CION Investment Corp - FORM 10-Q

Attached files

file	filename
EX-32.3 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS - CION Investment Corp	ex-323.htm
EX-32.2 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, - CION Investment Corp	ex-322.htm
EX-32.1 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, - CION Investment Corp	ex-321.htm
EX-31.3 - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES - CION Investment Corp	ex-313.htm
EX-31.2 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBA - CION Investment Corp	ex-312.htm
EX-31.1 - CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBA - CION Investment Corp	ex-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, 2020


[ ]			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)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
None	Not applicable	Not applicable

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 12, 2020 was 114,037,414.

CĪON INVESTMENT CORPORATION

FORM 10-Q

TABLE OF CONTENTS


						Page
			PART I - FINANCIAL INFORMATION
			Item 1. Financial Statements			1
			Report of Independent Registered Public Accounting Firm			1
			Consolidated Balance Sheets			2
			Consolidated Statements of Operations			3
			Consolidated Statements of Changes in Net Assets			4
			Consolidated Statements of Cash Flows			5
			Consolidated Schedules of Investments			6
			Notes to Consolidated Financial Statements			34
			Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			66
			Item 3. Quantitative and Qualitative Disclosures About Market Risk			81
			Item 4. Controls and Procedures			82
			PART II – OTHER INFORMATION
			Item 1. Legal Proceedings			83
			Item 1A. Risk Factors			83
			Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			83
			Item 3. Defaults Upon Senior Securities			83
			Item 4. Mine Safety Disclosures			83
			Item 5. Other Information			83
			Item 6. Exhibits			84
			Signatures			87

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of CĪON Investment Corporation

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheets, including the consolidated schedules of investments, of CĪON Investment Corporation (the Company), as of September 30, 2020 and 2019, the related consolidated statements of operations, changes in net assets, and cash flows for the three and nine months ended September 30, 2020 and 2019, and the related notes to the consolidated financial statements (collectively, the interim financial information or interim financial statements). Based on our reviews, we are not aware of any material modifications that should be made to the interim financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America and the provisions of the Securities Regulations (Annual Financial Statements), 2010.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet, including the consolidated schedule of investments, of the Company as of December 31, 2019, and the related consolidated statements of operations, changes in net assets, and cash flows for the year then ended, and in our report dated March 16, 2020, we expressed an unqualified opinion on those consolidated financial statements.

Basis for Review Results

These interim financial statements are the responsibility of the Company’s management. We conducted our reviews in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

/s/ RSM US LLP

New York, New York

November 16, 2020

CĪON Investment Corporation

Consolidated Balance Sheets

(in thousands, except share and per share amounts)


	September 30, 2020		December 31, 2019		September 30, 2019
	(unaudited)				(unaudited)
Assets
Investments, at fair value:
Non-controlled, non-affiliated investments (amortized cost of $1,514,348, $1,692,879 and $1,813,662, respectively)	$	1,413,103	$	1,630,243	$	1,739,057
Non-controlled, affiliated investments (amortized cost of $130,924, $88,700 and $51,816, respectively)	115,601		89,326		36,097
Controlled investments (amortized cost of $44,179, $45,497 and $0, respectively)	41,201		45,503		—
Total investments, at fair value (amortized cost of $1,689,451, $1,827,076 and $1,865,478, respectively)	1,569,905		1,765,072		1,775,154

Cash	4,214		6,135		10,147

Due from counterparty	—		3,281		—

Interest receivable on investments	18,666		15,261		17,853
Receivable due on investments sold	7,273		18,552		2,283
Dividend receivable on investments	1,706		1,106		—
Prepaid expenses and other assets	1,368		985		541
Total assets	$	1,603,132	$	1,810,392	$	1,805,978


Liabilities and Shareholders' Equity
Liabilities
Financing arrangements (net of unamortized debt issuance costs of $5,581, $4,457 and $5,145, respectively)	$	719,419	$	836,585	$	837,397
Payable for investments purchased	4,956		1,568		4,419
Accounts payable and accrued expenses	775		815		1,039
Interest payable	2,395		3,163		3,197

Accrued management fees	7,779		8,869		9,029
Accrued subordinated incentive fee on income	—		5,612		4,983
Accrued administrative services expense	589		1,217		453

Total liabilities	735,913		857,829		860,517

Commitments and contingencies (Note 4 and Note 11)

Shareholders' Equity
Common stock, $0.001 par value; 500,000,000 shares authorized;
113,800,019, 113,381,145 and 113,381,782 shares issued and outstanding, respectively	114		113		113
Capital in excess of par value	1,058,610		1,054,913		1,054,913
Accumulated distributable losses	(191,505)		(102,463)		(109,565)




Total shareholders' equity	867,219		952,563		945,461
Total liabilities and shareholders' equity	$	1,603,132	$	1,810,392	$	1,805,978
Net asset value per share of common stock at end of period	$	7.62	$	8.40	$	8.34

See accompanying notes to consolidated financial statements.

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,				Year Ended December 31,
	2020		2019		2020		2019		2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Investment income
Non-controlled, non-affiliated investments
Interest income	$	30,477	$	46,235	$	98,055	$	141,028	$	187,104
Fee income	773		2,092		2,114		2,914		3,899
Paid-in-kind interest income	5,001		333		9,953		1,209		2,017
Dividend income	95		158		404		338		474
Non-controlled, affiliated investments
Interest income	610		460		2,879		1,377		1,905
Paid-in-kind interest income	131		—		1,343		65		566
Dividend income	444		497		1,392		3,534		4,015
Controlled investments
Dividend income	1,356		—		4,303		—		1,123
Total investment income	38,887		49,775		120,443		150,465		201,103
Operating expenses
Management fees	7,780		9,029		24,160		27,597		36,466
Administrative services expense	593		453		1,793		1,433		2,650
Subordinated incentive fee on income	—		4,983		3,308		14,475		20,087
General and administrative	1,524		1,155		4,709		3,741		5,057
Interest expense	7,570		12,493		29,476		38,357		49,531
Total operating expenses	17,467		28,113		63,446		85,603		113,791
Net investment income	21,420		21,662		56,997		64,862		87,312
Realized and unrealized (losses) gains
Net realized (loss) gain on:
Non-controlled, non-affiliated investments	(42,543)		(311)		(57,506)		(3,510)		(13,594)
Non-controlled, affiliated investments	—		—		(211)		—		(11,184)

Foreign currency	32		(5)		24		(140)		(139)
Net realized losses	(42,511)		(316)		(57,693)		(3,650)		(24,917)
Net change in unrealized appreciation (depreciation) on:
Non-controlled, non-affiliated investments	58,572		(19,821)		(38,611)		(31,628)		(19,658)
Non-controlled, affiliated investments	(7,401)		(3,747)		(15,947)		(7,243)		9,101
Controlled, affiliated investments	1,007		—		(2,984)		—		6

Net change in unrealized appreciation (depreciation)	52,178		(23,568)		(57,542)		(38,871)		(10,551)
Net realized and unrealized gains (losses)	9,667		(23,884)		(115,235)		(42,521)		(35,468)
Net increase (decrease) in net assets resulting from operations	$	31,087	$	(2,222)	$	(58,238)	$	22,341	$	51,844
Per share information—basic and diluted
Net increase (decrease) in net assets per share resulting from operations	$	0.27	$	(0.02)	$	(0.51)	$	0.20	$	0.46
Weighted average shares of common stock outstanding	113,415,564		113,729,902		113,475,569		113,698,608		113,708,479

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Statements of Changes in Net Assets

(in thousands, except share and per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,				Year Ended December 31,
	2020		2019		2020		2019		2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Changes in net assets from operations:
Net investment income	$	21,420	$	21,662	$	56,997	$	64,862	$	87,312
Net realized loss on investments	(42,543)		(311)		(57,717)		(3,510)		(24,778)
Net realized gain (loss) on foreign currency	32		(5)		24		(140)		(139)
Net change in unrealized appreciation (depreciation) on investments	52,178		(23,568)		(57,542)		(38,871)		(10,551)


Net increase (decrease) in net assets from operations	31,087		(2,222)		(58,238)		22,341		51,844
Changes in net assets from shareholders' distributions:
Distributions to shareholders	(10,011)		(20,798)		(30,804)		(62,371)		(84,772)
Net decrease in net assets from shareholders' distributions	(10,011)		(20,798)		(30,804)		(62,371)		(84,772)
Changes in net assets from capital share transactions:
Issuance of common stock, net of issuance costs of $0, $0, $0, $296 and $296, respectively	—		—		—		6,220		6,219
Reinvestment of shareholders' distributions	3,713		8,562		11,783		26,849		35,800
Repurchase of common stock	—		(8,562)		(8,085)		(26,849)		(35,799)
Net increase in net assets from capital share transactions	3,713		—		3,698		6,220		6,220

Total increase (decrease) in net assets	24,789		(23,020)		(85,344)		(33,810)		(26,708)
Net assets at beginning of period	842,430		968,481		952,563		979,271		979,271
Net assets at end of period	$	867,219	$	945,461	$	867,219	$	945,461	$	952,563

Net asset value per share of common stock at end of period	$	7.62	$	8.34	$	7.62	$	8.34	$	8.40
Shares of common stock outstanding at end of period	113,800,019		113,381,782		113,800,019		113,381,782		113,381,145

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Statements of Cash Flows

(in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,				Year Ended December 31,
	2020		2019		2020		2019		2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Operating activities:
Net increase (decrease) in net assets resulting from operations	$	31,087	$	(2,222)	$	(58,238)	$	22,341	$	51,844
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:
Net accretion of discount on investments	(3,220)		(3,723)		(10,237)		(10,058)		(16,081)
Proceeds from principal repayment of investments	64,514		122,967		305,252		285,698		423,091
Purchase of investments	(36,130)		(94,364)		(237,633)		(379,489)		(563,884)
Paid-in-kind interest and dividends capitalized	(5,305)		(989)		(12,658)		(5,312)		(7,072)
(Increase) decrease in short term investments, net	(21,356)		10,680		(23,497)		(10,523)		(16,989)
Proceeds from sale of investments	12,640		19,108		57,068		167,432		245,698
Net realized loss on investments	42,543		311		57,717		3,510		24,778
Net unrealized (appreciation) depreciation on investments	(52,178)		23,568		57,542		38,871		10,551

Amortization of debt issuance costs	536		695		4,500		2,210		2,898
(Increase) decrease in due from counterparty	—		—		3,281		—		(3,281)
(Increase) decrease in interest receivable on investments	2,499		(1,355)		(1,792)		(230)		2,481
(Increase) decrease in dividends receivable	810		—		(600)		—		(1,106)
(Increase) decrease in receivable due on investments sold	(5,367)		393		11,279		3,504		(12,765)

(Increase) decrease in prepaid expenses and other assets	(816)		(3)		(383)		(352)		(796)
Increase (decrease) in payable for investments purchased	3,388		(9,898)		3,388		(12,432)		(15,283)
Increase (decrease) in accounts payable and accrued expenses	(100)		211		(40)		100		(124)
Increase (decrease) in interest payable	(84)		(385)		(768)		(763)		(797)
Increase (decrease) in accrued management fees	(150)		(208)		(1,090)		(279)		(439)
Increase (decrease) in accrued administrative services expense	(144)		370		(628)		(460)		304

Increase (decrease) in subordinated incentive fee on income payable	(3,308)		866		(5,612)		2,379		3,008
Net cash provided by operating activities	29,859		66,022		146,851		106,147		126,036

Financing activities:
Gross proceeds from issuance of common stock	—		—		—		6,516		6,515
Commissions and dealer manager fees paid	—		—		—		(296)		(296)
Repurchase of common stock	—		(8,562)		(8,085)		(26,849)		(35,799)
Shareholders' distributions paid	(6,298)		(12,236)		(19,021)		(35,522)		(48,972)
Borrowings under financing arrangements	—		90,000		486,153		223,500		313,000
Repayments of financing arrangements	(21,035)		(130,000)		(602,194)		(279,500)		(370,500)
Debt issuance costs paid	—		—		(5,625)		(1,428)		(1,428)
Net cash used in financing activities	(27,333)		(60,798)		(148,772)		(113,579)		(137,480)

Net increase (decrease) in cash and restricted cash	2,526		5,224		(1,921)		(7,432)		(11,444)
Cash and restricted cash, beginning of period	1,688		4,923		6,135		17,579		17,579
Cash and restricted cash, end of period	$	4,214	$	10,147	$	4,214	$	10,147	$	6,135

Supplemental disclosure of cash flow information:
Cash paid for interest	$	7,090	$	12,168	$	25,735	$	36,895	$	47,413
Supplemental non-cash financing activities:
Reinvestment of shareholders' distributions	$	3,713	$	8,562	$	11,783	$	26,849	$	35,800
Restructuring of portfolio investments	$	35,771	$	—	$	74,534	$	9,903	$	71,445

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2020

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)		Cost(d)		Fair Value(c)
Senior Secured First Lien Debt - 142.1%
1244311 B.C. LTD., L+500, 1.00% LIBOR Floor, 9/30/2025	3 Month LIBOR	Chemicals, Plastics & Rubber	$	2,422	$	2,289	$	2,287
1244311 B.C. LTD., L+500, 1.00% LIBOR Floor, 9/30/2025	3 Month LIBOR	Chemicals, Plastics & Rubber	807		755		755
Adams Publishing Group, LLC, L+700, 1.75% LIBOR Floor, 7/2/2023(o)(p)	1 Month LIBOR	Media: Advertising, Printing & Publishing	12,778		12,694		12,299
Adapt Laser Acquisition, Inc., L+800, 1.00% LIBOR Floor, 12/31/2023(o)	3 Month LIBOR	Capital Equipment	11,370		11,370		9,721
Adapt Laser Acquisition, Inc., L+800, 1.00% LIBOR Floor, 12/31/2023	3 Month LIBOR	Capital Equipment	2,000		2,000		1,710
Aegis Toxicology Sciences Corp., L+550, 1.00% LIBOR Floor, 5/9/2025(o)	3 Month LIBOR	Healthcare & Pharmaceuticals	9,800		9,654		8,085
AIS Holdco, LLC, L+500, 0.00% LIBOR Floor, 8/15/2025(o)	3 Month LIBOR	Banking, Finance, Insurance & Real Estate	5,278		5,227		4,856
Alchemy US Holdco 1, LLC, 5.50%, 10/10/2025(o)	1 Month LIBOR	Construction & Building	13,044		12,905		12,115
Allen Media, LLC, L+550, 0.00% LIBOR Floor, 2/10/2027(o)(p)	3 Month LIBOR	Media: Diversified & Production	24,871		24,871		24,203
ALM Media, LLC, L+650, 1.00% LIBOR Floor, 11/25/2024(o)(p)	3 Month LIBOR	Media: Advertising, Printing & Publishing	19,250		18,921		18,287
AMCP Staffing Intermediate Holdings III, LLC, L+675, 1.50% LIBOR Floor, 9/24/2025(o)	1 Month LIBOR	Services: Business	9,925		9,874		9,429
AMCP Staffing Intermediate Holdings III, LLC, 0.50% Unfunded, 9/24/2025	None	Services: Business	1,598		—		(80)
American Clinical Solutions LLC, 7.00%, 12/31/2022(o)(s)	None	Healthcare & Pharmaceuticals	3,500		3,419		3,132
American Clinical Solutions LLC, 7.00%, 10/13/2020(o)(s)	None	Healthcare & Pharmaceuticals	250		250		241
American Consolidated Natural Resources, Inc., L+1600, 1.00% LIBOR Floor, 9/16/2025(o)	3 Month LIBOR	Metals & Mining	774		539		549
American Media, LLC, L+775, 1.50% LIBOR Floor, 12/31/2023(o)	3 Month LIBOR	Media: Advertising, Printing & Publishing	12,952		12,724		12,628
American Media, LLC, L+775, 1.50% LIBOR Floor, 12/31/2023(o)	3 Month LIBOR	Media: Advertising, Printing & Publishing	1,702		1,668		1,659
American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021(o)	3 Month LIBOR	Telecommunications	19,522		18,735		15,618
Analogic Corp., L+525, 1.00% LIBOR Floor, 6/21/2024(o)(p)	1 Month LIBOR	Healthcare & Pharmaceuticals	4,963		4,894		4,863
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024(o)(v)	3 Month LIBOR	Media: Diversified & Production	11,173		11,038		11,033
Anthem Sports & Entertainment Inc., 0.50% Unfunded, 9/9/2024	None	Media: Diversified & Production	1,333		—		(13)
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024	3 Month LIBOR	Media: Diversified & Production	833		833		825
APC Intermediate Holdings, Inc., L+1000, 1.00% LIBOR Floor, 7/24/2025	2 Month LIBOR	Automotive	2,658		2,535		4,375
APCO Holdings, LLC, L+550, 0.00% LIBOR Floor, 6/9/2025(o)	1 Month LIBOR	Banking, Finance, Insurance & Real Estate	10,527		10,448		10,396
Appalachian Resource Company, LLC, L+1000, 2.00% LIBOR Floor, 9/10/2023(o)	3 Month LIBOR	Metals & Mining	12,887		11,166		11,166
Associated Asphalt Partners, LLC, L+525, 1.00% LIBOR Floor, 4/5/2024(o)(p)	1 Month LIBOR	Construction & Building	14,565		14,122		13,127
Avison Young (USA) Inc., L+500, 0.00% LIBOR Floor, 1/31/2026(h)(o)	3 Month LIBOR	Banking, Finance, Insurance & Real Estate	9,825		9,666		9,321
Bi-Lo, LLC, L+800, 1.00% LIBOR Floor, 5/31/2024(o)(p)	1 Month LIBOR	Retail	18,721		18,076		18,766
BK Medical Holding Company, Inc., L+525, 1.00% LIBOR Floor, 6/22/2024(o)(p)	1 Month LIBOR	Healthcare & Pharmaceuticals	4,975		4,935		4,726
Cadence Aerospace, LLC, L+850, 1.00% LIBOR Floor, 11/14/2023(o)(p)(v)	3 Month LIBOR	Aerospace & Defense	37,323		36,805		35,457
Cardinal US Holdings, Inc., L+500, 1.00% LIBOR Floor, 7/31/2023(o)	3 Month LIBOR	Services: Business	8,245		7,928		7,214
CB URS Holdings Corp., L+575, 1.00% LIBOR Floor, 9/1/2024(o)	6 Month LIBOR	Transportation: Cargo	16,014		15,944		14,392
Central Security Group, Inc., L+563, 1.00% LIBOR Floor, 10/6/2021(o)(r)	3 Month LIBOR	Services: Consumer	19,314		19,320		13,500
Charming Charlie LLC, L+1200, 1.00% LIBOR Floor, 4/24/2023(r)(s)(v)	1 Month LIBOR	Retail	3,595		—		—

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2020

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)	Fair Value(c)
Charming Charlie LLC, L+1200, 1.00% LIBOR Floor, 4/24/2023(r)(s)(v)	1 Month LIBOR	Retail	2,936	—	—
Charming Charlie LLC, 20.00%, 5/15/2020(r)(s)	None	Retail	777	657	350
CHC Solutions Inc., 12.00%, 7/20/2023(p)(v)	None	Healthcare & Pharmaceuticals	7,573	7,573	7,308
CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021(o)(p)	1 Month LIBOR	Hotel, Gaming & Leisure	24,974	24,533	17,332
CircusTrix Holdings, LLC, 1.00% Unfunded, 12/16/2021	None	Hotel, Gaming & Leisure	2,898	—	—
CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021(o)(v)	1 Month LIBOR	Hotel, Gaming & Leisure	2,535	2,535	1,759
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023	3 Month LIBOR	Beverage, Food & Tobacco	1,020	980	847
Country Fresh Holdings, LLC, 12.00%, 6/1/2022(v)	None	Beverage, Food & Tobacco	550	523	539
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023(o)	3 Month LIBOR	Beverage, Food & Tobacco	414	414	343
Country Fresh Holdings, LLC, 0.00% Unfunded, 6/1/2022(q)	None	Beverage, Food & Tobacco	182	—	(4)
Coyote Buyer, LLC, L+600, 1.00% LIBOR Floor, 2/6/2026(o)(p)	3 Month LIBOR	Chemicals, Plastics & Rubber	29,850	29,581	29,701
Coyote Buyer, LLC, 0.50% Unfunded, 2/6/2025(o)(p)	None	Chemicals, Plastics & Rubber	2,500	(13)	(13)

David's Bridal, LLC, L+1000, 1.00% LIBOR Floor, 6/23/2023(v)	1 Month LIBOR	Retail	5,319	4,340	5,319
David's Bridal, LLC, L+600, 1.00% LIBOR Floor, 6/30/2023(v)	3 Month LIBOR	Retail	733	632	733
Deluxe Entertainment Services, Inc., L+650, 1.00% LIBOR Floor, 3/25/2024(o)(s)(v)	3 Month LIBOR	Media: Diversified & Production	14,896	15,115	19,365
Deluxe Entertainment Services, Inc., L+1000, 1.00% LIBOR Floor, 11/30/2020(s)	1 Month LIBOR	Media: Diversified & Production	3,400	3,253	3,502
DMT Solutions Global Corp., L+700, 0.00% LIBOR Floor, 7/2/2024(o)	3 Month LIBOR	Services: Business	17,750	17,388	16,507
Eagle Family Foods Group LLC, L+650, 1.00% LIBOR Floor, 6/14/2024(o)	3 Month LIBOR	Beverage, Food & Tobacco	14,663	14,439	14,296
Entertainment Studios P&A LLC, 6.26%, 5/18/2037(l)(o)	None	Media: Diversified & Production	14,082	13,979	13,132
Entertainment Studios P&A LLC, 5.00%, 5/18/2037(l)	None	Media: Diversified & Production	—	—	1,364
EnTrans International, LLC, L+600, 0.00% LIBOR Floor, 11/1/2024(o)	1 Month LIBOR	Capital Equipment	26,625	26,427	23,696
ES Chappaquiddick LLC, 10.00%, 5/18/2022(o)	None	Media: Diversified & Production	925	925	939
Extreme Reach, Inc., L+750, 1.50% LIBOR Floor, 3/29/2024(o)(p)	1 Month LIBOR	Media: Diversified & Production	16,173	16,110	15,768
Extreme Reach, Inc., 0.50% Unfunded, 3/29/2024(o)(p)	None	Media: Diversified & Production	1,163	—	(29)
Extreme Reach, Inc., L+750, 1.50% LIBOR Floor, 3/29/2024(o)(p)	1 Month LIBOR	Media: Diversified & Production	581	579	567
F+W Media, Inc., L+650, 1.50% LIBOR Floor, 5/24/2022(o)(r)(s)(v)	1 Month LIBOR	Media: Diversified & Production	1,174	1,115	—
Foundation Consumer Healthcare, LLC, L+600, 1.00% LIBOR Floor, 11/2/2023(o)(p)	3 Month LIBOR	Healthcare & Pharmaceuticals	38,770	38,531	38,770
Foundation Consumer Healthcare, LLC, 0.50% Unfunded, 11/2/2023	None	Healthcare & Pharmaceuticals	4,211	(16)	—
Genesis Healthcare, Inc., L+600, 0.50% LIBOR Floor, 3/6/2023(h)(o)	1 Month LIBOR	Healthcare & Pharmaceuticals	30,000	29,830	29,175
Geo Parent Corp., L+525, 0.00% LIBOR Floor, 12/19/2025(o)	1 Month LIBOR	Services: Business	14,775	14,655	14,332
Geon Performance Solutions, LLC, L+625, 1.63% LIBOR Floor, 10/25/2024(o)(p)	1 Month LIBOR	Chemicals, Plastics & Rubber	17,283	17,181	16,592
Geon Performance Solutions, LLC, 0.50% Unfunded, 10/25/2024	None	Chemicals, Plastics & Rubber	2,586	—	(103)
Harland Clarke Holdings Corp., L+475, 1.00% LIBOR Floor, 11/3/2023(o)	3 Month LIBOR	Services: Business	12,547	12,513	10,336
Healogics, Inc., L+425, 1.00% LIBOR Floor, 7/1/2021(o)	3 Month LIBOR	Healthcare & Pharmaceuticals	4,712	4,652	4,335
Hilliard, Martinez & Gonzales, LLP, L+1800, 2.00% LIBOR Floor, 12/17/2022(o)(v)	1 Month LIBOR	Services: Consumer	16,079	15,961	16,079

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2020

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)		Cost(d)	Fair Value(c)
Homer City Generation, L.P., L+1100, 1.00% LIBOR Floor, 4/5/2023(o)(r)	3 Month LIBOR	Energy: Oil & Gas	14,407		13,916	11,670
HUMC Holdco, LLC, 9.00%, 11/16/2020(o)	None	Healthcare & Pharmaceuticals	10,000		9,978	9,675
Hummel Station LLC, L+600, 1.00% LIBOR Floor, 10/27/2022(o)	1 Month LIBOR	Energy: Oil & Gas	9,456		9,234	8,830
Hyperion Materials & Technologies, Inc., L+550, 1.00% LIBOR Floor, 8/28/2026(o)	6 Month LIBOR	Chemicals, Plastics & Rubber	9,925		9,748	9,230
Independent Pet Partners Intermediate Holdings, LLC, L+900, 1.00% LIBOR Floor, 11/19/2023(o)	6 Month LIBOR	Retail	12,522		12,376	10,190
Independent Pet Partners Intermediate Holdings, LLC, 1.00% Unfunded, 11/19/2023	None	Retail	7,363		—	—
Independent Pet Partners Intermediate Holdings, LLC, L+225, 0.00% LIBOR Floor, 12/22/2022(o)	3 Month LIBOR	Retail	2,222		2,222	2,222
Infinity Sales Group, LLC, L+1050, 1.00% LIBOR Floor, 11/23/2022(o)	1 Month LIBOR	Services: Business	6,820		6,725	6,820
InfoGroup Inc., L+500, 1.00% LIBOR Floor, 4/3/2023(o)(p)	3 Month LIBOR	Media: Advertising, Printing & Publishing	15,635		15,625	14,071
Instant Web, LLC, L+650, 1.00% LIBOR Floor, 12/15/2022(o)(p)	1 Month LIBOR	Media: Advertising, Printing & Publishing	37,531		37,472	34,904
Instant Web, LLC, 0.50% Unfunded, 12/15/2022	None	Media: Advertising, Printing & Publishing	2,704		—	(189)
Isagenix International, LLC, L+575, 1.00% LIBOR Floor, 6/14/2025(o)	3 Month LIBOR	Beverage, Food & Tobacco	13,244		13,146	9,403
Island Medical Management Holdings, LLC, L+650, 1.00% LIBOR Floor, 9/1/2022(o)(p)	3 Month LIBOR	Healthcare & Pharmaceuticals	11,222		11,156	10,367
Jab Wireless, Inc., L+800, 0.00% LIBOR Floor, 5/2/2023(o)	1 Month LIBOR	Telecommunications	13,457		13,457	13,457
Jenny C Acquisition, Inc., L+1250, 1.75% LIBOR Floor, 10/1/2024(o)(v)	3 Month LIBOR	Services: Consumer	10,584		10,510	9,273
JP Intermediate B, LLC, L+550, 1.00% LIBOR Floor, 11/20/2025(o)	3 Month LIBOR	Beverage, Food & Tobacco	15,502		15,235	13,739
KNB Holdings Corp., L+550, 1.00% LIBOR Floor, 4/26/2024(o)(r)	6 Month LIBOR	Consumer Goods: Durable	8,128		7,569	3,516
Labvantage Solutions Inc., L+750, 1.00% LIBOR Floor, 12/29/2020(o)(p)	1 Month LIBOR	High Tech Industries	2,646		2,644	2,646
Labvantage Solutions Ltd., E+750, 1.00% EURIBOR Floor, 12/29/2020(h)	1 Month EURIBOR	High Tech Industries	€	3,026	3,401	3,547
LAV Gear Holdings, Inc., L+750, 1.00% LIBOR Floor, 10/31/2024(o)(p)(v)	3 Month LIBOR	Services: Business	25,042		24,625	23,790
LAV Gear Holdings, Inc., L+750, 1.00% LIBOR Floor, 10/31/2024(o)(p)(v)	3 Month LIBOR	Services: Business	4,319		4,269	4,103
LAV Gear Holdings, Inc., 1.00% Unfunded, 4/7/2021	None	Services: Business	864		(7)	(43)
LD Intermediate Holdings, Inc., L+588, 1.00% LIBOR Floor, 12/9/2022(o)	3 Month LIBOR	High Tech Industries	11,192		11,009	10,716
LGC US Finco, LLC, L+650, 1.00% LIBOR Floor, 12/20/2025(o)	1 Month LIBOR	Capital Equipment	9,850		9,577	9,554
Lift Brands, Inc., L+325, 1.00% LIBOR Floor, 6/29/2025(o)(p)(s)	1 Month LIBOR	Services: Consumer	23,642		23,642	23,878
Lift Brands, Inc., 6/29/2025(o)(p)(q)(s)(x)	None	Services: Consumer	5,296		4,653	4,647
Lift Brands, Inc., 9.50%, 6/29/2025(o)(p)(s)(v)	None	Services: Consumer	4,746		4,634	4,628
Longview Power, LLC, L+1000, 1.50% LIBOR Floor, 7/30/2025(s)	3 Month LIBOR	Energy: Oil & Gas	2,361		589	2,384
Manna Pro Products, LLC, L+600, 1.00% LIBOR Floor, 12/8/2023(o)	1 Month LIBOR	Retail	4,432		4,432	4,388
Manna Pro Products, LLC, L+600, 1.00% LIBOR Floor, 12/8/2023(o)	1 Month LIBOR	Retail	3,413		3,413	3,379
Manna Pro Products, LLC, 1.00% Unfunded, 5/31/2021	None	Retail	1,096		—	(11)
Mimeo.com, Inc., L+700, 1.00% LIBOR Floor, 12/21/2023(o)(x)	3 Month LIBOR	Services: Business	22,847		22,847	22,276
Mimeo.com, Inc., 0.25% Unfunded, 12/21/2020	None	Services: Business	10,000		—	(250)
Mimeo.com, Inc., L+1700, 1.00% LIBOR Floor, 12/21/2023(o)(v)	3 Month LIBOR	Services: Business	2,077		2,077	2,131
Mimeo.com, Inc., 1.00% Unfunded, 12/21/2023	None	Services: Business	1,000		—	26
Moss Holding Company, L+650, 1.00% LIBOR Floor, 4/17/2023(o)(p)	3 Month LIBOR	Services: Business	19,535		19,335	17,582

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2020

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)	Fair Value(c)
Moss Holding Company, L+650, 1.00% LIBOR Floor, 4/17/2023	3 Month LIBOR	Services: Business	1,321	1,321	1,189
Moss Holding Company, 0.50% Unfunded, 4/17/2023	None	Services: Business	911	—	(91)
NewsCycle Solutions, Inc., L+700, 1.00% LIBOR Floor, 12/29/2022(o)(p)	3 Month LIBOR	Media: Advertising, Printing & Publishing	14,420	14,343	14,204
One Call Corp., L+525, 1.00% LIBOR Floor, 11/25/2022(o)	3 Month LIBOR	Healthcare & Pharmaceuticals	3,872	3,748	3,611
Optio Rx, LLC, L+700, 0.00% LIBOR Floor, 6/28/2024(o)(p)	1 Month LIBOR	Healthcare & Pharmaceuticals	19,900	19,900	19,402
Optio Rx, LLC, L+1000, 0.00% LIBOR Floor, 6/28/2024(p)	1 Month LIBOR	Healthcare & Pharmaceuticals	2,515	2,490	2,691
Palmetto Solar, LLC, 12.00%, 12/12/2024(o)	None	High Tech Industries	11,588	11,155	11,472
Palmetto Solar, LLC, 0.75% Unfunded, 12/12/2021	None	High Tech Industries	8,412	—	(84)
PFS Holding Corp., L+350, 1.00% LIBOR Floor, 1/31/2021(o)(r)	3 Month LIBOR	Retail	3,097	2,699	13
PH Beauty Holdings III. Inc., L+500, 0.00% LIBOR Floor, 9/28/2025(o)	2 Month LIBOR	Consumer Goods: Non-Durable	4,851	4,813	4,535
Pixelle Specialty Solutions LLC, L+650, 1.00% LIBOR Floor, 10/31/2024(o)	1 Month LIBOR	Forest Products & Paper	20,381	20,001	20,305
Plano Molding Company, LLC, L+750, 1.00% LIBOR Floor, 5/12/2021(o)(v)	3 Month LIBOR	Consumer Goods: Non-Durable	5,978	5,963	5,679
Plano Molding Company, LLC, L+900, 1.00% LIBOR Floor, 5/11/2022(o)	3 Month LIBOR	Consumer Goods: Non-Durable	728	722	721
Polymer Additives, Inc., L+600, 0.00% LIBOR Floor, 7/31/2025(o)	6 Month LIBOR	Chemicals, Plastics & Rubber	19,650	19,351	15,597
Polymer Process Holdings, Inc., L+600, 0.00% LIBOR Floor, 5/1/2026(o)	1 Month LIBOR	Chemicals, Plastics & Rubber	19,738	19,403	19,047
SCIH Salt Intermediate Holdings Inc., L+450, 1.00% LIBOR Floor, 3/16/2027(p)	3 Month LIBOR	Chemicals, Plastics & Rubber	4,988	4,940	4,997
Securus Technologies Holdings, Inc., L+450, 1.00% LIBOR Floor, 11/1/2024(o)	6 Month LIBOR	Telecommunications	3,959	3,002	3,959
SEK Holding Co LLC, L+1150, 1.00% LIBOR Floor, 3/14/2022(o)(v)	1 Month LIBOR	Banking, Finance, Insurance & Real Estate	15,835	15,644	14,616
Sequoia Healthcare Management, LLC, 12.75%, 8/21/2023(o)(p)(r)	None	Healthcare & Pharmaceuticals	8,525	8,457	6,905
SIMR, LLC, L+1700, 2.00% LIBOR Floor, 9/7/2023(o)(r)(s)(v)	1 Month LIBOR	Healthcare & Pharmaceuticals	15,872	15,282	12,658
Smart & Final Inc., L+675, 0.00% LIBOR Floor, 6/20/2025(o)	1 Month LIBOR	Retail	7,855	7,252	7,894
Software Luxembourg Acquisitions S.À.R.L., L+750, 1.00% LIBOR Floor, 4/27/2025(h)(o)(p)	3 Month LIBOR	High Tech Industries	3,011	2,900	2,898
Software Luxembourg Acquisitions S.À.R.L., L+750, 1.00% LIBOR Floor, 12/27/2024(h)	3 Month LIBOR	High Tech Industries	807	796	792
Sorenson Communications, LLC, L+650, 0.00% LIBOR Floor, 4/30/2024(o)	3 Month LIBOR	Telecommunications	11,840	11,525	11,848
Spinal USA, Inc. / Precision Medical Inc., L+950, 6/30/2021(o)	12 Month LIBOR	Healthcare & Pharmaceuticals	12,593	12,504	11,711
Spinal USA, Inc. / Precision Medical Inc., L+950, 6/30/2021(o)(v)	12 Month LIBOR	Healthcare & Pharmaceuticals	1,087	1,087	1,010
Spinal USA, Inc. / Precision Medical Inc., L+950, 6/30/2021(o)(v)	12 Month LIBOR	Healthcare & Pharmaceuticals	572	493	532
Stats Intermediate Holdings, LLC, L+525, 0.00% LIBOR Floor, 7/12/2026(o)	1 Month LIBOR	High Tech Industries	9,925	9,737	9,789
Telestream Holdings Corp., L+645, 1.00% LIBOR Floor, 3/24/2022(k)(o)	3 Month LIBOR	High Tech Industries	8,700	8,633	8,700
Tenere Inc., L+850, 1.00% LIBOR Floor, 5/5/2025(o)(p)	3 Month LIBOR	Capital Equipment	12,080	12,005	12,080
Tensar Corp., L+475, 1.00% LIBOR Floor, 7/9/2021(o)	3 Month LIBOR	Chemicals, Plastics & Rubber	12,876	12,695	12,619
The Pasha Group, L+750, 1.00% LIBOR Floor, 1/26/2023(o)(p)	2 Month LIBOR	Transportation: Cargo	4,825	4,748	4,656
The Pay-O-Matic Corp., L+900, 1.00% LIBOR Floor, 4/5/2021(g)(o)	3 Month LIBOR	Services: Consumer	7,952	7,936	7,952
Therapure Biopharma Inc., L+875, 0.50% LIBOR Floor, 12/1/2021(h)(o)	1 Month LIBOR	Healthcare & Pharmaceuticals	12,974	12,956	14,238
Volta Charging, LLC, 12.00%, 6/19/2024(o)	None	Media: Diversified & Production	11,250	11,225	11,250

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2020

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)		Cost(d)	Fair Value(c)
Volta Charging, LLC, 12.00%, 6/19/2024(o)	None	Media: Diversified & Production	10,000		10,000	10,000
Volta Charging, LLC, 0.00% Unfunded, 6/19/2021(q)	None	Media: Diversified & Production	750		(24)	—
West Dermatology Management Holdings, LLC, L+600, 1.00% LIBOR Floor, 2/11/2025(o)(p)	3 Month LIBOR	Healthcare & Pharmaceuticals	9,479		9,402	8,958
West Dermatology Management Holdings, LLC, 0.75% Unfunded, 2/11/2022	None	Healthcare & Pharmaceuticals	8,840		(35)	(44)
West Dermatology Management Holdings, LLC, L+600, 1.00% LIBOR Floor, 2/11/2025	3 Month LIBOR	Healthcare & Pharmaceuticals	1,657		1,644	1,595
Winebow Holdings, Inc., L+375, 1.00% LIBOR Floor, 7/1/2021(o)(p)	1 Month LIBOR	Beverage, Food & Tobacco	5,952		5,660	5,558
Wok Holdings Inc., L+625, 0.00% LIBOR Floor, 3/1/2026(o)	1 Month LIBOR	Beverage, Food & Tobacco	12,805		12,657	11,797
Woodstream Corp., L+625, 1.00% LIBOR Floor, 5/29/2022(o)	1 Month LIBOR	Consumer Goods: Non-Durable	9,218		9,218	9,218
Total Senior Secured First Lien Debt					1,297,754	1,232,505
Senior Secured Second Lien Debt - 18.7%
Access CIG, LLC, L+775, 0.00% LIBOR Floor, 2/27/2026(o)(p)	3 Month LIBOR	Services: Business	17,250		17,135	16,387
Albany Molecular Research, Inc., L+700, 1.00% LIBOR Floor, 8/30/2025(o)	3 Month LIBOR	Healthcare & Pharmaceuticals	10,000		9,858	9,925
American Residential Services LLC, L+800, 1.00% LIBOR Floor, 12/31/2022(o)	1 Month LIBOR	Construction & Building	5,180		5,161	5,180
Carestream Health, Inc., L+950, 1.00% LIBOR Floor, 6/7/2021(o)(p)(v)	6 Month LIBOR	Healthcare & Pharmaceuticals	11,041		11,041	10,489
Country Fresh Holdings, LLC, L+850, 1.00% LIBOR Floor, 4/29/2024(o)(v)	3 Month LIBOR	Beverage, Food & Tobacco	2,186		2,186	1,552
Dayton Superior Corp., L+700, 2.00% LIBOR Floor, 12/4/2024(o)	3 Month LIBOR	Construction & Building	1,496		1,496	1,481
Deluxe Entertainment Services, Inc., L+850, 1.00% LIBOR Floor, 9/25/2024(o)(r)(s)(v)	3 Month LIBOR	Media: Diversified & Production	10,206		10,017	3,878
Global Tel*Link Corp., L+825, 0.00% LIBOR Floor, 11/29/2026(o)(p)	1 Month LIBOR	Telecommunications	11,500		11,327	11,428
LSCS Holdings, Inc., L+825, 0.00% LIBOR Floor, 3/16/2026(o)	6 Month LIBOR	Services: Business	11,891		11,675	10,404
Medical Solutions Holdings, Inc., L+838, 1.00% LIBOR Floor, 6/16/2025(o)	3 Month LIBOR	Healthcare & Pharmaceuticals	10,000		9,889	9,250
MedPlast Holdings, Inc., L+775, 0.00% LIBOR Floor, 7/2/2026(o)	1 Month LIBOR	Healthcare & Pharmaceuticals	6,750		6,696	5,982
Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023(o)(p)	6 Month LIBOR	Services: Business	7,000		6,963	6,860
Niacet Corp., E+875, 1.00% EURIBOR Floor, 8/1/2024(h)	1 Month EURIBOR	Chemicals, Plastics & Rubber	€	6,263	6,698	7,304
Patterson Medical Supply, Inc., L+1050, 1.00% LIBOR Floor, 8/28/2023(o)(v)	3 Month LIBOR	Healthcare & Pharmaceuticals	14,160		14,094	13,239
PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023(o)	3 Month LIBOR	Chemicals, Plastics & Rubber	10,000		9,885	8,750
PFS Holding Corp., L+725, 1.00% LIBOR Floor, 1/31/2022(r)	3 Month LIBOR	Retail	4,998		4,155	—
Premiere Global Services, Inc., L+950, 1.00% LIBOR Floor, 6/6/2024(o)(v)	3 Month LIBOR	Telecommunications	3,330		3,244	1,715
Securus Technologies Holdings, Inc., L+825, 1.00% LIBOR Floor, 11/1/2025(o)	6 Month LIBOR	Telecommunications	2,942		2,918	2,667
TMK Hawk Parent, Corp., L+800, 1.00% LIBOR Floor, 8/28/2025(o)	1 Month LIBOR	Services: Business	13,393		13,151	9,542
Winebow Holdings, Inc., L+750, 1.00% LIBOR Floor, 1/2/2022(o)(r)	1 Month LIBOR	Beverage, Food & Tobacco	12,823		12,415	9,008
Zest Acquisition Corp., L+750, 1.00% LIBOR Floor, 3/14/2026(o)(p)	3 Month LIBOR	Healthcare & Pharmaceuticals	15,000		14,882	13,388
Zywave Inc., L+900, 1.00% LIBOR Floor, 11/17/2023(o)	3 Month LIBOR	High Tech Industries	3,355		3,316	3,355
Total Senior Secured Second Lien Debt					188,202	161,784

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2020

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)	Fair Value(c)
Collateralized Securities and Structured Products - Equity - 1.3%
APIDOS CLO XVI Subordinated Notes, 0.00% Estimated Yield, 1/19/2025(h)	(f)	Diversified Financials	9,000	3,041	1,365
CENT CLO 19 Ltd. Subordinated Notes, 0.00% Estimated Yield, 10/29/2025(h)	(f)	Diversified Financials	2,000	1,161	126
Galaxy XV CLO Ltd. Class A Subordinated Notes, 5.76% Estimated Yield, 4/15/2025(h)	(f)	Diversified Financials	4,000	2,099	1,364
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan, 11.84% Estimated Yield, 2/2/2026(h)	(f)	Diversified Financials	10,000	9,200	8,364
Total Collateralized Securities and Structured Products - Equity				15,501	11,219
Unsecured Debt - 0.5%
WPLM Acquisition Corp., 15.00%, 11/24/2025(v)	None	Media: Advertising, Printing & Publishing	5,000	4,912	4,750
Total Unsecured Debt				4,912	4,750
Equity - 12.3%
1244301 B.C. LTD., Common Shares(q)		Chemicals, Plastics & Rubber	807,268 Units	—	—
ACNR Holdings, Inc., Common Stock(q)		Metals & Mining	6,018 Units	90	69
ACNR Holdings, Inc., Preferred Stock(q)		Metals & Mining	1,890 Units	26	26
American Clinical Solutions LLC, Class A Membership Interests(q)(s)		Healthcare & Pharmaceuticals	6,030,384 Units	1,658	663
Anthem Sports and Entertainment Inc., Class A Preferred Stock Warrants(q)		Media: Diversified & Production	769 Units	205	103
Anthem Sports and Entertainment Inc., Class B Preferred Stock Warrants(q)		Media: Diversified & Production	135 Units	—	—
Anthem Sports and Entertainment Inc., Common Stock Warrants(q)		Media: Diversified & Production	2,508 Units	—	—
APC Parent, Inc., Common Stock(q)		Automotive	425,218 Units	3,716	5,498
APC Parent, Inc., Warrants(q)		Automotive	6,268 Units	—	—
ARC Financial Partners, LLC, Membership Interests (25% ownership)(q)		Metals & Mining	N/A	—	—
Ascent Resources - Marcellus, LLC, Common Shares(q)		Energy: Oil & Gas	511,255 Units	1,642	456
Ascent Resources - Marcellus, LLC, Warrants(q)		Energy: Oil & Gas	132,367 Units	13	12
BCP Great Lakes Fund LP, Partnership Interests (31.7% ownership)(h)(t)		Diversified Financials	N/A	12,890	12,650
Carestream Health Holdings, Inc., Warrants(q)		Healthcare & Pharmaceuticals	233 Units	565	580
CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend(u)		Healthcare & Pharmaceuticals	2,727,273 Units	5,544	6,273
CION SOF Funding, LLC, Membership Interests (87.5% ownership)(h)(t)		Diversified Financials	N/A	31,289	28,551
Conisus Holdings, Inc., Series B Preferred Stock, 12% Dividend(s)(u)		Healthcare & Pharmaceuticals	12,677,833 Units	14,578	15,223
Conisus Holdings, Inc., Common Stock(q)(s)		Healthcare & Pharmaceuticals	4,914,556 Units	200	6,723
Country Fresh Holdings, LLC, Common Stock(q)		Beverage, Food & Tobacco	2,985 Units	5,249	—
Dayton HoldCo, LLC, Common Stock(q)		Construction & Building	37,264 Units	4,136	6,816
DBI Investors, Inc., Series A1 Preferred Stock(q)		Retail	20,000 Units	802	340
DBI Investors, Inc., Series B Preferred Stock(q)		Retail	4,183 Units	410	—
DBI Investors, Inc., Series A Preferred Stock(q)		Retail	1,396 Units	140	—
DBI Investors, Inc., Common Stock(q)		Retail	39,423 Units	—	—
DBI Investors, Inc., Reallocation Rights(q)		Retail	7,500 Units	—	—
DESG Holdings, Inc., Common Stock(j)(q)(s)		Media: Diversified & Production	1,268,143 Units	13,675	—
HDNet Holdco LLC, Preferred Unit Call Option(q)		Media: Diversified & Production	1 Unit	—	—
Independent Pet Partners Intermediate Holdings, LLC, Class A Preferred Units(q)		Retail	1,000,000 Units	1,000	—
Independent Pet Partners Intermediate Holdings, LLC, Warrants(q)		Retail	155,880 Units	—	—

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2020

(in thousands)


Portfolio Company(a)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)		Fair Value(c)

Longview Intermediate Holdings C, LLC, Common Shares(q)(s)	Energy: Oil & Gas	589,487 Units	2,524		7,821
Mooregate ITC Acquisition, LLC, Class A Units(q)	High Tech Industries	500 Units	563		74
Mount Logan Capital Inc., Common Stock(h)(i)(s)	Banking, Finance, Insurance & Real Estate	980,284 Units	3,335		2,134
NS NWN Acquisition, LLC, Voting Units(q)	High Tech Industries	346 Units	394		507
NS NWN Acquisition, LLC, Class A Preferred Units(q)	High Tech Industries	111 Units	111		332
NSG Co-Invest (Bermuda) LP, Partnership Interests(h)(q)	Consumer Goods: Durable	1,575 Units	1,000		154
Palmetto Clean Technology, Inc., Warrants(q)	High Tech Industries	693,387 Units	472		430
Rhino Energy LLC, Warrants(q)	Metals & Mining	170,972 Units	280		—
SIMR Parent, LLC, Class B Common Units(q)(s)	Healthcare & Pharmaceuticals	12,283,163 Units	8,002		—
Software Luxembourg Holding S.A., Class A Common Stock(h)(q)	High Tech Industries	28,202 Units	4,536		4,653
Software Luxembourg Holding S.A., Class B Warrants(h)(q)	High Tech Industries	7,023 Units	220		221
Software Luxembourg Holding S.A., Class A Warrants(h)(q)	High Tech Industries	3,512 Units	117		117
Software Luxembourg Holding S.A., Class B Common Stock(h)(q)	High Tech Industries	2,388 Units	384		394
Snap Fitness Holdings, Inc., Class A Stock(q)(s)	Services: Consumer	9,858 Units	3,078		3,112
Snap Fitness Holdings, Inc., Warrants(q)(s)	Services: Consumer	3,996 Units	1,247		1,262
Spinal USA, Inc. / Precision Medical Inc., Warrants(q)	Healthcare & Pharmaceuticals	14,181,915 Units	5,806		—
Tenere Inc., Warrants(q)	Capital Equipment	N/A	161		1,429
Total Equity			130,058		106,623
Short Term Investments - 6.1%(m)
First American Treasury Obligations Fund, Class Z Shares, 0.04%(n)			53,024		53,024
Total Short Term Investments			53,024		53,024
TOTAL INVESTMENTS - 181.0%			$	1,689,451	1,569,905
LIABILITIES IN EXCESS OF OTHER ASSETS - (81.0%)					(702,686)
NET ASSETS - 100%					$	867,219

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. Unless specifically identified in note v. below, investments do not contain a paid-in-kind, or PIK, interest provision.

b.The 1, 2, 3, 6 and 12 month London Interbank Offered Rate, or LIBOR, rates were 0.15%, 0.19%, 0.23%, 0.26% and 0.36%, respectively, as of September 30, 2020. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of September 30, 2020, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to September 30, 2020. The 1 month Euro Interbank Offered Rate, or EURIBOR, rate was (0.57%) as of September 30, 2020.

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.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.As a result of an arrangement between the Company and the other lenders in the syndication, the Company is entitled to less interest than the stated interest rate of this loan, which is reflected in this schedule, in exchange for a higher payment priority.

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 September 30, 2020, 92.0% of the Company’s total assets represented qualifying assets.

i.Fair value determined using level 1 inputs.

j.Position or a portion thereof unsettled as of September 30, 2020.

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2020

(in thousands)

k.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 the other lenders in the syndication in exchange for a lower payment priority.

l.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 residual amounts.

m.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.

n.7-day effective yield as of September 30, 2020.

o.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 September 30, 2020 (see Note 8).

p.Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, Murray Hill Funding II, LLC, or Murray Hill Funding II, and was pledged as collateral supporting the amounts outstanding under the repurchase agreement with UBS AG, or UBS, as of September 30, 2020 (see Note 8).

q.Non-income producing security.

r.Investment was on non-accrual status as of September 30, 2020.

s.Investment determined to be an affiliated investment as defined in the 1940 Act as the Company owns between 5% and 25% of the portfolio company’s outstanding voting securities but does not control the portfolio company. Fair value as of December 31, 2019 and September 30, 2020, along with transactions during the nine months ended September 30, 2020 in these affiliated investments are as follows:


			Nine Months Ended September 30, 2020								Nine Months Ended September 30, 2020
Non-Controlled, Affiliated Investments	Fair Value at December 31, 2019		Gross Additions (Cost)(1)		Gross Reductions (Cost)(2)		Net Unrealized (Loss) Gain		Fair Value at September 30, 2020		Net Realized Gain (Loss)		Interest Income(3)		Dividend Income
American Clinical Solutions LLC
Tranche I Term Loan	$	3,395	$	24	$	—	$	(287)	$	3,132	$	—	$	212	$	—
First Amendment Tranche I Term Loan	—		250		—		(9)		241		—		8		—
Class A Membership Interests	—		1,658		—		(995)		663		—		—		—
Charming Charlie, LLC
First Lien Term Loan B1	—		—		—		—		—		—		—		—
First Lien Term Loan B2	—		—		—		—		—		—		(1)		—
Vendor Payment Financing	472		7		(104)		(25)		350		—		7		—
Conisus Holdings, Inc.
Series B Preferred Stock	13,270		1,363		—		590		15,223		—		—		1,363
Common Stock	1,426		—		—		5,297		6,723		—		—		—
DESG Holdings, Inc.
Bridge Loan	—		3,253		—		249		3,502		—		35		—
First Lien Term Loan	28,978		789		(9,330)		(1,072)		19,365		—		1,490		—
Second Lien Term Loan	9,717		342		—		(6,181)		3,878		—		786		—
Common Stock	14,763		13		—		(14,776)		—		—		—		—
F+W Media, Inc.
First Lien Term Loan B-1	—		—		(11)		11		—		—		—		—
Lift Brands, Inc.
Term Loan A	—		23,642		—		236		23,878		—		263		—
Term Loan B	—		4,634		—		(6)		4,628		—		119		—
Term Loan C	—		4,653		—		(6)		4,647		—		32		—
Longview Power, LLC
First Lien Term Loan B-1	—		595		(6)		1,795		2,384		—		47		—
Longview Intermediate Holdings C, LLC
Common Stock	—		2,524		—		5,297		7,821		—		—		—
Mount Logan Capital Inc.
Common Stock	2,505		—		—		(371)		2,134		—		—		29
Petroflow Energy Corp.
First Lien Term Loan	10		—		(223)		213		—		(211)		—		—
SIMR, LLC
First Lien Term Loan	14,205		429		—		(1,976)		12,658		—		1,224		—
SIMR Parent, LLC
Class B Common Units	3,980		—		—		(3,980)		—		—		—		—
Snap Fitness Holdings, Inc.
Class A Stock	—		3,078		—		34		3,112		—		—		—
Warrants	—		1,247		—		15		1,262		—		—		—
Totals	$	92,721	$	48,501	$	(9,674)	$	(15,947)	$	115,601	$	(211)	$	4,222	$	1,392

(1)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2020

(in thousands)

(2)Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.

(3)Includes PIK interest income.

t.Investment determined to be a controlled investment as defined in the 1940 Act as the Company is deemed to exercise a controlling influence over the management or policies of the portfolio company due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of such portfolio company. Fair value as of December 31, 2019 and September 30, 2020, along with transactions during the nine months ended September 30, 2020 in these controlled investments are as follows:


			Nine Months Ended September 30, 2020								Nine Months Ended September 30, 2020
Controlled Investments	Fair Value at December 31, 2019		Gross Additions (Cost)(1)		Gross Reductions (Cost)(2)		Net Unrealized (Loss) Gain		Fair Value at September 30, 2020		Net Realized Gain (Loss)		Interest Income(3)		Dividend Income
BCP Great Lakes Fund LP
Membership Interests	$	14,238	$	924	$	(2,242)	$	(270)	$	12,650	$	—	$	—	$	785
CION SOF Funding, LLC
Membership Interests	31,265		—		—		(2,714)		28,551		—		—		3,518
Totals	$	45,503	$	924	$	(2,242)	$	(2,984)	$	41,201	$	—	$	—	$	4,303

(3)Includes PIK interest income.

u.For the nine months ended September 30, 2020, non-cash dividend income of $1,363 and $405 was recorded on the Company's investment in Conisus Holdings, Inc. and CHC Medical Partners, Inc., respectively.

v.As of September 30, 2020, 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
Portfolio Company	Investment Type	Cash		PIK		All-in-Rate
Anthem Sports & Entertainment Inc.	Senior Secured First Lien Debt	7.75	%	2.75	%	10.50	%
Cadence Aerospace, LLC	Senior Secured First Lien Debt	4.25	%	5.25	%	9.50	%
Carestream Health, Inc.	Senior Secured Second Lien Debt	2.50	%	8.00	%	10.50	%
Charming Charlie, LLC	Senior Secured First Lien Debt	8.00	%	5.00	%	13.00	%
Charming Charlie, LLC	Senior Secured First Lien Debt	4.00	%	9.00	%	13.00	%
CHC Solutions Inc.	Senior Secured First Lien Debt	8.00	%	4.00	%	12.00	%
CircusTrix Holdings, LLC	Senior Secured First Lien Debt	—		6.50	%	6.50	%
Country Fresh Holdings, LLC	Senior Secured First Lien Debt	8.00	%	4.00	%	12.00	%
Country Fresh Holdings, LLC	Senior Secured Second Lien Debt	—		9.50	%	9.50	%
David's Bridal, LLC	Senior Secured First Lien Debt	6.00	%	5.00	%	11.00	%
David's Bridal, LLC	Senior Secured First Lien Debt	6.00	%	1.00	%	7.00	%
Deluxe Entertainment Services, Inc.	Senior Secured First Lien Debt	6.00	%	1.50	%	7.50	%
Deluxe Entertainment Services, Inc.	Senior Secured Second Lien Debt	7.00	%	2.50	%	9.50	%
F+W Media, Inc.	Senior Secured First Lien Debt	—		8.00	%	8.00	%
Hilliard, Martinez & Gonzales, LLP	Senior Secured First Lien Debt	—		20.00	%	20.00	%
Jenny C Acquisition, Inc.	Senior Secured First Lien Debt	—		14.25	%	14.25	%
LAV Gear Holdings, Inc.	Senior Secured First Lien Debt	3.50	%	5.00	%	8.50	%
Lift Brands, Inc.	Senior Secured First Lien Debt	—		9.50	%	9.50	%
Mimeo.com, Inc.	Revolving Term Loan	8.00	%	10.00	%	18.00	%
Patterson Medical Supply, Inc.	Senior Secured Second Lien Debt	1.00	%	10.50	%	11.50	%

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2020

(in thousands)


		Interest Rate
Portfolio Company	Investment Type	Cash	PIK	All-in-Rate








Plano Molding Company, LLC	Senior Secured First Lien Debt	7.00%	1.50%	8.50%
Premiere Global Services, Inc.	Senior Secured Second Lien Debt	0.50%	10.00%	10.50%
SEK Holding Co LLC	Senior Secured First Lien Debt	9.00%	3.50%	12.50%
SIMR, LLC	Senior Secured First Lien Debt	12.00%	7.00%	19.00%
Spinal USA, Inc. / Precision Medical Inc.	Senior Secured First Lien Debt	—	10.47%	10.47%
WPLM Acquisition Corp.	Unsecured Note	—	15.00%	15.00%

w.The ultimate interest earned on this loan will be determined based on the portfolio company’s EBITDA at a specified trigger event.

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments

December 31, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)		Cost(d)		Fair Value(c)
Senior Secured First Lien Debt - 141.9%
Academy, Ltd., L+400, 1.00% LIBOR Floor, 7/1/2022(p)	1 Month LIBOR	Retail	$	14,236	$	12,656	$	11,815
ACProducts, Inc., L+550, 0.00% LIBOR Floor, 2/15/2024(p)	1 Month LIBOR	Construction & Building	4,906		4,693		4,900
Adams Publishing Group, LLC, L+750, 1.00% LIBOR Floor, 7/2/2023(o)(q)	3 Month LIBOR	Media: Advertising, Printing & Publishing	13,353		13,245		13,286
Adams Publishing Group, LLC, 0.38% Unfunded, 7/2/2020(o)	None	Media: Advertising, Printing & Publishing	1,600		—		(8)
Adapt Laser Acquisition, Inc., L+800, 1.00% LIBOR Floor, 12/31/2023(o)	3 Month LIBOR	Capital Equipment	11,640		11,640		10,956
Adapt Laser Acquisition, Inc., 0.50% Unfunded, 12/31/2023	None	Capital Equipment	2,000		—		(118)
Aegis Toxicology Sciences Corp., L+550, 1.00% LIBOR Floor, 5/9/2025(p)	3 Month LIBOR	Healthcare & Pharmaceuticals	9,875		9,706		9,357
AIS Holdco, LLC, L+500, 0.00% LIBOR Floor, 8/15/2025(p)	3 Month LIBOR	Banking, Finance, Insurance & Real Estate	5,382		5,322		5,005
Alchemy US Holdco 1, LLC, L+550,10/10/2025(p)	1 Month LIBOR	Construction & Building	7,800		7,697		7,685
Allen Media Broadcasting LLC, L+625, 1.00% LIBOR Floor, 7/3/2024(o)(q)	2 Month LIBOR	Media: Diversified & Production	24,688		24,070		25,058
Allen Media, LLC, L+650, 1.00% LIBOR Floor, 8/30/2023(o)(p)(q)(r)	3 Month LIBOR	Media: Diversified & Production	67,124		65,820		67,795
ALM Media, LLC, L+650, 1.00% LIBOR Floor, 11/25/2024(o)(q)	3 Month LIBOR	Media: Advertising, Printing & Publishing	20,000		19,607		19,600
AMCP Staffing Intermediate Holdings III, LLC, L+675, 1.50% LIBOR Floor, 9/24/2025(r)	3 Month LIBOR	Services: Business	10,000		9,943		9,950
AMCP Staffing Intermediate Holdings III, LLC, L+675, 1.50% LIBOR Floor, 9/24/2025	3 Month LIBOR	Services: Business	539		539		536
AMCP Staffing Intermediate Holdings III, LLC, 0.50% Unfunded, 9/24/2025	None	Services: Business	1,059		—		(5)
American Clinical Solutions LLC, 7.00%, 12/31/2022	None	Healthcare & Pharmaceuticals	3,500		3,395		3,395
American Clinical Solutions LLC, 2.00%, 12/31/2022(x)	None	Healthcare & Pharmaceuticals	6,000		4,192		4,192
American Media, LLC, L+775, 0.00% LIBOR Floor, 12/31/2023(o)	3 Month LIBOR	Media: Advertising, Printing & Publishing	15,471		15,146		15,316
American Media, LLC, L+775, 0.00% LIBOR Floor, 12/31/2023	3 Month LIBOR	Media: Advertising, Printing & Publishing	1,574		1,539		1,559
American Media, LLC, 0.50% Unfunded, 12/31/2023	None	Media: Advertising, Printing & Publishing	128		—		(1)
American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021(o)(p)(q)(r)	3 Month LIBOR	Telecommunications	19,549		18,570		11,631
Analogic Corp., L+600, 1.00% LIBOR Floor, 6/21/2024(q)(r)	1 Month LIBOR	Healthcare & Pharmaceuticals	24,321		23,928		24,078
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024(o)(x)	3 Month LIBOR	Media: Diversified & Production	12,624		12,470		12,498
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024	3 Month LIBOR	Media: Diversified & Production	833		833		833
Anthem Sports & Entertainment Inc., 0.50% Unfunded, 9/9/2024	None	Media: Diversified & Production	1,333		—		—
APC Automotive Technologies, LLC, L+500, 1.00% LIBOR Floor, 5/10/2025(p)(q)	3 Month LIBOR	Automotive	8,892		8,551		8,692
APC Automotive Technologies, LLC, L+500, 1.00% LIBOR Floor, 5/10/2024(p)(q)	3 Month LIBOR	Automotive	2,780		2,624		1,321
APCO Holdings, LLC, L+550, 0.00% LIBOR Floor, 6/9/2025(p)	1 Month LIBOR	Banking, Finance, Insurance & Real Estate	10,827		10,735		10,773
Ascent Resources - Marcellus, LLC, L+650, 1.00% LIBOR Floor, 3/30/2023	1 Month LIBOR	Energy: Oil & Gas	712		712		673
Associated Asphalt Partners, LLC, L+525, 1.00% LIBOR Floor, 4/5/2024(p)	1 Month LIBOR	Construction & Building	10,738		10,599		9,973
Avison Young (USA) Inc., L+500, 0.00% LIBOR Floor, 1/31/2026(h)(p)	3 Month LIBOR	Banking, Finance, Insurance & Real Estate	9,900		9,719		9,745
Bi-Lo, LLC, L+800, 1.00% LIBOR Floor, 5/31/2024(p)(q)	2 Month LIBOR	Retail	12,864		12,535		12,639
Cadence Aerospace, LLC, L+650, 1.00% LIBOR Floor, 11/14/2023(q)(r)	3 Month LIBOR	Aerospace & Defense	30,685		30,430		30,378
Cardinal US Holdings, Inc., L+500, 1.00% LIBOR Floor, 7/31/2023(p)	3 Month LIBOR	Services: Business	8,309		7,915		8,226
CB URS Holdings Corp., L+575, 1.00% LIBOR Floor, 9/1/2024(p)(r)	1 Month LIBOR	Transportation: Cargo	16,410		16,327		14,687

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments

December 31, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)	Fair Value(c)
Central Security Group, Inc., L+563, 1.00% LIBOR Floor, 10/6/2021(p)(r)	1 Month LIBOR	Services: Consumer	19,416	19,424	16,892
Charming Charlie LLC, 20.00%, 5/15/2020(t)(u)	None	Retail	845	754	472
Charming Charlie LLC, L+1200, 1.00% LIBOR Floor, 4/24/2023(t)(u)(x)	1 Month LIBOR	Retail	2,936	—	—
Charming Charlie LLC, L+1200, 1.00% LIBOR Floor, 4/24/2023(t)(u)(x)	1 Month LIBOR	Retail	3,595	—	—
CHC Solutions Inc., 12.00%, 7/20/2023(x)	None	Healthcare & Pharmaceuticals	7,347	7,347	7,347
CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021(q)(r)	1 Month LIBOR	Hotel, Gaming & Leisure	17,896	17,728	17,538
CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021	1 Month LIBOR	Hotel, Gaming & Leisure	2,424	2,424	2,375
CircusTrix Holdings, LLC, 1.00% Unfunded, 12/16/2021	None	Hotel, Gaming & Leisure	2,892	—	(58)
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023	3 Month LIBOR	Beverage, Food & Tobacco	694	653	694
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023	3 Month LIBOR	Beverage, Food & Tobacco	414	413	414
Country Fresh Holdings, LLC, 1.00% Unfunded, 4/29/2023	None	Beverage, Food & Tobacco	327	—	—
Crown Subsea Communications Holdings, Inc., L+600, 0.00% LIBOR Floor, 11/2/2025(p)	1 Month LIBOR	Capital Equipment	5,788	5,685	5,781
David's Bridal, LLC, L+600, 1.00% LIBOR Floor, 6/30/2023(x)	3 Month LIBOR	Retail	698	584	698
Deluxe Entertainment Services, Inc., L+650, 1.00% LIBOR Floor, 3/25/2024(j)(u)(x)	3 Month LIBOR	Media: Diversified & Production	23,656	23,656	28,978
DMT Solutions Global Corp., L+700, 0.00% LIBOR Floor, 7/2/2024(p)(r)	6 Month LIBOR	Services: Business	18,500	18,061	18,038
Eagle Family Foods Group LLC, L+650, 1.00% LIBOR Floor, 6/14/2024(r)	6 Month LIBOR	Beverage, Food & Tobacco	14,775	14,518	14,332
Entertainment Studios P&A LLC, 6.35%, 5/18/2037(l)	None	Media: Diversified & Production	14,448	14,346	13,942
Entertainment Studios P&A LLC, 5.00%, 5/18/2037(l)	None	Media: Diversified & Production	—	—	2,381
EnTrans International, LLC, L+600, 0.00% LIBOR Floor, 11/1/2024(p)(r)	1 Month LIBOR	Capital Equipment	27,750	27,512	26,918
ES Chappaquiddick LLC, 10.00%, 5/18/2022	None	Media: Diversified & Production	925	925	937
Evergreen Skills Lux S.À.R.L., L+475, 1.00% LIBOR Floor, 4/28/2021(h)(p)	3 Month LIBOR	High Tech Industries	10,077	9,810	7,860
Extreme Reach, Inc., L+750, 0.00% LIBOR Floor, 3/29/2024(q)	1 Month LIBOR	Media: Diversified & Production	17,126	17,047	17,040
Extreme Reach, Inc., 0.50% Unfunded, 3/29/2024	None	Media: Diversified & Production	1,744	(1)	(9)
F+W Media, Inc., L+650, 1.50% LIBOR Floor, 5/24/2022(t)(u)(x)	1 Month LIBOR	Media: Diversified & Production	1,176	1,125	—
Flavors Holdings Inc., L+575, 1.00% LIBOR Floor, 4/3/2020(o)(q)	3 Month LIBOR	Consumer Goods: Non-Durable	13,388	13,187	13,288
Foundation Consumer Healthcare, LLC, L+550, 1.00% LIBOR Floor, 11/2/2023(o)(q)(r)	3 Month LIBOR	Healthcare & Pharmaceuticals	46,523	46,104	46,523
Foundation Consumer Healthcare, LLC, 0.50% Unfunded, 11/2/2023	None	Healthcare & Pharmaceuticals	4,211	(20)	—
Genesis Healthcare, Inc., L+600, 0.50% LIBOR Floor, 3/6/2023(h)(o)(r)	1 Month LIBOR	Healthcare & Pharmaceuticals	30,000	29,783	29,475
Geo Parent Corp., L+525, 0.00% LIBOR Floor, 12/19/2025(p)	1 Month LIBOR	Services: Business	14,888	14,752	14,850
Geon Performance Solutions, LLC, L+625, 1.63% LIBOR Floor, 10/25/2024(o)	1 Month LIBOR	Chemicals, Plastics & Rubber	22,414	22,259	22,414
Geon Performance Solutions, LLC, 0.50% Unfunded, 10/25/2024	None	Chemicals, Plastics & Rubber	2,586	—	—
Harland Clarke Holdings Corp., L+475, 1.00% LIBOR Floor, 11/3/2023(p)(r)	3 Month LIBOR	Services: Business	13,180	13,134	10,538
Healogics, Inc., L+425, 1.00% LIBOR Floor, 7/1/2021(p)	3 Month LIBOR	Healthcare & Pharmaceuticals	4,749	4,632	4,251
Hilliard, Martinez & Gonzales, LLP, L+1800, 2.00% LIBOR Floor, 12/17/2022(x)	1 Month LIBOR	Services: Consumer	15,000	14,850	14,850
Homer City Generation, L.P., L+1100, 1.00% LIBOR Floor, 4/5/2023(o)	3 Month LIBOR	Energy: Oil & Gas	14,444	13,953	13,812

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments

December 31, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)		Cost(d)	Fair Value(c)
HUMC Holdco, LLC, 9.00%, 6/26/2020	None	Healthcare & Pharmaceuticals	10,000		9,972	9,950
Hummel Station LLC, L+600, 1.00% LIBOR Floor, 10/27/2022(p)	1 Month LIBOR	Energy: Oil & Gas	9,761		9,456	9,224
Hyperion Materials & Technologies, Inc., L+550, 1.00% LIBOR Floor, 8/28/2026(o)	1 Month LIBOR	Chemicals, Plastics & Rubber	10,000		9,805	9,850
Independent Pet Partners Intermediate Holdings, LLC, L+900, 1.00% LIBOR Floor, 11/19/2023	3 Month LIBOR	Retail	12,064		11,892	11,672
Independent Pet Partners Intermediate Holdings, LLC, 1.00% Unfunded, 11/19/2023	None	Retail	7,852		—	(255)
Infinity Sales Group, LLC, L+1050, 1.00% LIBOR Floor, 11/23/2022(o)	1 Month LIBOR	Services: Business	6,820		6,670	6,820
InfoGroup Inc., L+500, 1.00% LIBOR Floor, 4/3/2023(p)(q)(r)	3 Month LIBOR	Media: Advertising, Printing & Publishing	15,756		15,743	14,968
Instant Web, LLC, L+650, 0.00% LIBOR Floor, 12/15/2022(o)(q)(r)	1 Month LIBOR	Media: Advertising, Printing & Publishing	37,683		37,603	36,552
Instant Web, LLC, 0.50% Unfunded, 12/15/2022	None	Media: Advertising, Printing & Publishing	2,704		—	(81)
International Seaways, Inc., L+600, 1.00% LIBOR Floor, 6/22/2022(h)(p)	1 Month LIBOR	Transportation: Cargo	6,782		6,705	6,782
Isagenix International, LLC, L+575, 1.00% LIBOR Floor, 6/14/2025(p)	3 Month LIBOR	Beverage, Food & Tobacco	13,866		13,750	11,093
Island Medical Management Holdings, LLC, L+650, 1.00% LIBOR Floor, 9/1/2022(q)	1 Month LIBOR	Healthcare & Pharmaceuticals	11,814		11,722	11,534
Jab Wireless, Inc., L+800, 0.00% LIBOR Floor, 5/2/2023(r)	1 Month LIBOR	Telecommunications	13,700		13,700	13,700
Jenny C Acquisition, Inc., L+1050, 0.00% LIBOR Floor, 10/1/2024(o)	3 Month LIBOR	Services: Consumer	9,899		9,812	9,662
JP Intermediate B, LLC, L+550, 1.00% LIBOR Floor, 11/20/2025(p)	3 Month LIBOR	Beverage, Food & Tobacco	16,152		15,841	13,730
KLO Intermediate Holdings, LLC, L+775, 1.50% LIBOR Floor, 4/7/2022(t)(x)	1 Month LIBOR	Chemicals, Plastics & Rubber	7,499		7,028	2,250
KLO Intermediate Holdings, LLC, L+775, 1.50% LIBOR Floor, 4/7/2022(t)(x)	1 Month LIBOR	Chemicals, Plastics & Rubber	4,583		4,303	458
KNB Holdings Corp., L+550, 1.00% LIBOR Floor, 4/26/2024(p)(r)	3 Month LIBOR	Consumer Goods: Durable	8,293		8,180	6,427
Labvantage Solutions Ltd., E+750, 1.00% EURIBOR Floor, 12/29/2020(h)	1 Month EURIBOR	High Tech Industries	€	3,705	4,153	4,155
Labvantage Solutions Inc., L+750, 1.00% LIBOR Floor, 12/29/2020(q)	1 Month LIBOR	High Tech Industries	3,566		3,556	3,566
LAV Gear Holdings, Inc., L+550, 1.00% LIBOR Floor, 10/31/2024(o)(q)	3 Month LIBOR	Services: Business	17,361		17,132	17,057
LAV Gear Holdings, Inc., L+550, 1.00% LIBOR Floor, 10/31/2024	3 Month LIBOR	Services: Business	4,286		4,228	4,211
LAV Gear Holdings, Inc., 1.00% Unfunded, 4/7/2021	None	Services: Business	864		(8)	(15)
LD Intermediate Holdings, Inc., L+588, 1.00% LIBOR Floor, 12/9/2022(p)	3 Month LIBOR	High Tech Industries	4,694		4,446	4,705
Lift Brands, Inc., L+700, 1.00% LIBOR Floor, 4/16/2023(o)(q)(r)(x)	3 Month LIBOR	Services: Consumer	43,321		42,649	42,130
Lift Brands, Inc., L+700, 1.00% LIBOR Floor, 4/16/2023	3 Month LIBOR	Services: Consumer	1,050		1,050	1,021
Lift Brands, Inc., 1.00% Unfunded, 4/16/2023	None	Services: Consumer	3,950		—	(109)
Longview Power, LLC, L+600, 1.00% LIBOR Floor, 4/13/2021(o)(q)	3 Month LIBOR	Energy: Oil & Gas	17,745		16,376	14,551
Manna Pro Products, LLC, L+600, 0.00% LIBOR Floor, 12/8/2023(o)	1 Month LIBOR	Retail	3,439		3,439	3,405
Manna Pro Products, LLC, 1.00% Unfunded, 5/31/2021	None	Retail	5,528		—	(55)
Mimeo.com, Inc., L+700, 1.00% LIBOR Floor, 12/21/2023(o)(r)	3 Month LIBOR	Services: Business	22,310		22,310	22,310
Mimeo.com, Inc., L+700, 1.00% LIBOR Floor, 12/21/2023	3 Month LIBOR	Services: Business	1,500		1,500	1,500
Mimeo.com, Inc., 0.25% Unfunded, 12/21/2020	None	Services: Business	10,000		—	—
Mimeo.com, Inc., 1.00% Unfunded, 12/21/2023	None	Services: Business	1,500		—	—
Moss Holding Company, L+625, 1.00% LIBOR Floor, 4/17/2023(o)(q)	3 Month LIBOR	Services: Business	19,657		19,419	19,264
Moss Holding Company, 6.25% Unfunded, 4/17/2023	None	Services: Business	106		—	(2)

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments

December 31, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)	Fair Value(c)
Moss Holding Company, 0.50% Unfunded, 4/17/2023	None	Services: Business	2,126	—	(43)
Moxie Patriot LLC, L+575, 1.00% LIBOR Floor, 12/19/2020(p)	3 Month LIBOR	Energy: Oil & Gas	9,799	9,792	9,554
Murray Energy Corp., L+725, 1.00% LIBOR Floor, 10/17/2022(t)	3 Month LIBOR	Metals & Mining	3,574	3,562	771
Murray Energy Corp., L+1100, 2.00% LIBOR Floor, 7/29/2020(p)	1 Month LIBOR	Metals & Mining	662	643	668
NewsCycle Solutions, Inc., L+700, 1.00% LIBOR Floor, 12/29/2022(q)(r)	1 Month LIBOR	Media: Advertising, Printing & Publishing	14,868	14,764	14,719
One Call Corp., L+525, 1.00% LIBOR Floor, 11/25/2022(p)	3 Month LIBOR	Healthcare & Pharmaceuticals	7,915	7,582	7,598
Palmetto Solar, LLC, 12.00%, 12/12/2024	None	High Tech Industries	858	566	835
Palmetto Solar, LLC, 0.75% Unfunded, 12/12/2021	None	High Tech Industries	19,142	—	(526)
Petroflow Energy Corp., L+800, 1.00% LIBOR Floor, 6/29/2019(o)(t)(u)(x)	1 Month LIBOR	Energy: Oil & Gas	642	223	10
PFS Holding Corp., L+350, 1.00% LIBOR Floor, 1/31/2021	3 Month LIBOR	Retail	3,097	2,738	2,079
PH Beauty Holdings III. Inc., L+500, 0.00% LIBOR Floor, 9/28/2025(p)	1 Month LIBOR	Consumer Goods: Non-Durable	4,888	4,845	4,692
Pixelle Specialty Solutions LLC, L+600, 1.00% LIBOR Floor, 10/31/2024(p)	1 Month LIBOR	Forest Products & Paper	24,775	24,244	24,217
Plano Molding Company, LLC, L+750, 1.00% LIBOR Floor, 5/12/2021(o)	1 Month LIBOR	Consumer Goods: Non-Durable	6,010	5,979	5,770
Polymer Additives, Inc., L+600, 0.00% LIBOR Floor, 7/31/2025(o)(p)	1 Month LIBOR	Chemicals, Plastics & Rubber	19,800	19,462	18,068
Polymer Process Holdings, Inc., L+600, 0.00% LIBOR Floor, 5/1/2026(p)	1 Month LIBOR	Chemicals, Plastics & Rubber	19,888	19,513	19,589
Rhino Energy LLC, L+1000, 1.00% LIBOR Floor, 12/27/2022(r)	1 Month LIBOR	Metals & Mining	9,387	9,149	8,918
Securus Technologies Holdings, Inc., L+450, 1.00% LIBOR Floor, 11/1/2024(p)	1 Month LIBOR	Telecommunications	3,990	2,897	3,940
SEK Holding Co LLC, L+1150, 0.00% LIBOR Floor, 3/14/2022(o)(x)	1 Month LIBOR	Banking, Finance, Insurance & Real Estate	15,415	15,179	14,510
Sequoia Healthcare Management, LLC, 12.75%, 8/21/2023(o)(q)	None	Healthcare & Pharmaceuticals	9,103	9,031	8,875
SIMR, LLC, L+1700, 2.00% LIBOR Floor, 9/7/2023(o)(u)(x)	1 Month LIBOR	Healthcare & Pharmaceuticals	15,091	14,853	14,205
Smart & Final Inc., L+675, 0.00% LIBOR Floor, 6/20/2025(p)	1 Month LIBOR	Retail	9,950	9,091	9,627
Sorenson Communications, LLC, L+650, 0.00% LIBOR Floor, 4/30/2024(p)	3 Month LIBOR	Telecommunications	12,536	12,089	12,473
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 6/30/2021(o)	3 Month LIBOR	Healthcare & Pharmaceuticals	12,654	12,653	12,464
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 6/30/2021(o)(x)	3 Month LIBOR	Healthcare & Pharmaceuticals	563	563	555
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 6/30/2021(o)(x)	3 Month LIBOR	Healthcare & Pharmaceuticals	542	493	533
Stats Intermediate Holdings, LLC, L+525, 0.00% LIBOR Floor, 7/12/2026(p)	3 Month LIBOR	High Tech Industries	10,000	9,789	9,775
STG-Fairway Acquisitions, Inc., L+525, 1.00% LIBOR Floor, 6/30/2022(p)(q)	1 Month LIBOR	Services: Business	3,929	3,866	3,929
Teladoc, Inc., 0.50% Unfunded, 7/14/2020(h)	None	High Tech Industries	1,250	(8)	—
Telestream Holdings Corp., L+645, 1.00% LIBOR Floor, 3/24/2022(k)(o)	2 Month LIBOR	High Tech Industries	8,769	8,668	8,593
Tenere Inc., L+1000, 1.00% LIBOR Floor, 12/23/2021(o)(q)	3 Month LIBOR	Capital Equipment	28,480	28,196	28,480
Tensar Corp., L+475, 1.00% LIBOR Floor, 7/9/2021(p)	3 Month LIBOR	Chemicals, Plastics & Rubber	12,980	12,632	12,363
The Pasha Group, L+750, 1.00% LIBOR Floor, 1/26/2023(q)	2 Month LIBOR	Transportation: Cargo	5,764	5,647	5,822
The Pay-O-Matic Corp., L+900, 0.00% LIBOR Floor, 4/5/2021(g)(o)	3 Month LIBOR	Services: Consumer	9,612	9,568	9,612
Therapure Biopharma Inc., L+875, 0.50% LIBOR Floor, 12/1/2021(h)	1 Month LIBOR	Healthcare & Pharmaceuticals	13,913	13,882	13,148
Volta Charging, LLC, 12.00%, 6/19/2024	None	Media: Diversified & Production	10,000	10,000	10,000

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments

December 31, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)		Cost(d)	Fair Value(c)
Volta Charging, LLC, 12.00%, 6/19/2024	None	Media: Diversified & Production	2,000		1,961	2,000
Volta Charging, LLC, 0.00% Unfunded, 6/19/2021(s)	None	Media: Diversified & Production	10,000		—	—
Wok Holdings Inc., L+650, 0.00% LIBOR Floor, 3/1/2026(p)	6 Month LIBOR	Beverage, Food & Tobacco	12,903		12,736	13,064
Woodstream Corp., L+600, 1.00% LIBOR Floor, 5/29/2022(r)	1 Month LIBOR	Consumer Goods: Non-Durable	9,300		9,300	9,300
Woodstream Corp., L+600, 1.00% LIBOR Floor, 5/29/2022	1 Month LIBOR	Consumer Goods: Non-Durable	559		559	559
Total Senior Secured First Lien Debt					1,388,942	1,351,767
Senior Secured Second Lien Debt - 26.1%
1A Smart Start LLC, L+825, 1.00% LIBOR Floor, 8/21/2022(o)(q)	1 Month LIBOR	High Tech Industries	13,800		13,618	13,593
Access CIG, LLC, L+775, 0.00% LIBOR Floor, 2/27/2026(q)	1 Month LIBOR	Services: Business	17,250		17,126	17,207
Albany Molecular Research, Inc., L+700, 1.00% LIBOR Floor, 8/30/2025(o)	1 Month LIBOR	Healthcare & Pharmaceuticals	10,000		9,842	9,975
American Residential Services LLC, L+800, 1.00% LIBOR Floor, 12/31/2022(o)	1 Month LIBOR	Construction & Building	5,180		5,142	5,128
Carestream Health, Inc., L+950, 1.00% LIBOR Floor, 6/7/2021(q)	1 Month LIBOR	Healthcare & Pharmaceuticals	10,662		10,662	10,102
Country Fresh Holdings, LLC, L+850, 1.00% LIBOR Floor, 4/29/2024(x)	3 Month LIBOR	Beverage, Food & Tobacco	2,028		2,028	2,028
Dayton Superior Corp., L+700, 2.00% LIBOR Floor, 12/4/2024	3 Month LIBOR	Construction & Building	1,507		1,507	1,507
Deluxe Entertainment Services Inc., L+850, 1.00% LIBOR Floor, 9/25/2024(p)(u)(x)	1 Month LIBOR	Media: Diversified & Production	9,890		9,675	9,717
EagleTree-Carbide Acquisition Corp., L+850, 1.00% LIBOR Floor, 8/28/2025(o)(q)	3 Month LIBOR	Consumer Goods: Durable	25,000		24,695	24,750
Evergreen Skills Lux S.À.R.L., L+825, 1.00% LIBOR Floor, 4/28/2022(h)(q)(t)	3 Month LIBOR	High Tech Industries	9,999		8,147	2,833
Global Tel*Link Corp., L+825, 0.00% LIBOR Floor, 11/29/2026(q)	1 Month LIBOR	Telecommunications	11,500		11,312	11,586
LSCS Holdings, Inc., L+825, 0.00% LIBOR Floor, 3/16/2026(o)	3 Month LIBOR	Services: Business	11,891		11,655	11,831
Mayfield Agency Borrower Inc., L+850, 0.00% LIBOR Floor, 3/2/2026(o)(q)(r)	1 Month LIBOR	Banking, Finance, Insurance & Real Estate	20,000		19,723	20,200
Medical Solutions Holdings, Inc., L+838, 1.00% LIBOR Floor, 6/16/2025(o)	1 Month LIBOR	Healthcare & Pharmaceuticals	10,000		9,877	9,650
MedPlast Holdings, Inc., L+775, 0.00% LIBOR Floor, 7/2/2026(r)	3 Month LIBOR	Healthcare & Pharmaceuticals	6,750		6,690	6,383
Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023(o)(q)	2 Month LIBOR	Services: Business	7,000		6,932	7,000
Niacet Corp., E+875, 1.00% EURIBOR Floor, 8/1/2024(h)	1 Month EURIBOR	Chemicals, Plastics & Rubber	€	7,489	7,985	8,314
Patterson Medical Supply, Inc., L+850, 1.00% LIBOR Floor, 8/28/2023(o)	3 Month LIBOR	Healthcare & Pharmaceuticals	13,500		13,419	11,813
PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023(o)	3 Month LIBOR	Chemicals, Plastics & Rubber	10,000		9,860	9,600
PFS Holding Corp., L+725, 1.00% LIBOR Floor, 1/31/2022(p)(t)	3 Month LIBOR	Retail	4,998		4,272	—
Premiere Global Services, Inc., L+950, 1.00% LIBOR Floor, 6/6/2024(o)(x)	3 Month LIBOR	Telecommunications	3,070		2,960	1,074
Securus Technologies Holdings, Inc., L+825, 1.00% LIBOR Floor, 11/1/2025(q)	1 Month LIBOR	Telecommunications	2,942		2,916	2,836
STG-Fairway Acquisitions, Inc., L+925, 1.00% LIBOR Floor, 6/30/2023(o)	1 Month LIBOR	Services: Business	5,000		4,957	5,000
TMK Hawk Parent, Corp., L+800, 1.00% LIBOR Floor, 8/28/2025(o)	3 Month LIBOR	Services: Business	13,393		13,122	12,924
TouchTunes Interactive Networks, Inc, L+825, 1.00% LIBOR Floor, 5/29/2022(q)	1 Month LIBOR	Hotel, Gaming & Leisure	5,226		5,201	5,226
Winebow Holdings, Inc., L+750, 1.00% LIBOR Floor, 1/2/2022(o)	1 Month LIBOR	Beverage, Food & Tobacco	12,823		12,689	10,467
Zest Acquisition Corp., L+750, 1.00% LIBOR Floor, 3/14/2026(q)	1 Month LIBOR	Healthcare & Pharmaceuticals	15,000		14,870	14,063
Zywave Inc., L+900, 1.00% LIBOR Floor, 11/17/2023(o)	3 Month LIBOR	High Tech Industries	3,445		3,398	3,446
Total Senior Secured Second Lien Debt					264,280	248,253

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments

December 31, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)	Fair Value(c)
Collateralized Securities and Structured Products - Debt - 0.7%
Deutsche Bank AG Frankfurt CRAFT 2015-2 Class Credit Linked Note, L+925, 1/16/2022(h)	3 Month LIBOR	Diversified Financials	7,212	7,212	7,212
Total Collateralized Securities and Structured Products - Debt				7,212	7,212
Collateralized Securities and Structured Products - Equity - 1.5%
APIDOS CLO XVI Subordinated Notes, 6.39% Estimated Yield, 1/19/2025(h)	(f)	Diversified Financials	9,000	3,762	2,125
CENT CLO 19 Ltd. Subordinated Notes, 37.72% Estimated Yield, 10/29/2025(h)	(f)	Diversified Financials	2,000	1,163	782
Galaxy XV CLO Ltd. Class A Subordinated Notes, 6.78% Estimated Yield, 4/15/2025(h)	(f)	Diversified Financials	4,000	2,229	1,730
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan, 11.84% Estimated Yield, 2/2/2026(h)	(f)	Diversified Financials	10,000	9,322	9,545
Total Collateralized Securities and Structured Products - Equity				16,476	14,182
Unsecured Debt - 0.5%
WPLM Acquisition Corp., 15.00%, 11/24/2025(x)	None	Media: Advertising, Printing & Publishing	5,000	4,901	4,900
Total Unsecured Debt				4,901	4,900
Equity - 11.5%
Anthem Sports and Entertainment Inc., Class A Preferred Stock Warrants(s)		Media: Diversified & Production	769 Units	205	226
Anthem Sports and Entertainment Inc., Class B Preferred Stock Warrants(s)		Media: Diversified & Production	135 Units	—	—
Anthem Sports and Entertainment Inc., Common Stock Warrants(s)		Media: Diversified & Production	2,508 Units	—	—
Ascent Resources - Marcellus, LLC, Common Shares(s)		Energy: Oil & Gas	511,255 Units	1,642	914
Ascent Resources - Marcellus, LLC, Warrants(s)		Energy: Oil & Gas	132,367 Units	13	4
Avaya Holdings Corp., Common Stock(i)(p)(s)		Telecommunications	321,260 Units	5,285	4,337
BCP Great Lakes Fund LP, Partnership Interests (31.7% ownership)(h)(v)		Diversified Financials	N/A	14,208	14,238
CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend(w)		Healthcare & Pharmaceuticals	2,727,273 Units	5,139	5,245
CION SOF Funding, LLC, Membership Interests (87.5% ownership)(h)(v)		Diversified Financials	N/A	31,289	31,265
Conisus Holdings, Inc., Series B Preferred Stock, 12% Dividend(u)(w)		Healthcare & Pharmaceuticals	12,677,833 Units	13,215	13,270
Conisus Holdings, Inc., Common Stock(s)(u)		Healthcare & Pharmaceuticals	4,914,556 Units	200	1,426
Country Fresh Holdings, LLC, Common Stock(s)		Beverage, Food & Tobacco	2,985 Units	5,249	2,618
David's Bridal, Inc., Series A Preferred Stock(s)		Retail	1,396 Units	140	141
David's Bridal, Inc., Series B Preferred Stock(s)		Retail	4,183 Units	410	410
David's Bridal, Inc., Common Stock(s)		Retail	39,423 Units	—	—
David's Bridal, Inc., Reallocation Rights(s)		Retail	7,500 Units	—	—
Dayton HoldCo, LLC, Common Stock(s)		Construction & Building	37,264 Units	4,136	7,903
DESG Holdings, Inc., Common Stock(j)(s)(u)		Media: Diversified & Production	1,268,143 Units	13,662	14,763
HDNet Holdco LLC, Preferred Unit Call Option(s)		Media: Diversified & Production	1 Unit	—	—
Independent Pet Partners Intermediate Holdings, LLC, Class A Preferred Units(s)		Retail	1,000,000 Units	1,000	950
Independent Pet Partners Intermediate Holdings, LLC, Warrants(s)		Retail	155,880 Units	—	1
Mooregate ITC Acquisition, LLC, Class A Units(s)		High Tech Industries	500 Units	563	151
Mount Logan Capital Inc., Common Stock(h)(i)(s)(u)		Banking, Finance, Insurance & Real Estate	980,284 Units	3,335	2,505

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments

December 31, 2019

(in thousands)


Portfolio Company(a)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)		Fair Value(c)
NS NWN Acquisition, LLC, Voting Units(s)	High Tech Industries	346 Units	393		585
NS NWN Acquisition, LLC, Class A Preferred Units(s)	High Tech Industries	111 Units	110		331
NSG Co-Invest (Bermuda) LP, Partnership Interests(h)(s)	Consumer Goods: Durable	1,575 Units	1,000		528
Palmetto Solar, LLC, Warrants(s)	High Tech Industries	346,694 Units	295		295
Rhino Energy LLC, Warrants(s)	Metals & Mining	170,972 Units	280		16
SIMR Parent, LLC, Class B Common Units(s)(u)	Healthcare & Pharmaceuticals	12,283,000 Units	8,002		3,980
Spinal USA, Inc. / Precision Medical Inc., Warrants(o)(s)	Healthcare & Pharmaceuticals	14,181,915 Units	5,806		1,560
Tenere Inc., Warrants(s)	Capital Equipment	N/A	161		1,569
Total Equity			115,738		109,231
Short Term Investments - 3.1%(m)
First American Treasury Obligations Fund, Class Z Shares, 1.49% (n)			29,527		29,527
Total Short Term Investments			29,527		29,527
TOTAL INVESTMENTS - 185.3%			$	1,827,076	1,765,072
LIABILITIES IN EXCESS OF OTHER ASSETS - (85.3%)					(812,509)
NET ASSETS - 100%					$	952,563

a.All of the Company’s investments are issued by eligible U.S. portfolio companies, as defined in the 1940 Act, except for investments specifically identified as non-qualifying per note h. below. Unless specifically identified in note x. below, investments do not contain a PIK interest provision.

b.The 1, 2, 3 and 6 month LIBOR rates were 1.76%, 1.83%, 1.91% and 1.91%, respectively, as of December 31, 2019. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of December 31, 2019, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to December 31, 2019. The 1 month EURIBOR rate was (0.51%) as of December 31, 2019.

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.

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 December 31, 2019, 91.5% of the Company’s total assets represented qualifying assets.

i.Fair value determined using level 1 inputs.

j.Position or a portion thereof unsettled as of December 31, 2019.

m.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.

n.7-day effective yield as of December 31, 2019.

o.Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, 34th Street, and was pledged as collateral supporting the amounts outstanding under the credit facility with JPM as of December 31, 2019 (see Note 8).

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments

December 31, 2019

(in thousands)

p.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 December 31, 2019 (see Note 8).

q.Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, Murray Hill Funding II, and was pledged as collateral supporting the amounts outstanding under the repurchase agreement with UBS as of December 31, 2019 (see Note 8).

r.Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, 33rd Street Funding, LLC, or 33rd Street, and was pledged as collateral supporting the amounts outstanding under the credit facility with Morgan Stanley, N.A., or MS, as of December 31, 2019 (see Note 8).

s.Non-income producing security.

t.Investment or a portion thereof was on non-accrual status as of December 31, 2019.

u.Investment determined to be an affiliated investment as defined in the 1940 Act as the Company owns between 5% and 25% of the portfolio company’s outstanding voting securities but does not control the portfolio company. Fair value as of December 31, 2018 and 2019, along with transactions during the year ended December 31, 2019 in these affiliated investments, are as follows:


			Year Ended December 31, 2019								Year Ended December 31, 2019
Non-Controlled, Affiliated Investments	Fair Value at December 31, 2018		Gross Additions (Cost)(1)		Gross Reductions (Cost)(2)		Net Unrealized Gain (Loss)		Fair Value at December 31, 2019		Net Realized Gain (Loss)		Interest Income(3)		Dividend Income
Charming Charlie, LLC
First Lien Term Loan B1	$	1,021	$	—	$	(2,619)	$	1,598	$	—	$	(2,619)	$	—	$	—
First Lien Term Loan B2	1,249		—		(1,912)		663		—		(1,912)		—		—
Vendor Payment Financing Facility	157		890		(293)		(282)		472		—		57		—
Common Stock	—		—		(1,302)		1,302		—		(1,302)		—		—
Conisus Holdings, Inc.
Series B Preferred Stock(w)	10,903		4,015		—		(1,648)		13,270		—		—		4,015
Common Stock	197		—		—		1,229		1,426		—		—		—
DESG Holdings, Inc.
First Lien Term Loan	—		23,656		—		5,322		28,978		—		303		—
Second Lien Term Loan	—		9,675		—		42		9,717		—		162		—
Common Stock	—		13,662		—		1,101		14,763		—		—		—
F+W Media, Inc.
First Lien DIP Term Loan	—		521		(521)		—		—		—		101		—
First Lien Term Loan B-1	1,137		51		(43)		(1,145)		—		—		51		—
First Lien Term Loan B-2	161		—		(2,759)		2,598		—		(2,759)		—		—
Common Stock	—		—		—		—		—		—		—		—
Mount Logan Capital Inc.
Common Stock	2,645		—		—		(140)		2,505		—		—		—
SIMR, LLC
First Lien Term Loan	14,757		452		(619)		(385)		14,205		—		1,778		—
SIMR Parent, LLC
Class B Common Units	7,382		502		—		(3,904)		3,980		—		—		—
Petroflow Energy Corp.
First Lien Term Loan	2,363		—		(2,511)		158		10		—		19		—
TexOak Petro Holdings LLC
Second Lien Term Loan	—		—		(2,592)		2,592		—		(2,592)		—		—
Membership Interests	—		—		—		—		—		—		—		—
Totals	$	41,972	$	53,424	$	(15,171)	$	9,101	$	89,326	$	(11,184)	$	2,471	$	4,015

(3)Includes PIK interest income.

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments

December 31, 2019

(in thousands)

v.Investment determined to be a controlled investment as defined in the 1940 Act as the Company is deemed to exercise a controlling influence over the management or policies of the portfolio company due to beneficially owning, either directly or through one or more controlled companies, more than 25% of the outstanding voting securities of such portfolio company. Fair value as of December 31, 2018 and 2019, along with transactions during the year ended December 31, 2019 in these controlled investments, are as follows:


			Year Ended December 31, 2019								Year Ended December 31, 2019
Controlled Investments	Fair Value at December 31, 2018		Gross Additions (Cost)(1)		Gross Reductions (Cost)(2)		Net Unrealized Gain (Loss)		Fair Value at December 31, 2019		Net Realized Gain (Loss)		Interest Income(3)		Dividend Income
BCP Great Lakes Fund LP
Membership Interests	$	—	$	14,208	$	—	$	30	$	14,238	$	—	$	—	$	47
CION SOF Funding, LLC
Membership Interests	—		31,289		—		(24)		31,265		—		—		1,076
Totals	$	—	$	45,497	$	—	$	6	$	45,503	$	—	$	—	$	1,123

(3)Includes PIK interest income.

w.For the year ended December 31, 2019, non-cash dividend income of $4,015 and $474 was recorded on the Company's investment in Conisus Holdings, Inc. and CHC Medical Partners, Inc., respectively.

x.For the year ended December 31, 2019, 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
Portfolio Company	Investment Type	Cash	PIK	All-in-Rate
American Clinical Solutions LLC	Senior Secured First Lien Debt	—	2.00%	2.00%
Anthem Sports & Entertainment Inc.	Senior Secured First Lien Debt	8.69%	2.75%	11.44%
Charming Charlie, LLC	Senior Secured First Lien Debt	7.05%	5.00%	12.05%
Charming Charlie, LLC	Senior Secured First Lien Debt	3.05%	9.00%	12.05%
CHC Solutions Inc.	Senior Secured First Lien Debt	8.00%	4.00%	12.00%
Country Fresh Holdings, LLC	Senior Secured Second Lien Debt	—	10.44%	10.44%
David's Bridal, LLC	Senior Secured First Lien Debt	1.00%	6.92%	7.92%
Deluxe Entertainment Services, Inc.	Senior Secured First Lien Debt	6.71%	1.50%	8.21%
Deluxe Entertainment Services, Inc.	Senior Secured Second Lien Debt	7.71%	2.50%	10.21%
F+W Media, Inc.	Senior Secured First Lien Debt	—	8.21%	8.21%
Hilliard, Martinez & Gonzales, LLP	Senior Secured First Lien Debt	—	20.00%	20.00%
KLO Intermediate Holdings, LLC	Senior Secured First Lien Debt	—	9.50%	9.50%
Lift Brands, Inc.	Senior Secured First Lien Debt	9.10%	0.50%	9.60%
Petroflow Energy Corp.	Senior Secured First Lien Debt	—	9.71%	9.71%
Premiere Global Services, Inc.	Senior Secured Second Lien Debt	0.50%	10.98%	11.48%
SEK Holding Co LLC	Senior Secured First Lien Debt	9.77%	3.50%	13.27%
SIMR, LLC	Senior Secured First Lien Debt	12.00%	7.00%	19.00%
Spinal USA, Inc. / Precision Medical Inc.	Senior Secured First Lien Debt	—	11.30%	11.30%
WPLM Acquisition Corp.	Unsecured Note	—	15.00%	15.00%

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)		Cost(d)		Fair Value(c)
Senior Secured First Lien Debt - 150.0%
Academy, Ltd., L+400, 1.00% LIBOR Floor, 7/1/2022(p)	1 Month LIBOR	Retail	$	14,280	$	12,548	$	10,032
ACProducts, Inc., L+550, 0.00% LIBOR Floor, 2/15/2024(p)	1 Month LIBOR	Construction & Building	4,938		4,713		4,937
Adams Publishing Group, LLC, L+750, 1.00% LIBOR Floor, 7/2/2023(o)(p)	3 Month LIBOR	Media: Advertising, Printing & Publishing	14,043		13,923		13,973
Adams Publishing Group, LLC, 0.38% Unfunded, 7/2/2020(o)	None	Media: Advertising, Printing & Publishing	1,600		—		(8)
Adapt Laser Acquisition, Inc., L+800, 1.00% LIBOR Floor, 12/31/2023(o)	3 Month LIBOR	Capital Equipment	11,820		11,820		11,229
Adapt Laser Acquisition, Inc., 0.50% Unfunded, 12/31/2023	None	Capital Equipment	2,000		—		(100)
Aegis Toxicology Sciences Corp., L+550, 1.00% LIBOR Floor, 5/9/2025(p)	3 Month LIBOR	Healthcare & Pharmaceuticals	9,900		9,724		9,467
AIS Holdco, LLC, L+500, 0.00% LIBOR Floor, 8/15/2025(p)	3 Month LIBOR	Banking, Finance, Insurance & Real Estate	5,417		5,355		5,146
Alchemy US Holdco 1, LLC, L+550, 10/10/2025(p)	1 Month LIBOR	Construction & Building	7,850		7,744		7,771
Allen Media Broadcasting LLC, L+625, 1.00% LIBOR Floor, 7/3/2024(o)(q)	3 Month LIBOR	Media: Diversified & Production	24,844		24,223		24,409
Allen Media, LLC, L+650, 1.00% LIBOR Floor, 8/30/2023(o)(p)(q)(r)	3 Month LIBOR	Media: Diversified & Production	74,030		72,513		74,030
ALM Media, LLC, L+450, 1.00% LIBOR Floor, 7/31/2020(p)	3 Month LIBOR	Media: Advertising, Printing & Publishing	12,965		12,527		12,965
American Clinical Solutions LLC, 12.50%, 6/11/2020(t)(w)	None	Healthcare & Pharmaceuticals	9,339		8,968		6,817
American Media, LLC, L+750, 0.00% LIBOR Floor, 12/31/2023	3 Month LIBOR	Media: Advertising, Printing & Publishing	1,574		1,578		1,559
American Media, LLC, 0.50% Unfunded, 12/31/2023	None	Media: Advertising, Printing & Publishing	128		(40)		(1)
American Media, LLC, L+750, 0.00% LIBOR Floor, 12/31/2023(o)	3 Month LIBOR	Media: Advertising, Printing & Publishing	18,875		18,463		18,686
American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021(o)(p)(q)(r)	3 Month LIBOR	Telecommunications	19,566		18,527		11,838
Analogic Corp., L+600, 1.00% LIBOR Floor, 6/21/2024(q)(r)	1 Month LIBOR	Healthcare & Pharmaceuticals	29,700		29,200		29,403
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024	3 Month LIBOR	Media: Diversified & Production	833		833		833
Anthem Sports & Entertainment Inc., 0.50% Unfunded, 9/9/2024	None	Media: Diversified & Production	1,333		—		—
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024(o)(w)	3 Month LIBOR	Media: Diversified & Production	16,693		16,489		16,526
AP Exhaust Acquisition, LLC, L+500, 1.00% LIBOR Floor, 5/10/2024(p)(q)	3 Month LIBOR	Automotive	10,451		9,934		8,021
APCO Holdings, LLC, L+550, 0.00% LIBOR Floor, 6/9/2025(p)	1 Month LIBOR	Banking, Finance, Insurance & Real Estate	10,977		10,882		10,813
Ascent Resources - Marcellus, LLC, L+650, 1.00% LIBOR Floor, 3/30/2023	1 Month LIBOR	Energy: Oil & Gas	712		712		690
Associated Asphalt Partners, LLC, L+525, 1.00% LIBOR Floor, 4/5/2024(p)	1 Month LIBOR	Construction & Building	10,770		10,623		10,258
Avison Young (USA) Inc., L+500, 0.00% LIBOR Floor, 1/31/2026(h)(p)	3 Month LIBOR	Banking, Finance, Insurance & Real Estate	9,925		9,739		9,764
Bi-Lo, LLC, L+800, 1.00% LIBOR Floor, 5/31/2024(p)(q)	3 Month LIBOR	Retail	12,930		12,582		12,412
Cadence Aerospace, LLC, L+650, 1.00% LIBOR Floor, 11/14/2023(q)(r)	1 Month LIBOR	Aerospace & Defense	25,763		25,563		25,505
Cardinal US Holdings, Inc., L+500, 1.00% LIBOR Floor, 7/31/2023(p)	3 Month LIBOR	Services: Business	8,330		7,912		8,273
CB URS Holdings Corp., L+575, 1.00% LIBOR Floor, 9/1/2024(p)(r)	1 Month LIBOR	Transportation: Cargo	16,542		16,455		16,335
Central Security Group, Inc., L+563, 1.00% LIBOR Floor, 10/6/2021(p)(r)	1 Month LIBOR	Services: Consumer	24,467		24,481		23,856
Charming Charlie LLC, 20.00%, 5/15/2019(t)(u)	None	Retail	1,047		1,047		807
Charming Charlie LLC, L+1200, 1.00% LIBOR Floor, 4/24/2023(t)(u)(w)	1 Month LIBOR	Retail	2,936		2,619		—
Charming Charlie LLC, L+1200, 1.00% LIBOR Floor, 4/24/2023(t)(u)(w)	1 Month LIBOR	Retail	3,595		1,912		—

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)	Fair Value(c)
CHC Solutions Inc., 12.00%, 7/20/2023(w)	None	Healthcare & Pharmaceuticals	7,273	7,273	7,273
CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021(q)(r)	1 Month LIBOR	Hotel, Gaming & Leisure	23,942	23,717	23,463
CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021	1 Month LIBOR	Hotel, Gaming & Leisure	2,430	2,430	2,381
CircusTrix Holdings, LLC, 1.00% Unfunded, 12/27/2019	None	Hotel, Gaming & Leisure	4,904	—	(98)
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023	3 Month LIBOR	Beverage, Food & Tobacco	286	274	286
Country Fresh Holdings, LLC, 1.00% Unfunded, 4/29/2023	None	Beverage, Food & Tobacco	735	(29)	—
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023	3 Month LIBOR	Beverage, Food & Tobacco	414	414	414
Crown Subsea Communications Holdings, Inc., L+600, 0.00% LIBOR Floor, 11/2/2025(p)	1 Month LIBOR	Capital Equipment	7,800	7,658	7,829
David's Bridal, Inc., L+750, 1.00% LIBOR Floor, 7/18/2023	1 Month LIBOR	Retail	418	342	366
David's Bridal, Inc., L+800, 1.00% LIBOR Floor, 1/18/2024(t)	1 Month LIBOR	Retail	1,673	1,673	795
Dayton Superior Corp., L+1400, 1.00% LIBOR Floor, 11/15/2021(p)(t)(w)	3 Month LIBOR	Construction & Building	6,490	5,941	4,932
Deluxe Entertainment Services Group Inc., L+750, 1.50% LIBOR Floor, 9/18/2020(j)	1 Month LIBOR	Media: Diversified & Production	2,851	2,851	3,136
Deluxe Entertainment Services Group Inc., 0.50% Unfunded, 10/30/2019	None	Media: Diversified & Production	1,149	—	—
Deluxe Entertainment Services Group Inc., L+750, 1.50% LIBOR Floor, 7/30/2020(p)(aa)	3 Month LIBOR	Media: Diversified & Production	10,000	9,593	21,075
Deluxe Entertainment Services Group Inc., L+550, 1.00% LIBOR Floor, 2/28/2020(j)(t)(aa)	3 Month LIBOR	Media: Diversified & Production	25,213	17,663	4,475
DMT Solutions Global Corp., L+700, 0.00% LIBOR Floor, 7/2/2024(p)(r)	6 Month LIBOR	Services: Business	18,750	18,283	18,258
Eagle Family Foods Group LLC, L+650, 1.00% LIBOR Floor, 6/14/2024(r)	3 Month LIBOR	Beverage, Food & Tobacco	14,813	14,544	14,516
Entertainment Studios P&A LLC, 6.18%, 5/18/2037(l)	None	Media: Diversified & Production	17,244	17,096	16,813
Entertainment Studios P&A LLC, 5.00%, 5/18/2037(l)	None	Media: Diversified & Production	—	—	2,622
EnTrans International, LLC, L+600, 0.00% LIBOR Floor, 11/1/2024(p)(r)	1 Month LIBOR	Capital Equipment	28,313	28,064	27,746
ES Chappaquiddick LLC, 10.00%, 5/18/2022	None	Media: Diversified & Production	965	965	989
Evergreen Skills Lux S.À.R.L., L+475, 1.00% LIBOR Floor, 4/28/2021(h)(p)	6 Month LIBOR	High Tech Industries	10,104	9,788	8,222
Extreme Reach, Inc., L+750, 0.00% LIBOR Floor, 3/29/2024(q)	1 Month LIBOR	Media: Diversified & Production	22,442	22,335	22,330
Extreme Reach, Inc., 0.50% Unfunded, 3/29/2024	None	Media: Diversified & Production	1,744	(4)	(9)
F+W Media, Inc., L+650, 1.50% LIBOR Floor, 5/24/2022(t)(u)(w)	1 Month LIBOR	Media: Diversified & Production	1,195	1,168	57
F+W Media, Inc., L+1000, 1.50% LIBOR Floor, 5/24/2022(o)(t)(u)(w)	1 Month LIBOR	Media: Diversified & Production	3,393	2,759	—
Flavors Holdings Inc., L+575, 1.00% LIBOR Floor, 4/3/2020(o)(q)	3 Month LIBOR	Consumer Goods: Non-Durable	13,388	13,000	12,384
Foundation Consumer Healthcare, LLC, L+550, 1.00% LIBOR Floor, 11/2/2023(o)(q)(r)	3 Month LIBOR	Healthcare & Pharmaceuticals	37,620	37,410	37,620
Foundation Consumer Healthcare, LLC, 0.50% Unfunded, 11/2/2023	None	Healthcare & Pharmaceuticals	4,211	(22)	—
Genesis Healthcare, Inc., L+600, 0.50% LIBOR Floor, 3/6/2023(h)(o)(r)	1 Month LIBOR	Healthcare & Pharmaceuticals	35,000	34,738	34,300
Geo Parent Corp., L+550, 0.00% LIBOR Floor, 12/19/2025(p)	1 Month LIBOR	Services: Business	14,925	14,786	14,888
Harland Clarke Holdings Corp., L+475, 1.00% LIBOR Floor, 11/3/2023(p)(r)	3 Month LIBOR	Services: Business	13,390	13,342	10,495
Healogics, Inc., L+425, 1.00% LIBOR Floor, 7/1/2021(p)	3 Month LIBOR	Healthcare & Pharmaceuticals	4,762	4,625	3,548
Homer City Generation, L.P., L+1100, 1.00% LIBOR Floor, 4/5/2023(o)	3 Month LIBOR	Energy: Oil & Gas	14,481	13,964	13,857
HUMC Holdco, LLC, 9.00%, 6/26/2020	None	Healthcare & Pharmaceuticals	10,000	9,958	9,950
Hummel Station LLC, L+600, 1.00% LIBOR Floor, 10/27/2022(p)	1 Month LIBOR	Energy: Oil & Gas	9,786	9,457	8,452

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)		Cost(d)	Fair Value(c)
Hyperion Materials & Technologies, Inc., L+550, 1.00% LIBOR Floor, 8/28/2026(o)	1 Month LIBOR	Chemicals, Plastics & Rubber	10,000		9,801	9,850
Independent Pet Partners Intermediate Holdings, LLC, L+900, 1.00% LIBOR Floor, 11/19/2023	6 Month LIBOR	Retail	12,094		12,020	11,882
Independent Pet Partners Intermediate Holdings, LLC, 1.00% Unfunded, 11/19/2023	None	Retail	7,852		(108)	(137)
Infinity Sales Group, LLC, L+1050, 1.00% LIBOR Floor, 11/23/2020(o)	1 Month LIBOR	Services: Business	7,330		7,117	7,549
InfoGroup Inc., L+500, 1.00% LIBOR Floor, 4/3/2023(p)(q)(r)	3 Month LIBOR	Media: Advertising, Printing & Publishing	15,797		15,783	15,323
Instant Web, LLC, L+650, 0.00% LIBOR Floor, 12/15/2022(o)(q)(r)	1 Month LIBOR	Media: Advertising, Printing & Publishing	37,835		37,753	36,699
Instant Web, LLC, L+650, 0.00% LIBOR Floor, 12/15/2022	1 Month LIBOR	Media: Advertising, Printing & Publishing	433		433	420
Instant Web, LLC, 0.50% Unfunded, 12/15/2022	None	Media: Advertising, Printing & Publishing	2,271		—	(68)
International Seaways, Inc., L+600, 1.00% LIBOR Floor, 6/22/2022(h)(p)	1 Month LIBOR	Transportation: Cargo	8,922		8,812	8,949
Isagenix International, LLC, L+575, 1.00% LIBOR Floor, 6/14/2025(p)	3 Month LIBOR	Beverage, Food & Tobacco	14,058		13,938	11,774
Island Medical Management Holdings, LLC, L+650, 1.00% LIBOR Floor, 9/1/2022(q)	1 Month LIBOR	Healthcare & Pharmaceuticals	11,849		11,750	11,271
Jab Wireless, Inc., L+800, 0.00% LIBOR Floor, 5/2/2023(r)	3 Month LIBOR	Telecommunications	19,750		19,750	19,750
Jackson Hewitt Tax Service Inc., L+625, 0.00% LIBOR Floor, 5/30/2023(r)	3 Month LIBOR	Services: Consumer	17,550		17,550	17,550
Jenny C Acquisition, Inc., L+850, 0.00% LIBOR Floor, 10/1/2024(o)	3 Month LIBOR	Services: Consumer	9,863		9,773	9,690
JP Intermediate B, LLC, L+550, 1.00% LIBOR Floor, 11/20/2025(p)	3 Month LIBOR	Beverage, Food & Tobacco	16,365		16,041	14,278
KLO Intermediate Holdings, LLC, L+775, 1.50% LIBOR Floor, 4/7/2022(t)	1 Month LIBOR	Chemicals, Plastics & Rubber	7,283		7,023	2,185
KLO Intermediate Holdings, LLC, L+775, 1.50% LIBOR Floor, 4/7/2022(t)	1 Month LIBOR	Chemicals, Plastics & Rubber	4,311		4,268	1,293
KNB Holdings Corp., L+550, 1.00% LIBOR Floor, 4/26/2024(p)(r)	3 Month LIBOR	Consumer Goods: Durable	8,348		8,228	7,503
Labvantage Solutions Inc., L+750, 1.00% LIBOR Floor, 12/29/2020(q)	1 Month LIBOR	High Tech Industries	3,660		3,647	3,660
Labvantage Solutions Ltd., E+750, 1.00% EURIBOR Floor, 12/29/2020(h)	1 Month EURIBOR	High Tech Industries	€	3,705	4,149	4,038
LAV Gear Holdings, Inc., L+550, 1.00% LIBOR Floor, 10/31/2024(o)(q)	3 Month LIBOR	Services: Business	20,578		20,288	20,166
LAV Gear Holdings, Inc., L+550, 1.00% LIBOR Floor, 10/31/2024	3 Month LIBOR	Services: Business	4,297		4,237	4,211
LD Intermediate Holdings, Inc., L+588, 1.00% LIBOR Floor, 12/9/2022(p)	3 Month LIBOR	High Tech Industries	4,759		4,489	4,735
Lift Brands, Inc., L+700, 1.00% LIBOR Floor, 4/16/2023	3 Month LIBOR	Services: Consumer	1,350		1,350	1,313
Lift Brands, Inc., 1.00% Unfunded, 4/16/2023	None	Services: Consumer	3,650		—	(100)
Lift Brands, Inc., L+700, 1.00% LIBOR Floor, 4/16/2023(o)(q)(r)	3 Month LIBOR	Services: Consumer	44,325		43,600	43,106
Longview Power, LLC, L+600, 1.00% LIBOR Floor, 4/13/2021(o)(q)	3 Month LIBOR	Energy: Oil & Gas	17,791		16,180	14,277
Manna Pro Products, LLC, L+600, 0.00% LIBOR Floor, 12/8/2023(o)	1 Month LIBOR	Retail	9,448		9,448	9,354
Manna Pro Products, LLC, 1.00% Unfunded, 12/8/2019	None	Retail	5,528		—	(55)
Mimeo.com, Inc., L+700, 1.00% LIBOR Floor, 12/21/2023	3 Month LIBOR	Services: Business	1,500		1,500	1,500
Mimeo.com, Inc., 1.00% Unfunded, 12/21/2023	None	Services: Business	1,500		—	—
Mimeo.com, Inc., L+700, 1.00% LIBOR Floor, 12/21/2023(o)(r)	3 Month LIBOR	Services: Business	22,655		22,655	22,655
Mimeo.com, Inc., 0.25% Unfunded, 12/21/2020	None	Services: Business	10,000		—	—
Moss Holding Company, L+625, 1.00% LIBOR Floor, 4/17/2023(o)(q)	3 Month LIBOR	Services: Business	20,299		20,042	19,893
Moss Holding Company, 0.50% Unfunded, 4/17/2023	None	Services: Business	2,232		—	(45)
Moxie Patriot LLC, L+575, 1.00% LIBOR Floor, 12/19/2020(p)	3 Month LIBOR	Energy: Oil & Gas	9,825		9,815	8,732

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)	Fair Value(c)
MRP Generation Holdings, LLC, L+700, 1.00% LIBOR Floor, 10/18/2022(p)	3 Month LIBOR	Energy: Oil & Gas	2,197	2,169	2,181
Murray Energy Corp., L+725, 1.00% LIBOR Floor, 10/17/2022(p)(t)	3 Month LIBOR	Metals & Mining	3,574	3,553	1,376
NewsCycle Solutions, Inc., L+700, 1.00% LIBOR Floor, 12/29/2022(q)(r)	1 Month LIBOR	Media: Advertising, Printing & Publishing	20,071	19,921	19,871
One Call Corp., L+525, 1.00% LIBOR Floor, 11/25/2022(p)	3 Month LIBOR	Healthcare & Pharmaceuticals	7,944	7,585	6,196
Petroflow Energy Corp., L+800, 1.00% LIBOR Floor, 6/29/2019(o)(t)(u)(w)	1 Month LIBOR	Energy: Oil & Gas	744	215	170
PFS Holding Corp., L+350, 1.00% LIBOR Floor, 1/31/2021	1 Month LIBOR	Retail	3,105	2,670	2,034
PH Beauty Holdings III. Inc., L+500, 0.00% LIBOR Floor, 9/28/2025(p)	1 Month LIBOR	Consumer Goods: Non-Durable	9,900	9,812	9,454
Pixelle Specialty Solutions LLC, L+600, 1.00% LIBOR Floor, 10/31/2024(p)	1 Month LIBOR	Forest Products & Paper	24,837	24,285	24,605
Plano Molding Company, LLC, L+700, 1.00% LIBOR Floor, 5/12/2021(o)	1 Month LIBOR	Consumer Goods: Non-Durable	6,025	5,989	5,694
Polymer Additives, Inc., L+600, 0.00% LIBOR Floor, 7/31/2025(o)(p)	3 Month LIBOR	Chemicals, Plastics & Rubber	19,850	19,500	17,369
Polymer Process Holdings, Inc., L+600, 0.00% LIBOR Floor, 5/1/2026(p)	1 Month LIBOR	Chemicals, Plastics & Rubber	24,938	24,457	24,563
Rhino Energy LLC, L+1000, 1.00% LIBOR Floor, 12/27/2020(r)	1 Month LIBOR	Metals & Mining	9,481	9,209	9,386
SEK Holding Co LLC, L+1150, 0.00% LIBOR Floor, 3/14/2022(o)(w)	1 Month LIBOR	Banking, Finance, Insurance & Real Estate	15,279	15,023	14,974
Sequoia Healthcare Management, LLC, 12.75%, 8/21/2023(o)(q)	None	Healthcare & Pharmaceuticals	9,335	9,258	9,288
SIMR, LLC, L+900, 2.00% LIBOR Floor, 9/7/2023(o)(u)	1 Month LIBOR	Healthcare & Pharmaceuticals	14,681	14,433	13,800
Smart & Final Inc., L+675, 0.00% LIBOR Floor, 6/20/2025(p)	1 Month LIBOR	Retail	9,975	9,093	9,158
Sorenson Communications, LLC, L+650, 0.00% LIBOR Floor, 4/30/2024(p)	3 Month LIBOR	Telecommunications	13,163	12,672	13,162
SOS Security Holdings LLC, L+650, 1.00% LIBOR Floor, 4/30/2025(o)(r)	3 Month LIBOR	Services: Business	17,456	17,285	17,282
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 6/30/2021(o)	3 Month LIBOR	Healthcare & Pharmaceuticals	12,684	12,675	12,526
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 6/30/2021(o)(w)	3 Month LIBOR	Healthcare & Pharmaceuticals	318	318	314
Spinal USA, Inc. / Precision Medical Inc., 0.00% Unfunded, 12/31/2019(o)(s)	None	Healthcare & Pharmaceuticals	239	—	(3)
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 6/30/2021(o)(w)	3 Month LIBOR	Healthcare & Pharmaceuticals	495	495	489
Stats Intermediate Holdings, LLC, L+525, 0.00% LIBOR Floor, 7/12/2026(p)	6 Month LIBOR	High Tech Industries	10,000	9,784	9,800
STG-Fairway Acquisitions, Inc., L+525, 1.00% LIBOR Floor, 6/30/2022(p)	1 Month LIBOR	Services: Business	3,929	3,861	3,934
Teladoc, Inc., 0.50% Unfunded, 7/14/2020(h)	None	High Tech Industries	1,250	(12)	—
Telestream Holdings Corp., L+645, 1.00% LIBOR Floor, 3/24/2022(k)(o)	1 Month LIBOR	High Tech Industries	8,792	8,678	8,616
Tenere Inc., L+1000, 1.00% LIBOR Floor, 12/23/2021(o)(q)	3 Month LIBOR	Capital Equipment	28,880	28,556	28,880
Tensar Corp., L+475, 1.00% LIBOR Floor, 7/9/2021(p)	3 Month LIBOR	Chemicals, Plastics & Rubber	12,980	12,579	12,428
The Pasha Group, L+750, 1.00% LIBOR Floor, 1/26/2023(q)	(z)	Transportation: Cargo	6,078	5,945	6,123
The Pay-O-Matic Corp., L+900, 0.00% LIBOR Floor, 4/5/2021(g)(o)	3 Month LIBOR	Services: Consumer	21,437	21,319	21,437
Therapure Biopharma Inc., L+875, 0.50% LIBOR Floor, 12/1/2021(h)(w)	1 Month LIBOR	Healthcare & Pharmaceuticals	14,476	14,440	14,457
Volta Charging, LLC, 12.00%, 6/19/2024	None	Media: Diversified & Production	10,000	10,000	10,000
Volta Charging, LLC, 0.00% Unfunded, 6/19/2021(s)	None	Media: Diversified & Production	12,000	—	—
Wok Holdings Inc., L+650, 0.00% LIBOR Floor, 3/1/2026(p)	3 Month LIBOR	Beverage, Food & Tobacco	12,935	12,765	11,076
Woodstream Corp., L+600, 1.00% LIBOR Floor, 5/29/2022(r)	3 Month LIBOR	Consumer Goods: Non-Durable	14,300	14,300	14,300

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)		Cost(d)	Fair Value(c)
Woodstream Corp., 0.50% Unfunded, 5/29/2021	None	Consumer Goods: Non-Durable	559		—	—
Total Senior Secured First Lien Debt					1,473,789	1,417,752
Senior Secured Second Lien Debt - 28.4%
1A Smart Start LLC, L+825, 1.00% LIBOR Floor, 8/21/2022(o)(q)	1 Month LIBOR	High Tech Industries	17,800		17,547	17,444
ABG Intermediate Holdings 2 LLC, L+775, 1.00% LIBOR Floor, 9/29/2025(o)	1 Month LIBOR	Retail	3,000		2,995	3,006
Access CIG, LLC, L+775, 0.00% LIBOR Floor, 2/27/2026(q)	1 Month LIBOR	Services: Business	17,250		17,124	17,250
Albany Molecular Research, Inc., L+700, 1.00% LIBOR Floor, 8/30/2025(o)	1 Month LIBOR	Healthcare & Pharmaceuticals	10,000		9,838	9,906
ALM Media, LLC, L+800, 1.00% LIBOR Floor, 7/30/2021(o)(q)	3 Month LIBOR	Media: Advertising, Printing & Publishing	10,344		10,309	10,344
American Residential Services LLC, L+800, 1.00% LIBOR Floor, 12/31/2022(o)	1 Month LIBOR	Construction & Building	5,180		5,136	5,128
Carestream Health, Inc., L+950, 1.00% LIBOR Floor, 6/7/2021(q)	1 Month LIBOR	Healthcare & Pharmaceuticals	10,662		10,662	10,209
Country Fresh Holdings, LLC, L+850, 1.00% LIBOR Floor, 4/29/2024(w)	3 Month LIBOR	Beverage, Food & Tobacco	1,974		1,975	1,974
EagleTree-Carbide Acquisition Corp., L+850, 1.00% LIBOR Floor, 8/28/2025(o)(q)	3 Month LIBOR	Consumer Goods: Durable	23,000		22,727	22,655
Evergreen Skills Lux S.À.R.L., L+825, 1.00% LIBOR Floor, 4/28/2022(h)(q)	6 Month LIBOR	High Tech Industries	9,999		8,106	3,025
Global Tel*Link Corp., L+825, 0.00% LIBOR Floor, 11/29/2026(q)	1 Month LIBOR	Telecommunications	11,500		11,309	10,968
LSCS Holdings, Inc., L+825, 0.00% LIBOR Floor, 3/16/2026(o)	6 Month LIBOR	Services: Business	11,891		11,653	11,831
Mayfield Agency Borrower Inc., L+850, 0.00% LIBOR Floor, 3/2/2026(o)(q)(r)	1 Month LIBOR	Banking, Finance, Insurance & Real Estate	20,000		19,719	20,200
Medical Solutions Holdings, Inc., L+825, 1.00% LIBOR Floor, 6/16/2025(o)	1 Month LIBOR	Healthcare & Pharmaceuticals	10,000		9,874	9,750
MedPlast Holdings, Inc., L+775, 0.00% LIBOR Floor, 7/2/2026(r)	3 Month LIBOR	Healthcare & Pharmaceuticals	6,750		6,690	6,328
Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023(o)(q)	2 Month LIBOR	Services: Business	7,000		6,928	7,000
Niacet Corp., E+875, 1.00% EURIBOR Floor, 8/1/2024(h)	1 Month EURIBOR	Chemicals, Plastics & Rubber	€	7,489	7,977	8,081
Patterson Medical Supply, Inc., L+850, 1.00% LIBOR Floor, 8/28/2023(o)	3 Month LIBOR	Healthcare & Pharmaceuticals	13,500		13,417	12,150
PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023(o)	3 Month LIBOR	Chemicals, Plastics & Rubber	15,000		14,778	14,775
PFS Holding Corp., L+725, 1.00% LIBOR Floor, 1/31/2022(p)(t)	1 Month LIBOR	Retail	4,998		4,312	—
Premiere Global Services, Inc., L+950, 1.00% LIBOR Floor, 6/6/2022(o)	3 Month LIBOR	Telecommunications	3,000		2,932	1,050
PT Intermediate Holdings III, LLC, L+800, 1.00% LIBOR Floor, 12/8/2025(q)	1 Month LIBOR	Services: Business	9,375		9,305	9,469
Securus Technologies Holdings, Inc., L+825, 1.00% LIBOR Floor, 11/1/2025(q)	1 Month LIBOR	Telecommunications	2,942		2,916	2,592
STG-Fairway Acquisitions, Inc., L+925, 1.00% LIBOR Floor, 6/30/2023(o)(q)	1 Month LIBOR	Services: Business	10,000		9,910	9,600
TexOak Petro Holdings LLC, 8.00%, 12/29/2019(t)(u)(w)	None	Energy: Oil & Gas	8,405		2,592	—
TMK Hawk Parent, Corp., L+800, 1.00% LIBOR Floor, 8/28/2025(o)	1 Month LIBOR	Services: Business	13,393		13,115	12,991
TouchTunes Interactive Networks, Inc., L+825, 1.00% LIBOR Floor, 5/29/2022(q)	1 Month LIBOR	Hotel, Gaming & Leisure	5,226		5,195	5,226
Winebow Holdings, Inc., L+750, 1.00% LIBOR Floor, 1/2/2022(o)	1 Month LIBOR	Beverage, Food & Tobacco	12,823		12,675	8,656
Zest Acquisition Corp., L+750, 1.00% LIBOR Floor, 3/13/2026(q)	3 Month LIBOR	Healthcare & Pharmaceuticals	15,000		14,868	13,875
Zywave Inc., L+900, 1.00% LIBOR Floor, 11/17/2023(o)	3 Month LIBOR	High Tech Industries	3,173		3,128	3,173
Total Senior Secured Second Lien Debt					289,712	268,656

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands)


Portfolio Company(a)	Index Rate(b)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)	Fair Value(c)
Collateralized Securities and Structured Products - Debt - 1.1%
Deutsche Bank AG Frankfurt CRAFT 2015-2 Class Credit Linked Note, L+925, 1/16/2022(h)	3 Month LIBOR	Diversified Financials	10,051	10,051	9,950
Total Collateralized Securities and Structured Products - Debt				10,051	9,950
Collateralized Securities and Structured Products - Equity - 1.6%
APIDOS CLO XVI Subordinated Notes, 6.39% Estimated Yield, 1/19/2025(h)	(f)	Diversified Financials	9,000	3,697	2,681
CENT CLO 19 Ltd. Subordinated Notes, 37.72% Estimated Yield, 10/29/2025(h)	(f)	Diversified Financials	2,000	1,163	1,037
Galaxy XV CLO Ltd. Class A Subordinated Notes, 6.78% Estimated Yield, 4/15/2025(h)	(f)	Diversified Financials	4,000	2,272	1,746
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan, 11.84% Estimated Yield, 2/2/2026(h)	(f)	Diversified Financials	10,000	9,371	9,517
Total Collateralized Securities and Structured Products - Equity				16,503	14,981
Equity - 4.3%
Anthem Sports and Entertainment Inc., Class A Preferred Stock Warrants(s)		Media: Diversified & Production	769 Units	205	201
Anthem Sports and Entertainment Inc., Class B Preferred Stock Warrants(s)		Media: Diversified & Production	135 Units	—	—
Anthem Sports and Entertainment Inc., Common Stock Warrants(s)		Media: Diversified & Production	2,508 Units	—	—
Ascent Resources - Marcellus, LLC, Common Shares(s)		Energy: Oil & Gas	511,255 Units	1,642	1,150
Ascent Resources - Marcellus, LLC, Warrants(s)		Energy: Oil & Gas	132,367 Units	13	4
Avaya Holdings Corp., Common Stock(i)(p)(s)		Telecommunications	321,260 Units	5,285	3,286
Charming Charlie LLC, Common Stock(s)(u)		Retail	30,046,243 Units	1,302	—
CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend(v)		Healthcare & Pharmaceuticals	2,727,273 Units	5,004	5,029
Conisus Holdings, Inc., Common Stock(s)(u)		Healthcare & Pharmaceuticals	4,914,556 Units	200	1,542
Conisus Holdings, Inc., Series B Preferred Stock, 12% Dividend(u)(v)		Healthcare & Pharmaceuticals	12,677,833 Units	12,734	12,637
Country Fresh Holdings, LLC, Common Stock(s)		Beverage, Food & Tobacco	2,985 Units	5,249	3,135
David's Bridal, Inc., Common Stock(s)		Retail	32,296 Units	580	—
F+W Media, Inc., Common Stock(s)(u)		Media: Diversified & Production	31,211 Units	—	—
HDNet Holdco LLC, Preferred Unit Call Option(s)		Media: Diversified & Production	0.67 Units	—	—
Independent Pet Partners Intermediate Holdings, LLC, Class A Preferred Units(s)		Retail	1,000,000 Units	1,000	990
Independent Pet Partners Intermediate Holdings, LLC, Warrants(s)		Retail	155,880 Units	—	5
Mooregate ITC Acquisition, LLC, Class A Units(s)		High Tech Industries	500 Units	563	173
Mount Logan Capital Inc., Common Stock(h)(i)(s)(u)		Banking, Finance, Insurance & Real Estate	7,842,273 Units	3,335	2,665
NS NWN Acquisition, LLC, Voting Units(s)		High Tech Industries	346 Units	393	514
NS NWN Acquisition, LLC, Class A Preferred Units(s)		High Tech Industries	111 Units	111	332
NSG Co-Invest (Bermuda) LP, Partnership Interests(h)(s)		Consumer Goods: Durable	1,575 Units	1,000	653
Rhino Energy LLC, Warrants(s)		Metals & Mining	170,972 Units	280	70
SIMR Parent, LLC, Class B Common Units(s)(u)		Healthcare & Pharmaceuticals	7,500,000 Units	7,500	4,419
Spinal USA, Inc. / Precision Medical Inc., Warrants(s)		Healthcare & Pharmaceuticals	14,181,915 Units	5,806	3,120
Tenere Inc., Warrants(s)		Capital Equipment	N/A	161	830

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands)


Portfolio Company(a)	Industry	Principal/ Par Amount/ Units(e)	Cost(d)		Fair Value(c)
TexOak Petro Holdings LLC, Membership Interests(s)(u)	Energy: Oil & Gas	60,000 Units	—		—
Total Equity			52,363		40,755
Short Term Investments - 2.4%(m)
First American Treasury Obligations Fund, Class Z Shares, 1.85%(n)			23,060		23,060
Total Short Term Investments			23,060		23,060
TOTAL INVESTMENTS - 187.8%			$	1,865,478	1,775,154
LIABILITIES IN EXCESS OF OTHER ASSETS - (87.8%)					(829,693)
NET ASSETS - 100%					$	945,461

a.All of the Company’s investments are issued by eligible U.S. portfolio companies, as defined in the 1940 Act, except for investments specifically identified as non-qualifying per note h. below. Unless specifically identified in note w. below, investments do not contain a PIK interest provision.

b.The 1, 2, 3, and 6 month LIBOR rates were 2.02%, 2.07%, 2.09%, and 2.06%, respectively, as of September 30, 2019. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of September 30, 2019, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to September 30, 2019. The 1 month EURIBOR rate was (0.51%) as of September 30, 2019.

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.

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 September 30, 2019, 93.3% of the Company’s total assets represented qualifying assets.

i.Fair value determined using level 1 inputs.

j.Position or a portion thereof unsettled as of September 30, 2019.

m.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.

n.7-day effective yield as of September 30, 2019.

p.Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, Flatiron Funding II, and was pledged as collateral supporting the amounts outstanding under the credit facility with Citibank as of September 30, 2019 (see Note 8).

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands)

r.Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, 33rd Street, and was pledged as collateral supporting the amounts outstanding under the credit facility with MS as of September 30, 2019 (see Note 8).

s.Non-income producing security.

t.Investment was on non-accrual status as of September 30, 2019.

u.Investment determined to be an affiliated investment as defined in the 1940 Act as the Company owns between 5% and 25% of the portfolio company’s outstanding voting securities but does not control the portfolio company. Fair value as of December 31, 2018 and September 30, 2019, along with transactions during the nine months ended September 30, 2019 in these affiliated investments are as follows:


			Nine Months Ended September 30, 2019								Nine Months Ended September 30, 2019
Non-Controlled, Affiliated Investments	Fair Value at December 31, 2018		Gross Additions (Cost)(1)		Gross Reductions (Cost)(2)		Net Unrealized (Loss) Gain		Fair Value at September 30, 2019		Net Realized Gain (Loss)		Interest Income(3)		Dividend Income
Charming Charlie, LLC
First Lien Term Loan B1	$	1,021	$	—	$	—	$	(1,021)	$	—	$	—	$	—	$	—
First Lien Term Loan B2	1,249		—		—		(1,249)		—		—		—		—
Vendor Payment Financing Facility	157		890		—		(240)		807		—		37		—
Common Stock	—		—		—		—		—		—		—		—
Conisus Holdings, Inc.
Series B Preferred Stock	10,903		3,534		—		(1,800)		12,637		—		—		3,534
Common Stock	197		—		—		1,345		1,542		—		—		—
F+W Media, Inc.
First Lien Term Loan B-1	1,137		51		—		(1,131)		57		—		50		—
First Lien Term Loan B-2	161		—		—		(161)		—		—		—		—
First Lien DIP Term Loan	—		521		(521)		—		—		—		100		—
Common Stock	—		—		—		—		—		—		—		—
Mount Logan Capital Inc.
Common Stock	2,645		—		—		20		2,665		—		—		—
SIMR, LLC
First Lien Term Loan	14,757		32		(619)		(370)		13,800		—		1,346		—
SIMR Parent, LLC
Class B Common Units	7,382		—		—		(2,963)		4,419		—		—		—
Petroflow Energy Corp.
First Lien Term Loan	2,363		(128)		(2,392)		327		170		—		(91)		—
TexOak Petro Holdings LLC
Second Lien Term Loan	—		—		—		—		—		—		—		—
Membership Interests	—		—		—		—		—		—		—		—
Totals	$	41,972	$	4,900	$	(3,532)	$	(7,243)	$	36,097	$	—	$	1,442	$	3,534

(3)Includes PIK interest income.

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Consolidated Schedule of Investments (unaudited)

September 30, 2019

(in thousands)

v.For the nine months ended September 30, 2019, non-cash dividend income of $3,534 and $338 was recorded on the Company's investment in Conisus Holdings, Inc. and CHC Medical Partners, Inc., respectively.

w.As of September 30, 2019, 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
American Clinical Solutions LLC(t)	Senior Secured First Lien Debt	10.50%	2.00%	12.50%	$	—	$	—	$	—
Anthem Sports & Entertainment Inc.	Senior Secured First Lien Debt	8.85%	2.75%	11.60%	$	176	$	28	$	204
Charming Charlie LLC(t)	Senior Secured First Lien Debt	7.05%	5.00%	12.05%	$	—	$	—	$	—
Charming Charlie LLC(t)	Senior Secured First Lien Debt	3.05%	9.00%	12.05%	$	—	$	—	$	—
CHC Solutions Inc.	Senior Secured First Lien Debt	8.00%	4.00%	12.00%	$	437	$	218	$	655
Country Fresh Holdings, LLC	Senior Secured Second Lien Debt	—	10.60%	10.60%	$	—	$	90	$	90
Dayton Superior Corp.(t)	Senior Secured First Lien Debt	10.10%	6.00%	16.10%	$	346	$	94	$	440
F+W Media, Inc.(t)	Senior Secured First Lien Debt	—	12.12%	12.12%	$	—	$	—	$	—
F+W Media, Inc.(t)	Senior Secured First Lien Debt	—	8.55%	8.55%	$	—	$	51	$	51
F+W Media, Inc.(y)	Senior Secured First Lien Debt	—	12.33%	12.33%	$	7	$	13	$	20
Petroflow Energy Corp.(t)	Senior Secured First Lien Debt	3.00%	7.11%	10.11%	$	—	$	—	$	—
SEK Holding Co LLC	Senior Secured First Lien Debt	10.05%	3.50%	13.55%	$	950	$	296	$	1,246
Spinal USA, Inc. / Precision Medical Inc.	Senior Secured First Lien Debt	—	11.78%	11.78%	$	—	$	21	$	21
Sprint Industrial Holdings, LLC(y)	Senior Secured First Lien Debt	8.08%	1.00%	9.08%	$	273	$	101	$	374
TexOak Petro Holdings LLC(t)	Senior Secured Second Lien Debt	—	8.00%	8.00%	$	—	$	—	$	—
Therapure Biopharma Inc.(x)	Senior Secured First Lien Debt	10.86%	—	10.86%	$	1,286	$	363	$	1,649

x.Default interest was paid-in-kind.

y.Prior to September 30, 2019, the Company exited this investment.

z.As of September 30, 2019, the index rate for $2,882 and $3,196 was the 1 month LIBOR and the 3 month LIBOR, respectively.

aa.On July 31, 2019, certain lenders of Deluxe Entertainment Services Group Inc., or Deluxe, agreed to fund a $73,000 priming facility as part of a Prepackaged Chapter 11 Reorganization Plan, or the Plan. Pursuant to the Plan, on November 6, 2019, (i) the holders of the original senior secured term loan received in exchange approximately 65% of Deluxe’s equity and (ii) the holders of the senior secured priming delayed draw term loan received in exchange approximately 35% of Deluxe's equity and a second lien term loan.

See accompanying notes to consolidated financial statements.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

Note 1. Organization and Principal Business

CĪON Investment Corporation, or the Company, was incorporated under the general corporation laws of the State of Maryland on August 9, 2011. On December 17, 2012, the Company successfully raised gross proceeds from unaffiliated outside investors of at least $2,500, or the minimum offering requirement, and commenced operations. The Company is an externally managed, non-diversified closed-end management investment company that has elected to be regulated as a business development company, or BDC, under the 1940 Act. The Company elected to be treated for federal income tax purposes as a regulated investment company, or RIC, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code.

The Company’s investment objective is to generate current income and, to a lesser extent, capital appreciation for investors. The Company’s portfolio is comprised primarily of investments in senior secured debt, including first lien loans, second lien loans and unitranche loans, and, to a lesser extent, collateralized securities, structured products and other similar securities, unsecured debt, and equity, of private and thinly-traded U.S. middle-market companies.

The Company is managed by CION Investment Management, LLC, or CIM, a registered investment adviser and an affiliate of the Company. Pursuant to an investment advisory agreement with the Company, CIM oversees the management of the Company’s activities and is responsible for making investment decisions for the Company’s investment portfolio. On November 13, 2020, the board of directors of the Company, including a majority of the board of directors who are not interested persons, approved the renewal of the investment advisory agreement with CIM for a period of twelve months commencing December 17, 2020. The Company and CIM previously engaged Apollo Investment Management, L.P., or AIM, a subsidiary of Apollo Global Management, Inc., or, together with its subsidiaries, Apollo, a leading global alternative investment manager, to act as the Company’s investment sub-adviser.

On July 11, 2017, the members of CIM entered into a third amended and restated limited liability company agreement of CIM, or the Third Amended CIM LLC Agreement, for the purpose of creating a joint venture between AIM and CION Investment Group, LLC, or CIG, an affiliate of the Company. Under the Third Amended CIM LLC Agreement, AIM became a member of CIM and was issued a newly-created class of membership interests in CIM pursuant to which AIM, among other things, shares in the profits, losses, distributions and expenses of CIM with the other members in accordance with the terms of the Third Amended CIM LLC Agreement, which results in CIG and AIM each owning a 50% economic interest in CIM.

On July 10, 2017, the Company’s independent directors unanimously approved the termination of the investment sub-advisory agreement with AIM, effective as of July 11, 2017. Although the investment sub-advisory agreement and AIM's engagement as the Company’s investment sub-adviser were terminated, AIM's investment professionals continue to perform certain services for CIM and the Company, including, without limitation, identifying investment opportunities for approval by CIM's investment committee. AIM is not paid a separate fee in exchange for such services, but is entitled to receive distributions as a member of CIM as described above.

On December 4, 2017, the members of CIM entered into a fourth amended and restated limited liability company agreement of CIM, or the Fourth Amended CIM LLC Agreement. Under the Fourth Amended CIM LLC Agreement, AIM's investment professionals perform certain services for CIM, which include, among other services, (i) assistance with identifying and providing information about potential investment opportunities for approval by CIM’s investment committee; and (ii) providing (a) trade and settlement support; (b) portfolio and cash reconciliation; (c) market pipeline information regarding syndicated deals, in each case, as reasonably requested by CIM; and (d) monthly valuation reports and support for all broker-quoted investments. All of the Company's investment decisions are the sole responsibility of, and are made at the sole discretion of, CIM's investment committee, which consists entirely of CIG senior personnel.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and pursuant to the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. For a more complete discussion of significant accounting policies and certain other information, the Company’s interim unaudited consolidated financial statements should be read in conjunction with its audited consolidated financial statements as of December 31, 2019 and for the year then ended included in the Company’s Annual Report on Form 10-K. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020. The consolidated balance sheet and the consolidated schedule of investments as of December 31, 2019 and the consolidate statements of operations, the consolidated statements of changes in net assets, and the consolidate statements of cash flows for the year ended December 31, 2019 are derived from the 2019 audited consolidated financial statements and include the accounts of the Company’s wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company does not consolidate its interest in CION SOF Funding, LLC, or CION SOF. See Note 7 for a description of the Company’s investment in CION SOF.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

The Company evaluates subsequent events through the date that the consolidated financial statements are issued.

Recently Adopted Accounting Standards

In August 2018, the Financial Accounting Standards Board, or the FASB, issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13, which modifies the disclosure requirements for fair value measurements in Topic 820 by removing, modifying, or adding certain disclosures. ASU 2018-13 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted ASU 2018-13 during the three months ended March 31, 2020, which did not have a significant impact on the Company’s disclosures on fair value measurements.

Recently Announced Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, or ASU 2020-04, which provides optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued because of the reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is evaluating the potential impact that the adoption of this guidance will have on the Company’s consolidated financial statements.

Cash and Cash Equivalents

Cash and cash equivalents include cash in banks and highly liquid investments with original maturity dates of three months or less. The Company’s cash and cash equivalents are held principally at one financial institution and at times may exceed insured limits. The Company periodically evaluates the creditworthiness of this institution and has not experienced any losses on such deposits.

Foreign Currency Translations

The accounting records of the Company are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the foreign exchange rate on the date of valuation. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Changes in the relationship of foreign currencies to the U.S. dollar can significantly affect the value of these investments and therefore the earnings of the Company.

Short Term Investments

Short term investments include an investment in a U.S. Treasury obligations fund, which seeks to provide current income and daily liquidity by purchasing U.S. Treasury securities and repurchase agreements that are collateralized by such securities. The Company had $53,024, $29,527 and $23,060 of such investments at September 30, 2020, December 31, 2019 and September 30, 2019, respectively, which are included in investments, at fair value on the accompanying consolidated balance sheets and on the consolidated schedules of investments.

Offering Costs

Offering costs included, among other things, legal fees and other costs pertaining to the preparation of the Company’s registration statements in connection with the continuous public offerings of the Company’s shares. Certain initial offering costs that were funded by CIG on behalf of the Company were submitted by CIG for reimbursement upon meeting the minimum offering requirement on December 17, 2012. These costs were capitalized and amortized over a twelve month period as an adjustment to capital in excess of par value. All other offering costs were expensed as incurred by the Company. The Company's follow-on continuous public offering ended on January 25, 2019.

Income Taxes

The Company elected to be treated for federal income tax purposes as a RIC under Subchapter M of the Code. To qualify and maintain qualification as a RIC, the Company must, among other things, meet certain source of income and asset diversification requirements and distribute to shareholders, for each taxable year, at least 90% of the Company’s “investment company taxable income”, which is generally equal to the sum of the Company’s net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses. If the Company continues to qualify as a RIC and continues to satisfy the annual distribution requirement, the Company will not be subject to corporate level federal income taxes on any income that the Company distributes to its shareholders. The Company intends to make distributions in an amount sufficient to maintain RIC status each year and to avoid any federal income taxes on income. The Company will also be subject to nondeductible federal excise taxes if the Company does not distribute at least 98.0% of net ordinary income, 98.2% of capital gains, if any, and any recognized and undistributed income from prior years for which it paid no federal income taxes.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

Two of the Company’s wholly-owned consolidated subsidiaries, View ITC, LLC and View Rise, LLC, or collectively the Taxable Subsidiaries, have elected to be treated as taxable entities for U.S. federal income tax purposes. As a result, the Taxable Subsidiaries are not consolidated with the Company for income tax purposes and may generate income tax expense or benefit, and the related tax assets and liabilities, as a result of its ownership of certain portfolio investments. The income tax expense or benefit, if any, and the related tax assets and liabilities, where material, are reflected in the Company’s consolidated financial statements. There were no deferred tax assets or liabilities as of September 30, 2020, December 31, 2019 or September 30, 2019.

Book/tax differences relating to permanent differences are reclassified among the Company’s capital accounts, as appropriate. Additionally, the tax character of distributions is determined in accordance with income tax regulations that may differ from GAAP (see Note 5).

Uncertainty in Income Taxes

The Company evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold for the purposes of measuring and recognizing tax liabilities in the consolidated financial statements. Recognition of a tax benefit or liability with respect to an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by the taxing authorities. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the consolidated statements of operations. The Company did not have any uncertain tax positions during the periods presented herein.

The Company is subject to examination by U.S. federal, New York State, New York City and Maryland income tax jurisdictions for 2016, 2017, 2018, and 2019.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

During the first half of 2020, there was a global outbreak of a novel coronavirus, or COVID-19, which spread to over 100 countries, including the United States, and spread to every state in the United States. The World Health Organization designated COVID-19 as a pandemic, and numerous countries, including the United States, declared national emergencies with respect to COVID-19. The global impact of the outbreak has been rapidly evolving, and as cases of COVID-19 continued to be identified in additional countries, many countries reacted by instituting quarantines and restrictions on travel, closing financial markets and/or restricting trading, and limiting operations of non-essential businesses. Although countries, including the United States, have slowly started to loosen these restrictions, such actions created and will continue to create disruption in global supply chains, and adversely impacted many industries. In addition, certain European countries instituted another lockdown during the fourth quarter of 2020 as a second wave of the outbreak occurred. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions. The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2020; however, uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of September 30, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. Actual results may materially differ from those estimates.

Valuation of Portfolio Investments

The fair value of the Company’s investments is determined quarterly in good faith by the Company’s board of directors pursuant to its consistently applied valuation procedures and valuation process in accordance with Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosure, or ASC 820. ASC 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-tier fair value hierarchy that prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Inputs used to measure these fair values are classified into the following hierarchy:

Level 1 -Quoted prices in active markets for identical assets or liabilities, accessible by the Company at the measurement date.

Level 2 -Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices.

Level 3 -Unobservable inputs for the asset or liability. The inputs used in the determination of fair value may require significant management judgment or estimation. Such information may be the result of consensus pricing information or broker quotes that include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by the disclaimer would result in classification as a Level 3 asset, assuming no additional corroborating evidence.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The level in the fair value hierarchy for each fair value measurement has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. The level assigned to the investment valuations may not be indicative of the risk or liquidity associated with investing in such investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may differ materially from the value that would be received upon an actual sale of such investments. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses that the Company ultimately realizes on these investments to materially differ from the valuations currently assigned.

A portion of the Company’s investments consist of debt securities that are traded on a private over-the-counter market for institutional investments. CIM attempts to obtain market quotations from at least two brokers or dealers for each investment (if available, otherwise from a principal market maker or a primary market dealer or other independent pricing service). CIM typically uses the average midpoint of the broker bid/ask price to determine fair value unless a different point within the range is more representative. Because of the private nature of this marketplace (meaning actual transactions are not publicly reported) and the non-binding nature of consensus pricing and/or quotes, the Company believes that these valuation inputs result in Level 3 classification within the fair value hierarchy. As these quotes are only indicative of fair value, CIM benchmarks the implied fair value yield and leverage against what has been observed in the market. If the implied fair value yield and leverage fall within the range of CIM's market pricing matrix, the quotes are deemed to be reliable and used to determine the investment fair value.

Notwithstanding the foregoing, if in the reasonable judgment of CIM, the price of any investment held by the Company and determined in the manner described above does not accurately reflect the fair value of such investment, CIM will value such investment at a price that reflects such investment’s fair value and report such change in the valuation to the board of directors or its designee as soon as practicable. Investments that carry certain restrictions on sale will typically be valued at a discount from the public market value of the investment.

Any investments that are not publicly traded or for which a market price is not otherwise readily available are valued at a price that reflects its fair value. With respect to such investments, if CIM is unable to obtain market quotations, the investments are reviewed and valued using one or more of the following types of analyses:

i.Market comparable statistics and public trading multiples discounted for illiquidity, minority ownership and other factors for companies with similar characteristics.

ii.Valuations implied by third-party investments in the applicable portfolio companies.

iii.Discounted cash flow analysis, including a terminal value or exit multiple.

Determination of fair value involves subjective judgments and estimates. Accordingly, these notes to the Company’s consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on the Company’s consolidated financial statements. Below is a description of factors that the Company’s board of directors may consider when valuing the Company’s equity and debt investments where a market price is not readily available:

•the size and scope of a portfolio company and its specific strengths and weaknesses;

•prevailing interest rates for like securities;

•expected volatility in future interest rates;

•leverage;

•call features, put features and other relevant terms of the debt;

•the borrower’s ability to adequately service its debt;

•the fair market value of the portfolio company in relation to the face amount of its outstanding debt;

•the quality of collateral securing the Company’s debt investments;

•multiples of earnings before interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income, revenues or, in some cases, book value or liquidation value; and

•other factors deemed applicable.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

All of these factors may be subject to adjustment based upon the particular circumstances of a portfolio company or the Company’s actual investment position. For example, adjustments to EBITDA may take into account compensation to previous owners, or acquisition, recapitalization, and restructuring expenses or other related or non-recurring items. The choice of analyses and the weight assigned to such factors may vary across investments and may change within an investment if events occur that warrant such a change.

The discounted cash flow model deemed appropriate by CIM is prepared for the applicable investments and reviewed by designated members of CIM’s management team. Such models are prepared at least quarterly or on an as needed basis. The model uses the estimated cash flow projections for the underlying investments and an appropriate discount rate is determined based on the latest financial information available for the borrower, prevailing market trends, comparable analysis and other inputs. The model, key assumptions, inputs, and results are reviewed by designated members of CIM’s management team with final approval from the board of directors.

Consistent with the Company’s valuation policy, the Company evaluates the source of inputs, including any markets in which the Company’s investments are trading, in determining fair value.

The Company periodically benchmarks the broker quotes from the brokers or dealers against the actual prices at which the Company purchases and sells its investments. Based on the results of the benchmark analysis and the experience of the Company’s management in purchasing and selling these investments, the Company believes that these quotes are reliable indicators of fair value. The Company may also use other methods to determine fair value for securities for which it cannot obtain market quotations through brokers or dealers, including the use of an independent valuation firm. Designated members of CIM’s management team and the Company's board of directors review and approve the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation process.

As a practical expedient, the Company uses net asset value, or NAV, as the fair value for its equity investments in CION SOF and BCP Great Lakes Fund LP. CION SOF and BCP Great Lakes Fund LP record their underlying investments at fair value on a quarterly basis in accordance with ASC 820.

Revenue Recognition

Securities transactions are accounted for on the trade date. The Company records interest and dividend income on an accrual basis beginning on the trade settlement date or the ex-dividend date, respectively, to the extent that the Company expects to collect such amounts. For investments in equity tranches of collateralized loan obligations, the Company records income based on the effective interest rate determined using the amortized cost and estimated cash flows, which is updated periodically. Loan origination fees, original issue discounts, or OID, and market discounts/premiums are recorded and such amounts are amortized as adjustments to interest income over the respective term of the loan using the effective interest rate method. Upon the prepayment of a loan or security, prepayment premiums, any unamortized loan origination fees, OID, or market discounts are recorded as interest income.

The Company may have investments in its investment portfolio that contain a PIK interest provision. PIK interest is accrued as interest income if the portfolio company valuation indicates that such PIK interest is collectible and recorded as interest receivable up to the interest payment date. On the interest payment dates, the Company will capitalize the accrued interest receivable attributable to PIK as additional principal due from the borrower. Additional PIK securities typically have the same terms, including maturity dates and interest rates, as the original securities. In order to maintain RIC status, substantially all of this income must be paid out to shareholders in the form of distributions, even if the Company has not collected any cash. For additional information on investments that contain a PIK interest provision, see the consolidated schedules of investments as of September 30, 2020, December 31, 2019 and September 30, 2019.

Loans and debt securities, including those that are individually identified as being impaired under Accounting Standards Codification 310, Receivables, or ASC 310, are generally placed on non-accrual status immediately if, in the opinion of management, principal or interest is not likely to be paid, or when principal or interest is past due 90 days or more. Interest accrued but not collected at the date a loan or security is placed on non-accrual status is reversed against interest income. Interest income is recognized on non-accrual loans or debt securities only to the extent received in cash. However, where there is doubt regarding the ultimate collectibility of principal, cash receipts, whether designated as principal or interest, are thereafter applied to reduce the carrying value of the loan or debt security. Loans or securities are restored to accrual status only when interest and principal payments are brought current and future payments are reasonably assured.

Dividend income on preferred equity securities is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

The Company may receive fees for capital structuring services that are fixed based on contractual terms, are normally paid at the closing of the investments, are generally non-recurring and non-refundable and are recognized as revenue when earned upon closing of the investment. The services that CIM provides vary by investment, but generally include reviewing existing credit facilities, arranging bank financing, arranging equity financing, structuring financing from multiple lenders, structuring financing from multiple equity investors, restructuring existing loans, raising equity and debt capital, and providing general financial advice, which concludes upon closing of the investment. In certain instances where the Company is invited to participate as a co-lender in a transaction and does not provide significant services in connection with the investment, a portion of loan fees paid to the Company in such situations will be deferred and amortized over the estimated life of the loan as interest income.

Other income includes amendment fees that are fixed based on contractual terms and are generally non-recurring and non-refundable and are recognized as revenue when earned upon closing of the transaction. Other income also includes fees for managerial assistance and other consulting services, loan guarantees, commitments, and other services rendered by the Company to its portfolio companies. Such fees are fixed based on contractual terms and are recognized as fee income when earned.

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation

Gains or losses on the sale of investments are calculated by using the weighted-average method. The Company measures realized gains or losses by the difference between the net proceeds from the sale and the weighted-average amortized cost of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

Capital Gains Incentive Fee

Pursuant to the terms of the investment advisory agreement the Company entered into with CIM, the incentive fee on capital gains earned on liquidated investments of the Company’s investment portfolio during operations is determined and payable in arrears as of the end of each calendar year. Such fee equals 20% of the Company’s incentive fee capital gains (i.e., the Company’s realized capital gains on a cumulative basis from inception, calculated as of the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis), less the aggregate amount of any previously paid capital gains incentive fees. On a cumulative basis and to the extent that all realized capital losses and unrealized capital depreciation exceed realized capital gains as well as the aggregate realized net capital gains for which a fee has previously been paid, the Company would not be required to pay CIM a capital gains incentive fee. On a quarterly basis, the Company accrues for the capital gains incentive fee by calculating such fee as if it were due and payable as of the end of such period.

While the investment advisory agreement with CIM neither includes nor contemplates the inclusion of unrealized gains in the calculation of the capital gains incentive fee, pursuant to an interpretation of the American Institute for Certified Public Accountants, or AICPA, Technical Practice Aid for investment companies, the Company accrues capital gains incentive fees on unrealized gains. This accrual reflects the incentive fees that would be payable to CIM if the Company’s entire investment portfolio was liquidated at its fair value as of the balance sheet date even though CIM is not entitled to an incentive fee with respect to unrealized gains unless and until such gains are actually realized.

Net (Decrease) Increase in Net Assets per Share

Net (decrease) increase in net assets per share is calculated based upon the daily weighted average number of shares of common stock outstanding during the reporting period.

Distributions

Distributions to shareholders are recorded as of the record date. The amount paid as a distribution is declared by the Company's co-chief executive officers and ratified by the board of directors on a quarterly basis. Net realized capital gains, if any, are distributed at least annually.

Note 3. Share Transactions

The Company’s initial continuous public offering commenced on July 2, 2012 and ended on December 31, 2015. The Company’s follow-on continuous public offering commenced on January 25, 2016 and ended on January 25, 2019.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

The following table summarizes transactions with respect to shares of the Company’s common stock during the nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019:


	Nine Months Ended September 30,						Year Ended December 31,
	2020			2019			2019
	Shares	Amount		Shares	Amount		Shares	Amount
Gross shares/proceeds from the offering	—	$	—	696,264	$	6,516	696,264	$	6,515
Reinvestment of distributions	1,496,868	11,783		3,129,083	26,849		4,217,705	35,800
Total gross shares/proceeds	1,496,868	11,783		3,825,347	33,365		4,913,969	42,315
Sales commissions and dealer manager fees	—	—		—	(296)		—	(296)
Net shares/proceeds	1,496,868	11,783		3,825,347	33,069		4,913,969	42,019
Share repurchase program	(1,077,994)	(8,085)		(3,152,804)	(26,849)		(4,242,063)	(35,799)
Net shares/proceeds from share transactions	418,874	$	3,698	672,543	$	6,220	671,906	$	6,220

Since commencing its initial continuous public offering on July 2, 2012 and through September 30, 2020, the Company sold 113,800,019 shares of common stock for net proceeds of $1,158,985 at an average price per share of $10.18. The net proceeds include gross proceeds received from reinvested shareholder distributions of $210,447, for which the Company issued 23,610,868 shares of common stock, and gross proceeds paid for shares of common stock tendered for repurchase of $206,748, for which the Company repurchased 23,302,594 shares of common stock.

During the period from October 1, 2020 to November 12, 2020, the Company received gross proceeds of $1,829 from reinvested shareholder distributions, for which the Company issued 237,395 shares of common stock.

Since commencing its initial continuous public offering on July 2, 2012 and through November 12, 2020, the Company sold 114,037,414 shares of common stock for net proceeds of $1,160,814 at an average price per share of $10.18. The net proceeds include gross proceeds received from reinvested shareholder distributions of $212,276, for which the Company issued 23,848,263 shares of common stock, and gross proceeds paid for shares of common stock tendered for repurchase of $206,748, for which the Company repurchased 23,302,594 shares of common stock.

Share Repurchase Program

The Company offers to repurchase shares on such terms as determined by the Company’s board of directors in its complete and absolute discretion unless, in the judgment of the independent directors of the Company’s board of directors, such repurchases would not be in the best interests of the Company’s shareholders or would violate applicable law.

On March 19, 2020, the Company's board of directors, including the independent directors, temporarily suspended the Company's share repurchase program commencing with the second quarter of 2020 and included the third quarter of 2020. On November 13, 2020, the Company recommenced its share repurchase program for the fourth quarter of 2020. Share repurchases for future quarters will be reevaluated by the board of directors based on circumstances and expectations existing at the time of consideration.

The Company currently limits the number of shares to be repurchased during any calendar year to the number of shares it can repurchase with the proceeds it receives from the issuance of shares pursuant to its fifth amended and restated distribution reinvestment plan. At the discretion of the Company’s board of directors, it may also use cash on hand, cash available from borrowings and cash from liquidation of investments as of the end of the applicable period to repurchase shares. The Company currently offers to repurchase such shares at a price equal to the estimated net asset value per share on each date of repurchase.

Any periodic repurchase offers are subject in part to the Company’s available cash and compliance with the BDC and RIC qualification and diversification rules promulgated under the 1940 Act and the Code, respectively. While the Company conducts quarterly tender offers as described above, it is not required to do so and may suspend or terminate the share repurchase program at any time, upon 30 days’ notice.

The following table summarizes the share repurchases completed during the year ended December 31, 2019 and the nine months ended September 30, 2020:

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)


Three Months Ended	Repurchase Date	Shares Repurchased	Percentage of Shares Tendered That Were Repurchased		Repurchase Price Per Share		Aggregate Consideration for Repurchased Shares
2019
March 31, 2019	March 27, 2019	1,078,856	30	%	$	8.68	$	9,361
June 30, 2019	June 26, 2019	1,038,641	15	%	8.59		8,926
September 30, 2019	September 25, 2019	1,035,307	15	%	8.27		8,562
December 31, 2019	December 26, 2019	1,089,259	17	%	8.22		8,950
Total for the year ended December 31, 2019		4,242,063					$	35,799

2020
March 31, 2020	March 30, 2020	1,076,229	13	%	$	7.50	$	8,071
June 30, 2020(1)	N/A	1,765	N/A		7.50		14
September 30, 2020	N/A	—	N/A		N/A		—
Total for the nine months ended September 30, 2020		1,077,994					$	8,085

(1) Represents an adjustment made during the three months ended June 30, 2020 to shares repurchased during the three months ended March 31, 2020.

Note 4. Transactions with Related Parties

For the three and nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019, fees and other expenses incurred by the Company related to CIM and its affiliates were as follows:


			Three Months Ended September 30,				Nine Months Ended September 30,				Year Ended December 31,
Entity	Capacity	Description	2020		2019		2020		2019		2019
CION Securities, LLC	Dealer manager	Dealer manager fees(1)	$	—	$	—	$	—	$	121	$	121
CIM	Investment adviser	Management fees(2)	7,780		9,029		24,160		27,597		36,466
CIM	Investment adviser	Incentive fees(2)	—		4,983		3,308		14,475		20,087
CIM	Administrative services provider	Administrative services expense(2)	593		453		1,793		1,433		2,650

Apollo Investment Administration, L.P.	Administrative services provider	Transaction costs(2)	53		49		48		109		146
			$	8,426	$	14,514	$	29,309	$	43,735	$	59,470

(1)Amounts charged directly to equity.

(2)Amounts charged directly to operations.

On December 28, 2016, the Company entered into an amended and restated follow-on dealer manager agreement with CIM and CION Securities, LLC (formerly, ICON Securities, LLC), or CION Securities, in connection with the Company's follow-on continuous public offering, which ended on January 25, 2019. Under the amended and restated dealer manager agreement, the dealer manager fee was reduced from up to 3% to up to 2% of gross offering proceeds and selling commissions to the selling dealers were reduced from up to 7% to up to 3% of gross offering proceeds. Such costs were charged against capital in excess of par value when incurred. Since commencing its initial continuous public offering on July 2, 2012 through January 25, 2019, the Company paid or accrued sales commissions of $65,278 to the selling dealers and dealer manager fees of $32,628 to CION Securities.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

The Company has entered into an investment advisory agreement with CIM. On November 13, 2020, the board of directors of the Company, including a majority of the board of directors who are not interested persons, approved the renewal of the investment advisory agreement for a period of twelve months commencing December 17, 2020. Pursuant to the investment advisory agreement, CIM is paid an annual base management fee equal to 2.0% of the average value of the Company’s gross assets, less cash and cash equivalents, and an incentive fee based on the Company’s performance, as described below. The base management fee is payable quarterly in arrears and is calculated based on the two most recently completed calendar quarters. The incentive fee consists of two parts. The first part, which is referred to as the subordinated incentive fee on income, is calculated and payable quarterly in arrears based on “pre-incentive fee net investment income” for the immediately preceding quarter and is subject to a hurdle rate, measured quarterly and expressed as a rate of return on adjusted capital, as defined in the investment advisory agreement, equal to 1.875% per quarter, or an annualized rate of 7.5%.The Company receives 100% of pre-incentive fee net investment income once the hurdle rate is exceeded until the annualized rate of 9.375% is exceeded, at which point the Company receives 20% of the amount of pre-incentive fee net investment income that exceeds the annualized rate of 9.375%. As of September 30, 2020, December 31, 2019 and September 30, 2019, the liabilities recorded for subordinated incentive fees were $0, $5,612 and $4,983, respectively. The second part of the incentive fee, which is referred to as the capital gains incentive fee, is described in Note 2.

The Company accrues the capital gains incentive fee based on net realized gains and net unrealized appreciation; however, under the terms of the investment advisory agreement, the fee payable to CIM is based on net realized gains and unrealized depreciation and no such fee is payable with respect to unrealized appreciation unless and until such appreciation is actually realized. For the three and nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019, the Company had no liability for and did not record any capital gains incentive fees.

Under the terms of the investment advisory agreement, CIM and certain of its affiliates, which includes CIG, are entitled to receive reimbursement of up to 1.5% of the gross proceeds raised until all offering and organizational costs have been reimbursed. The Company’s payment of offering and organizational costs will not exceed 1.5% of the actual gross proceeds raised from the offerings (without giving effect to any potential expense support from CIG and its affiliates, which includes CIM). With respect to any reimbursements for offering and organizational costs, the Company interprets the 1.5% limit based on actual gross proceeds raised at the time of such reimbursement. In addition, the Company will not issue any of its shares or other securities for services or for property other than cash or securities except as a dividend or distribution to its security holders or in connection with a reorganization.

Reinvestment of shareholder distributions and share repurchases are excluded from the gross proceeds from the Company’s offerings for purposes of determining the total amount of offering and organizational costs that can be paid by the Company. As of September 30, 2020, the Company raised gross offering proceeds of $1,155,286, of which it can pay up to $17,329 in offering and organizational costs (which represents 1.5% of the actual gross offering proceeds raised). Through September 30, 2020, the Company paid $10,702 of such costs, leaving an additional $6,627 that can be paid.

On April 1, 2018, the Company entered into an administration agreement with CIM pursuant to which CIM furnishes the Company with administrative services including accounting, investor relations and other administrative services necessary to conduct its day-to-day operations. CIM is reimbursed for administrative expenses it incurs on the Company’s behalf in performing its obligations, provided that such reimbursement is for the lower of CIM’s actual costs or the amount that the Company would have been required to pay for comparable administrative services in the same geographic location. Such costs are reasonably allocated to the Company on the basis of assets, revenues, time records or other reasonable methods. The Company does not reimburse CIM for any services for which it receives a separate fee or for rent, depreciation, utilities, capital equipment or other administrative items allocated to a person with a controlling interest in CIM. On November 13, 2020, the board of directors of the Company, including a majority of the board of directors who are not interested persons, approved the renewal of the administration agreement with CIM for a period of twelve months commencing December 17, 2020.

On January 1, 2019, the Company entered into a servicing agreement with CIM’s affiliate, Apollo Investment Administration, L.P., or AIA, pursuant to which AIA furnishes the Company with administrative services including, but not limited to, loan and high yield trading services, trade and settlement support, and monthly valuation reports and support for all broker quoted investments. AIA is reimbursed for administrative expenses it incurs on the Company’s behalf in performing its obligations, provided that such reimbursement is reasonable, and costs and expenses incurred are documented. The servicing agreement may be terminated at any time, without the payment of any penalty, by either party, upon 60 days' written notice to the other party.

On January 30, 2013, the Company entered into the expense support and conditional reimbursement agreement with CIG, whereby CIG agreed to provide expense support to the Company in an amount that is sufficient to: (1) ensure that no portion of the Company’s distributions to shareholders will be paid from its offering proceeds or borrowings, and/or (2) reduce the Company’s operating expenses until it has achieved economies of scale sufficient to ensure that it bears a reasonable level of expense in relation to its investment income. On December 16, 2015, the Company further amended and restated the expense support and conditional reimbursement agreement for purposes of including AIM as a party to the agreement. On January 2, 2018, the Company entered into an expense support and conditional reimbursement agreement with CIM for purposes of, among other things, replacing CIG and AIM with CIM as the expense support provider pursuant to the terms of the expense support and conditional reimbursement agreement. On December 20, 2019, the Company and CIM amended the expense support and conditional reimbursement agreement to extend the termination date of such agreement from December 31, 2019 to December 31, 2020.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

Pursuant to the expense support and conditional reimbursement agreement, the Company will have a conditional obligation to reimburse CIM for any amounts funded by CIM under such agreement (i) if expense support amounts funded by CIM exceed operating expenses incurred during any fiscal quarter, (ii) if the sum of the Company’s net investment income for tax purposes, net capital gains and the amount of any dividends and other distributions paid to the Company on account of investments in portfolio companies (to the extent not included in net investment income or net capital gains for tax purposes) exceeds the distributions paid by the Company to shareholders, and (iii) during any fiscal quarter occurring within three years of the date on which CIM funded such amount. The obligation to reimburse CIM for any expense support provided by CIM under such agreement is further conditioned by the following: (i) in the period in which reimbursement is sought, the ratio of operating expenses to average net assets, when considering the reimbursement, cannot exceed the ratio of operating expenses to average net assets, as defined, for the period when the expense support was provided; (ii) in the period when reimbursement is sought, the annualized distribution rate cannot fall below the annualized distribution rate for the period when the expense support was provided; and (iii) the expense support can only be reimbursed within three years from the date the expense support was provided.

Expense support, if any, will be determined as appropriate to meet the objectives of the expense support and conditional reimbursement agreement. For the three and nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019, the Company did not receive any expense support from CIM. See Note 5 for additional information on the sources of the Company's distributions. The Company did not record any obligation to repay expense support from CIM during the three or nine months ended September 30, 2019 or 2020 or the year ended December 31, 2019, respectively. The Company did not repay any expense support to CIM during the three or nine months ended September 30, 2019 or 2020 or the year ended December 31, 2019, respectively. The Company may or may not be requested to reimburse any expense support provided in the future.

The Company or CIM may terminate the expense support and conditional reimbursement agreement at any time. CIM has indicated that it expects to continue such expense support to ensure that the Company bears a reasonable level of expenses in relation to its income. If the Company terminates the investment advisory agreement with CIM, the Company may be required to repay all unreimbursed expense support funded by CIM within three years of the date of termination. There will be no acceleration or increase of such repayment obligation at termination of the investment advisory agreement with CIM. The specific amount of expense support provided by CIM, if any, will be determined at the end of each quarter. There can be no assurance that the expense support and conditional reimbursement agreement will remain in effect or that CIM will support any portion of the Company’s expenses in future quarters.

As of September 30, 2020, December 31, 2019 and September 30, 2019, the total liability payable to CIM and its affiliates was $8,387, $15,771 and $14,574, respectively, which primarily related to fees earned by CIM during the three months ended September 30, 2020, December 31, 2019 and September 30, 2019, respectively.

Because CIM’s senior management team is comprised of substantially the same personnel as the senior management team of the Company’s affiliate, ICON Capital, LLC, which is the investment manager to certain equipment finance funds, or equipment funds, such members of senior management provide investment advisory and management services to the equipment funds in addition to the Company. In the event that CIM undertakes to provide investment advisory services to other clients in the future, it will strive to allocate investment opportunities in a fair and equitable manner consistent with the Company’s investment objective and strategies so that the Company will not be disadvantaged in relation to any other client of the investment adviser or its senior management team. However, it is currently possible that some investment opportunities will be provided to other clients of CIM rather than to the Company.

Indemnifications

The investment advisory agreement, the administration agreement and the dealer manager agreement each provide certain indemnifications from the Company to the other relevant parties to such agreements. The Company’s maximum exposure under these agreements is unknown. However, the Company has not experienced claims or losses pursuant to these agreements and believes the risk of loss related to such indemnifications to be remote.

Note 5. Distributions

From February 1, 2014 through July 17, 2017, the Company’s board of directors authorized and declared on a monthly basis a weekly distribution amount per share of common stock. On July 18, 2017, the Company's board of directors authorized and declared on a quarterly basis a weekly distribution amount per share of common stock. Effective September 28, 2017, the Company's board of directors delegated to management the authority to determine the amount, record dates, payment dates and other terms of distributions to shareholders, which will be ratified by the board of directors, each on a quarterly basis. Beginning on March 19, 2020, management changed the timing of declaring distributions from quarterly to monthly and temporarily suspended the payment of distributions to shareholders commencing with the month ended April 30, 2020, whether in cash or pursuant to the Company's distribution reinvestment plan, as amended and restated. On July 15, 2020, the board of directors determined to recommence the payment of distributions to shareholders in August. Distributions in respect of future months will be reevaluated by management and the board of directors based on circumstances and expectations existing at the time of consideration. Declared distributions are paid monthly.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

The Company’s board of directors declared or ratified distributions for 53 and 15 record dates during the year ended December 31, 2019 and the nine months ended September 30, 2020, respectively.

The following table presents cash distributions per share that were declared during the year ended December 31, 2019 and the nine months ended September 30, 2020:


	Distributions
Three Months Ended	Per Share		Amount
2019
March 31, 2019 (thirteen record dates)	$	0.1829	$	20,772
June 30, 2019 (thirteen record dates)	0.1829		20,801
September 30, 2019 (thirteen record dates)	0.1829		20,798
December 31, 2019 (fourteen record dates)	0.1969		22,401
Total distributions for the year ended December 31, 2019	$	0.7456	$	84,772

2020
March 31, 2020 (thirteen record dates)	$	0.1829	$	20,793
June 30, 2020 (no record dates)	—		—
September 30, 2020 (two record dates)	0.0883		10,011
Total distributions for the nine months ended September 30, 2020	$	0.2712	$	30,804

On September 16, 2020, the Company's co-chief executive officers declared regular monthly cash distributions of $0.04413 per share for October 2020. The distributions were paid on October 28, 2020 to shareholders of record as of October 27, 2020. On October 16, 2020, the Company's co-chief executive officers declared regular monthly cash distributions of $0.04413 per share for November 2020. The distributions will be paid on November 25, 2020 to shareholders of record as of November 24, 2020.

The Company has adopted an “opt in” distribution reinvestment plan for shareholders. As a result, if the Company makes a distribution, shareholders will receive distributions in cash unless they specifically “opt in” to the fifth amended and restated distribution reinvestment plan so as to have their cash distributions reinvested in additional shares of the Company’s common stock.

On December 8, 2016, the Company amended and restated its distribution reinvestment plan pursuant to the fifth amended and restated distribution reinvestment plan, or the Fifth Amended DRIP. The Fifth Amended DRIP became effective as of, and first applied to the reinvestment of cash distributions paid on, February 1, 2017. Under the Fifth Amended DRIP, cash distributions to participating shareholders will be reinvested in additional shares of common stock at a purchase price equal to the estimated net asset value per share of common stock as of the date of issuance.

The Company may fund its cash distributions to shareholders from any sources of funds available to the Company, including borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies and expense support from CIM, which is subject to repayment by the Company within three years. The Company has not established limits on the amount of funds it may use from available sources to make distributions. For the nine months ended September 30, 2020 and the year ended December 31, 2019, none of the Company's distributions resulted from expense support from CIM. The purpose of this arrangement is to avoid such distributions being characterized as a return of capital. Shareholders should understand that any such distributions are not based on the Company’s investment performance, and can only be sustained if the Company achieves positive investment performance in future periods and/or CIM provides such expense support. There can be no assurance that the Company will achieve such performance in order to sustain these distributions, or be able to pay distributions at all. CIM has no obligation to provide expense support to the Company in future periods. Shareholders should also understand that the Company’s future repayments of expense support will reduce the distributions that they would otherwise receive.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

The following table reflects the sources of cash distributions on a GAAP basis that the Company has declared on its shares of common stock during the nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019:


	Nine Months Ended September 30,												Year Ended December 31,
	2020						2019						2019
Source of Distribution	Per Share		Amount		Percentage		Per Share		Amount		Percentage		Per Share		Amount		Percentage
Net investment income	$	0.2712	$	30,804	100.0	%	$	0.5487	$	62,371	100.0	%	$	0.7456	$	84,772	100.0	%





Total distributions	$	0.2712	$	30,804	100.0	%	$	0.5487	$	62,371	100.0	%	$	0.7456	$	84,772	100.0	%

It is the Company's policy to comply with all requirements of the Code applicable to RICs and to distribute substantially all of its taxable income to its shareholders. In addition, by distributing during each calendar year substantially all of its net investment income, net realized capital gains and certain other amounts, if any, the Company intends not to be subject to corporate level federal income tax or federal excise taxes. Accordingly, no federal income tax provision was required for the year ended December 31, 2019.

Income and capital gain distributions are determined in accordance with the Code and federal tax regulations, which may differ from amounts determined in accordance with GAAP. These book/tax differences, which could be material, are primarily due to differing treatments of income and gains on various investments held by the Company. Permanent book/tax differences result in reclassifications to capital in excess of par value, accumulated undistributed net investment income and accumulated undistributed realized gain on investments.

The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. The tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV. All distributions for 2019 were characterized as ordinary income distributions for federal income tax purposes.

The tax components of accumulated earnings for the current year will be determined at year end. As of December 31, 2019, the components of accumulated losses on a tax basis were as follows:


	December 31, 2019
Undistributed ordinary income	$	2,959
Other accumulated losses	(1,810)

Net unrealized depreciation on investments	(103,765)
Total accumulated losses	$	(102,616)

As of September 30, 2020, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $27,920; the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $227,938; the net unrealized depreciation was $200,018; and the aggregate cost of securities for Federal income tax purposes was $1,769,923.

As of December 31, 2019, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $24,416; the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $128,181; the net unrealized depreciation was $103,765; and the aggregate cost of securities for Federal income tax purposes was $1,868,837.

As of September 30, 2019, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $24,881; the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $136,655; the net unrealized depreciation was $111,774; and the aggregate cost of securities for Federal income tax purposes was $1,886,928.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

Note 6. Investments

The composition of the Company’s investment portfolio as of September 30, 2020 and December 31, 2019 at amortized cost and fair value was as follows:


	September 30, 2020						December 31, 2019
	Cost(1)		Fair Value		Percentage of Investment Portfolio		Cost(1)		Fair Value		Percentage of Investment Portfolio
Senior secured first lien debt	$	1,297,754	$	1,232,505	81.3	%	$	1,388,942	$	1,351,767	77.9	%
Senior secured second lien debt	188,202		161,784		10.7	%	264,280		248,253		14.3	%
Collateralized securities and structured products - debt	—		—		—		7,212		7,212		0.4	%
Collateralized securities and structured products - equity	15,501		11,219		0.7	%	16,476		14,182		0.8	%
Unsecured debt	4,912		4,750		0.3	%	4,901		4,900		0.3	%
Equity	130,058		106,623		7.0	%	115,738		109,231		6.3	%
Subtotal/total percentage	1,636,427		1,516,881		100.0	%	1,797,549		1,735,545		100.0	%
Short term investments(2)	53,024		53,024				29,527		29,527
Total investments	$	1,689,451	$	1,569,905			$	1,827,076	$	1,765,072

(1)Cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, for debt investments and cost for equity investments.

(2)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.

The composition of the Company’s investment portfolio as of September 30, 2019 at amortized cost and fair value was as follows:


	September 30, 2019
	Cost(1)		Fair Value		Percentage of Investment Portfolio
Senior secured first lien debt	$	1,473,789	$	1,417,752	80.9	%
Senior secured second lien debt	289,712		268,656		15.3	%
Collateralized securities and structured products - debt	10,051		9,950		0.6	%
Collateralized securities and structured products - equity	16,503		14,981		0.9	%

Equity	52,363		40,755		2.3	%
Subtotal/total percentage	1,842,418		1,752,094		100.0	%
Short term investments(2)	23,060		23,060
Total investments	$	1,865,478	$	1,775,154

(1)Cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, for debt investments and cost for equity investments.

(2)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.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

The following tables show the composition of the Company’s investment portfolio by industry classification and geographic dispersion, and the percentage, by fair value, of the total investment portfolio assets in such industries and geographies as of September 30, 2020, December 31, 2019 and September 30, 2019:


	September 30, 2020				December 31, 2019				September 30, 2019
Industry Classification	Investments at Fair Value		Percentage of Investment Portfolio		Investments at Fair Value		Percentage of Investment Portfolio		Investments at Fair Value		Percentage of Investment Portfolio
Healthcare & Pharmaceuticals	$	295,679	19.4	%	$	294,947	17.0	%	$	295,681	16.9	%
Services: Business	178,464		11.8	%	191,126		11.0	%	217,200		12.4	%
Chemicals, Plastics & Rubber	126,763		8.4	%	102,906		5.9	%	90,544		5.2	%
Media: Diversified & Production	115,887		7.6	%	206,159		11.9	%	197,487		11.3	%
Media: Advertising, Printing & Publishing	112,613		7.4	%	120,810		7.0	%	129,763		7.4	%
Services: Consumer	84,331		5.6	%	94,058		5.4	%	116,852		6.7	%
Beverage, Food & Tobacco	67,078		4.4	%	68,440		3.9	%	66,109		3.8	%
Telecommunications	60,692		4.0	%	61,577		3.6	%	62,646		3.6	%
High Tech Industries	60,559		4.0	%	60,197		3.5	%	63,732		3.6	%
Capital Equipment	58,190		3.8	%	73,586		4.2	%	76,414		4.4	%
Retail	53,583		3.5	%	53,599		3.1	%	60,649		3.5	%
Diversified Financials	52,420		3.5	%	66,897		3.9	%	24,931		1.4	%
Banking, Finance, Insurance & Real Estate	41,323		2.7	%	62,738		3.6	%	63,562		3.6	%
Construction & Building	38,719		2.6	%	37,096		2.1	%	33,026		1.9	%
Aerospace & Defense	35,457		2.3	%	30,378		1.8	%	25,505		1.4	%
Energy: Oil & Gas	31,173		2.1	%	48,742		2.8	%	49,513		2.8	%
Forest Products & Paper	20,305		1.3	%	24,217		1.4	%	24,605		1.4	%
Consumer Goods: Non-Durable	20,153		1.3	%	33,609		1.9	%	41,832		2.4	%
Hotel, Gaming & Leisure	19,091		1.3	%	25,081		1.4	%	30,972		1.8	%
Transportation: Cargo	19,048		1.3	%	27,291		1.6	%	31,407		1.8	%
Metals & Mining	11,810		0.8	%	10,373		0.6	%	10,832		0.6	%
Automotive	9,873		0.7	%	10,013		0.6	%	8,021		0.4	%
Consumer Goods: Durable	3,670		0.2	%	31,705		1.8	%	30,811		1.7	%




Subtotal/total percentage	1,516,881		100.0	%	1,735,545		100.0	%	1,752,094		100.0	%
Short term investments	53,024				29,527				23,060
Total investments	$	1,569,905			$	1,765,072			$	1,775,154

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)


	September 30, 2020				December 31, 2019				September 30, 2019
Geographic Dispersion(1)	Investments at Fair Value		Percentage of Investment Portfolio		Investments at Fair Value		Percentage of Investment Portfolio		Investments at Fair Value		Percentage of Investment Portfolio
United States	$	1,456,847	96.1	%	$	1,656,031	95.4	%	$	1,665,124	95.0	%
Canada	28,735		1.9	%	27,648		1.7	%	29,071		1.7	%
Cayman Islands	11,219		0.7	%	14,182		0.8	%	14,981		0.9	%
Luxembourg	9,075		0.6	%	10,693		0.6	%	11,247		0.6	%
Netherlands	7,304		0.5	%	8,314		0.5	%	8,081		0.5	%
Cyprus	3,547		0.2	%	4,155		0.2	%	4,038		0.2	%
Bermuda	154		—		528		—		653		—
Germany	—		—		7,212		0.4	%	9,950		0.6	%
Marshall Islands	—		—		6,782		0.4	%	8,949		0.5	%


Subtotal/total percentage	1,516,881		100.0	%	1,735,545		100.0	%	1,752,094		100.0	%
Short term investments	53,024				29,527				23,060
Total investments	$	1,569,905			$	1,765,072			$	1,775,154

(1)The geographic dispersion is determined by the portfolio company's country of domicile.

As of September 30, 2020, December 31, 2019 and September 30, 2019, investments on non-accrual status represented 4.1%, 0.4% and 1.3%, respectively, of the Company's investment portfolio on a fair value basis.

The Company’s investment portfolio may contain senior secured investments that are in the form of lines of credit, delayed draw term loans, revolving credit facilities, or unfunded commitments, which may require the Company to provide funding when requested in accordance with the terms of the underlying agreements. As of September 30, 2020, December 31, 2019 and September 30, 2019, the Company’s unfunded commitments amounted to $60,521, $83,694 and $64,885, respectively. As of November 12, 2020, the Company’s unfunded commitments amounted to $55,806. Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company. Refer to Note 11 for further details on the Company’s unfunded commitments.

Note 7. CION SOF

CION SOF was organized on May 21, 2019 as a Delaware limited liability company, and commenced operations on October 2, 2019 when the Company and BCP Special Opportunities Fund I, LP, or BCP, entered into the limited liability company agreement of CION SOF for purposes of establishing the manner in which the parties would invest in and co-manage CION SOF. CION SOF invests primarily in senior secured loans of U.S. middle-market companies. The Company and BCP contributed a portfolio of loans to CION SOF representing membership equity of $31,289 and $4,470, respectively, in exchange for 87.5% and 12.5% of the membership interests of CION SOF, respectively. The Company and BCP are not required to make any additional capital contributions to CION SOF. The Company’s equity investment in CION SOF is not redeemable. All portfolio and other material decisions regarding CION SOF must be submitted to its board of managers, which is comprised of four members, two of whom were selected by the Company and the other two were selected by BCP. Further, all portfolio and other material decisions require the affirmative vote of at least one board member from the Company and one board member from BCP.

The Company also serves as administrative agent to CION SOF to provide loan servicing functions and other administrative services. In certain cases, these loan servicing functions and other administrative services may be performed by CIM.

On October 2, 2019, CION SOF entered into a senior secured credit facility with MS, or the SOF Credit Facility, for borrowings of up to a maximum amount of $75,000. Advances under the SOF Credit Facility are available through October 2, 2022 and bear interest at a floating rate equal to the three-month LIBOR, plus a spread of (i) 3.0% per year through October 1, 2022 and (i) 3.5% per year thereafter through October 2, 2024. CION SOF's obligations to MS under the SOF Credit Facility are secured by a first priority security interest in all of the assets of CION SOF. On October 2, 2019, CION SOF drew down $64,702 of borrowings under the SOF Credit Facility. As of September 30, 2020 and December 31, 2019, the principal amount outstanding on the SOF Credit Facility was $56,250 and $60,702, respectively. The obligations of CION SOF under the SOF Credit Facility are non-recourse to the Company.

For the nine months ended September 30, 2020 and the year ended December 31, 2019, the Company recorded dividend income from its equity interest in CION SOF of $3,518 and $1,076, respectively.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

In accordance with ASU 2015-02, Consolidation, the Company has determined that CION SOF is a variable interest entity, or VIE. However, the Company is not the primary beneficiary and therefore does not consolidate CION SOF. The Company's maximum exposure to losses from CION SOF is limited to its equity contribution to CION SOF.

The following table sets forth the individual investments in CION SOF's portfolio as of September 30, 2020:


Portfolio Company	Index Rate(a)	Industry	Principal/ Par Amount		Amortized Cost		Fair Value
Senior Secured First Lien Debt
Anthem Sports and Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024	3 Month LIBOR	Media: Diversified & Production	$	3,521	$	3,492	$	3,477
Central Security Group, Inc., L+563, 1.00% LIBOR Floor, 10/6/2021	3 Month LIBOR	Services: Consumer	4,961		4,870		3,467
Coyote Buyer, LLC, L+600, 1.00% LIBOR Floor, 2/6/2026	3 Month LIBOR	Chemicals, Plastics & Rubber	4,975		4,930		4,950
Extreme Reach, Inc., L+750, 1.50% LIBOR Floor, 3/29/2024	1 Month LIBOR	Media: Diversified & Production	4,636		4,579		4,520
Foundation Consumer Healthcare, LLC, L+600, 1.00% LIBOR Floor, 11/2/2023	3 Month LIBOR	Healthcare & Pharmaceuticals	4,712		4,712		4,712
Genesis Healthcare, Inc., L+600, 0.50% LIBOR Floor, 3/6/2023	1 Month LIBOR	Healthcare & Pharmaceuticals	5,000		4,926		4,863
Geon Performance Solutions, LLC, L+625, 1.63% LIBOR Floor, 10/25/2024	1 Month LIBOR	Chemicals, Plastics & Rubber	4,963		4,963		4,764
Jab Wireless, Inc., L+800, 0.00% LIBOR Floor, 5/2/2023	1 Month LIBOR	Telecommunications	5,893		5,893		5,893
Manna Pro Products, LLC, L+600, 1.00% LIBOR Floor, 12/8/2023	1 Month LIBOR	Retail	5,940		5,892		5,880
NewsCycle Solutions, Inc., L+700, 1.00% LIBOR Floor, 12/29/2022	3 Month LIBOR	Media: Advertising, Printing & Publishing	4,784		4,749		4,712
Optio Rx, LLC, L+700, 0.00% LIBOR Floor, 6/28/2024	1 Month LIBOR	Healthcare & Pharmaceuticals	4,975		4,975		4,851
PH Beauty Holdings III. Inc., L+500, 0.00% LIBOR Floor, 9/28/2025	2 Month LIBOR	Consumer Goods: Non-Durable	4,949		4,714		4,628
Pixelle Specialty Solutions LLC, L+650, 1.00% LIBOR Floor, 10/31/2024	1 Month LIBOR	Forest Products & Paper	3,924		3,733		3,910
Polymer Process Holdings, Inc., L+600, 0.00% LIBOR Floor, 5/1/2026	1 Month LIBOR	Chemicals, Plastics & Rubber	4,950		4,884		4,777
Tenere Inc., L+850, 1.00% LIBOR Floor, 5/5/2025	3 Month LIBOR	Capital Equipment	6,000		6,000		6,000
Woodstream Corp., L+625, 1.00% LIBOR Floor, 5/29/2022	1 Month LIBOR	Consumer Goods: Non-Durable	4,956		4,939		4,956
Total Senior Secured First Lien Debt					78,251		76,360
Senior Secured Second Lien Debt
PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023	3 Month LIBOR	Chemicals, Plastics & Rubber	5,000		4,941		4,375
Total Senior Secured Second Lien Debt					4,941		4,375
Short Term Investments(b)
First American Treasury Obligations Fund, Class Z Shares, 0.04%(c)					3,546		3,546
Total Short Term Investments					3,546		3,546
TOTAL INVESTMENTS					$	86,738	$	84,281

a.The 1, 2 and 3 month LIBOR rates were 0.15%, 0.19% and 0.23%, respectively, as of September 30, 2020. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of September 30, 2020, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to September 30, 2020.

b.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.

c.7-day effective yield as of September 30, 2020.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

The following table sets forth the individual investments in CION SOF's portfolio as of December 31, 2019:


Portfolio Company	Index Rate(a)	Industry	Principal/ Par Amount		Amortized Cost		Fair Value
Senior Secured First Lien Debt
Allen Media, LLC, L+650, 1.00% LIBOR Floor, 8/30/2023	3 Month LIBOR	Media: Diversified & Production	$	5,920	$	5,738	$	5,979
Analogic Corp., L+600, 1.00% LIBOR Floor, 6/21/2024	1 Month LIBOR	Healthcare & Pharmaceuticals	4,923		4,876		4,874
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024	3 Month LIBOR	Media: Diversified & Production	3,978		3,939		3,938
Cadence Aerospace, LLC, L+650, 1.00% LIBOR Floor, 11/14/2023	3 Month LIBOR	Aerospace & Defense	4,987		4,892		4,937
Central Security Group, Inc., L+563, 1.00% LIBOR Floor, 10/6/2021	1 Month LIBOR	Services: Consumer	4,987		4,876		4,339
CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021	1 Month LIBOR	Hotel, Gaming & Leisure	5,985		5,877		5,865
Extreme Reach, Inc., L+750, 0.00% LIBOR Floor, 3/29/2024	1 Month LIBOR	Media: Diversified & Production	4,909		4,839		4,885
Genesis Healthcare, Inc., L+600, 0.50% LIBOR Floor, 3/6/2023	1 Month LIBOR	Healthcare & Pharmaceuticals	5,000		4,905		4,913
Jab Wireless, Inc., L+800, 0.00% LIBOR Floor, 5/2/2023	1 Month LIBOR	Telecommunications	6,000		6,000		6,000
LAV Gear Holdings, Inc., L+550, 1.00% LIBOR Floor, 10/31/2024	3 Month LIBOR	Services: Business	4,987		4,891		4,900
Manna Pro Products, LLC, L+600, 0.00% LIBOR Floor, 12/8/2023	1 Month LIBOR	Retail	5,985		5,927		5,925
NewsCycle Solutions, Inc., L+700, 1.00% LIBOR Floor, 12/29/2022	1 Month LIBOR	Media: Advertising, Printing & Publishing	4,933		4,886		4,883
PH Beauty Holdings III. Inc., L+500, 0.00% LIBOR Floor, 9/28/2025	1 Month LIBOR	Consumer Goods: Non-Durable	4,987		4,722		4,788
Polymer Process Holdings, Inc., L+600, 0.00% LIBOR Floor, 5/1/2026	1 Month LIBOR	Chemicals, Plastics & Rubber	4,987		4,914		4,913
Woodstream Corp., L+600, 1.00% LIBOR Floor, 5/29/2022	1 Month LIBOR	Consumer Goods: Non-Durable	5,000		4,976		5,000
Total Senior Secured First Lien Debt					76,258		76,139
Senior Secured Second Lien Debt
1A Smart Start LLC, L+825, 1.00% LIBOR Floor, 8/21/2022	1 Month LIBOR	High Tech Industries	4,000		3,907		3,940
ABG Intermediate Holdings 2 LLC, L+775, 1.00% LIBOR Floor, 9/29/2025	1 Month LIBOR	Retail	3,000		3,005		3,000
PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023	3 Month LIBOR	Chemicals, Plastics & Rubber	5,000		4,928		4,800
STG-Fairway Acquisitions, Inc., L+925, 1.00% LIBOR Floor, 6/30/2023	1 Month LIBOR	Services: Business	5,000		4,809		5,000
Total Senior Secured Second Lien Debt					16,649		16,740
Short Term Investments(b)
First American Treasury Obligations Fund, Class Z Shares, 1.49%(c)					2,757		2,757
Total Short Term Investments					2,757		2,757
TOTAL INVESTMENTS					$	95,664	$	95,636

a.The 1 and 3 month LIBOR rates were 1.76% and 1.91%, respectively, as of December 31, 2019. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of December 31, 2019, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to December 31, 2019.

b.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.

c.7-day effective yield as of December 31, 2019.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

The following table includes selected balance sheet information for CION SOF as of September 30, 2020 and December 31, 2019:


Selected Balance Sheet Information:	September 30, 2020		December 31, 2019
Investments, at fair value (amortized cost of $86,738 and $95,664, respectively)	$	84,281	$	95,636
Cash and other assets	12		363
Receivable for investments sold and repaid	4,828		80
Interest receivable on investments	935		727
Total assets	$	90,056	$	96,806

Credit facility (net of unamortized debt issuance costs of $945 and $1,123, respectively)	$	55,305	$	59,579
Other liabilities	2,122		1,495
Total liabilities	57,427		61,074
Members' capital	32,629		35,732
Total liabilities and members' capital	$	90,056	$	96,806

The following table includes selected statement of operations information for CION SOF for the three and nine months ended September 30, 2020 and the period from October 2, 2019 (Commencement of Operations) through December 31, 2019:


Selected Statement of Operations Information:	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020		Period from October 2, 2019 (Commencement of Operations) through December 31, 2019
Total revenues	$	1,922	$	6,512	$	2,326
Total expenses	717		2,492		1,095
Net realized loss on investments	(336)		(673)		—
Net change in unrealized appreciation (depreciation) on investments	1,136		(2,428)		(28)
Net increase in net assets	$	2,005	$	919	$	1,203

Note 8. Financing Arrangements

The following table presents summary information with respect to the Company’s outstanding financing arrangements as of September 30, 2020:


Financing Arrangement	Type of Financing Arrangement	Rate	Amount Outstanding		Amount Available		Maturity Date
JPM Credit Facility	Term Loan Credit Facility	L+3.25%	$	625,000	$	75,000	May 15, 2023
UBS Facility	Repurchase Agreement	L+3.90%	100,000		—		November 19, 2020(1)

			$	725,000	$	75,000

(1) - Subsequently extended to December 18, 2020 (see "UBS Facility" in this Note 8).

JPM Credit Facility

On August 26, 2016, 34th Street entered into a senior secured credit facility with JPM. The senior secured credit facility with JPM, or the JPM Credit Facility, provided for borrowings in an aggregate principal amount of $150,000, of which $25,000 may be funded as a revolving credit facility, each subject to conditions described in the JPM Credit Facility. On August 26, 2016, 34th Street drew down $57,000 of borrowings under the JPM Credit Facility. On August 21, 2018, 34th Street drew down $25,577 of additional borrowings under the Amended JPM Credit Facility (as defined below).

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

On September 30, 2016, July 11, 2017, November 28, 2017 and May 23, 2018, 34th Street amended and restated the JPM Credit Facility, or the Amended JPM Credit Facility, with JPM. Under the Amended JPM Credit Facility entered into on September 30, 2016, the aggregate principal amount available for borrowings was increased from $150,000 to $225,000, of which $25,000 may be funded as a revolving credit facility, subject to conditions described in the Amended JPM Credit Facility. On September 30, 2016, 34th Street drew down $167,423 of additional borrowings under the Amended JPM Credit Facility, a portion of which was used to purchase the portfolio of loans from Credit Suisse Park View BDC, Inc. Under the Amended JPM Credit Facility entered into on July 11, 2017 and November 28, 2017, certain immaterial administrative amendments were made as a result of the termination of AIM as the Company's investment sub-adviser as discussed in Note 1. Under the Amended JPM Credit Facility entered into on May 23, 2018, (i) the aggregate principal amount available for borrowings was increased from $225,000 to $275,000, of which $25,000 may be funded as a revolving credit facility, subject to conditions described in the Amended JPM Credit Facility, (ii) the reinvestment period was extended until August 24, 2020 and (iii) the maturity date was extended to August 24, 2021.

On May 15, 2020, 34th Street amended and restated the Amended JPM Credit Facility, or the Second Amended JPM Credit Facility, with JPM in order to fully repay all amounts outstanding under the Citibank Credit Facility and the MS Credit Facility and repay $100,000 of advances outstanding under the UBS Facility (as described below). Under the Second Amended JPM Credit Facility, the aggregate principal amount available for borrowings was increased from $275,000 to $700,000, of which $75,000 may be funded as a revolving credit facility, subject to conditions described in the Second Amended JPM Credit Facility, during the reinvestment period. Under the Second Amended JPM Credit Facility, the reinvestment period was extended until May 15, 2022 and the maturity date was extended to May 15, 2023. Advances under the Second Amended JPM Credit Facility bear interest at a floating rate equal to the three-month LIBOR, plus a spread of 3.25% per year. On May 15, 2020 and May 19, 2020, 34th Street drew down $358,878 and $100,000 of borrowings under the Second Amended JPM Credit Facility, respectively. On May 15, 2020, May 22, 2020, June 12, 2020, June 19, 2020, June 29, 2020, July 6, 2020 and August 14, 2020, 34th Street repaid $13,843, $15,000, $5,000, $18,000, $11,000, $13,500 and $7,353 of borrowings under the Second Amended JPM Credit Facility, respectively.

Advances under the Second Amended JPM Credit Facility bear interest at a floating rate equal to the three-month LIBOR, plus a spread of 3.25% per year, which was increased from 3.00% under the Second Amended JPM Credit Facility. Interest is payable quarterly in arrears. All advances under the Second Amended JPM Credit Facility will mature, and all accrued and unpaid interest thereunder will be due and payable, by no later than May 15, 2023, which was extended from August 24, 2021. 34th Street may prepay advances pursuant to the terms and conditions of the Second Amended JPM Credit Facility, subject to a 1% premium in certain circumstances. In addition, 34th Street will be subject to a non-usage fee of 1.0% per year on the amount, if any, of the aggregate principal amount available under the Second Amended JPM Credit Facility that has not been borrowed during the period from August 23, 2018, and ending on, but excluding, May 15, 2022. The non-usage fees, if any, are payable quarterly in arrears.

As of September 30, 2020, December 31, 2019 and September 30, 2019, the principal amount outstanding on the Amended JPM Credit Facility was $625,000, $250,000 and $250,000, respectively.

The Company contributed loans and other corporate debt securities to 34th Street in exchange for 100% of the membership interests of 34th Street, and may contribute additional loans and other corporate debt securities to 34th Street in the future. 34th Street’s obligations to JPM under the Second Amended JPM Credit Facility are secured by a first priority security interest in all of the assets of 34th Street. The obligations of 34th Street under the Second Amended JPM Credit Facility are non-recourse to the Company, and the Company’s exposure under the Second Amended JPM Credit Facility is limited to the value of the Company’s investment in 34th Street.

In connection with the Second Amended JPM Credit Facility, 34th Street has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. As of and for the nine months ended September 30, 2020, 34th Street was in compliance with all covenants and reporting requirements.

The Company incurred debt issuance costs of $9,677 in connection with obtaining and amending the JPM Credit Facility, which were recorded as a direct reduction to the outstanding balance of the Second Amended JPM Credit Facility, which is included in the Company’s consolidated balance sheet as of September 30, 2020 and will amortize to interest expense over the term of the Second Amended JPM Credit Facility. At September 30, 2020, the unamortized portion of the debt issuance costs was $5,581.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

For the three and nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019, the components of interest expense, average borrowings, and weighted average interest rate for the Amended JPM Credit Facility were as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,						Year Ended December 31,
	2020			2019			2020			2019			2019
Stated interest expense	$	5,761		$	3,446		$	13,482		$	10,529		$	13,769
Amortization of deferred financing costs	537			154			1,046			612			764
Non-usage fee	181			64			318			190			253
Total interest expense	$	6,479		$	3,664		$	14,846		$	11,331		$	14,786
Weighted average interest rate(1)	3.68		%	5.49		%	4.03		%	5.65		%	5.53		%
Average borrowings	$	629,338		$	250,000		$	448,842		$	250,000		$	250,000

(1)Includes the stated interest expense and non-usage fee, if any, on the unused portion of the Second Amended JPM Credit Facility and is annualized for periods covering less than one year.

UBS Facility

On May 19, 2017, the Company, through two newly-formed, wholly-owned, special-purpose financing subsidiaries, entered into a financing arrangement with UBS pursuant to which up to $125,000 was made available to the Company.

Pursuant to the financing arrangement, assets in the Company's portfolio may be contributed from time to time to Murray Hill Funding II through Murray Hill Funding, LLC, or Murray Hill Funding, each a newly-formed, wholly-owned, special-purpose financing subsidiary of the Company. On May 19, 2017, the Company contributed assets to Murray Hill Funding II. The assets held by Murray Hill Funding II secure the obligations of Murray Hill Funding II under Class A Notes, or the Notes, issued by Murray Hill Funding II. Pursuant to an Indenture, dated May 19, 2017, between Murray Hill Funding II and U.S. Bank National Association, or U.S. Bank, as trustee, or the Indenture, the aggregate principal amount of Notes that may be issued by Murray Hill Funding II from time to time was $192,308. Murray Hill Funding purchased the Notes issued by Murray Hill Funding II at a purchase price equal to their par value. Murray Hill Funding makes capital contributions to Murray Hill Funding II to, among other things, maintain the value of the portfolio of assets held by Murray Hill Funding II.

Principal on the Notes will be due and payable on the stated maturity date of May 19, 2027. Pursuant to the Indenture, Murray Hill Funding II has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar transactions. The Indenture contains events of default customary for similar transactions, including, without limitation: (a) the failure to make principal payments on the Notes at their stated maturity or any earlier redemption date or to make interest payments on the Notes and such failure is not cured within three business days; (b) the failure to disburse amounts in accordance with the priority of payments and such failure is not cured within three business days; and (c) the occurrence of certain bankruptcy and insolvency events with respect to Murray Hill Funding II or Murray Hill Funding.

Murray Hill Funding, in turn, entered into a repurchase transaction with UBS, pursuant to the terms of a Global Master Repurchase Agreement and the related Annex and Master Confirmation thereto, each dated May 19, 2017, or collectively, the UBS Facility. Pursuant to the UBS Facility, on May 19, 2017 and June 19, 2017, UBS purchased Notes held by Murray Hill Funding for an aggregate purchase price equal to 65% of the principal amount of Notes purchased. Subject to certain conditions, the maximum principal amount of Notes that may be purchased under the UBS Facility was $192,308. Accordingly, the aggregate maximum amount payable to Murray Hill Funding under the UBS Facility would not exceed $125,000. Murray Hill Funding was required to repurchase the Notes sold to UBS under the UBS Facility by no later than May 19, 2020. The financing fee under the UBS Facility was equal to the three-month LIBOR plus a spread of up to 3.50% per year for the relevant period.

On December 1, 2017, Murray Hill Funding II amended and restated the Indenture, or the Amended Indenture, pursuant to which the aggregate principal amount of Notes that may be issued by Murray Hill Funding II was increased from $192,308 to $266,667. Murray Hill Funding will purchase the Notes to be issued by Murray Hill Funding II from time to time. On December 1, 2017, Murray Hill Funding entered into a First Amended and Restated Master Confirmation to the Global Master Repurchase Agreement, or the Amended Master Confirmation, which sets forth the terms of the repurchase transaction between Murray Hill Funding and UBS under the UBS Facility. As part of the Amended Master Confirmation, on December 15, 2017 and April 2, 2018, UBS purchased the increased aggregate principal amount of Notes held by Murray Hill Funding for an aggregate purchase price equal to 75% of the principal amount of Notes issued. As a result of the Amended Master Confirmation, the aggregate maximum amount payable to Murray Hill Funding and made available to the Company under the UBS Facility was increased from $125,000 to $200,000. No other material terms of the UBS Facility were revised in connection with the amended UBS Facility, or the Amended UBS Facility.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

On May 19, 2020, Murray Hill Funding entered into a Second Amended and Restated Master Confirmation to the Global Master Repurchase Agreement, or the Second Amended Master Confirmation, which extended the date that Murray Hill Funding will be required to repurchase the Notes sold to UBS under the UBS Facility from May 19, 2020 to November 19, 2020, and increased the spread on the financing fee from 3.50% to 3.90% per year. On November 12, 2020, Murray Hill Funding entered into a Third Amended and Restated Master Confirmation to the Global Master Repurchase Agreement to further extend the date that Murray Hill Funding will be required to repurchase the Notes to December 18, 2020.

On May 19, 2020, Murray Hill Funding repurchased Notes in the aggregate principal amount of $133,333 from UBS for an aggregate repurchase price of $100,000, which was then repaid by Murray Hill Funding II. The repurchase of the Notes on May 19, 2020 resulted in a repayment of one-half of the outstanding amount of borrowings under the UBS Facility as of May 19, 2020. As of September 30, 2020, Notes remained outstanding in the aggregate principal amount of $133,333, which was purchased by Murray Hill Funding from Murray Hill Funding II and subsequently sold to UBS under the UBS Facility for aggregate proceeds of $100,000.

UBS may require Murray Hill Funding to post cash collateral if, without limitation, the sum of the market value of the portfolio of assets and the cash and eligible investments held by Murray Hill Funding II, together with any posted cash collateral, is less than the required margin amount under the UBS Facility; provided, however, that Murray Hill Funding will not be required to post cash collateral with UBS until such market value has declined at least 10% from the initial market value of the portfolio assets.

The Company has no contractual obligation to post any such cash collateral or to make any payments to UBS on behalf of Murray Hill Funding. The Company may, but is not obligated to, increase its investment in Murray Hill Funding for the purpose of funding any cash collateral or payment obligations for which Murray Hill Funding becomes obligated in connection with the Amended UBS Facility. The Company’s exposure under the Amended UBS Facility is limited to the value of the Company’s investment in Murray Hill Funding.

Pursuant to the Amended UBS Facility, Murray Hill Funding has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar transactions. The Amended UBS Facility contains events of default customary for similar financing transactions, including, without limitation: (a) failure to transfer the Notes to UBS on the applicable purchase date or repurchase the Notes from UBS on the applicable repurchase date; (b) failure to pay certain fees and make-whole amounts when due; (c) failure to post cash collateral as required; (d) the occurrence of insolvency events with respect to Murray Hill Funding; and (e) the admission by Murray Hill Funding of its inability to, or its intention not to, perform any of its obligations under the Amended UBS Facility.

Murray Hill Funding paid an upfront fee and incurred certain other customary costs and expenses totaling $2,637 in connection with obtaining the Amended UBS Facility, which were recorded as a direct reduction to the outstanding balance of the Amended UBS Facility, which is included in the Company’s consolidated balance sheets and was amortized to interest expense over the term of the UBS Facility. At September 30, 2020, all upfront fees and other expenses were fully amortized.

As of September 30, 2020, Notes in the aggregate principal amount of $133,333 had been purchased by Murray Hill Funding from Murray Hill Funding II and subsequently sold to UBS under the Amended UBS Facility for aggregate proceeds of $100,000. The carrying amount outstanding under the Amended UBS Facility approximates its fair value. The Company funded each purchase of Notes by Murray Hill Funding through a capital contribution to Murray Hill Funding. As of September 30, 2020, the amount due at maturity under the Amended UBS Facility was $100,000. The Notes issued by Murray Hill Funding II and purchased by Murray Hill Funding eliminate in consolidation on the Company’s consolidated financial statements.

As of September 30, 2020, the fair value of assets held by Murray Hill Funding II was $173,310.


	Three Months Ended September 30,						Nine Months Ended September 30,						Year Ended December 31,
	2020			2019			2020			2019			2019
Stated interest expense	$	1,091		$	2,988		$	5,702		$	9,138		$	11,951

Amortization of deferred financing costs	—			237			359			703			940
Total interest expense	$	1,091		$	3,225		$	6,061		$	9,841		$	12,891
Weighted average interest rate(1)	4.27		%	5.85		%	4.97		%	6.02		%	5.89		%
Average borrowings	$	100,000		$	200,000		$	150,730		$	200,000		$	200,000

(1)Includes the stated interest expense and non-usage fee, if any, on the unused portion of the Amended UBS Facility and is annualized for periods covering less than one year.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

Citibank Credit Facility

On March 29, 2017, Flatiron Funding II entered into a senior secured credit facility with Citibank. The senior secured credit facility with Citibank, or the Citibank Credit Facility, provided for a revolving credit facility in an aggregate principal amount of $325,000, subject to compliance with a borrowing base. On July 11, 2017, Flatiron Funding II amended the Citibank Credit Facility, or the Amended Citibank Credit Facility, with Citibank to make certain immaterial administrative amendments as a result of the termination of AIM as the Company's investment sub-adviser as discussed in Note 1.

On March 14, 2019, Flatiron Funding II further amended the Citibank Credit Facility, or the Second Amended Citibank Credit Facility, with Citibank to (i) increase the aggregate principal amount available for borrowings from $325,000 to $350,000, subject to compliance with a borrowing base, (ii) extend the reinvestment period for two years until March 29, 2021 and (iii) extend the maturity date until March 30, 2022.

As of December 31, 2019 and September 30, 2019, the principal amount outstanding on the Second Amended Citibank Credit Facility was $278,542 and $277,542, respectively. On May 15, 2020, Flatiron Funding II repaid all amounts outstanding on the Second Amended Citibank Credit Facility using a portion of the proceeds from the Second Amended JPM Credit Facility (described above).

Advances under the Second Amended Citibank Credit Facility bore interest at a floating rate equal to (1) the higher of (a) the Citibank prime rate, (b) the federal funds rate plus 1.5% or (c) the three-month LIBOR plus 1.0%, plus (2) a spread of 2% per year. In addition, Flatiron Funding II was subject to a non-usage fee of 0.75% per year of the amount of the aggregate principal amount available under the Second Amended Citibank Credit Facility that had not been borrowed. Flatiron Funding II incurred certain customary costs and expenses in connection with obtaining and amending the Citibank Credit Facility.

The Company incurred debt issuance costs of $3,373 in connection with obtaining and amending the Citibank Credit Facility, which were recorded as a direct reduction to the outstanding balance of the Second Amended Citibank Credit Facility, which was included in the Company’s consolidated balance sheets and amortized to interest expense over the term of the Second Amended Citibank Credit Facility. All unamortized debt issuance costs were expensed upon the repayment of all amounts outstanding on the Second Amended Citibank Credit Facility on May 15, 2020.

Flatiron Funding II’s obligations to Citibank under the Second Amended Citibank Credit Facility were secured by a first priority security interest in all of the assets of Flatiron Funding II. The obligations of Flatiron Funding II under the Second Amended Citibank Credit Facility were non-recourse to the Company, and the Company’s exposure under the Second Amended Citibank Credit Facility was limited to the value of the Company’s investment in Flatiron Funding II.


	Three Months Ended September 30,					Nine Months Ended September 30,						Year Ended December 31,
	2020		2019			2020			2019			2019
Stated interest expense	$	—	$	3,526		$	3,171		$	10,129		$	12,783
Amortization of deferred financing costs	—		174			1,551			508			682
Non-usage fee	—		65			288			282			467
Total interest expense	$	—	$	3,765		$	5,010		$	10,919		$	13,932
Weighted average interest rate(1)	—		4.43		%	3.72		%	4.67		%	4.60		%
Average borrowings	$	—	$	316,129		$	122,069		$	293,849		$	283,681

(1)Includes the stated interest expense and non-usage fee, if any, on the unused portion of the Second Amended Citibank Credit Facility and is annualized for periods covering less than one year.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

MS Credit Facility

On December 19, 2017, 33rd Street entered into a senior secured credit facility, or the MS Credit Facility, with MS. The MS Credit Facility provided for a revolving credit facility in an aggregate principal amount of up to $200,000, subject to compliance with a borrowing base.

On July 9, 2018, 33rd Street amended and restated the MS Credit Facility to make certain immaterial administrative amendments. 33rd Street further amended and restated the MS Credit Facility, or the Amended MS Credit Facility, with MS on December 18, 2018. Pursuant to the Amended MS Credit Facility, 33rd Street could have prepaid advances pursuant to the terms and conditions of the loan and servicing agreement subject to a 1% premium if the amount of the Amended MS Credit Facility was reduced or terminated on or prior to December 19, 2020.

Pursuant to the terms of the loan and servicing agreement, on March 15, 2019, 33rd Street reduced the aggregate principal amount available for borrowings under the Amended MS Credit Facility from $200,000 to $150,000.

On June 5, 2018, June 12, 2018, June 28, 2018, March 11, 2020 and March 23, 2020, 33rd Street drew down $25,000, $75,000, $50,000, $10,000 and $4,917 of borrowings under the Amended MS Credit Facility, respectively. On May 8, 2019, May 23, 2019, July 29, 2019 and November 6, 2019, 33rd Street repaid $20,000, $5,000, $10,000 and $2,500 of borrowings under the Amended MS Credit Facility, respectively. As of December 31, 2019 and September 30, 2019, the principal amount outstanding on the Amended MS Credit Facility was $112,500 and $115,000, respectively. On May 15, 2020, 33rd Street repaid all amounts outstanding on the Amended MS Credit Facility using a portion of the proceeds from the Second Amended JPM Credit Facility.

Advances under the Amended MS Credit Facility were available through December 19, 2020 and bore interest at a floating rate equal to the three-month LIBOR, plus a spread of 3.0% per year through December 19, 2020. All advances under the Amended MS Credit Facility and all accrued and unpaid interest thereunder were due and payable by no later than December 19, 2022. 33rd Street incurred certain customary costs and expenses in connection with obtaining and amending the MS Credit Facility.

33rd Street's obligations to MS under the Amended MS Credit Facility were secured by a first priority security interest in all of the assets of 33rd Street. The obligations of 33rd Street under the Amended MS Credit Facility were non-recourse to the Company, and the Company's exposure under the Amended MS Credit Facility was limited to the value of the Company's investment in 33rd Street. 33rd Street appointed CIM to manage its portfolio.

33rd Street paid an upfront fee and incurred certain other customary costs and expenses totaling $2,591 in connection with obtaining and amending the MS Credit Facility, which the Company initially recorded as prepaid expenses and other assets on the Company’s consolidated balance sheets and amortized to interest expense over the term of the Amended MS Credit Facility. On June 5, 2018, unamortized upfront fees were recorded as a direct reduction to the outstanding balance of the Amended MS Credit Facility in the Company’s consolidated balance sheet. All unamortized debt issuance costs were expensed upon the repayment of all amounts outstanding on the Amended MS Credit Facility on May 15, 2020.


	Three Months Ended September 30,					Nine Months Ended September 30,						Year Ended December 31,
	2020		2019			2020			2019			2019
Stated interest expense	$	—	$	1,648		$	1,928		$	5,712		$	7,173
Amortization of deferred financing costs	—		130			1,544			387			512
Non-usage fee	—		61			87			167			237
Total interest expense	$	—	$	1,839		$	3,559		$	6,266		$	7,922
Weighted average interest rate(1)	—		5.66		%	4.50		%	5.76		%	5.65		%
Average borrowings	$	—	$	118,043		$	58,752		$	134,560		$	129,247

(1)Includes the stated interest expense and non-usage fee, if any, on the unused portion of the Amended MS Credit Facility and is annualized for periods covering less than one year.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

Note 9. Fair Value of Financial Instruments

The following table presents fair value measurements of the Company’s portfolio investments as of September 30, 2020 and December 31, 2019, according to the fair value hierarchy:


	September 30, 2020(1)								December 31, 2019(2)
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Senior secured first lien debt	$	—	$	—	$	1,232,505	$	1,232,505	$	—	$	—	$	1,351,767	$	1,351,767
Senior secured second lien debt	—		—		161,784		161,784		—		—		248,253		248,253
Collateralized securities and structured products - debt	—		—		—		—		—		—		7,212		7,212
Collateralized securities and structured products - equity	—		—		11,219		11,219		—		—		14,182		14,182
Unsecured debt	—		—		4,750		4,750		—		—		4,900		4,900
Equity	2,134		—		63,288		65,422		6,842		—		56,886		63,728
Short term investments	53,024		—		—		53,024		29,527		—		—		29,527

Total Investments	$	55,158	$	—	$	1,473,546	$	1,528,704	$	36,369	$	—	$	1,683,200	$	1,719,569

(1)Excludes the Company's $28,551 investment in CION SOF and $12,650 investment in BCP Great Lakes Fund LP, which were measured at NAV.

(2)Excludes the Company's $31,265 investment in CION SOF and $14,238 investment in BCP Great Lakes Fund LP, which were measured at NAV.

The following table presents fair value measurements of the Company’s portfolio investments as of September 30, 2019 according to the fair value hierarchy:


	September 30, 2019
	Level 1		Level 2		Level 3		Total
Senior secured first lien debt	$	—	$	—	$	1,417,752	$	1,417,752
Senior secured second lien debt	—		—		268,656		268,656
Collateralized securities and structured products - debt	—		—		9,950		9,950
Collateralized securities and structured products - equity	—		—		14,981		14,981
Equity	5,951		—		34,804		40,755
Short term investments	23,060		—		—		23,060
Total Investments	$	29,011	$	—	$	1,746,143	$	1,775,154

The following tables provide a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30, 2020
	Senior Secured First Lien Debt		Senior Secured Second Lien Debt		Collateralized Securities and Structured Products - Equity		Unsecured Debt		Equity		Total
Beginning balance, June 30, 2020	$	1,238,256	$	193,198	$	11,292	$	4,800	$	50,692	$	1,498,238
Investments purchased	62,983		860		—		—		12,206		76,049
Net realized loss	(35,479)		(7,059)		—		—		—		(42,538)
Net change in unrealized appreciation (depreciation)	45,368		5,416		299		(53)		390		51,420
Accretion of discount	2,805		412		—		3		—		3,220
Sales and principal repayments(1)	(81,428)		(31,043)		(372)		—		—		(112,843)
Ending balance, September 30, 2020	$	1,232,505	$	161,784	$	11,219	$	4,750	$	63,288	$	1,473,546
Change in net unrealized appreciation (depreciation) on investments still held as of September 30, 2020(2)	$	17,032	$	(2,226)	$	299	$	(53)	$	390	$	15,442

(1)Includes non-cash restructured securities.

(2)Included in net change in unrealized appreciation (depreciation) on investments in the consolidated statements of operations.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)


	Nine Months Ended September 30, 2020
	Senior Secured First Lien Debt		Senior Secured Second Lien Debt		Collateralized Securities and Structured Products - Debt		Collateralized Securities and Structured Products - Equity		Unsecured Debt		Equity		Total
Beginning balance, December 31, 2019	$	1,351,767	$	248,253	$	7,212	$	14,182	$	4,900	$	56,886	$	1,683,200
Investments purchased(1)	299,595		1,772		—		—		—		20,923		322,290
Net realized loss	(49,964)		(7,060)		—		—		—		—		(57,024)
Net change in unrealized depreciation	(28,074)		(10,391)		—		(1,988)		(161)		(14,521)		(55,135)
Accretion of discount	9,074		1,152		—		—		11		—		10,237
Sales and principal repayments(1)	(349,893)		(71,942)		(7,212)		(975)		—		—		(430,022)
Ending balance, September 30, 2020	$	1,232,505	$	161,784	$	—	$	11,219	$	4,750	$	63,288	$	1,473,546
Change in net unrealized (depreciation) appreciation on investments still held as of September 30, 2020(2)	$	(43,104)	$	(15,130)	$	—	$	(1,988)	$	(161)	$	(14,521)	$	(74,904)

(1)Includes non-cash restructured securities.

(2)Included in net change in unrealized depreciation on investments in the consolidated statements of operations.


	Three Months Ended September 30, 2019
	Senior Secured First Lien Debt		Senior Secured Second Lien Debt		Collateralized Securities and Structured Products - Debt		Collateralized Securities and Structured Products - Equity		Equity		Total
Beginning balance, June 30, 2019	$	1,452,981	$	291,549	$	13,305	$	15,414	$	39,333	$	1,812,582
Investments purchased	93,322		89		—		—		1,931		95,342
Net realized gain (loss)	89		26		(426)		—		—		(311)
Net change in unrealized (depreciation) appreciation	(17,454)		1,134		(1)		(337)		(6,460)		(23,118)
Accretion of discount	3,367		356		—		—		—		3,723
Sales and principal repayments	(114,553)		(24,498)		(2,928)		(96)		—		(142,075)
Ending balance, September 30, 2019	$	1,417,752	$	268,656	$	9,950	$	14,981	$	34,804	$	1,746,143
Change in net unrealized (depreciation) appreciation on investments still held as of September 30, 2019(1)	$	(15,950)	$	1,031	$	(1)	$	(337)	$	(6,460)	$	(21,717)

(1)Included in net change in unrealized (depreciation) appreciation on investments in the consolidated statements of operations.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)


	Nine Months Ended September 30, 2019
	Senior Secured First Lien Debt		Senior Secured Second Lien Debt		Collateralized Securities and Structured Products - Debt		Collateralized Securities and Structured Products - Equity		Equity		Total
Beginning balance, December 31, 2018	$	1,462,989	$	323,365	$	15,193	$	14,827	$	29,076	$	1,845,450
Investments purchased(1)	366,000		14,769		—		—		13,908		394,677
Net realized (loss) gain	(2,893)		13		(475)		—		(155)		(3,510)
Net change in unrealized (depreciation) appreciation	(26,992)		(2,826)		(101)		445		(8,025)		(37,499)
Accretion of discount	8,939		1,119		—		—		—		10,058
Sales and principal repayments(1)	(390,291)		(67,784)		(4,667)		(291)		—		(463,033)
Ending balance, September 30, 2019	$	1,417,752	$	268,656	$	9,950	$	14,981	$	34,804	$	1,746,143
Change in net unrealized (depreciation) appreciation on investments still held as of September 30, 2019(2)	$	(30,222)	$	(2,949)	$	(101)	$	445	$	(8,025)	$	(40,852)

(1)Includes non-cash restructured securities.

(2)Included in net change in unrealized (depreciation) appreciation on investments in the consolidated statements of operations.

Significant Unobservable Inputs

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of investments as of September 30, 2020, December 31, 2019 and September 30, 2019 were as follows:

September 30, 2020

Fair Value

Valuation Techniques/
Methodologies

Unobservable
Inputs

Range

Weighted Average(1)

Senior secured first lien debt

910,343

Discounted Cash Flow

Discount Rates

2.7%

—

36.2%

10.6%

266,597

Broker Quotes

N/A

32,592

Market Comparable Approach

Revenue Multiple

1.83x

—

2.50x

2.10x

22,623

EBITDA Multiple

1.88x

—

9.00x

6.12x

350

Other(2)

N/A

Senior secured second lien debt

135,706

Discounted Cash Flow

Discount Rates

8.6%

—

17.8%

12.1%

18,933

Broker Quotes

N/A

5,593

Market Comparable Approach

EBITDA Multiple

3.75x

—

7.00x

4.06x

1,552

Revenue Multiple

0.20x

N/A

Collateralized securities and structured products - equity

11,219

Discounted Cash Flow

Discount Rates

14.5%

—

23.0%

16.0%

Unsecured debt

4,750

Discounted Cash Flow

Discount Rates

16.5%

N/A

Equity

32,895

Market Comparable Approach

EBITDA Multiple

1.88x

—

12.00x

5.56x

7,822

$ per kW

$264.50

N/A

7,336

Revenue Multiple

0.20x

—

1.55x

1.23x

15,223

Discounted Cash Flow

Discount Rates

21.49%

N/A

Options Pricing Model

Expected Volatility

60.0%

—

85.0%

Total

1,473,546

(1)Weighted average amounts are based on the estimated fair values.

(2)Fair value based on expected outcome of proposed corporate transactions and/or other factors.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

December 31, 2019

Fair Value

Valuation Techniques/
Methodologies

Unobservable
Inputs

Range

Weighted Average(1)

Senior secured first lien debt

1,115,676

Discounted Cash Flow

Discount Rates

5.0%

24.7%

10.0%

225,310

Broker Quotes

N/A

7,591

Market Comparable Approach

EBITDA Multiple

5.25x

9.00x

7.49x

3,190

Other(2)

N/A

Senior secured second lien debt

139,363

Discounted Cash Flow

Discount Rates

9.0%

14.9%

11.0%

107,816

Broker Quotes

N/A

1,074

Market Comparable Approach

EBITDA Multiple

5.25x

7.55x

Collateralized securities and structured products - debt

7,212

Other(2)

N/A

Collateralized securities and structured products - equity

11,274

Discounted Cash Flow

Discount Rates

12.5%

16.0%

13.0%

2,908

Other(2)

N/A

Unsecured debt

4,900

Discounted Cash Flow

Discount Rates

15.5%

N/A

Equity

33,230

Market Comparable Approach

EBITDA Multiple

4.50x

13.00x

7.18x

9,456

Revenue Multiple

0.30x

3.50x

0.77x

13,270

Discounted Cash Flow

Discount Rates

21.6%

N/A

914

Broker Quotes

N/A

Options Pricing Model

Expected Volatility

60.0%

—

92.0%

61.7%

Total

1,683,200

(1)Weighted average amounts are based on the estimated fair values.

(2)Fair value based on expected outcome of proposed corporate transactions and/or other factors.

September 30, 2019

Fair Value

Valuation Techniques/
Methodologies

Unobservable
Inputs

Range

Weighted Average(1)

Senior secured first lien debt

984,871

Discounted Cash Flow

Discount Rates

5.0%

—

19.9%

9.7%

388,241

Broker Quotes

N/A

40,129

Market Comparable Approach

EBITDA Multiple

3.50x

—

9.00x

5.74x

3,478

Revenue Multiple

0.60x

N/A

1,033

Other(2)

N/A

Senior secured second lien debt

151,841

Discounted Cash Flow

Discount Rates

9.9%

—

13.9%

11.1%

115,765

Broker Quotes

N/A

1,050

Market Comparable Approach

EBITDA Multiple

7.62x

N/A

Collateralized securities and structured products - debt

9,950

Discounted Cash Flow

Discount Rates

16.0%

N/A

Collateralized securities and structured products - equity

14,981

Discounted Cash Flow

Discount Rates

12.5%

—

16.0%

13.8%

Equity

13,864

Market Comparable Approach

EBITDA Multiple

5.50x

—

9.75x

8.28x

7,399

Revenue Multiple

0.30x

—

4.00x

0.74x

12,637

Discounted Cash Flow

Discount Rates

12.1%

N/A

900

Options Pricing Model

Expected Volatility

31.5%

—

89.2%

36.0%

Broker Quotes

N/A

Total

1,746,143

(1)Weighted average amounts are based on the estimated fair values.

(2)Fair value based on expected outcome of proposed corporate transactions and/or other factors.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

The significant unobservable inputs used in the fair value measurement of the Company’s senior secured first lien debt, senior secured second lien debt, collateralized securities and structured products, unsecured debt, and equity are discount rates, EBITDA multiples, revenue multiples, broker quotes and expected volatility. A significant increase or decrease in discount rates would result in a significantly lower or higher fair value measurement, respectively. A significant increase or decrease in the EBITDA multiples, revenue multiples, expected proceeds from proposed corporate transactions, broker quotes and expected volatility would result in a significantly higher or lower fair value measurement, respectively.

Note 10. General and Administrative Expense

General and administrative expense consisted of the following items for the three and nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,				Year Ended December 31,
	2020		2019		2020		2019		2019
Professional fees	$	198	$	131	$	1,108	$	801	$	996
Transfer agent expense	239		325		894		928		1,289
Valuation expense	241		168		802		510		722
Accounting and administrative costs	224		191		507		394		567
Printing and marketing expense	241		17		359		73		102
Insurance expense	131		108		354		312		421
Director fees and expenses	105		119		334		359		472
Dues and subscriptions	124		82		273		241		343
Due diligence fees	—		—		—		61		61
Other expenses	21		14		78		62		84
Total general and administrative expense	$	1,524	$	1,155	$	4,709	$	3,741	$	5,057

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

Note 11. Commitments and Contingencies

The Company entered into certain contracts with related and other parties that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not experienced claims or losses pursuant to these contracts and believes the risk of loss related to such indemnifications to be remote.

As of September 30, 2020, December 31, 2019 and September 30, 2019,the Company’s unfunded commitments were as follows:


Unfunded Commitments	September 30, 2020(1)		December 31, 2019(1)		September 30, 2019(1)
Mimeo.com, Inc.	$	11,000	$	11,500	$	11,500
West Dermatology Management Holdings, LLC	8,840		—		—
Palmetto Solar, LLC	8,412		19,142		—
Independent Pet Partners Intermediate Holdings, LLC	7,363		7,852		7,852
Foundation Consumer Healthcare, LLC	4,211		4,211		4,211
CircusTrix Holdings, LLC	2,898		2,892		4,904
Instant Web, LLC	2,704		2,704		2,271
Geon Performance Solutions, LLC	2,586		2,586		—
Coyote Buyer, LLC	2,500		—		—
BCP Great Lakes Fund LP	2,110		792		—
AMCP Staffing Intermediate Holdings III, LLC	1,598		1,059		—
Anthem Sports & Entertainment Inc.	1,333		1,333		1,333
Extreme Reach, Inc.	1,163		1,744		1,744
Manna Pro Products, LLC	1,096		5,528		5,528
Moss Holding Company	911		2,232		2,232
LAV Gear Holdings, Inc.	864		864		—
Volta Charging, LLC	750		10,000		12,000
Country Fresh Holdings, LLC	182		327		735
Lift Brands, Inc.	—		3,950		3,650
Adapt Laser Acquisition, Inc.	—		2,000		2,000
Adams Publishing Group, LLC	—		1,600		1,600
Teladoc, Inc.	—		1,250		1,250
American Media, Inc.	—		128		128
Deluxe Entertainment Services Group, Inc.	—		—		1,149
Woodstream Corp.	—		—		559
Spinal USA, Inc. / Precision Medical Inc.	—		—		239
Total	$	60,521	$	83,694	$	64,885

(1)Unless otherwise noted, the funding criteria for these unfunded commitments had not been met at the date indicated.

Unfunded commitments to provide funds to companies are not recorded on the Company’s consolidated balance sheets. Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for the Company. The Company intends to use cash on hand, short-term investments, proceeds from borrowings, and other liquid assets to fund these commitments should the need arise. For information on the companies to which the Company is committed to fund additional amounts as of September 30, 2020, December 31, 2019 and September 30, 2019, refer to the table above and the consolidated schedules of investments. As of November 12, 2020, the Company was committed, upon the satisfaction of certain conditions, to fund an additional $55,806.

The Company will fund its unfunded commitments from the same sources it uses to fund its investment commitments that are funded at the time they are made (i.e., advances from its financing arrangements and/or cash flows from operations). The Company will not fund its unfunded commitments from future net proceeds generated by securities offerings, if any. The Company follows a process to manage its liquidity and ensure that it has available capital to fund its unfunded commitments. Specifically, the Company prepares detailed analyses of the level of its unfunded commitments relative to its then available liquidity on a daily basis. These analyses are reviewed and discussed on a weekly basis by the Company’s executive officers and senior members of CIM (including members of the investment committee) and are updated on a “real time” basis in order to ensure that the Company has adequate liquidity to satisfy its unfunded commitments.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

Note 12. Fee Income

Fee income consists of commitment fees, administrative agent fees, amendment fees and capital structuring and other fees. The following table summarizes the Company’s fee income for the three and nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,				Year Ended December 31,
	2020		2019		2020		2019		2019
Amendment fees	$	687	$	1,381	$	1,804	$	1,825	$	2,033
Capital structuring and other fees	86		711		310		1,089		1,731
Commitment fees	—		—		—		—		80
Administrative agent fees	—		—		—		—		55
Total	$	773	$	2,092	$	2,114	$	2,914	$	3,899

Administrative agent fees are recurring income as long as the Company remains the administrative agent for the related investment. Income from all other fees was non-recurring.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

Note 13. Financial Highlights

The following is a schedule of financial highlights as of and for the nine months ended September 30, 2020 and 2019 and as of and for the year ended December 31, 2019:


	Nine Months Ended September 30,						Year Ended December 31,
	2020			2019			2019
Per share data:(1)
Net asset value at beginning of period	$	8.40		$	8.69		$	8.69
Results of operations:
Net investment income	0.50			0.57			0.77
Net realized and net change in unrealized losses(2)	(1.01)			(0.37)			(0.31)

Net (decrease) increase in net assets resulting from operations(2)	(0.51)			0.20			0.46
Shareholder distributions:
Distributions from net investment income	(0.27)			(0.55)			(0.75)



Net decrease in net assets from shareholders' distributions	(0.27)			(0.55)			(0.75)
Capital share transactions:
Issuance of common stock above net asset value(3)	—			—			—
Repurchases of common stock(4)	—			—			—
Net increase in net assets resulting from capital share transactions	—			—			—
Net asset value at end of period	$	7.62		$	8.34		$	8.40
Shares of common stock outstanding at end of period	113,800,019			113,381,782			113,381,145
Total investment return-net asset value(5)	(6.12)		%	2.29		%	5.55		%
Net assets at beginning of period	$	952,563		$	979,271		$	979,271
Net assets at end of period	$	867,219		$	945,461		$	952,563
Average net assets	$	875,887		$	974,988		$	967,323
Ratio/Supplemental data:
Ratio of net investment income to average net assets(6)	6.51		%	6.65		%	9.03		%
Ratio of gross operating expenses to average net assets(6)(7)	7.24		%	8.78		%	11.76		%
Ratio of expenses to average net assets(6)	7.24		%	8.78		%	11.76		%


Portfolio turnover rate(8)	14.92		%	21.03		%	31.59		%
Asset coverage ratio(9)	2.20			2.12			2.13

(1)The per share data for the nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019 was derived by using the weighted average shares of common stock outstanding during each period.

(2)The amount shown for net realized and net change in unrealized losses on investments is the balancing figure derived from the other figures in the schedule. The amount shown at this caption for a share outstanding throughout the period may not agree with the change in the aggregate gains and losses in portfolio securities for the period because of the timing of sales and repurchases of the Company’s shares in relation to fluctuating market values for the portfolio. As a result, net (decrease) increase in net assets resulting from operations in this schedule may vary from the consolidated statements of operations.

(3)The continuous issuance of shares of common stock may have caused an incremental increase in net asset value per share due to the sale of shares at the then prevailing public offering price and the receipt of net proceeds per share by the Company in excess of net asset value per share on each subscription closing date. The per share impact of the continuous issuance of shares of common stock was an increase to net asset value of less than $0.01 per share during the nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019.

CĪON Investment Corporation

Notes to Consolidated Financial Statements (unaudited)

September 30, 2020

(in thousands, except share and per share amounts)

(4)Repurchases of common stock may cause an incremental decrease in net asset value per share due to the repurchase of shares at a price in excess of net asset value per share on each repurchase date. The per share impact of repurchases of common stock was a decrease to net asset value of less than $0.01 per share during the nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019.

(5)Total investment return-net asset value is a measure of the change in total value for shareholders who held the Company’s common stock at the beginning and end of the period, including distributions paid or payable during the period. Total investment return-net asset value is based on (i) the beginning period net asset value per share on the first day of the period, (ii) the net asset value per share on the last day of the period of (A) one share plus (B) any fractional shares issued in connection with the reinvestment of monthly distributions, and (iii) the value of distributions payable, if any, on the last day of the period. The total investment return-net asset value calculation assumes that monthly cash distributions are reinvested in accordance with the Company's distribution reinvestment plan then in effect as described in Note 5. The total investment return-net asset value does not consider the effect of the sales load from the sale of the Company’s common stock. The total investment return-net asset value includes the effect of the issuance of shares at a net offering price that is greater than net asset value per share, which causes an increase in net asset value per share. Total returns covering less than a full year are not annualized.

(6)Ratio is not annualized for periods less than one year.

(7)Ratio of gross operating expenses to average net assets does not include expense support provided by CIM, if any.

(8)Portfolio turnover rate is calculated using the lesser of year-to-date sales or purchases over the average of the invested assets at fair value, excluding short term investments, and is not annualized.

(9)Asset coverage ratio is equal to (i) the sum of (a) net assets at the end of the period and (b) total senior securities outstanding at the end of the period (excluding unfunded commitments), divided by (ii) total senior securities outstanding at the end of the period.

Note 14. Israeli Securities Regulation

The Securities Regulations (Annual Financial Statements), 2010 of Israel, or the Israeli Securities Regulation, requires certain disclosures that are not required by GAAP.

International Financial Reporting Standards

The differences between GAAP and the International Financial Reporting Standards, which are required under the Israeli Securities Regulation, are not material to the consolidated financial statements of the Company.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

As used in this Quarterly Report on Form 10-Q, “we,” “us,” “our” or similar terms include CĪON Investment Corporation and its consolidated subsidiaries.

The following discussion should be read in conjunction with our unaudited consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019. In addition to historical information, the following discussion and other parts of this Quarterly Report on Form 10-Q contain forward-looking information that involves risks and uncertainties. Amounts and percentages presented herein may have been rounded for presentation and all dollar amounts, excluding share and per share amounts, are presented in thousands unless otherwise noted.

Forward-Looking Statements

Some of the statements within this Quarterly Report on Form 10-Q constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this Quarterly Report on Form 10-Q may include statements as to:

•our future operating results;

•our business prospects and the prospects of our portfolio companies, including our and their ability to achieve our respective objectives as a result of COVID-19;

•the impact of the investments that we expect to make;

•the ability of our portfolio companies to achieve their objectives;

•our current and expected financings and investments;

•the adequacy of our cash resources, financing sources and working capital;

•the use of borrowed money to finance a portion of our investments;

•the timing of cash flows, if any, from the operations of our portfolio companies;

•our contractual arrangements and relationships with third parties;

•the actual and potential conflicts of interest with CIM and Apollo and their respective affiliates;

•the ability of CIM's and AIM's investment professionals to locate suitable investments for us and the ability of CIM to monitor and administer our investments;

•the ability of CIM and its affiliates to attract and retain highly talented professionals;

•the dependence of our future success on the general economy and its impact on the industries in which we invest, including COVID-19 and the related economic disruptions caused thereby;

•the effects of a changing interest rate environment;

•our ability to source favorable private investments;

•our tax status;

•the effect of changes to tax legislation and our tax position;

•the tax status of the companies in which we invest; and

•the timing and amount of distributions and dividends from the companies in which we invest.

In addition, words such as “anticipate,” “believe,” “expect” and “intend” indicate a forward-looking statement, although not all forward-looking statements include these words. The forward-looking statements contained in this Quarterly Report on Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Risk Factors” in Item 1A of Part II of this Quarterly Report on Form 10-Q. Other factors that could cause actual results to differ materially include:

•changes in the economy;

•risks associated with possible disruption in our operations or the economy generally due to terrorism, pandemics, or natural disasters; and

•future changes in laws or regulations and conditions in our operating areas.

We have based the forward-looking statements on information available to us on the date of this Quarterly Report on Form 10-Q. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to review any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

The forward-looking statements contained in this Quarterly Report on Form 10-Q are excluded from the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Overview

We were incorporated under the general corporation laws of the State of Maryland on August 9, 2011 and commenced operations on December 17, 2012 upon raising proceeds of $2,500 from persons not affiliated with us, CIM or Apollo. We are an externally managed, non-diversified closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act. We elected to be treated for federal income tax purposes as a RIC, as defined under Subchapter M of the Code.

Our investment objective is to generate current income and, to a lesser extent, capital appreciation for investors. Our portfolio is comprised primarily of investments in senior secured debt, including first lien loans, second lien loans and unitranche loans, and, to a lesser extent, collateralized securities, structured products and other similar securities, unsecured debt, and equity, of private and thinly traded U.S. middle-market companies. In connection with our debt investments, we may receive equity interests such as warrants or options as additional consideration. We may also purchase equity interests in the form of common or preferred stock in our target companies, either in conjunction with one of our debt investments or through a co-investment with a financial sponsor.

We are managed by CIM, our affiliate and a registered investment adviser. Pursuant to an investment advisory agreement with us, CIM oversees the management of our activities and is responsible for making investment decisions for our portfolio. On November 13, 2020, our board of directors, including a majority of directors who are not interested persons, approved the renewal of the investment advisory agreement with CIM for a period of twelve months commencing December 17, 2020. We and CIM previously engaged AIM to act as our investment sub-adviser.

On July 11, 2017, the members of CIM entered into the Third Amended CIM LLC Agreement for the purpose of creating a joint venture between AIM and CIG. Under the Third Amended CIM LLC Agreement, AIM became a member of CIM and was issued a newly-created class of membership interests in CIM pursuant to which AIM, among other things, shares in the profits, losses, distributions and expenses of CIM with the other members in accordance with the terms of the Third Amended CIM LLC Agreement, which results in CIG and AIM each owning a 50% economic interest in CIM.

On July 10, 2017, our independent directors unanimously approved the termination of the investment sub-advisory agreement with AIM, effective as of July 11, 2017, as part of the new and ongoing relationship among us, CIM and AIM. Although the investment sub-advisory agreement and AIM's engagement as our investment sub-adviser were terminated, AIM's investment professionals continue to perform certain services for CIM and us, including, without limitation, identifying investment opportunities for approval by CIM's investment committee. AIM is not paid a separate fee in exchange for such services, but is entitled to receive distributions as a member of CIM as described above.

On December 4, 2017, the members of CIM entered into the Fourth Amended CIM LLC Agreement. Under the Fourth Amended CIM LLC Agreement, AIM's investment professionals perform certain services for CIM, which include, among other services, (i) assistance with identifying and providing information about potential investment opportunities for approval by CIM’s investment committee; and (ii) providing (a) trade and settlement support; (b) portfolio and cash reconciliation; (c) market pipeline information regarding syndicated deals, in each case, as reasonably requested by CIM; and (d) monthly valuation reports and support for all broker-quoted investments. All of our investment decisions are the sole responsibility of, and are made at the sole discretion of, CIM's investment committee, which consists entirely of CIG personnel.

We seek to meet our investment objective by utilizing the experienced management team of CIM, which includes its access to the relationships and human capital of its affiliates in sourcing, evaluating and structuring transactions, as well as monitoring and servicing our investments. We focus primarily on the senior secured debt of private and thinly-traded U.S. middle-market companies, which we define as companies that generally possess annual EBITDA of $50 million or less, with experienced management teams, significant free cash flow, strong competitive positions and potential for growth.

Revenue

We primarily generate revenue in the form of interest income on the debt securities that we hold and capital gains on debt or other equity interests that we acquire in portfolio companies. The majority of our senior debt investments bear interest at a floating rate. Interest on debt securities is generally payable quarterly or monthly. In some cases, some of our investments may provide for deferred interest payments or PIK interest. The principal amount of the debt securities and any accrued, but unpaid, interest generally will become due at the maturity date. In addition, we may generate revenue in the form of commitment and capital structuring fees, monitoring fees, fees for providing managerial assistance and possibly consulting fees and performance-based fees. Any such fees generated in connection with our investments will be recognized when earned.

Operating Expenses

Our primary operating expenses are the payment of advisory fees under the investment advisory agreement and interest expense on our financing arrangements. Our investment advisory fees compensate CIM for its work in identifying, evaluating, negotiating, executing, monitoring and servicing our investments. We bear all other expenses of our operations and transactions.

Recent Developments - COVID-19

The rapid spread of COVID-19, and associated impacts on the U.S. and global economies and the financial and credit markets, has negatively impacted, and is likely to continue to negatively impact, our business operations and the business operations of some of our portfolio companies. We cannot at this time fully predict the impact of COVID-19 on our business or the business of our portfolio companies, its duration or magnitude or the extent to which it will negatively impact our portfolio companies’ operating results or our own results of operations or financial condition, including, without limitation, our ability to pay distributions. We expect that certain of our portfolio companies will continue to experience economic distress for the foreseeable future and may significantly limit business operations if subjected to prolonged economic distress. These developments could result in a decrease in the value of our investments.

COVID-19 has already had adverse effects on our investment income and we expect that such adverse effects will continue for some time. These adverse effects may require us to restructure certain of our investments, which could result in further reductions to our investment income or in impairments on our investments. In addition, disruptions in the capital markets have resulted in illiquidity in certain market areas. These market disruptions and illiquidity are likely to have an adverse effect on our business, financial condition, results of operations and cash flows. Unfavorable economic conditions caused by COVID-19 can also be expected to increase our funding costs and limit our access to the capital markets. These events have limited our investment originations, which is likely to continue for the immediate future, and have also had a material negative impact on our operating results.

We will continue to carefully monitor the impact of COVID-19 on our business and the business of our portfolio companies. Because the full effects of COVID-19 are not capable of being known at this time, we cannot estimate the impacts of COVID-19 on our future financial condition, results of operations or cash flows, including its effects on us with respect to our compliance with covenants in our financing arrangements with lenders. We do, however, expect that it will continue to have a negative impact on our business and the financial condition of our portfolio companies.

Portfolio Investment Activity for the Three Months Ended September 30, 2020 and 2019 and the Year Ended December 31, 2019

The following table summarizes our investment activity, excluding short term investments and PIK securities, for the three months ended September 30, 2020 and 2019 and the year ended December 31, 2019:


	Three Months Ended September 30,				Year Ended December 31,
Net Investment Activity	2020		2019		2019
Purchases and drawdowns
Senior secured first lien debt	$	32,048	$	93,089	$	527,869
Senior secured second lien debt	—		—		28,049


Unsecured debt	—		—		4,900
Equity	4,082		1,275		74,511
Sales and principal repayments	(77,154)		(142,075)		(740,234)
Net portfolio activity	$	(41,024)	$	(47,711)	$	(104,905)

The following tables summarize the composition of our investment portfolio at amortized cost and fair value as of September 30, 2020, December 31, 2019 and September 30, 2019:


	September 30, 2020
	Investments Cost(1)		Investments Fair Value		Percentage of Investment Portfolio
Senior secured first lien debt	$	1,297,754	$	1,232,505	81.3	%
Senior secured second lien debt	188,202		161,784		10.7	%

Collateralized securities and structured products - equity	15,501		11,219		0.7	%
Unsecured debt	4,912		4,750		0.3	%
Equity	130,058		106,623		7.0	%
Subtotal/total percentage	1,636,427		1,516,881		100.0	%
Short term investments(2)	53,024		53,024
Total investments	$	1,689,451	$	1,569,905
Number of portfolio companies					127
Average annual EBITDA of portfolio companies			$70.9 million
Median annual EBITDA of portfolio companies			$53.2 million
Purchased at a weighted average price of par					97.20	%
Gross annual portfolio yield based upon the purchase price(3)					7.84	%

(1)Represents amortized cost for debt investments and cost for equity investments. Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on our investments.

(2)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.

(3)The gross annual portfolio yield does not represent and may be higher than an actual investment return to shareholders because it excludes our expenses and all sales commissions and dealer manager fees and does not consider the cost of leverage.


	December 31, 2019
	Investments Cost(1)		Investments Fair Value		Percentage of Investment Portfolio
Senior secured first lien debt	$	1,388,942	$	1,351,767	77.9	%
Senior secured second lien debt	264,280		248,253		14.3	%
Collateralized securities and structured products - debt	7,212		7,212		0.4	%
Collateralized securities and structured products - equity	16,476		14,182		0.8	%
Unsecured debt	4,901		4,900		0.3	%
Equity	115,738		109,231		6.3	%
Subtotal/total percentage	1,797,549		1,735,545		100.0	%
Short term investments(2)	29,527		29,527
Total investments	$	1,827,076	$	1,765,072
Number of portfolio companies					136
Average annual EBITDA of portfolio companies			$81.7 million
Median annual EBITDA of portfolio companies			$56.1 million
Purchased at a weighted average price of par					97.68	%
Gross annual portfolio yield based upon the purchase price(3)					9.33	%

(2)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.


	September 30, 2019
	Investments Cost(1)		Investments Fair Value		Percentage of Investment Portfolio
Senior secured first lien debt	$	1,473,789	$	1,417,752	80.9	%
Senior secured second lien debt	289,712		268,656		15.3	%
Collateralized securities and structured products - debt	10,051		9,950		0.6	%
Collateralized securities and structured products - equity	16,503		14,981		0.9	%

Equity	52,363		40,755		2.3	%
Subtotal/total percentage	1,842,418		1,752,094		100.0	%
Short term investments(2)	23,060		23,060
Total investments	$	1,865,478	$	1,775,154
Number of portfolio companies					135
Average annual EBITDA of portfolio companies			$81.6 million
Median annual EBITDA of portfolio companies			$56.0 million
Purchased at a weighted average price of par					96.63	%
Gross annual portfolio yield based upon the purchase price(3)					9.27	%

(2)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.

The following table summarizes the composition of our investment portfolio by the type of interest rate as of September 30, 2020 and December 31, 2019, excluding short term investments of $53,024 and $29,527, respectively:


	September 30, 2020						December 31, 2019
Interest Rate Allocation	Investments Cost		Investments Fair Value		Percentage of Investment Portfolio		Investments Cost		Investments Fair Value		Percentage of Investment Portfolio
Floating interest rate investments	$	1,442,802	$	1,350,836	89.1	%	$	1,648,380	$	1,594,594	91.8	%
Fixed interest rate investments	93,759		91,761		6.0	%	66,460		65,233		3.8	%
Non-income producing investments	65,733		43,922		2.9	%	51,887		45,213		2.6	%
Other income producing investments	34,133		30,362		2.0	%	30,822		30,505		1.8	%
Total investments	$	1,636,427	$	1,516,881	100.0	%	$	1,797,549	$	1,735,545	100.0	%

The following table shows the composition of our investment portfolio by industry classification and the percentage, by fair value, of the total assets in such industries as of September 30, 2020, December 31, 2019 and September 30, 2019:


	September 30, 2020				December 31, 2019				September 30, 2019
Industry Classification	Investments at Fair Value		Percentage of Investment Portfolio		Investments at Fair Value		Percentage of Investment Portfolio		Investments at Fair Value		Percentage of Investment Portfolio
Healthcare & Pharmaceuticals	$	295,679	19.4	%	$	294,947	17.0	%	$	295,681	16.9	%
Services: Business	178,464		11.8	%	191,126		11.0	%	217,200		12.4	%
Chemicals, Plastics & Rubber	126,763		8.4	%	102,906		5.9	%	90,544		5.2	%
Media: Diversified & Production	115,887		7.6	%	206,159		11.9	%	197,487		11.3	%
Media: Advertising, Printing & Publishing	112,613		7.4	%	120,810		7.0	%	129,763		7.4	%
Services: Consumer	84,331		5.6	%	94,058		5.4	%	116,852		6.7	%
Beverage, Food & Tobacco	67,078		4.4	%	68,440		3.9	%	66,109		3.8	%
Telecommunications	60,692		4.0	%	61,577		3.6	%	62,646		3.6	%
High Tech Industries	60,559		4.0	%	60,197		3.5	%	63,732		3.6	%
Capital Equipment	58,190		3.8	%	73,586		4.2	%	76,414		4.4	%
Retail	53,583		3.5	%	53,599		3.1	%	60,649		3.5	%
Diversified Financials	52,420		3.5	%	66,897		3.9	%	24,931		1.4	%
Banking, Finance, Insurance & Real Estate	41,323		2.7	%	62,738		3.6	%	63,562		3.6	%
Construction & Building	38,719		2.6	%	37,096		2.1	%	33,026		1.9	%
Aerospace & Defense	35,457		2.3	%	30,378		1.8	%	25,505		1.4	%
Energy: Oil & Gas	31,173		2.1	%	48,742		2.8	%	49,513		2.8	%
Forest Products & Paper	20,305		1.3	%	24,217		1.4	%	24,605		1.4	%
Consumer Goods: Non-Durable	20,153		1.3	%	33,609		1.9	%	41,832		2.4	%
Hotel, Gaming & Leisure	19,091		1.3	%	25,081		1.4	%	30,972		1.8	%
Transportation: Cargo	19,048		1.3	%	27,291		1.6	%	31,407		1.8	%
Metals & Mining	11,810		0.8	%	10,373		0.6	%	10,832		0.6	%
Automotive	9,873		0.7	%	10,013		0.6	%	8,021		0.4	%
Consumer Goods: Durable	3,670		0.2	%	31,705		1.8	%	30,811		1.7	%


Subtotal/total percentage	1,516,881		100.0	%	1,735,545		100.0	%	1,752,094		100.0	%
Short term investments	53,024				29,527				23,060
Total investments	$	1,569,905			$	1,765,072			$	1,775,154

Our investment portfolio may contain senior secured investments that are in the form of lines of credit, delayed draw term loans, revolving credit facilities, or unfunded commitments, which may require us to provide funding when requested in accordance with the terms of the underlying agreements. As of September 30, 2020, December 31, 2019 and September 30, 2019, our unfunded commitments amounted to $60,521, $83,694 and $64,885, respectively. As of November 12, 2020, our unfunded commitments amounted to $55,806. Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for us. Refer to the section “Commitments and Contingencies and Off-Balance Sheet Arrangements” for further details on our unfunded commitments.

Investment Portfolio Asset Quality

CIM uses an investment rating system to characterize and monitor our expected level of returns on each investment in our portfolio. These ratings are just one of several factors that CIM uses to monitor our portfolio, are not in and of themselves determinative of fair value or revenue recognition and are presented for indicative purposes. CIM rates the credit risk of all investments on a scale of 1 to 5 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio investment relative to our initial cost basis in respect of such portfolio investment (i.e., at the time of acquisition), although it may also take into account under certain circumstances the performance of the portfolio company’s business, the collateral coverage of the investment and other relevant factors.

The following is a description of the conditions associated with each investment rating used in this ratings system:


Investment Rating						Description
1						Indicates the least amount of risk to our initial cost basis. The trends and risk factors for this investment since origination or acquisition are generally favorable, which may include the performance of the portfolio company or a potential exit.
2						Indicates a level of risk to our initial cost basis that is similar to the risk to our initial cost basis at the time of origination or acquisition. This portfolio company is generally performing in accordance with our analysis of its business and the full return of principal and interest or dividend is expected.
3						Indicates that the risk to our ability to recoup the cost of such investment has increased since origination or acquisition, but full return of principal and interest or dividend is expected. A portfolio company with an investment rating of 3 requires closer monitoring.
4						Indicates that the risk to our ability to recoup the cost of such investment has increased significantly since origination or acquisition, including as a result of factors such as declining performance and noncompliance with debt covenants, and we expect some loss of interest, dividend or capital appreciation, but still expect an overall positive internal rate of return on the investment.
5						Indicates that the risk to our ability to recoup the cost of such investment has increased materially since origination or acquisition and the portfolio company likely has materially declining performance. Loss of interest or dividend and some loss of principal investment is expected, which would result in an overall negative internal rate of return on the investment.

For investments rated 3, 4, or 5, CIM enhances its level of scrutiny over the monitoring of such portfolio company.

The following table summarizes the composition of our investment portfolio based on the 1 to 5 investment rating scale at fair value as of September 30, 2020, December 31, 2019 and September 30, 2019, excluding short term investments of $53,024, $29,527 and $23,060, respectively:


	September 30, 2020				December 31, 2019				September 30, 2019
Investment Rating	Investments Fair Value		Percentage of Investment Portfolio		Investments Fair Value		Percentage of Investment Portfolio		Investments Fair Value		Percentage of Investment Portfolio
1	$	85,616	5.6	%	$	154,264	8.9	%	$	79,811	4.6	%
2	1,034,790		68.2	%	1,278,576		73.7	%	1,426,545		81.4	%
3	333,188		22.0	%	282,140		16.3	%	207,893		11.9	%
4	55,456		3.7	%	16,463		0.9	%	22,038		1.2	%
5	7,831		0.5	%	4,102		0.2	%	15,807		0.9	%
	$	1,516,881	100.0	%	$	1,735,545	100.0	%	$	1,752,094	100.0	%

The amount of the investment portfolio in each rating category may vary substantially from period to period resulting primarily from changes in the composition of such portfolio as a result of new investment, repayment and exit activities. In addition, changes in the rating of investments may be made to reflect our expectation of performance and changes in investment values.

Current Investment Portfolio

The following table summarizes the composition of our investment portfolio at fair value as of November 12, 2020:


	Investments Fair Value		Percentage of Investment Portfolio
Senior secured first lien debt	$	1,176,261	81.6	%
Senior secured second lien debt	143,239		9.9	%

Collateralized securities and structured products - equity	11,220		0.8	%
Unsecured Debt	4,750		0.3	%
Equity	105,811		7.4	%
Subtotal/total percentage	1,441,281		100.0	%
Short term investments(2)	143,745
Total investments	$	1,585,026
Number of portfolio companies			120
Average annual EBITDA of portfolio companies	$69.4 million
Median annual EBITDA of portfolio companies	$54.6 million
Purchased at a weighted average price of par			98.08	%
Gross annual portfolio yield based upon the purchase price(2)			7.83	%

(1)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.

(2)The gross annual portfolio yield does not represent and may be higher than an actual investment return to shareholders because it excludes our expenses and all sales commissions and dealer manager fees and does not consider the cost of leverage.

Results of Operations for the Three Months Ended September 30, 2020 and 2019

Our results of operations for the three months ended September 30, 2020 and 2019 were as follows:


	Three Months Ended September 30,
	2020		2019
Investment income	$	38,887	$	49,775
Net operating expenses	17,467		28,113
Net investment income	21,420		21,662
Net realized loss on investments and foreign currency	(42,511)		(316)
Net change in unrealized appreciation (depreciation) on investments	52,178		(23,568)


Net increase (decrease) in net assets from operations	$	31,087	$	(2,222)

Investment Income

For the three months ended September 30, 2020 and 2019, we generated investment income of $38,887 and $49,775, respectively, consisting primarily of interest income on investments in senior secured debt, and collateralized securities and structured products of 118 and 139 portfolio companies held during each respective period. Our average investment portfolio size, excluding our short term investments, decreased $257,069, from $1,785,539 for the three months ended September 30, 2019 to $1,528,471 for the three months ended September 30, 2020. Additionally, the decrease in LIBOR during the three months ended September 30, 2020 from the three month ended September also contributed to the decrease in interest income.

Operating Expenses

The composition of our operating expenses for the three months ended September 30, 2020 and 2019 was as follows:


	Three Months Ended September 30,
	2020		2019
Management fees	$	7,780	$	9,029
Administrative services expense	593		453
Subordinated incentive fee on income	—		4,983
General and administrative	1,524		1,155
Interest expense	7,570		12,493
Total operating expenses	$	17,467	$	28,113

The decrease in subordinated incentive fee on income was primarily the result of lower investment income generated on our investments during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019. The decrease in interest expense was primarily the result of lower LIBOR rates during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019. The decrease in interest expense was also the result of lower average borrowings on our financing arrangements during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019, which also resulted in a decrease in total assets and therefore a decrease in management fees during the three months ended September 30, 2020.

The composition of our general and administrative expenses for the three months ended September 30, 2020 and 2019 was as follows:


	Three Months Ended September 30,
	2020		2019
Valuation expense	$	241	$	168
Printing and marketing expense	241		17
Transfer agent expense	239		325
Accounting and administrative costs	224		191
Professional fees	198		131
Insurance expense	131		108
Dues and subscriptions	124		82
Director fees and expenses	105		119

Other expenses	21		14
Total general and administrative expense	$	1,524	$	1,155

Net Investment Income

Our net investment income totaled $21,420 and $21,662 for the three months ended September 30, 2020 and 2019, respectively. The decrease in net investment income was primarily due to a decrease in investment income, partially offset by a decrease in our subordinated incentive fees and interest expense for the three months ended September 30, 2020 as compared to the three months ended September 30, 2019.

Net Realized Loss on Investments and Foreign Currency

Our net realized loss on investments and foreign currency totaled ($42,511) and ($316) for the three months ended September 30, 2020 and 2019, respectively. This change was driven primarily by realized losses on the restructure of certain investments during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019.

Net Change in Unrealized Appreciation (Depreciation) on Investments

The net change in unrealized appreciation (depreciation) on our investments totaled $52,178 and ($23,568) for the three months ended September 30, 2020 and 2019, respectively. This change was driven primarily by certain previously unrealized losses being realized during the three months ended September 30, 2020 and the continued recovery of loan prices.

Net Increase (Decrease) in Net Assets from Operations

For the three months ended September 30, 2020 and 2019, we recorded a net increase (decrease) in net assets resulting from operations of $31,087 and ($2,222), respectively, as a result of our operating activity for the respective periods.

Results of Operations for the Nine Months Ended September 30, 2020 and 2019

Our results of operations for the nine months ended September 30, 2020 and 2019 were as follows:


	Nine Months Ended September 30,
	2020		2019
Investment income	$	120,443	$	150,465
Net operating expenses	63,446		85,603
Net investment income	56,997		64,862
Net realized loss on investments and foreign currency	(57,693)		(3,650)
Net change in unrealized depreciation on investments	(57,542)		(38,871)


Net (decrease) increase in net assets from operations	$	(58,238)	$	22,341

Investment Income

For the nine months ended September 30, 2020 and 2019, we generated investment income of $120,443 and $150,465, respectively, consisting primarily of interest income on investments in senior secured debt and collateralized securities and structured products of 134 and 164 portfolio companies held during each respective period. Our average investment portfolio size, excluding our short term investments, decreased $176,221, from $1,802,434 for the nine months ended September 30, 2019 to $1,626,213 for the nine months ended September 30, 2020, as the non-income producing equity portion of our portfolio increased from $34,625 as of September 30, 2019 to $115,204 as of September 30, 2020 and the size of our investment portfolio as a whole decreased. Additionally, the decrease in LIBOR during the nine months ended September 30, 2020 from the nine month ended September also contributed to the decrease in interest income.

Operating Expenses

The composition of our operating expenses for the nine months ended September 30, 2020 and 2019 was as follows:


	Nine Months Ended September 30,
	2020		2019
Management fees	$	24,160	$	27,597
Administrative services expense	1,793		1,433
Subordinated incentive fee on income	3,308		14,475
General and administrative	4,709		3,741
Interest expense	29,476		38,357
Total operating expenses	$	63,446	$	85,603

The decrease in subordinated incentive fee on income was primarily the result of lower investment income generated on our investments during the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019. The decrease in interest expense was primarily the result of lower LIBOR rates during the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019. The decrease in interest expense was also the result of lower average borrowings on our financing arrangements during the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019, which also resulted in a decrease in total assets and therefore a decrease in management fees during the nine months ended September 30, 2020.

The composition of our general and administrative expenses for the nine months ended September 30, 2020 and 2019 was as follows:


	Nine Months Ended September 30,
	2020		2019
Professional fees	$	1,108	$	801
Transfer agent expense	894		928
Valuation expense	802		510
Accounting and administrative costs	507		394
Printing and marketing expense	359		73
Insurance expense	354		312
Director fees and expenses	334		359
Dues and subscriptions	273		241
Due diligence fees	—		61
Other expenses	78		62
Total general and administrative expense	$	4,709	$	3,741

Net Investment Income

Our net investment income totaled $56,997 and $64,862 for the nine months ended September 30, 2020 and 2019, respectively. The decrease in net investment income was primarily due to a decrease in investment income during the nine months ended September 30, 2020, which was partially offset by a decrease in subordinated incentive fees and interest expense.

Net Realized Loss on Investments and Foreign Currency

Our net realized loss on investments and foreign currency totaled ($57,693) and ($3,650) for the nine months ended September 30, 2020 and 2019, respectively. This change was driven primarily by realized losses on the restructure of certain investments during the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019.

Net Change in Unrealized Depreciation on Investments

The net change in unrealized depreciation on our investments totaled ($57,542) and ($38,871) for the nine months ended September 30, 2020 and 2019, respectively. This change was driven primarily by unrealized losses on certain underperforming investments during the nine months ended September 30, 2020.

Net (Decrease) Increase in Net Assets from Operations

For the nine months ended September 30, 2020 and 2019, we recorded a net (decrease) increase in net assets resulting from operations of ($58,238) and $22,341, respectively, as a result of our operating activity for the respective periods.

Net Asset Value per Share, Annual Investment Return and Total Return Since Inception

Our net asset value per share was $7.62 and $8.40 on September 30, 2020 and December 31, 2019, respectively. After considering (i) the overall changes in net asset value per share, (ii) paid distributions of approximately $0.2712 per share during the nine months ended September 30, 2020, and (iii) the assumed reinvestment of those distributions in accordance with our distribution reinvestment plan then in effect, the total investment return-net asset value was (6.12)% for the nine month period ended September 30, 2020. Total investment return-net asset value does not represent and may be higher than an actual return to shareholders because it excludes all sales commissions and dealer manager fees. Total investment return-net asset value is a measure of the change in total value for shareholders who held our common stock at the beginning and end of the period, including distributions paid or payable during the period, and is described further in Note 13 to our consolidated financial statements included in this report.

Initial shareholders who subscribed to the offering in December 2012 with an initial investment of $10,000 and an initial purchase price equal to $9.00 per share (public offering price excluding sales load) have seen an annualized return of 5.65% and a cumulative total return of 53.51% through September 30, 2020 (see chart below). Initial shareholders who subscribed to the offering in December 2012 with an initial investment of $10,000 and an initial purchase price equal to $10.00 per share (the initial public offering price including sales load) have seen an annualized return of 4.23% and a cumulative total return of 38.16% through September 30, 2020. Over the same time period, the S&P/LSTA Leveraged Loan Index, a primary measure of senior debt covering the U.S. leveraged loan market, which currently consists of approximately 1,000 credit facilities throughout numerous industries, recorded an annualized return of 3.74% and a cumulative total return of 33.11%. In addition, the BofA Merrill Lynch US High Yield Index, a primary measure of short-term US dollar denominated below investment grade corporate debt publicly issued in the US domestic market, recorded an annualized return of 5.17% and a cumulative total return of 48.07% over the same period.

(1) Cumulative performance: December 17, 2012 to September 30, 2020

The calculations for the Growth of $10,000 Initial Investment are based upon (i) an initial investment of $10,000 in our common stock at the beginning of the period, at a share price of $10.00 per share (including sales load) and $9.00 per share (excluding sales load), (ii) assumes reinvestment of monthly distributions in accordance with our distribution reinvestment plan then in effect, (iii) the sale of the entire investment position at the net asset value per share on the last day of the period, and (iv) the distributions declared and payable to shareholders, if any, on the last day of the period.

Financial Condition, Liquidity and Capital Resources

We generate cash primarily from cash flows from interest, fees and dividends earned from our investments as well as principal repayments and proceeds from sales of our investments. We also employ leverage to seek to enhance our returns as market conditions permit and at the discretion of CIM. On March 23, 2018, an amendment to Section 61(a) of the 1940 Act was signed into law to permit BDCs to reduce the minimum “asset coverage” ratio from 200% to 150% and, as a result, to potentially increase the ratio of a BDC’s debt to equity from a maximum of 1-to-1 to a maximum of 2-to-1, so long as certain approval and disclosure requirements are satisfied. We currently have not determined whether to seek to utilize such additional leverage. We generated cash from the net proceeds from our continuous public offerings. Our initial continuous public offering commenced on July 2, 2012 and ended on December 31, 2015. Our follow-on continuous public offering commenced on January 25, 2016 and ended on January 25, 2019.

The outbreak and spread of COVID-19 have caused severe stress and uncertainty in the U.S. and global economies as well as in the financial and credit markets. Given the uncertainty as to the full severity and duration of the pandemic and its effects on us with respect to our compliance with covenants in our loan facilities with lenders and our borrowers’ ability to timely meet their financial obligations to us, management and our board of directors determined that it was in the best interest of our company and all of our shareholders to take certain steps disclosed below during the three months ended March 31, 2020 that were necessary to improve our cash position and preserve financial flexibility in the short term. This “Financial Condition, Liquidity and Capital Resources” discussion should also be read in conjunction with “Recent Developments - COVID-19” above.

On March 19, 2020, our co-chief executive officers determined to (i) change the timing of declaring distributions to shareholders from quarterly to monthly; and (ii) temporarily suspend the payment of distributions to shareholders commencing with the month ended April 30, 2020, whether in cash or pursuant to our distribution reinvestment plan, as amended and restated. On July 15, 2020, the board of directors determined to recommence the payment of distributions to shareholders in August 2020.Distributions in respect of future months will be reevaluated by management and our board of directors based on circumstances and expectations existing at the time of consideration.

On March 19, 2020, our board of directors, including the independent directors, determined to temporarily suspend our share repurchase program commencing with the second quarter of 2020 and included the third quarter of 2020. On November 13, 2020, the Company recommenced its share repurchase program for the fourth quarter of 2020. Share repurchases for future quarters will be reevaluated by our board of directors based on circumstances and expectations existing at the time of consideration.

As of September 30, 2020 and November 12, 2020, we had $53,024 and $143,745 in short term investments, respectively, invested in a fund that primarily invests in U.S. government securities.

JPM Credit Facility

As of September 30, 2020 and November 12, 2020, our outstanding borrowings under the Second Amended JPM Credit Facility were $625,000 and the aggregate unfunded principal amount in connection with the Second Amended JPM Credit Facility was $75,000. For a detailed discussion of our Second Amended JPM Credit Facility, refer to Note 8 to our consolidated financial statements included in this report.

UBS Facility

As of September 30, 2020 and November 12, 2020, our outstanding borrowings under the Amended UBS Facility were $100,000 and no additional principal amount was available for borrowing under the amended UBS Facility. For a detailed discussion of our Amended UBS Facility, refer to Note 8 to our consolidated financial statements included in this report.

Unfunded Commitments

As of September 30, 2020 and November 12, 2020, our unfunded commitments amounted to $60,521 and $55,806, respectively. For a detailed discussion of our unfunded commitments, refer to Note 11 to our consolidated financial statements included in this report.

Recent Accounting Pronouncements

See Note 2 to our consolidated financial statements included in this report for a discussion of certain recent accounting pronouncements that are applicable to us.

Critical Accounting Policies

Our consolidated financial statements are prepared in conformity with GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Critical accounting policies are those that require the application of management’s most difficult, subjective or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain and that may change in subsequent periods. In preparing the consolidated financial statements, we also utilize available information, including our past history, industry standards and the current economic environment, among other factors, in forming our estimates and judgments, giving due consideration to materiality. Actual results may differ from these estimates. In addition, other companies may utilize different estimates, which may impact the comparability of our results of operations to those of companies in similar businesses.

Valuation of Portfolio Investments

The value of our assets is determined quarterly and at such other times that an event occurs that materially affects the valuation. The valuation is made pursuant to Section 2(a)(41) of the 1940 Act, which requires that we value our assets as follows: (i) the market price for those securities for which a market quotation is readily available, and (ii) for all other securities and assets, at fair value, as determined in good faith by our board of directors. As a BDC, Section 2(a)(41) of the 1940 Act requires the board of directors to determine in good faith the fair value of portfolio securities for which a market price is not readily available, and it does so in conjunction with the application of our valuation procedures by CIM.

There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each asset while employing a valuation process that is consistently followed. Determinations of fair value involve subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations in our consolidated financial statements.

Valuation Methods

With respect to investments for which market quotations are not readily available, we undertake a multi-step valuation process each quarter, as described below:

•our quarterly valuation process begins with each portfolio company or investment being initially valued by certain of CIM’s investment professionals and certain members of its management team, with such valuation taking into account information received from various sources, including independent valuation firms, if applicable;

•preliminary valuation conclusions are then documented and discussed with members of CIM’s management team;

•designated members of CIM’s management team review the preliminary valuation, and, if applicable, deliver such preliminary valuation to an independent valuation firm for its review;

•designated members of CIM’s management team, and, if appropriate, the relevant investment professionals meet with the independent valuation firm to discuss the preliminary valuation;

•designated members of CIM’s management team respond and supplement the preliminary valuation to reflect any comments provided by the independent valuation firm;

•our audit committee meets with members of CIM’s management team and the independent valuation firms to discuss the assistance provided and the results of the independent valuation firms' review; and

•our board of directors discusses the valuation and determines the fair value of each investment in our portfolio in good faith based on various statistical and other factors, including the input and recommendation of CIM, the audit committee and any third-party valuation firm, if applicable.

In addition to the foregoing, certain investments for which a market price is not readily available are evaluated on a quarterly basis by an independent valuation firm and certain other investments are on a rotational basis reviewed by an independent valuation firm. Finally, certain investments are not evaluated by an independent valuation firm unless certain aspects of such investments in the aggregate meet certain criteria.

Given the expected types of investments, excluding short term investments and stock of publicly traded companies that are classified as Level 1, management expects our portfolio holdings to be classified as Level 3. Due to the uncertainty inherent in the valuation process, particularly for Level 3 investments, such fair value estimates may differ significantly from the values that would have been used had an active market for the investments existed. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses that we ultimately realize on these investments to materially differ from the valuations currently assigned. Inputs used in the valuation process are subject to variability in the future and can result in materially different fair values.

For an additional discussion of our investment valuation process, refer to Note 2 to our consolidated financial statements included in this report.

Related Party Transactions

For a discussion of our relationship with related parties including CION Securities, CIM, CIG, and AIA and amounts incurred under agreements with such related parties, refer to Note 4 to our consolidated financial statements included in this report.

Contractual Obligations

On August 26, 2016, 34th Street entered into the JPM Credit Facility with JPM, as amended and restated on September 30, 2016, July 11, 2017, November 28, 2017 May 23, 2018 and May 15, 2020. See Note 8 to our consolidated financial statements for a more detailed description of the JPM Credit Facility.

On May 19, 2017, Murray Hill Funding II entered into the UBS Facility with UBS, as amended on December 1, 2017, May 19, 2020 and November 12, 2020. See Note 8 to our consolidated financial statements for a more detailed description of the UBS Facility.

Commitments and Contingencies and Off-Balance Sheet Arrangements

Commitments and Contingencies

We have entered into certain contracts with other parties that contain a variety of indemnifications. Our maximum exposure under these arrangements is unknown. However, we have not experienced claims or losses pursuant to these contracts and believe the risk of loss related to such indemnifications to be remote.

Our investment portfolio may contain debt investments that are in the form of lines of credit, delayed draw term loans, revolving credit facilities, or other unfunded commitments, which may require us to provide funding when requested in accordance with the terms of the underlying agreements. For further details on such debt investments, refer to Note 11 to our consolidated financial statements included in this report.

Off-Balance Sheet Arrangements

We currently have no off-balance sheet arrangements, except for those discussed in Note 11 to our consolidated financial statements included in this report.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. As of September 30, 2020, 89.1% of our investments paid variable interest rates. A rise in the general level of interest rates can be expected to lead to higher interest rates applicable to our debt investments, especially to the extent that we hold variable rate investments, and to declines in the value of any fixed rate investments we may hold. To the extent that a majority of our investments may be in variable rate investments, an increase in interest rates could make it easier for us to meet or exceed our incentive fee hurdle rate, as defined in our investment advisory agreement, and may result in a substantial increase in our net investment income, and also to the amount of incentive fees payable to CIM with respect to our pre-incentive fee net investment income.

Under the terms of the Second Amended JPM Credit Facility, advances currently bear interest at a floating rate equal to the three-month LIBOR, plus a spread of 3.25% per year. Pursuant to the terms of the amended UBS Facility, we currently pay a financing fee equal to the three-month LIBOR plus a spread of 3.90% per year. In addition, we may seek to further borrow funds in order to make additional investments. Our net investment income will be impacted, in part, by the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we would be subject to risks relating to changes in market interest rates. In periods of rising interest rates when we have debt outstanding, our cost of funds would increase, which could reduce our net investment income, especially to the extent we hold fixed rate investments. We expect that our long-term investments will be financed primarily with equity and long-term debt. Our interest rate risk management techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. Adverse developments resulting from changes in interest rates could have a material adverse effect on our business, financial condition and results of operations.

The following table shows the effect over a twelve month period of changes in interest rates on our net interest income, excluding short term investments, assuming no changes in our investment portfolio, the Second Amended JPM Credit Facility or the Amended UBS Facility in effect as of September 30, 2020:


Basis Point Change in Interest Rates	(Decrease) Increase in Net Interest Income(1)	Percentage Change in Net Interest Income



No change to current base rate (0.31% as of September 30, 2020)	—	—
Up 50 basis points	(2,048)	(2.4)	%
Up 100 basis points	(1,520)	(1.8)	%
Up 200 basis points	4,025	4.7	%
Up 300 basis points	10,023	11.6	%

(1)This table assumes no change in defaults or prepayments by portfolio companies over the next twelve months.

The interest rate sensitivity analysis presented above does not consider the potential impact of the changes in fair value of our fixed rate debt investments and the net asset value of our common stock in the event of sudden changes in interest rates. Approximately 6.0% of our investments paid fixed interest rates as of September 30, 2020. Rising market interest rates will most likely lead to fair value declines for fixed interest rate investments and a decline in the net asset value of our common stock, while declining market interest rates will most likely lead to an increase in the fair value of fixed interest rate investments and an increase in the net asset value of our common stock.

In addition, we may have risk regarding portfolio valuation as discussed in Note 2 to our consolidated financial statements included in this report.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures

In connection with the preparation of this Quarterly Report on Form 10-Q for the three months ended September 30, 2020, we carried out an evaluation, under the supervision and with the participation of our management, including our Co-Chief Executive Officers and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15(b) and Rule 15d-15(b) of the Securities Exchange Act of 1934, as amended. Based on the foregoing evaluation, the Co-Chief Executive Officers and the Chief Financial Officer concluded that our disclosure controls and procedures were effective.

In designing and evaluating our disclosure controls and procedures, we recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Our disclosure controls and procedures have been designed to meet reasonable assurance standards. Disclosure controls and procedures cannot detect or prevent all error and fraud. Some inherent limitations in disclosure controls and procedures include costs of implementation, faulty decision-making, simple error and mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based, in part, upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all anticipated and unanticipated future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with established policies or procedures.

Evaluation of internal control over financial reporting

There have been no changes in our internal control over financial reporting during the three months ended September 30, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us. From time to time, we may be party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies and other third parties. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that any such proceedings will have a material effect upon our financial condition or results of operations.

Item 1A. Risk Factors

There have been no material changes from the risk factors disclosed in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2019 or our Quarterly Report on Form 10-Q for the period ended March 31, 2020.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We did not engage in any unregistered sales of equity securities during the three months ended September 30, 2020.

The table below provides information concerning our repurchases of shares of our common stock during the three months ended September 30, 2020 pursuant to our share repurchase program.

Period

Total Number of Shares Purchased

Average Price Paid per Share

Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs

Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs(1)

July 1 to July 31, 2020

—

August 1 to August 31, 2020

—

September 1 to September 30, 2020

—

Total

—

(1)A description of the maximum number of shares of our common stock that may be repurchased is set forth in a detailed discussion of the terms of our share repurchase program in Note 3 to our unaudited consolidated financial statements contained in this Quarterly Report on Form 10-Q.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits


Exhibit Number						Description of Document
2.1						Purchase and Sale Agreement, dated as of September 30, 2016, by and between Park South Funding, LLC and Credit Suisse Alternative Capital, LLC (Incorporated by reference to Exhibit 2.1 to Registrant’s Current Report on Form 8-K filed with the SEC on October 4, 2016 (File No. 814-00941)).
3.1						Second Articles of Amendment and Restatement of the Articles of Incorporation of CĪON Investment Corporation (Incorporated by reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K filed with the SEC on August 27, 2012 (File No. 814-00941)).
3.2						Bylaws of CĪON Investment Corporation (Incorporated by reference to Exhibit (B) to Pre-Effective Amendment No. 4 to Registrant’s Registration Statement on Form N-2 filed with the SEC on June 29, 2012 (File No. 333-178646)).
4.1						Form of Follow-On Subscription Agreement (Incorporated by reference to Appendix A to Final Prospectus on Form 497 filed with the SEC on September 25, 2018 (File No. 333-203683)).
4.2						Fifth Amended and Restated Distribution Reinvestment Plan of CĪON Investment Corporation (Incorporated by reference to Exhibit 4.1 to Registrant’s Current Report on Form 8-K filed with the SEC on December 8, 2016 (File No. 814-00941)).
4.3						Description of Registrant’s Securities (Incorporated by reference to Exhibit 4.3 to Registrant’s Annual Report on Form 10-K filed with the SEC on March 17, 2020 (File No. 814-00941)).Description of Registrant’s Securities (Incorporated by reference to Exhibit 4.3 to Registrant’s Annual Report on Form 10-K filed with the SEC on March 17, 2020 (File No. 814-00941)).
10.1						Investment Advisory Agreement by and between CĪON Investment Corporation and CION Investment Management, LLC (Incorporated by reference to Exhibit (G)(1) to Pre-Effective Amendment No. 4 to Registrant’s Registration Statement on Form N-2 filed with the SEC on June 29, 2012 (File No. 333-178646)).
10.2						Custody Agreement by and between CĪON Investment Corporation and U.S. Bank National Association (Incorporated by reference to Exhibit (J) to Pre-Effective Amendment No. 4 to Registrant’s Registration Statement on Form N-2 filed with the SEC on June 29, 2012 (File No. 333-178646)).
10.3						Escrow Agreement by and among CĪON Investment Corporation, UMB Bank, N.A., and ICON Securities Corp. (Incorporated by reference to Exhibit (K)(1) to Pre-Effective Amendment No. 4 to Registrant’s Registration Statement on Form N-2 filed with the SEC on June 29, 2012 (File No. 333-178646)).
10.4						Second Amended and Restated Expense Support and Conditional Reimbursement Agreement, dated as of December 20, 2019, by and between CĪON Investment Corporation and CION Investment Management, LLC (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 26, 2019 (File No. 814-00941)).
10.5						Amended and Restated Follow-On Dealer Manager Agreement, dated as of December 28, 2016, by and among CĪON Investment Corporation, CION Investment Management, LLC and CION Securities, LLC (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on January 4, 2017 (File No. 814-00941)).
10.6						Form of Follow-On Selected Dealer Agreement (Incorporated by reference to Exhibit (H)(4) to Registrant’s Registration Statement on Form N-2 filed with the SEC on April 28, 2015 (File No. 333-203683)).
10.7						Sale and Contribution Agreement, dated as of August 26, 2016, by and between 34th Street Funding, LLC and CĪON Investment Corporation (Incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed with the SEC on September 1, 2016 (File No. 814-00941)).
10.8						Master Participation Agreement, dated as of August 26, 2016, by and between 34th Street Funding, LLC and CĪON Investment Corporation (Incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K filed with the SEC on September 1, 2016 (File No. 814-00941)).
10.9						Amended and Restated Loan and Security Agreement, dated as of September 30, 2016, by and among 34th Street Funding, LLC, JPMorgan Chase Bank, National Association, U.S. Bank National Association and CION Investment Management, LLC (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on October 4, 2016 (File No. 814-00941)).
10.10						Amended and Restated Portfolio Management Agreement, dated as of September 30, 2016, by and among 34th Street Funding, LLC, CION Investment Management, LLC and JPMorgan Chase Bank, National Association (Incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K filed with the SEC on October 4, 2016 (File No. 814-00941)).
10.11						Credit and Security Agreement, dated as of March 29, 2017, by and among Flatiron Funding II, LLC, CION Investment Management, LLC, CÎON Investment Corporation, Citibank, N.A. and U.S. Bank National Association (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on April 4, 2017 (File No. 814-00941)).
10.12						Second Amendment, dated as of March 14, 2019, to Credit and Security Agreement, dated as of March 29, 2017, by and among Flatiron Funding II, LLC, CION Investment Management, LLC, CĪON Investment Corporation, the Lenders from time to time party thereto, Citibank, N.A. and U.S. Bank National Association. (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on March 18, 2019 (File No. 814-00941)).


Exhibit Number						Description of Document
10.13						Account Control Agreement, dated as of March 29, 2017, by and among Flatiron Funding II, LLC, CION Investment Management, LLC and U.S. Bank National Association (Incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed with the SEC on April 4, 2017 (File No. 814-00941)).
10.14						Master Participation and Assignment Agreement, dated as of March 29, 2017, by and between 15th Street Loan Funding LLC and Flatiron Funding II, LLC (Incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K filed with the SEC on April 4, 2017 (File No. 814-00941)).
10.15						Master Participation and Assignment Agreement, dated as of March 29, 2017, by and between 15th Street Loan Funding 2 LLC and Flatiron Funding II, LLC (Incorporated by reference to Exhibit 10.4 to Registrant’s Current Report on Form 8-K filed with the SEC on April 4, 2017 (File No. 814-00941)).
10.16						Contribution Agreement, dated as of May 19, 2017, by and among CĪON Investment Corporation, Murray Hill Funding, LLC and Murray Hill Funding II, LLC (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on May 25, 2017 (File No. 814-00941)).
10.17						Amended and Restated Indenture, dated as of December 1, 2017, by and between Murray Hill Funding II, LLC and U.S. Bank National Association (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 7, 2017 (File No. 814-00941)).
10.18						Murray Hill Funding II, LLC Class A Notes Due 2027 (Incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K filed with the SEC on May 25, 2017 (File No. 814-00941)).
10.19						Contribution Agreement, dated as of May 19, 2017, by and among UBS AG, London Branch, Murray Hill Funding II, LLC, U.S. Bank National Association, Murray Hill Funding, LLC and CION Investment Management, LLC (Incorporated by reference to Exhibit 10.4 to Registrant’s Current Report on Form 8-K filed with the SEC on May 25, 2017 (File No. 814-00941)).
10.20						October 2000 Version Global Master Repurchase Agreement, by and between UBS AG and Murray Hill Funding, LLC, together with the related Annex and Master Confirmation thereto, each dated as of May 19, 2017 (Incorporated by reference to Exhibit 10.5 to Registrant’s Current Report on Form 8-K filed with the SEC on May 25, 2017 (File No. 814-00941)).
10.21						Collateral Management Agreement, dated as of May 19, 2017, by and between CION Investment Management, LLC and Murray Hill Funding II, LLC (Incorporated by reference to Exhibit 10.6 to Registrant’s Current Report on Form 8-K filed with the SEC on May 25, 2017 (File No. 814-00941)).
10.22						Collateral Administration Agreement, dated as of May 19, 2017, by and among Murray Hill Funding II, LLC, CION Investment Management, LLC and U.S. Bank National Association (Incorporated by reference to Exhibit 10.7 to Registrant’s Current Report on Form 8-K filed with the SEC on May 25, 2017 (File No. 814-00941)).
10.23						Murray Hill Funding II, LLC Class A Notes Due 2027 (Incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 7, 2017 (File No. 814-00941)).
10.24						First Amended and Restated Master Confirmation, dated as of December 1, 2017, to the October 2000 Version Global Master Repurchase Agreement, dated as of May 19, 2017, by and between UBS AG, London Branch and Murray Hill Funding, LLC (Incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 7, 2017 (File No. 814-00941)).
10.25						Loan and Servicing Agreement, dated as of December 19, 2017, by and among 33rd Street Funding, LLC, CION Investment Management, LLC, Morgan Stanley Asset Funding Inc., Morgan Stanley Bank, N.A. and U.S. Bank National Association (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 22, 2017 (File No. 814-00941)).
10.26						Sale and Contribution Agreement, dated as of December 19, 2017, by and between 33rd Street Funding, LLC and CĪON Investment Corporation (Incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 22, 2017 (File No. 814-00941)).
10.27						Portfolio Management Agreement, dated as of December 19, 2017, by and between 33rd Street Funding, LLC and CION Investment Management, LLC (Incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 22, 2017 (File No. 814-00941)).
10.28						Administration Agreement, dated as of April 1, 2018, by and between CĪON Investment Corporation and CION Investment Management, LLC (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on April 3, 2018 (File No. 814-00941)).


Exhibit Number						Description of Document
10.29						Third Amendment to Amended and Restated Loan Agreement, dated as of May 23, 2018, by and among 34th Street Funding, LLC, JPMorgan Chase Bank, National Association, U.S. Bank National Association and CION Investment Management, LLC (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on May 25, 2018 (File No. 814-00941)).
10.30						Second Amended and Restated Loan and Security Agreement, dated as of May 15, 2020, by and among 34th Street Funding, LLC, JPMorgan Chase Bank, National Association, U.S. Bank National Association and CION Investment Management, LLC (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on May 21, 2020 (File No. 814-00941)).
10.31						Second Amended and Restated Master Confirmation to the Global Master Repurchase Agreement, dated as of May 19, 2020, by and between Murray Hill Funding, LLC and UBS AG (Incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed with the SEC on May 21, 2020 (File No. 814-00941)).
31.1						Rule 13a-14(a)/15d-14(a) Certification of Co-Chief Executive Officer.
31.2						Rule 13a-14(a)/15d-14(a) Certification of Co-Chief Executive Officer.
31.3						Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.
32.1						Certification of Co-Chief Executive Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2						Certification of Co-Chief Executive Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.3						Certification of Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

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

Date: November 16, 2020

CĪON Investment Corporation

(Registrant)


By: /s/ Michael A. Reisner
Michael A. Reisner
Co-Chief Executive Officer
(Principal Executive Officer)


By: /s/ Mark Gatto
Mark Gatto
Co-Chief Executive Officer
(Principal Executive Officer)


By: /s/ Keith S. Franz
Keith S. Franz
Chief Financial Officer
(Principal Financial and Accounting Officer)

CION Investment Corp - FORM 10-Q - November 16, 2020

Attached files

CION Investment Corp Reports