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EX-32.1 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, - CION Investment Corpcionex-321.htm
EX-32.3 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS - CION Investment Corpcionex-323.htm
EX-32.2 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, - CION Investment Corpcionex-322.htm
EX-31.3 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES - CION Investment Corpcionex-313.htm
EX-31.2 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBA - CION Investment Corpcionex-312.htm
EX-31.1 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBA - CION Investment Corpcionex-311.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q 

[x]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2017
OR
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number 000-54755 
 
CĪON Investment Corporation
 
 
(Exact name of registrant as specified in its charter)
 
 
Maryland
 
45-3058280
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
3 Park Avenue, 36th Floor
New York, New York
 
10016
(Address of principal executive offices)
 
(Zip Code)
 
(212) 418-4700
 
 
(Registrant’s telephone number, including area code)
 
 
 
 
 
Not applicable
 
 
(Former name, former address and former fiscal year, if changed since last report)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                                      
Yes [x] No [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [ ] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer [ ]
Accelerated filer [ ]
 
Non-accelerated filer [x] (Do not check if a smaller reporting company)
Smaller reporting company [ ]
 
 
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.
[ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  
Yes [ ] No [x]
The number of shares of the registrant’s common stock, $0.001 par value, outstanding as of May 10, 2017 was 111,249,220.




CĪON INVESTMENT CORPORATION
FORM 10-Q
TABLE OF CONTENTS
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
CĪON Investment Corporation
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
 
 
March 31,
2017
 
December 31,
2016
 
 
(unaudited)
 
 
Assets
Investments, at fair value (amortized cost of $1,468,258 and $1,096,948, respectively)
 
$
1,457,788

 
$
1,089,478

Derivative asset (cost of $229)
 


46

Cash
 
23,185

 
15,046

Restricted cash
 
2,000

 
2,000

Due from counterparty(1)
 
20,081

 
143,335

Interest receivable on investments
 
5,300

 
6,689

Receivable due on investments sold
 
2,112

 

Unrealized appreciation on total return swap(1)
 
134



Receivable due on total return swap(1)
 

 
4,187

Prepaid expenses and other assets
 
105

 
282

   Total assets
 
$
1,510,705

 
$
1,261,063

Liabilities and Shareholders' Equity
Liabilities
 
 
 
 
Payable for investments purchased
 
$
27,760

 
$
15,837

Credit facilities payable (net of unamortized debt issuance costs of $4,805 and $3,212, respectively)
 
451,316


221,211

Accounts payable and accrued expenses
 
1,086

 
1,476

Interest payable
 
973


864

Commissions payable for common stock purchased
 

 
2

Accrued management fees
 
6,482

 
5,781

Accrued administrative services expense
 
346

 
682

Due to CIG - offering costs
 
45

 
45

Payable on total return swap(1)
 
12,687



Unrealized depreciation on total return swap(1)
 

 
15,402

Total liabilities
 
500,695

 
261,300

 
 
 
 
 
Commitments and contingencies (Note 4 and Note 11)
 
 
 
 
 
 
 
 
 
Shareholders' Equity
 
 
 
 
Common stock, $0.001 par value; 500,000,000 shares authorized;
 
 
 
 
111,370,686 and 109,787,557 shares issued and outstanding, respectively
 
111

 
110

Capital in excess of par value
 
1,035,770

 
1,021,280

Undistributed net investment income
 
2,684

 
1,428

Accumulated net unrealized depreciation on investments
 
(10,470
)
 
(7,653
)
Accumulated net realized loss from total return swap(1)
 
(18,219
)
 

Accumulated net unrealized appreciation (depreciation) on total return swap(1)
 
134

 
(15,402
)
Total shareholders' equity
 
1,010,010

 
999,763

Total liabilities and shareholders' equity
 
$
1,510,705

 
$
1,261,063

Net asset value per share of common stock at end of period
 
$
9.07

 
$
9.11

(1) See Note 7 for a discussion of the Company’s total return swap agreement.
See accompanying notes to consolidated financial statements.

1



CĪON Investment Corporation
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
 
 
Three Months Ended
March 31,
 
 
2017

2016
 
 
(unaudited)
 
(unaudited)
Investment income
 
 
 
 
Interest income
 
$
27,498

 
$
17,079

Fee and other income
 
547

 
192

Total investment income
 
28,045

 
17,271

Operating expenses
 
 
 
 
Management fees
 
6,482

 
4,512

Administrative services expense
 
346

 
292

General and administrative(1)
 
1,746

 
1,753

Interest expense
 
2,926

 
120

Total operating expenses
 
11,500

 
6,677

Recoupment of expense support from CIG(2)
 

 
119

Net operating expenses
 
11,500

 
6,796

Net investment income
 
16,545

 
10,475

Realized and unrealized gains (losses)
 
 
 
 
Net realized gain (loss) on investments
 
740

 
(8
)
Net realized gain on foreign currency
 
144



Net change in unrealized depreciation on investments
 
(2,817
)
 
(12,605
)
Net realized (loss) gain on total return swap(3)
 
(14,269
)
 
8,362

Net change in unrealized appreciation (depreciation) on total return swap(3)
 
15,536

 
(1,608
)
Total net realized and unrealized losses
 
(666
)
 
(5,859
)
Net increase in net assets resulting from operations
 
$
15,879

 
$
4,616

Per share information—basic and diluted
 
 
 
 
Net increase in net assets per share resulting from operations
 
$
0.14

 
$
0.04

Weighted average shares of common stock outstanding
 
110,083,778

 
103,957,573

(1)  See Note 10 for details of the Company's general and administrative expenses.
(2)  See Note 4 for a discussion of expense support from CIG and recoupment of expense support.
(3)  See Note 7 for a discussion of the Company's total return swap agreement.
See accompanying notes to consolidated financial statements.


2



CĪON Investment Corporation
Consolidated Statements of Changes in Net Assets
(in thousands, except share and per share amounts)
 
 
Three Months Ended
March 31,
 
 
2017
 
2016
 
 
(unaudited)
 
(unaudited)
Changes in net assets from operations:
 
 
 
 
Net investment income
 
$
16,545

 
$
10,475

Net realized gain (loss) on investments
 
740

 
(8
)
Net realized gain on foreign currency
 
144

 

Net change in unrealized depreciation on investments
 
(2,817
)
 
(12,605
)
Net realized (loss) gain on total return swap(1)
 
(14,269
)
 
8,362

Net change in unrealized appreciation (depreciation) on total return swap(1)
 
15,536

 
(1,608
)
Net increase in net assets resulting from operations
 
15,879

 
4,616

Changes in net assets from shareholders' distributions:(2)
 
 
 
 
Net investment income
 
(15,289
)
 
(10,475
)
Net realized gain on total return swap
 
 
 
 
Net interest and other income from TRS portfolio
 
(3,316
)
 
(8,193
)
Net gain on TRS loan sales(4)
 
(634
)
 
(169
)
Net realized gain on investments and foreign currency
 
(884
)
 

Distributions in excess of net investment income(3)
 

 
(167
)
Net decrease in net assets from shareholders' distributions
 
(20,123
)
 
(19,004
)
Changes in net assets from capital share transactions:
 
 
 
 
Issuance of common stock, net of issuance costs of $448 and $50, respectively
 
11,935

 
424

Reinvestment of shareholders' distributions
 
9,926

 
9,683

Repurchase of common stock
 
(7,370
)
 
(2,437
)
Net increase in net assets resulting from capital share transactions
 
14,491

 
7,670

 
 
 
 
 
Total increase (decrease) in net assets
 
10,247

 
(6,718
)
Net assets at beginning of period
 
999,763

 
904,326

Net assets at end of period
 
$
1,010,010

 
$
897,608

Net asset value per share of common stock at end of period
 
$
9.07

 
$
8.57

Shares of common stock outstanding at end of period
 
111,370,686

 
104,723,030

Undistributed (distributions in excess of) net investment income at end of period(3)
 
$
2,684

 
$
(167
)
(1)
See Note 7 for a discussion of the Company’s total return swap agreement.
(2)
This table presents changes in net assets from shareholders' distributions on a GAAP basis. See Note 5 for a discussion of the sources of distributions paid by the Company.
(3)
Distributions in excess of net investment income represent certain expenses, which are not deductible on a tax-basis.  Unearned capital gains incentive fees and certain offering expenses reduce GAAP basis net investment income, but do not reduce tax basis net investment income. These tax-related adjustments represent additional net investment income available for distribution for tax purposes.
(4)
During the three months ended March 31, 2017, the Company realized losses of $21,146, which are not currently deductible on a tax-basis. 
See accompanying notes to consolidated financial statements.


3



CĪON Investment Corporation
Consolidated Statements of Cash Flows
(in thousands)
 
 
Three Months Ended
March 31,
 
 
2017

2016
 
 
(unaudited)
 
(unaudited)
Operating activities:
 
 
 
 
Net increase in net assets resulting from operations
 
$
15,879

 
$
4,616

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in
 
 
 
 
  operating activities:
 
 
 
 
Net accretion of discount on investments
 
(1,817
)
 
(409
)
Proceeds from principal repayment of investments
 
109,443

 
10,749

Purchase of investments
 
(508,339
)
 
(37,007
)
Paid-in-kind interest
 
(729
)
 
(17
)
Decrease in short term investments, net
 
198

 
369

Proceeds from sale of investments
 
30,903

 
10,920

Net realized (gain) loss on investments
 
(740
)
 
8

Net unrealized depreciation on investments
 
2,817

 
12,605

Net unrealized (appreciation) depreciation on total return swap(1)
 
(15,536
)
 
1,608

Amortization of deferred financing costs
 
273

 
69

(Increase) decrease in due from counterparty(1)
 
123,254

 
(5,515
)
(Increase) decrease in interest receivable on investments
 
1,389

 
1,014

(Increase) decrease in receivable due on investments sold
 
(2,112
)
 
(7,465
)
(Increase) decrease in receivable due on total return swap(1)
 
16,874

 
(534
)
(Increase) decrease in prepaid expenses and other assets
 
127

 
(106
)
Increase (decrease) in payable for investments purchased
 
11,923

 
(4,870
)
Increase (decrease) in accounts payable and accrued expenses
 
(395
)
 
216

Increase (decrease) in interest payable
 
109

 

Increase (decrease) in accrued management fees
 
701

 
82

Increase (decrease) in accrued administrative services expense
 
(336
)
 
(325
)
Increase (decrease) in accrued recoupment of expense support from CIG(2)
 

 
(361
)
Increase (decrease) in due to CIG - offering, organizational and other costs
 

 
(20
)
Net cash used in operating activities
 
(216,114
)
 
(14,373
)
Financing activities:
 
 
 
 
Gross proceeds from issuance of common stock
 
12,383

 
5,933

Commissions and dealer manager fees paid
 
(450
)
 
(517
)
Repurchase of common stock
 
(7,370
)
 
(2,437
)
Shareholders' distributions paid(3)
 
(10,197
)
 
(9,321
)
Borrowings under revolving credit facilities(4)
 
231,698

 

Deferred financing costs paid
 
(1,811
)
 
(150
)
Net cash provided by (used in) financing activities
 
224,253

 
(6,492
)
Net increase (decrease) in cash and restricted cash
 
8,139

 
(20,865
)
Cash and restricted cash, beginning of period
 
17,046

 
39,741

Cash and restricted cash, end of period
 
$
25,185

 
$
18,876

Supplemental disclosure of cash flow information:
 
 
 
 
Cash paid for interest
 
$
2,540

 
$
50

Supplemental non-cash financing activities:
 
 
 
 
Reinvestment of shareholders' distributions(3)
 
$
9,926

 
$
9,683

(1)
See Note 7 for a discussion of the Company’s total return swap agreement.
(2)
See Note 4 for a discussion of expense support from CIG and recoupment of expense support.
(3)
See Note 5 for a discussion of the sources of distributions paid by the Company.
(4)
See Note 8 for a discussion of the Company’s credit facilities.
See accompanying notes to consolidated financial statements.

4



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2017
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(d)
 
Cost(r)
 
Fair
Value(c)
Senior Secured First Lien Debt - 85.8%
 
 
 
 
 
 
 
 
 
 
AbelConn, LLC / Atrenne Computing Solutions, LLC / Airco Industries, LLC, L+875, 1.00% LIBOR Floor, 7/17/2019(j)(n)
 
3 Month LIBOR
 
Aerospace & Defense
 
$
21,895

 
$
21,530

 
$
21,840

Academy, Ltd., L+400, 1.00% LIBOR Floor, 7/1/2022(o)
 
Various
 
Retail
 
14,730

 
11,537

 
10,947

Access CIG, LLC, L+500, 1.00% LIBOR Floor, 10/18/2021(o)
 
3 Month LIBOR
 
Services: Business
 
6,781

 
6,828

 
6,815

Adams Publishing Group, LLC, L+700, 1.00% LIBOR Floor, 11/3/2020(n)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
3,704

 
3,638

 
3,649

ALM Media, LLC, L+450, 1.00% LIBOR Floor, 7/31/2020(o)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
7,683

 
7,328

 
7,337

Alvogen Pharma US, Inc., L+500, 1.00% LIBOR Floor, 4/1/2022(o)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
9,304

 
9,258

 
9,298

American Clinical Solutions LLC, L+950, 1.00% LIBOR Floor, 6/11/2020
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
9,034

 
8,918

 
8,492

American Dental Partners, Inc., L+475, 1.00% LIBOR Floor, 8/29/2021(o)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
10,694

 
10,214

 
10,213

American Energy - Marcellus, LLC, L+425, 1.00% LIBOR Floor, 8/4/2020
 
3 Month LIBOR
 
Energy: Oil & Gas
 
4,270

 
2,970

 
2,968

American Media, Inc., L+750, 1.00% LIBOR Floor, 8/24/2020(i)(n)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
16,237

 
15,862

 
15,953

American Media, Inc., 0.50% Unfunded, 8/24/2020
 
None
 
Media: Advertising, Printing & Publishing
 
801

 
(24
)
 
(14
)
American Media, Inc., 7.50%, 8/24/2020
 
None
 
Media: Advertising, Printing & Publishing
 
206

 
(6
)
 
(4
)
American Residential Services, LLC, L+400, 1.00% LIBOR Floor, 6/30/2022(o)
 
1 Month LIBOR
 
Construction & Building
 
14,102

 
14,137

 
14,137

American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021(n)
 
1 Month LIBOR
 
Telecommunications
 
18,997

 
17,310

 
19,009

AMPORTS, Inc., L+500, 1.00% LIBOR Floor, 5/19/2020(j)
 
3 Month LIBOR
 
Automotive
 
19,100

 
18,767

 
18,670

Aquilex, LLC, L+400, 1.00% LIBOR Floor, 12/31/2020(o)
 
1 Month LIBOR
 
Chemicals, Plastics & Rubber
 
1,813

 
1,758

 
1,767

Arctic Glacier Group Holdings, Inc., L+425, 1.00% LIBOR Floor, 3/20/2024(o)
 
1 Month LIBOR
 
Beverage, Food & Tobacco
 
1,216

 
1,228

 
1,231

Associated Asphalt Partners, LLC, L+525, 1.00% LIBOR Floor, 4/5/2024(i)(o)
 
1 Month LIBOR
 
Construction & Building
 
2,946

 
2,931

 
2,964

Avaya Inc., L+525, 1.00% LIBOR Floor, 5/29/2020(o)
 
3 Month LIBOR
 
Telecommunications
 
14,689

 
11,531

 
11,770

Avaya Inc., L+750, 1.00% LIBOR Floor, 1/24/2018
 
1 Month LIBOR
 
Telecommunications
 
3,509

 
3,479

 
3,614

Azure Midstream Energy, LLC, L+650, 1.00% LIBOR Floor, 11/15/2018(o)
 
1 Month LIBOR
 
Energy: Oil & Gas
 
2,188

 
2,088

 
2,086

Blue Ribbon, LLC, L+400, 1.00% LIBOR Floor, 11/15/2021
 
3 Month LIBOR
 
Beverage, Food & Tobacco
 
9,950

 
9,950

 
9,353

California Pizza Kitchen, Inc., L+600, 1.00% LIBOR Floor, 8/23/2022(i)
 
1 Month LIBOR
 
Beverage, Food & Tobacco
 
5,000

 
5,013

 
5,000

Caraustar Industries, Inc., L+550, 1.00% LIBOR Floor, 3/14/2022(o)
 
3 Month LIBOR
 
Forest Products & Paper
 
5,620

 
5,690

 
5,679

Central Security Group, Inc., L+563, 1.00% LIBOR Floor, 10/6/2020(o)
 
1 Month LIBOR
 
Services: Consumer
 
13,024

 
13,089

 
13,057

CF Entertainment Inc., L+850, 1.00% LIBOR Floor, 1/27/2023(n)
 
3 Month LIBOR
 
Media: Diversified & Production
 
50,000

 
49,067

 
49,000

CF Entertainment Inc., 2.00% Unfunded, 1/28/2019
 
None
 
Media: Diversified & Production
 
10,000

 
(243
)
 
(200
)
Charming Charlie, LLC, L+800, 1.00% LIBOR Floor, 12/24/2019
 
3 Month LIBOR
 
Retail
 
7,772

 
3,992

 
3,964

Cozzini Bros., Inc., L+550, 1.00% LIBOR Floor, 3/10/2023
 
2 Month LIBOR
 
Services: Business
 
3,000

 
2,941

 
2,940

CSP Technologies North America, LLC, L+525, 1.00% LIBOR Floor, 1/29/2022
 
1 Month LIBOR
 
Chemicals, Plastics & Rubber
 
13,623

 
13,351

 
13,657

CT Technologies Intermediate Holdings, Inc., L+425, 1.00% LIBOR Floor, 12/1/2021
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
14,713

 
13,981

 
13,941

David's Bridal, Inc., L+400, 1.25% LIBOR Floor, 10/11/2019(o)
 
3 Month LIBOR
 
Retail
 
3,477

 
2,888

 
2,878

DBRS, Inc., L+525, 1.00% LIBOR Floor, 3/4/2022(h)(o)
 
3 Month LIBOR
 
Services: Business
 
12,971

 
12,496

 
12,517

DFS Holding Company, Inc., L+550, 1.00% LIBOR Floor, 2/17/2022
 
3 Month LIBOR
 
Capital Equipment
 
3,307

 
3,266

 
3,265

See accompanying notes to consolidated financial statements.

5



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2017
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(d)
 
Cost(r)
 
Fair
Value(c)
Dodge Data & Analytics, LLC / Skyline Data News and Analytics, LLC, L+875, 1.00% LIBOR Floor, 10/31/2019(n)
 
3 Month LIBOR
 
Construction & Building
 
10,162

 
10,034

 
9,997

Dorner Holding Corp., L+575, 1.00% LIBOR Floor, 3/15/2023
 
3 Month LIBOR
 
Capital Equipment
 
1,118

 
1,090

 
1,090

ECI Acquisition Holdings, Inc., L+625, 1.00% LIBOR Floor, 3/11/2019(n)
 
3 Month LIBOR
 
High Tech Industries
 
8,495

 
8,474

 
8,495

EIG Investors Corp., L+548, 1.00% LIBOR Floor, 11/9/2019(h)(o)
 
3 Month LIBOR
 
Services: Business
 
1,763

 
1,775

 
1,774

Elemica, Inc., L+800, 1.00% LIBOR Floor, 7/7/2021(n)
 
1 Month LIBOR
 
High Tech Industries
 
17,369

 
16,978

 
17,021

Elemica, Inc., 0.50% Unfunded, 7/7/2021
 
None
 
High Tech Industries
 
2,500

 
(54
)
 
(50
)
Emmis Operating Company, L+600, 1.00% LIBOR Floor, 6/10/2021(o)
 
3 Month LIBOR
 
Media: Broadcasting & Subscription
 
7,328

 
6,907

 
6,925

EnTrans International, LLC, L+750, 1.00% LIBOR Floor, 6/4/2020
 
3 Month LIBOR
 
Capital Equipment
 
13,594

 
10,167

 
10,161

Evergreen Skills Lux S.À.R.L., L+475, 1.00% LIBOR Floor, 4/28/2021(h)(o)
 
1 Month LIBOR
 
High Tech Industries
 
7,331

 
6,747

 
6,772

F+W Media, Inc., L+950, 1.25% LIBOR Floor, 6/30/2019(n)(q)
 
3 Month LIBOR
 
Media: Diversified & Production
 
7,280

 
7,104

 
2,807

Forbes Media LLC, L+675, 1.00% LIBOR Floor, 9/12/2019(j)
 
1 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
15,000

 
14,652

 
14,588

Global Cash Access, Inc., L+525, 1.00% LIBOR Floor, 12/18/2020(o)
 
3 Month LIBOR
 
Hotel, Gaming & Leisure
 
10,562

 
10,641

 
10,661

Harland Clarke Holdings Corp., L+550, 1.00% LIBOR Floor, 2/9/2022(o)
 
2 Month LIBOR
 
Services: Business
 
14,912

 
15,035

 
15,051

Healogics, Inc., L+425, 1.00% LIBOR Floor, 7/1/2021(o)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
4,887

 
4,574

 
4,557

Ignite Restaurant Group, Inc., L+700, 1.00% LIBOR Floor, 2/13/2019(n)
 
3 Month LIBOR
 
Beverage, Food & Tobacco
 
10,482

 
10,408

 
6,813

Infinity Sales Group, LLC, L+1050, 1.00% LIBOR Floor, 11/21/2018(n)
 
1 Month LIBOR
 
Services: Business
 
8,118

 
7,536

 
7,347

Infogroup Inc., L+550, 1.50% LIBOR Floor, 5/26/2018(n)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
15,537

 
15,287

 
15,517

Intertain Group Ltd., L+650, 1.00% LIBOR Floor, 4/8/2022(h)(n)
 
1 Month LIBOR
 
Hotel, Gaming & Leisure
 
1,713

 
1,686

 
1,730

Ipsen International GmbH, L+800, 1.00% LIBOR Floor, 9/30/2019(h)(j)
 
1 Month LIBOR
 
Capital Equipment
 
1,380

 
1,386

 
1,387

Ipsen, Inc., L+700, 1.00% LIBOR Floor, 9/30/2019(j)
 
1 Month LIBOR
 
Capital Equipment
 
8,095

 
8,009

 
8,095

ITC Service Group Acquisition LLC, L+950, 0.50% LIBOR Floor, 5/26/2021(j)
 
1 Month LIBOR
 
High Tech Industries
 
11,250

 
11,049

 
11,081

Labvantage Solutions Inc., L+800, 1.00% LIBOR Floor, 12/29/2020(n)
 
3 Month LIBOR
 
High Tech Industries
 
4,813

 
4,771

 
4,813

Labvantage Solutions Ltd., E+800, 1.00% EURIBOR Floor, 12/29/2020(h)
 
3 Month EURIBOR
 
High Tech Industries
 
4,409

 
4,913

 
4,697

Liaison Acquisition, LLC, L+525, 1.00% LIBOR Floor, 2/8/2023
 
3 Month LIBOR
 
High Tech Industries
 
5,000

 
4,928

 
4,925

Lift Brands, Inc., L+800, 1.00% LIBOR Floor, 12/23/2019(n)
 
3 Month LIBOR
 
Services: Consumer
 
9,484

 
9,386

 
9,413

LTCG Holdings Corp., L+500, 1.00% LIBOR Floor, 6/6/2020(o)
 
1 Month LIBOR
 
Services: Business
 
5,911

 
5,528

 
5,527

Ministry Brands, LLC, L+500, 1.00% LIBOR Floor, 12/2/2022(e)(n)
 
1 Month LIBOR
 
Services: Business
 
4,997

 
4,801

 
4,872

Murray Energy Corp., L+725, 1.00% LIBOR Floor, 4/16/2020(o)
 
3 Month LIBOR
 
Metals & Mining
 
3,670

 
3,563

 
3,574

Nathan's Famous Inc., 10.00%, 3/15/2020(h)(n)
 
None
 
Beverage, Food & Tobacco
 
6,000

 
6,000

 
6,473

Navex Global, Inc., L+425, 1.00% LIBOR Floor, 11/19/2021(o)
 
1 Month LIBOR
 
High Tech Industries
 
13,685

 
13,728

 
13,719

Nextech Systems, LLC, L+725, 1.00% LIBOR Floor, 6/22/2021(j)(n)
 
3 Month LIBOR
 
High Tech Industries
 
15,442

 
14,894

 
15,134

Nielsen & Bainbridge, LLC, L+500, 1.00% LIBOR Floor, 8/15/2020(o)
 
2 Month LIBOR
 
Consumer Goods: Durable
 
16,022

 
15,943

 
15,982

NWN Acquisition Holding Company LLC, L+1000, 1.00% LIBOR Floor, 10/16/2020(j)
 
3 Month LIBOR
 
High Tech Industries
 
13,608

 
13,273

 
13,301

Oasis Outsourcing Holdings, Inc., L+475, 1.00% LIBOR Floor, 12/26/2021(o)
 
1 Month LIBOR
 
Services: Business
 
9,389

 
9,447

 
9,448

Onex TSG Holdings II Corp., L+400, 1.00% LIBOR Floor, 7/29/2022(o)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
3,418

 
3,440

 
3,441

Opal Acquisition, Inc., L+400, 1.00% LIBOR Floor, 11/27/2020(o)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
10,288

 
9,656

 
9,710

Orbcomm Inc., 8.00%, 4/1/2024(i)(n)
 
None
 
Telecommunications
 
9,911

 
9,911

 
10,010

See accompanying notes to consolidated financial statements.

6



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2017
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(d)
 
Cost(r)
 
Fair
Value(c)
Pelican Products, Inc., L+425, 1.00% LIBOR Floor, 4/10/2020(o)
 
3 Month LIBOR
 
Chemicals, Plastics & Rubber
 
2,497

 
2,500

 
2,499

Petroflow Energy Corporation, L+800, 1.00% LIBOR Floor, 6/29/2019(s)
 
1 Month LIBOR
 
Energy: Oil & Gas
 
4,969

 
4,716

 
4,758

Photonis Technologies SAS, L+750, 1.00% LIBOR Floor, 9/18/2019(h)(o)
 
3 Month LIBOR
 
Aerospace & Defense
 
6,433

 
5,406

 
5,982

Plano Molding Company, LLC, L+750, 1.00% LIBOR Floor, 5/12/2021(n)
 
2 Month LIBOR
 
Consumer Goods: Non-Durable
 
8,818

 
8,754

 
8,501

PSC Industrial Holdings Corp., L+475, 1.00% LIBOR Floor, 12/5/2020(o)
 
3 Month LIBOR
 
Services: Business
 
4,888

 
4,644

 
4,692

Retriever Medical/Dental Payments LLC, L+475, 1.00% LIBOR Floor, 2/3/2023
 
3 Month LIBOR
 
Services: Business
 
5,000

 
4,892

 
4,888

Rimini Street, Inc., 15.00%, 6/24/2020(m)(s)
 
None
 
High Tech Industries
 
19,695

 
19,504

 
19,300

Russell Investments US Institutional Holdco, Inc., L+575, 1.00% LIBOR Floor, 6/1/2023(o)
 
1 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
3,990

 
4,047

 
4,051

SG Acquisition, Inc., L+500, 1.00% LIBOR Floor, 3/29/2024(i)(o)
 
3 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
3,545

 
3,510

 
3,519

Scientific Games International, Inc., L+400, 0.75% LIBOR Floor, 10/1/2021(h)(o)
 
2 Month LIBOR
 
Hotel, Gaming & Leisure
 
8,266

 
8,365

 
8,380

Sequoia Healthcare Management, LLC, 16.00%, 7/17/2019(n)(s)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
6,327

 
6,237

 
6,216

Shift PPC LLC, L+600, 1.00% LIBOR Floor, 12/22/2021
 
1 Month LIBOR
 
High Tech Industries
 
4,941

 
4,825

 
4,817

SI Organization, Inc., L+475, 1.00% LIBOR Floor, 11/23/2019(o)
 
3 Month LIBOR
 
Services: Business
 
7,734

 
7,846

 
7,832

SmartBear Software Inc., L+750, 1.00% LIBOR Floor, 12/30/2020(n)
 
3 Month LIBOR
 
High Tech Industries
 
18,470

 
18,172

 
18,608

Southcross Holdings Borrower LP, 9.00%, 4/13/2023(s)
 
None
 
Energy: Oil & Gas
 
174

 
153

 
157

Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 1/21/2020(n)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
12,250

 
12,173

 
12,128

Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 7/21/2020(s)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
252

 
250

 
250

Sprint Industrial Holdings, LLC, L+575, 1.25% LIBOR Floor, 5/14/2019(n)
 
3 Month LIBOR
 
Energy: Oil & Gas
 
7,287

 
6,873

 
5,866

STG-Fairway Acquisitions, Inc., L+525, 1.00% LIBOR Floor, 6/30/2022(o)
 
3 Month LIBOR
 
Services: Business
 
3,929

 
3,811

 
3,801

Studio Movie Grill Holdings, LLC, L+725, 1.00% LIBOR Floor, 9/30/2020(e)(n)
 
3 Month LIBOR
 
Hotel, Gaming & Leisure
 
15,143

 
15,013

 
15,143

Survey Sampling International, LLC, L+500, 1.00% LIBOR Floor, 12/16/2020(o)
 
3 Month LIBOR
 
Services: Business
 
7,840

 
7,879

 
7,879

Telestream Holdings Corp., L+677, 1.00% LIBOR Floor, 1/15/2020(j)(n)
 
3 Month LIBOR
 
High Tech Industries
 
8,706

 
8,496

 
8,531

Tenere Inc., L+1000, 1.00% LIBOR Floor, 12/23/2021(n)
 
3 Month LIBOR
 
Capital Equipment
 
31,920

 
31,348

 
31,323

Therapure Biopharma Inc., L+875, 0.50% LIBOR Floor, 12/1/2021(h)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
15,000

 
14,928

 
15,225

TIBCO Software Inc., L+550, 1.00% LIBOR Floor, 12/4/2020(o)
 
1 Month LIBOR
 
High Tech Industries
 
17,168

 
17,339

 
17,382

Vince, LLC, L+500, 1.00% LIBOR Floor, 11/27/2019(h)(o)
 
3 Month LIBOR
 
Retail
 
1,127

 
1,071

 
1,070

VRC Companies, LLC, L+650, 1.00% LIBOR Floor, 3/31/2023
 
6 Month LIBOR
 
Services: Business
 
1,512

 
1,478

 
1,478

WD Wolverine Holdings, LLC, L+550, 1.00% LIBOR Floor, 8/16/2022(o)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
12,500

 
12,226

 
12,211

Western Dental Services, Inc., L+650, 1.00% LIBOR Floor, 11/1/2018(o)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
5,586

 
5,573

 
5,579

Worley Claims Services, LLC, L+800, 1.00% LIBOR Floor, 10/31/2020(n)
 
1 Month LIBOR
 
Services: Business
 
20,064

 
19,885

 
19,763

Total Senior Secured First Lien Debt
 

 

 

 
872,344

 
866,480

See accompanying notes to consolidated financial statements.


7



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2017
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(d)
 
Cost(r)
 
Fair
Value(c)
Senior Secured Second Lien Debt - 43.9%
 

 

 

 

 

ABG Intermediate Holdings 2 LLC, L+850, 1.00% LIBOR Floor, 5/27/2022(m)(n)
 
3 Month LIBOR
 
Retail
 
18,666

 
18,375

 
18,945

Access CIG, LLC, L+875, 1.00% LIBOR Floor, 10/17/2022(m)
 
3 Month LIBOR
 
Services: Business
 
16,030

 
15,473

 
15,549

ALM Media, LLC, L+800, 1.00% LIBOR Floor, 7/30/2021(n)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
10,344

 
10,214

 
9,568

American Residential Services LLC, L+800, 1.00% LIBOR Floor, 12/31/2021(n)
 
3 Month LIBOR
 
Construction & Building
 
4,933

 
4,893

 
4,958

Asurion, LLC, L+750, 1.00% LIBOR Floor, 3/3/2021(o)
 
1 Month LIBOR
 
Services: Consumer
 
7,891

 
7,996

 
8,006

Confie Seguros Holding II Co., L+900, 1.25% LIBOR Floor, 5/8/2019
 
3 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
13,827

 
13,413

 
13,775

Conisus, LLC, L+875, 1.00% LIBOR Floor, 6/23/2021
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
11,750

 
9,687

 
8,930

Drew Marine Group, Inc., L+700, 1.00% LIBOR Floor, 5/19/2021(h)(n)
 
3 Month LIBOR
 
Chemicals, Plastics & Rubber
 
9,500

 
9,461

 
9,215

Elements Behavioral Health, Inc., L+1200, 1.00% LIBOR Floor, 2/11/2020(s)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
5,891

 
5,859

 
4,889

Emerald 3 Ltd., L+700, 1.00% LIBOR Floor, 5/16/2022(h)(n)
 
3 Month LIBOR
 
Environmental Industries
 
3,000

 
2,979

 
2,738

Evergreen Skills Lux S.À.R.L., L+825, 1.00% LIBOR Floor, 4/28/2022(h)
 
1 Month LIBOR
 
High Tech Industries
 
10,000

 
6,974

 
6,906

Flexera Software LLC, L+700, 1.00% LIBOR Floor, 4/2/2021
 
1 Month LIBOR
 
High Tech Industries
 
9,385

 
9,140

 
9,362

Genex Holdings, Inc., L+775, 1.00% LIBOR Floor, 5/30/2022(n)
 
1 Month LIBOR
 
Services: Business
 
11,410

 
11,331

 
11,253

Global Tel*Link Corp., L+775, 1.25% LIBOR Floor, 11/23/2020
 
3 Month LIBOR
 
Telecommunications
 
9,500

 
9,491

 
9,488

GOBP Holdings, Inc., L+825, 1.00% LIBOR Floor, 10/21/2022(o)
 
3 Month LIBOR
 
Retail
 
4,000

 
4,022

 
4,015

Institutional Shareholder Services Inc., L+850, 1.00% LIBOR Floor, 4/30/2022(n)
 
3 Month LIBOR
 
Services: Business
 
10,648

 
10,540

 
10,755

Mergermarket USA, Inc., L+650, 1.00% LIBOR Floor, 2/4/2022(n)(o)
 
3 Month LIBOR
 
Services: Business
 
10,380

 
10,277

 
10,302

Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023(n)
 
1 Month LIBOR
 
Services: Business
 
7,000

 
6,900

 
6,930

Mississippi Sand, LLC, L+1000, 1.00% LIBOR Floor, 11/21/2019
 
3 Month LIBOR
 
Metals & Mining
 
13,196

 
10,979

 
11,712

Mitchell International, Inc., L+750, 1.00% LIBOR Floor, 10/11/2021(m)(n)
 
3 Month LIBOR
 
High Tech Industries
 
14,909

 
14,496

 
15,015

MSC.Software Corp., L+750, 1.00% LIBOR Floor, 6/1/2021(m)
 
1 Month LIBOR
 
High Tech Industries
 
15,000

 
14,840

 
15,019

MWI Holdings, Inc., L+925, 1.00% LIBOR Floor, 12/28/2020(n)
 
3 Month LIBOR
 
Construction & Building
 
10,000

 
9,788

 
10,050

Navex Global, Inc., L+875, 1.00% LIBOR Floor, 11/18/2022(m)(n)
 
6 Month LIBOR
 
High Tech Industries
 
10,278

 
10,149

 
10,227

Niacet Corp., E+875, 1.00% EURIBOR Floor, 8/1/2024(h)
 
3 Month EURIBOR
 
Chemicals, Plastics & Rubber
 
7,489

 
7,927

 
7,819

Onex Carestream Finance LP, L+850, 1.00% LIBOR Floor, 12/7/2019(o)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
13,636

 
12,264

 
12,289

Onex TSG Holdings II Corp., L+850, 1.00% LIBOR Floor, 7/31/2023(n)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
12,249

 
12,140

 
12,111

Patterson Medical Supply, Inc., L+850, 1.00% LIBOR Floor, 8/28/2023(n)
 
2 Month LIBOR
 
Healthcare & Pharmaceuticals
 
13,500

 
13,380

 
13,365

Pelican Products, Inc., L+825, 1.00% LIBOR Floor, 4/11/2021(m)(o)
 
3 Month LIBOR
 
Chemicals, Plastics & Rubber
 
11,469

 
11,449

 
11,426

PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023(n)
 
1 Month LIBOR
 
Chemicals, Plastics & Rubber
 
15,000

 
14,738

 
14,738

PetVet Care Centers, LLC, L+850, 1.00% LIBOR Floor, 6/17/2021(n)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
13,500

 
13,114

 
13,230

PFS Holding Corp., L+725, 1.00% LIBOR Floor, 1/31/2022(o)
 
1 Month LIBOR
 
Retail
 
4,998

 
4,652

 
4,651

Premiere Global Services, Inc., L+950, 1.00% LIBOR Floor, 6/6/2022(n)
 
3 Month LIBOR
 
Telecommunications
 
3,000

 
2,886

 
2,940

PSC Industrial Holdings Corp., L+825, 1.00% LIBOR Floor, 12/5/2021(n)
 
3 Month LIBOR
 
Services: Business
 
10,000

 
9,849

 
9,350

Securus Technologies Holdings, Inc., L+775, 1.25% LIBOR Floor, 4/30/2021(o)
 
3 Month LIBOR
 
Telecommunications
 
5,500

 
5,484

 
5,527

SMG, L+825, 1.00% LIBOR Floor, 2/27/2021(n)
 
3 Month LIBOR
 
Hotel, Gaming & Leisure
 
6,142

 
6,142

 
6,134

Sterling Midco Holdings, Inc., L+775, 1.00% LIBOR Floor, 6/19/2023(n)
 
3 Month LIBOR
 
Services: Business
 
10,462

 
10,434

 
10,305

See accompanying notes to consolidated financial statements.

8



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2017
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(d)
 
Cost(r)
 
Fair
Value(c)
STG-Fairway Acquisitions, Inc., L+925, 1.00% LIBOR Floor, 6/30/2023(n)
 
3 Month LIBOR
 
Services: Business
 
10,000

 
9,872

 
9,775

Survey Sampling International, LLC, L+900, 1.00% LIBOR Floor, 12/16/2021(m)
 
3 Month LIBOR
 
Services: Business
 
15,000

 
14,773

 
14,700

Telecommunications Management, LLC, L+800, 1.00% LIBOR Floor, 10/30/2020(n)
 
3 Month LIBOR
 
Media: Broadcasting & Subscription
 
1,606

 
1,575

 
1,614

TexOak Petro Holdings LLC, 8.00%, 12/29/2019(s)
 
None
 
Energy: Oil & Gas
 
6,852

 
1,820

 
2,929

TMK Hawk Parent, Corp., L+750, 1.00% LIBOR Floor, 10/1/2022(n)
 
1 Month LIBOR
 
Beverage, Food & Tobacco
 
15,000

 
14,885

 
14,925

TouchTunes Interactive Networks, Inc., L+825, 1.00% LIBOR Floor, 5/29/2022
 
3 Month LIBOR
 
Hotel, Gaming & Leisure
 
6,000

 
5,945

 
5,925

U.S. Renal Care, Inc., L+800, 1.00% LIBOR Floor, 12/29/2023(n)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
10,000

 
9,824

 
9,000

Wand Intermediate I LP, L+725, 1.00% LIBOR Floor, 9/19/2022(n)
 
3 Month LIBOR
 
Automotive
 
16,000

 
15,875

 
16,120

Winebow Holdings, Inc., L+750, 1.00% LIBOR Floor, 1/2/2022(n)
 
1 Month LIBOR
 
Beverage, Food & Tobacco
 
12,823

 
12,555

 
12,182

Zywave Inc., L+900, 1.00% LIBOR Floor, 11/17/2023
 
3 Month LIBOR
 
High Tech Industries
 
5,000

 
4,928

 
4,975

Total Senior Secured Second Lien Debt
 

 

 

 
443,788

 
443,637

Collateralized Securities and Structured Products - Debt - 3.8%
 

 

 

 

 

Deutsche Bank AG Frankfurt CRAFT 2013-1A Class Credit Linked Note, L+925, 4/17/2020(h)
 
3 Month LIBOR
 
Diversified Financials
 
2,000

 
2,020

 
2,000

Deutsche Bank AG Frankfurt CRAFT 2013-1X Class Credit Linked Note, L+925, 4/17/2020(h)
 
3 Month LIBOR
 
Diversified Financials
 
610

 
616

 
610

Deutsche Bank AG Frankfurt CRAFT 2014-1 Class Credit Linked Note, L+965, 5/15/2019(h)
 
3 Month LIBOR
 
Diversified Financials
 
5,400

 
5,400

 
5,314

Deutsche Bank AG Frankfurt CRAFT 2015-2 Class Credit Linked Note, L+925, 1/16/2022(h)
 
3 Month LIBOR
 
Diversified Financials
 
15,500

 
15,500

 
15,136

Great Lakes CLO 2014-1, Ltd. Class E Notes, L+525, 4/15/2025(g)(h)
 
3 Month LIBOR
 
Diversified Financials
 
5,000

 
4,626

 
4,518

Ivy Hill Middle Market Credit Fund VII, Ltd. Class E Notes, L+565, 10/20/2025(g)(h)
 
3 Month LIBOR
 
Diversified Financials
 
2,000

 
1,881

 
1,852

JFIN CLO 2014, Ltd. Class E Notes, L+500, 4/20/2025(g)(h)
 
3 Month LIBOR
 
Diversified Financials
 
2,500

 
2,350

 
2,335

NXT Capital CLO 2014-1, LLC Class E Notes, L+550, 4/23/2026(g)(h)
 
3 Month LIBOR
 
Diversified Financials
 
7,500

 
7,105

 
6,821

Total Collateralized Securities and Structured Products - Debt
 

 

 

 
39,498

 
38,586

Collateralized Securities and Structured Products - Equity - 3.1%
 

 

 

 

 

Anchorage Capital CLO 2012-1, Ltd. Subordinated Notes, 7.45% Estimated Yield, 1/13/2025(h)
 
(f)
 
Diversified Financials
 
4,000

 
2,787

 
2,402

APIDOS CLO XVI Subordinated Notes, 0.00% Estimated Yield, 1/19/2025(h)
 
(f)
 
Diversified Financials
 
9,000

 
4,470

 
4,071

CENT CLO 19 Ltd. Subordinated Notes, 10.50% Estimated Yield, 10/29/2025(h)
 
(f)
 
Diversified Financials
 
2,000

 
1,308

 
1,154

Dryden XXIII Senior Loan Fund Subordinated Notes, 0.00% Estimated Yield, 7/17/2023(h)
 
(f)
 
Diversified Financials
 
9,250

 
1,308

 

Galaxy XV CLO Ltd. Class A Subordinated Notes, 13.94% Estimated Yield, 4/15/2025(h)
 
(f)
 
Diversified Financials
 
4,000

 
2,347

 
2,367

Ivy Hill Middle Market Credit Fund VII, Ltd. Subordinated Notes, 10.29% Estimated Yield, 10/20/2025(h)
 
(f)
 
Diversified Financials
 
2,000

 
1,626

 
1,509

Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan, 10.35% Estimated Yield, 2/2/2026(e)(h)
 
(f)
 
Diversified Financials
 
10,000

 
9,937

 
9,762

Ivy Hill Middle Market Credit Fund IX, Ltd. Subordinated Notes, 15.54% Estimated Yield, 10/18/2025(h)
 
(f)
 
Diversified Financials
 
8,146

 
5,998

 
6,179

Ivy Hill Middle Market Credit Fund X, Ltd. Subordinated Notes, 11.20% Estimated Yield, 7/24/2027(h)
 
(f)
 
Diversified Financials
 
4,760

 
3,879

 
3,715

Total Collateralized Securities and Structured Products - Equity
 

 

 

 
33,660

 
31,159

Unsecured Debt - 0.4%
 

 

 

 

 

Radio One, Inc., 9.25%, 2/15/2020
 
None
 
Media: Broadcasting & Subscription
 
4,000

 
3,836

 
3,890

Total Unsecured Debt
 

 

 

 
3,836

 
3,890

Equity - 0.4%
 
 
 
 
 
 
 
 
 
 
Mooregate ITC Acquisition, LLC, Class A Units(p)
 

 
High Tech Industries
 
500 Units

 
563

 
550

See accompanying notes to consolidated financial statements.

9



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2017
(in thousands)
Portfolio Company(a)
 
Industry
 
Principal/
Par Amount/
Units(d)
 
Cost(r)
 
Fair
Value(c)
NS NWN Acquisition, LLC(p)
 
High Tech Industries
 
346 Units
 
393

 
338

NSG Co-Invest (Bermuda), LP(h)(p)
 
Consumer Goods: Durable
 
1,575 Units
 
1,000

 
1,100

Southcross Holdings GP, LLC, Units(p)
 
Energy: Oil & Gas
 
188 Units
 

 

Southcross Holdings LP, Class A-II Units(p)
 
Energy: Oil & Gas
 
188 Units
 
75

 
82

Speed Commerce Investment Part, LLC(p)
 
High Tech Industries
 
629 Units
 
2,640

 
1,500

Tenere Inc. Warrant(p)
 
Capital Equipment
 
N/A
 
161

 
166

TexOak Petro Holdings, LLC(p)
 
Energy: Oil & Gas
 
60,000 Units
 

 

Total Equity
 
 
 
 
 
4,832

 
3,736

Short Term Investments - 6.9%(k)
 
 
 
 
 
 
 
 
First American Treasury Obligations Fund, Class Z Shares, 0.61%(l)
 
 
 
 
 
70,300


70,300

Total Short Term Investments
 
 
 
 
 
70,300


70,300

TOTAL INVESTMENTS - 144.3%
 
 
 
 
 
$
1,468,258

 
1,457,788

LIABILITIES IN EXCESS OF OTHER ASSETS - (44.3%)
 
 
 
 
 
 
 
(447,778
)
NET ASSETS - 100%
 
 
 
 
 
 
 
$
1,010,010

Counterparty
 
Instrument
 
Maturity Date
 
Nominal Amount (d)
 
Cost(p)
 
Fair Value(c)
Derivative Asset - 0.0%
 
 
 
 
 
 
 
 
 
 
Total Return Swap
 
 
 
 
 
 
 
 
 
 
Citibank, N.A.
 
See Note 7
 
4/18/2017
 
$
13,790

 
N/A
 
$
134

a.
All of the Company’s investments are issued by eligible U.S. portfolio companies, as defined in the Investment Company Act of 1940, as amended, or the 1940 Act, except for investments specifically identified as non-qualifying per note h. below. Except for CION / Capitala Senior Loan Fund I, LLC, or CCSLF, the Company does not control and is not an affiliate of any of the portfolio companies in its investment portfolio. Unless specifically identified in note s. below, investments do not contain a paid-in-kind, or PIK, interest provision.
b.
The 1, 2, 3, and 6 month London Interbank Offered Rate, or LIBOR, rates were 0.98%, 1.03%, 1.15%, and 1.42%, respectively, as of March 31, 2017.  The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of March 31, 2017, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to March 31, 2017. The 3 month Euro Interbank Offered Rate, or EURIBOR, rate was (0.36%) as of March 31, 2017.
c.
Fair value determined in good faith by the Company’s board of directors (see Note 9).
d.
Denominated in U.S. dollars unless otherwise noted.
e.
As discussed in Note 11, on March 31, 2017, the Company was committed, upon the satisfaction of certain conditions, to fund an additional $4,127 and $1,111 to Studio Movie Grill Holdings, LLC and Ivy Hill Middle Market Credit Fund VIII, Ltd., respectively. On May 10, 2017, the Company was committed, upon the satisfaction of certain conditions, to fund an additional $4,127, $1,111, and $180 to Studio Movie Grill Holdings, LLC, Ivy Hill Middle Market Credit Fund VIII, Ltd., and Ministry Brands, LLC, respectively.
f.
The CLO subordinated notes are considered equity positions in the CLO vehicles and are not rated. Equity investments are entitled to recurring distributions, which are generally equal to the remaining cash flow of the payments made by the underlying vehicle's securities less contractual payments to debt holders and expenses. The estimated yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized.
g.
Great Lakes CLO 2014-1 Class E Notes, Ivy Hill Middle Market Credit Fund VII Class E Notes and NXT Capital CLO 2014-1 Class E Notes were rated Ba2 on Moody's credit scale as of March 31, 2017. JFIN CLO 2014 Class E Notes were rated BB on S&P's credit scale as of March 31, 2017.
h.
The investment or a portion thereof is not a qualifying asset under the 1940 Act. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets as defined under Section 55 of the 1940 Act. As of March 31, 2017, 88.9% of the Company’s total assets represented qualifying assets. In addition, as described in Note 7, the Company calculates its compliance with the qualifying asset test on a “look through” basis by treating each loan underlying the total return swap as either a qualifying asset or non-qualifying asset based on whether the obligor is an eligible portfolio company. On this basis, 88.9% of the Company’s total assets represented qualifying assets as of March 31, 2017.
i.
Position or a portion thereof unsettled as of March 31, 2017.
See accompanying notes to consolidated financial statements.

10



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2017
(in thousands)
j.
In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company may be entitled to receive additional amounts as a result of an arrangement between the Company and other lenders in the syndication in exchange for lower payment priority.
k.
Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less.
l.
7-day effective yield as of March 31, 2017.
m.
Security or a portion thereof was pledged as collateral supporting the amounts outstanding, if any, under the revolving credit facility with East West Bank as of March 31, 2017 (see Note 8).
n.
Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, 34th Street Funding, LLC, or 34th Street, and was pledged as collateral supporting the amounts outstanding under the credit facility with JPMorgan Chase Bank, National Association, or JPM, as of March 31, 2017 (see Note 8).
o.
Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, Flatiron Funding II, LLC, or Flatiron Funding II, and was pledged as collateral supporting the amounts outstanding under the credit facility with Citibank N.A., or Citibank, as of March 31, 2017 (see Note 8).
p.
Non-income producing security.
q.
Investment was on non-accrual status as of March 31, 2017.
r.
Represents amortized cost for debt securities and cost for equity investments.
s.
For the three months ended March 31, 2017, the following investments contain a PIK interest provision whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities:
 
 
 
 
Interest Rate
 
Interest Amount
Portfolio Company
 
Investment Type
 
Cash
 
PIK
 
All-in-Rate
 
Cash
 
PIK
 
Total
Elements Behavioral Health, Inc.
 
Senior Secured Second Lien Debt
 
 
13.00%
 
13.00%
 
$

 
$
188

 
$
188

Petroflow Energy Corp.
 
Senior Secured First Lien Debt
 
3.00%
 
6.00%
 
9.00%
 
$
37

 
$
74

 
$
111

Rimini Street, Inc.
 
Senior Secured First Lien Debt
 
12.00%
 
3.00%
 
15.00%
 
$
580

 
$
143

 
$
723

Sequoia Healthcare Management, LLC
 
Senior Secured First Lien Debt
 
12.00%
 
4.00%
 
16.00%
 
$
153

 
$
65

 
$
218

Southcross Holdings Borrower LP
 
Senior Secured First Lien Debt
 
3.50%
 
5.50%
 
9.00%
 
$

 
$
3

 
$
3

Spinal USA, Inc. / Precision Medical Inc.
 
Senior Secured First Lien Debt
 
 
10.50%
 
10.50%
 
$

 
$
130

 
$
130

TexOak Petro Holdings LLC
 
Senior Secured Second Lien Debt
 
 
8.00%
 
8.00%
 
$
10

 
$
126

 
$
136


See accompanying notes to consolidated financial statements.

11



CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 2016
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(d)
 
Cost(p)
 
Fair
Value(c)
Senior Secured First Lien Debt - 49.0%
 
 
 
 
 
 
 
 
 
 
AbelConn, LLC / Atrenne Computing Solutions, LLC / Airco Industries, LLC, L+850, 1.00% LIBOR Floor, 7/17/2019(j)
 
3 Month LIBOR
 
Aerospace & Defense

 
$
22,112

 
$
21,702

 
$
21,780

Adams Publishing Group, LLC, L+700, 1.00% LIBOR Floor, 11/3/2020(n)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
3,892

 
3,818

 
3,833

American Clinical Solutions LLC, L+950, 1.00% LIBOR Floor, 6/11/2020
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
9,034

 
8,908

 
8,492

American Media, Inc., L+750, 1.00% LIBOR Floor, 8/24/2020(n)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
11,467

 
11,150

 
11,123

American Media, Inc., 0.50% Unfunded, 8/24/2020(e)
 
None
 
Media: Advertising, Printing & Publishing
 
505

 
(15
)
 
(15
)
American Media, Inc., 7.50%, 8/24/2020(e)
 
None
 
Media: Advertising, Printing & Publishing
 
206

 
(6
)
 
(6
)
American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021(n)
 
3 Month LIBOR
 
Telecommunications
 
19,248

 
17,475

 
18,863

AMPORTS, Inc., L+500, 1.00% LIBOR Floor, 5/19/2020(j)
 
3 Month LIBOR
 
Automotive
 
19,100

 
18,743

 
18,718

Blue Ribbon, LLC, L+400, 1.00% LIBOR Floor, 11/15/2021(i)
 
3 Month LIBOR
 
Beverage, Food & Tobacco
 
9,975

 
9,975

 
9,972

CF Entertainment Inc., L+1100, 1.00% LIBOR Floor, 6/26/2020(n)
 
3 Month LIBOR
 
Media: Diversified & Production
 
17,094

 
17,057

 
17,094

Dodge Data & Analytics, LLC / Skyline Data News and Analytics, LLC, L+875, 1.00% LIBOR Floor, 10/31/2019(n)
 
3 Month LIBOR
 
Construction & Building
 
10,387

 
10,241

 
10,218

ECI Acquisition Holdings, Inc., L+625, 1.00% LIBOR Floor, 3/11/2019(n)
 
3 Month LIBOR
 
High Tech Industries
 
8,517

 
8,493

 
8,517

Elemica, Inc., L+800, 1.00% LIBOR Floor, 7/7/2021(n)
 
1 Month LIBOR