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EX-32.3 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS - CION Investment Corpcionex-32_3.htm
EX-32.2 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, - CION Investment Corpcionex-32_2.htm
EX-32.1 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, - CION Investment Corpcionex-32_1.htm
EX-31.3 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES - CION Investment Corpcionex-31_3.htm
EX-31.2 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBA - CION Investment Corpcionex-31_2.htm
EX-31.1 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBA - CION Investment Corpcionex-31_1.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, 2018
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, 2018 was 114,822,990.




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,
2018
 
December 31,
2017
 
 
(unaudited)
 
 
Assets
Investments, at fair value:
 

 

     Non-controlled, non-affiliated investments (amortized cost of $1,742,041 and $1,692,978, respectively)
 
$
1,746,393

 
$
1,698,662

     Non-controlled, affiliated investments (amortized cost of $19,130 and $19,422, respectively)
 
15,123

 
15,533

          Total investments, at fair value (amortized cost of $1,761,171 and $1,712,400, respectively)
 
1,761,516

 
1,714,195

Cash
 
13,738

 
56,354

Interest receivable on investments
 
12,323

 
12,433

Receivable due on investments sold
 
26,522

 
29,524

Prepaid expenses and other assets
 
3,284

 
3,417

   Total assets
 
$
1,817,383

 
$
1,815,923

Liabilities and Shareholders' Equity
Liabilities
 
 
 
 
Financing arrangements (net of unamortized debt issuance costs of $5,414 and $6,018, respectively)
 
$
706,050

 
$
705,447

Payable for investments purchased
 
38,835

 
36,439

Accounts payable and accrued expenses
 
1,351

 
1,432

Interest payable
 
2,532


2,311

Accrued management fees
 
7,939

 
7,821

Accrued subordinated incentive fee on income
 

 
3,222

Accrued administrative services expense
 
111

 
556

Due to CIG - offering costs
 
12

 
4

Total liabilities
 
756,830

 
757,232

 
 
 
 
 
Commitments and contingencies (Note 4 and Note 11)
 
 
 
 
 
 
 
 
 
Shareholders' Equity
 
 
 
 
Common stock, $0.001 par value; 500,000,000 shares authorized;
 
 
 
 
116,108,932 and 115,781,751 shares issued and outstanding, respectively
 
116

 
116

Capital in excess of par value
 
1,079,262

 
1,076,131

Undistributed net investment income
 
10,549

 
10,368

Accumulated net realized loss from investments
 
(10,385
)
 
(10,385
)
Accumulated net unrealized appreciation on investments
 
345

 
1,795

Accumulated net realized loss from total return swap(1)
 
(19,334
)
 
(19,334
)
Total shareholders' equity
 
1,060,553

 
1,058,691

Total liabilities and shareholders' equity
 
$
1,817,383

 
$
1,815,923

Net asset value per share of common stock at end of period
 
$
9.13

 
$
9.14

(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,
 
 
2018

2017
 
 
(unaudited)
 
(unaudited)
Investment income
 
 
 
 
Interest income:
 
 
 
 
     Non-controlled, non-affiliated investments
 
$
38,073

 
$
27,498

     Non-controlled, affiliated investments
 
99

 

          Total interest income
 
38,172

 
27,498

Fee and other income
 
214

 
547

Total investment income
 
38,386

 
28,045

Operating expenses
 
 
 
 
Management fees
 
7,939

 
6,482

Administrative services expense
 
461

 
346

General and administrative(1)
 
1,982

 
1,746

Interest expense
 
8,918

 
2,926

Total operating expenses
 
19,300

 
11,500

Net investment income
 
19,086

 
16,545

Realized and unrealized gains (losses)
 
 
 
 
Net realized gains (losses) on:
 
 
 
 
   Non-controlled, non-affiliated investments
 
2,078

 
740

   Non-controlled, affiliated investments
 
17

 

   Total return swap(2)
 

 
(14,269
)
   Foreign currency
 
2


144

Net realized gains (losses)
 
2,097

 
(13,385
)
Net change in unrealized (depreciation) appreciation on:
 
 
 
 
   Non-controlled, non-affiliated investments
 
(1,333
)
 
(2,817
)
   Non-controlled, affiliated investments
 
(117
)
 

   Total return swap(2)
 

 
15,536

Net change in unrealized (depreciation) appreciation
 
(1,450
)
 
12,719

Net realized and unrealized gains (losses)
 
647

 
(666
)
Net increase in net assets resulting from operations
 
$
19,733

 
$
15,879

Per share information—basic and diluted
 
 
 
 
Net increase in net assets per share resulting from operations
 
$
0.17

 
$
0.14

Weighted average shares of common stock outstanding
 
114,849,958

 
110,083,778

(1)  See Note 10 for details of the Company's general and administrative expenses.
(2)  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,
 
 
2018
 
2017
 
 
(unaudited)
 
(unaudited)
Changes in net assets from operations:
 
 
 
 
Net investment income
 
$
19,086

 
$
16,545

Net realized gain on investments
 
2,095

 
740

Net realized gain on foreign currency
 
2

 
144

Net change in unrealized depreciation on investments
 
(1,450
)
 
(2,817
)
Net realized loss on total return swap(1)
 

 
(14,269
)
Net change in unrealized appreciation on total return swap(1)
 

 
15,536

Net increase in net assets resulting from operations
 
19,733

 
15,879

Changes in net assets from shareholders' distributions:(2)
 
 
 
 
Net investment income
 
(18,905
)
 
(15,289
)
Net realized gain on total return swap
 
 
 
 
Net interest and other income from TRS portfolio
 

 
(3,316
)
Net gain on TRS loan sales(3)
 

 
(634
)
Net realized gain on investments and foreign currency
 
(2,097
)
 
(884
)
Net decrease in net assets from shareholders' distributions
 
(21,002
)
 
(20,123
)
Changes in net assets from capital share transactions:
 
 
 
 
Issuance of common stock, net of issuance costs of $471 and $448, respectively
 
11,666

 
11,935

Reinvestment of shareholders' distributions
 
9,844

 
9,926

Repurchase of common stock
 
(18,379
)
 
(7,370
)
Net increase in net assets resulting from capital share transactions
 
3,131

 
14,491

 
 
 
 
 
Total increase in net assets
 
1,862

 
10,247

Net assets at beginning of period
 
1,058,691

 
999,763

Net assets at end of period
 
$
1,060,553

 
$
1,010,010

Net asset value per share of common stock at end of period
 
$
9.13

 
$
9.07

Shares of common stock outstanding at end of period
 
116,108,932

 
111,370,686

Undistributed net investment income at end of period
 
$
10,549

 
$
2,684

(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)
During the three months ended March 31, 2017, the Company realized losses of $21,146, which were not then 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,
 
 
2018

2017
 
 
(unaudited)
 
(unaudited)
Operating activities:
 
 
 
 
Net increase in net assets resulting from operations
 
$
19,733

 
$
15,879

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in
 
 
 
 
  operating activities:
 
 
 
 
Net accretion of discount on investments
 
(2,318
)
 
(1,817
)
Proceeds from principal repayment of investments
 
192,418

 
109,443

Purchase of investments
 
(322,156
)
 
(508,339
)
Paid-in-kind interest
 
(665
)
 
(729
)
Decrease in short term investments, net
 
25,452

 
198

Proceeds from sale of investments
 
60,369

 
30,903

Net realized gain on investments
 
(2,095
)
 
(740
)
Net unrealized depreciation on investments
 
1,450

 
2,817

Net unrealized appreciation on total return swap(1)
 

 
(15,536
)
Amortization of debt issuance costs
 
737

 
273

(Increase) decrease in due from counterparty(1)
 

 
123,254

(Increase) decrease in interest receivable on investments
 
334

 
1,389

(Increase) decrease in receivable due on investments sold
 
3,002

 
(2,112
)
(Increase) decrease in receivable due on total return swap(1)
 

 
16,874

(Increase) decrease in prepaid expenses and other assets
 
5

 
127

Increase (decrease) in payable for investments purchased
 
2,396

 
11,923

Increase (decrease) in accounts payable and accrued expenses
 
(81
)
 
(395
)
Increase (decrease) in interest payable
 
221

 
109

Increase (decrease) in accrued management fees
 
118

 
701

Increase (decrease) in accrued administrative services expense
 
(445
)
 
(336
)
Increase (decrease) in due to CIG - offering costs
 
8

 

Increase (decrease) in subordinated incentive fee on income payable
 
(3,222
)
 

Net cash used in operating activities
 
(24,739
)
 
(216,114
)
Financing activities:
 
 
 
 
Gross proceeds from issuance of common stock
 
12,137

 
12,383

Commissions and dealer manager fees paid
 
(471
)
 
(450
)
Repurchase of common stock
 
(18,379
)
 
(7,370
)
Shareholders' distributions paid(2)
 
(11,158
)
 
(10,197
)
Borrowings under financing arrangements(3)
 

 
231,698

Debt issuance costs paid
 
(6
)
 
(1,811
)
Net cash (used in) provided by financing activities
 
(17,877
)
 
224,253

Net (decrease) increase in cash and restricted cash
 
(42,616
)
 
8,139

Cash and restricted cash, beginning of period
 
56,354

 
17,046

Cash and restricted cash, end of period
 
$
13,738

 
$
25,185

Supplemental disclosure of cash flow information:
 
 
 
 
Cash paid for interest
 
$
7,976

 
$
2,540

Supplemental non-cash financing activities:
 
 
 
 
Reinvestment of shareholders' distributions(2)
 
$
9,844

 
$
9,926

(1)
See Note 7 for a discussion of the Company’s total return swap agreement.
(2)
See Note 5 for a discussion of the sources of distributions paid by the Company.
(3)
See Note 8 for a discussion of the Company’s financing arrangements.
See accompanying notes to consolidated financial statements.

4



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
Senior Secured First Lien Debt - 109.4%
 
 
 
 
 
 
 
 
 
 
AbelConn, LLC / Atrenne Computing Solutions, LLC / Airco Industries, LLC, L+875, 1.00% LIBOR Floor, 7/17/2019 (p)(r)
 
3 Month LIBOR
 
Aerospace & Defense
 
$
18,506

 
$
18,323

 
$
18,599

Academy, Ltd., L+400, 1.00% LIBOR Floor, 7/1/2022 (q)
 
(y)
 
Retail
 
14,531

 
11,831

 
11,643

Access CIG, LLC, L+375, 0.00% LIBOR Floor, 2/27/2025
 
1 Month LIBOR
 
Services: Business
 
914

 
910

 
927

Access CIG, LLC, 0.00% Unfunded, 8/27/2018
 
None
 
Services: Business
 
191

 

 
3

Adams Publishing Group, LLC, L+700, 1.00% LIBOR Floor, 11/3/2020 (p)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
5,074

 
5,034

 
5,074

Advanced Integration Technology LP, L+475, 1.00% LIBOR Floor, 4/3/2023 (q)
 
2 Month LIBOR
 
Aerospace & Defense
 
3,960

 
3,991

 
3,990

Allen Media, LLC, L+925, 1.00% LIBOR Floor, 3/22/2025 (p)(r)
 
1 Month LIBOR
 
Media: Diversified & Production
 
60,000

 
58,504

 
58,650

ALM Media, LLC, L+450, 1.00% LIBOR Floor, 7/31/2020 (k)(q)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
13,562

 
12,403

 
11,697

Alvogen Pharma US, Inc., L+500, 1.00% LIBOR Floor, 4/1/2022 (q)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
8,105

 
8,071

 
8,149

American Clinical Solutions LLC, 12.50%, 6/11/2020 (u)(w)
 
None
 
Healthcare & Pharmaceuticals
 
9,152

 
9,070

 
7,413

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

 
10,270

 
10,708

American Media, Inc., L+900, 1.00% LIBOR Floor, 8/24/2020 (p)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
14,815

 
14,452

 
15,185

American Media, Inc., 0.50% Unfunded, 8/24/2020
 
None
 
Media: Advertising, Printing & Publishing
 
746

 

 
19

American Media, Inc., 9.00% Unfunded, 8/24/2020
 
None
 
Media: Advertising, Printing & Publishing
 
84

 

 
2

American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021 (p)(q)(r)(s)
 
2 Month LIBOR
 
Telecommunications
 
21,031

 
19,418

 
21,031

AMPORTS, Inc., L+500, 1.00% LIBOR Floor, 5/19/2020 (l)(p)(r)
 
1 Month LIBOR
 
Automotive
 
18,943

 
18,712

 
18,943

AP Exhaust Acquisition, LLC, L+500, 1.00% LIBOR Floor, 5/10/2024 (q)
 
3 Month LIBOR
 
Automotive
 
5,599

 
5,416

 
5,616

Ascent Resources - Marcellus, LLC, L+650, 1.00% LIBOR Floor, 3/30/2023
 
1 Month LIBOR
 
Energy: Oil & Gas
 
712

 
712

 
712

Associated Asphalt Partners, LLC, L+525, 1.00% LIBOR Floor, 4/5/2024 (q)
 
1 Month LIBOR
 
Construction & Building
 
10,927

 
10,739

 
10,627

Azure Midstream Energy, LLC, L+750, 1.00% LIBOR Floor, 12/31/2019 (q)
 
1 Month LIBOR
 
Energy: Oil & Gas
 
1,964

 
1,928

 
1,934

Cadence Aerospace, LLC, L+650, 1.00% LIBOR Floor, 11/14/2023 (r)(s)
 
3 Month LIBOR
 
Aerospace & Defense
 
19,950

 
19,762

 
19,551

Caraustar Industries, Inc., L+550, 1.00% LIBOR Floor, 3/14/2022 (q)
 
3 Month LIBOR
 
Forest Products & Paper
 
5,563

 
5,620

 
5,566

Cardinal US Holdings, Inc., L+500, 1.00% LIBOR Floor, 7/31/2023 (q)
 
3 Month LIBOR
 
Services: Business
 
8,458

 
7,901

 
8,077

CB URS Holdings Corp., L+525, 1.00% LIBOR Floor, 9/1/2024 (q)(s)
 
1 Month LIBOR
 
Transportation: Cargo
 
14,775

 
14,703

 
15,034

Central Security Group, Inc., L+563, 1.00% LIBOR Floor, 10/6/2021 (q)(s)
 
1 Month LIBOR
 
Services: Consumer
 
17,853

 
17,881

 
17,897

Charming Charlie, LLC, L+100, 1.00% LIBOR Floor, 6/8/2018
 
1 Month LIBOR
 
Retail
 
4,190

 
2,366

 
3,771

Charming Charlie, LLC, L+450, 1.00% LIBOR Floor, 6/8/2018
 
1 Month LIBOR
 
Retail
 
1,885

 
1,885

 
1,678

Charming Charlie, LLC, L+800, 1.00% LIBOR Floor, 12/24/2019 (u)
 
1 Month LIBOR
 
Retail
 
7,936

 
2,417

 

Charming Charlie, LLC, 0.38% Unfunded, 6/8/2018
 
None
 
Retail
 
210

 

 
(23
)
CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021 (s)
 
3 Month LIBOR
 
Hotel, Gaming & Leisure
 
20,490

 
20,291

 
20,285

CircusTrix Holdings, LLC, 1.00% Unfunded, 12/27/2019
 
None
 
Hotel, Gaming & Leisure
 
4,459

 

 
(45
)
Confie Seguros Holding II Co., L+525, 1.00% LIBOR Floor, 4/16/2022 (q)
 
3 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
15,862

 
15,753

 
15,867

Covenant Surgical Partners, Inc., L+475, 0.00% LIBOR Floor, 10/4/2024 (q)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
1,869

 
1,865

 
1,869

Covenant Surgical Partners, Inc., L+475, 0.00% LIBOR Floor, 10/4/2024 (q)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
290

 
289

 
290

See accompanying notes to consolidated financial statements.

5



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
Covenant Surgical Partners, Inc., 4.75% Unfunded, 10/4/2018 (q)
 
None
 
Healthcare & Pharmaceuticals
 
271

 

 

CSP Technologies North America, LLC, L+525, 1.00% LIBOR Floor, 1/29/2022 (r)
 
3 Month LIBOR
 
Chemicals, Plastics & Rubber
 
13,483

 
13,263

 
13,517

David's Bridal, Inc., L+400, 1.25% LIBOR Floor, 10/11/2019 (q)
 
3 Month LIBOR
 
Retail
 
3,406

 
3,035

 
2,923

Dayton Superior Corp., L+800, 1.00% LIBOR Floor, 11/15/2021 (q)
 
3 Month LIBOR
 
Construction & Building
 
6,252

 
5,680

 
5,814

DBRS, Inc., L+525, 1.00% LIBOR Floor, 3/4/2022 (i)(q)
 
3 Month LIBOR
 
Services: Business
 
5,892

 
5,714

 
5,943

Deluxe Entertainment Services Group Inc., L+550, 1.00% LIBOR Floor, 2/28/2020 (q)
 
1 Month LIBOR
 
Media: Diversified & Production
 
16,413

 
16,319

 
16,259

DFC Global Facility Borrower II LLC, L+1075, 1.00% LIBOR Floor, 9/27/2022
 
1 Month LIBOR
 
Services: Consumer
 
20,235

 
20,100

 
20,235

DFC Global Facility Borrower II LLC, 0.50% Unfunded, 9/27/2019
 
None
 
Services: Consumer
 
9,765

 

 

Discovery DJ Services LLC, L+725, 1.00% LIBOR Floor, 10/25/2022
 
1 Month LIBOR
 
Energy: Oil & Gas
 
6,078

 
5,893

 
5,987

Discovery DJ Services LLC, 0.50% Unfunded, 4/25/2019
 
None
 
Energy: Oil & Gas
 
392

 

 
(6
)
Discovery DJ Services LLC, 0.50% Unfunded, 10/25/2022
 
None
 
Energy: Oil & Gas
 
3,529

 

 
(53
)
Dodge Data & Analytics, LLC / Skyline Data News and Analytics, LLC, L+875, 1.00% LIBOR Floor, 10/31/2019 (p)
 
3 Month LIBOR
 
Construction & Building
 
9,712

 
9,633

 
9,554

DXP Enterprises, Inc., L+550, 1.00% LIBOR Floor, 8/29/2023 (i)(q)
 
1 Month LIBOR
 
Energy: Oil & Gas
 
9,950

 
9,857

 
10,031

EagleTree-Carbide Acquisition Corp., L+475, 1.00% LIBOR Floor, 8/28/2024 (k)(q)
 
3 Month LIBOR
 
Consumer Goods: Durable
 
19,925

 
19,780

 
20,112

Eastman Kodak Company, L+625, 1.00% LIBOR Floor, 9/3/2019 (i)(q)
 
3 Month LIBOR
 
Consumer Goods: Durable
 
1,965

 
1,961

 
1,856

Elemica, Inc., L+800, 1.00% LIBOR Floor, 7/7/2021 (p)(r)
 
1 Month LIBOR
 
High Tech Industries
 
17,194

 
16,880

 
17,022

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

 
(41
)
 
(25
)
Emmis Operating Company, L+700, 1.00% LIBOR Floor, 4/18/2019 (q)
 
1 Month LIBOR
 
Media: Broadcasting & Subscription
 
3,384

 
3,229

 
3,300

Entertainment Studios P&A LLC, 11.27%, 5/18/2037
 
None
 
Media: Diversified & Production
 
37,500

 
36,956

 
34,514

Entertainment Studios P&A LLC, 5.00%, 5/18/2037 (m)
 
None
 
Media: Diversified & Production
 
3,410

 
3,343

 
6,862

EnTrans International, LLC, L+750, 1.00% LIBOR Floor, 6/4/2020
 
1 Month LIBOR
 
Capital Equipment
 
12,750

 
10,268

 
12,750

Evergreen Skills Lux S.À.R.L., L+475, 1.00% LIBOR Floor, 4/28/2021 (i)(q)
 
1 Month LIBOR
 
High Tech Industries
 
10,236

 
9,648

 
9,908

F+W Media, Inc., L+1000, 1.50% LIBOR Floor, 5/24/2022 (p)(u)(v)(w)
 
1 Month LIBOR
 
Media: Diversified & Production
 
2,816

 
2,747

 
1,359

F+W Media, Inc., L+650, 1.50% LIBOR Floor, 5/24/2022 (v)(w)
 
1Month LIBOR
 
Media: Diversified & Production
 
1,144

 
1,144

 
1,201

Forbes Media LLC, L+675, 1.00% LIBOR Floor, 9/12/2019 (l)(r)
 
1 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
14,660

 
14,449

 
14,659

Foundation Consumer Healthcare, LLC, L+650, 1.00% LIBOR Floor, 11/2/2023 (p)(r)(s)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
45,675

 
45,347

 
45,903

Foundation Consumer Healthcare, LLC, 0.50% Unfunded, 11/2/2023
 
None
 
Healthcare & Pharmaceuticals
 
4,211

 
(32
)
 
21

Frontline Technologies Group Holding LLC, 1.00% Unfunded, 9/18/2019
 
None
 
High Tech Industries
 
540

 

 
(6
)
Harland Clarke Holdings Corp., L+475, 1.00% LIBOR Floor, 11/3/2023 (q)(s)
 
3 Month LIBOR
 
Services: Business
 
14,654

 
14,587

 
14,805

Healogics, Inc., L+425, 1.00% LIBOR Floor, 7/1/2021 (q)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
4,837

 
4,592

 
4,255

Heartland Dental, LLC, L+475, 1.00% LIBOR Floor, 7/31/2023 (q)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
3,990

 
3,972

 
4,004

Infinity Sales Group, LLC, L+1050, 1.00% LIBOR Floor, 11/21/2018 (p)
 
3 Month LIBOR
 
Services: Business
 
7,480

 
7,254

 
7,106

InfoGroup Inc., L+500, 1.00% LIBOR Floor, 4/3/2023 (k)(q)(r)(s)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
16,040

 
16,024

 
15,980

Instant Web, LLC, L+650, 0.00% LIBOR Floor, 12/15/2022 (p)(s)
 
1 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
39,796

 
39,699

 
39,697

Instant Web, LLC, L+650, 0.00% LIBOR Floor, 12/15/2022
 
1 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
649

 
647

 
647

See accompanying notes to consolidated financial statements.

6



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
Instant Web, LLC, 0.50% Unfunded, 12/15/2022
 
None
 
Media: Advertising, Printing & Publishing
 
2,055

 

 
(6
)
International Seaways, Inc., L+550, 1.00% LIBOR Floor, 6/22/2022 (i)(q)
 
1 Month LIBOR
 
Transportation: Cargo
 
9,875

 
9,700

 
9,813

Ipsen International GmbH, L+800, 1.00% LIBOR Floor, 9/30/2019 (i)(l)
 
1 Month LIBOR
 
Capital Equipment
 
1,202

 
1,205

 
1,202

Ipsen, Inc., L+700, 1.00% LIBOR Floor, 9/30/2019 (l)(r)
 
1 Month LIBOR
 
Capital Equipment
 
7,790

 
7,737

 
7,790

Island Medical Management Holdings, LLC, L+550, 1.00% LIBOR Floor, 9/1/2022 (r)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
13,674

 
13,519

 
12,990

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

 
11,089

 
10,969

KLO Intermediate Holdings, LLC, L+775, 1.25% LIBOR Floor, 4/7/2022 (r)
 
1 Month LIBOR
 
Chemicals, Plastics & Rubber
 
7,525

 
7,446

 
7,375

KLO Intermediate Holdings, LLC, L+775, 1.25% LIBOR Floor, 4/7/2022 (r)
 
1 Month LIBOR
 
Chemicals, Plastics & Rubber
 
4,357

 
4,311

 
4,270

KNB Holdings Corp., L+550, 1.00% LIBOR Floor, 4/26/2024 (q)(s)
 
3 Month LIBOR
 
Consumer Goods: Durable
 
15,800

 
15,514

 
15,721

Labvantage Solutions Inc., L+750, 1.00% LIBOR Floor, 12/29/2020 (r)
 
1 Month LIBOR
 
High Tech Industries
 
4,563

 
4,531

 
4,608

Labvantage Solutions Ltd., E+750, 1.00% EURIBOR Floor, 12/29/2020 (i)
 
1 Month EURIBOR
 
High Tech Industries
 
4,237

 
4,731

 
5,274

Lift Brands, Inc., L+800, 1.00% LIBOR Floor, 12/23/2019 (p)
 
1 Month LIBOR
 
Services: Consumer
 
9,097

 
9,032

 
9,097

Logix Holding Company, LLC, L+575, 1.00% LIBOR Floor, 12/22/2024 (q)
 
1 Month LIBOR
 
Telecommunications
 
5,027

 
4,977

 
4,977

Lonestar Prospects, Ltd., L+950, 1.00% LIBOR Floor, 8/1/2021 (w)
 
3 Month LIBOR
 
Energy: Oil & Gas
 
3,745

 
3,684

 
3,670

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

 
5,638

 
5,919

Mayfield Agency Borrower Inc., L+450, 0.00% LIBOR Floor, 2/28/2025 (q)
 
1 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
3,981

 
3,961

 
4,001

MB2 Dental Solutions, LLC, L+475, 1.00% LIBOR Floor, 9/29/2023
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
2,180

 
2,154

 
2,142

Ministry Brands, LLC, L+500, 1.00% LIBOR Floor, 12/2/2022 (p)
 
1 Month LIBOR
 
Services: Business
 
4,935

 
4,768

 
4,934

Ministry Brands, LLC, L+500, 1.00% LIBOR Floor, 12/2/2022 (r)
 
1 Month LIBOR
 
Services: Business
 
3,890

 
3,890

 
3,890

Moss Holding Company, L+675, 1.00% LIBOR Floor, 4/17/2023 (p)(r)
 
3 Month LIBOR
 
Services: Business
 
18,829

 
18,533

 
18,547

Moss Holding Company, 0.75% Unfunded, 5/7/2018
 
None
 
Services: Business
 
1,046

 

 
(16
)
Moss Holding Company, 0.50% Unfunded, 4/17/2023
 
None
 
Services: Business
 
2,232

 

 
(33
)
MRO Holdings, Inc., L+525, 1.00% LIBOR Floor, 10/25/2023 (q)
 
3 Month LIBOR
 
Aerospace & Defense
 
4,479

 
4,437

 
4,535

Murray Energy Corp., L+725, 1.00% LIBOR Floor, 4/16/2020 (q)
 
3 Month LIBOR
 
Metals & Mining
 
3,619

 
3,544

 
3,076

Navex Global, Inc., L+425, 1.00% LIBOR Floor, 11/19/2021 (q)(s)
 
1 Month LIBOR
 
High Tech Industries
 
17,864

 
17,909

 
17,942

NewsCycle Solutions, Inc., L+700, 1.00% LIBOR Floor, 12/29/2022 (s)
 
1 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
20,000

 
19,804

 
19,800

NM GRC Holdco, LLC, L+550, 1.00% LIBOR Floor, 2/9/2024
 
3 Month LIBOR
 
High Tech Industries
 
8,934

 
8,687

 
8,688

NM GRC Holdco, LLC, 1.00% Unfunded, 2/9/2020
 
None
 
High Tech Industries
 
2,654

 

 
(73
)
Ocean Bidco, Inc., L+500, 1.00% LIBOR Floor, 3/21/2025 (k)(q)
 
3 Month LIBOR
 
High Tech Industries
 
4,589

 
4,566

 
4,609

Opal Acquisition, Inc., L+400, 1.00% LIBOR Floor, 11/27/2020 (q)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
10,182

 
9,663

 
9,749

Orbcomm Inc., 8.00%, 4/1/2024 (p)
 
None
 
Telecommunications
 
9,237

 
9,237

 
9,641

P.F. Chang's China Bistro, Inc., L+500, 1.00% LIBOR Floor, 9/1/2022 (q)
 
3 Month LIBOR
 
Beverage, Food & Tobacco
 
9,950

 
9,677

 
9,452

Paris Presents Inc., L+500, 1.00% LIBOR Floor, 12/31/2020 (r)
 
1 Month LIBOR
 
Consumer Goods: Durable
 
11,910

 
11,849

 
11,969

Pathway Partners Vet Management Company LLC, L+425, 0.00% LIBOR Floor, 10/10/2024
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
563

 
563

 
565

Pathway Partners Vet Management Company LLC, 1.00% Unfunded, 10/10/2019
 
None
 
Healthcare & Pharmaceuticals
 
343

 

 
1

See accompanying notes to consolidated financial statements.

7



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
Patriot Container Corp., L+350, 1.00% LIBOR Floor, 3/20/2025 (q)
 
1 Month LIBOR
 
Capital Equipment
 
5,000

 
4,975

 
5,031

PDI TA Holdings, Inc., L+475, 1.00% LIBOR Floor, 8/25/2023
 
3 Month LIBOR
 
High Tech Industries
 
1,280

 
1,280

 
1,267

Petroflow Energy Corp., L+800, 1.00% LIBOR Floor, 6/29/2019 (p)(u)(v)(w)
 
1 Month LIBOR
 
Energy: Oil & Gas
 
3,488

 
3,247

 
3,243

PFS Holding Corp., L+350, 1.00% LIBOR Floor, 1/31/2021 (k)
 
1 Month LIBOR
 
Retail
 
3,162

 
2,332

 
2,166

Photonis Technologies SAS, L+750, 1.00% LIBOR Floor, 9/18/2019 (i)(q)
 
3 Month LIBOR
 
Aerospace & Defense
 
6,397

 
5,742

 
5,662

Phylogeny, LLC / Conversant Biologics, LLC, L+650, 1.00% LIBOR Floor, 3/30/2024
 
6 Month LIBOR
 
Healthcare & Pharmaceuticals
 
6,493

 
6,331

 
6,331

Phylogeny, LLC / Conversant Biologics, LLC, 1.00% Unfunded, 3/30/2020
 
None
 
Healthcare & Pharmaceuticals
 
1,299

 
(19
)
 
(33
)
Plano Molding Company, LLC, L+800, 1.00% LIBOR Floor, 5/12/2021 (p)
 
1 Month LIBOR
 
Consumer Goods: Non-Durable
 
7,934

 
7,855

 
7,210

Project Leopard Holdings, Inc., L+400, 1.00% LIBOR Floor, 7/7/2023 (q)
 
1 Month LIBOR
 
High Tech Industries
 
3,980

 
3,971

 
4,014

Radio One, Inc., L+400, 1.00% LIBOR Floor, 4/18/2023 (q)
 
1 Month LIBOR
 
Media: Broadcasting & Subscription
 
2,958

 
2,932

 
2,941

Reddy Ice Corp., L+550, 1.25% LIBOR Floor, 5/1/2019 (q)
 
2 Month LIBOR
 
Beverage, Food & Tobacco
 
10,876

 
10,900

 
10,822

Rhino Energy LLC, L+1000, 1.00% LIBOR Floor, 12/27/2020 (s)
 
1 Month LIBOR
 
Metals & Mining
 
8,725

 
8,182

 
8,376

Rimini Street, Inc., 15.00%, 6/24/2020 (p)(w)
 
None
 
High Tech Industries
 
19,756

 
19,564

 
20,984

Sequoia Healthcare Management, LLC, 16.00%, 7/17/2019 (p)(w)
 
None
 
Healthcare & Pharmaceuticals
 
5,223

 
5,179

 
5,223

SG Acquisition, Inc., L+500, 1.00% LIBOR Floor, 3/29/2024 (q)
 
3 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
3,853

 
3,821

 
3,868

Shift PPC LLC, L+600, 1.00% LIBOR Floor, 12/22/2021 (r)
 
6 Month LIBOR
 
High Tech Industries
 
4,816

 
4,715

 
4,816

SI Organization, Inc., L+475, 1.00% LIBOR Floor, 11/23/2019 (q)
 
1 Month LIBOR
 
Services: Business
 
7,652

 
7,723

 
7,678

Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 1/21/2020 (p)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
12,696

 
12,644

 
12,633

Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 7/21/2020 (w)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
440

 
438

 
437

Sprint Industrial Holdings, LLC, L+575, 1.25% LIBOR Floor, 5/14/2019 (p)
 
3 Month LIBOR
 
Energy: Oil & Gas
 
8,003

 
7,733

 
7,552

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

 
3,830

 
3,934

Studio Movie Grill Holdings, LLC, L+725, 1.00% LIBOR Floor, 9/30/2020 (f)(p)
 
3 Month LIBOR
 
Hotel, Gaming & Leisure
 
17,378

 
17,282

 
17,378

Teladoc, Inc., 0.50% Unfunded, 7/14/2020 (i)
 
None
 
High Tech Industries
 
1,250

 
(38
)
 

Telestream Holdings Corp., L+643, 1.00% LIBOR Floor, 3/24/2022 (l)(p)
 
3 Month LIBOR
 
High Tech Industries
 
8,618

 
8,448

 
8,360

Tenere Inc., L+1000, 1.00% LIBOR Floor, 12/23/2021 (p)(r)
 
3 Month LIBOR
 
Capital Equipment
 
31,680

 
31,331

 
30,888

Tensar Corp., L+475, 1.00% LIBOR Floor, 7/9/2021 (q)
 
3 Month LIBOR
 
Chemicals, Plastics & Rubber
 
13,236

 
12,523

 
12,988

The Pasha Group, L+750, 1.00% LIBOR Floor, 1/26/2023 (r)
 
1 Month LIBOR
 
Transportation: Cargo
 
7,769

 
7,539

 
7,847

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

 
14,941

 
15,675

U.S. Renal Care, Inc., L+425, 1.00% LIBOR Floor, 12/30/2022 (q)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
7,927

 
7,756

 
7,966

Vero Parent, Inc., L+500, 1.00% LIBOR Floor, 8/16/2024 (q)(s)
 
3 Month LIBOR
 
High Tech Industries
 
14,925

 
14,786

 
14,981

Vince, LLC, L+700, 1.00% LIBOR Floor, 11/27/2019 (i)(q)
 
3 Month LIBOR
 
Retail
 
826

 
800

 
756

Visual Edge Technology, Inc., L+575, 1.00% LIBOR Floor, 8/31/2022
 
1 Month LIBOR
 
Services: Business
 
1,694

 
1,675

 
1,685

Visual Edge Technology, Inc., 0.75% Unfunded, 2/28/2019
 
None
 
Services: Business
 
65

 

 

VLS Recovery Services, LLC, L+600, 1.00% LIBOR Floor, 10/17/2023
 
6 Month LIBOR
 
Services: Business
 
159

 
100

 
157

VLS Recovery Services, LLC, 1.00% Unfunded, 10/17/2019
 
None
 
Services: Business
 
949

 

 
(12
)
See accompanying notes to consolidated financial statements.

8



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
WD Wolverine Holdings, LLC, L+550, 1.00% LIBOR Floor, 8/16/2022 (q)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
14,138

 
13,865

 
13,961

Total Senior Secured First Lien Debt
 
 
 
 
 
 
 
1,153,204

 
1,160,746

Senior Secured Second Lien Debt - 33.4%
 
 
 
 
 
 
 
 
 
 
1A Smart Start LLC, L+825, 1.00% LIBOR Floor, 8/21/2022 (p)
 
1 Month LIBOR
 
High Tech Industries
 
17,800

 
17,444

 
17,444

ABG Intermediate Holdings 2 LLC, L+775, 1.00% LIBOR Floor, 9/29/2025 (p)
 
3 Month LIBOR
 
Retail
 
6,475

 
6,431

 
6,580

Access CIG, LLC, L+775, 0.00% LIBOR Floor, 2/27/2026 (r)
 
1 Month LIBOR
 
Services: Business
 
13,490

 
13,357

 
13,642

Access CIG, LLC, 0.00% Unfunded, 8/27/2018
 
None
 
Services: Business
 
2,510

 

 
28

Accruent, LLC, L+875, 1.00% LIBOR Floor, 7/28/2024
 
3 Month LIBOR
 
High Tech Industries
 
1,554

 
1,529

 
1,538

Accruent, LLC, 1.50% Unfunded, 7/28/2018
 
None
 
High Tech Industries
 
111

 

 
(1
)
ALM Media, LLC, L+800, 1.00% LIBOR Floor, 7/30/2021 (p)(r)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
10,344

 
10,250

 
8,706

American Residential Services LLC, L+800, 1.00% LIBOR Floor, 12/31/2022 (p)
 
1 Month LIBOR
 
Construction & Building
 
4,933

 
4,899

 
4,884

Argon Medical Devices Holdings, Inc., L+800, 0.00% LIBOR Floor, 1/23/2026 (p)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
14,400

 
14,328

 
14,580

Avalign Technologies, Inc., L+825, 1.00% LIBOR Floor, 7/15/2022 (s)
 
6 Month LIBOR
 
Healthcare & Pharmaceuticals
 
5,500

 
5,451

 
5,483

Barracuda Networks, Inc., L+725, 1.00% LIBOR Floor, 2/12/2026 (i)
 
2 Month LIBOR
 
High Tech Industries
 
500

 
498

 
511

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

 
9,468

 
9,559

EagleTree-Carbide Acquisition Corp., L+850, 1.00% LIBOR Floor, 8/28/2025 (r)
 
3 Month LIBOR
 
Consumer Goods: Durable
 
20,000

 
19,713

 
20,300

Elements Behavioral Health, Inc., L+1275, 1.00% LIBOR Floor, 2/11/2020 (u)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
6,501

 
6,058

 

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

 
2,982

 
2,940

Evergreen Skills Lux S.À.R.L., L+825, 1.00% LIBOR Floor, 4/28/2022 (i)(p)
 
1 Month LIBOR
 
High Tech Industries
 
9,999

 
7,362

 
8,799

Flexera Software LLC, L+725, 1.00% LIBOR Floor, 2/26/2026 (r)
 
1 Month LIBOR
 
High Tech Industries
 
3,462

 
3,445

 
3,500

Global Tel*Link Corp., L+825, 1.25% LIBOR Floor, 11/23/2020 (r)
 
3 Month LIBOR
 
Telecommunications
 
11,500

 
11,484

 
11,507

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

 
4,019

 
4,040

LSCS Holdings, Inc., L+825, 0.00% LIBOR Floor, 3/16/2026 (p)
 
3 Month LIBOR
 
Services: Business
 
12,273

 
11,997

 
12,211

LSCS Holdings, Inc., 1.00% Unfunded, 9/16/2018 (p)
 
None
 
Services: Business
 
2,727

 
(61
)
 
(14
)
Mayfield Agency Borrower Inc., L+850, 0.00% LIBOR Floor, 3/2/2026 (p)(r)(s)
 
1 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
20,000

 
19,704

 
19,988

Medical Solutions Holdings, Inc., L+825, 1.00% LIBOR Floor, 6/16/2025 (p)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
10,000

 
9,860

 
10,050

Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023 (p)
 
1 Month LIBOR
 
Services: Business
 
5,488

 
5,396

 
5,488

Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023
 
1 Month LIBOR
 
Services: Business
 
2,546

 
2,546

 
2,546

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

 
7,930

 
9,045

Onex Carestream Finance LP, L+850, 1.00% LIBOR Floor, 12/7/2019 (r)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
10,557

 
9,847

 
10,539

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

 
12,147

 
11,605

Paris Presents Inc., L+875, 1.00% LIBOR Floor, 12/31/2021 (p)
 
1 Month LIBOR
 
Consumer Goods: Durable
 
7,000

 
6,958

 
7,088

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

 
13,391

 
12,960

PDI TA Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/25/2024
 
6 Month LIBOR
 
High Tech Industries
 
550

 
550

 
545

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

 
3,459

 
3,487

See accompanying notes to consolidated financial statements.

9



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023 (p)
 
2 Month LIBOR
 
Chemicals, Plastics & Rubber
 
15,000

 
14,712

 
14,738

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

 
4,711

 
2,399

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

 
2,903

 
2,895

PT Intermediate Holdings III, LLC, L+800, 1.00% LIBOR Floor, 12/8/2025 (r)
 
3 Month LIBOR
 
Services: Business
 
9,375

 
9,284

 
9,516

Securus Technologies Holdings, Inc., L+825, 1.00% LIBOR Floor, 11/1/2025 (r)
 
1 Month LIBOR
 
Telecommunications
 
2,942

 
2,914

 
2,982

STG-Fairway Acquisitions, Inc., L+925, 1.00% LIBOR Floor, 6/30/2023 (p)(r)
 
3 Month LIBOR
 
Services: Business
 
10,000

 
9,887

 
9,600

TexOak Petro Holdings LLC, 8.00%, 12/29/2019 (u)(v)(w)
 
None
 
Energy: Oil & Gas
 
7,389

 
2,592

 

TMK Hawk Parent, Corp., L+800, 1.00% LIBOR Floor, 8/28/2025 (p)
 
1 Month LIBOR
 
Services: Business
 
13,393

 
13,074

 
13,192

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

 
5,953

 
6,008

U.S. Renal Care, Inc., L+800, 1.00% LIBOR Floor, 12/29/2023 (p)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
5,000

 
4,922

 
5,025

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

 
15,890

 
16,100

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

 
12,600

 
11,990

Zest Acquisition Corp., L+750, 1.00% LIBOR Floor, 3/13/2026 (k)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
15,000

 
14,850

 
15,038

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

 
4,937

 
5,000

Total Senior Secured Second Lien Debt
 

 

 

 
361,671

 
354,061

Collateralized Securities and Structured Products - Debt - 2.1%
 

 

 

 

 

Deutsche Bank AG Frankfurt CRAFT 2015-2 Class Credit Linked Note, L+925, 1/16/2022 (i)
 
3 Month LIBOR
 
Diversified Financials
 
14,903

 
14,903

 
14,880

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

 
7,149

 
7,500

Total Collateralized Securities and Structured Products - Debt
 

 

 

 
22,052

 
22,380

Collateralized Securities and Structured Products - Equity - 1.8%
 

 

 

 

 

Anchorage Capital CLO 2012-1, Ltd. Subordinated Notes, 4.61% Estimated Yield, 1/13/2025 (i)
 
(g)
 
Diversified Financials
 
4,000

 
2,461

 
2,582

APIDOS CLO XVI Subordinated Notes, 4.79% Estimated Yield, 1/19/2025 (i)
 
(g)
 
Diversified Financials
 
9,000

 
3,995

 
3,166

CENT CLO 19 Ltd. Subordinated Notes, 4.57% Estimated Yield, 10/29/2025 (i)
 
(g)
 
Diversified Financials
 
2,000

 
1,283

 
1,085

Galaxy XV CLO Ltd. Class A Subordinated Notes, 12.35% Estimated Yield, 4/15/2025 (i)
 
(g)
 
Diversified Financials
 
4,000

 
2,278

 
2,076

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

 
9,658

 
9,822

Total Collateralized Securities and Structured Products - Equity
 

 

 

 
19,675

 
18,731

Equity - 2.3%
 
 
 
 
 
 
 
 
 
 
Ascent Resources - Marcellus, LLC, Common Shares (t)
 

 
Energy: Oil & Gas
 
511,255 Units

 
1,643

 
1,642

Ascent Resources - Marcellus, LLC, Warrants (t)
 
 
 
Energy: Oil & Gas
 
132,367 Units

 
13

 
13

Avaya Holdings Corp., Common Stock (j)(q)(t)
 
 
 
Telecommunications
 
321,260 Units

 
5,285

 
7,196

Conisus Holdings, Inc., Common Stock (t)(v)
 
 
 
Healthcare & Pharmaceuticals
 
4,914,556 Units

 
200

 
220

Conisus Holdings, Inc., Series B Preferred Stock, 12.00% Dividend (u)(v)(w)
 
 
 
Healthcare & Pharmaceuticals
 
12,677,833 Units

 
9,200

 
9,100

F+W Media, Inc., Common Stock (t)(v)
 
 
 
Media: Diversified & Production
 
31,211 Units

 

 

Mooregate ITC Acquisition, LLC, Class A Units (t)
 
 
 
High Tech Industries
 
500 Units

 
563

 
313

NS NWN Acquisition, LLC, Voting Units (t)
 
 
 
High Tech Industries
 
404 Units

 
393

 
450

NSG Co-Invest (Bermuda) LP, Partnership Interests (i)(t)
 
 
 
Consumer Goods: Durable
 
1,575 Units

 
1,000

 
775

Rhino Energy LLC, Warrants (t)
 
 
 
Metals & Mining
 
170,972 Units

 
280

 
207

See accompanying notes to consolidated financial statements.

10



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
March 31, 2018
(in thousands)
Portfolio Company(a)
 
 
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
Spinal USA, Inc. / Precision Medical Inc., Warrants (t)
 
 
 
Healthcare & Pharmaceuticals
 
9,317,237 Units
 
4,736

 
4,566

Tenere Inc., Warrant (t)
 
 
 
High Tech Industries
 
N/A
 
161

 
21

TexOak Petro Holdings LLC, Membership Interests (t)(v)
 
 
 
Energy: Oil & Gas
 
60,000 Units
 

 

Total Equity
 
 
 
 
 
 
 
23,474

 
24,503

Short Term Investments - 17.1%(n)
 
 
 
 
 
 
 
 
 
 
First American Treasury Obligations Fund, Class Z Shares, 1.52% (o)
 
 
 
 
 
 
 
181,095

 
181,095

Total Short Term Investments
 
 
 
 
 
 
 
181,095

 
181,095

TOTAL INVESTMENTS - 166.1%
 
 
 
 
 
 
 
$
1,761,171

 
1,761,516

LIABILITIES IN EXCESS OF OTHER ASSETS - (66.1%)
 
 
 
 
 
 
 
 
 
(700,963
)
NET ASSETS - 100%
 
 
 
 
 
 
 
 
 
$
1,060,553

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 i. below. Unless specifically identified in note w. 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 1.88%, 2.00%, 2.31%, and 2.45%, respectively, as of March 31, 2018.  The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of March 31, 2018, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to March 31, 2018. The 1 and 3 month Euro Interbank Offered Rate, or EURIBOR, rates were (0.41%) and (0.37%), respectively, as of March 31, 2018.
c.
Fair value determined in good faith by the Company’s board of directors (see Note 9) using significant unobservable inputs unless otherwise noted.
d.
Represents amortized cost for debt securities and cost for equity investments.
e.
Denominated in U.S. dollars unless otherwise noted.
f.
As of March 31, 2018, the Company was committed, upon the satisfaction of certain conditions, to fund additional amounts in connection with this investment. See Note 11 for additional information.
g.