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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-32.1 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, - CION Investment Corpcionex-321.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 September 30, 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 every Interactive Data File required to be submitted 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 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]
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 November 8, 2018 was 113,376,829.




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)
 
 
September 30, 2018
 
December 31, 2017
 
 
(unaudited)
 
 
Assets
Investments, at fair value:
 
 
 
 
     Non-controlled, non-affiliated investments (amortized cost of $1,873,894 and $1,692,978, respectively)
 
$
1,872,228

 
$
1,698,662

     Non-controlled, affiliated investments (amortized cost of $47,338 and $19,422, respectively)
 
42,148

 
15,533

          Total investments, at fair value (amortized cost of $1,921,232 and $1,712,400, respectively)
 
1,914,376

 
1,714,195

Cash
 
15,537

 
56,354

Due from counterparty
 
2,321

 

Interest receivable on investments
 
14,282

 
12,433

Receivable due on investments sold
 
13,645

 
29,524

Prepaid expenses and other assets
 
2,451

 
3,417

   Total assets
 
$
1,962,612

 
$
1,815,923

Liabilities and Shareholders' Equity
Liabilities
 
 
 
 
Financing arrangements (net of unamortized debt issuance costs of $6,772 and $6,018, respectively)
 
$
892,770

 
$
705,447

Payable for investments purchased
 
35,158

 
36,439

Accounts payable and accrued expenses
 
1,011

 
1,432

Interest payable
 
3,542

 
2,311

Accrued management fees
 
9,164

 
7,821

Accrued subordinated incentive fee on income
 
5,573

 
3,222

Accrued administrative services expense
 
200

 
556

Due to CIG - offering costs
 

 
4

Total liabilities
 
947,418

 
757,232

 
 
 
 
 
Commitments and contingencies (Note 4 and Note 11)
 
 
 
 
 
 
 
 
 
Shareholders' Equity
 
 
 
 
Common stock, $0.001 par value; 500,000,000 shares authorized;
 
 
 
 
112,035,367 and 115,781,751 shares issued and outstanding, respectively
 
112

 
116

Capital in excess of par value
 
1,042,312

 
1,076,131

Undistributed net investment income
 
9,309

 
10,368

Accumulated net realized loss from investments
 
(10,349
)
 
(10,385
)
Accumulated net unrealized (depreciation) appreciation on investments
 
(6,856
)
 
1,795

Accumulated net realized loss from total return swap(1)
 
(19,334
)
 
(19,334
)
Total shareholders' equity
 
1,015,194

 
1,058,691

Total liabilities and shareholders' equity
 
$
1,962,612

 
$
1,815,923

Net asset value per share of common stock at end of period
 
$
9.06

 
$
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
September 30,
 
Nine Months Ended
September 30,
 
 
2018

2017
 
2018
 
2017
 
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
Investment income
 
 
 
 
 
 
 
 
Interest income:
 
 
 
 
 
 
 
 
     Non-controlled, non-affiliated investments
 
$
51,140

 
$
37,212

 
$
130,230

 
$
99,117

     Non-controlled, affiliated investments
 
293

 

 
641

 

          Total interest income
 
51,433

 
37,212

 
130,871

 
99,117

Fee and other income
 
404

 
1,166

 
1,285

 
2,651

Total investment income
 
51,837

 
38,378

 
132,156

 
101,768

Operating expenses
 
 
 
 
 
 
 
 
Management fees
 
9,164

 
7,820

 
25,705

 
21,724

Administrative services expense
 
500

 
433

 
1,492

 
1,204

Subordinated incentive fee on income(1)
 
5,573

 

 
5,573

 

General and administrative(2)
 
1,407

 
1,803

 
4,993

 
5,220

Interest expense
 
12,901

 
6,920

 
32,670

 
15,543

Total operating expenses
 
29,545

 
16,976

 
70,433

 
43,691

Net investment income
 
22,292

 
21,402

 
61,723

 
58,077

Realized and unrealized (losses) gains
 
 
 
 
 
 
 
 
Net realized gain (loss) on:
 
 
 
 
 
 
 
 
     Non-controlled, non-affiliated investments
 
3,103

 
(2,800
)
 

 
(5,142
)
     Non-controlled, affiliated investments
 
2

 

 
39

 

     Total return swap(3)
 

 
67

 

 
(13,789
)
     Foreign currency
 
(12
)
 
12

 
(3
)
 
159

Net realized gains (losses)
 
3,093

 
(2,721
)
 
36

 
(18,772
)
Net change in unrealized (depreciation) appreciation on:
 
 
 
 
 
 
 
 
     Non-controlled, non-affiliated investments
 
(9,620
)
 
1,700

 
(7,349
)
 
11,094

     Non-controlled, affiliated investments
 
(408
)
 

 
(1,302
)
 

     Total return swap(3)
 

 

 

 
15,402

Net change in unrealized (depreciation) appreciation
 
(10,028
)
 
1,700

 
(8,651
)
 
26,496

Net realized and unrealized (losses) gains
 
(6,935
)
 
(1,021
)
 
(8,615
)
 
7,724

Net increase in net assets resulting from operations
 
$
15,357

 
$
20,381

 
$
53,108

 
$
65,801

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

 
$
0.18

 
$
0.46

 
$
0.59

Weighted average shares of common stock outstanding
 
113,490,567

 
112,954,234

 
114,385,478

 
111,504,552

(1)  See Note 4 for a discussion of the methodology employed by the Company in calculating the subordinated incentive fee on income.
(2) See Note 10 for details of the Company's general and administrative expenses.
(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)
 
 
Nine Months Ended
September 30,
 
 
2018
 
2017
 
 
(unaudited)
 
(unaudited)
Changes in net assets from operations:
 
 
 
 
Net investment income
 
$
61,723

 
$
58,077

Net realized gain (loss) on investments
 
39

 
(5,142
)
Net realized (loss) gain on foreign currency
 
(3
)
 
159

Net change in unrealized (depreciation) appreciation on investments
 
(8,651
)
 
11,094

Net realized loss on total return swap(1)
 

 
(13,789
)
Net change in unrealized appreciation on total return swap(1)
 

 
15,402

Net increase in net assets resulting from operations
 
53,108

 
65,801

Changes in net assets from shareholders' distributions:(2)
 
 
 
 
Net investment income
 
(62,782
)
 
(55,191
)
Net realized gain on total return swap
 
 
 
 
Net interest and other income from TRS portfolio
 

 
(3,661
)
Net gain on TRS loan sales(3)
 

 
(2,286
)
Net decrease in net assets from shareholders' distributions
 
(62,782
)
 
(61,138
)
Changes in net assets from capital share transactions:
 
 
 
 
Issuance of common stock, net of issuance costs of $708 and $1,713, respectively
 
18,461

 
43,227

Reinvestment of shareholders' distributions
 
29,251

 
29,701

Repurchase of common stock
 
(81,535
)
 
(30,167
)
Net (decrease) increase in net assets resulting from capital share transactions
 
(33,823
)
 
42,761

 
 
 
 
 
Total (decrease) increase in net assets
 
(43,497
)
 
47,424

Net assets at beginning of period
 
1,058,691

 
999,763

Net assets at end of period
 
$
1,015,194

 
$
1,047,187

 
 
 
 
 
Net asset value per share of common stock at end of period
 
$
9.06

 
$
9.15

Shares of common stock outstanding at end of period
 
112,035,367

 
114,440,741

 
 
 
 
 
Undistributed net investment income at end of period
 
$
9,309

 
$
4,314

(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 nine months ended September 30, 2017, the Company realized losses on TRS loan sales of $19,736, 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)
 
 
Nine Months Ended
September 30,
 
 
2018

2017
 
 
(unaudited)
 
(unaudited)
Operating activities:
 
 
 
 
Net increase in net assets resulting from operations
 
$
53,108

 
$
65,801

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
 
 
 
 
Net accretion of discount on investments
 
(6,857
)
 
(6,799
)
Proceeds from principal repayment of investments
 
535,081

 
403,098

Purchase of investments
 
(1,003,789
)
 
(1,139,000
)
Paid-in-kind interest
 
(1,045
)
 
(1,704
)
Decrease (increase) in short term investments, net
 
106,503

 
(70,312
)
Proceeds from sale of investments
 
161,230

 
218,395

Net realized (gain) loss on investments
 
(39
)
 
5,142

Net unrealized depreciation (appreciation) on investments
 
8,651

 
(11,094
)
Net unrealized appreciation on total return swap(1)
 

 
(15,402
)
Amortization of debt issuance costs
 
2,363

 
1,272

(Increase) decrease in due from counterparty
 
(2,321
)
 
139,715

(Increase) decrease in interest receivable on investments
 
(1,765
)
 
(2,254
)
(Increase) decrease in receivable due on investments sold
 
15,879

 
(12,147
)
(Increase) decrease in receivable due on total return swap(1)
 

 
4,187

(Increase) decrease in prepaid expenses and other assets
 
(1,608
)
 
(812
)
Increase (decrease) in payable for investments purchased
 
(1,281
)
 
39,869

Increase (decrease) in accounts payable and accrued expenses
 
(421
)
 
(209
)
Increase (decrease) in interest payable
 
1,231

 
1,113

Increase (decrease) in accrued management fees
 
1,343

 
2,040

Increase (decrease) in accrued administrative services expense
 
(356
)
 
(599
)
Increase (decrease) in due to CIG - offering costs
 
(4
)
 
(18
)
Increase (decrease) in subordinated incentive fee on income payable
 
2,351

 

Net cash used in operating activities
 
(131,746
)
 
(379,718
)
 
 
 
 
 
Financing activities:
 
 
 
 
Gross proceeds from issuance of common stock
 
19,169

 
44,940

Commissions and dealer manager fees paid
 
(708
)
 
(1,715
)
Repurchase of common stock
 
(81,535
)
 
(30,167
)
Shareholders' distributions paid(2)
 
(33,531
)
 
(31,437
)
Borrowings under financing arrangements(3)
 
213,077

 
406,698

Repayments of financing arrangements(3)
 
(25,000
)
 

Debt issuance costs paid
 
(543
)
 
(3,732
)
Net cash provided by financing activities
 
90,929

 
384,587

Net (decrease) increase in cash and restricted cash
 
(40,817
)
 
4,869

Cash and restricted cash, beginning of period
 
56,354

 
17,046

Cash and restricted cash, end of period
 
$
15,537

 
$
21,915

 
 
 
 
 
Supplemental disclosure of cash flow information:
 
 
 
 
Cash paid for interest
 
$
29,065

 
$
13,075

Supplemental non-cash financing activities:
 
 
 
 
Reinvestment of shareholders' distributions(2)
 
$
29,251

 
$
29,701

(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)
September 30, 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 - 137.5%
 
 
 
 
 
 
 
 
 
 
Academy, Ltd., L+400, 1.00% LIBOR Floor, 7/1/2022(q)
 
1 Month LIBOR
 
Retail
 
$
14,451

 
$
12,023

 
$
11,293

Accommodations Plus Technologies LLC, L+500, 1.00% LIBOR Floor, 5/11/2024
 
3 Month LIBOR
 
Services: Business
 
3,579

 
3,512

 
3,525

Adams Publishing Group, LLC, L+750, 1.00% LIBOR Floor, 7/2/2023(p)(s)
 
2 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
17,483

 
17,297

 
17,308

Adams Publishing Group, LLC, 0.38% Unfunded, 7/2/2020(p)(s)
 
None
 
Media: Advertising, Printing & Publishing
 
2,069

 

 
(21
)
Advanced Integration Technology LP, L+475, 1.00% LIBOR Floor, 4/3/2023(q)
 
3 Month LIBOR
 
Aerospace & Defense
 
3,940

 
3,969

 
3,945

Aegis Toxicology Sciences Corp., L+550, 1.00% LIBOR Floor, 5/9/2025(k)(q)
 
2 Month LIBOR
 
Healthcare & Pharmaceuticals
 
10,000

 
9,800

 
9,775

AIS Holdco, LLC, L+500, 0.00% LIBOR Floor, 8/15/2025(q)
 
2 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
5,556

 
5,484

 
5,549

Allen Media, LLC, L+650, 1.00% LIBOR Floor, 8/30/2023(p)(r)(s)
 
2 Month LIBOR
 
Media: Diversified & Production
 
80,000

 
78,027

 
78,000

ALM Media, LLC, L+450, 1.00% LIBOR Floor, 7/31/2020(q)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
13,272

 
12,343

 
11,895

American Clinical Solutions LLC, 12.50%, 6/11/2020(u)(w)
 
None
 
Healthcare & Pharmaceuticals
 
9,245

 
9,064

 
7,396

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

 
10,300

 
10,708

American Media, Inc., L+800, 1.00% LIBOR Floor, 8/24/2020(p)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
19,634

 
19,572

 
20,026

American Media, Inc., 0.50% Unfunded, 8/24/2020
 
None
 
Media: Advertising, Printing & Publishing
 
1,778

 
(25
)
 
36

American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021(p)(q)(r)(s)
 
2 Month LIBOR
 
Telecommunications
 
20,445

 
18,951

 
19,832

Analogic Corp., L+600, 1.00% LIBOR Floor, 6/21/2024(s)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
30,000

 
29,428

 
29,700

AP Exhaust Acquisition, LLC, L+500, 1.00% LIBOR Floor, 5/10/2024(k)(q)(r)
 
2 Month LIBOR
 
Automotive
 
10,570

 
9,964

 
9,632

APCO Holdings, LLC, L+550, 0.00% LIBOR Floor, 6/9/2025(q)
 
1 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
11,577

 
11,466

 
11,679

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

 
712

 
718

Associated Asphalt Partners, LLC, L+525, 1.00% LIBOR Floor, 4/5/2024(q)
 
1 Month LIBOR
 
Construction & Building
 
10,864

 
10,690

 
10,898

Avetta, LLC, L+525, 1.00% LIBOR Floor, 4/10/2024
 
1 Month LIBOR
 
High Tech Industries
 
249

 
245

 
247

Cadence Aerospace, LLC, L+650, 1.00% LIBOR Floor, 11/14/2023(r)(s)
 
2 Month LIBOR
 
Aerospace & Defense
 
26,025

 
25,790

 
25,765

Canam Construction Inc., L+500, 1.00% LIBOR Floor, 7/1/2024
 
1 Month LIBOR
 
Construction & Building
 
4,987

 
4,975

 
5,037

Caraustar Industries, Inc., L+550, 1.00% LIBOR Floor, 3/14/2022(q)
 
3 Month LIBOR
 
Forest Products & Paper
 
5,535

 
5,586

 
5,588

Cardinal US Holdings, Inc., L+500, 1.00% LIBOR Floor, 7/31/2023(q)
 
2 Month LIBOR
 
Services: Business
 
8,415

 
7,902

 
8,278

CB URS Holdings Corp., L+525, 1.00% LIBOR Floor, 9/1/2024(q)(s)
 
1 Month LIBOR
 
Transportation: Cargo
 
14,550

 
14,481

 
14,705

Central Security Group, Inc., L+563, 1.00% LIBOR Floor, 10/6/2021(q)(s)
 
1 Month LIBOR
 
Services: Consumer
 
24,724

 
24,749

 
24,879

Charming Charlie LLC, L+1000, 1.00% LIBOR Floor, 4/24/2023(u)(v)(w)
 
2 Month LIBOR
 
Retail
 
3,214

 
1,912

 
2,121

Charming Charlie LLC, L+1000, 1.00% LIBOR Floor, 4/24/2023(u)(v)(w)
 
2 Month LIBOR
 
Retail
 
2,652

 
2,618

 
1,790

Charming Charlie LLC, 20.00%, 5/15/2019(v)
 
None
 
Retail
 
157

 
157

 
157

Charming Charlie LLC, 2.50% Unfunded, 5/15/2019(v)
 
None
 
Retail
 
1,938

 

 

CHC Solutions Inc., 12.00%, 7/20/2023
 
None
 
Healthcare & Pharmaceuticals
 
7,000

 
7,000

 
7,000

CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021(r)(s)
 
1 Month LIBOR
 
Hotel, Gaming & Leisure
 
22,166

 
21,991

 
21,944

CircusTrix Holdings, LLC, 1.00% Unfunded, 12/27/2019
 
None
 
Hotel, Gaming & Leisure
 
2,675

 

 
(27
)
Confie Seguros Holding II Co., L+525, 1.00% LIBOR Floor, 4/16/2022(q)
 
1 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
15,782

 
15,687

 
15,446

See accompanying notes to consolidated financial statements.

5



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
September 30, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 3/31/2023(k)(s)
 
3 Month LIBOR
 
Beverage, Food & Tobacco
 
10,000

 
9,850

 
9,800

Covenant Surgical Partners, Inc., L+450, 0.00% LIBOR Floor, 10/4/2024(q)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
2,420

 
2,414

 
2,432

Covenant Surgical Partners, Inc., 4.50% Unfunded, 10/4/2018
 
None
 
Healthcare & Pharmaceuticals
 
1

 

 

Datix Bidco Ltd., L+450, 0.00% LIBOR Floor, 4/28/2025(i)
 
6 Month LIBOR
 
High Tech Industries
 
250

 
245

 
246

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

 
3,149

 
3,033

Dayton Superior Corp., L+1400, 1.00% LIBOR Floor, 11/15/2021(q)(w)
 
3 Month LIBOR
 
Construction & Building
 
6,315

 
5,811

 
5,526

DBRS, Inc., L+525, 1.00% LIBOR Floor, 3/4/2022(i)(q)
 
2 Month LIBOR
 
Services: Business
 
5,862

 
5,705

 
5,884

Deluxe Entertainment Services Group Inc., L+550, 1.00% LIBOR Floor, 2/28/2020(q)
 
2 Month LIBOR
 
Media: Diversified & Production
 
16,175

 
16,106

 
14,881

DFC Global Facility Borrower II LLC, L+1075, 1.00% LIBOR Floor, 9/27/2022
 
1 Month LIBOR
 
Services: Consumer
 
24,420

 
24,300

 
24,420

DFC Global Facility Borrower II LLC, 0.50% Unfunded, 9/27/2019
 
None
 
Services: Consumer
 
5,580

 

 

DMT Solutions Global Corp., L+700, 0.00% LIBOR Floor, 7/2/2024(q)(s)
 
6 Month LIBOR
 
Services: Business
 
19,750

 
19,180

 
19,552

DXP Enterprises, Inc., L+475, 1.00% LIBOR Floor, 8/29/2023(i)(q)
 
1 Month LIBOR
 
Energy: Oil & Gas
 
9,900

 
9,813

 
9,993

Eagle Family Foods Group LLC, L+650, 1.00% LIBOR Floor, 6/14/2024(s)
 
3 Month LIBOR
 
Beverage, Food & Tobacco
 
14,963

 
14,643

 
14,626

EagleTree-Carbide Acquisition Corp., L+475, 1.00% LIBOR Floor, 8/28/2024(q)
 
3 Month LIBOR
 
Consumer Goods: Durable
 
19,850

 
19,714

 
19,850

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

 
1,962

 
1,886

Elemica, Inc., L+700, 1.00% LIBOR Floor, 7/7/2021(p)(r)
 
1 Month LIBOR
 
High Tech Industries
 
17,106

 
16,833

 
17,021

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

 
(35
)
 
(13
)
Emmis Operating Company, L+700, 1.00% LIBOR Floor, 4/18/2019(q)
 
1 Month LIBOR
 
Media: Broadcasting & Subscription
 
1,364

 
1,319

 
1,356

Entertainment Studios P&A LLC, 11.47%, 5/18/2037(m)
 
None
 
Media: Diversified & Production
 
18,187

 
18,023

 
17,824

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

 

 
1,152

EnTrans International, LLC, L+750, 1.00% LIBOR Floor, 6/4/2020(r)
 
1 Month LIBOR
 
Capital Equipment
 
11,906

 
10,038

 
11,906

ES Chappaquiddick LLC, 10.00%, 5/18/2022
 
None
 
Media: Diversified & Production
 
1,462

 
1,462

 
1,557

Evergreen Skills Lux S.À.R.L., L+475, 1.00% LIBOR Floor, 4/28/2021(i)(q)
 
1 Month LIBOR
 
High Tech Industries
 
10,210

 
9,710

 
9,751

F+W Media, Inc., L+650, 1.50% LIBOR Floor, 5/24/2022(v)(w)
 
1 Month LIBOR
 
Media: Diversified & Production
 
1,092

 
1,092

 
1,147

F+W Media, Inc., L+1000, 1.50% LIBOR Floor, 5/24/2022(p)(u)(v)(w)
 
1 Month LIBOR
 
Media: Diversified & Production
 
2,992

 
2,755

 
651

Flavors Holdings Inc., L+575, 1.00% LIBOR Floor, 4/3/2020(k)(p)
 
3 Month LIBOR
 
Consumer Goods: Non-Durable
 
3,000

 
2,835

 
2,850

Foundation Consumer Healthcare, LLC, L+650, 1.00% LIBOR Floor, 11/2/2023(p)(r)(s)
 
2 Month LIBOR
 
Healthcare & Pharmaceuticals
 
45,446

 
45,143

 
45,446

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

 
(32
)
 

Frontline Technologies Group Holding LLC, 1.00% Unfunded, 9/18/2019
 
None
 
High Tech Industries
 
328

 

 
(4
)
Genesis Healthcare, Inc., L+600, 0.50% LIBOR Floor, 3/6/2023(i)(p)(s)
 
2 Month LIBOR
 
Healthcare & Pharmaceuticals
 
35,000

 
34,685

 
34,650

Harland Clarke Holdings Corp., L+475, 1.00% LIBOR Floor, 11/3/2023(q)(s)
 
3 Month LIBOR
 
Services: Business
 
14,233

 
14,171

 
13,681

Healogics, Inc., L+425, 1.00% LIBOR Floor, 7/1/2021(q)
 
2 Month LIBOR
 
Healthcare & Pharmaceuticals
 
4,812

 
4,603

 
4,535

Homer City Generation, L.P., L+1100, 1.00% LIBOR Floor, 4/5/2023(k)(p)
 
1 Month LIBOR
 
Energy: Oil & Gas
 
6,566

 
6,258

 
6,353

Hummel Station LLC, L+600, 1.00% LIBOR Floor, 10/27/2022(q)
 
1 Month LIBOR
 
Energy: Oil & Gas
 
9,975

 
9,550

 
9,651

Infinity Sales Group, LLC, L+1050, 1.00% LIBOR Floor, 11/21/2018(p)
 
3 Month LIBOR
 
Services: Business
 
7,873

 
7,822

 
7,873

See accompanying notes to consolidated financial statements.

6



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
September 30, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
InfoGroup Inc., L+500, 1.00% LIBOR Floor, 4/3/2023(q)(r)(s)
 
3 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
15,959

 
15,944

 
15,949

Instant Web, LLC, L+650, 0.00% LIBOR Floor, 12/15/2022(p)(r)(s)
 
1 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
39,341

 
39,254

 
39,341

Instant Web, LLC, 0.50% Unfunded, 12/15/2022
 
None
 
Media: Advertising, Printing & Publishing
 
2,704

 

 

Intermedia Holdings, Inc., L+600, 1.00% LIBOR Floor, 7/21/2025(q)
 
3 Month LIBOR
 
High Tech Industries
 
12,500

 
12,378

 
12,562

International Seaways, Inc., L+600, 1.00% LIBOR Floor, 6/22/2022(i)(q)
 
1 Month LIBOR
 
Transportation: Cargo
 
9,750

 
9,594

 
9,792

Isagenix International, LLC, L+575, 1.00% LIBOR Floor, 6/14/2025(q)
 
3 Month LIBOR
 
Beverage, Food & Tobacco
 
14,813

 
14,671

 
14,850

Island Medical Management Holdings, LLC, L+650, 1.00% LIBOR Floor, 9/1/2022(r)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
11,987

 
11,861

 
11,148

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

 
11,108

 
10,912

Jab Wireless, Inc., L+800, 0.00% LIBOR Floor, 5/2/2023(s)
 
1 Month LIBOR
 
Telecommunications
 
19,900

 
19,900

 
19,900

Jackson Hewitt Tax Service Inc., L+625, 0.00% LIBOR Floor, 5/30/2023(s)
 
1 Month LIBOR
 
Services: Consumer
 
18,000

 
18,000

 
18,000

KLO Intermediate Holdings, LLC, L+775, 1.50% LIBOR Floor, 4/7/2022(r)
 
1 Month LIBOR
 
Chemicals, Plastics & Rubber
 
7,429

 
7,360

 
7,058

KLO Intermediate Holdings, LLC, L+775, 1.50% LIBOR Floor, 4/7/2022(r)
 
1 Month LIBOR
 
Chemicals, Plastics & Rubber
 
4,301

 
4,261

 
4,086

KNB Holdings Corp., L+550, 1.00% LIBOR Floor, 4/26/2024(q)(s)
 
6 Month LIBOR
 
Consumer Goods: Durable
 
15,600

 
15,337

 
15,795

Labvantage Solutions Inc., L+750, 1.00% LIBOR Floor, 12/29/2020(r)
 
1 Month LIBOR
 
High Tech Industries
 
4,140

 
4,115

 
4,099

Labvantage Solutions Ltd., E+750, 1.00% EURIBOR Floor, 12/29/2020(i)
 
2 Month EURIBOR
 
High Tech Industries
 
4,122

 
4,607

 
4,736

Lannett Company, Inc., L+538, 1.00% LIBOR Floor, 11/25/2022(i)(q)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
7,080

 
6,975

 
6,230

LD Intermediate Holdings, Inc., L+588, 1.00% LIBOR Floor, 12/9/2022(k)(q)
 
1 Month LIBOR
 
High Tech Industries
 
2,000

 
1,895

 
1,940

Lift Brands, Inc., L+700, 1.00% LIBOR Floor, 4/16/2023(p)(r)(s)
 
3 Month LIBOR
 
Services: Consumer
 
44,775

 
43,872

 
43,991

Lift Brands, Inc., 1.00% Unfunded, 4/16/2023
 
None
 
Services: Consumer
 
5,000

 

 
(88
)
Logix Holding Company, LLC, L+575, 1.00% LIBOR Floor, 12/22/2024(q)
 
1 Month LIBOR
 
Telecommunications
 
5,001

 
4,954

 
5,038

Longview Power, LLC, L+600, 1.00% LIBOR Floor, 4/13/2021(p)(r)
 
3 Month LIBOR
 
Energy: Oil & Gas
 
14,961

 
12,919

 
13,072

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

 
5,696

 
5,911

Mayfield Agency Borrower Inc., L+450, 0.00% LIBOR Floor, 2/28/2025(q)
 
1 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
3,971

 
3,952

 
3,971

Ministry Brands, LLC, L+400, 1.00% LIBOR Floor, 12/2/2022(r)
 
1 Month LIBOR
 
Services: Business
 
11,332

 
11,273

 
11,332

Ministry Brands, LLC, L+100, 1.00% LIBOR Floor Unfunded, 10/18/2020
 
3 Month LIBOR
 
Services: Business
 
3,615

 

 

Moss Holding Company, L+675, 1.00% LIBOR Floor, 4/17/2023(p)(r)
 
3 Month LIBOR
 
Services: Business
 
18,687

 
18,412

 
18,501

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

 

 
(22
)
Moxie Patriot LLC, L+575, 1.00% LIBOR Floor, 12/19/2020(k)(q)
 
3 Month LIBOR
 
Energy: Oil & Gas
 
9,986

 
9,969

 
9,949

MRO Holdings, Inc., L+525, 1.00% LIBOR Floor, 10/25/2023(q)
 
3 Month LIBOR
 
Aerospace & Defense
 
4,456

 
4,417

 
4,495

MRP Generation Holdings, LLC, L+700, 1.00% LIBOR Floor, 10/18/2022(q)
 
3 Month LIBOR
 
Energy: Oil & Gas
 
2,221

 
2,185

 
2,176

Murray Energy Corp., L+725, 1.00% LIBOR Floor, 10/17/2022(q)
 
1 Month LIBOR
 
Metals & Mining
 
3,601

 
3,544

 
3,307

NewsCycle Solutions, Inc., L+700, 1.00% LIBOR Floor, 12/29/2022(r)(s)
 
1 Month LIBOR
 
Media: Advertising, Printing & Publishing
 
21,155

 
20,957

 
20,838

Ocean Bidco, Inc., L+500, 1.00% LIBOR Floor, 3/21/2025(q)
 
3 Month LIBOR
 
High Tech Industries
 
4,520

 
4,499

 
4,537

One Call Corp., L+400, 1.00% LIBOR Floor, 11/27/2022(q)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
8,032

 
7,583

 
7,641

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

 
9,237

 
9,814

P.F. Chang's China Bistro, Inc., L+500, 1.00% LIBOR Floor, 9/1/2022(q)
 
6 Month LIBOR
 
Beverage, Food & Tobacco
 
14,875

 
14,565

 
14,870

See accompanying notes to consolidated financial statements.

7



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
September 30, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
Pathway Partners Vet Management Company LLC, L+425, 0.00% LIBOR Floor, 10/10/2024
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
816

 
816

 
818

PDI TA Holdings, Inc., L+475, 1.00% LIBOR Floor, 8/25/2023
 
3 Month LIBOR
 
High Tech Industries
 
3,614

 
3,604

 
3,596

Petroflow Energy Corp., L+800, 1.00% LIBOR Floor, 6/29/2019(p)(u)(v)(w)
 
1 Month LIBOR
 
Energy: Oil & Gas
 
3,310

 
3,000

 
2,979

PFS Holding Corp., L+350, 1.00% LIBOR Floor, 1/31/2021
 
1 Month LIBOR
 
Retail
 
3,138

 
2,430

 
1,835

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

 
5,949

 
6,005

Plano Molding Company, LLC, L+750, 1.00% LIBOR Floor, 5/12/2021(p)
 
1 Month LIBOR
 
Consumer Goods: Non-Durable
 
6,086

 
6,031

 
5,615

Polymer Additives, Inc., L+600, 0.00% LIBOR Floor, 7/31/2025(p)(q)
 
1 Month LIBOR
 
Chemicals, Plastics & Rubber
 
20,000

 
19,609

 
19,700

Radio One, Inc., L+400, 1.00% LIBOR Floor, 4/18/2023(q)
 
1 Month LIBOR
 
Media: Broadcasting & Subscription
 
2,943

 
2,919

 
2,889

Rhino Energy LLC, L+1000, 1.00% LIBOR Floor, 12/27/2020(s)
 
1 Month LIBOR
 
Metals & Mining
 
8,695

 
8,316

 
8,608

Sequoia Healthcare Management, LLC, L+850, 1.75% LIBOR Floor, 8/21/2023(p)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
10,000

 
9,901

 
9,900

SG Acquisition, Inc., L+500, 1.00% LIBOR Floor, 3/29/2024(q)
 
3 Month LIBOR
 
Banking, Finance, Insurance & Real Estate
 
3,748

 
3,719

 
3,762

Shift PPC LLC, L+450, 1.00% LIBOR Floor, 12/22/2021(r)
 
1 Month LIBOR
 
High Tech Industries
 
4,564

 
4,480

 
4,564

SIMR, LLC, L+900, 2.00% LIBOR Floor, 9/7/2023(p)(v)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
15,312

 
15,010

 
15,006

SM Wellness Holdings, Inc., L+550, 0.00% LIBOR Floor, 8/1/2024
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
698

 
680

 
680

SM Wellness Holdings, Inc., 1.00% Unfunded, 8/1/2020
 
None
 
Healthcare & Pharmaceuticals
 
128

 
(1
)
 
(3
)
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 9/30/2020(p)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
12,807

 
12,768

 
12,743

Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 12/31/2021(p)(w)
 
3 Month LIBOR
 
Healthcare & Pharmaceuticals
 
466

 
465

 
464

Sprint Industrial Holdings, LLC, L+575, 1.25% LIBOR Floor, 5/14/2019(p)
 
3 Month LIBOR
 
Energy: Oil & Gas
 
7,961

 
7,813

 
7,742

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

 
3,840

 
3,934

Studio Movie Grill Holdings, LLC, L+725, 1.00% LIBOR Floor, 9/30/2020(f)(p)
 
3 Month LIBOR
 
Hotel, Gaming & Leisure
 
22,371

 
22,296

 
22,371

TDG Group Holding Company, L+550, 0.00% LIBOR Floor, 5/31/2024
 
3 Month LIBOR
 
Services: Consumer
 
2,816

 
2,763

 
2,760

TDG Group Holding Company, 1.00% Unfunded, 5/31/2020
 
None
 
Services: Consumer
 
720

 

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

 
(30
)
 

Telestream Holdings Corp., L+645, 1.00% LIBOR Floor, 3/24/2022(l)(p)
 
3 Month LIBOR
 
High Tech Industries
 
8,482

 
8,333

 
8,228

Tenere Inc., L+1000, 1.00% LIBOR Floor, 12/23/2021(p)(r)
 
2 Month LIBOR
 
Capital Equipment
 
30,880

 
30,787

 
30,108

Tensar Corp., L+475, 1.00% LIBOR Floor, 7/9/2021(q)
 
3 Month LIBOR
 
Chemicals, Plastics & Rubber
 
12,980

 
12,376

 
12,842

The Pasha Group, L+750, 1.00% LIBOR Floor, 1/26/2023(r)
 
2 Month LIBOR
 
Transportation: Cargo
 
7,268

 
7,071

 
7,373

The Pay-O-Matic Corp., L+900, 0.00% LIBOR Floor, 4/5/2021(h)(p)
 
2 Month LIBOR
 
Services: Consumer
 
22,713

 
22,522

 
22,485

TherapeuticsMD, Inc., L+775, 1.50% LIBOR Floor, 5/1/2023(i)(s)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
15,000

 
14,860

 
14,850

TherapeuticsMD, Inc., 0.00% Unfunded, 12/31/2019(i)(t)
 
None
 
Healthcare & Pharmaceuticals
 
10,000

 
(93
)
 
(100
)
TherapeuticsMD, Inc., 0.00% Unfunded, 5/31/2019(i)(t)
 
None
 
Healthcare & Pharmaceuticals
 
15,000

 
(140
)
 
(150
)
Therapure Biopharma Inc., L+875, 0.50% LIBOR Floor, 12/1/2021(i)
 
1 Month LIBOR
 
Healthcare & Pharmaceuticals
 
15,000

 
14,948

 
15,000

Vero Parent, Inc., L+500, 1.00% LIBOR Floor, 8/16/2024(q)(s)
 
1 Month LIBOR
 
High Tech Industries
 
14,850

 
14,719

 
14,906

Vertex Aerospace Services Corp., L+475, 0.00% LIBOR Floor, 6/29/2025(q)(s)
 
1 Month LIBOR
 
Aerospace & Defense
 
24,938

 
24,817

 
25,210

Visual Edge Technology, Inc., L+575, 1.00% LIBOR Floor, 8/31/2022
 
1 Month LIBOR
 
Services: Business
 
3,104

 
3,093

 
3,088

See accompanying notes to consolidated financial statements.

8



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
September 30, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
Visual Edge Technology, Inc., 1.00% Unfunded, 2/28/2019
 
None
 
Services: Business
 
831

 

 
(4
)
VLS Recovery Services, LLC, L+600, 1.00% LIBOR Floor, 10/17/2023
 
1 Month LIBOR
 
Services: Business
 
279

 
255

 
276

VLS Recovery Services, LLC, 1.00% Unfunded, 10/17/2019
 
None
 
Services: Business
 
205

 

 
(2
)
Woodstream Corp., L+625, 1.00% LIBOR Floor, 5/29/2022(s)
 
3 Month LIBOR
 
Consumer Goods: Non-Durable
 
14,542

 
14,542

 
14,542

Woodstream Corp., 0.50% Unfunded, 5/29/2021
 
None
 
Consumer Goods: Non-Durable
 
559

 

 

Zemax Software Holdings, LLC, L+575, 1.00% LIBOR Floor, 6/25/2024(s)
 
1 Month LIBOR
 
High Tech Industries
 
1,318

 
1,293

 
1,292

Total Senior Secured First Lien Debt
 
 
 
 
 
 
 
1,395,849

 
1,395,969

Senior Secured Second Lien Debt - 34.5%
 
 
 
 
 
 
 
 
 
 
1A Smart Start LLC, L+825, 1.00% LIBOR Floor, 8/21/2022(p)(r)
 
1 Month LIBOR
 
High Tech Industries
 
17,800

 
17,477

 
17,515

ABG Intermediate Holdings 2 LLC, L+775, 1.00% LIBOR Floor, 9/29/2025(p)
 
1 Month LIBOR
 
Retail
 
9,897

 
9,846

 
9,977

Access CIG, LLC, L+775, 0.00% LIBOR Floor, 2/27/2026(r)
 
1 Month LIBOR
 
Services: Business
 
16,434

 
16,298

 
16,568

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

 
10,269

 
8,016

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

 
4,903

 
4,835

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

 
14,329

 
14,517

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

 
5,456

 
5,459

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

 
9,472

 
9,524

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

 
19,727

 
20,250

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

 

 

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

 
2,984

 
2,947

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

 
7,587

 
8,499

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

 
3,445

 
3,485

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

 
11,488

 
11,561

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

 
4,016

 
4,020

LSCS Holdings, Inc., L+825, 0.00% LIBOR Floor, 3/16/2026(p)
 
3 Month LIBOR
 
Services: Business
 
11,891

 
11,641

 
11,831

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

 
19,707

 
19,925

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

 
9,864

 
10,038

Medplast Holdings, Inc., L+775, 0.00% LIBOR Floor, 7/2/2026(s)
 
2 Month LIBOR
 
Healthcare & Pharmaceuticals
 
6,750

 
6,684

 
6,868

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

 
5,402

 
5,488

Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023
 
6 Month LIBOR
 
Services: Business
 
2,508

 
2,487

 
2,508

Ministry Brands, LLC, L+100, 1.00% LIBOR Floor Unfunded, 10/18/2020
 
3 Month LIBOR
 
Services: Business
 
465

 

 

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

 
7,946

 
8,604

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

 
10,040

 
10,543

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

 
12,152

 
12,126

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

 
13,400

 
12,893

See accompanying notes to consolidated financial statements.

9



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
September 30, 2018
(in thousands)
Portfolio Company(a)
 
Index Rate(b)
 
Industry
 
Principal/
Par Amount/
Units(e)
 
Cost(d)
 
Fair
Value(c)
PDI TA Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/25/2024
 
6 Month LIBOR
 
High Tech Industries
 
2,034

 
2,012

 
2,014

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

 
14,731

 
14,738

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

 
4,742

 
875

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

 
2,912

 
2,835

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

 
9,291

 
9,516

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

 
2,914

 
2,961

SESAC Holdco II LLC, L+725, 1.00% LIBOR Floor, 2/23/2025(k)(r)
 
1 Month LIBOR
 
Media: Broadcasting & Subscription
 
250

 
248

 
249

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

 
9,894

 
9,600

TexOak Petro Holdings LLC, 8.00%, 12/29/2019(u)
 
None
 
Energy: Oil & Gas
 
7,700

 
2,592

 

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

 
13,086

 
13,125

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

 
5,956

 
6,000

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

 
4,928

 
4,825

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

 
15,902

 
16,080

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

 
12,624

 
9,553

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

 
14,859

 
14,850

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

 
4,941

 
5,000

Total Senior Secured Second Lien Debt
 
 
 
 
 
 
 
358,252

 
350,218

Collateralized Securities and Structured Products - Debt - 1.5%
 
 
 
 
 
 
 
 
 
 
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

 
14,903

Total Collateralized Securities and Structured Products - Debt
 
 
 
 
 
 
 
14,903

 
14,903

Collateralized Securities and Structured Products - Equity - 1.6%
 
 
 
 
 
 
 
 
 
 
APIDOS CLO XVI Subordinated Notes, 4.79% Estimated Yield, 1/19/2025(i)
 
(g)
 
Diversified Financials
 
9,000

 
3,802

 
3,278

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

 
1,231

 
1,179

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

 
2,322

 
2,151

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

 
9,553

 
9,724

Total Collateralized Securities and Structured Products - Equity
 
 
 
 
 
 
 
16,908

 
16,332

Equity - 3.6%
 
 
 
 
 
 
 
 
 
 
Ascent Resources - Marcellus, LLC, Common Shares(t)
 
 
 
Energy: Oil & Gas
 
511,255 Units

 
1,642

 
1,610

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

 
13

 
4

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

 
5,285

 
7,113

Charming Charlie LLC, Common Stock(t)(v)
 
 
 
Retail
 
30,046,243 Units

 
1,302

 
350

CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend
 
 
 
Healthcare & Pharmaceuticals
 
1,818,182 Units

 
3,000

 
3,127

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

 
200

 
170

Conisus Holdings, Inc., Series B Preferred Stock, 12% Dividend(u)(v)