months where they're specifically targeted to the new issue cohort.

Erik，我們在季末——本季的新投資概況是[S6 10]。我會說我們非常謹慎。新發行市場與次級市場以及公開市場（就直接貸款而言）之間確實存在落差。我認為過去18個月有大量募資完成，仍有一批資金是專門鎖定新發行那一群標的。

So I would say we're still trying to maintain our S6 target. So we're being incredibly choosy because we see better opportunities candidly in the secondary markets in the portfolio and to buy back our stock compared to seeing spreads still relatively tight in new issue specifically.

所以我會說我們仍在努力維持我們的S6目標。因此我們非常挑剔，因為坦白說，相較於新發行利差仍相對偏緊，我們在投資組合的次級市場以及回購自家股票方面看到更好的機會。

Thanks, Greg. And how does the pipeline look in terms of opportunities? Is the kind of global and macroeconomic uncertainty impacting things at all? Or are you still seeing quite a few attractive opportunities to invest in?

謝謝，Greg。那就機會而言，案源看起來如何？全球與總體經濟的不確定性是否有任何影響？或者你們仍看到不少具吸引力的投資機會？

No, we're still seeing attractive opportunities. But proportionately for us, I think it's -- we don't have to do a massive amount of deals to proportionately deploy money. But I will say that the environment has definitely affected M&A. We are seeing reduced M&A activity because of macro as well as where interest rates are. So -- but with our proportional deployments, we're still seeing a pretty rich opportunity set.

沒有，我們仍看到具吸引力的機會。但就我們而言，按比例來看——我們不需要做非常大量的交易就能按比例部署資金。不過我會說，這個環境確實影響了併購（M&A）。由於總體因素以及利率水準，我們看到併購活動減少。所以——但以我們的部署規模來看，我們仍看到相當豐富的機會集合。

It's just a question of picking the best ones.

只是要挑選出最好的。

Got it. And the last one for me, I appreciate the commentary about David's Bridal and the seasonality there. One, I guess, could you just remind me, I think typically the second and third quarters are the strongest for them giving the traditional wedding season, but also curious if you could provide an update on the, I believe it's the Pearl, is that the online initiative that has been introduced over the past year or so and how that's progressing?

了解。最後一題，感謝你們對David's Bridal及其季節性的說明。第一，我想請你再提醒我一下，我記得通常第二季和第三季是他們最強的季度，因為傳統婚禮旺季；另外也想請你更新一下我相信叫做Pearl的項目——那是過去一年左右推出的線上計畫嗎？以及目前進展如何？

Sure. So you're exactly right. Q2 and Q3 are the seasonally strongest quarters for David's Bridal. And the Pearl Marketplace segment is ramping -- is accelerating. So we've been very pleased with the ramp in that particular part of the business. And strategically, that is the focus for Bridal today as we move more and more of our business to digital. And so that's been a good growth part of the business.

當然。你說得完全正確。第二季與第三季是David's Bridal季節性最強的季度。而Pearl Marketplace業務線正在加速成長。因此我們對該業務部分的成長速度感到非常滿意。在策略上，隨著我們把越來越多業務轉向數位化，這正是Bridal目前的重點。因此那一直是業務中成長良好的部分。

Appreciate the application. Thanks for taking my questions.

感謝說明。謝謝回答我的問題。

Thank you. And this concludes our Q&A session. I'll now turn the call back to management for final comments.

謝謝。以上為我們的問答環節。我現在把電話交回給管理層作最後評論。

I wanted to thank everybody for joining us today. We appreciate your support and interest in our CION Investment Corp., and we look forward to speaking to you next quarter.

我想感謝各位今天加入我們。感謝大家對CION Investment Corp.的支持與關注，我們期待在下個季度再與各位交流。

Thank you. And this concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.

謝謝。今天的電話會議到此結束，您現在可以掛線。感謝各位的參與。