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 SeptemberJune 30, 20172021
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number 000-54755 
 CĪON Investment Corporation 
 (Exact name of registrant as specified in its charter) 
 
Maryland45-3058280
(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 classTrading symbol(s)Name of each exchange on which registered
NoneNot applicableNot 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 submittedelectronicallyand posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [ ] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
 Large accelerated filer [ ]Accelerated filer [ ]
 
Non-accelerated filer [x](Do not check if a smaller reporting company)
Smaller reporting company [ ]
Emerging growth company [ ]



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
[ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  
Yes [ ] No [x]
The number of shares of the registrant’s common stock, $0.001 par value, outstanding as of November 8, 2017August 10, 2021 was 114,398,359.

113,505,009.


CĪON INVESTMENT CORPORATION
FORM 10-Q
TABLE OF CONTENTS
Page
 
Item 1. Financial Statements
1
Consolidated Balance Sheets
1
Consolidated Statements of Operations
2
Consolidated Statements of Changes in Net Assets
3
Consolidated Statements of Cash Flows
4
Consolidated Schedules of Investments
5
Notes to Consolidated Financial Statements
1926
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
4858
Item 3. Quantitative and Qualitative Disclosures About Market Risk
6373
Item 4. Controls and Procedures
6473
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
6575
Item 1A. Risk Factors
6575
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
6575
Item 3. Defaults Upon Senior Securities
6575
Item 4. Mine Safety Disclosures
6575
Item 5. Other Information
6575
Item 6. Exhibits
6676
Signatures
6879




PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
CĪON Investment Corporation
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
June 30,
2021		December 31,
2020
(unaudited)
Assets
Investments, at fair value:
     Non-controlled, non-affiliated investments (amortized cost of $1,607,939 and $1,501,529, respectively)$1,571,606 $1,440,004 
     Non-controlled, affiliated investments (amortized cost of $152,896 and $134,184, respectively)152,432 116,895 
     Controlled investments (amortized cost of $0 and $15,539, respectively)— 12,472 
          Total investments, at fair value (amortized cost of $1,760,835 and $1,651,252, respectively)1,724,038 1,569,371 
Cash1,496 19,914 
Interest receivable on investments20,279 17,484 
Receivable due on investments sold and repaid8,888 6,193 
Dividends receivable on investments187 45 
Prepaid expenses and other assets426 1,788 
   Total assets$1,755,314 $1,614,795 
  September 30,
2017		 
December 31,
2016
  (unaudited)  
Assets
Investments, at fair value (amortized cost of $1,688,414 and $1,096,948, respectively) $1,691,855
 $1,089,478
Derivative asset (cost of $0 and $229, respectively) —
 46
Cash 21,915
 15,046
Restricted cash —
 2,000
Due from counterparty(1) 3,620
 143,335
Interest receivable on investments 8,886
 6,689
Receivable due on investments sold 12,147
 —
Receivable due on total return swap(1) —
 4,187
Prepaid expenses and other assets 1,030
 282
   Total assets $1,739,453
 $1,261,063
Liabilities and Shareholders' Equity
Liabilities    
Payable for investments purchased $55,706
 $15,837
Financing arrangements (net of unamortized debt issuance costs of $5,736 and $3,212, respectively) 625,385
 221,211
Accounts payable and accrued expenses 1,267
 1,476
Interest payable 1,977
 864
Commissions payable for common stock purchased —
 2
Accrued management fees 7,821
 5,781
Accrued administrative services expense 83
 682
Due to CIG - offering costs 27
 45
Unrealized depreciation on total return swap(1) —
 15,402
Total liabilities 692,266
 261,300
     
Commitments and contingencies (Note 4 and Note 11)    
     
Shareholders' Equity    
Common stock, $0.001 par value; 500,000,000 shares authorized;    
114,440,741 and 109,787,557 shares issued and outstanding, respectively 114
 110
Capital in excess of par value 1,064,037
 1,021,280
Undistributed net investment income 4,314
 1,428
Accumulated net realized loss from investments (4,983) —
Accumulated net unrealized appreciation (depreciation) on investments 3,441
 (7,653)
Accumulated net realized loss from total return swap(1) (19,736) —
Accumulated net unrealized depreciation on total return swap(1) —
 (15,402)
Total shareholders' equity 1,047,187
 999,763
Total liabilities and shareholders' equity $1,739,453
 $1,261,063
Net asset value per share of common stock at end of period $9.15
 $9.11
(1) See Note 7 for a discussion of the Company’s total return swap agreement.
Liabilities and Shareholders' Equity
Liabilities
Financing arrangements (net of unamortized debt issuance costs of $8,997 and $5,044, respectively)$796,003 $719,956 
Payable for investments purchased17,938 133 
Accounts payable and accrued expenses2,160 694 
Interest payable4,185 2,500 
Accrued management fees8,243 7,668 
Accrued subordinated incentive fee on income— 4,323 
Accrued administrative services expense905 1,265 
Total liabilities829,434 736,539 
Commitments and contingencies (Note 4 and Note 11)
Shareholders' Equity
Common stock, $0.001 par value; 500,000,000 shares authorized;
113,297,189 and 113,293,723 shares issued and outstanding, respectively113 113 
Capital in excess of par value1,054,881 1,054,911 
Accumulated distributable losses(129,114)(176,768)
Total shareholders' equity925,880 878,256 
Total liabilities and shareholders' equity$1,755,314 $1,614,795 
Net asset value per share of common stock at end of period$8.17 $7.75 
See accompanying notes to consolidated financial statements.

1

CĪON Investment Corporation
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2017
2016 2017 2016
  (unaudited) (unaudited) (unaudited) (unaudited)
Investment income        
Interest income $37,212
 $18,579
 $99,117
 $53,385
Fee and other income 1,166
 154
 2,651
 449
Total investment income 38,378
 18,733
 101,768
 53,834
Operating expenses        
Management fees 7,820
 5,187
 21,724
 14,311
Administrative services expense 433
 425
 1,204
 1,151
General and administrative(1) 1,803
 1,892
 5,220
 4,944
Interest expense 6,920
 534
 15,543
 761
Total operating expenses 16,976
 8,038
 43,691
 21,167
Recoupment of expense support from CIG(2) —
 —
 —
 667
Net operating expenses 16,976
 8,038
 43,691
 21,834
Net investment income 21,402
 10,695
 58,077
 32,000
Realized and unrealized (losses) gains        
Net realized (loss) gain on investments (2,800) 379
 (5,142) 1,078
Net realized gain on foreign currency 12

—
 159
 —
Net change in unrealized appreciation on investments 1,700
 14,948
 11,094
 16,587
Net realized gain (loss) on total return swap(3) 67
 8,188
 (13,789) 23,799
Net change in unrealized appreciation on total return swap(3) —
 9,527
 15,402
 16,826
Total net realized and unrealized (losses) gains (1,021) 33,042
 7,724
 58,290
Net increase in net assets resulting from operations $20,381
 $43,737
 $65,801
 $90,290
Per share information—basic and diluted        
Net increase in net assets per share resulting from operations $0.18
 $0.41
 $0.59
 $0.86
Weighted average shares of common stock outstanding 112,954,234
 106,581,390
 111,504,552
 105,130,208
(1)  See Note 10 for details of the Company's general and administrative expenses.
(2)  See Note 4 for a discussion of expense support from CIG and recoupment of expense support.
(3)  See Note 7 for a discussion of the Company's total return swap agreement.
Three Months Ended
June 30,		Six Months Ended
June 30,		Year Ended
December 31,
20212020202120202020
(unaudited)(unaudited)(unaudited)(unaudited)
Investment income
Non-controlled, non-affiliated investments
     Interest income$30,167 $28,157 $56,269 $67,578 $125,395 
     Paid-in-kind interest income3,853 3,076 9,988 4,952 17,078 
     Fee income880 737 1,813 1,341 4,393 
     Dividend income91 173 173 309 331 
Non-controlled, affiliated investments
     Interest income1,041 1,471 2,442 2,269 7,883 
     Dividend income933 473 1,760 948 3,012 
     Paid-in-kind interest income1,056 429 1,879 1,212 2,082 
     Fee income— — — — 150 
Controlled investments
     Dividend income— 1,292 — 2,947 3,518 
Total investment income38,021 35,808 74,324 81,556 163,842 
Operating expenses
Management fees8,243 7,929 16,026 16,380 31,828 
Administrative services expense697 806 1,381 1,200 2,465 
Subordinated incentive fee on income— — — 3,308 7,631 
General and administrative2,567 1,715 5,256 3,185 6,353 
Interest expense7,828 11,442 15,376 21,906 36,837 
Total operating expenses19,335 21,892 38,039 45,979 85,114 
Net investment income18,686 13,916 36,285 35,577 78,728 
Realized and unrealized gains (losses)
Net realized gains (losses) on:
   Non-controlled, non-affiliated investments445 (10,980)471 (14,963)(69,687)
   Non-controlled, affiliated investments— — (1,080)(211)(211)
   Controlled investments— — (3,067)— — 
   Foreign currency(4)(6)(11)(8)26 
Net realized gains (losses)441 (10,986)(3,687)(15,182)(69,872)
Net change in unrealized appreciation (depreciation) on:
   Non-controlled, non-affiliated investments5,957 13,543 25,195 (97,183)1,110 
   Non-controlled, affiliated investments2,885 (709)16,823 (8,546)(17,945)
   Controlled investments— 823 3,067 (3,991)(3,043)
Net change in unrealized appreciation (depreciation)8,842 13,657 45,085 (109,720)(19,878)
Net realized and unrealized gains (losses)9,283 2,671 41,398 (124,902)(89,750)
Net increase (decrease) in net assets resulting from operations$27,969 $16,587 $77,683 $(89,325)$(11,022)
Per share information—basic and diluted
Net increase (decrease) in net assets per share resulting from operations$0.25 $0.15 $0.68 $(0.79)$(0.10)
Weighted average shares of common stock outstanding113,495,366 113,311,656 113,501,166 113,505,901 113,635,682 
See accompanying notes to consolidated financial statements.

2


CĪON Investment Corporation
Consolidated Statements of Changes in Net Assets
(in thousands, except share and per share amounts)
Three Months Ended
June 30,		Six Months Ended
June 30,		Year Ended
December 31,
20212020202120202020
(unaudited)(unaudited)(unaudited)(unaudited)
Changes in net assets from operations:
Net investment income$18,686 $13,916 $36,285 $35,577 $78,728 
Net realized gain (loss) on investments445 (10,980)(3,676)(15,174)(69,898)
Net realized (loss) gain on foreign currency(4)(6)(11)(8)26 
Net change in unrealized appreciation (depreciation) on investments8,842 13,657 45,085 (109,720)(19,878)
Net increase (decrease) in net assets resulting from operations27,969 16,587 77,683 (89,325)(11,022)
Changes in net assets from shareholders' distributions:
Distributions to shareholders(15,000)— (30,029)(20,793)(63,283)
Net decrease in net assets resulting from shareholders' distributions(15,000)— (30,029)(20,793)(63,283)
Changes in net assets from capital share transactions:
Reinvestment of shareholders' distributions5,132 (1)10,424 8,070 23,298 
Repurchase of common stock(5,163)(14)(10,454)(8,085)(23,300)
Net decrease in net assets resulting from capital share transactions(31)(15)(30)(15)(2)
Total increase (decrease) in net assets12,938 16,572 47,624 (110,133)(74,307)
Net assets at beginning of period912,942 825,858 878,256 952,563 952,563 
Net assets at end of period$925,880 $842,430 $925,880 $842,430 $878,256 
Net asset value per share of common stock at end of period$8.17 $7.43 $8.17 $7.43 $7.75 
Shares of common stock outstanding at end of period113,297,189 113,311,355 113,297,189 113,311,355 113,293,723 
  Nine Months Ended
September 30,
  2017 2016
  (unaudited) (unaudited)
Changes in net assets from operations:    
Net investment income $58,077
 $32,000
Net realized (loss) gain on investments (5,142) 1,078
Net realized gain on foreign currency 159
 —
Net change in unrealized appreciation on investments 11,094
 16,587
Net realized (loss) gain on total return swap(1) (13,789) 23,799
Net change in unrealized appreciation on total return swap(1) 15,402
 16,826
Net increase in net assets resulting from operations 65,801
 90,290
Changes in net assets from shareholders' distributions:(2)    
Net investment income (55,191) (31,744)
Net realized gain on total return swap    
Net interest and other income from TRS portfolio (3,661) (22,386)
Net gain on TRS loan sales(3) (2,286) (2,443)
Net realized gain on investments and foreign currency —
 (1,078)
Net decrease in net assets from shareholders' distributions (61,138) (57,651)
Changes in net assets from capital share transactions:    
Issuance of common stock, net of issuance costs of $1,713 and $1,739, respectively 43,227
 19,278
Reinvestment of shareholders' distributions 29,701
 29,179
Repurchase of common stock (30,167) (12,231)
Net increase in net assets resulting from capital share transactions 42,761
 36,226
     
Total increase in net assets 47,424
 68,865
Net assets at beginning of period 999,763
 904,326
Net assets at end of period $1,047,187
 $973,191
     
Net asset value per share of common stock at end of period $9.15
 $9.02
Shares of common stock outstanding at end of period 114,440,741
 107,920,075
     
Undistributed net investment income at end of period $4,314
 $256
(1)See Note 7 for a discussion of the Company’s total return swap agreement.
(2)This table presents changes in net assets from shareholders' distributions on a GAAP basis. See Note 5 for a discussion of the sources of distributions paid by the Company.
(3)During the nine months ended September 30, 2017 and 2016, the Company realized losses on TRS loans of $19,736 and $1,030, respectively, which are not currently deductible on a tax-basis. 
See accompanying notes to consolidated financial statements.

3


CĪON Investment Corporation
Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended
June 30,		Six Months Ended
June 30,		Year Ended
December 31,
20212020202120202020
(unaudited)(unaudited)(unaudited)(unaudited)
Operating activities:
Net increase (decrease) in net assets resulting from operations$27,969 $16,587 $77,683 $(89,325)$(11,022)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash (used in) provided by operating activities:
Net accretion of discount on investments(2,733)(1,836)(5,905)(7,017)(13,214)
Proceeds from principal repayment of investments91,697 57,924 265,971 240,738 465,547 
Purchase of investments(222,098)(25,872)(405,732)(201,503)(359,633)
Paid-in-kind interest and dividends capitalized(5,303)(4,083)(12,818)(7,353)(21,420)
Decrease (increase) in short term investments, net39,110 24,989 25,114 (2,141)(44,071)
Proceeds from sale of investments5,131 16,844 20,131 44,428 77,630 
Net realized (gain) loss on investments(445)10,980 3,676 15,174 69,898 
Net change in unrealized (appreciation) depreciation on investments(8,842)(13,657)(45,085)109,720 19,878 
Amortization of debt issuance costs682 3,277 1,431 3,964 5,037 
(Increase) decrease in due from counterparty— 5,146 — 3,281 3,281 
(Increase) decrease in interest receivable on investments(2,092)(3,463)(2,814)(4,291)(1,137)
(Increase) decrease in dividends receivable on investments128 (1,104)(142)(1,410)1,061 
(Increase) decrease in receivable due on investments sold and repaid31,027 (1,015)(2,695)16,646 12,359 
(Increase) decrease in prepaid expenses and other assets241 71 1,362 433 (803)
Increase (decrease) in payable for investments purchased(22,279)(19,761)17,805 — (1,435)
Increase (decrease) in accounts payable and accrued expenses1,239 (202)1,466 60 (121)
Increase (decrease) in interest payable1,468 (290)1,685 (684)(663)
Increase (decrease) in accrued management fees460 (522)575 (940)(1,201)
Increase (decrease) in accrued administrative services expense516 412 (360)(484)48 
Increase (decrease) in subordinated incentive fee on income payable— — (4,323)(2,304)(1,289)
Net cash (used in) provided by operating activities(64,124)64,425 (62,975)116,992 198,730 
Financing activities:
Repurchase of common stock(5,163)(14)(10,454)(8,085)(23,300)
Shareholders' distributions paid(9,868)(1)(19,605)(12,723)(39,985)
Repayments under financing arrangements— (505,859)(125,000)(581,159)486,153 
Borrowings under financing arrangements80,000 445,035 205,000 486,153 (602,194)
Debt issuance costs paid(990)(5,625)(5,384)(5,625)(5,625)
Net cash provided by (used in) financing activities63,979 (66,464)44,557 (121,439)(184,951)
Net (decrease) increase in cash(145)(2,039)(18,418)(4,447)13,779 
Cash, beginning of period1,641 3,727 19,914 6,135 6,135 
Cash, end of period$1,496 $1,688 $1,496 $1,688 $19,914 
Supplemental disclosure of cash flow information:
Cash paid for interest$5,676 $8,484 $12,258 $18,645 $32,403 
Supplemental non-cash financing activities:
Reinvestment of shareholders' distributions$5,132 $(1)$10,424 $8,070 $23,298 
Restructuring of portfolio investment$2,286 $38,763 $2,286 $38,763 $91,326 
        Cash interest receivable exchanged for additional securities$— $— $1,304 $— $— 
  Nine Months Ended
September 30,
  2017
2016
  (unaudited) (unaudited)
Operating activities:    
Net increase in net assets resulting from operations $65,801
 $90,290
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in    
  operating activities:    
Net accretion of discount on investments (6,799) (1,442)
Proceeds from principal repayment of investments 403,098
 126,908
Purchase of investments (1,139,000) (450,390)
Paid-in-kind interest (1,704) (596)
Increase in short term investments, net (70,312) (37,879)
Proceeds from sale of investments 218,395
 14,462
Net realized loss (gain) on investments 5,142
 (1,078)
Net unrealized appreciation on investments (11,094) (16,587)
Net unrealized appreciation on total return swap(1) (15,402) (16,826)
Amortization of deferred financing costs 1,272
 258
(Increase) decrease in due from counterparty(1) 139,715
 82,981
(Increase) decrease in interest receivable on investments (2,254) (170)
(Increase) decrease in receivable due on investments sold (12,147) (16)
(Increase) decrease in receivable due on total return swap(1) 4,187
 881
(Increase) decrease in prepaid expenses and other assets (812) (197)
Increase (decrease) in payable for investments purchased 39,869
 (9,800)
Increase (decrease) in accounts payable and accrued expenses (209) 949
Increase (decrease) in interest payable 1,113
 272
Increase (decrease) in accrued management fees 2,040
 756
Increase (decrease) in accrued administrative services expense (599) (192)
Increase (decrease) in accrued recoupment of expense support from CIG(2) —
 (480)
Increase (decrease) in due to CIG - offering costs (18) (16)
Net cash used in operating activities (379,718) (217,912)
Financing activities:    
Gross proceeds from issuance of common stock 44,940
 26,476
Commissions and dealer manager fees paid (1,715) (2,213)
Repurchase of common stock (30,167) (12,231)
Shareholders' distributions paid(3) (31,437) (28,472)
Borrowings under financing arrangements(4) 406,698
 242,423
Repayment of financing arrangements —
 (18,000)
Debt issuance costs paid (3,732) (3,322)
Net cash provided by financing activities 384,587
 204,661
Net increase (decrease) in cash and restricted cash 4,869
 (13,251)
Cash and restricted cash, beginning of period 17,046
 41,741
Cash and restricted cash, end of period $21,915
 $28,490
Supplemental disclosure of cash flow information:    
Cash paid for interest $13,075
 $232
Supplemental non-cash financing activities:    
Reinvestment of shareholders' distributions(3) $29,701
 $29,179
(1)See Note 7 for a discussion of the Company’s total return swap agreement.
(2)See Note 4 for a discussion of expense support from CIG and recoupment of expense support.
(3)See Note 5 for a discussion of the sources of distributions paid by the Company.
(4)See Note 8 for a discussion of the Company’s financing arrangements.
See accompanying notes to consolidated financial statements.

4

CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
SeptemberJune 30, 20172021
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(m) 
Fair
Value(c)
Senior Secured First Lien Debt - 103.1%          
AbelConn, LLC / Atrenne Computing Solutions, LLC / Airco Industries, LLC, L+875, 1.00% LIBOR Floor, 7/17/2019 (j)(n)(p) 3 Month LIBOR Aerospace & Defense $19,291
 $19,031
 $19,243
Academy, Ltd., L+400, 1.00% LIBOR Floor, 7/1/2022 (o) Various Retail 14,611
 11,619
 9,950
Access CIG, LLC, L+500, 1.00% LIBOR Floor, 10/18/2021 (o) 1 Month LIBOR Services: Business 6,746
 6,788
 6,791
Accruent, LLC, L+475, 1.00% LIBOR Floor, 7/28/2023 3 Month LIBOR High Tech Industries 3,887
 3,822
 3,829
Accruent, LLC, 0.75% Unfunded, 7/28/2018 None High Tech Industries 2,866
 —
 (15)
Adams Publishing Group, LLC, L+700, 1.00% LIBOR Floor, 11/3/2020 (n) 3 Month LIBOR Media: Advertising, Printing & Publishing 4,396
 4,344
 4,352
Adams Publishing Group, LLC, 0.50% Unfunded, 6/2/2018 None Media: Advertising, Printing & Publishing 1,136
 —
 (11)
Advanced Integration Technology LP, L+475, 1.00% LIBOR Floor, 4/3/2023 (o) 1 Month LIBOR Aerospace & Defense 3,980
 4,014
 3,970
ALM Media, LLC, L+450, 1.00% LIBOR Floor, 7/31/2020 (o) 3 Month LIBOR Media: Advertising, Printing & Publishing 7,580
 7,278
 6,936
Alvogen Pharma US, Inc., L+500, 1.00% LIBOR Floor, 4/1/2022 (o) 1 Month LIBOR Healthcare & Pharmaceuticals 8,313
 8,275
 8,296
American Clinical Solutions LLC, L+950, 1.00% LIBOR Floor, 6/11/2020 3 Month LIBOR Healthcare & Pharmaceuticals 8,834
 8,733
 8,547
American Dental Partners, Inc., L+475, 1.00% LIBOR Floor, 8/29/2021 (o) 3 Month LIBOR Healthcare & Pharmaceuticals 10,694
 10,241
 10,641
American Energy - Marcellus, LLC, L+425, 1.00% LIBOR Floor, 8/4/2020 (r) 1 Month LIBOR Energy: Oil & Gas 4,033
 2,963
 3,014
American Media, Inc., L+900, 1.00% LIBOR Floor, 8/24/2020 (n) 3 Month LIBOR Media: Advertising, Printing & Publishing 16,148
 15,809
 16,552
American Media, Inc., 9.00% Unfunded, 8/24/2020 (e) None Media: Advertising, Printing & Publishing 154
 —
 4
American Media, Inc., 0.50% Unfunded, 8/24/2020 None Media: Advertising, Printing & Publishing 143
 —
 4
American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021 (n)(o)(p) 1 Month LIBOR Telecommunications 21,617
 19,866
 20,968
AMPORTS, Inc., L+500, 1.00% LIBOR Floor, 5/19/2020 (j)(n)(p) 3 Month LIBOR Automotive 18,943
 18,661
 18,753
AMZ Holding Corp., L+500, 1.00% LIBOR Floor, 6/27/2022 1 Month LIBOR Chemicals, Plastics & Rubber 6,740
 6,644
 6,639
AP Exhaust Acquisition, LLC, L+500, 1.00% LIBOR Floor, 5/10/2024 (o) 3 Month LIBOR Automotive 5,627
 5,431
 5,514
ASG Technologies Group, Inc., L+475, 1.00% LIBOR Floor, 7/31/2024 (o) 1 Month LIBOR High Tech Industries 5,000
 4,975
 5,063
Associated Asphalt Partners, LLC, L+525, 1.00% LIBOR Floor, 4/5/2024 (o) 1 Month LIBOR Construction & Building 1,259
 1,254
 1,241
Avaya Inc., L+750, 1.00% LIBOR Floor, 1/24/2018 1 Month LIBOR Telecommunications 3,509
 3,497
 3,544
Avaya Inc., L+525, 1.00% LIBOR Floor, 5/29/2020 (o) 3 Month LIBOR Telecommunications 14,689
 11,941
 12,480
Azure Midstream Energy, LLC, L+650, 1.00% LIBOR Floor, 11/15/2018 (o) 1 Month LIBOR Energy: Oil & Gas 2,188
 2,117
 1,958
Bakemark Holdings, Inc., L+525, 1.00% LIBOR Floor, 8/14/2023 3 Month LIBOR Beverage, Food & Tobacco 2,314
 2,246
 2,245
Caraustar Industries, Inc., L+550, 1.00% LIBOR Floor, 3/14/2022 (o) 3 Month LIBOR Forest Products & Paper 5,591
 5,655
 5,598
Central Security Group, Inc., L+563, 1.00% LIBOR Floor, 10/6/2021 (o) 1 Month LIBOR Services: Consumer 17,945
 17,978
 18,034
CF Entertainment Inc., L+850, 1.00% LIBOR Floor, 1/27/2023 (n)(p) 6 Month LIBOR Media: Diversified & Production 50,000
 49,070
 49,625
CF Entertainment Inc., L+850, 1.00% LIBOR Floor, 1/27/2023 6 Month LIBOR Media: Diversified & Production 15,000
 14,721
 14,963
CF Entertainment Inc., L+850, 1.00% LIBOR Floor, 1/27/2023 6 Month LIBOR Media: Diversified & Production 7,500
 7,500
 7,463
CF Entertainment Inc., L+850, 1.00% LIBOR Floor, 1/27/2023 6 Month LIBOR Media: Diversified & Production 5,000
 4,813
 4,963
CF Entertainment Inc., 2.00% Unfunded, 1/28/2019 None Media: Diversified & Production 5,000
 —
 (38)
Charming Charlie, LLC, L+800, 1.00% LIBOR Floor, 12/24/2019 (r)(s) 3 Month LIBOR Retail 7,791
 4,388
 3,701
Command Alkon Inc., L+500, 1.00% LIBOR Floor, 9/1/2023 1 Month LIBOR High Tech Industries 7,560
 7,470
 7,408
Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
Senior Secured First Lien Debt - 152.0%
1244311 B.C. LTD., L+500, 1.00% LIBOR Floor, 9/30/2025(s)3 Month LIBORChemicals, Plastics & Rubber$2,410 $2,291 $2,286 
1244311 B.C. LTD., L+500, 1.00% LIBOR Floor, 9/30/2025(s)(v)3 Month LIBORChemicals, Plastics & Rubber832 785 783 
ABB/CON-CISE Optical Group LLC, L+500, 1.00% LIBOR Floor, 6/15/2023(o)6 Month LIBORConsumer Goods: Non-Durable3,505 3,409 3,404 
Adams Publishing Group, LLC, L+700, 1.75% LIBOR Floor, 7/2/2023(n)(o)1 Month LIBORMedia: Advertising, Printing & Publishing10,797 10,745 10,797 
Adapt Laser Acquisition, Inc., L+1200, 1.00% LIBOR Floor, 12/31/2023(n)(v)3 Month LIBORCapital Equipment11,247 11,247 9,237 
Adapt Laser Acquisition, Inc., L+1000, 1.00% LIBOR Floor, 12/31/20233 Month LIBORCapital Equipment2,000 2,000 1,643 
Aegis Toxicology Sciences Corp., L+550, 1.00% LIBOR Floor, 5/9/2025(n)3 Month LIBORHealthcare & Pharmaceuticals8,440 8,334 8,219 
AIS Holdco, LLC, L+500, 0.00% LIBOR Floor, 8/15/2025(n)3 Month LIBORBanking, Finance, Insurance & Real Estate1,995 1,979 1,960 
Alchemy US Holdco 1, LLC, L+550, 10/10/2025(n)1 Month LIBORConstruction & Building11,287 11,184 11,223 
Alert 360 Opco, Inc., L+600, 1.00% LIBOR Floor, 10/16/2025(n)(s)1 Month LIBORServices: Consumer12,178 12,178 12,194 
Allen Media, LLC, L+550, 0.00% LIBOR Floor, 2/10/2027(n)(o)3 Month LIBORMedia: Diversified & Production9,759 9,759 9,759 
Alliance Healthcare Services, Inc., L+450, 1.00% LIBOR Floor, 10/24/2023(v)1 Month LIBORHealthcare & Pharmaceuticals4,114 3,951 4,093 
ALM Media, LLC, L+650, 1.00% LIBOR Floor, 11/25/2024(n)(o)3 Month LIBORMedia: Advertising, Printing & Publishing18,447 18,186 17,709 
AMCP Staffing Intermediate Holdings III, LLC, L+675, 1.50% LIBOR Floor, 9/24/2025(n)3 Month LIBORServices: Business12,143 12,100 11,960 
AMCP Staffing Intermediate Holdings III, LLC, L+675, 1.50% LIBOR Floor, 9/24/20251 Month LIBORServices: Business457 457 450 
AMCP Staffing Intermediate Holdings III, LLC, 0.50% Unfunded, 9/24/2025NoneServices: Business1,142 — (17)
American Clinical Solutions LLC, 7.00%, 12/31/2022(n)(s)NoneHealthcare & Pharmaceuticals3,500 3,445 3,334 
American Clinical Solutions LLC, 7.00%, 12/31/2021(n)(s)NoneHealthcare & Pharmaceuticals250 250 246 
American Consolidated Natural Resources, Inc., L+1300, 1.00% LIBOR Floor, 9/16/2025(n)(v)3 Month LIBORMetals & Mining580 421 584 
American Media, LLC, L+775, 1.50% LIBOR Floor, 12/31/2023(n)3 Month LIBORMedia: Advertising, Printing & Publishing10,452 10,309 10,347 
American Media, LLC, L+775, 1.50% LIBOR Floor, 12/31/2023(n)3 Month LIBORMedia: Advertising, Printing & Publishing1,617 1,596 1,601 
American Media, LLC, 0.50% Unfunded, 12/31/2023(n)NoneMedia: Advertising, Printing & Publishing85 — (1)
American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021(n)3 Month LIBORTelecommunications19,505 18,920 13,678 
Analogic Corp., L+525, 1.00% LIBOR Floor, 6/21/2024(n)(o)1 Month LIBORHealthcare & Pharmaceuticals4,925 4,870 4,802 
Ancile Solutions, Inc., L+1000, 1.00% LIBOR Floor, 6/11/2026(v)3 Month LIBORHigh Tech Industries12,500 12,127 12,125 
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024(n)(v)3 Month LIBORMedia: Diversified & Production15,586 15,135 15,430 
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/20243 Month LIBORMedia: Diversified & Production417 417 415 
Anthem Sports & Entertainment Inc., 0.50% Unfunded, 9/9/2024NoneMedia: Diversified & Production1,750 — (9)
APCO Holdings, LLC, L+550, 0.00% LIBOR Floor, 6/9/2025(n)1 Month LIBORBanking, Finance, Insurance & Real Estate8,305 8,252 8,305 
Appalachian Resource Company, LLC, L+500, 1.00% LIBOR Floor, 9/10/20231 Month LIBORMetals & Mining11,137 9,842 10,357 
Appalachian Resource Company, LLC, 0.00% Unfunded, 9/10/2023(p)NoneMetals & Mining2,500 — — 
Associated Asphalt Partners, LLC, L+525, 1.00% LIBOR Floor, 4/5/2024(n)(o)1 Month LIBORConstruction & Building14,436 14,082 13,624 
Avison Young (USA) Inc., L+500, 0.00% LIBOR Floor, 1/31/2026(h)(n)3 Month LIBORBanking, Finance, Insurance & Real Estate14,737 14,552 14,590 
BK Medical Holding Company, Inc., L+525, 1.00% LIBOR Floor, 6/22/2024(n)(o)1 Month LIBORHealthcare & Pharmaceuticals4,938 4,908 4,814 
Blackboard Inc., L+600, 1.00% LIBOR Floor, 6/30/20243 Month LIBORServices: Consumer4,975 4,975 5,001 
See accompanying notes to consolidated financial statements.
5


CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
SeptemberJune 30, 20172021
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(m) 
Fair
Value(c)
Confie Seguros Holding II Co., L+550, 1.00% LIBOR Floor, 4/16/2022 (o) 1 Month LIBOR Banking, Finance, Insurance & Real Estate 14,942
 14,832
 14,634
Covenant Surgical Partners, Inc., L+475, 0.00% LIBOR Floor, 10/4/2024 (i) 3 Month LIBOR Healthcare & Pharmaceuticals 1,874
 1,869
 1,888
Covenant Surgical Partners, Inc., 0.00% Unfunded, 10/4/2018 (e) None Healthcare & Pharmaceuticals 562
 (1) 4
CSP Technologies North America, LLC, L+525, 1.00% LIBOR Floor, 1/29/2022 (p) 3 Month LIBOR Chemicals, Plastics & Rubber 13,553
 13,307
 13,587
David's Bridal, Inc., L+400, 1.25% LIBOR Floor, 10/11/2019 (o) 3 Month LIBOR Retail 3,477
 2,990
 2,738
DBRS, Inc., L+525, 1.00% LIBOR Floor, 3/4/2022 (h)(o) 3 Month LIBOR Services: Business 5,922
 5,724
 5,878
Deluxe Entertainment Services Group Inc., L+550, 1.00% LIBOR Floor, 2/28/2020 (o) 3 Month LIBOR Media: Diversified & Production 9,865
 9,826
 9,933
DFC Global Facility Borrower II LLC, L+1075, 1.00% LIBOR Floor, 9/27/2022 1 Month LIBOR Services: Consumer 37,200
 36,901
 37,014
DFC Global Facility Borrower II LLC, 0.50% Unfunded, 9/27/2019 (e) None Services: Consumer 22,800
 —
 (114)
Dodge Data & Analytics, LLC / Skyline Data News and Analytics, LLC, L+875, 1.00% LIBOR Floor, 10/31/2019 (n) 3 Month LIBOR Construction & Building 10,012
 9,907
 9,849
DXP Enterprises, Inc., L+550, 1.00% LIBOR Floor, 8/29/2023 (h)(o) 1 Month LIBOR Energy: Oil & Gas 10,000
 9,901
 9,963
EagleTree-Carbide Acquisition Corp., L+475, 1.00% LIBOR Floor, 9/27/2024 (i) 3 Month LIBOR Consumer Goods: Durable 10,000
 9,900
 10,006
Eastman Kodak Company, L+625, 1.00% LIBOR Floor, 9/3/2019 (h)(o) 3 Month LIBOR Consumer Goods: Durable 1,996
 1,991
 1,972
Elemica, Inc., L+800, 1.00% LIBOR Floor, 7/7/2021 (n)(p) 1 Month LIBOR High Tech Industries 17,281
 16,928
 17,065
Elemica, Inc., 0.50% Unfunded, 7/7/2021 (e) None High Tech Industries 2,500
 (47) (31)
Emmis Operating Company, L+700, 1.00% LIBOR Floor, 4/18/2019 (o) 1 Month LIBOR Media: Broadcasting & Subscription 3,627
 3,439
 3,522
Entertainment Studios P&A LLC, 5.00%, 5/18/2037 None Media: Diversified & Production 15,000
 14,704
 21,216
Entertainment Studios P&A LLC, 15.00%, 9/1/2037 None Media: Diversified & Production 7,500
 7,352
 4,613
EnTrans International, LLC, L+750, 1.00% LIBOR Floor, 6/4/2020 3 Month LIBOR Capital Equipment 13,312
 10,366
 11,449
Evergreen Skills Lux S.À.R.L., L+475, 1.00% LIBOR Floor, 4/28/2021 (h)(o) 1 Month LIBOR High Tech Industries 10,236
 9,566
 9,705
Everi Payments Inc., L+450, 1.00% LIBOR Floor, 5/9/2024 (o) 1 Month LIBOR Hotel, Gaming & Leisure 4,183
 4,163
 4,223
F+W Media, Inc., L+1000, 1.50% LIBOR Floor, 5/24/2022 (n)(r)(s) 1 Month LIBOR Media: Diversified & Production 2,661
 2,665
 2,113
F+W Media, Inc., L+650, 1.50% LIBOR Floor, 5/24/2022 1 Month LIBOR Media: Diversified & Production 1,106
 1,106
 1,162
Forbes Media LLC, L+675, 1.00% LIBOR Floor, 9/12/2019 (j)(p) 1 Month LIBOR Media: Advertising, Printing & Publishing 15,000
 14,717
 14,888
Frontline Technologies Group Holding LLC, L+650, 1.00% LIBOR Floor, 9/18/2023 3 Month LIBOR High Tech Industries 2,755
 2,722
 2,722
Frontline Technologies Group Holding LLC, 1.00% Unfunded, 9/18/2019 (e) None High Tech Industries 540
 —
 (6)
FWR Holding Corp., L+600, 1.00% LIBOR Floor, 8/21/2023 1 Month LIBOR Hotel, Gaming & Leisure 1,062
 1,036
 1,035
Global Franchise Group, LLC, L+575, 1.00% LIBOR Floor, 12/18/2019 3 Month LIBOR Beverage, Food & Tobacco 2,166
 2,145
 2,145
GTCR-Ultra Acquisition, Inc., L+600, 1.00% LIBOR Floor, 8/1/2024 (e) 1 Month LIBOR Healthcare & Pharmaceuticals 5,432
 5,300
 5,323
Harland Clarke Holdings Corp., L+550, 1.00% LIBOR Floor, 2/9/2022 (o) 3 Month LIBOR Services: Business 14,724
 14,835
 14,830
Healogics, Inc., L+425, 1.00% LIBOR Floor, 7/1/2021 (o) 3 Month LIBOR Healthcare & Pharmaceuticals 4,862
 4,583
 4,011
Heartland Dental, LLC, L+475, 1.00% LIBOR Floor, 7/31/2023 (o) 3 Month LIBOR Healthcare & Pharmaceuticals 4,000
 3,981
 4,030
Help/Systems Holdings, Inc., L+450, 1.00% LIBOR Floor, 10/8/2021 (o) 3 Month LIBOR Services: Business 11,939
 11,926
 12,018
Infinity Sales Group, LLC, L+1050, 1.00% LIBOR Floor, 11/21/2018 (n) 1 Month LIBOR Services: Business 7,806
 7,402
 7,201
Infogroup Inc., L+500, 1.00% LIBOR Floor, 4/3/2023 (o) 3 Month LIBOR Media: Advertising, Printing & Publishing 9,453
 9,487
 9,216
International Seaways, Inc., L+550, 1.00% LIBOR Floor, 6/22/2022 (h)(o) 1 Month LIBOR Transportation: Cargo 10,000
 9,807
 9,844
Intertain Group Ltd., L+650, 1.00% LIBOR Floor, 4/8/2022 (h)(n) 3 Month LIBOR Hotel, Gaming & Leisure 1,610
 1,586
 1,630
Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
Cadence Aerospace, LLC, L+850, 1.00% LIBOR Floor, 11/14/2023(n)(o)(v)3 Month LIBORAerospace & Defense38,752 38,348 37,444 
Cardenas Markets LLC, L+625, 1.00% LIBOR Floor, 6/3/20276 Month LIBORRetail11,000 10,891 11,041 
CB URS Holdings Corp., L+575, 1.00% LIBOR Floor, 9/1/2024(n)6 Month LIBORTransportation: Cargo15,618 15,566 14,036 
Celerity Acquisition Holdings, LLC, L+850, 1.00% LIBOR Floor, 5/28/20263 Month LIBORServices: Business15,000 15,000 15,000 
Charming Charlie LLC, 20.00%, 4/24/2023(r)(s)NoneRetail777 657 350 
CHC Solutions Inc., 12.00%, 7/20/2023(o)(v)NoneHealthcare & Pharmaceuticals7,806 7,806 7,738 
CircusTrix Holdings, LLC, L+800, 1.00% LIBOR Floor, 1/16/2024(n)(o)(v)1 Month LIBORHotel, Gaming & Leisure26,536 26,330 24,048 
CircusTrix Holdings, LLC, L+800, 1.00% LIBOR Floor, 1/16/2024(n)(v)1 Month LIBORHotel, Gaming & Leisure2,701 2,701 2,448 
CircusTrix Holdings, LLC, L+800, 1.00% LIBOR Floor, 7/16/2023(n)(v)1 Month LIBORHotel, Gaming & Leisure1,757 1,607 2,047 
CircusTrix Holdings, LLC, 1.00% Unfunded, 12/31/2021NoneHotel, Gaming & Leisure180 — 30 
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023(r)3 Month LIBORBeverage, Food & Tobacco1,020 1,000 170 
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023(n)(r)3 Month LIBORBeverage, Food & Tobacco414 414 69 
Country Fresh Holdings, LLC, 12.00%, 6/1/2022(v)NoneBeverage, Food & Tobacco31 30 31 
Coyote Buyer, LLC, L+600, 1.00% LIBOR Floor, 2/6/2026(n)(o)3 Month LIBORChemicals, Plastics & Rubber34,563 34,313 34,563 
Coyote Buyer, LLC, L+800, 1.00% LIBOR Floor, 8/6/2026(o)3 Month LIBORChemicals, Plastics & Rubber6,219 6,108 6,219 
Coyote Buyer, LLC, 0.50% Unfunded, 2/6/2025NoneChemicals, Plastics & Rubber2,500 — — 
David's Bridal, LLC, L+1000, 1.00% LIBOR Floor, 6/23/2023(v)3 Month LIBORRetail5,477 4,700 5,477 
David's Bridal, LLC, L+1000, 1.00% LIBOR Floor, 5/23/2024(v)3 Month LIBORRetail5,000 5,000 5,000 
David's Bridal, LLC, L+600, 1.00% LIBOR Floor, 6/30/2023(v)3 Month LIBORRetail767 682 767 
Deluxe Entertainment Services, Inc., L+650, 1.00% LIBOR Floor, 3/25/2024(n)(s)(v)3 Month LIBORMedia: Diversified & Production3,354 3,453 3,354 
DMT Solutions Global Corp., L+700, 0.00% LIBOR Floor, 7/2/2024(n)(w)Services: Business16,990 16,712 16,905 
Eagle Family Foods Group LLC, L+650, 1.00% LIBOR Floor, 6/14/20243 Month LIBORBeverage, Food & Tobacco14,025 13,853 14,025 
East Valley Tourist Development Authority, L+800, 1.00% LIBOR Floor, 3/7/2022(i)6 Month LIBORHotel, Gaming & Leisure5,000 4,950 4,950 
Entertainment Studios P&A LLC, 6.30%, 5/18/2037(k)(n)NoneMedia: Diversified & Production11,971 11,872 10,085 
Entertainment Studios P&A LLC, 5.00%, 5/18/2037(k)NoneMedia: Diversified & Production— — 2,339 
EnTrans International, LLC, L+600, 0.00% LIBOR Floor, 11/1/2024(n)1 Month LIBORCapital Equipment25,500 25,346 24,161 
Extreme Reach, Inc., L+750, 1.50% LIBOR Floor, 3/29/2024(n)(o)1 Month LIBORMedia: Diversified & Production19,588 19,452 19,490 
Extreme Reach, Inc., 0.50% Unfunded, 3/29/2024(n)(o)NoneMedia: Diversified & Production1,744 — (9)
F+W Media, Inc., L+1000, 1.50% LIBOR Floor, 5/24/2022(r)(s)1 Month LIBORMedia: Diversified & Production1,139 — — 
Foundation Consumer Healthcare, LLC, L+575, 1.00% LIBOR Floor, 11/2/2023(n)(o)3 Month LIBORHealthcare & Pharmaceuticals33,395 33,092 33,646 
Foundation Consumer Healthcare, LLC, 0.50% Unfunded, 11/2/2023NoneHealthcare & Pharmaceuticals2,094 — 16 
Genesis Healthcare, Inc., 0.50% Unfunded, 3/6/2023(h)NoneHealthcare & Pharmaceuticals35,000 — — 
Geo Parent Corp., L+525, 0.00% LIBOR Floor, 12/19/2025(n)1 Month LIBORServices: Business14,663 14,560 14,663 
Geon Performance Solutions, LLC, L+625, 1.63% LIBOR Floor, 10/25/2024(n)(o)1 Month LIBORChemicals, Plastics & Rubber20,616 20,361 20,616 
Geon Performance Solutions, LLC, 0.50% Unfunded, 10/25/2024NoneChemicals, Plastics & Rubber2,586 — — 
Harland Clarke Holdings Corp., L+475, 1.00% LIBOR Floor, 11/3/2023(n)3 Month LIBORServices: Business11,915 11,893 10,754 
See accompanying notes to consolidated financial statements.
6


CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
SeptemberJune 30, 20172021
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(m) 
Fair
Value(c)
iPipeline, Inc., L+625, 1.00% LIBOR Floor, 8/4/2022 1 Month LIBOR High Tech Industries 8,874
 8,684
 8,697
Ipsen, Inc., L+700, 1.00% LIBOR Floor, 9/30/2019 (j)(p) 1 Month LIBOR Capital Equipment 8,095
 8,021
 8,075
Ipsen International GmbH, L+800, 1.00% LIBOR Floor, 9/30/2019 (h)(j) 1 Month LIBOR Capital Equipment 1,295
 1,299
 1,295
Island Medical Management Holdings, LLC, L+550, 1.00% LIBOR Floor, 9/1/2022 (p) 3 Month LIBOR Healthcare & Pharmaceuticals 13,743
 13,569
 13,568
Island Medical Management Holdings, LLC, 1.00% Unfunded, 9/1/2022 (e) None Healthcare & Pharmaceuticals 1,188
 —
 (15)
ITC Service Group Acquisition LLC, L+950, 0.50% LIBOR Floor, 5/26/2021 (j)(p) 1 Month LIBOR High Tech Industries 11,250
 11,065
 11,109
Kingpin Intermediate Holdings LLC, L+425, 1.00% LIBOR Floor, 6/29/2024 (o) 3 Month LIBOR Hotel, Gaming & Leisure 9,975
 9,925
 10,044
KLO Intermediate Holdings, LLC, L+775, 1.25% LIBOR Floor, 4/7/2022 (p) 1 Month LIBOR Chemicals, Plastics & Rubber 4,412
 4,361
 4,357
KLO Intermediate Holdings, LLC, L+775, 1.25% LIBOR Floor, 4/7/2022 (p) 1 Month LIBOR Chemicals, Plastics & Rubber 7,621
 7,532
 7,526
KNB Holdings Corp., L+550, 1.00% LIBOR Floor, 4/26/2024 (o) 3 Month LIBOR Consumer Goods: Durable 16,000
 15,691
 15,920
Labvantage Solutions Inc., L+800, 1.00% LIBOR Floor, 12/29/2020 (p) 1 Month LIBOR High Tech Industries 4,688
 4,651
 4,734
Labvantage Solutions Ltd., E+800, 1.00% EURIBOR Floor, 12/29/2020 (h) 1 Month EURIBOR High Tech Industries €4,294
 4,790
 5,124
Lift Brands, Inc., L+800, 1.00% LIBOR Floor, 12/23/2019 (n) 3 Month LIBOR Services: Consumer 9,226
 9,143
 9,203
Logix Communications, LP, L+575, 1.00% LIBOR Floor, 8/9/2024 (i)(o) (u) Telecommunications 5,250
 5,198
 5,198
Lonestar Prospects, Ltd., 0.00% Unfunded, 12/31/2017 (e) None Energy: Oil & Gas 18,985
 (363) (380)
LTCG Holdings Corp., L+500, 1.00% LIBOR Floor, 6/6/2020 (o) 1 Month LIBOR Services: Business 5,911
 5,582
 5,793
MB2 Dental Solutions, LLC, L+475, 1.00% LIBOR Floor, 9/29/2023 3 Month LIBOR Healthcare & Pharmaceuticals 2,191
 2,163
 2,163
Ministry Brands, LLC, L+500, 1.00% LIBOR Floor, 12/2/2022 (n) 1 Month LIBOR Services: Business 4,960
 4,777
 4,960
Ministry Brands, LLC, L+500, 1.00% LIBOR Floor, 12/2/2022 1 Month LIBOR Services: Business 1,097
 1,097
 1,097
Ministry Brands, LLC, L+100, 1.00% LIBOR Floor, Unfunded, 2/22/2019 (e) 1 Month LIBOR Services: Business 2,795
 —
 —
Moss Holding Company, L+675, 1.00% LIBOR Floor, 4/17/2023 (n)(p) 3 Month LIBOR Services: Business 18,924
 18,607
 18,640
Moss Holding Company, 0.75% Unfunded, 5/7/2018 (e) None Services: Business 1,046
 —
 (16)
Moss Holding Company, 0.50% Unfunded, 4/17/2023 (e) None Services: Business 2,232
 —
 (33)
MSHC, Inc., L+425, 1.00% LIBOR Floor, 7/31/2023 3 Month LIBOR Services: Business 2,853
 2,839
 2,839
Murray Energy Corp., L+725, 1.00% LIBOR Floor, 4/16/2020 (o) 3 Month LIBOR Metals & Mining 3,639
 3,548
 3,341
Nathan's Famous Inc., 10.00%, 3/15/2020 (h)(n) None Beverage, Food & Tobacco 6,000
 6,000
 6,311
Navex Global, Inc., L+425, 1.00% LIBOR Floor, 11/19/2021 (o) 1 Month LIBOR High Tech Industries 17,957
 18,010
 17,979
Nextech Systems, LLC, L+725, 1.00% LIBOR Floor, 6/22/2021 (j)(n) 1 Month LIBOR High Tech Industries 15,242
 14,747
 14,938
Opal Acquisition, Inc., L+400, 1.00% LIBOR Floor, 11/27/2020 (o) 3 Month LIBOR Healthcare & Pharmaceuticals 10,235
 9,680
 9,682
Orbcomm Inc., 8.00%, 4/1/2024 (n) None Telecommunications 9,237
 9,237
 9,912
P.F. Chang's China Bistro, Inc., L+500, 1.00% LIBOR Floor, 9/1/2022 (i)(o) 1 Month LIBOR Beverage, Food & Tobacco 10,000
 9,700
 9,600
Paris Presents Inc., L+500, 1.00% LIBOR Floor, 12/31/2020 (p) 1 Month LIBOR Consumer Goods: Durable 8,954
 8,874
 8,954
PDI TA Holdings, Inc., L+475, 1.00% LIBOR Floor, 8/25/2023 (n) 3 Month LIBOR High Tech Industries 5,667
 5,554
 5,552
PDI TA Holdings, Inc., 0.50% Unfunded, 8/24/2018 (e) None High Tech Industries 1,283
 —
 (20)
Petroflow Energy Corp., L+800, 1.00% LIBOR Floor, 6/29/2019 (n)(r)(s) 1 Month LIBOR Energy: Oil & Gas 4,028
 3,863
 3,705
Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
HDT Holdco, Inc., L+575, 0.75% LIBOR Floor, 7/8/2027(i)3 Month LIBORAerospace & Defense5,000 4,850 4,887 
Heritage Power, LLC, L+600, 1.00% LIBOR Floor, 7/30/20266 Month LIBOREnergy: Oil & Gas4,975 4,795 4,442 
Hilliard, Martinez & Gonzales, LLP, L+1800, 2.00% LIBOR Floor, 12/17/2022(n)(v)1 Month LIBORServices: Consumer22,982 22,858 22,659 
Homer City Generation, L.P., 15.00%, 4/5/2023(n)(v)NoneEnergy: Oil & Gas9,445 9,818 7,485 
Hoover Group, Inc., L+850, 1.25% LIBOR Floor, 10/1/2024(o)3 Month LIBORServices: Business5,182 5,165 5,169 
HUMC Holdco, LLC, 9.00%, 9/9/2021(n)NoneHealthcare & Pharmaceuticals9,667 9,667 9,630 
Hummel Station LLC, L+600, 1.00% LIBOR Floor, 10/27/2022(n)(o)1 Month LIBOREnergy: Oil & Gas14,083 10,381 10,102 
Hummel Station LLC, L+600, 1.00% LIBOR Floor, 10/27/2022(n)1 Month LIBOREnergy: Oil & Gas872 4,270 4,213 
Hyperion Materials & Technologies, Inc., L+550, 1.00% LIBOR Floor, 8/28/2026(n)3 Month LIBORChemicals, Plastics & Rubber9,850 9,696 9,856 
Independent Pet Partners Intermediate Holdings, LLC, 6.00%, 11/20/2023(n)(v)NoneRetail9,986 9,911 8,538 
Independent Pet Partners Intermediate Holdings, LLC, Prime+500, 12/22/2022(n)(v)PrimeRetail2,043 2,043 2,043 
Independent Pet Partners Intermediate Holdings, LLC, L+600, 0.00% LIBOR Floor, 12/22/2022(n)(v)3 Month LIBORRetail260 260 260 
InfoGroup Inc., L+500, 1.00% LIBOR Floor, 4/3/2023(n)(o)3 Month LIBORMedia: Advertising, Printing & Publishing15,513 15,507 14,776 
Instant Web, LLC, L+650, 1.00% LIBOR Floor, 12/15/2022(n)(o)1 Month LIBORMedia: Advertising, Printing & Publishing36,908 36,876 34,740 
Instant Web, LLC, 0.50% Unfunded, 12/15/2022(n)NoneMedia: Advertising, Printing & Publishing2,704 — — 
Invincible Boat Company, L+650, 1.50% LIBOR Floor, 8/28/20253 Month LIBORConsumer Goods: Durable14,906 14,760 14,757 
Invincible Boat Company, 0.50% Unfunded, 8/28/2025NoneConsumer Goods: Durable798 — (8)
INW Manufacturing, LLC, L+575, 0.75% LIBOR Floor, 3/25/2027(o)3 Month LIBORServices: Business15,358 14,905 15,051 
INW Manufacturing, LLC, L+575, 0.75% LIBOR Floor, 3/25/20273 Month LIBORServices: Business4,545 4,411 4,455 
Isagenix International, LLC, L+575, 1.00% LIBOR Floor, 6/14/2025(n)3 Month LIBORBeverage, Food & Tobacco17,332 15,609 15,621 
Island Medical Management Holdings, LLC, L+650, 1.00% LIBOR Floor, 9/1/2022(n)(o)3 Month LIBORHealthcare & Pharmaceuticals11,118 11,079 10,896 
Jenny C Acquisition, Inc., L+1050, 1.75% LIBOR Floor, 10/1/2024(n)(v)3 Month LIBORServices: Consumer11,373 11,309 10,645 
JP Intermediate B, LLC, L+550, 1.00% LIBOR Floor, 11/20/2025(n)3 Month LIBORBeverage, Food & Tobacco14,814 14,593 14,394 
K&N Parent, Inc., L+475, 1.00% LIBOR Floor, 10/20/20233 Month LIBORConsumer Goods: Durable4,987 4,805 4,837 
KITV, Inc., L+750, 1.00% LIBOR Floor, 3/4/2026(n)3 Month LIBORMedia: Diversified & Production20,500 20,500 21,013 
KNB Holdings Corp., L+550, 1.00% LIBOR Floor, 4/26/2024(n)6 Month LIBORConsumer Goods: Durable7,964 7,870 7,234 
Labvantage Solutions Ltd., E+750, 1.00% EURIBOR Floor, 9/30/2021(h)1 Month EURIBORHigh Tech Industries€1,921 2,159 2,278 
Labvantage Solutions Inc., L+750, 1.00% LIBOR Floor, 9/30/2021(n)(o)1 Month LIBORHigh Tech Industries1,055 1,055 1,055 
LAV Gear Holdings, Inc., L+750, 1.00% LIBOR Floor, 10/31/2024(n)(o)(v)3 Month LIBORServices: Business26,004 25,659 24,736 
LAV Gear Holdings, Inc., L+750, 1.00% LIBOR Floor, 10/31/2024(n)(o)(v)3 Month LIBORServices: Business4,485 4,444 4,267 
LGC US Finco, LLC, L+650, 1.00% LIBOR Floor, 12/20/2025(n)1 Month LIBORCapital Equipment9,700 9,458 9,421 
LH Intermediate Corp., L+750, 1.00% LIBOR Floor, 6/2/20263 Month LIBORConsumer Goods: Durable14,813 14,578 14,627 
Lift Brands, Inc., L+750, 1.00% LIBOR Floor, 6/29/2025(n)(o)(s)1 Month LIBORServices: Consumer23,642 23,641 23,642 
Lift Brands, Inc., 9.50%, 6/29/2025(n)(o)(s)(v)NoneServices: Consumer5,094 4,998 4,954 
Lift Brands, Inc., 6/29/2025(n)(o)(q)(s)NoneServices: Consumer5,296 4,749 4,700 
Longview Power, LLC, L+1000, 1.50% LIBOR Floor, 7/30/2025(s)3 Month LIBOREnergy: Oil & Gas4,211 2,577 4,421 
See accompanying notes to consolidated financial statements.
7


CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
SeptemberJune 30, 20172021
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(m) 
Fair
Value(c)
Photonis Technologies SAS, L+750, 1.00% LIBOR Floor, 9/18/2019 (h)(o) 3 Month LIBOR Aerospace & Defense 6,397
 5,552
 5,598
Plano Molding Company, LLC, L+750, 1.00% LIBOR Floor, 5/12/2021 (n) 1 Month LIBOR Consumer Goods: Non-Durable 8,774
 8,687
 8,160
Practice Insight, LLC, L+500, 1.00% LIBOR Floor, 8/23/2022 (n) 1 Month LIBOR High Tech Industries 6,567
 6,405
 6,402
Project Leopard Holdings, Inc., L+550, 1.00% LIBOR Floor, 7/7/2023 (o) 3 Month LIBOR High Tech Industries 4,000
 3,991
 4,050
PSC Industrial Holdings Corp., L+475, 1.00% LIBOR Floor, 12/5/2020 (o) 3 Month LIBOR Services: Business 4,863
 4,649
 4,863
Radio One, Inc., L+400, 1.00% LIBOR Floor, 4/18/2023 (o) 3 Month LIBOR Media: Broadcasting & Subscription 2,973
 2,945
 2,928
Rimini Street, Inc., 15.00%, 6/24/2020 (s) None High Tech Industries 13,773
 13,539
 16,073
Robertshaw US Holding Corp., L+450, 0.00% LIBOR Floor, 8/10/2024 (o) 1 Month LIBOR Chemicals, Plastics & Rubber 3,155
 3,131
 3,186
Russell Investments US Institutional Holdco, Inc., L+425, 1.00% LIBOR Floor, 6/1/2023 (o) 1 Month LIBOR Banking, Finance, Insurance & Real Estate 3,970
 4,022
 4,032
Sequoia Healthcare Management, LLC, 16.00%, 7/17/2019 (n)(s) None Healthcare & Pharmaceuticals 5,935
 5,885
 5,935
SFE Intermediate Holdco LLC, L+500, 1.00% LIBOR Floor, 7/31/2023 (n) 3 Month LIBOR Beverage, Food & Tobacco 4,782
 4,687
 4,686
SG Acquisition, Inc., L+500, 1.00% LIBOR Floor, 3/29/2024 (o) 3 Month LIBOR Banking, Finance, Insurance & Real Estate 4,159
 4,121
 4,133
Shift PPC LLC, L+600, 1.00% LIBOR Floor, 12/22/2021 (p) 3 Month LIBOR High Tech Industries 4,878
 4,775
 4,878
SI Organization, Inc., L+475, 1.00% LIBOR Floor, 11/23/2019 (o) 3 Month LIBOR Services: Business 7,693
 7,785
 7,810
Southcross Holdings Borrower LP, 9.00%, 4/13/2023 (s) None Energy: Oil & Gas 179
 158
 156
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 1/21/2020 (n) 3 Month LIBOR Healthcare & Pharmaceuticals 12,758
 12,692
 12,662
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 7/21/2020 (s) 3 Month LIBOR Healthcare & Pharmaceuticals 252
 250
 249
Sprint Industrial Holdings, LLC, L+575, 1.25% LIBOR Floor, 5/14/2019 (n) 3 Month LIBOR Energy: Oil & Gas 8,045
 7,656
 7,361
STG-Fairway Acquisitions, Inc., L+525, 1.00% LIBOR Floor, 6/30/2022 (o) 3 Month LIBOR Services: Business 3,929
 3,821
 3,826
Studio Movie Grill Holdings, LLC, L+725, 1.00% LIBOR Floor, 9/30/2020 (e)(n) 3 Month LIBOR Hotel, Gaming & Leisure 16,925
 16,811
 16,925
Survey Sampling International, LLC, L+500, 1.00% LIBOR Floor, 12/16/2020 (o) 3 Month LIBOR Services: Business 7,820
 7,854
 7,703
Teladoc, Inc., L+725, 1.00% LIBOR Floor, 7/14/2022 (h) 1 Month LIBOR High Tech Industries 15,000
 14,855
 15,300
Teladoc, Inc., 0.50% Unfunded, 7/14/2020 (e)(h) None High Tech Industries 1,250
 (47) 25
Telestream Holdings Corp., L+677, 1.00% LIBOR Floor, 1/15/2020 (j)(n) 3 Month LIBOR High Tech Industries 8,662
 8,472
 8,402
Tenere Inc., L+1000, 1.00% LIBOR Floor, 12/23/2021 (n)(p) 3 Month LIBOR Capital Equipment 31,840
 31,671
 31,044
Tensar Corp., L+475, 1.00% LIBOR Floor, 7/9/2021 (o) 3 Month LIBOR Chemicals, Plastics & Rubber 13,236
 12,429
 12,475
Therapure Biopharma Inc., L+875, 0.50% LIBOR Floor, 12/1/2021 (h) 1 Month LIBOR Healthcare & Pharmaceuticals 15,000
 14,935
 15,713
U.S. Renal Care, Inc., L+425, 1.00% LIBOR Floor, 12/30/2022 (o) 3 Month LIBOR Healthcare & Pharmaceuticals 7,967
 7,780
 7,740
Vero Parent, Inc., L+500, 1.00% LIBOR Floor, 8/16/2024 (o) 3 Month LIBOR High Tech Industries 15,000
 14,851
 14,906
Vince, LLC, L+700, 1.00% LIBOR Floor, 11/27/2019 (h)(o) 3 Month LIBOR Retail 901
 864
 789
Visual Edge Technology, Inc., L+575, 1.00% LIBOR Floor, 8/31/2022 3 Month LIBOR Services: Business 12,469
 12,222
 12,220
Visual Edge Technology, Inc., L+575, 1.00% LIBOR Floor, 8/31/2022 3 Month LIBOR Services: Business 1,918
 1,871
 1,899
Visual Edge Technology, Inc., 0.75% Unfunded, 2/28/2019 (e) None Services: Business 2,878
 —
 (29)
WD Wolverine Holdings, LLC, L+550, 1.00% LIBOR Floor, 8/16/2022 (o) 3 Month LIBOR Healthcare & Pharmaceuticals 14,319
 14,016
 13,961
Western Dental Services, Inc., L+525, 1.00% LIBOR Floor, 6/30/2023 (o) 1 Month LIBOR Healthcare & Pharmaceuticals 2,191
 2,170
 2,210
Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
MacNeill Pride Group Corp., L+650, 1.00% LIBOR Floor, 4/20/2026(n)3 Month LIBORServices: Consumer15,000 14,855 14,850 
MacNeill Pride Group Corp., 0.50% Unfunded, 7/20/2023(n)NoneServices: Consumer5,000 (48)(50)
Mimeo.com, Inc., L+700, 1.00% LIBOR Floor, 12/21/2023(q)3 Month LIBORServices: Business23,737 23,737 23,143 
Mimeo.com, Inc., L+1700, 1.00% LIBOR Floor, 12/21/2023(v)3 Month LIBORServices: Business2,006 2,006 2,058 
Mimeo.com, Inc., 1.00% Unfunded, 12/21/2023NoneServices: Business1,250 — 33 
Moss Holding Company, L+700, 1.00% LIBOR Floor, 4/17/2024(n)(o)(v)3 Month LIBORServices: Business19,590 19,430 17,631 
Moss Holding Company, 0.50% Unfunded, 4/17/2023NoneServices: Business2,232 — — 
Napa Management Services Corp., L+500, 1.00% LIBOR Floor, 4/19/20231 Month LIBORHealthcare & Pharmaceuticals5,346 5,277 5,343 
NASCO Healthcare Inc., L+450, 1.00% LIBOR Floor, 6/30/2023(n)3 Month LIBORServices: Business17,556 17,556 17,314 
NewsCycle Solutions, Inc., L+700, 1.00% LIBOR Floor, 12/29/2022(n)(o)3 Month LIBORMedia: Advertising, Printing & Publishing12,125 12,059 12,004 
NWN Parent Holdings LLC, L+650, 1.00% LIBOR Floor, 5/7/20263 Month LIBORHigh Tech Industries13,167 13,037 13,183 
NWN Parent Holdings LLC, 0.50% Unfunded, 5/7/2026NoneHigh Tech Industries1,800 (18)2 
Optio Rx, LLC, L+700, 0.00% LIBOR Floor, 6/28/2024(n)(o)1 Month LIBORHealthcare & Pharmaceuticals23,625 23,522 23,182 
Optio Rx, LLC, L+1000, 0.00% LIBOR Floor, 6/28/2024(o)1 Month LIBORHealthcare & Pharmaceuticals2,515 2,495 2,666 
Patterson Medical Supply, Inc., L+475, 1.00% LIBOR Floor, 8/28/20221 Month LIBORHealthcare & Pharmaceuticals5,968 5,893 5,968 
PetroChoice Holdings, Inc., L+500, 1.00% LIBOR Floor, 8/20/20223 Month LIBORChemicals, Plastics & Rubber3,916 3,812 3,760 
PH Beauty Holdings III. Inc., L+500, 0.00% LIBOR Floor, 9/28/2025(n)3 Month LIBORConsumer Goods: Non-Durable9,725 9,161 9,530 
Pixelle Specialty Solutions LLC, L+650, 1.00% LIBOR Floor, 10/31/2024(n)1 Month LIBORForest Products & Paper21,686 21,406 21,699 
Playboy Enterprises, Inc., L+575, 0.50% LIBOR Floor, 5/25/2027(h)(o)3 Month LIBORConsumer Goods: Non-Durable20,000 19,600 19,600 
Polymer Additives, Inc., L+600, 0.00% LIBOR Floor, 7/31/2025(n)3 Month LIBORChemicals, Plastics & Rubber19,500 19,247 18,769 
RA Outdoors, LLC, L+675, 0.00% LIBOR Floor, 4/8/2026(n)3 Month LIBORMedia: Diversified & Production15,951 15,951 15,811 
RA Outdoors, LLC, 0.50% Unfunded, 4/8/2026NoneMedia: Diversified & Production1,049 (170)(9)
Rapid Fire Protection, Inc., L+650, 1.75% LIBOR Floor, 11/22/2024(i)1 Month LIBORConstruction & Building7,000 6,974 7,000 
Retail Services WIS Corp., L+775, 1.00% LIBOR Floor, 5/20/2025(n)3 Month LIBORServices: Business10,000 9,803 9,850 
Rogers Mechanical Contractors, LLC, L+650, 1.00% LIBOR Floor, 9/9/2025(n)1 Month LIBORServices: Business17,692 17,692 17,692 
Rogers Mechanical Contractors, LLC, 0.75% Unfunded, 9/9/2025NoneServices: Business2,885 — — 
Rogers Mechanical Contractors, LLC, 1.00% Unfunded, 4/28/2023NoneServices: Business1,923 — — 
Securus Technologies Holdings, Inc., L+450, 1.00% LIBOR Floor, 11/1/2024(n)6 Month LIBORTelecommunications3,929 3,118 3,929 
Sequoia Healthcare Management, LLC, 12.75%, 8/21/2023(n)(o)(r)NoneHealthcare & Pharmaceuticals8,525 8,457 6,394 
SIMR, LLC, L+1700, 2.00% LIBOR Floor, 9/7/2023(n)(s)(v)1 Month LIBORHealthcare & Pharmaceuticals18,779 18,625 15,470 
Smart & Final Inc., L+675, 0.00% LIBOR Floor, 6/20/2025(n)1 Month LIBORRetail7,705 7,178 7,739 
Software Luxembourg Acquisitions S.À.R.L., L+750, 1.00% LIBOR Floor, 4/27/2025(h)(o)3 Month LIBORHigh Tech Industries3,004 2,909 3,004 
Software Luxembourg Acquisitions S.À.R.L., L+750, 1.00% LIBOR Floor, 12/27/2024(h)(o)3 Month LIBORHigh Tech Industries805 784 805 
Sorenson Communications, LLC, L+550, 0.75% LIBOR Floor, 3/17/2026(n)3 Month LIBORTelecommunications9,750 9,656 9,847 
Spinal USA, Inc. / Precision Medical Inc., L+950, 10/1/2021(n)3 Month LIBORHealthcare & Pharmaceuticals12,556 12,535 12,117 
Spinal USA, Inc. / Precision Medical Inc., L+950, 10/1/2021(n)(v)3 Month LIBORHealthcare & Pharmaceuticals1,176 1,116 1,178 
See accompanying notes to consolidated financial statements.
8


CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
SeptemberJune 30, 20172021
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(m) 
Fair
Value(c)
Woodstream Corp., L+625, 1.00% LIBOR Floor, 5/29/2022 3 Month LIBOR Consumer Goods: Non-Durable 7,896
 7,862
 7,896
Woodstream Corp., 0.75% Unfunded, 5/29/2021 (e) None Consumer Goods: Non-Durable 1,553
 —
 —
Total Senior Secured First Lien Debt 
 
 
 1,069,271
 1,079,520
Senior Secured Second Lien Debt - 38.4%          
ABG Intermediate Holdings 2 LLC, L+775, 1.00% LIBOR Floor, 9/29/2025 (i)(n) 3 Month LIBOR Retail 6,475
 6,427
 6,556
Access CIG, LLC, L+875, 1.00% LIBOR Floor, 10/17/2022 (p) 1 Month LIBOR Services: Business 16,030
 15,512
 15,709
Accruent, LLC, L+875, 1.00% LIBOR Floor, 7/28/2024 3 Month LIBOR High Tech Industries 749
 717
 738
Accruent, LLC, 0.75% Unfunded, 7/28/2018 (e) None High Tech Industries 1,414
 —
 (7)
ALM Media, LLC, L+800, 1.00% LIBOR Floor, 7/30/2021 (n)(p) 3 Month LIBOR Media: Advertising, Printing & Publishing 10,344
 10,231
 9,206
American Residential Services LLC, L+800, 1.00% LIBOR Floor, 12/31/2022 (n) 1 Month LIBOR Construction & Building 4,933
 4,894
 4,958
American Seafoods Group LLC, L+813, 1.00% LIBOR Floor, 2/21/2024 3 Month LIBOR Beverage, Food & Tobacco 18,233
 17,874
 17,869
Avalign Technologies, Inc., L+825, 1.00% LIBOR Floor, 7/15/2022 3 Month LIBOR Healthcare & Pharmaceuticals 5,500
 5,447
 5,445
Command Alkon Inc., L+900, 1.00% LIBOR Floor, 3/1/2024 1 Month LIBOR High Tech Industries 2,440
 2,404
 2,404
Confie Seguros Holding II Co., L+975, 1.25% LIBOR Floor, 5/8/2019 1 Month LIBOR Banking, Finance, Insurance & Real Estate 4,577
 4,471
 4,497
Conisus, LLC, L+875, 1.00% LIBOR Floor, 6/23/2021 3 Month LIBOR Healthcare & Pharmaceuticals 11,750
 9,868
 9,400
Drew Marine Group, Inc., L+700, 1.00% LIBOR Floor, 5/19/2021 (h)(n) 1 Month LIBOR Chemicals, Plastics & Rubber 9,500
 9,462
 9,500
EagleTree-Carbide Acquisition Corp., L+825, 1.00% LIBOR Floor, 8/28/2025 (i) 3 Month LIBOR Consumer Goods: Durable 20,000
 19,700
 19,800
Elements Behavioral Health, Inc., L+1200, 1.00% LIBOR Floor, 2/11/2020 (r)(s) 3 Month LIBOR Healthcare & Pharmaceuticals 6,287
 6,054
 4,841
Emerald 3 Ltd., L+700, 1.00% LIBOR Floor, 5/16/2022 (h)(n) 3 Month LIBOR Environmental Industries 3,000
 2,981
 2,813
Evergreen Skills Lux S.À.R.L., L+825, 1.00% LIBOR Floor, 4/28/2022 (h)(n) 1 Month LIBOR High Tech Industries 9,999
 7,158
 8,249
Flexera Software LLC, L+700, 1.00% LIBOR Floor, 4/2/2021 (p) 3 Month LIBOR High Tech Industries 9,385
 9,166
 9,421
Genex Holdings, Inc., L+775, 1.00% LIBOR Floor, 5/30/2022 (n)(p) 1 Month LIBOR Services: Business 11,410
 11,331
 11,324
GHX Ultimate Parent Corp., L+800, 1.00% LIBOR Floor, 6/30/2025 3 Month LIBOR Healthcare & Pharmaceuticals 13,926
 13,517
 13,508
Global Tel*Link Corp., L+775, 1.25% LIBOR Floor, 11/23/2020 (p) 3 Month LIBOR Telecommunications 9,500
 9,492
 9,488
GOBP Holdings, Inc., L+825, 1.00% LIBOR Floor, 10/21/2022 (o) 3 Month LIBOR Retail 4,000
 4,020
 4,045
Institutional Shareholder Services Inc., L+850, 1.00% LIBOR Floor, 4/30/2022 (n) 1 Month LIBOR Services: Business 10,648
 10,543
 10,648
Medical Solutions Holdings, Inc., L+825, 1.00% LIBOR Floor, 6/16/2025 (n) 3 Month LIBOR Healthcare & Pharmaceuticals 10,000
 9,856
 9,950
Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023 (n) 1 Month LIBOR Services: Business 7,000
 6,902
 7,000
Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023 1 Month LIBOR Services: Business 292
 292
 292
Ministry Brands, LLC, L+100, 1.00% LIBOR Floor, Unfunded, 2/22/2019 (e) 1 Month LIBOR Services: Business 742
 —
 —
Mitchell International, Inc., L+750, 1.00% LIBOR Floor, 10/11/2021 (n)(o) 3 Month LIBOR High Tech Industries 14,909
 14,533
 15,105
MSHC, Inc., L+825, 1.00% LIBOR Floor, 7/31/2024 2 Month LIBOR Services: Business 2,081
 2,015
 2,013
Niacet Corp., E+875, 1.00% EURIBOR Floor, 8/1/2024 (h) 3 Month EURIBOR
 Chemicals, Plastics & Rubber €7,489
 7,938
 8,671
Onex Carestream Finance LP, L+850, 1.00% LIBOR Floor, 12/7/2019 (o) 3 Month LIBOR Healthcare & Pharmaceuticals 12,030
 11,014
 11,767
Onex TSG Holdings II Corp., L+850, 1.00% LIBOR Floor, 7/31/2023 (n)(o) 1 Month LIBOR Healthcare & Pharmaceuticals 12,249
 12,143
 12,180
Paris Presents Inc., L+875, 1.00% LIBOR Floor, 12/31/2021 (n) 1 Month LIBOR Consumer Goods: Durable 3,500
 3,435
 3,465
Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
Spinal USA, Inc. / Precision Medical Inc., L+1050, 10/1/2021(i)(n)(v)3 Month LIBORHealthcare & Pharmaceuticals1,030 1,030 999 
Spinal USA, Inc. / Precision Medical Inc., L+950, 10/1/2021(n)(v)3 Month LIBORHealthcare & Pharmaceuticals634 493 610 
Stats Intermediate Holdings, LLC, L+525, 0.00% LIBOR Floor, 7/12/2026(n)3 Month LIBORHigh Tech Industries9,850 9,687 9,887 
STV Group, Inc., L+525, 0.00% LIBOR Floor, 12/13/2026(o)1 Month LIBORServices: Business1,995 1,975 1,985 
Tenere Inc., L+850, 1.00% LIBOR Floor, 5/5/2025(n)(o)3 Month LIBORCapital Equipment18,080 18,051 18,103 
Tensar Corp., L+675, 1.00% LIBOR Floor, 10/20/2025(n)3 Month LIBORChemicals, Plastics & Rubber4,975 4,865 5,003 
The Pasha Group, L+800, 1.00% LIBOR Floor, 1/26/2023(n)(o)2 Month LIBORTransportation: Cargo3,885 3,843 3,924 
The Pay-O-Matic Corp., L+900, 1.00% LIBOR Floor, 10/29/2021(j)(n)3 Month LIBORServices: Consumer6,162 6,126 6,162 
Vesta Holdings, LLC, L+1000, 1.00% LIBOR Floor, 2/25/2024(n)(v)1 Month LIBORBanking, Finance, Insurance & Real Estate25,268 25,268 25,268 
Volta Charging, LLC, 12.00%, 6/19/2024(n)NoneMedia: Diversified & Production15,000 15,000 16,219 
Volta Charging, LLC, 12.00%, 6/19/2024(n)NoneMedia: Diversified & Production12,000 11,983 12,975 
West Dermatology Management Holdings, LLC, L+675, 1.00% LIBOR Floor, 2/11/2025(n)(o)(v)3 Month LIBORHealthcare & Pharmaceuticals9,455 9,400 9,183 
West Dermatology Management Holdings, LLC, L+675, 1.00% LIBOR Floor, 2/11/2025(n)(v)3 Month LIBORHealthcare & Pharmaceuticals1,657 1,645 1,607 
West Dermatology Management Holdings, LLC, L+750, 1.00% LIBOR Floor, 2/11/20253 Month LIBORHealthcare & Pharmaceuticals1,182 1,182 1,196 
West Dermatology Management Holdings, LLC, 0.75% Unfunded, 2/11/2022NoneHealthcare & Pharmaceuticals472 — 5 
West Dermatology Management Holdings, LLC, 0.75% Unfunded, 2/11/2022NoneHealthcare & Pharmaceuticals7,182 (20)(206)
Williams Industrial Services Group, Inc, L+900, 1.00% LIBOR Floor, 12/16/2025(o)1 Month LIBORServices: Business9,925 9,925 10,024 
Williams Industrial Services Group, Inc, 0.50% Unfunded, 6/16/2022NoneServices: Business5,000 — 50 
Wind River Systems, Inc., L+675, 1.00% LIBOR Floor, 6/24/20243 Month LIBORHigh Tech Industries24,342 24,139 24,190 
Wok Holdings Inc., L+625, 0.00% LIBOR Floor, 3/1/2026(n)1 Month LIBORBeverage, Food & Tobacco20,444 19,940 20,316 
Total Senior Secured First Lien Debt1,430,846 1,407,224 
Senior Secured Second Lien Debt - 15.3%
Access CIG, LLC, L+775, 0.00% LIBOR Floor, 2/27/2026(n)(o)1 Month LIBORServices: Business17,250 17,146 17,164 
Carestream Health, Inc., L+1250, 1.00% LIBOR Floor, 8/8/2023(n)(o)(v)3 Month LIBORHealthcare & Pharmaceuticals11,966 11,966 11,764 
Country Fresh Holdings, LLC, L+850, 1.00% LIBOR Floor, 4/29/2024(n)(r)(v)3 Month LIBORBeverage, Food & Tobacco2,364 2,297 — 
Dayton Superior Corp., L+700, 2.00% LIBOR Floor, 12/4/2024(n)3 Month LIBORConstruction & Building1,485 1,485 1,483 
Deluxe Entertainment Services, Inc., L+850, 1.00% LIBOR Floor, 9/25/2024(n)(r)(s)(v)3 Month LIBORMedia: Diversified & Production10,400 10,017 — 
Global Tel*Link Corp., L+825, 0.00% LIBOR Floor, 11/29/2026(o)1 Month LIBORTelecommunications11,500 11,345 11,471 
LSCS Holdings, Inc., L+825, 0.00% LIBOR Floor, 3/16/2026(n)6 Month LIBORServices: Business11,891 11,701 11,653 
Medical Solutions Holdings, Inc., L+838, 1.00% LIBOR Floor, 6/16/2025(n)1 Month LIBORHealthcare & Pharmaceuticals10,000 9,907 9,750 
MedPlast Holdings, Inc., L+775, 0.00% LIBOR Floor, 7/2/2026(n)1 Month LIBORHealthcare & Pharmaceuticals6,750 6,702 6,202 
Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023(n)(o)1 Month LIBORServices: Business7,000 7,000 6,982 
Niacet Corp., E+875, 1.00% EURIBOR Floor, 8/1/2024(h)1 Month EURIBORChemicals, Plastics & Rubber€6,263 6,721 7,426 
Patterson Medical Supply, Inc., L+1050, 1.00% LIBOR Floor, 8/28/2023(n)(v)3 Month LIBORHealthcare & Pharmaceuticals15,563 15,510 15,563 
PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/20233 Month LIBORChemicals, Plastics & Rubber15,000 14,399 14,550 
Premiere Global Services, Inc., L+950, 1.00% LIBOR Floor, 6/6/2024(r)(v)3 Month LIBORTelecommunications3,590 3,435 108 
See accompanying notes to consolidated financial statements.
9


CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
SeptemberJune 30, 20172021
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(m) 
Fair
Value(c)
Patterson Medical Supply, Inc., L+850, 1.00% LIBOR Floor, 8/28/2023 (n) 3 Month LIBOR Healthcare & Pharmaceuticals 13,500
 13,379
 13,163
PDI TA Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/25/2024 1 Month LIBOR High Tech Industries 2,500
 2,447
 2,447
PDI TA Holdings, Inc., 0.50% Unfunded, 8/24/2018 (e) None High Tech Industries 550
 —
 (12)
Pelican Products, Inc., L+825, 1.00% LIBOR Floor, 4/11/2021 (o) 3 Month LIBOR Chemicals, Plastics & Rubber 3,469
 3,458
 3,469
PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023 (n) 1 Month LIBOR Chemicals, Plastics & Rubber 15,000
 14,719
 14,738
PFS Holding Corp., L+725, 1.00% LIBOR Floor, 1/31/2022 (o) 1 Month LIBOR Retail 4,998
 4,680
 4,273
Premiere Global Services, Inc., L+950, 1.00% LIBOR Floor, 6/6/2022 (n) 1 Month LIBOR Telecommunications 3,000
 2,892
 2,895
PSC Industrial Holdings Corp., L+825, 1.00% LIBOR Floor, 12/5/2021 (n) 1 Month LIBOR Services: Business 10,000
 9,862
 10,000
Robertshaw US Holding Corp., L+900, 0.00% LIBOR Floor, 2/10/2025 1 Month LIBOR Chemicals, Plastics & Rubber 5,000
 4,855
 4,994
Securus Technologies Holdings, Inc., L+775, 1.25% LIBOR Floor, 4/30/2021 (o)(p) 3 Month LIBOR Telecommunications 5,500
 5,478
 5,514
Securus Technologies Holdings, Inc., L+825, 1.00% LIBOR Floor, 6/20/2025 (i)(p) 1 Month LIBOR Telecommunications 2,942
 2,913
 2,968
SMG, L+825, 1.00% LIBOR Floor, 2/27/2021 (n) 1 Month LIBOR Hotel, Gaming & Leisure 6,142
 6,142
 6,126
STG-Fairway Acquisitions, Inc., L+925, 1.00% LIBOR Floor, 6/30/2023 (n)(o) 3 Month LIBOR Services: Business 10,000
 9,879
 9,000
Survey Sampling International, LLC, L+900, 1.00% LIBOR Floor, 12/16/2021 (n) 3 Month LIBOR Services: Business 5,000
 4,931
 4,950
TexOak Petro Holdings LLC, 8.00%, 12/29/2019 (r)(s) None Energy: Oil & Gas 7,137
 2,360
 —
TMK Hawk Parent, Corp., L+800, 1.00% LIBOR Floor, 8/28/2025 (n) 3 Month LIBOR Services: Business 13,393
 13,061
 13,058
TouchTunes Interactive Networks, Inc., L+825, 1.00% LIBOR Floor, 5/29/2022 (p) 3 Month LIBOR Hotel, Gaming & Leisure 6,000
 5,949
 6,007
U.S. Anesthesia Partners, Inc., L+725, 1.00% LIBOR Floor, 6/23/2025 1 Month LIBOR Healthcare & Pharmaceuticals 10,235
 10,085
 10,081
U.S. Renal Care, Inc., L+800, 1.00% LIBOR Floor, 12/29/2023 (n) 3 Month LIBOR Healthcare & Pharmaceuticals 5,000
 4,917
 4,875
Wand Intermediate I LP, L+725, 1.00% LIBOR Floor, 9/19/2022 (n) 3 Month LIBOR Automotive 16,000
 15,875
 16,080
Winebow Holdings, Inc., L+750, 1.00% LIBOR Floor, 1/2/2022 (n) 1 Month LIBOR Beverage, Food & Tobacco 12,823
 12,577
 11,990
Zywave Inc., L+900, 1.00% LIBOR Floor, 11/17/2023 (n) 3 Month LIBOR High Tech Industries 5,000
 4,932
 4,988
Total Senior Secured Second Lien Debt       404,788
 402,459
Collateralized Securities and Structured Products - Debt - 2.7%          
Deutsche Bank AG Frankfurt CRAFT 2014-1 Class Credit Linked Note, L+965, 5/15/2019 (h) 3 Month LIBOR Diversified Financials 4,304
 4,304
 4,200
Deutsche Bank AG Frankfurt CRAFT 2015-2 Class Credit Linked Note, L+925, 1/16/2022 (h) 3 Month LIBOR Diversified Financials 15,500
 15,500
 14,993
Ivy Hill Middle Market Credit Fund VII, Ltd. Class E Notes, L+565, 10/20/2025 (g)(h) 3 Month LIBOR Diversified Financials 2,000
 1,887
 1,931
NXT Capital CLO 2014-1, LLC Class E Notes, L+550, 4/23/2026 (g)(h) 3 Month LIBOR Diversified Financials 7,500
 7,127
 7,160
Total Collateralized Securities and Structured Products - Debt       28,818
 28,284
Collateralized Securities and Structured Products - Equity - 2.8%          
Anchorage Capital CLO 2012-1, Ltd. Subordinated Notes, 2.82% Estimated Yield, 1/13/2025 (h) (f) Diversified Financials 4,000
 2,621
 2,244
APIDOS CLO XVI Subordinated Notes, 11.84% Estimated Yield, 1/19/2025 (h) (f) Diversified Financials 9,000
 4,140
 3,569
CENT CLO 19 Ltd. Subordinated Notes, 6.47% Estimated Yield, 10/29/2025 (h) (f) Diversified Financials 2,000
 1,305
 1,087
Galaxy XV CLO Ltd. Class A Subordinated Notes, 4.60% Estimated Yield, 4/15/2025 (h) (f) Diversified Financials 4,000
 2,356
 2,189
Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
Securus Technologies Holdings, Inc., L+825, 1.00% LIBOR Floor, 11/1/20253 Month LIBORTelecommunications2,942 2,922 2,942 
TMK Hawk Parent, Corp., L+800, 1.00% LIBOR Floor, 8/28/2025(n)1 Month LIBORServices: Business13,393 13,180 9,877 
Zest Acquisition Corp., L+750, 1.00% LIBOR Floor, 3/14/2026(n)(o)1 Month LIBORHealthcare & Pharmaceuticals15,000 14,898 14,775 
Total Senior Secured Second Lien Debt160,631 141,710 
Collateralized Securities and Structured Products - Equity - 1.5%
APIDOS CLO XVI Subordinated Notes, 0.00% Estimated Yield, 1/19/2025(h)(g)Diversified Financials9,000 2,402 1,725 
CENT CLO 19 Ltd. Subordinated Notes, 0.00% Estimated Yield, 10/29/2025(h)(g)Diversified Financials2,000 1,161 498 
Galaxy XV CLO Ltd. Class A Subordinated Notes, 5.76% Estimated Yield, 4/15/2025(h)(g)Diversified Financials4,000 1,877 1,987 
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan, 11.84% Estimated Yield, 2/2/2026(h)(g)Diversified Financials10,000 9,047 9,885 
Total Collateralized Securities and Structured Products - Equity14,487 14,095 
Unsecured Debt - 0.6%
WPLM Acquisition Corp., 15.00%, 11/24/2025(v)NoneMedia: Advertising, Printing & Publishing5,752 5,675 5,508 
Total Unsecured Debt5,675 5,508 
Equity - 11.6%
1244301 B.C. LTD., Common Shares(p)(s)Chemicals, Plastics & Rubber807,268 Units— 186 
ACNR Holdings, Inc., Common Stock(p)Metals & Mining6,018 Units90 137 
ACNR Holdings, Inc., Preferred Stock(p)Metals & Mining1,890 Units26 203 
Alert 360 Topco, Inc., Common Stock(p)(s)Services: Consumer584,498 Units3,624 3,731 
American Clinical Solutions LLC, Class A Membership Interests(p)(s)Healthcare & Pharmaceuticals6,030,384 Units1,658 4,704 
Anthem Sports and Entertainment Inc., Class A Preferred Stock Warrants(p)Media: Diversified & Production907 Units205 242 
Anthem Sports and Entertainment Inc., Class B Preferred Stock Warrants(p)Media: Diversified & Production160 Units— — 
Anthem Sports and Entertainment Inc., Common Stock Warrants(p)Media: Diversified & Production2,960 Units— — 
ARC Financial Partners, LLC, Membership Interests (25% ownership)(p)(s)Metals & MiningN/A— 16 
Ascent Resources - Marcellus, LLC, Membership Units(p)Energy: Oil & Gas511,255 Units1,642 456 
Ascent Resources - Marcellus, LLC, Warrants(p)Energy: Oil & Gas132,367 Units13 2 
BCP Great Lakes Fund LP, Partnership Interests (11.4% ownership)(h)(s)Diversified FinancialsN/A11,594 11,615 
Carestream Health Holdings, Inc., Warrants(p)Healthcare & Pharmaceuticals233 Units565 1,040 
CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend(u)Healthcare & Pharmaceuticals2,727,273 Units5,634 7,555 
CION SOF Funding, LLC, Membership Interests (87.5% ownership)(p)(t)Diversified FinancialsN/A— — 
Conisus Holdings, Inc., Series B Preferred Stock, 12% Dividend(s)(u)Healthcare & Pharmaceuticals12,677,833 Units16,094 19,571 
Conisus Holdings, Inc., Common Stock(p)(s)Healthcare & Pharmaceuticals4,914,556 Units200 19,056 
Country Fresh Holdings, LLC, Membership Units(p)Beverage, Food & Tobacco2,985 Units5,249 — 
Dayton HoldCo, LLC, Membership Units(p)Construction & Building37,264 Units4,136 7,734 
DBI Investors, Inc., Series A1 Preferred Stock(p)Retail20,000 Units802 — 
DBI Investors, Inc., Series A2 Preferred Stock(p)Retail1,733 Units— — 
DBI Investors, Inc., Series A Preferred Stock(p)Retail1,396 Units140 — 
See accompanying notes to consolidated financial statements.
10


CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
SeptemberJune 30, 20172021
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(m) 
Fair
Value(c)
Ivy Hill Middle Market Credit Fund VII, Ltd. Subordinated Notes, 10.40% Estimated Yield, 10/20/2025 (h) (f) Diversified Financials 2,000
 1,581
 1,479
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan, 10.35% Estimated Yield, 2/2/2026 (e)(h) (f) Diversified Financials 10,000
 9,857
 9,662
Ivy Hill Middle Market Credit Fund IX, Ltd. Subordinated Notes, 14.21% Estimated Yield, 10/18/2025 (h) (f) Diversified Financials 8,146
 5,933
 5,885
Ivy Hill Middle Market Credit Fund X, Ltd., 10.06% Estimated Yield, 7/24/2027 (h) (f) Diversified Financials 4,760
 3,744
 3,473
Total Collateralized Securities and Structured Products - Equity       31,537
 29,588
Unsecured Debt - 0.7%          
Visual Edge Technology, Inc., 12.50%, 8/31/2024 None Services: Business 7,519
 7,333
 7,331
Total Unsecured Debt       7,333
 7,331
Equity - 0.4%          
Commerce Topco, LLC (q)   Healthcare & Pharmaceuticals 87 Units
 85
 85
Commerce Parent, Inc. (q)   Healthcare & Pharmaceuticals 87 Units
 87
 87
F+W Media, Inc. (q)   Media: Diversified & Production 31,211 Units
 —
 —
Mooregate ITC Acquisition, LLC, Class A Units (q)   High Tech Industries 500 Units
 563
 450
NS NWN Acquisition, LLC (q)   High Tech Industries 404 Units
 393
 450
NSG Co-Invest (Bermuda) LP (h)(q)   Consumer Goods: Durable 1,575 Units
 1,000
 875
Spinal USA, Inc. / Precision Medical Inc., Warrants (q)   Healthcare & Pharmaceuticals 1,551,569 Units
 853
 853
Southcross Holdings LP, Class A-II Units (q)   Energy: Oil & Gas 188 Units
 75
 127
Southcross Holdings GP, LLC, Units (q)   Energy: Oil & Gas 188 Units
 —
 —
Speed Commerce Investment Part, LLC (q)   High Tech Industries 629 Units
 2,640
 900
Tenere Inc. Warrant (q)   Capital Equipment N/A
 161
 36
TexOak Petro Holdings LLC (q)   Energy: Oil & Gas 60,000 Units
 —
 —
Total Equity       5,857
 3,863
Short Term Investments - 13.5%(k)          
First American Treasury Obligations Fund, Class Z Shares, 0.89% (l)       140,810
 140,810
Total Short Term Investments       140,810
 140,810
TOTAL INVESTMENTS - 161.6%       $1,688,414
 1,691,855
LIABILITIES IN EXCESS OF OTHER ASSETS - (61.6%)         (644,668)
NET ASSETS - 100%         $1,047,187
Portfolio Company(a)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
DBI Investors, Inc., Series B Preferred Stock(p)Retail4,183 Units410 — 
DBI Investors, Inc., Common Stock(p)Retail39,423 Units— — 
DBI Investors, Inc., Reallocation Rights(p)Retail7,500 Units— — 
DESG Holdings, Inc., Common Stock(i)(p)(s)Media: Diversified & Production1,268,143 Units13,675 — 
HDNet Holdco LLC, Preferred Unit Call Option(p)Media: Diversified & Production1 Unit— — 
Independent Pet Partners Intermediate Holdings, LLC, Class A Preferred Units(p)Retail1,000,000 Units1,000 — 
Independent Pet Partners Intermediate Holdings, LLC, Class B-2 Preferred Units(p)Retail2,632,771 Units2,133 1,590 
Independent Pet Partners Intermediate Holdings, LLC, Class C Preferred Units(p)Retail2,632,771 Units2,633 2,721 
Independent Pet Partners Intermediate Holdings, LLC, Warrants(p)Retail155,880 Units— — 
Longview Intermediate Holdings C, LLC, Membership Units(p)(s)Energy: Oil & Gas589,487 Units2,524 10,422 
Mooregate ITC Acquisition, LLC, Class A Units(p)(s)High Tech Industries500 Units563 115 
Mount Logan Capital Inc., Common Stock(f)(h)(s)Banking, Finance, Insurance & Real Estate1,075,557 Units3,534 3,045 
NS NWN Acquisition, LLC, Voting Units(p)High Tech Industries346 Units393 1,730 
NS NWN Acquisition, LLC, Class A Preferred Units(p)High Tech Industries111 Units110 331 
NSG Co-Invest (Bermuda) LP, Partnership Interests(h)(p)Consumer Goods: Durable1,575 Units1,000 772 
Palmetto Clean Technology, Inc., Warrants(p)High Tech Industries724,112 Units472 2,274 
Phillips Pet Holding Corp., Common Stock(p)Retail235 Units13 17 
SIMR Parent, LLC, Class B Common Units(p)(s)Healthcare & Pharmaceuticals12,283,163 Units8,002 — 
SIMR Parent, LLC, Class W Units(p)(s)Healthcare & Pharmaceuticals1,778,219 Units— — 
Skillsoft Corp., Class A Common Stock(h)(p)High Tech Industries243,425 Units2,286 2,286 
Snap Fitness Holdings, Inc., Class A Common Stock(p)(s)Services: Consumer9,858 Units3,078 3,097 
Snap Fitness Holdings, Inc., Warrants(p)(s)Services: Consumer3,996 Units1,247 1,255 
Spinal USA, Inc. / Precision Medical Inc., Warrants(p)Healthcare & Pharmaceuticals20,667,324 Units5,806 — 
Tenere Inc., Warrants(p)Capital EquipmentN/A161 1,114 
Total Equity100,712 107,017 
Short Term Investments - 5.2%(l)
First American Treasury Obligations Fund, Class Z Shares, 0.01%(m)48,484 48,484 
Total Short Term Investments48,484 48,484 
TOTAL INVESTMENTS - 186.2%$1,760,835 1,724,038 
LIABILITIES IN EXCESS OF OTHER ASSETS - (86.2%)(798,158)
NET ASSETS - 100%$925,880 
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. The Company does not control and is not an affiliate of any of the portfolio companies in its investment portfolio. Unless specifically identified in note s. below, investments do not contain a paid-in-kind, or PIK, interest provision.
b.The 1, 2, 3, and 6 month London Interbank Offered Rate, or LIBOR, rates were 1.24%, 1.27%, 1.34%, and 1.51%, respectively, as of September 30, 2017.  The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of September 30, 2017, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to September 30, 2017. The 3 month Euro Interbank Offered Rate, or EURIBOR, rate was (0.38%) as of September 30, 2017.
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.Denominated in U.S. dollars unless otherwise noted.
e.As discussed in Note 11, on September 30, 2017, the Company was committed, upon the satisfaction of certain conditions, to fund an additional $2,156, $1,111 and $992 to Studio Movie Grill Holdings, LLC, Ivy Hill Middle Market Credit Fund VIII, Ltd. and    GTCR-Ultra Acquisition, Inc., respectively. On November 9, 2017, the Company was committed, upon the satisfaction of certain conditions, to fund an additional $22,800, $18,985, $3,278, $2,500, $1,865, $1,608, $1,553, $1,250, $1,188, $1,151, $1,111, $992, $815, $540, $459, $157, and $154 to DFC Global Facility Borrower II LLC, Lonestar Prospects, Ltd., Moss Holding Company, Elemica Holdings, Inc., Ministry Brands, LLC, Studio Movie Grill Holdings, LLC, Woodstream Corp., Teledoc, Inc., Island Medical Management Holdings, LLC, Visual Edge Technology, Inc., Ivy Hill Middle Market Credit Fund VIII, Ltd., GTCR-Ultra Acquisition, Inc., PDI TA Holdings, Inc., Frontline Technologies Group Holdings LLC, Covenant Surgical Partners, Inc., Accruent, LLC, and American Media, Inc., respectively.
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.
See accompanying notes to consolidated financial statements.
11



CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
SeptemberJune 30, 20172021
(in thousands)
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.Ivy Hill Middle Market Credit Fund VII Class E Notes and NXT Capital CLO 2014-1 Class E Notes were rated Ba2 on Moody's credit scale as of September 30, 2017.
h.The investment or a portion thereof is not a qualifying asset under the 1940 Act. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets as defined under Section 55 of the 1940 Act. As of September 30, 2017, 89.4% of the Company’s total assets represented qualifying assets.
i.Position or a portion thereof unsettled as of September 30, 2017.
j.In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company may be entitled to receive additional amounts as a result of an arrangement between the Company and other lenders in the syndication in exchange for lower payment priority.
k.Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less.
l.7-day effective yield as of September 30, 2017.
m.Represents amortized cost for debt securities and cost for equity investments.
n.Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, 34th Street Funding, LLC, or 34th Street, and was pledged as collateral supporting the amounts outstanding under the credit facility with JPMorgan Chase Bank, National Association, or JPM, as of September 30, 2017 (see Note 8).
o.Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, Flatiron Funding II, LLC, or Flatiron Funding II, and was pledged as collateral supporting the amounts outstanding under the credit facility with Citibank N.A., or Citibank, as of September 30, 2017 (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, 2017 (see Note 8).
q.Non-income producing security.
r.Investment or a portion thereof was on non-accrual status as of September 30, 2017.
s.For the nine months ended September 30, 2017, the following investments contain a PIK interest provision whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities:
b.The 1, 2, 3 and 6 month London Interbank Offered Rate, or LIBOR, rates were 0.10%, 0.13%, 0.15% and 0.16%, respectively, as of June 30, 2021.  The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of June 30, 2021, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to June 30, 2021. The 1 month Euro Interbank Offered Rate, or EURIBOR, rate was (0.59%) as of June 30, 2021.
    Interest Rate Interest Amount
Portfolio Company Investment Type Cash PIK All-in-Rate Cash PIK Total
Charming Charlie, LLC(t) Senior Secured First Lien Debt 7.50% 1.50% 9.00% $369
 $—
 $369
Elements Behavioral Health, Inc.(t) Senior Secured Second Lien Debt — 13.00% 13.00% $—
 $365
 $365
F+W Media, Inc.(t) Senior Secured First Lien Debt 1.50% 10.00% 11.50% $19
 $93
 $112
Petroflow Energy Corp.(t)
 Senior Secured First Lien Debt 3.00% 6.00% 9.00% $99
 $187
 $286
Rimini Street, Inc. Senior Secured First Lien Debt 12.00% 3.00% 15.00% $1,469
 $403
 $1,872
Sequoia Healthcare Management, LLC
 Senior Secured First Lien Debt 12.00% 4.00% 16.00% $531
 $211
 $742
Southcross Holdings Borrower LP Senior Secured First Lien Debt 3.50% 5.50% 9.00% $6
 $7
 $13
Spinal USA, Inc. / Precision Medical Inc.
 Senior Secured First Lien Debt — 10.50% 10.50% $—
 $124
 $124
TexOak Petro Holdings LLC(t)
 Senior Secured Second Lien Debt — 8.00% 8.00% $—
 $314
 $314
c.Fair value determined in good faith by the Company’s board of directors (see Note 9) using significant unobservable inputs unless otherwise noted.
t.The PIK interest portion of the investment was on non-accrual status as of September 30, 2017.
u.As of November 9, 2017, no interest rate option had been elected as the entire position remained unsettled.
d.Represents amortized cost for debt securities and cost for equity investments.
e.Denominated in U.S. dollars unless otherwise noted.
f.Fair value determined using level 1 inputs.
g.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.
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 June 30, 2021, 95.4% of the Company’s total assets represented qualifying assets.
i.Position or a portion thereof unsettled as of June 30, 2021.
j.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.
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 residual amounts.
l.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.
m.7-day effective yield as of June 30, 2021.
n.Investment or a portion thereof held within the Company’s wholly-owned consolidated subsidiary, 34th Street Funding, LLC, or 34th Street, and was pledged as collateral supporting the amounts outstanding under the credit facility with JPMorgan Chase Bank, National Association, or JPM, as of June 30, 2021 (see Note 8).
o.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 June 30, 2021 (see Note 8).
p.Non-income producing security.
q.The ultimate interest earned on this loan will be determined based on the portfolio company’s EBITDA at a specified trigger event.
r.Investment or a portion thereof was on non-accrual status as of June 30, 2021.
See accompanying notes to consolidated financial statements.
12

CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
June 30, 2021
(in thousands)
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, 2020 and June 30, 2021, along with transactions during the six months ended June 30, 2021 in these affiliated investments, were as follows:
Six Months Ended June 30, 2021Six Months Ended June 30, 2021
Non-Controlled, Affiliated InvestmentsFair Value at
December 31, 2020		Gross
Additions
(Cost)(1)		Gross
Reductions
(Cost)(2)		Net Unrealized Gain (Loss)Fair Value at June 30, 2021Net Realized Gain (Loss)Interest
Income(3)		Dividend Income
    1244301 B.C. LTD.
        First Lien Term Loan A$2,289 $9 $(11)$(1)$2,286 $— $83 $— 
        First Lien Term Loan B755 29 — (1)783 — 29 — 
        Common Shares— — — 186 186 — — — 
    Alert 360 Opco, Inc.
        First Lien Term Loan— 12,239 (61)16 12,194 — 417 — 
        Common Stock— 3,624 — 107 3,731 — — — 
    American Clinical Solutions LLC
        Tranche I Term Loan3,124 18 — 192 3,334 — 141 — 
        First Amendment Tranche I Term Loan242 — — 4 246 — 8 — 
        Class A Membership Interests663 — — 4,041 4,704 — — — 
   ��ARC Financial, LLC
        Membership Interests— — — 16 16 — — — 
    BCP Great Lakes Fund LP
        Membership Interests12,611 1,641 (2,911)274 11,615 — — 780 
    Charming Charlie, LLC
        Vendor Payment Financing Facility350 — — — 350 — — — 
    Conisus Holdings, Inc.
        Series B Preferred Stock16,481 951 — 2,139 19,571 — — 951 
        Common Stock12,401 — — 6,655 19,056 — — — 
    DESG Holdings, Inc.
        First Lien Term Loan3,978 63 (667)(20)3,354 — 158 — 
        Second Lien Term Loan— — — — — — — — 
        Common Stock— — — — — — — — 
    F+W Media, Inc.
        First Lien Term Loan B-1— — (1,115)1,115 — (1,080)— — 
    Lift Brands, Inc.
        Term Loan A23,642 — — — 23,642 — 1,010 — 
        Term Loan B4,751 245 — (42)4,954 — 245 — 
        Term Loan C4,687 64 — (51)4,700 — 64 — 
    Longview Intermediate Holdings C, LLC
        Membership Units7,988 — — 2,434 10,422 — — — 
    Longview Power, LLC
        First Lien Term Loan2,414 1,959 (13)61 4,421 — 257 — 
    Mount Logan Capital Inc.
        Common Stock2,409 — — 636 3,045 — — 29 
    SIMR, LLC
        First Lien Term Loan13,347 2,650 — (527)15,470 — 1,909 — 
    SIMR Parent, LLC
        Class B Common Units— — — — — — — — 
        Class W Units— — — — — — — — 
    Snap Fitness Holdings, Inc.
        Class A Stock3,389 — — (292)3,097 — — — 
        Warrants1,374 — — (119)1,255 — — — 
    Totals$116,895 $23,492 $(4,778)$16,823 $152,432 $(1,080)$4,321 $1,760 
(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.
13

CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
June 30, 2021
(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, 2020 and June 30, 2021, along with transactions during the six months ended June 30, 2021 in these controlled investments, were as follows:
Six Months Ended June 30, 2021Six Months Ended June 30, 2021
Controlled InvestmentsFair Value at
December 31, 2020		Gross
Additions
(Cost)(1)		Gross
Reductions
(Cost)(2)		Net 
Unrealized
Gain (Loss)		Fair Value at
June 30, 2021		Net Realized
Gain (Loss)		Interest
Income(3)		Dividend Income
    CION SOF Funding, LLC
        Membership Interests$12,472 $— $(15,539)$3,067 $— $(3,067)$— $— 
    Totals$12,472 $— $(15,539)$3,067 $— $(3,067)$— $— 
(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.
(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.
u.For the six months ended June 30, 2021, non-cash dividend income of $951 and $164 was recorded on the Company's investment in Conisus Holdings, Inc. and CHC Medical Partners, Inc., respectively.
See accompanying notes to consolidated financial statements.
14

CĪON Investment Corporation
Consolidated Schedule of Investments (unaudited)
June 30, 2021
(in thousands)
v.As of June 30, 2021, 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 CompanyInvestment TypeCashPIKAll-in-Rate
1244311 B.C. LTD.Senior Secured First Lien Debt—6.00%6.00%
Adapt Laser Acquisition, Inc.Senior Secured First Lien Debt11.00%2.00%13.00%
Alliance Healthcare Services, Inc.Senior Secured First Lien Debt4.50%1.00%5.50%
American Consolidated Natural Resources, Inc.Senior Secured First Lien Debt11.00%3.00%14.00%
Ancile Solutions, Inc.Senior Secured First Lien Debt8.00%3.00%11.00%
Anthem Sports & Entertainment Inc.Senior Secured First Lien Debt7.75%2.75%10.50%
Cadence Aerospace, LLCSenior Secured First Lien Debt4.25%5.25%9.50%
Carestream Health, Inc.Senior Secured Second Lien Debt5.50%8.00%13.50%
CHC Solutions Inc.Senior Secured First Lien Debt8.00%4.00%12.00%
CircusTrix Holdings, LLCSenior Secured First Lien Debt6.50%2.50%9.00%
Country Fresh Holdings, LLCSenior Secured First Lien Debt8.00%4.00%12.00%
Country Fresh Holdings, LLCSenior Secured Second Lien Debt—9.50%9.50%
David's Bridal, LLCSenior Secured First Lien Debt6.00%1.00%7.00%
David's Bridal, LLCSenior Secured First Lien Debt6.00%5.00%11.00%
Deluxe Entertainment Services, Inc.Senior Secured First Lien Debt6.00%1.50%7.50%
Deluxe Entertainment Services, Inc.Senior Secured Second Lien Debt7.00%2.50%9.50%
Hilliard, Martinez & Gonzales, LLPSenior Secured First Lien Debt—20.00%20.00%
Homer City Generation, L.P.Senior Secured First Lien Debt—15.00%15.00%
Independent Pet Partners Intermediate Holdings, LLCSenior Secured First Lien Debt—6.00%6.00%
Independent Pet Partners Intermediate Holdings, LLCSenior Secured First Lien Debt—8.25%8.25%
Independent Pet Partners Intermediate Holdings, LLCSenior Secured First Lien Debt0.19%6.00%6.19%
Jenny C Acquisition, Inc.Senior Secured First Lien Debt—12.25%12.25%
LAV Gear Holdings, Inc.Senior Secured First Lien Debt3.50%5.00%8.50%
Lift Brands, Inc.Senior Secured First Lien Debt—9.50%9.50%
Mimeo.com, Inc.Revolving Term Loan8.00%10.00%18.00%
Moss Holding CompanySenior Secured First Lien Debt7.50%0.50%8.00%
Patterson Medical Supply, Inc.Senior Secured Second Lien Debt1.00%10.50%11.50%
Premiere Global Services, Inc.Senior Secured Second Lien Debt0.50%10.00%10.50%
SIMR, LLCSenior Secured First Lien Debt—19.00%19.00%
Spinal USA, Inc. / Precision Medical Inc.Senior Secured First Lien Debt—9.70%9.70%
Spinal USA, Inc. / Precision Medical Inc.Senior Secured First Lien Debt9.65%1.00%10.65%
Vesta Holdings, LLCSenior Secured First Lien Debt7.00%4.00%11.00%
West Dermatology Management Holdings, LLCSenior Secured First Lien Debt7.00%0.75%7.75%
WPLM Acquisition Corp.Unsecured Note—15.00%15.00%
w.As of June 30, 2021, the index rate for $8,419 and $8,571 was 1 Month LIBOR and 3 Month LIBOR, respectively.
See accompanying notes to consolidated financial statements.
15

CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 20162020
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(p) 
Fair
Value(c)
Senior Secured First Lien Debt - 49.0%          
AbelConn, LLC / Atrenne Computing Solutions, LLC / Airco Industries, LLC, L+850, 1.00% LIBOR Floor, 7/17/2019(j) 3 Month LIBOR 
Aerospace & Defense

 $22,112
 $21,702
 $21,780
Adams Publishing Group, LLC, L+700, 1.00% LIBOR Floor, 11/3/2020(n) 3 Month LIBOR Media: Advertising, Printing & Publishing 3,892
 3,818
 3,833
American Clinical Solutions LLC, L+950, 1.00% LIBOR Floor, 6/11/2020 3 Month LIBOR Healthcare & Pharmaceuticals 9,034
 8,908
 8,492
American Media, Inc., L+750, 1.00% LIBOR Floor, 8/24/2020(n) 3 Month LIBOR Media: Advertising, Printing & Publishing 11,467
 11,150
 11,123
American Media, Inc., 0.50% Unfunded, 8/24/2020(e) None Media: Advertising, Printing & Publishing 505
 (15) (15)
American Media, Inc., 7.50%, 8/24/2020(e) None Media: Advertising, Printing & Publishing 206
 (6) (6)
American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021(n) 3 Month LIBOR Telecommunications 19,248
 17,475
 18,863
AMPORTS, Inc., L+500, 1.00% LIBOR Floor, 5/19/2020(j) 3 Month LIBOR Automotive 19,100
 18,743
 18,718
Blue Ribbon, LLC, L+400, 1.00% LIBOR Floor, 11/15/2021(i) 3 Month LIBOR Beverage, Food & Tobacco 9,975
 9,975
 9,972
CF Entertainment Inc., L+1100, 1.00% LIBOR Floor, 6/26/2020(n) 3 Month LIBOR Media: Diversified & Production 17,094
 17,057
 17,094
Dodge Data & Analytics, LLC / Skyline Data News and Analytics, LLC, L+875, 1.00% LIBOR Floor, 10/31/2019(n) 3 Month LIBOR Construction & Building 10,387
 10,241
 10,218
ECI Acquisition Holdings, Inc., L+625, 1.00% LIBOR Floor, 3/11/2019(n) 3 Month LIBOR High Tech Industries 8,517
 8,493
 8,517
Elemica, Inc., L+800, 1.00% LIBOR Floor, 7/7/2021(n) 1 Month LIBOR High Tech Industries 17,413
 17,005
 16,977
Elemica, Inc., 0.50% Unfunded, 7/7/2021(e) None High Tech Industries 2,500
 (57) (62)
EnTrans International, LLC, L+750, 1.00% LIBOR Floor, 6/4/2020 3 Month LIBOR Capital Equipment 13,594
 9,977
 10,331
F+W Media, Inc., L+950, 1.25% LIBOR Floor, 6/30/2019(n) 3 Month LIBOR Media: Diversified & Production 7,280
 7,092
 6,006
Forbes Media LLC, L+675, 1.00% LIBOR Floor, 9/12/2019(j) 1 Month LIBOR Media: Advertising, Printing & Publishing 15,000
 14,621
 14,400
Ignite Restaurant Group, Inc., L+700, 1.00% LIBOR Floor, 2/13/2019(n) 3 Month LIBOR Beverage, Food & Tobacco 10,482
 10,400
 10,167
Infinity Sales Group, LLC, L+1050, 1.00% LIBOR Floor, 11/21/2018(n) 1 Month LIBOR Services: Business 8,214
 7,550
 7,372
Infogroup Inc., L+550, 1.50% LIBOR Floor, 5/26/2018(n) 3 Month LIBOR Media: Advertising, Printing & Publishing 15,578
 15,277
 15,451
InterGen N.V., L+450, 1.00% LIBOR Floor, 6/12/2020(h)(i) 3 Month LIBOR Energy: Electricity 1,182
 1,156
 1,153
Intertain Group Ltd., L+650, 1.00% LIBOR Floor, 4/8/2022(h)(n) 3 Month LIBOR Hotel, Gaming & Leisure 1,765
 1,736
 1,780
Ipsen International GmbH, L+800, 1.00% LIBOR Floor, 9/30/2019(h)(j) 1 Month LIBOR Capital Equipment 1,422
 1,429
 1,429
Ipsen, Inc., L+700, 1.00% LIBOR Floor, 9/30/2019(j) 1 Month LIBOR Capital Equipment 8,095
 8,002
 8,035
ITC Service Group Acquisition LLC, L+950, 0.50% LIBOR Floor, 5/26/2021(j) 1 Month LIBOR High Tech Industries 11,250
 11,035
 11,081
KPC Health Care, Inc., L+925, 1.00% LIBOR Floor, 8/28/2020(n) 3 Month LIBOR Healthcare & Pharmaceuticals 7,544
 7,401
 7,809
Labvantage Solutions Inc., L+800, 1.00% LIBOR Floor, 12/29/2020(n) 3 Month LIBOR High Tech Industries 4,875
 4,829
 4,863
Labvantage Solutions Ltd., E+800, 1.00% EURIBOR Floor, 12/29/2020(h) 3 Month EURIBOR High Tech Industries €4,495
 5,005
 4,728
Lift Brands, Inc., L+800, 1.00% LIBOR Floor, 12/23/2019(n) 3 Month LIBOR Services: Consumer 9,548
 9,438
 9,477
Ministry Brands, LLC, L+500, 1.00% LIBOR Floor, 12/2/2022(e) 3 Month LIBOR Services: Business 9,994
 9,587
 9,894
Nathan's Famous Inc., 10.00%, 3/15/2020(h)(n) None Beverage, Food & Tobacco 6,000
 6,000
 6,540
Nextech Systems, LLC, L+725, 1.00% LIBOR Floor, 6/22/2021(j)(n) 1 Month LIBOR High Tech Industries 15,642
 15,062
 15,330
NWN Acquisition Holding Company LLC, L+1000, 1.00% LIBOR Floor, 10/16/2020(j) 3 Month LIBOR High Tech Industries 13,717
 13,357
 13,271
Pacific Coast Holding Investment LLC, L+970, 2.00% LIBOR Floor, 2/14/2017 1 Month LIBOR Healthcare & Pharmaceuticals 5,250
 5,242
 5,250
Petroflow Energy Corporation, L+800, 1.00% LIBOR Floor, 6/29/2019(q) 3 Month LIBOR Energy: Oil & Gas 4,895
 4,618
 4,601
Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
Senior Secured First Lien Debt - 139.3%   
1244311 B.C. LTD., L+500, 1.00% LIBOR Floor, 9/30/2025(s)3 Month LIBORChemicals, Plastics & Rubber$2,422 $2,293 $2,289 
1244311 B.C. LTD., L+500, 1.00% LIBOR Floor, 9/30/2025(s)(v)3 Month LIBORChemicals, Plastics & Rubber807 756 755 
Adams Publishing Group, LLC, L+700, 1.75% LIBOR Floor, 7/2/2023(n)(o)1 Month LIBORMedia: Advertising, Printing & Publishing12,318 12,243 12,041 
Adapt Laser Acquisition, Inc., L+800, 1.00% LIBOR Floor, 12/31/2023(n)3 Month LIBORCapital Equipment11,280 11,280 9,715 
Adapt Laser Acquisition, Inc., L+800, 1.00% LIBOR Floor, 12/31/20233 Month LIBORCapital Equipment2,000 2,000 1,722 
Aegis Toxicology Sciences Corp., L+550, 1.00% LIBOR Floor, 5/9/2025(n)3 Month LIBORHealthcare & Pharmaceuticals9,774 9,635 8,577 
AIS Holdco, LLC, L+500, 0.00% LIBOR Floor, 8/15/2025(n)3 Month LIBORBanking, Finance, Insurance & Real Estate5,243 5,194 4,955 
Alchemy US Holdco 1, LLC, L+550, 10/10/2025(n)1 Month LIBORConstruction & Building12,959 12,826 12,505 
Alert 360 Opco, Inc., L+600, 1.00% LIBOR Floor, 10/16/2025(n)1 Month LIBORServices: Consumer9,738 9,738 9,738 
Allen Media, LLC, L+550, 0.00% LIBOR Floor, 2/10/2027(n)(o)3 Month LIBORMedia: Diversified & Production24,809 24,809 24,747 
ALM Media, LLC, L+650, 1.00% LIBOR Floor, 11/25/2024(n)(o)3 Month LIBORMedia: Advertising, Printing & Publishing19,000 18,690 18,050 
AMCP Staffing Intermediate Holdings III, LLC, L+675, 1.50% LIBOR Floor, 9/24/2025(n)3 Month LIBORServices: Business10,813 10,765 10,273 
AMCP Staffing Intermediate Holdings III, LLC, L+675, 1.50% LIBOR Floor, 9/24/20253 Month LIBORServices: Business228 228 217 
AMCP Staffing Intermediate Holdings III, LLC, 0.50% Unfunded, 9/24/2025NoneServices: Business1,370 — (68)
American Clinical Solutions LLC, 7.00%, 12/31/2022(n)(s)NoneHealthcare & Pharmaceuticals3,500 3,427 3,124 
American Clinical Solutions LLC, 7.00%, 6/30/2021(n)(s)NoneHealthcare & Pharmaceuticals250 250 242 
American Consolidated Natural Resources, Inc., L+1300, 1.00% LIBOR Floor, 9/16/2025(n)(v)1 Month LIBORMetals & Mining780 551 754 
American Media, LLC, L+775, 1.50% LIBOR Floor, 12/31/2023(n)3 Month LIBORMedia: Advertising, Printing & Publishing11,077 10,894 10,952 
American Media, LLC, L+775, 1.50% LIBOR Floor, 12/31/2023(n)3 Month LIBORMedia: Advertising, Printing & Publishing1,702 1,677 1,683 
American Teleconferencing Services, Ltd., L+650, 1.00% LIBOR Floor, 12/8/2021(n)6 Month LIBORTelecommunications19,514 18,792 15,904 
Analogic Corp., L+525, 1.00% LIBOR Floor, 6/21/2024(n)(o)1 Month LIBORHealthcare & Pharmaceuticals4,950 4,885 4,851 
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024(n)(v)3 Month LIBORMedia: Diversified & Production13,815 13,647 13,642 
Anthem Sports & Entertainment Inc., L+950, 1.00% LIBOR Floor, 9/9/2024(n)3 Month LIBORMedia: Diversified & Production833 833 825 
Anthem Sports & Entertainment Inc., 0.50% Unfunded, 9/9/2024NoneMedia: Diversified & Production1,333 — (13)
APCO Holdings, LLC, L+550, 0.00% LIBOR Floor, 6/9/2025(n)1 Month LIBORBanking, Finance, Insurance & Real Estate9,436 9,368 8,935 
Appalachian Resource Company, LLC, L+500, 1.00% LIBOR Floor, 9/10/20231 Month LIBORMetals & Mining11,137 9,717 9,230 
Appalachian Resource Company, LLC, 0.00% Unfunded, 9/10/2023(p)NoneMetals & Mining2,500 — — 
Associated Asphalt Partners, LLC, L+525, 1.00% LIBOR Floor, 4/5/2024(n)(o)1 Month LIBORConstruction & Building14,522 14,107 13,306 
Avison Young (USA) Inc., L+500, 0.00% LIBOR Floor, 1/31/2026(h)(n)3 Month LIBORBanking, Finance, Insurance & Real Estate9,800 9,647 9,322 
BK Medical Holding Company, Inc., L+525, 1.00% LIBOR Floor, 6/22/2024(n)(o)1 Month LIBORHealthcare & Pharmaceuticals4,963 4,926 4,690 
Cadence Aerospace, LLC, L+850, 1.00% LIBOR Floor, 11/14/2023(n)(o)(v)3 Month LIBORAerospace & Defense37,832 37,343 35,751 
Cardinal US Holdings, Inc., L+500, 1.00% LIBOR Floor, 7/31/2023(n)3 Month LIBORServices: Business8,224 7,933 7,597 
CB URS Holdings Corp., L+575, 1.00% LIBOR Floor, 9/1/2024(n)6 Month LIBORTransportation: Cargo15,882 15,818 14,631 
Charming Charlie LLC, 20.00%, 4/24/2023(r)(s)NoneRetail662 657 350 
CHC Solutions Inc., 12.00%, 7/20/2023(o)(v)NoneHealthcare & Pharmaceuticals7,651 7,651 7,498 
See accompanying notes to consolidated financial statements.
16


CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 20162020
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(p) 
Fair
Value(c)
Plano Molding Company, LLC, L+700, 1.00% LIBOR Floor, 5/12/2021(n) 2 Month LIBOR Consumer Goods: Non-Durable 8,840
 8,772
 8,611
Rimini Street, Inc., 15.00%, 6/24/2020(m)(q) None High Tech Industries 19,822
 19,556
 19,426
Sequoia Healthcare Management, LLC, 16.00%, 7/17/2019(n)(q) None Healthcare & Pharmaceuticals 6,511
 6,405
 6,397
Shift PPC LLC, L+600, 1.00% LIBOR Floor, 12/22/2021 3 Month LIBOR High Tech Industries 9,500
 9,266
 9,265
SmartBear Software Inc., L+750, 1.00% LIBOR Floor, 12/30/2020(n) 3 Month LIBOR High Tech Industries 18,588
 18,271
 18,727
Southcross Holdings Borrower LP, 9.00%, 4/13/2023(q) None Energy: Oil & Gas 172
 151
 135
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 1/21/2020(n) 3 Month LIBOR Healthcare & Pharmaceuticals 12,281
 12,194
 12,158
Spinal USA, Inc. / Precision Medical Inc., L+950, 1.00% LIBOR Floor, 7/21/2020(q) 3 Month LIBOR Healthcare & Pharmaceuticals 128
 126
 127
Sprint Industrial Holdings, LLC, L+575, 1.25% LIBOR Floor, 5/14/2019(n) 3 Month LIBOR Energy: Oil & Gas 7,306
 6,849
 5,406
Studio Movie Grill Holdings, LLC, L+725, 1.00% LIBOR Floor, 9/30/2020(e)(n) 1 Month LIBOR Hotel, Gaming & Leisure 15,143
 15,004
 15,143
Telestream Holdings Corp., L+677, 1.00% LIBOR Floor, 1/15/2020(j)(n) 3 Month LIBOR High Tech Industries 7,154
 7,027
 7,011
Tenere Inc., L+1000, 1.00% LIBOR Floor, 12/23/2021 3 Month LIBOR Capital Equipment 32,000
 31,219
 31,199
Therapure Biopharma Inc., L+875, 0.50% LIBOR Floor, 12/1/2021(h) 1 Month LIBOR Healthcare & Pharmaceuticals 15,000
 14,925
 14,925
WD Wolverine Holdings, LLC, L+550, 1.00% LIBOR Floor, 10/17/2023(i) 1 Month LIBOR Healthcare & Pharmaceuticals 2,000
 1,960
 1,946
Worley Claims Services, LLC, L+800, 1.00% LIBOR Floor, 10/31/2020(n) 1 Month LIBOR Services: Business 20,115
 19,925
 20,015
Zywave Inc., L+500, 1.00% LIBOR Floor, 11/17/2022 3 Month LIBOR High Tech Industries 5,000
 4,951
 4,950
Total Senior Secured First Lien Debt      
 489,904
 489,913
Senior Secured Second Lien Debt - 43.4%      
  
  
ABG Intermediate Holdings 2 LLC, L+850, 1.00% LIBOR Floor, 5/27/2022(e)(m)(n) 3 Month LIBOR Retail 18,666
 18,365
 18,852
Access CIG, LLC, L+875, 1.00% LIBOR Floor, 10/17/2022(m) 3 Month LIBOR Services: Business 16,030
 15,460
 15,549
ALM Media, LLC, L+800, 1.00% LIBOR Floor, 7/30/2021(n) 3 Month LIBOR Media: Advertising, Printing & Publishing 10,344
 10,205
 9,568
American Residential Services LLC, L+800, 1.00% LIBOR Floor, 12/31/2021(n) 3 Month LIBOR Construction & Building 4,933
 4,889
 4,983
AmWINS Group, LLC, L+850, 1.00% LIBOR Floor, 9/4/2020(n) 1 Month LIBOR Banking, Finance, Insurance & Real Estate 3,825
 3,852
 3,878
Confie Seguros Holding II Co., L+900, 1.25% LIBOR Floor, 5/8/2019 1 Month LIBOR Banking, Finance, Insurance & Real Estate 13,827
 13,365
 13,758
Conisus, LLC, L+875, 1.00% LIBOR Floor, 6/23/2021 3 Month LIBOR Healthcare & Pharmaceuticals 11,750
 9,604
 9,517
Drew Marine Group, Inc., L+700, 1.00% LIBOR Floor, 5/19/2021(h) 3 Month LIBOR Chemicals, Plastics & Rubber 9,500
 9,460
 9,120
EISI LLC, L+850, 1.00% LIBOR Floor, 9/23/2020(m)(n) 3 Month LIBOR High Tech Industries 20,000
 19,761
 19,400
Elements Behavioral Health, Inc., L+1200, 1.00% LIBOR Floor, 2/11/2020(q) 3 Month LIBOR Healthcare & Pharmaceuticals 5,701
 5,668
 4,561
Emerald 3 Ltd., L+700, 1.00% LIBOR Floor, 5/16/2022(h)(n) 3 Month LIBOR Environmental Industries 3,000
 2,978
 2,595
Flexera Software LLC, L+700, 1.00% LIBOR Floor, 4/2/2021 1 Month LIBOR High Tech Industries 9,385
 9,128
 9,291
Genex Holdings, Inc., L+775, 1.00% LIBOR Floor, 5/30/2022(n) 1 Month LIBOR Services: Business 11,410
 11,331
 11,011
Global Tel*Link Corp., L+775, 1.25% LIBOR Floor, 11/23/2020 3 Month LIBOR Telecommunications 9,500
 9,488
 9,254
Infiltrator Water Technologies, LLC, L+875, 1.00% LIBOR Floor, 5/26/2023(n) 3 Month LIBOR Construction & Building 13,917
 13,732
 13,986
Institutional Shareholder Services Inc., L+850, 1.00% LIBOR Floor, 4/30/2022(i)(n) 2 Month LIBOR Services: Business 10,648
 10,534
 10,542
Mergermarket USA, Inc., L+650, 1.00% LIBOR Floor, 2/4/2022(n) 3 Month LIBOR Services: Business 3,380
 3,328
 3,304
Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023(e) 3 Month LIBOR Services: Business 5,488
 5,385
 5,406
Mississippi Sand, LLC, L+1000, 1.00% LIBOR Floor, 11/21/2019 3 Month LIBOR Metals & Mining 13,196
 10,899
 11,349
Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021(n)(o)(v)1 Month LIBORHotel, Gaming & Leisure25,472 25,117 19,900 
CircusTrix Holdings, LLC, L+550, 1.00% LIBOR Floor, 12/16/2021(n)(v)1 Month LIBORHotel, Gaming & Leisure2,585 2,585 2,020 
CircusTrix Holdings, LLC, 1.00% Unfunded, 12/16/2021NoneHotel, Gaming & Leisure2,898 — — 
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/20233 Month LIBORBeverage, Food & Tobacco1,020 980 858 
Country Fresh Holdings, LLC, 12.00%, 6/1/2022(v)NoneBeverage, Food & Tobacco738 713 722 
Country Fresh Holdings, LLC, L+500, 1.00% LIBOR Floor, 4/29/2023(n)3 Month LIBORBeverage, Food & Tobacco414 414 348 
Coyote Buyer, LLC, L+600, 1.00% LIBOR Floor, 2/6/2026(n)(o)3 Month LIBORChemicals, Plastics & Rubber34,738 34,453 34,564 
Coyote Buyer, LLC, L+800, 1.00% LIBOR Floor, 8/6/2026(o)3 Month LIBORChemicals, Plastics & Rubber6,250 6,128 6,250 
Coyote Buyer, LLC, 0.50% Unfunded, 2/6/2025NoneChemicals, Plastics & Rubber2,500 — (13)
David's Bridal, LLC, L+1000, 1.00% LIBOR Floor, 6/23/2023(v)3 Month LIBORRetail5,341 4,412 5,341 
David's Bridal, LLC, L+600, 1.00% LIBOR Floor, 6/30/2023(v)3 Month LIBORRetail745 648 745 
Deluxe Entertainment Services, Inc., L+650, 1.00% LIBOR Floor, 3/25/2024(n)(s)(v)3 Month LIBORMedia: Diversified & Production3,978 4,057 3,978 
DMT Solutions Global Corp., L+700, 0.00% LIBOR Floor, 7/2/2024(n)3 Month LIBORServices: Business17,500 17,167 16,844 
Eagle Family Foods Group LLC, L+650, 1.00% LIBOR Floor, 6/14/2024(n)3 Month LIBORBeverage, Food & Tobacco14,375 14,171 14,159 
Entertainment Studios P&A LLC, 6.30%, 5/18/2037(k)(n)NoneMedia: Diversified & Production13,990 13,889 12,871 
Entertainment Studios P&A LLC, 5.00%, 5/18/2037(k)NoneMedia: Diversified & Production— — 2,073 
EnTrans International, LLC, L+600, 0.00% LIBOR Floor, 11/1/2024(n)1 Month LIBORCapital Equipment26,250 26,065 25,233 
ES Chappaquiddick LLC, 10.00%, 5/18/2022(n)NoneMedia: Diversified & Production915 915 924 
Extreme Reach, Inc., L+750, 1.50% LIBOR Floor, 3/29/2024(n)(o)1 Month LIBORMedia: Diversified & Production20,402 20,233 20,096 
Extreme Reach, Inc., 0.50% Unfunded, 3/29/2024(n)NoneMedia: Diversified & Production1,744 — (26)
F+W Media, Inc., L+1000, 1.50% LIBOR Floor, 5/24/2022(r)(s)(v)1 Month LIBORMedia: Diversified & Production1,174 1,115 — 
Foundation Consumer Healthcare, LLC, L+575, 1.00% LIBOR Floor, 11/2/2023(n)(o)3 Month LIBORHealthcare & Pharmaceuticals43,350 43,127 43,350 
Foundation Consumer Healthcare, LLC, 0.50% Unfunded, 11/2/2023NoneHealthcare & Pharmaceuticals4,211 (15)— 
Genesis Healthcare, Inc., L+600, 0.50% LIBOR Floor, 3/6/2023(h)(n)1 Month LIBORHealthcare & Pharmaceuticals35,000 34,709 34,344 
Geo Parent Corp., L+525, 0.00% LIBOR Floor, 12/19/2025(n)1 Month LIBORServices: Business14,738 14,622 14,701 
Geon Performance Solutions, LLC, L+625, 1.63% LIBOR Floor, 10/25/2024(n)(o)1 Month LIBORChemicals, Plastics & Rubber22,190 21,893 21,524 
Geon Performance Solutions, LLC, 0.50% Unfunded, 10/25/2024NoneChemicals, Plastics & Rubber2,586 — (78)
Harland Clarke Holdings Corp., L+475, 1.00% LIBOR Floor, 11/3/2023(n)3 Month LIBORServices: Business12,337 12,305 11,021 
Healogics, Inc., L+425, 1.00% LIBOR Floor, 7/1/2021(n)3 Month LIBORHealthcare & Pharmaceuticals4,699 4,659 4,359 
Hilliard, Martinez & Gonzales, LLP, L+1800, 2.00% LIBOR Floor, 12/17/2022(n)(v)1 Month LIBORServices: Consumer17,248 17,137 17,485 
Homer City Generation, L.P., 15.00%, 4/5/2023(n)(v)NoneEnergy: Oil & Gas10,606 11,028 8,246 
Hoover Group, Inc., L+850, 1.25% LIBOR Floor, 10/1/2024(o)3 Month LIBORServices: Business5,660 5,637 5,668 
HUMC Holdco, LLC, 9.00%, 1/11/2021(n)NoneHealthcare & Pharmaceuticals10,000 9,985 9,925 
Hummel Station LLC, L+600, 1.00% LIBOR Floor, 10/27/2022(n)1 Month LIBOREnergy: Oil & Gas9,432 9,237 9,066 
Hyperion Materials & Technologies, Inc., L+550, 1.00% LIBOR Floor, 8/28/2026(n)3 Month LIBORChemicals, Plastics & Rubber9,900 9,729 9,269 
Independent Pet Partners Intermediate Holdings, LLC, 6.00%, 11/20/2023(n)(v)NoneRetail9,680 9,587 7,974 
See accompanying notes to consolidated financial statements.
17


CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 20162020
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(p) 
Fair
Value(c)
Mitchell International, Inc., L+750, 1.00% LIBOR Floor, 10/11/2021(m)(n) 1 Month LIBOR High Tech Industries 14,909
 14,476
 14,825
MSC.Software Corp., L+750, 1.00% LIBOR Floor, 6/1/2021(m) 3 Month LIBOR High Tech Industries 15,000
 14,832
 15,019
MWI Holdings, Inc., L+925, 1.00% LIBOR Floor, 12/28/2020(n) 3 Month LIBOR Construction & Building 10,000
 9,773
 9,950
Navex Global, Inc., L+875, 1.00% LIBOR Floor, 11/18/2022(m)(n) 12 Month LIBOR High Tech Industries 16,245
 16,031
 15,920
Onex TSG Holdings II Corp., L+850, 1.00% LIBOR Floor, 7/31/2023(n) 3 Month LIBOR Healthcare & Pharmaceuticals 12,249
 12,136
 12,065
Patterson Medical Supply, Inc., L+850, 1.00% LIBOR Floor, 8/28/2023(n) 2 Month LIBOR Healthcare & Pharmaceuticals 13,500
 13,378
 13,095
Pelican Products, Inc., L+825, 1.00% LIBOR Floor, 4/11/2021(m) 3 Month LIBOR Chemicals, Plastics & Rubber 3,469
 3,478
 3,396
PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023(n) 1 Month LIBOR Chemicals, Plastics & Rubber 15,000
 14,729
 14,737
PetVet Care Centers, LLC, L+850, 1.00% LIBOR Floor, 6/17/2021 3 Month LIBOR Healthcare & Pharmaceuticals 13,500
 13,097
 13,095
Pike Corp., L+850, 1.00% LIBOR Floor, 6/22/2022(n) 1 Month LIBOR Energy: Electricity 12,500
 12,354
 12,562
Premiere Global Services, Inc., L+950, 1.00% LIBOR Floor, 6/6/2022 3 Month LIBOR Telecommunications 3,000
 2,882
 2,895
PSC Industrial Holdings Corp., L+825, 1.00% LIBOR Floor, 12/5/2021(n) 3 Month LIBOR Services: Business 10,000
 9,842
 9,450
Securus Technologies Holdings, Inc., L+775, 1.25% LIBOR Floor, 4/30/2021 3 Month LIBOR Telecommunications 4,500
 4,479
 4,399
SMG, L+825, 1.00% LIBOR Floor, 2/27/2021(n) 3 Month LIBOR Hotel, Gaming & Leisure 6,142
 6,142
 6,126
Sterling Midco Holdings, Inc., L+775, 1.00% LIBOR Floor, 6/19/2023(n) 3 Month LIBOR Services: Business 10,462
 10,432
 10,226
STG-Fairway Acquisitions, Inc., L+925, 1.00% LIBOR Floor, 6/30/2023(n) 3 Month LIBOR Services: Business 10,000
 9,869
 9,400
Survey Sampling International, LLC, L+900, 1.00% LIBOR Floor, 12/16/2021(m) 3 Month LIBOR Services: Business 15,000
 14,763
 14,700
Telecommunications Management, LLC, L+800, 1.00% LIBOR Floor, 10/30/2020(n) 3 Month LIBOR Media: Broadcasting & Subscription 1,606
 1,573
 1,564
TexOak Petro Holdings LLC, 8.00%, 12/29/2019(q) None Energy: Oil & Gas 6,728
 1,549
 2,590
TMK Hawk Parent, Corp., L+750, 1.00% LIBOR Floor, 10/1/2022(n) 3 Month LIBOR Beverage, Food & Tobacco 15,000
 14,880
 14,925
TouchTunes Interactive Networks, Inc., L+825, 1.00% LIBOR Floor, 5/29/2022 3 Month LIBOR Hotel, Gaming & Leisure 6,000
 5,943
 5,925
U.S. Renal Care, Inc., L+800, 1.00% LIBOR Floor, 12/29/2023(n) 3 Month LIBOR Healthcare & Pharmaceuticals 10,000
 9,819
 8,900
Wand Intermediate I LP, L+725, 1.00% LIBOR Floor, 9/19/2022(n) 3 Month LIBOR Automotive 16,000
 15,881
 15,680
Winebow Holdings, Inc., L+750, 1.00% LIBOR Floor, 1/2/2022(n) 1 Month LIBOR Beverage, Food & Tobacco 12,823
 12,544
 12,054
Zywave Inc., L+900, 1.00% LIBOR Floor, 11/17/2023 3 Month LIBOR High Tech Industries 5,000
 4,926
 4,925
Total Senior Secured Second Lien Debt      
 437,240
 434,347
Collateralized Securities and Structured Products - Debt - 3.8%    
  
  
Deutsche Bank AG Frankfurt CRAFT 2013-1A Class Credit Linked Note, L+925, 4/17/2020(h) 3 Month LIBOR Diversified Financials 2,000
 2,022
 1,980
Deutsche Bank AG Frankfurt CRAFT 2013-1X Class Credit Linked Note, L+925, 4/17/2020(h) 3 Month LIBOR Diversified Financials 610
 616
 604
Deutsche Bank AG Frankfurt CRAFT 2014-1 Class Credit Linked Note, L+965, 5/15/2019(h) 3 Month LIBOR Diversified Financials 5,400
 5,400
 5,292
Deutsche Bank AG Frankfurt CRAFT 2015-2 Class Credit Linked Note, L+925, 1/16/2022(h) 3 Month LIBOR Diversified Financials 15,500
 15,500
 14,880
Great Lakes CLO 2014-1, Ltd. Class E Notes, L+525, 4/15/2025(g)(h) 3 Month LIBOR Diversified Financials 5,000
 4,615
 4,484
Ivy Hill Middle Market Credit Fund VII, Ltd. Class E Notes, L+565, 10/20/2025(g)(h) 3 Month LIBOR Diversified Financials 2,000
 1,879
 1,799
JFIN CLO 2014, Ltd. Class E Notes, L+500, 4/20/2025(g)(h) 3 Month LIBOR Diversified Financials 2,500
 2,345
 2,303
NXT Capital CLO 2014-1, LLC Class E Notes, L+550, 4/23/2026(g)(h) 3 Month LIBOR Diversified Financials 7,500
 7,094
 6,772
Total Collateralized Securities and Structured Products - Debt    
 39,471
 38,114
Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
Independent Pet Partners Intermediate Holdings, LLC, PRIME+500, 12/22/2022(n)PrimeRetail1,970 1,970 1,967 
Independent Pet Partners Intermediate Holdings, LLC, L+600, 0.00% LIBOR Floor, 12/22/2022(n)3 Month LIBORRetail252 252 252 
Infinity Sales Group, LLC, L+1050, 1.00% LIBOR Floor, 11/23/2022(n)1 Month LIBORServices: Business6,820 6,736 6,820 
InfoGroup Inc., L+500, 1.00% LIBOR Floor, 4/3/2023(n)(o)3 Month LIBORMedia: Advertising, Printing & Publishing15,594 15,586 14,678 
Instant Web, LLC, L+650, 1.00% LIBOR Floor, 12/15/2022(n)(o)1 Month LIBORMedia: Advertising, Printing & Publishing37,379 37,326 35,136 
Instant Web, LLC, 0.50% Unfunded, 12/15/2022NoneMedia: Advertising, Printing & Publishing2,704 — — 
Isagenix International, LLC, L+575, 1.00% LIBOR Floor, 6/14/2025(n)3 Month LIBORBeverage, Food & Tobacco13,002 12,910 9,361 
Island Medical Management Holdings, LLC, L+650, 1.00% LIBOR Floor, 9/1/2022(n)(o)3 Month LIBORHealthcare & Pharmaceuticals11,188 11,132 10,488 
Jenny C Acquisition, Inc., L+1050, 1.75% LIBOR Floor, 10/1/2024(n)(v)6 Month LIBORServices: Consumer11,089 11,018 9,993 
JP Intermediate B, LLC, L+550, 1.00% LIBOR Floor, 11/20/2025(n)3 Month LIBORBeverage, Food & Tobacco15,273 15,019 13,669 
KNB Holdings Corp., L+550, 1.00% LIBOR Floor, 4/26/2024(n)6 Month LIBORConsumer Goods: Durable8,073 7,966 6,741 
Labvantage Solutions Inc., L+750, 1.00% LIBOR Floor, 3/31/2021(n)(o)1 Month LIBORHigh Tech Industries2,646 2,646 2,646 
Labvantage Solutions Ltd., E+750, 1.00% EURIBOR Floor, 3/31/2021(h)1 Month EURIBORHigh Tech Industries€2,912 3,273 3,557 
LAV Gear Holdings, Inc., L+750, 1.00% LIBOR Floor, 10/31/2024(n)(o)(v)3 Month LIBORServices: Business25,338 24,940 24,072 
LAV Gear Holdings, Inc., L+750, 1.00% LIBOR Floor, 10/31/2024(n)(o)(v)3 Month LIBORServices: Business4,375 4,326 4,156 
LD Intermediate Holdings, Inc., L+588, 1.00% LIBOR Floor, 12/9/2022(n)3 Month LIBORHigh Tech Industries11,030 10,869 10,981 
LGC US Finco, LLC, L+650, 1.00% LIBOR Floor, 12/20/2025(n)1 Month LIBORCapital Equipment9,800 9,537 9,396 
Lift Brands, Inc., L+375, 0.50% LIBOR Floor, 6/29/2025(n)(o)(s)1 Month LIBORServices: Consumer23,642 23,642 23,642 
Lift Brands, Inc., 9.50%, 6/29/2025(n)(o)(s)(v)NoneServices: Consumer4,861 4,753 4,751 
Lift Brands, Inc., 6/29/2025(n)(o)(q)(s)NoneServices: Consumer5,296 4,685 4,687 
Longview Power, LLC, L+1000, 1.50% LIBOR Floor, 7/30/2025(s)3 Month LIBOREnergy: Oil & Gas2,355 631 2,414 
Mimeo.com, Inc., L+700, 1.00% LIBOR Floor, 12/21/2023(n)(q)3 Month LIBORServices: Business23,373 23,373 22,584 
Mimeo.com, Inc., L+1700, 1.00% LIBOR Floor, 12/21/2023(n)(v)3 Month LIBORServices: Business2,130 2,130 2,180 
Mimeo.com, Inc., 1.00% Unfunded, 12/21/2023NoneServices: Business1,000 — 24 
Moss Holding Company, L+700, 1.00% LIBOR Floor, 4/17/2024(n)(o)(v)3 Month LIBORServices: Business19,535 19,349 17,630 
Moss Holding Company, 7.00% Unfunded, 4/17/2024NoneServices: Business106 — — 
Moss Holding Company, 0.50% Unfunded, 4/17/2024NoneServices: Business2,126 — — 
NASCO Healthcare Inc., L+450, 1.00% LIBOR Floor, 6/30/2023(n)3 Month LIBORServices: Business13,189 13,189 13,189 
NewsCycle Solutions, Inc., L+700, 1.00% LIBOR Floor, 12/29/2022(n)(o)3 Month LIBORMedia: Advertising, Printing & Publishing12,186 12,098 12,079 
One Call Corp., L+525, 1.00% LIBOR Floor, 11/25/2022(n)3 Month LIBORHealthcare & Pharmaceuticals3,858 3,747 3,732 
Optio Rx, LLC, L+700, 0.00% LIBOR Floor, 6/28/2024(n)(o)1 Month LIBORHealthcare & Pharmaceuticals24,250 24,130 23,704 
Optio Rx, LLC, L+1000, 0.00% LIBOR Floor, 6/28/2024(o)1 Month LIBORHealthcare & Pharmaceuticals2,515 2,492 2,685 
Palmetto Solar, LLC, 12.00%, 12/12/2024(n)NoneHigh Tech Industries16,738 16,320 16,696 
Palmetto Solar, LLC, 0.75% Unfunded, 12/12/2021NoneHigh Tech Industries3,262 — (8)
PH Beauty Holdings III. Inc., L+500, 0.00% LIBOR Floor, 9/28/2025(n)3 Month LIBORConsumer Goods: Non-Durable9,775 9,152 9,189 
Pixelle Specialty Solutions LLC, L+650, 1.00% LIBOR Floor, 10/31/2024(n)1 Month LIBORForest Products & Paper21,686 21,368 21,686 
See accompanying notes to consolidated financial statements.
18



CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 20162020
(in thousands)
Portfolio Company(a) Index Rate(b) Industry 
Principal/
Par Amount/
Units(d)
 Cost(p) 
Fair
Value(c)
Collateralized Securities and Structured Products - Equity - 3.5%        
  
Anchorage Capital CLO 2012-1, Ltd. Subordinated Notes, 4.57% Estimated Yield, 1/13/2025(h) (f) Diversified Financials 4,000 2,882
 2,622
APIDOS CLO XVI Subordinated Notes, 3.28% Estimated Yield, 1/19/2025(h) (f) Diversified Financials 9,000 4,704
 3,099
CENT CLO 19 Ltd. Subordinated Notes, 8.68% Estimated Yield, 10/29/2025(h) (f) Diversified Financials 2,000 1,330
 1,182
Dryden XXIII Senior Loan Fund Subordinated Notes, 1.40% Estimated Yield, 7/17/2023(h) (f) Diversified Financials 9,250 4,726
 4,135
Galaxy XV CLO Ltd. Class A Subordinated Notes, 8.72% Estimated Yield, 4/15/2025(h) (f) Diversified Financials 4,000 2,424
 2,323
Ivy Hill Middle Market Credit Fund VII, Ltd. Subordinated Notes, 8.80% Estimated Yield, 10/20/2025(h) (f) Diversified Financials 2,000 1,654
 1,478
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan, 10.35% Estimated Yield, 2/2/2026(e)(h) (f) Diversified Financials 10,000 9,940
 9,773
Ivy Hill Middle Market Credit Fund IX, Ltd. Subordinated Notes, 14.59% Estimated Yield, 10/18/2025(h) (f) Diversified Financials 8,146 6,106
 6,239
Ivy Hill Middle Market Credit Fund X, Ltd. Subordinated Notes, 11.50% Estimated Yield, 7/24/2027(h) (f) Diversified Financials 4,760 3,947
 3,797
Total Collateralized Securities and Structured Products - Equity     37,713
 34,648
Unsecured Debt -  1.7%      
  
American Tire Distributors, Inc., 10.25%, 3/1/2022 None Automotive 5,000 4,871
 4,794
Flex Acquisition Company, Inc., L+700, 1.00% LIBOR Floor, 12/29/2017 1 Month LIBOR Containers, Packaging & Glass 3,833 3,814
 3,845
Radio One, Inc., 9.25%, 2/15/2020 None Media: Broadcasting & Subscription 9,000 8,605
 8,212
Total Unsecured Debt     17,290
 16,851
Equity - 0.5%        
Mooregate ITC Acquisition, LLC, Class A Units(o) 
 High Tech Industries 500 Units 563
 538
NS NWN Acquisition, LLC(o) 
 High Tech Industries 346 Units 393
 337
NSG Co-Invest (Bermuda), LP(h)(o) 
 Consumer Goods: Durable 1,575 Units 1,000
 1,000
Southcross Holdings GP, LLC, Units(o) 
 Energy: Oil & Gas 188 Units —
 —
Southcross Holdings LP, Class A-II Units(o) 
 Energy: Oil & Gas 188 Units 75
 71
Speed Commerce Investment Part, LLC(o) 
 High Tech Industries 629 Units 2,640
 3,000
Tenere Inc. Warrant(o) 
 Capital Equipment N/A 161
 161
TexOak Petro Holdings, LLC(o) 
 Energy: Oil & Gas 60,000 Units —
 —
Total Equity     4,832
 5,107
Short Term Investments - 7.1%(k)        
First American Treasury Obligations Fund, Class Z Shares, 0.39%(l)
     70,498
 70,498
Total Short Term Investments     70,498
 70,498
TOTAL INVESTMENTS - 109.0%     $1,096,948
 1,089,478
LIABILITIES IN EXCESS OF OTHER ASSETS - (9.0%)       (89,715)
NET ASSETS - 100%       $999,763

Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
Plano Molding Company, LLC, L+900, 1.00% LIBOR Floor, 5/12/2022(n)(v)3 Month LIBORConsumer Goods: Non-Durable5,986 5,975 5,836 
Plano Molding Company, LLC, L+900, 1.00% LIBOR Floor, 5/11/2022(n)(v)3 Month LIBORConsumer Goods: Non-Durable731 725 732 
Polymer Additives, Inc., L+600, 0.00% LIBOR Floor, 7/31/2025(n)3 Month LIBORChemicals, Plastics & Rubber19,600 19,313 16,497 
Polymer Process Holdings, Inc., L+600, 0.00% LIBOR Floor, 5/1/2026(n)1 Month LIBORChemicals, Plastics & Rubber24,625 24,271 24,471 
Securus Technologies Holdings, Inc., L+450, 1.00% LIBOR Floor, 11/1/2024(n)6 Month LIBORTelecommunications3,949 3,039 3,949 
SEK Holding Co LLC, L+1200, 1.00% LIBOR Floor, 3/14/2022(n)(v)1 Month LIBORBanking, Finance, Insurance & Real Estate16,227 16,068 15,590 
Sequoia Healthcare Management, LLC, 12.75%, 8/21/2023(n)(o)(r)NoneHealthcare & Pharmaceuticals8,525 8,457 6,905 
SIMR, LLC, L+1700, 2.00% LIBOR Floor, 9/7/2023(n)(s)(v)1 Month LIBORHealthcare & Pharmaceuticals16,154 15,975 13,347 
Smart & Final Inc., L+675, 0.00% LIBOR Floor, 6/20/2025(n)1 Month LIBORRetail7,805 7,227 7,888 
Software Luxembourg Acquisitions S.À.R.L., L+750, 1.00% LIBOR Floor, 4/27/2025(h)(o)3 Month LIBORHigh Tech Industries3,011 2,905 3,015 
Software Luxembourg Acquisitions S.À.R.L., L+750, 1.00% LIBOR Floor, 12/27/2024(h)(o)1 Month LIBORHigh Tech Industries807 783 815 
Sorenson Communications, LLC, L+650, 0.00% LIBOR Floor, 4/30/2024(n)3 Month LIBORTelecommunications10,322 10,066 10,348 
Spinal USA, Inc. / Precision Medical Inc., L+950, 10/1/2021(n)12 Month LIBORHealthcare & Pharmaceuticals12,562 12,486 11,965 
Spinal USA, Inc. / Precision Medical Inc., L+950, 10/1/2021(n)(v)12 Month LIBORHealthcare & Pharmaceuticals1,116 1,104 1,109 
Spinal USA, Inc. / Precision Medical Inc., L+950, 10/1/2021(n)(v)12 Month LIBORHealthcare & Pharmaceuticals603 493 574 
Stats Intermediate Holdings, LLC, L+525, 0.00% LIBOR Floor, 7/12/2026(n)3 Month LIBORHigh Tech Industries9,900 9,719 9,850 
Tenere Inc., L+850, 1.00% LIBOR Floor, 5/5/2025(n)(o)3 Month LIBORCapital Equipment18,080 18,020 18,080 
Tensar Corp., L+675, 1.00% LIBOR Floor, 11/20/2025(n)3 Month LIBORChemicals, Plastics & Rubber5,000 4,878 4,975 
The Pasha Group, L+800, 1.00% LIBOR Floor, 1/26/2023(n)(o)2 Month LIBORTransportation: Cargo4,511 4,447 4,370 
The Pay-O-Matic Corp., L+900, 1.00% LIBOR Floor, 10/29/2021(j)(n)3 Month LIBORServices: Consumer7,312 7,304 7,312 
Volta Charging, LLC, 12.00%, 6/19/2024(n)NoneMedia: Diversified & Production15,000 15,000 16,013 
Volta Charging, LLC, 12.00%, 6/19/2024(n)NoneMedia: Diversified & Production12,000 11,978 12,810 
West Dermatology Management Holdings, LLC, L+600, 1.00% LIBOR Floor, 2/11/2025(n)(o)(v)3 Month LIBORHealthcare & Pharmaceuticals9,455 9,384 9,006 
West Dermatology Management Holdings, LLC, L+600, 1.00% LIBOR Floor, 2/11/2025(n)1 Month LIBORHealthcare & Pharmaceuticals1,657 1,645 1,579 
West Dermatology Management Holdings, LLC, L+750, 1.00% LIBOR Floor, 2/11/20253 Month LIBORHealthcare & Pharmaceuticals1,185 1,182 1,170 
West Dermatology Management Holdings, LLC, 0.75% Unfunded, 2/11/2022NoneHealthcare & Pharmaceuticals7,655 (26)(54)
Williams Industrial Services Group, Inc, L+900, 1.00% LIBOR Floor, 12/16/2025(o)1 Month LIBORServices: Business10,000 10,000 10,000 
Williams Industrial Services Group, Inc, 0.50% Unfunded, 6/16/2022NoneServices: Business5,000 — — 
Winebow Holdings, Inc., L+375, 1.00% LIBOR Floor, 7/1/2021(n)(o)1 Month LIBORBeverage, Food & Tobacco5,864 5,669 5,483 
Wok Holdings Inc., L+625, 0.00% LIBOR Floor, 3/1/2026(n)1 Month LIBORBeverage, Food & Tobacco12,773 12,630 12,325 
Total Senior Secured First Lien Debt  1,266,564 1,223,268 
Senior Secured Second Lien Debt - 17.2%
Access CIG, LLC, L+775, 0.00% LIBOR Floor, 2/27/2026(n)(o)3 Month LIBORServices: Business17,250 17,139 16,840 
Carestream Health, Inc., L+1250, 1.00% LIBOR Floor, 8/8/2023(n)(o)(v)3 Month LIBORHealthcare & Pharmaceuticals11,499 11,499 11,068 
Country Fresh Holdings, LLC, L+850, 1.00% LIBOR Floor, 4/29/2024(n)(v)3 Month LIBORBeverage, Food & Tobacco2,239 2,239 1,573 
Dayton Superior Corp., L+700, 2.00% LIBOR Floor, 12/4/2024(n)3 Month LIBORConstruction & Building1,492 1,492 1,492 
See accompanying notes to consolidated financial statements.
19


CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 20162020
(in thousands)
Counterparty Instrument Maturity Date Notional Amount (d) Cost(p) Fair Value(c)
Derivative Asset - 0.0%          
Credit Default Swap          
JPMorgan Chase Bank, N.A.
 Deutsche Bank AG Credit Default Swap 3/20/2017 €22,000
 $229
 $46
Derivative Liability - (1.5%)          
Total Return Swap          
Citibank, N.A. See Note 7 2/18/2017 $407,847
 N/A
 $(15,402)

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. The Company does not control and is not an affiliate of any of the portfolio companies in its investment portfolio. Unless specifically identified in note q. below, investments do not contain a PIK interest provision.
b.The 1, 2, 3 and 12 month LIBOR rates were 0.77%, 0.82%, 1.00% and 1.69%, respectively, as of December 31, 2016.  The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of December 31, 2016, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to December 31, 2016. The 3 month EURIBOR rate was (0.34%) as of December 31, 2016.
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.Denominated in U.S. dollars unless otherwise noted.
e.As discussed in Note 11, the Company was committed, upon the satisfaction of certain conditions, to fund an additional $1,119, $711, $2,500, $1,111, $5,274 and $4,127 as of December 31, 2016 to ABG Intermediate Holdings 2 LLC, American Media, Inc., Elemica Holdings, Inc., Ivy Hill Middle Market Credit Fund VIII, Ltd., Ministry Brands, LLC and Studio Movie Grill Holdings, LLC, respectively. As of March 9, 2017, the Company was committed, upon the satisfaction of certain conditions, to fund an additional $1,119, $415, $10,000, $2,500, $1,111 and $4,127 to ABG Intermediate Holdings 2 LLC, American Media, Inc., CF Entertainment Inc., Elemica Holdings, Inc., Ivy Hill Middle Market Credit Fund VIII, Ltd. and Studio Movie Grill Holdings, LLC, respectively.
f.The CLO subordinated notes are considered equity positions in the CLO vehicles and are not rated. Equity investments are entitled to recurring distributions, which are generally equal to the remaining cash flow of the payments made by the underlying vehicle's securities less contractual payments to debt holders and expenses. The estimated yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted, and the estimated yield may not ultimately be realized.
g.Great Lakes CLO 2014-1 Class E Notes, Ivy Hill Middle Market Credit Fund VII Class E Notes and NXT Capital CLO 2014-1 Class E Notes were rated Ba2 on Moody's credit scale as of December 31, 2016. JFIN CLO 2014 Class E Notes were rated BB on S&P's credit scale as of December 31, 2016.
h.The investment 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, 2016, 90.5% of the Company’s total assets represented qualifying assets. In addition, as described in Note 7, the Company calculates its compliance with the qualifying asset test on a “look through” basis by treating each loan underlying the total return swap as either a qualifying asset or non-qualifying asset based on whether the obligor is an eligible portfolio company. On this basis, 89.1% of the Company’s total assets represented qualifying assets as of December 31, 2016.
i.Position or a portion thereof unsettled as of December 31, 2016.
j.In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company may be entitled to receive additional amounts as a result of an arrangement between the Company and other lenders in the syndication in exchange for lower payment priority.
k.Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less.
l.7-day effective yield as of December 31, 2016.
m.Investment or a portion thereof was pledged as collateral supporting the amounts outstanding, if any, under the revolving credit facility with East West Bank as of December 31, 2016 (see Note 8).
n.Investment or a portion thereof held within 34th Street and was pledged as collateral supporting the amounts outstanding under the credit facility with JPM as of December 31, 2016 (see Note 8).
o.Non-income producing security.
p.Represents amortized cost for debt investments, cost for equity investments and premium paid for derivatives.

Portfolio Company(a)Index Rate(b)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
Deluxe Entertainment Services, Inc., L+850, 1.00% LIBOR Floor, 9/25/2024(n)(r)(s)(v)3 Month LIBORMedia: Diversified & Production10,271 10,017 — 
Global Tel*Link Corp., L+825, 0.00% LIBOR Floor, 11/29/2026(n)(o)1 Month LIBORTelecommunications11,500 11,333 11,385 
LSCS Holdings, Inc., L+825, 0.00% LIBOR Floor, 3/16/2026(n)6 Month LIBORServices: Business11,891 11,684 10,999 
Medical Solutions Holdings, Inc., L+838, 1.00% LIBOR Floor, 6/16/2025(n)6 Month LIBORHealthcare & Pharmaceuticals10,000 9,895 9,250 
MedPlast Holdings, Inc., L+775, 0.00% LIBOR Floor, 7/2/2026(n)1 Month LIBORHealthcare & Pharmaceuticals6,750 6,697 6,134 
Ministry Brands, LLC, L+925, 1.00% LIBOR Floor, 6/2/2023(n)(o)2 Month LIBORServices: Business7,000 6,973 6,965 
Niacet Corp., E+875, 1.00% EURIBOR Floor, 8/1/2024(h)1 Month EURIBORChemicals, Plastics & Rubber€6,263 6,708 7,651 
Patterson Medical Supply, Inc., L+1050, 1.00% LIBOR Floor, 8/28/2023(n)(v)3 Month LIBORHealthcare & Pharmaceuticals14,536 14,472 13,972 
PetroChoice Holdings, Inc., L+875, 1.00% LIBOR Floor, 8/21/2023(n)3 Month LIBORChemicals, Plastics & Rubber15,000 14,282 13,500 
Premiere Global Services, Inc., L+950, 1.00% LIBOR Floor, 6/6/2024(n)(v)3 Month LIBORTelecommunications3,415 3,339 2,305 
Securus Technologies Holdings, Inc., L+825, 1.00% LIBOR Floor, 11/1/2025(n)6 Month LIBORTelecommunications2,942 2,920 2,747 
TMK Hawk Parent, Corp., L+800, 1.00% LIBOR Floor, 8/28/2025(n)1 Month LIBORServices: Business13,393 13,158 9,860 
Winebow Holdings, Inc., L+750, 1.00% LIBOR Floor, 1/2/2022(n)1 Month LIBORBeverage, Food & Tobacco12,823 12,747 11,477 
Zest Acquisition Corp., L+750, 1.00% LIBOR Floor, 3/14/2026(n)(o)1 Month LIBORHealthcare & Pharmaceuticals15,000 14,886 14,288 
Total Senior Secured Second Lien Debt  171,480 151,506 
Collateralized Securities and Structured Products - Equity - 1.4%
APIDOS CLO XVI Subordinated Notes, 0.00% Estimated Yield, 1/19/2025(h)(g)Diversified Financials9,000 3,019 1,372 
CENT CLO 19 Ltd. Subordinated Notes, 0.00% Estimated Yield, 10/29/2025(h)
(g)Diversified Financials2,000 1,161 214 
Galaxy XV CLO Ltd. Class A Subordinated Notes, 5.76% Estimated Yield, 4/15/2025(h)(g)Diversified Financials4,000 2,007 1,617 
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan, 11.84% Estimated Yield, 2/2/2026(h)(g)Diversified Financials10,000 9,118 8,928 
Total Collateralized Securities and Structured Products - Equity  15,305 12,131 
Unsecured Debt - 0.6%
WPLM Acquisition Corp., 15.00%, 11/24/2025(v)NoneMedia: Advertising, Printing & Publishing5,752 5,668 5,464 
Total Unsecured Debt  5,668 5,464 
Equity - 11.8%
1244301 B.C. LTD., Common Shares(p)(s)Chemicals, Plastics & Rubber807,268 Units— — 
ACNR Holdings, Inc., Common Stock(p)Metals & Mining6,018 Units90 45 
ACNR Holdings, Inc., Preferred Stock(p)Metals & Mining1,890 Units26 118 
Alert 360 Topco, Inc., Common Stock(p)Services: Consumer465,053 Units2,883 2,883 
American Clinical Solutions LLC, Class A Membership Interests(p)(s)Healthcare & Pharmaceuticals6,030,384 Units1,658 663 
Anthem Sports and Entertainment Inc., Class A Preferred Stock Warrants(p)Media: Diversified & Production769 Units205 138 
Anthem Sports and Entertainment Inc., Class B Preferred Stock Warrants(p)Media: Diversified & Production135 Units— — 
Anthem Sports and Entertainment Inc., Common Stock Warrants(p)Media: Diversified & Production2,508 Units— — 
ARC Financial, LLC, Membership Interests (25% ownership)(p)(s)Metals & MiningN/A— — 
Ascent Resources - Marcellus, LLC, Membership Units(p)Energy: Oil & Gas511,255 Units1,642 419 
Ascent Resources - Marcellus, LLC, Warrants(p)Energy: Oil & Gas132,367 Units13 3 
See accompanying notes to consolidated financial statements.
20


CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 20162020
(in thousands)
q.For the year ended December 31, 2016, the following investments contain a PIK interest provision whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities:
    Interest Rate Interest Amount
Portfolio Company Investment Type Cash PIK All-in-Rate Cash PIK Total
Elements Behavioral Health, Inc. Senior Secured Second Lien Debt — 13.00% 13.00% $—
 $700
 $700
Petroflow Energy Corp. Senior Secured First Lien Debt 3.00% 6.00% 9.00% $14
 $99
 $113
Rimini Street, Inc. Senior Secured First Lien Debt 12.00% 3.00% 15.00% $1,286
 $164
 $1,450
Sequoia Healthcare Management, LLC Senior Secured First Lien Debt 12.00% 4.00% 16.00% $206
 $68
 $274
Smile Brands Group, Inc.(r) Senior Secured First Lien Debt 7.50% 1.50% 9.00% $187
 $34
 $221
Southcross Holdings Borrower LP(s) Senior Secured First Lien Debt 3.50% 5.50% 9.00% $2
 $6
 $8
Spinal USA, Inc. / Precision Medical Inc. Senior Secured First Lien Debt — 10.50% 10.50% $—
 $3
 $3
TexOak Petro Holdings LLC Senior Secured Second Lien Debt — 8.00% 8.00% $—
 $181
 $181
r.Outstanding principal and accrued interest of the underlying loan was fully repaid on August 17, 2016.
s.Prior to December 31, 2016, the underlying loan was assigned to the Company and removed from the TRS.

Portfolio Company(a)IndustryPrincipal/
Par Amount/
Units(e)		Cost(d)Fair
Value(c)
BCP Great Lakes Fund LP, Partnership Interests (11.4% ownership)(h)(s)Diversified FinancialsN/A12,865 12,611 
Carestream Health Holdings, Inc., Warrants(p)Healthcare & Pharmaceuticals233 Units565 590 
CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend(u)Healthcare & Pharmaceuticals2,727,273 Units5,471 6,927 
CION SOF Funding, LLC, Membership Interests (87.5% ownership)(h)(t)Diversified FinancialsN/A15,539 12,472 
Conisus Holdings, Inc., Series B Preferred Stock, 12% Dividend(s)(u)Healthcare & Pharmaceuticals12,677,833 Units15,143 16,481 
Conisus Holdings, Inc., Common Stock(p)(s)Healthcare & Pharmaceuticals4,914,556 Units200 12,401 
Country Fresh Holdings, LLC, Membership Units(p)Beverage, Food & Tobacco2,985 Units5,249 — 
Dayton HoldCo, LLC, Membership Units(p)Construction & Building37,264 Units4,136 7,350 
DBI Investors, Inc., Series A1 Preferred Stock(p)Retail20,000 Units802 — 
DBI Investors, Inc., Series A Preferred Stock(p)Retail1,396 Units140 — 
DBI Investors, Inc., Series B Preferred Stock(p)Retail4,183 Units410 — 
DBI Investors, Inc., Common Stock(p)Retail39,423 Units— — 
DBI Investors, Inc., Reallocation Rights(p)Retail7,500 Units— — 
DESG Holdings, Inc., Common Stock(i)(p)(s)Media: Diversified & Production1,268,143 Units13,675 — 
HDNet Holdco LLC, Preferred Unit Call Option(p)Media: Diversified & Production1 Unit— — 
Independent Pet Partners Intermediate Holdings, LLC, Class A Preferred Units(p)Retail1,000,000 Units1,000 — 
Independent Pet Partners Intermediate Holdings, LLC, Class B-2 Preferred Units(p)Retail2,632,771 Units2,133 2,145 
Independent Pet Partners Intermediate Holdings, LLC, Class C Preferred Units(p)Retail2,632,771 Units2,633 2,633 
Independent Pet Partners Intermediate Holdings, LLC, Warrants(p)Retail155,880 Units— — 
Longview Intermediate Holdings C, LLC, Membership Units(p)(s)Energy: Oil & Gas589,487 Units2,524 7,988 
Mooregate ITC Acquisition, LLC, Class A Units(p)High Tech Industries500 Units563 96 
Mount Logan Capital Inc., Common Stock(h)(s)Banking, Finance, Insurance & Real Estate1,075,557 Units3,534 2,409 
NS NWN Acquisition, LLC, Voting Units(p)High Tech Industries346 Units393 929 
NS NWN Acquisition, LLC, Class A Preferred Units(p)High Tech Industries111 Units110 332 
NSG Co-Invest (Bermuda) LP, Partnership Interests(h)(p)Consumer Goods: Durable1,575 Units1,000 676 
Palmetto Clean Technology, Inc., Warrants(p)High Tech Industries693,387 Units472 506 
Phillips Pet Holding Corp., Common Stock(p)Retail235 Units13 17 
SIMR Parent, LLC, Class B Common Units(p)(s)Healthcare & Pharmaceuticals12,283,163 Units8,002 — 
Software Luxembourg Holding S.A., Class A Common Stock(h)(p)High Tech Industries28,202 Units4,536 5,516 
Software Luxembourg Holding S.A., Class B Common Stock(h)(p)High Tech Industries2,388 Units384 688 
Software Luxembourg Holding S.A., Class A Warrants(h)(p)High Tech Industries3,512 Units117 — 
Software Luxembourg Holding S.A., Class B Warrants(h)(p)High Tech Industries7,023 Units220 — 
Snap Fitness Holdings, Inc., Class A Stock(p)(s)Services: Consumer9,858 Units3,078 3,389 
Snap Fitness Holdings, Inc., Warrants(p)(s)Services: Consumer3,996 Units1,247 1,374 
Spinal USA, Inc. / Precision Medical Inc., Warrants(p)Healthcare & Pharmaceuticals14,181,915 Units5,806 — 
Tenere Inc., Warrants(p)Capital EquipmentN/A161 1,606 
Total Equity118,638 103,405 
Short Term Investments - 8.4%(l)
First American Treasury Obligations Fund, Class Z Shares, 0.03% (m)73,597 73,597 
Total Short Term Investments73,597 73,597 
See accompanying notes to consolidated financial statements.
21

CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 2020
(in thousands)
Cost(d)Fair
Value(c)
TOTAL INVESTMENTS - 178.7%$1,651,252 1,569,371 
LIABILITIES IN EXCESS OF OTHER ASSETS - (78.7%) (691,115)
NET ASSETS - 100% $878,256 
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 v. below, investments do not contain a PIK interest provision.
b.The 1, 2, 3, 6 and 12 month LIBOR rates were 0.14%, 0.19%, 0.24%, 0.26% and 0.34%, respectively, as of December 31, 2020.  The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of December 31, 2020, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to December 31, 2020. The 1 month EURIBOR rate was (0.59%) as of December 31, 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.Fair value determined using level 1 inputs.
g.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.
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, 2020, 93.4% of the Company’s total assets represented qualifying assets.
i.Position or a portion thereof unsettled as of December 31, 2020.
j.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.
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 residual amounts.
l.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.
m.7-day effective yield as of December 31, 2020.
n.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, 2020 (see Note 8).
o.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, 2020 (see Note 8).
p.Non-income producing security.
q.The ultimate interest earned on this loan will be determined based on the portfolio company’s EBITDA at a specified trigger event.
r.Investment or a portion thereof was on non-accrual status as of December 31, 2020.
See accompanying notes to consolidated financial statements
22

CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 2020
(in thousands)
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 2020, along with transactions during the year ended December 31, 2020 in these affiliated investments, were as follows:
Year Ended December 31, 2020Year Ended December 31, 2020
Non-Controlled, Affiliated InvestmentsFair Value
at December
31, 2019		Gross
Additions
(Cost)(1)		Gross
Reductions
(Cost)(2)		Net
Unrealized
Gain (Loss)		Fair Value
at December
31, 2020		Net Realized
Gain (Loss)		Interest
Income(3)		Dividend
Income
    1244301 B.C. LTD.
        First Lien Term Loan A$— $2,293 $— $(4)$2,289 $— $42 $— 
        First Lien Term Loan B— 757 — (2)755 — 15 — 
        Common Shares— — — — — — — — 
    American Clinical Solutions LLC
        Tranche I Term Loan3,395 32 — (303)3,124 — 282 — 
        First Amendment Tranche I Term Loan— 250 — (8)242 — 13 — 
        Class A Membership Interests— 1,658 — (995)663 — — — 
    ARC Financial, LLC
        Membership Interests— — — — — — — — 
    BCP Great Lakes Fund LP
        Membership Interests14,238 2,195 (3,538)(284)12,611 — — 1,039 
    Charming Charlie, LLC
        First Lien Term Loan B1— — — — — — — — 
        First Lien Term Loan B2— — — — — — (1)— 
        Vendor Payment Financing Facility472 — (97)(25)350 — 7 — 
    Conisus Holdings, Inc.
        Series B Preferred Stock13,270 1,928 — 1,283 16,481 — — 1,928 
        Common Stock1,426 — — 10,975 12,401 — — — 
    DESG Holdings, Inc.
        Bridge Loan— 4,256 (4,256)— — — 600 — 
        First Lien Term Loan28,978 844 (20,443)(5,401)3,978 — 4,278 — 
        Second Lien Term Loan9,717 342 — (10,059)— — 784 — 
        Common Stock14,763 13 — (14,776)— — — — 
    F+W Media, Inc.
        First Lien Term Loan B-1— — (11)11 — — 1 — 
    Lift Brands, Inc.
        Term Loan A— 23,642 — — 23,642 — 519 — 
        Term Loan B— 4,753 — (2)4,751 — 236 — 
        Term Loan C— 4,685 — 2 4,687 — 64 — 
    Longview Power, LLC
        First Lien Term Loan— 634 (2)1,782 2,414 — 169 — 
    Longview Intermediate Holdings C, LLC
        Membership Units— 2,524 — 5,464 7,988 — — — 
    Mount Logan Capital Inc.
        Common Stock2,505 199 — (295)2,409 — — 45 
    Petroflow Energy Corp.
        First Lien Term Loan10 — (223)213 — (211)— — 
    SIMR, LLC
        First Lien Term Loan14,205 1,121 — (1,979)13,347 — 2,956 — 
    SIMR Parent, LLC
        Class B Membership Units3,980 — — (3,980)— — — — 
    Snap Fitness Holdings, Inc.
        Class A Stock— 3,078 — 311 3,389 — — — 
        Warrants— 1,247 — 127 1,374 — — — 
    Totals$106,959 $56,451 $(28,570)$(17,945)$116,895 $(211)$9,965 $3,012 
(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.
23

CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 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 2020, along with transactions during the year ended December 31, 2020 in these controlled investments, were as follows:
Year Ended December 31, 2020Year Ended December 31, 2020
Controlled InvestmentsFair Value at
December 31, 2019		Gross
Additions
(Cost)(1)		Gross
Reductions
(Cost)(2)		Net 
Unrealized
Gain (Loss)		Fair Value at
December 31, 2020		Net Realized
Gain (Loss)		Interest
Income(3)		Dividend Income
    CION SOF Funding, LLC
        Membership Interests$31,265 $— $(15,750)$(3,043)$12,472 $— $— $3,518 
    Totals$31,265 $— $(15,750)$(3,043)$12,472 $— $— $3,518 
(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.
(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.
u.For the year ended December 31, 2020, non-cash dividend income of $1,928 and $332 was recorded on the Company's investment in Conisus Holdings, Inc. and CHC Medical Partners, Inc., respectively.
See accompanying notes to consolidated financial statements.
24

CĪON Investment Corporation
Consolidated Schedule of Investments
December 31, 2020
(in thousands)
v.As of December 31, 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 CompanyInvestment TypeCashPIKAll-in-Rate
1244311 B.C. LTD.Senior Secured First Lien Debt—6.00%6.00%
American Consolidated Natural Resources, Inc.Senior Secured First Lien Debt11.00%3.00%14.00%
Anthem Sports & Entertainment Inc.Senior Secured First Lien Debt7.75%2.75%10.50%
Cadence Aerospace, LLCSenior Secured First Lien Debt4.25%5.25%9.50%
Carestream Health, Inc.Senior Secured Second Lien Debt5.50%8.00%13.50%
CHC Solutions Inc.Senior Secured First Lien Debt8.00%4.00%12.00%
CircusTrix Holdings, LLCSenior Secured First Lien Debt—6.50%6.50%
Country Fresh Holdings, LLCSenior Secured First Lien Debt8.00%4.00%12.00%
Country Fresh Holdings, LLCSenior Secured Second Lien Debt—9.50%9.50%
David's Bridal, LLCSenior Secured First Lien Debt6.00%5.00%11.00%
David's Bridal, LLCSenior Secured First Lien Debt6.00%1.00%7.00%
Deluxe Entertainment Services, Inc.Senior Secured First Lien Debt6.00%1.50%7.50%
Deluxe Entertainment Services, Inc.Senior Secured Second Lien Debt7.00%2.50%9.50%
F+W Media, Inc.Senior Secured First Lien Debt—11.50%11.50%
Hilliard, Martinez & Gonzales, LLPSenior Secured First Lien Debt—20.00%20.00%
Homer City Generation, L.P.Senior Secured First Lien Debt—15.00%15.00%
Independent Pet Partners Intermediate Holdings, LLCSenior Secured First Lien Debt—6.00%6.00%
Jenny C Acquisition, Inc.Senior Secured First Lien Debt—12.25%12.25%
LAV Gear Holdings, Inc.Senior Secured First Lien Debt3.50%5.00%8.50%
Lift Brands, Inc.Senior Secured First Lien Debt—9.50%9.50%
Mimeo.com, Inc.Revolving Term Loan8.00%10.00%18.00%
Moss Holding CompanySenior Secured First Lien Debt7.50%0.50%8.00%
Patterson Medical Supply, Inc.Senior Secured Second Lien Debt1.00%10.50%11.50%
Plano Molding Company, LLCSenior Secured First Lien Debt8.50%1.50%10.00%
Premiere Global Services, Inc.Senior Secured Second Lien Debt0.50%10.00%10.50%
SEK Holding Co LLCSenior Secured First Lien Debt9.00%4.00%13.00%
SIMR, LLCSenior Secured First Lien Debt12.00%7.00%19.00%
Spinal USA, Inc. / Precision Medical Inc.Senior Secured First Lien Debt—10.47%10.47%
West Dermatology Management Holdings, LLCSenior Secured First Lien Debt6.25%0.75%7.00%
WPLM Acquisition Corp.Unsecured Note—15.00%15.00%
See accompanying notes to consolidated financial statements.
25
CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(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, including corporate bonds and long-term subordinated loans, referred to as mezzanine loans, and equity, of private and thinly tradedthinly-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. The Company and CIM previously engaged Apollo Investment Management, L.P., or AIM, a subsidiary of Apollo Global Management, LLC, or, together with its subsidiaries, Apollo, a leading global alternative investment manager, to act as the Company’s investment sub-adviser.  On November 1, 2016,13, 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 sub-advisoryadvisory agreement with AIMCIM for a period of twelve months commencing December 17, 2016.2020. On April 5, 2021, the board of directors of the Company, including a majority of the board of directors who are not interested persons, approved the amended and restated investment advisory agreement with CIM, which was subsequently approved by shareholders on August 9, 2021 (as described in further detail below). 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, with AIM for the purpose of creating a joint venture between AIM and CION Investment Group, LLC, or CIG.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, will shareshares 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 will ultimately resultresults 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 continuesAIM's investment professionals continue to perform identicalcertain services for CIM and the Company, including, without limitation, identifying investment opportunities for approval by CIM.CIM's investment committee. AIM willis not be paid a separate fee in exchange for such services, but will beis 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 personnel.
On April 5, 2021, the Company’s board of directors unanimously approved a number of steps in connection with the commencement of plans to pursue a potential listing of the Company’s shares of common stock on a national securities exchange. The Company has been cleared to file an application, and has applied, to list its shares of common stock on the New York Stock Exchange, or the NYSE, under the symbol “CION”. Subject to market conditions, final board approvals and NYSE approval, the Company currently expects to seek the commencement of trading of its shares of common stock on the NYSE, or the Listing, in the period following receipt of shareholder approval of the proposals to be considered at the Company’s reconvened annual meeting, as described in the Company’s definitive proxy statement filed on May 13, 2021. There can be no assurance that the Company will be able to complete the Listing in any certain timeframe or at all.
26
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
In connection with the potential Listing, the Board also approved an amended and restated investment advisory agreement with CIM. A description of the amended and restated investment advisory agreement is set forth in Proposal 3 in the Company’s definitive proxy statement filed on May 13, 2021. The amended and restated investment advisory agreement is effective upon the Listing, except for the change to the calculation of the subordinated incentive fee payable to CIM that expresses the hurdle rate required for CIM to earn, and be paid, the incentive fee as a percentage of the Company’s net assets rather than adjusted capital, which is not dependent upon the Listing. The amended and restated investment advisory agreement was approved by shareholders on August 9, 2021 at the Company’s reconvened 2021 annual meeting of shareholders. As a result, on August 10, 2021, the Company and CIM entered into the amended and restated investment advisory agreement in order to implement this change to the calculation of the subordinated incentive fee payable to CIM.
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, 20162020 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, 2017.2021. The consolidated balance sheet and the consolidated schedule of investments as of December 31, 20162020 and the consolidated statements of operations, changes in net assets, and cash flows for the year ended December 31, 2020 are derived from the 20162020 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 is considered an investment company as defineddid not consolidate its interest in Accounting Standards Update Topic 946, Financial Services - Investment Companies,CION SOF Funding, LLC, or ASU 946. Accordingly, the required disclosures as outlined in ASU 946 are included inCION SOF. See Note 7 for a description of the Company’s consolidated financial statements.investment in CION SOF.

The Company evaluates subsequent events through the date that the consolidated financial statements are issued.
Recently Announced Accounting Standards
In May 2014,March 2020, the Financial Accounting Standards Board, or the FASB, issued ASU 2014-09,2020-04, Revenue from Contracts with CustomersReference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, or ASU 2014-09,2020-04, which establishes a comprehensiveprovides optional expedients and converged standard on revenue recognitionexceptions for applying GAAP to enable financial statement userscontract modifications, hedging relationships and other transactions, subject to better understand and consistently analyze an entity’s revenue across industries, transactions and geographies. The core principle of ASU 2014-09 ismeeting certain criteria, that an entity should recognize revenue to depict the transfer of promised goodsreference LIBOR or services to customers in an amount that reflects the consideration to which the entity expectsanother reference rate expected to be entitled in exchange for those goods or services. As such, ASU 2014-09 could impact the timing of revenue recognition. ASU 2014-09 also requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. ASU 2014-09 will apply to all entities. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferraldiscontinued because of the Effective Date, orreference rate reform. ASU 2015-14, which amended2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is evaluating the effective date of ASU 2014-09. ASU 2015-14 deferspotential impact that the effective date of ASU 2014-09 to interim reporting periods within annual reporting periods beginning after December 15, 2017 and early adoption is permitted, but not before the original effective date. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements.
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), or ASU 2016-15, which intends to reduce diversity in practice in how certain cash receipts and payments are classified in the statement of cash flows, including debt prepayment or extinguishment costs, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements and distributions from certain equity method investments. ASU 2016-15 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. The adoption of this guidance may impact the presentation of cash flows, but will not otherwise have a material impact on the Company's consolidated balance sheets or statements of operations.

In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business, or ASU 2017-01, which clarifies the definition of a business with the objective of adding guidance to assist companies with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is expected to reduce the number of transactions that need to be further evaluated as businesses. ASU 2017-01 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for certain types of transactions. The Company will apply this guidance to its assessment of applicable transactions consummated after the adoption date.
In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. ASU 2017-08 is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption during an interim period. If the Company early adopts the amendments during an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes such interim period.
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 tointo 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 $140,810$48,484 and $70,498$73,597 of such investments at SeptemberJune 30, 20172021 and December 31, 2016,2020, respectively, which are included in investments, at fair value on the accompanying consolidated balance sheets and on the consolidated schedules of investments.
27
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
OfferingJune 30, 2021
(in thousands, except share and Organizationalper share amounts)
Offering Costs
Offering costs include,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 arewere expensed as incurred by the Company.
Organizational costs include, among other things, the cost of organizing the Company as a Maryland corporation, including the cost of legal services and other fees pertaining to the organization of the Company. All organizational costs were funded by CIG and its affiliates and there was no liability for these organizational costs to the Company until CIG and its affiliates submitted such costs for reimbursement. 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, 2017
(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. TheAs 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 SeptemberJune 30, 2017.2021.

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 2013, 2014, 2015,2017, 2018, and 2016.2019.
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 June 30, 2021; 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 June 30, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19. Actual results may materially differ from those estimates.
28
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
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.
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.

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 consolidated 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.
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

TheA portion of the Company’s investments excluding short term investments, consist primarily 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 utilizes mid-market pricingtypically 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's 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.
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.
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CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
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.
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 the Company’s valuation committee consistingdesignated members of senior management.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 the Company’s valuation committeedesignated 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. The Company’s valuation committeeDesignated 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.
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

TheAs a practical expedient, the Company uses net asset value, of the total return swap, or TRS, was primarily based on the increase or decrease in the value of the loans underlying the TRS,NAV, as determined by the Company. The loans underlying the TRS were valued in the same manner as loans owned by the Company. As in all cases, the level in the fair value hierarchy for each instrument is determined based on the lowest level of inputs that are significant to theits 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 measurement. The Company classified the TRS as Level 3 within the fair value hierarchy based on the lowest level of significant inputs. For additional information on the TRS, see Note 7.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. The Company recordsUpon the prepayment of a loan or security, prepayment premiums, on loans and debt securitiesany unamortized loan origination fees, OID, or market discounts/premiums are recorded as interest income when it receives such amounts. In addition, the Company may generate revenue income.
30
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in the form of commitment, amendment, structuring or diligence fees, monitoring fees, fees for providing managerial assistancethousands, except share and possibly consulting fees and performance-based fees. Any such fees generated in connection with investments are recognized when earned.per share amounts)
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 SeptemberJune 30, 20172021 and December 31, 2016.2020.
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, in accordance with the terms of the debt agreement, 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.
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 repayment or sale and the weighted-average amortized cost of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized upfront fees and prepayment penalties.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.
Derivative Instrument
The Company recognizes all derivative instruments as assets or liabilities at fair value in its consolidated financial statements. Derivative contracts entered into by the Company are not designated as hedging instruments, and as a result, the Company presents changes in fair value through current period earnings.
Derivative instruments are measured in terms of the notional contract amount and derive their value based upon one or more underlying instruments. Derivative instruments are subject to various risks similar to non-derivative instruments including market, credit, liquidity and operational risks. For additional information on the Company's derivative instruments, see Note 7.
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. Pursuant to the amended and restated investment advisory agreement, the incentive fee on capital gains will be reduced to 17.5%, which will be effective on the Listing. A description of the amended and restated investment advisory agreement is set forth in Proposal 3 in the Company’s definitive proxy statement filed on May 13, 2021. There can be no assurance that the Company will be able to complete the Listing in any certain timeframe or at all.
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.
31
CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(in thousands, except share and per share amounts)

CIM did not take any incentive fees with respect to the Company’s TRS. For purposes of computing the capital gains incentive fee, CIM became entitled to a capital gains incentive fee upon the termination of the TRS, at which point all gains and losses of the underlying loans constituting the reference assets of the TRS were realized. However, realized losses exceeded realized gains on the underlying loans, resulting in no capital gains incentive fees on the TRS. Any net unrealized gains on the TRS were reflected in total assets on the Company’s consolidated balance sheets and included in the computation of the base management fee. Any net unrealized losses on the TRS were reflected in total liabilities on the Company’s consolidated balance sheets and excluded in the computation of the base management fee.

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 Increase (Decrease) in Net Assets per Share
Net increase (decrease) 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 will continue until no later thanended on January 25, 2019.

The following table summarizes transactions with respect to shares of the Company’s common stock during the ninesix months ended SeptemberJune 30, 20172021 and 2016:2020 and the year ended December 31, 2020:
Six Months Ended
June 30,		Year Ended
December 31,
202120202020
SharesAmountSharesAmountSharesAmount
Gross shares/proceeds from the offering— $— — $— — $— 
Reinvestment of distributions1,319,183 10,424 1,008,204 8,070 2,992,532 23,298 
Total gross shares/proceeds1,319,183 10,424 1,008,204 8,070 2,992,532 23,298 
Sales commissions and dealer manager fees— — — — — — 
    Net shares/proceeds1,319,183 10,424 1,008,204 8,070 2,992,532 23,298 
Share repurchase program(1,315,717)(10,454)(1,077,994)(8,085)(3,079,954)(23,300)
    Net shares/proceeds from (for) share transactions3,466 $(30)(69,790)$(15)(87,422)$(2)
 Nine Months Ended
September 30,
 2017 2016
 Shares Amount Shares Amount
Gross shares/proceeds from the offering4,718,559
 $44,940
 2,173,945
 $21,017
Reinvestment of distributions3,251,250
 29,701
 3,328,161
 29,179
Total gross shares/proceeds7,969,809
 74,641
 5,502,106
 50,196
Sales commissions and dealer manager fees—
 (1,713) —
 (1,739)
    Net shares/proceeds7,969,809
 72,928
 5,502,106
 48,457
Share repurchase program(3,316,625) (30,167) (1,396,392) (12,231)
    Net shares/proceeds from share transactions4,653,184
 $42,761
 4,105,714
 $36,226
During the nine months ended September 30, 2017 and 2016, the Company sold 7,969,809 and 5,502,106 shares, respectively, at an average price per share of $9.37 and $9.12, respectively.
Since commencing its initial continuous public offering on July 2, 2012 and through SeptemberJune 30, 2017,2021, the Company sold 114,440,741113,297,189 shares of common stock for net proceeds of $1,162,041$1,155,255 at an average price per share of $10.15.$10.20. The net proceeds include gross proceeds received from reinvested shareholder distributions of $114,174,$232,386, for which the Company issued 12,532,91426,425,715 shares of common stock, and gross proceeds paid for shares of common stock tendered for repurchase of $55,581,$232,417, for which the Company repurchased 6,143,71726,620,271 shares of common stock.

During the period from OctoberJuly 1, 20172021 to November 8, 2017,August 10, 2021, the Company sold 658,050 shares of common stock pursuant to its follow-on continuous public offering for gross proceeds of $6,302 at an average price per share of $9.58. The Company also received gross proceeds of $3,824$1,689 from reinvested shareholder distributions, for which the Company issued 417,698208,197 shares of common stock, and paid $10,240 for shares of common stock tendered for repurchase, for which the Company repurchased 1,118,130 shares of common stock.

Since commencing its initial continuous public offering on July 2, 2012 and through November 8, 2017,August 10, 2021, the Company sold 114,398,359113,505,009 shares of common stock for net proceeds of $1,161,927$1,156,943 at an average price per share of $10.16.$10.19. The net proceeds include gross proceeds received from reinvested shareholder distributions of $117,998,$234,075, for which the Company issued 12,950,61226,633,912 shares of common stock, and gross proceeds paid for shares of common stock tendered for repurchase of $65,821,$232,421, for which the Company repurchased 7,261,84726,620,648 shares of common stock.

In August 2020, the Company obtained approval from its shareholders authorizing the Company to issue shares of its common stock at prices below the then current NAV per share of the Company’s common stock in one or more offerings for a 12-month period. The Company has not issued any such shares as of the date of these notes to consolidated financial statements and does not currently intend to do so through August 2021 (the 12-month anniversary of such shareholder approval). On August 9, 2021, the Company's shareholders approved a proposal that again authorizes the Company to issue shares of its common stock at prices below the then current NAV per share of the Company’s common stock in one or more offerings for a 12-month period following shareholder approval, which will be conditioned upon the occurrence of the Listing.
32
CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(in thousands, except share and per share amounts)

To ensure that the offering price per share, net of sales commissions and dealer manager fees, equaled or exceeded the net asset value per share on each subscription closing date and distribution reinvestment date, certain of the Company’s directors increased the offering price per share of common stock on certain dates. Due to a decline in the Company’s net asset value per share to an amount more than 2.5% below the Company’s then-current net offering price, certain of the Company’s directors decreased the offering price per share of common stock on certain dates.  
The changes to our offering price per share since the commencement of our initial continuous public offering and the associated approval and effective dates of such changes were as follows:  
Approval DateEffective DateNew Offering Price Per Share
December 28, 2012January 2, 2013$10.04
January 31, 2013February 1, 2013$10.13
March 14, 2013March 18, 2013$10.19
May 15, 2013May 16, 2013$10.24
August 15, 2013August 16, 2013$10.32
February 4, 2014February 5, 2014$10.45
October 6, 2015October 7, 2015$10.20
November 24, 2015November 25, 2015$10.05
December 22, 2015December 23, 2015$9.95
March 8, 2016March 9, 2016$9.40
March 15, 2016March 16, 2016$9.45
March 22, 2016March 23, 2016$9.50
March 29, 2016March 30, 2016$9.55
April 5, 2016April 6, 2016$9.60
April 26, 2016April 27, 2016$9.65
May 3, 2016May 4, 2016$9.70
May 10, 2016May 11, 2016$9.75
May 31, 2016June 1, 2016$9.80
July 19, 2016July 20, 2016$9.85
July 26, 2016July 27, 2016$9.90
August 9, 2016August 10, 2016$9.95
August 23, 2016August 24, 2016$10.00
October 4, 2016October 5, 2016$10.05
October 11, 2016October 12, 2016$10.10
January 3, 2017January 4, 2017$9.57(1)
January 24, 2017January 25, 2017$9.60
March 7, 2017March 8, 2017$9.65
August 22, 2017August 23, 2017$9.70
(1)On December 28, 2016, the Company entered into an amended and restated follow-on dealer manager agreement pursuant to which, among other things, the dealer manager fee was reduced to up to 2% and selling commissions were reduced to up to 3%. As a result, the Company adjusted its public offering price from $10.10 per share to $9.57 per share in order to maintain its net offering price of $9.09 per share (net of selling commissions and dealer manager fees).
Share Repurchase Program
Beginning in the first quarter of 2014, theThe Company began offering, and on a quarterly basis thereafter it intends to continue offering,offered to repurchase shares on such terms as may be 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 behave been in the best interests of the Company’s shareholders or would violatehave violated 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.
On July 30, 2021, the Company's board of directors, including the independent directors, determined to suspend the Company's share repurchase program commencing with the third quarter of 2021 in anticipation of the Listing and the concurrent enhanced liquidity the Listing is expected to provide. The share repurchase program will ultimately terminate upon the Listing. For a detailed discussion of the potential Listing, refer to Note 1 to these notes to consolidated financial statements.
The Company limitslimited the number of shares to be repurchased during any calendar year to the number of shares it can repurchasecould have repurchased with the proceeds it receivesreceived 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 maycould have also useused cash on hand, cash available from borrowings and cash from liquidation of investments as of the end of the applicable period to repurchase shares. In addition, the Company limits the number of shares to be repurchased in any calendar year to 15% of the weighted average number of shares outstanding in the prior calendar year, or 3.75% in each quarter, though the actual number of shares that it offers to repurchase may be less in light of the limitations noted above. The Company currently offersoffered to repurchase such shares at a price equal to the estimated net asset value per share on each date of repurchase.
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

On November 2, 2015, the Company amended the terms of the quarterly share repurchase program, effective as of the Company’s quarterly repurchase offer for the fourth quarter of 2015, which commenced in November 2015 and was completed in January 2016. Under the amended share repurchase program, the Company offered to repurchase shares of common stock at a price per share of $8.96, which was (i) not less than the net asset value per share immediately prior to January 4, 2016 and (ii) not more than 2.5% greater than the net asset value per share as of such date.

On January 22, 2016, the Company further amended the terms of the quarterly share repurchase program, effective as of the Company’s quarterly repurchase offer for the first quarter of 2016, which commenced in February 2016 and was completed in April 2016. Under the further amended share repurchase program, the Company offered to repurchase shares of common stock at a price equal to 90% of the public offering price in effect on each date of repurchase.
On December 8, 2016, the Company further amended the terms of the quarterly share repurchase program, effective as of the Company's quarterly repurchase offer for the fourth quarter of 2016, which commenced in November 2016 and was completed in January 2017. Under the further amended share repurchase program, the Company will offer to repurchase shares of common stock at a price equal to the estimated net asset value per share determined on each date of repurchase.
Any periodic repurchase offers arewere 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 conductsconducted quarterly tender offers as described above, it iswas not required to do so and mayhad the authority to suspend or terminate the share repurchase program at any time, upon 30 days’ notice.
The following table summarizes the share repurchases completed during the nineyear ended December 31, 2020 and the six months ended SeptemberJune 30, 2017:2021:
Three Months EndedRepurchase DateShares RepurchasedPercentage of Shares Tendered That Were RepurchasedRepurchase Price Per ShareAggregate Consideration for Repurchased Shares
2020
March 31, 2020March 30, 20201,076,229 13%$7.50 $8,071 
June 30, 2020(1)N/A1,765 N/A7.50 14 
September 30, 2020N/A— N/AN/A— 
December 31, 2020December 30, 20202,001,960 20%7.60 15,215 
Total for the year ended December 31, 20203,079,954 $23,300 
2021
March 31, 2021March 24, 2021675,440 6%$7.83 $5,291 
June 30, 2021June 23, 2021640,277 7%8.07 5,163 
Total for the six months ended June 30, 20211,315,717 $10,454 
(1) Represents an adjustment made during the three months ended June 30, 2020 to shares repurchased during the three months ended March 31, 2020.
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Three Months Ended Repurchase Date Shares Repurchased Percentage of Shares Tendered That Were Repurchased Repurchase Price Per Share Aggregate Consideration for Repurchased Shares
March 31, 2017 January 4, 2017 814,223
 100% 9.05
 $7,370
June 30, 2017 April 5, 2017 1,137,234
 100% 9.12
 10,372
September 30, 2017 July 5, 2017 1,365,168
 100% 9.10
 12,425
   Total   3,316,625
     $30,167
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
Note 4. Transactions with Related Parties
For the three and ninesix months ended SeptemberJune 30, 20172021 and 2016,2020 and the year ended December 31, 2020, 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,
Entity Capacity Description 2017 2016 2017 2016
CION Securities, LLC Dealer manager Dealer manager fees(1) $290
 $331
 $782
 $588
CIM Investment adviser Management fees(2) 7,820
 5,187
 21,724
 14,311
ICON Capital, LLC Administrative services provider Administrative services expense(2) 433
 425
 1,204
 1,151
CIG Sponsor Recoupment of expense support(2) —
 —
 —
 667
      $8,543
 $5,943
 $23,710
 $16,717
(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. 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 are charged against capital in excess of par value when incurred. Since commencing its initial continuous public offering on July 2, 2012 and through November 8, 2017, the Company paid or accrued sales commissions of $64,317 to the selling dealers and dealer manager fees of $31,878 to CION Securities. 

CĪON Investment Corporation
Three Months Ended
June 30,		Six Months Ended
June 30,		Year Ended December 31,
EntityCapacityDescription20212020202120202020
CIMInvestment adviserManagement fees(1)$8,243 $7,929 16,026 16,380 $31,828 
CIMInvestment adviserIncentive fees(1)— — — 3,308 7,631 
CIMAdministrative services providerAdministrative services expense(1)697 806 1,381 1,200 2,465 
Apollo Investment Administration, L.P.Administrative services providerTransaction costs(1)38 (12)85 (5)56 
$8,978 $8,723 $17,492 $20,883 $41,980 
Notes(1)Amounts charged directly to Consolidated Financial Statements(unaudited)operations.
September 30, 2017
(in thousands, except share and per share amounts)

The Company has entered into an investment advisory agreement with CIM. On November 1, 2017,13, 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, 2017.2020. On April 5, 2021, the board of directors of the Company, including a majority of the board of directors who are not interested persons, approved the amended and restated investment advisory agreement with CIM, which was subsequently approved by shareholders on August 9, 2021. 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. Pursuant to the amended and restated investment advisory agreement, the annual base management fee will be reduced to 1.5% of the average value of the Company’s gross assets (including cash pledged as collateral for the Company’s secured financing arrangements, but excluding other cash and cash equivalents so that investors do not pay the base management fee on such assets), to the extent that the Company’s asset coverage ratio is greater than or equal to 200% (i.e., $1 of debt outstanding for each $1 of equity); provided that, the annual base management fee would be reduced further to 1.0% for any such gross assets purchased with leverage resulting in the Company’s asset coverage ratio dropping below 200%. Under the 1940 Act, the Company is not currently permitted to incur indebtedness that would cause its asset coverage ratio to drop below 200%. These changes to the base management fee are effective upon the Listing, if and when the potential Listing occurs. 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 pays to CIM 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 pays to CIM 20% of all pre-incentive fee net investment income that exceeds the annualized rate of 9.375%. Under the amended and restated investment advisory agreement, the hurdle rate would be reduced to 1.625% per quarter, or an annualized rate of 6.5%, and the Company would pay to CIM 100% of pre-incentive fee net investment income once the hurdle rate is exceeded until the annualized rate of 7.879% is exceeded, at which point the Company would pay to CIM 17.5% of all pre-incentive fee net investment income. These changes to the subordinated incentive fee on income are effective upon the Listing, except for the change to the calculation of the subordinated incentive fee payable to CIM that expresses the hurdle rate required for CIM to earn, and be paid, the incentive fee as a percentage of the Company’s net assets rather than adjusted capital, which was effective on August 10, 2021. For the three months ended June 30, 2021 and 2020, the Company did not record any liabilities for subordinated incentive fees. The second part of the incentive fee, which is referred to as the capital gains incentive fee, on capital gains, 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 ninesix months ended SeptemberJune 30, 2017,2021 and 2020 and the year ended December 31, 2020, the Company had no liability for and did not record any capital gains incentive fees.
With respect
34
CĪON Investment Corporation
Notes to the TRS, CIM became entitled to receive a capital gains incentive fee upon the termination of the TRS, at which point all net gainsConsolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and losses ofper share amounts)
On April 1, 2018, the underlying loans constituting the reference assets of the TRS were realized. See Note 2 for an additional discussion of CIM’s entitlement to receive payment of incentive fees and the Company’s accrual of the incentive fee on capital gains with respect to the TRS.

The Company entered into an administration agreement with CIM’s affiliate, ICON Capital, LLC, or ICON Capital,CIM pursuant to which ICON CapitalCIM furnishes the Company with administrative services including accounting, investor relations and other administrative services necessary to conduct its day-to-day operations. On November 1, 2017, 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 for a period of twelve months commencing December 17, 2017. ICON CapitalCIM is reimbursed for administrative expenses it incurs on the Company’s behalf in performing its obligations, provided that such reimbursement will beis for the lower of ICON Capital’sCIM’s actual costs or the amount that the Company would behave been required to pay for comparable administrative services in the same geographic location. Such costs will beare reasonably allocated to the Company on the basis of assets, revenues, time records or other reasonable methods. The Company willdoes not reimburse ICON CapitalCIM 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 ICON Capital. 

UnderCIM. On November 13, 2020, the termsboard of directors of the investment advisory agreement, CIM and certain of its affiliates, which includes CIG, are entitled to receive reimbursement of up to 1.5%Company, including a majority of the gross proceeds raised until all offering and organizational costs have been reimbursed. The Company’s paymentboard of offering and organizational costs willdirectors who are not exceed 1.5%interested persons, approved the renewal of the actual gross proceeds raised fromadministration agreement with CIM for a period of twelve months commencing December 17, 2020. This administration agreement with CIM replaced the offerings (without giving effect to any potential expense support from CIG and its affiliates). Ifprior administration agreement with CIM's affiliate, ICON Capital, LLC, or ICON Capital, in which ICON Capital provided the Company sells the maximum number of shares at its latest public offering price of $9.70 per share, the Company estimates that it may incur up to approximately $29,894 of expenses. With respect to any reimbursements for offering and organizational costs, the Company will interpret 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 forsame administrative 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. 
From inception through December 31, 2012, CIG and its affiliates incurred offering, organizational and other pre-effective costs of $2,012. Of these costs, $1,812 represented offering and organizational costs, all of which have been submitted to the Company under the same terms and conditions.

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 reimbursement. The Company paid $450 in October 2013, $550 in March 2014, $592 in May 2014 and $420 in March 2015.  No additional material offering, organizational or other pre-effective costs have been incurred by CIG or its affiliates subsequent to December 31, 2012.
Reinvestment of shareholder distributions and share repurchases are excluded from the gross proceeds fromall broker quoted investments. AIA is reimbursed for administrative expenses it incurs on the Company’s offerings for purposesbehalf 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 determiningany penalty, by either party, upon 60 days' written notice to the total amount of offering and organizational costs that can be paid by the Company. As of September 30, 2017, the Company raised gross offering proceeds of $1,103,448, of which it can pay up to $16,552 in offering and organizational costs (which represents 1.5% of the actual gross offering proceeds raised). Through September 30, 2017, the Company paid $9,876 of such costs, leaving an additional $6,676 that can be paid. As of November 8, 2017, the Company raised gross offering proceeds of $1,109,750, of which it can pay up to $16,646 in offering and organizational costs (which represents 1.5% of the actual gross offering proceeds raised). Through November 8, 2017, the Company paid $9,914 of such costs, leaving an additional $6,732 that can be paid.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 13, 2013 and January 16, 2015, the Company and CIG amended the expense support and conditional reimbursement agreement to extend the termination date of such agreement from January 30, 2014 to January 30, 2015 and from January 30, 2015 to December 31, 2015, respectively. On December 16, 2015 and December 14, 2016, 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 extendingAIM with CIM as the expense support provider pursuant to the terms of the expense support and conditional reimbursement agreement. On December 9, 2020, the Company and CIM further amended the expense support and conditional reimbursement agreement to extend the termination date of such agreement from December 31, 20162020 to December 31, 2017, respectively. Commencing with the quarter beginning January 1, 2016, CIG and AIM each agreed to provide expense support to the Company for 50% of its expenses as described above.2021.
For the three and nine months ended September 30, 2017 and 2016, the Company did not receive any expense support from CIG or AIM.
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(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 CIGCIM for any amounts funded by CIGCIM under such agreement (i) if expense support amounts funded by CIGCIM 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 CIGCIM funded such amount. Pursuant to the second amended and restated expense support and conditional reimbursement agreement, the Company will have a conditional obligation to reimburse CIG and AIM for any amounts funded by CIG and AIM under the same circumstances described above. The obligation to reimburse CIG and AIMCIM for any expense support provided by CIG and AIMCIM 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. DuringFor the three and six months ended SeptemberJune 30, 2016,2021 and 2020 and the year ended December 31, 2020, the Company did not record an obligation to repayreceive any expense support from CIG or AIM. DuringCIM. See Note 5 for additional information on the nine months ended September 30, 2016,sources of the Company recorded an obligation to repay expense support from CIG of $667.Company’s distributions. The Company did not record any obligation to repay expense support from CIG or AIM duringCIM and the three or nine months ended September 30, 2017. During the three and nine months ended September 30, 2016, the Company repaid expense support to CIG of $548 and $1,147, respectively. The Company did not repay any expense support to CIG or AIMCIM during the three or nineand six months ended SeptemberJune 30, 2017.2021 and 2020 and the year ended December 31, 2020. The Company may or may not be requested to reimburse any future expense support provided by CIG or AIM.in the future.
The Company AIM, or CIGCIM may terminate the expense support and conditional reimbursement agreement at any time. CIG and AIM haveCIM has indicated that they expectit expects to continue such expense support until they believeto ensure that the Company has achieved economies of scale sufficient to ensure that it 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 CIG and AIM all unreimbursed expense support funded by CIG and AIMCIM 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 CIG and AIM,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 CIG and AIMCIM will support any portion of the Company’s expenses in future quarters.
As of SeptemberJune 30, 20172021 and December 31, 2016,2020, the total liability payable to CIM and its affiliates was $7,931$9,208 and $6,508,$13,275, respectively, which primarily related to fees earned by CIM during the three months ended SeptemberJune 30, 20172021 and December 31, 2016,2020, 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, which is the investment manager
35
CĪON Investment Corporation
Notes to certain equipment finance funds, or equipment funds, such members of senior management provide investment advisoryConsolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and management services to the equipment funds in addition to the Company. per share amounts)
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 the equipment funds or other clients of CIM rather than to the Company.
IndemnificationsIndemnifications
The investment advisory agreement, the administration agreement and the dealer manager agreement with CIM and CION Securities, LLC (formerly, ICON Securities, LLC), or CION Securities, 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 the Company's executive officersmanagement 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 2020. Distributions in respect of future months will be evaluated by management and the board of directors based on circumstances and expectations existing at the time of consideration. Declared distributions are paid monthly.
During
The Company’s board of directors declared or ratified distributions for 19 and 6 record dates during the year ended December 31, 20162020 and the ninesix months ended SeptemberJune 30, 2017, the Company’s board of directors declared distributions for 52 and 39 record dates,2021, respectively. Declared distributions are paid monthly.
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

The following table presents cash distributions per share that were declared during the year ended December 31, 20162020 and the ninesix months ended SeptemberJune 30, 2017:2021:
Distributions
Three Months EndedPer ShareAmount
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 
December 31, 2020 (four record dates)0.2842 32,479 
Total distributions for the year ended December 31, 2020$0.5554 $63,283 
2021
March 31, 2021 (three record dates)$0.1324 $15,029 
June 30, 2021 (three record dates)0.1324 15,000 
Total distributions for the six months ended June 30, 2021$0.2648 $30,029 
  Distributions
Three Months Ended Per Share Amount
2016    
March 31, 2016 (thirteen record dates) $0.1829
 $19,004
June 30, 2016 (thirteen record dates) 0.1829
 19,167
September 30, 2016 (thirteen record dates) 0.1829
 19,480
December 31, 2016 (thirteen record dates) 0.1829
 19,808
Total distributions for the year ended December 31, 2016 $0.7316
 $77,459
     
2017    
March 31, 2017 (thirteen record dates) $0.1829
 $20,123
June 30, 2017 (thirteen record dates) 0.1829
 20,371
September 30, 2017 (thirteen record dates) 0.1829
 20,644
Total distributions for the nine months ended September 30, 2017 $0.5487
 $61,138

On September 28, 2017,June 15, 2021, the Company’sCompany's co-chief executive officers declared regular weeklymonthly cash distributions of $0.014067$0.04413 per share for October 2017 through December 2017. Each distribution will beJuly 2021. The distributions were paid monthlyon July 28, 2021 to shareholders of record as of July 27, 2021. Shareholders who previously elected to receive distributions in additional shares of the weeklyCompany's common stock pursuant to the Company’s distribution reinvestment plan were issued additional shares for the July 2021 distributions on July 28, 2021.

On July 15, 2021, the Company's co-chief executive officers declared regular monthly cash distributions of $0.04413 per share for August 2021. The distributions will be paid on September 1, 2021 to shareholders of record dates set forth below.as of August 31, 2021. Shareholders who previously elected to receive distributions in additional shares of the Company's common stock pursuant to the Company’s distribution reinvestment plan will be issued additional shares for the August 2021 distributions on September 1, 2021.
36
Record DatePayment DateDistribution Amount Per Share
October 3, 2017November 1, 2017$0.014067
October 10, 2017November 1, 2017$0.014067
October 17, 2017November 1, 2017$0.014067
October 24, 2017November 1, 2017$0.014067
October 31, 2017November 1, 2017$0.014067
November 7, 2017November 29, 2017$0.014067
November 14, 2017November 29, 2017$0.014067
November 21, 2017November 29, 2017$0.014067
November 28, 2017November 29, 2017$0.014067
December 5, 2017December 27, 2017$0.014067
December 12, 2017December 27, 2017$0.014067
December 19, 2017December 27, 2017$0.014067
December 26, 2017December 27, 2017$0.014067
CĪON Investment Corporation

Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
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 November 2, 2015, the Company further amended and restated its distribution reinvestment plan pursuant to the third amended and restated distribution reinvestment plan, or the Third Amended DRIP. The Third Amended DRIP was effective as of, and first applied to the reinvestment of cash distributions paid on or after, the closing of the Company’s initial continuous public offering on December 31, 2015. Under the Third Amended DRIP, cash distributions to participating shareholders were reinvested in additional shares of common stock at a purchase price determined by the Company’s board of directors or a committee thereof, in its sole discretion, that was (i) not less than the net asset value per share determined in good faith by the board of directors or a committee thereof, in their sole discretion, immediately prior to the payment of the distribution, or the NAV Per Share, and (ii) not more than 2.5% greater than the NAV Per Share as of such date. 

On January 22, 2016, the Company further amended and restated its distribution reinvestment plan pursuant to the fourth amended and restated distribution reinvestment plan, or the Fourth Amended DRIP.  The Fourth Amended DRIP became effective as of, and first applied to the reinvestment of cash distributions paid on, March 30, 2016. Under the Fourth Amended DRIP, cash distributions to participating shareholders were reinvested in additional shares of common stock at a purchase price equal to 90% of the public offering price per share in effect as of the date of issuance.
On December 8, 2016, the Company further 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.
CĪON Investment Corporation
Notes to Consolidated Financial Statements
(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

The Company may fund its cash distributions to shareholders from any sources of funds available to the Company, including offering proceeds, 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 CIG and AIM, which is subject to recoupment. The Company has not established limits on the amount of funds it may use from available sources to make distributions. Through December 31, 2014, a portion of the Company’s distributions resulted from expense support from CIG, and future distributions may result from expense support from CIG and AIM, each ofCIM, which is subject to repayment by the Company within three years. For the years ended December 31, 2015 and 2016, none of the Company's distributions resulted from expense support from CIG or AIM. The purpose of this arrangement is to avoid such distributions being characterized as a return of capital. Shareholders should understand that any such distributions funded by expense support from CIM are not based on the Company’s investment performance, and any such distributions can only be sustained if the Company achievesmaintains positive investment performance in future periods and/or CIG and AIM continue to provideCIM provides such expense support. Shareholders should also understand that the Company’s future repayments of expense support will reduce the distributions that they would otherwise receive. There can be no assuranceassurances that the Company will achievemaintain such performance in order to sustain these distributions or be able to pay distributions at all. CIG and AIM haveCIM has no obligation to provide expense support to the Company in future periods.

For the three months ended June 30, 2021 and 2020 and the year ended December 31, 2020, none of the Company's distributions resulted from expense support from CIM. The Company has not established limits on the amount of funds it may use from available sources to make distributions.
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 ninesix months ended SeptemberJune 30, 20172021 and 2016:2020 and the year ended December 31, 2020:
Six Months Ended
June 30,		Year Ended
December 31,
202120202020
Source of DistributionPer ShareAmountPercentagePer ShareAmountPercentagePer ShareAmountPercentage
Net investment income$0.2648 $30,029 100.0 %$0.1829 $20,793 100.0 %$0.5554 $63,283 100.0 %
Total distributions$0.2648 $30,029 100.0 %$0.1829 $20,793 100.0 %$0.5554 $63,283 100.0 %
  Nine Months Ended
September 30,
  2017 2016
Source of Distribution Per Share Amount Percentage Per Share Amount Percentage
Net investment income $0.4953
 $55,191
 90.3% $0.3021
 $31,744
 55.1%
Net realized gain on total return swap            
   Net interest and other income from TRS portfolio 0.0329
 3,661
 6.0% 0.2131
 22,386
 38.8%
   Net gain on TRS loan sales(1) 0.0205
 2,286
 3.7% 0.0232
 2,443
 4.2%
Net realized gain on investments and foreign currency —
 —
 —
 0.0103
 1,078
 1.9%
Total distributions $0.5487
 $61,138
 100.0% $0.5487
 $57,651
 100.0%
(1)During the nine months ended September 30, 2017, the Company realized losses on TRS loans of $19,736 primarily due to the purchase of loans by Flatiron Funding II, LLC in connection with the TRS refinancing that were previously held in the TRS and are not currently deductible on a tax-basis. See Note 8 for an additional discussion regarding this purchase. During the nine months ended September 30, 2016, the Company realized losses on TRS loans of $1,030, which are not currently deductible on a tax-basis.
It is the Company's policy to comply with all requirements of the Code applicable to RICs and to distribute substantially allat least 90% of its taxable income to its shareholders. In addition, by distributing during each calendar year substantially allat least 90% of its “investment company taxable income”, which is generally equal to the sum of the Company’s net investmentordinary income plus the excess, if any, of realized net realizedshort-term capital gains and certain other amounts, if any,over realized net long-term capital losses, the Company intends not to be subject to corporate level federal income tax or federal excise taxes.tax. Accordingly, no federal income tax provision was required.  required for the year ended December 31, 2020. 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.

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 accumulated undistributed realized gain on investments, and accumulated undistributed realized gain on total return swap. During 2016, permanent book/tax differences primarily due to the treatment of the TRS and non-deductible offering costs resulted in a net decrease in distributions in excess of net investment income, a net decrease in accumulated realized gains and a net decrease to capital in excess of par value. These reclassifications had no effect on net assets.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. Except for long term capital gains of $906, allAll distributions for 20162020 were characterized as ordinary income distributions for federal income tax purposes.
37
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
The tax components of accumulated earnings for the current year will be determined at year end. As of December 31, 2016,2020, the components of accumulated earningslosses on a tax basis were as follows:
 December 31, 2016
Undistributed ordinary income$3,847
Undistributed long term capital gains924
Net unrealized depreciation on investments and total return swap(26,398)
Total accumulated earnings$(21,627)
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

December 31, 2020
Undistributed ordinary income$5,950 
Other accumulated losses(1,793)
Net unrealized depreciation on investments(161,664)
Total accumulated losses$(157,507)
As of SeptemberJune 30, 2017,2021, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $23,788;$48,764; the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $47,854;$159,934; the net unrealized depreciation was $24,066;$111,170; and the aggregate cost of securities for Federal income tax purposes was $1,715,921.$1,835,208.
As of December 31, 2016,2020, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $9,389;$31,815; the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $20,202;$193,479; the net unrealized depreciation was $10,813;$161,664; and the aggregate cost of securities for Federal income tax purposes was $1,100,291.$1,731,035.
Note 6. Investments
The composition of the Company’s investment portfolio as of SeptemberJune 30, 20172021 and December 31, 20162020 at amortized cost and fair value was as follows:
June 30, 2021December 31, 2020
Cost(1)Fair
Value		Percentage of
Investment
Portfolio		Cost(1)Fair
Value		Percentage of
Investment
Portfolio
Senior secured first lien debt$1,430,846 $1,407,224 84.0 %$1,266,564 $1,223,268 81.8 %
Senior secured second lien debt160,631 141,710 8.5 %171,480 151,506 10.1 %
Collateralized securities and structured products - equity14,487 14,095 0.8 %15,305 12,131 0.8 %
Unsecured debt5,675 5,508 0.3 %5,668 5,464 0.4 %
Equity100,712 107,017 6.4 %118,638 103,405 6.9 %
Subtotal/total percentage1,712,351 1,675,554 100.0 %1,577,655 1,495,774 100.0 %
Short term investments(2)48,484 48,484 73,597 73,597 
Total investments$1,760,835 $1,724,038 $1,651,252 $1,569,371 
(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.
38
  September 30, 2017 December 31, 2016
  Cost(1) 
Fair
Value
 
Percentage of
Investment
Portfolio
 Cost(1) 
Fair
Value
 
Percentage of
Investment
Portfolio
Senior secured first lien debt $1,069,271
 $1,079,520
 69.6% $489,904
 $489,913
 48.1%
Senior secured second lien debt 404,788
 402,459
 26.0% 437,240
 434,347
 42.6%
Collateralized securities and structured products - debt 28,818
 28,284
 1.8% 39,471
 38,114
 3.7%
Collateralized securities and structured products - equity 31,537
 29,588
 1.9% 37,713
 34,648
 3.4%
Unsecured debt 7,333
 7,331
 0.5% 17,290
 16,851
 1.7%
Equity 5,857
 3,863
 0.2% 4,832
 5,107
 0.5%
Subtotal/total percentage 1,547,604
 1,551,045
 100.0% 1,026,450
 1,018,980
 100.0%
Short term investments(2) 140,810
 140,810
   70,498
 70,498
  
Total investments $1,688,414
 $1,691,855
   $1,096,948
 $1,089,478
  
(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)
SeptemberJune 30, 20172021
(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 SeptemberJune 30, 20172021 and December 31, 2016:2020:
June 30, 2021December 31, 2020
Industry ClassificationInvestments at
Fair Value		Percentage of
Investment Portfolio		Investments at
Fair Value		Percentage of
Investment Portfolio
Healthcare & Pharmaceuticals$283,126 16.9 %$298,944 19.9 %
Services: Business268,849 16.0 %211,572 14.0 %
Media: Diversified & Production127,105 7.6 %108,078 7.2 %
Chemicals, Plastics & Rubber124,017 7.4 %141,654 9.5 %
Services: Consumer112,840 6.7 %85,254 5.7 %
Media: Advertising, Printing & Publishing107,481 6.4 %110,083 7.4 %
High Tech Industries73,265 4.4 %55,619 3.7 %
Beverage, Food & Tobacco64,626 3.9 %69,975 4.7 %
Capital Equipment63,679 3.8 %65,752 4.4 %
Banking, Finance, Insurance & Real Estate53,168 3.2 %41,211 2.8 %
Retail45,543 2.7 %29,312 2.0 %
Aerospace & Defense42,331 2.5 %35,751 2.4 %
Consumer Goods: Durable42,219 2.5 %7,417 0.5 %
Telecommunications41,975 2.5 %46,638 3.1 %
Energy: Oil & Gas41,543 2.5 %28,136 1.9 %
Construction & Building41,064 2.5 %34,653 2.3 %
Hotel, Gaming & Leisure33,523 2.0 %21,920 1.5 %
Consumer Goods: Non-Durable32,534 1.9 %15,757 1.1 %
Diversified Financials25,710 1.5 %37,214 2.5 %
Forest Products & Paper21,699 1.3 %21,686 1.4 %
Transportation: Cargo17,960 1.1 %19,001 1.3 %
Metals & Mining11,297 0.7 %10,147 0.7 %
Subtotal/total percentage1,675,554 100.0 %1,495,774 100.0 %
Short term investments48,484 73,597 
Total investments$1,724,038 $1,569,371 
39
  September 30, 2017 December 31, 2016
Industry Classification 
Investments at
Fair Value
 
Percentage of
Investment Portfolio
 
Investments at
Fair Value
 
Percentage of
Investment Portfolio
High Tech Industries
$229,022
 14.8% $217,339
 21.3%
Healthcare & Pharmaceuticals
222,843
 14.4% 118,337
 11.6%
Services: Business
209,615
 13.5% 126,869
 12.5%
Media: Diversified & Production
116,013
 7.5% 23,100
 2.3%
Chemicals, Plastics & Rubber
89,142
 5.8% 27,253
 2.7%
Telecommunications
72,967
 4.7% 35,411
 3.5%
Services: Consumer
64,137
 4.1% 9,477
 0.9%
Media: Advertising, Printing & Publishing
61,147
 3.9% 54,354
 5.3%
Consumer Goods: Durable
60,992
 3.9% 1,000
 0.1%
Diversified Financials
57,872
 3.7% 72,762
 7.1%
Beverage, Food & Tobacco
54,846
 3.5% 53,658
 5.3%
Capital Equipment
51,899
 3.3% 51,155
 5.0%
Hotel, Gaming & Leisure
45,990
 3.0% 28,974
 2.8%
Automotive
40,347
 2.6% 39,192
 3.9%
Retail
32,052
 2.1% 18,852
 1.9%
Aerospace & Defense
28,811
 1.9% 21,780
 2.1%
Banking, Finance, Insurance & Real Estate
27,296
 1.8% 17,636
 1.7%
Energy: Oil & Gas
25,904
 1.7% 12,803
 1.3%
Consumer Goods: Non-Durable
16,056
 1.0% 8,611
 0.8%
Construction & Building
16,048
 1.0% 39,137
 3.8%
Transportation: Cargo 9,844
 0.6% —
 —
Media: Broadcasting & Subscription
6,450
 0.4% 9,776
 1.0%
Forest Products & Paper
5,598
 0.4% —
 —
Metals & Mining
3,341
 0.2% 11,349
 1.1%
Environmental Industries
2,813
 0.2% 2,595
 0.3%
Energy: Electricity —
 —
 13,715
 1.3%
Containers, Packaging & Glass —
 —
 3,845
 0.4%
Subtotal/total percentage 1,551,045
 100.0% 1,018,980
 100.0%
Short term investments 140,810
   70,498
  
Total investments $1,691,855
   $1,089,478
  
  September 30, 2017 December 31, 2016
Geographic Dispersion(1) 
Investments at
Fair Value
 
Percentage of
Investment Portfolio
 
Investments at
Fair Value
 
Percentage of
Investment Portfolio
United States $1,407,912
 90.8% $916,260
 89.9%
Cayman Islands 31,519
 2.0% 43,234
 4.2%
Canada 30,747
 2.0% 16,705
 1.6%
Germany 20,488
 1.3% 24,185
 2.4%
Netherlands 18,171
 1.2% 10,273
 1.0%
Luxembourg 17,954
 1.1% —
 —
Marshall Islands 9,844
 0.6% —
 —
France 5,598
 0.4% —
 —
Cyprus 5,124
 0.3% 4,728
 0.5%
United Kingdom 2,813
 0.2% 2,595
 0.3%
Bermuda 875
 0.1% 1,000
 0.1%
Subtotal/total percentage 1,551,045
 100.0% 1,018,980
 100.0%
Short term investments 140,810
   70,498
  
Total investments $1,691,855
   $1,089,478
  
(1)The geographic dispersion is determined by the portfolio company's country of domicile.
CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(in thousands, except share and per share amounts)

June 30, 2021December 31, 2020
Geographic Dispersion(1)Investments at
Fair Value		Percentage of
Investment Portfolio		Investments at
Fair Value		Percentage of
Investment Portfolio
United States$1,626,284 97.1 %$1,446,950 96.8 %
Canada20,890 1.3 %14,775 1.0 %
Cayman Islands14,095 0.8 %12,131 0.8 %
Netherlands7,426 0.4 %7,651 0.5 %
Luxembourg3,809 0.2 %10,034 0.7 %
Cyprus2,278 0.1 %3,557 0.2 %
Bermuda772 0.1 %676 — 
Subtotal/total percentage1,675,554 100.0 %1,495,774 100.0 %
Short term investments48,484 73,597 
Total investments$1,724,038 $1,569,371 
(1)The geographic dispersion is determined by the portfolio company's country of domicile.
As of SeptemberJune 30, 2017,2021 and December 31, 2020, investments on non-accrual status represented 0.9%0.4% and 0.5%, respectively, of the Company's investment portfolio on a fair value basis. As of December 31, 2016, there were no investments on non-accrual status.

The Company does not “control” and is not an “affiliate” of any of its portfolio companies, each as defined in the 1940 Act. In general, under the 1940 Act, the Company would be presumed to “control” a portfolio company or issuer if the Company owned 25% or more of its voting securities and would be an “affiliate” of a portfolio company or issuer if the Company owned 5% or more of its voting securities.
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 SeptemberJune 30, 20172021 and December 31, 2016,2020, the Company’s unfunded commitments amounted to $75,833$80,283 and $25,096,$43,130, respectively. As of November 9, 2017,August 5, 2021, the Company’s unfunded commitments amounted to $83,077.$85,059. 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. Derivative InstrumentsCION 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 invested 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. 

In December 2020, the normal courseCompany and BCP elected to wind-down the operations of businessCION SOF. On January 28, 2021, CION SOF sold all of its remaining debt and subjectequity investments to the requirements of the 1940 Act,Company. On March 18, 2021, CION SOF declared final cash distributions and on March 19, 2021, distributed all remaining capital to the Company enters into derivative instruments as partand BCP.

The Company and BCP were not required to make any additional capital contributions to CION SOF. The Company’s equity investment in CION SOF was not redeemable. All portfolio and other material decisions regarding CION SOF required approval of its investment strategy.

board of managers, which was 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 required the affirmative vote of at least one board member from the Company and one board member from BCP.
Credit Default Swap
The Company also served 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 were performed by CIM.

On October 14, 2016, the Company2, 2019, CION SOF entered into a senior secured credit default swapfacility with JPMorgan Chase Bank N.A. withMS, or the SOF Credit Facility, for borrowings of up to a base notionalmaximum amount of €22,000, to purchase protection with respect to Deutsche Bank AG exposure. As of December 31, 2016,$75,000. Advances under the fair value of the credit default swap was $46, which is presented as derivative asset on the consolidated balance sheet. The swap terminated on March 20, 2017.

Total Return Swap

On December 17, 2012, the Company,SOF Credit Facility were available through its wholly-owned consolidated subsidiary, Flatiron Funding, LLC, or Flatiron, entered intoOctober 2, 2022 and bore interest at a TRS with Citibank, N.A., or Citibank.  Flatiron and Citibank amended the TRS on several occasions, most recently on February 18, 2017 to extend the termination or call date from February 18, 2017 to April 18, 2017. Priorfloating rate equal to the call date, the maximum aggregate market value of the portfolio of loans subject to the TRS (determined at the time each such loan became subject to the TRS) was $800,000 and the interest rate payable by Flatiron to Citibank with respect to each loan included in the TRS wasthree-month LIBOR, plus a spread of 1.40%(i) 3.0% per year overthrough October 1, 2022 and (i) 3.5% per year thereafter through October 2, 2024. CION SOF's obligations to MS under the floating rate index specified for each such loan, which would not be less than zero.  On April 18, 2017, the TRS expiredSOF Credit Facility were secured by a first priority security interest in accordance with its terms. The agreements between Flatiron and Citibank, which collectively established the TRS, are referred to herein as the TRS Agreement.     

The valueall of the TRS was based onassets of CION SOF. The obligations of CION SOF under the increase or decrease in the value of the loans underlying the TRS, as determined bySOF Credit Facility were non-recourse to the Company. The loans underlyingOn October 2, 2019, CION SOF drew down $64,702 of borrowings under the TRS were valued inSOF Credit Facility. On December 14, 2020, CION SOF repaid to MS all amounts outstanding under the same manner as loans owned bySOF Credit Facility.

For the Company.  As ofsix months ended June 30, 2020 and the year ended December 31, 2016,2020, the fair valueCompany recorded dividend income from its equity interest in CION SOF of $2,487 and $3,518, respectively. The Company did not record any dividend income from its equity interest in CION SOF for the TRS was ($15,402). The fair value of the TRS was reflected as unrealized depreciation on total return swap on the Company’s consolidated balance sheets. The change in value of the TRS was reflected in the Company’s consolidated statements of operations as net change in unrealized depreciation on total return swap. As of December 31, 2016, Flatiron had selected 51 underlying loans with a total notional amount of $407,847 and posted $143,335 in cash collateral held by Citibank (of which only $131,073 was required to be posted). As of Septembersix months ended June 30, 2017, Flatiron had posted $3,620 in cash collateral held by Citibank, which is reflected in due from counterparty on the Company`s consolidated balance sheets.2021.
40
CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(in thousands, except share and per share amounts)

In accordance with ASU 2015-02, Consolidation, the Company determined that CION SOF was a variable interest entity, or VIE. However, the Company was not the primary beneficiary and therefore did not consolidate CION SOF. The Company's maximum exposure to losses from CION SOF was limited to its equity contribution to CION SOF.
Receivable on total return swap is composed of any amounts due from Citibank that consist of earned but not yet collected net interest and fees and net gains on sales and principal repayments of
The following table sets forth the underlying loans of the TRS. Asindividual investments in CION SOF's portfolio as of December 31, 2016,2020:
Portfolio CompanyIndex Rate(a)IndustryPrincipal/
Par Amount/
Units		Cost(b)Fair
Value
Senior Secured First Lien Debt
Alert 360 Opco, Inc., L+600, 1.00% LIBOR Floor, 10/16/20251 Month LIBORServices: Consumer$2,501 $2,501 $2,501 
Total Senior Secured First Lien Debt2,501 2,501 
Equity
Alert 360 Topco, Inc., Common StockServices: Consumer119,445 Units741 741 
Total Equity741 741 
Short Term Investments(c)
First American Treasury Obligations Fund, Class Z Shares, 0.03%(d)10,591 10,591 
Total Short Term Investments10,591 10,591 
TOTAL INVESTMENTS$13,833 $13,833 
a.The 1 month LIBOR rate was 0.14% as of December 31, 2020.  The actual LIBOR rate for the receivableloan listed may not be the applicable LIBOR rate as of December 31, 2020, as the loan may have been priced or repriced based on total return swap consisteda LIBOR rate prior to or subsequent to December 31, 2020.
b.Represents amortized cost for debt securities and cost for equity investments.
c.Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of the following:three months or less.
d.7-day effective yield as of December 31, 2020.
  December 31, 2016
Interest and other income from TRS portfolio $5,620
Interest and other expense from TRS portfolio (1,928)
Net gain on TRS loan sales 495
Receivable on total return swap $4,187
The following table includes selected balance sheet information for CION SOF as of December 31, 2020:

Realized gains and losses on the TRS are composed of any gains or losses on loans underlying the TRS as well as net interest and fees earned during the period. For the three and nine months ended September 30, 2017 and 2016, net realized gain (loss) on the TRS consisted of the following:
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2017 2016 2017 2016
Interest and other income from TRS portfolio $67
 $9,426
 $6,610
 $32,693
Interest and other expense from TRS portfolio —
 (3,265) (2,949) (10,307)
Net gain (loss) on TRS loan sales —
 2,027
 (17,450) 1,413
Net realized gain (loss)(1) $67
 $8,188
 $(13,789) $23,799
(1)Selected Balance Sheet Information:Net realized gain (loss) is reflected in net realized gain (loss)December 31, 2020
Investments, at fair value (amortized cost of $13,833)$13,833 
Cash and other assets41 
Interest receivable on total return swap on the Company's consolidated statements of operations.investments454 
   Total assets$14,328 
Other liabilities$75 
   Total liabilities75 
Members' capital14,253 
   Total liabilities and members' capital$14,328 
On March 29, 2017, Flatiron Funding II, LLC, or Flatiron Funding II, a newly-formed, wholly-owned, consolidated, special purpose financing subsidiaryThe following table includes selected statement of operations information for CION SOF for the Company, purchased certain loans underlyingsix months ended June 30, 2021 and 2020 and the TRS with a notional value of $363,860 in connection with the TRS refinancing. See Note 8 for additional information on Flatiron Funding II.year ended December 31, 2020:
Three Months Ended
June 30,		Six Months Ended
June 30,		Year Ended December 31,
Selected Statement of Operations Information:20212020202120202020
Total revenues$— $2,001 $29 $4,590 $7,874 
Total expenses— 832 29 1,775 3,934 
Net realized loss on investments— (337)— (337)(3,427)
Net change in unrealized appreciation (depreciation) on investments— 542 — (3,564)28 
Net increase (decrease) in net assets$— $1,374 $— $(1,086)$541 
41
CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(in thousands, except share and per share amounts)

The following is a summary of the underlying loans subject to the TRS as of December 31, 2016:
Underlying Loans(a) Index Rate(b) Industry 
Notional
Amount
 
Fair
Value(c)
 
Unrealized
Appreciation /
(Depreciation)
Senior Secured First Lien Debt          
Academy, Ltd., L+400, 1.00% LIBOR Floor, 7/1/2022 Various Retail $14,564
 $13,653
 $(911)
Access CIG, LLC, L+500, 1.00% LIBOR Floor, 10/18/2021 3 Month LIBOR Services: Business 6,751
 6,798
 47
ALM Media, LLC, L+450, 1.00% LIBOR Floor, 7/31/2020 3 Month LIBOR Media: Advertising, Printing & Publishing 7,679
 7,328
 (351)
Alvogen Pharma US, Inc., L+500, 1.00% LIBOR Floor, 4/1/2022 3 Month LIBOR Healthcare & Pharmaceuticals 9,430
 9,150
 (280)
American Dental Partners, Inc., L+475, 1.00% LIBOR Floor, 8/29/2021 3 Month LIBOR Healthcare & Pharmaceuticals 12,158
 12,219
 61
American Energy - Marcellus, LLC, L+425, 1.00% LIBOR Floor, 8/4/2020 3 Month LIBOR Energy: Oil & Gas 4,254
 2,370
 (1,884)
American Residential Services, LLC, L+450, 1.00% LIBOR Floor, 6/30/2021 3 Month LIBOR Construction & Building 14,067
 14,269
 202
Aquilex, LLC, L+400, 1.00% LIBOR Floor, 12/31/2020 3 Month LIBOR Chemicals, Plastics & Rubber 1,810
 1,778
 (32)
Avaya Inc., L+525, 1.00% LIBOR Floor, 5/29/2020 3 Month LIBOR Telecommunications 14,542
 12,798
 (1,744)
Azure Midstream Energy, LLC, L+650, 1.00% LIBOR Floor, 11/15/2018 1 Month LIBOR Energy: Oil & Gas 2,375
 2,200
 (175)
Caraustar Industries, Inc., L+675, 1.25% LIBOR Floor, 5/1/2019 3 Month LIBOR Forest Products & Paper 11,954
 12,521
 567
Central Security Group, Inc., L+563, 1.00% LIBOR Floor, 10/6/2020 1 Month LIBOR Services: Consumer 12,915
 13,058
 143
Charming Charlie, LLC, L+800, 1.00% LIBOR Floor, 12/24/2019 3 Month LIBOR Retail 7,723
 4,314
 (3,409)
CSP Technologies North America, LLC, L+600, 1.00% LIBOR Floor, 1/29/2022 3 Month LIBOR Chemicals, Plastics & Rubber 13,385
 13,590
 205
CT Technologies Intermediate Holdings, Inc., L+425, 1.00% LIBOR Floor, 12/1/2021 1 Month LIBOR Healthcare & Pharmaceuticals 14,681
 14,160
 (521)
David's Bridal, Inc., L+400, 1.25% LIBOR Floor, 10/11/2019 3 Month LIBOR Retail 3,339
 3,095
 (244)
DBRS, Inc., L+525, 1.00% LIBOR Floor, 3/4/2022(d) 3 Month LIBOR Services: Business 12,874
 12,094
 (780)
EIG Investors Corp., L+548, 1.00% LIBOR Floor, 11/9/2019(d) 3 Month LIBOR Services: Business 1,773
 1,772
 (1)
Emmis Operating Company, L+600, 1.00% LIBOR Floor, 6/10/2021 3 Month LIBOR Media: Broadcasting & Subscription 7,508
 7,075
 (433)
Evergreen Skills Lux S.À.R.L., L+475, 1.00% LIBOR Floor, 4/28/2021(d) 6 Month LIBOR High Tech Industries 7,174
 6,821
 (353)
Global Cash Access, Inc., L+525, 1.00% LIBOR Floor, 12/18/2020 2 Month LIBOR Hotel, Gaming & Leisure 10,483
 10,406
 (77)
Healogics, Inc., L+425, 1.00% LIBOR Floor, 7/1/2021 3 Month LIBOR Healthcare & Pharmaceuticals 4,829
 4,520
 (309)
IMG Worldwide Holdings, LLC, L+425, 1.00% LIBOR Floor, 5/6/2021 3 Month LIBOR Media: Diversified & Production 7,111
 7,277
 166
LTCG Holdings Corp., L+500, 1.00% LIBOR Floor, 6/6/2020 1 Month LIBOR Services: Business 5,882
 5,409
 (473)
Murray Energy Corp., L+725, 1.00% LIBOR Floor, 4/16/2020 3 Month LIBOR Metals & Mining 3,588
 3,528
 (60)
Navex Global, Inc, L+475, 1.00% LIBOR Floor, 11/19/2021 6 Month LIBOR High Tech Industries 13,597
 13,617
 20
Nielsen & Bainbridge, LLC, L+500, 1.00% LIBOR Floor, 8/15/2020 6 Month LIBOR Consumer Goods: Durable 15,843
 15,942
 99
Oasis Outsourcing Holdings, Inc., L+475, 1.00% LIBOR Floor, 12/26/2021 1 Month LIBOR Services: Business 9,319
 9,472
 153
Onex TSG Holdings II Corp., L+400, 1.00% LIBOR Floor, 7/29/2022 3 Month LIBOR Healthcare & Pharmaceuticals 3,408
 3,441
 33
Opal Acquisition, Inc., L+400, 1.00% LIBOR Floor, 11/27/2020 3 Month LIBOR Healthcare & Pharmaceuticals 10,236
 9,802
 (434)
Pelican Products, Inc., L+425, 1.00% LIBOR Floor, 4/10/2020 3 Month LIBOR Chemicals, Plastics & Rubber 2,493
 2,503
 10
Photonis Technologies SAS, L+750, 1.00% LIBOR Floor, 9/18/2019(d) 3 Month LIBOR Aerospace & Defense 6,337
 5,564
 (773)
PSC Industrial Holdings Corp., L+475, 1.00% LIBOR Floor, 12/5/2020 3 Month LIBOR Services: Business 4,851
 4,741
 (110)
Scientific Games International, Inc., L+500, 1.00% LIBOR Floor, 10/1/2021(d) Various Hotel, Gaming & Leisure 10,400
 10,665
 265
SESAC Holdco II LLC, L+425, 1.00% LIBOR Floor, 2/7/2019 1 Month LIBOR Media: Broadcasting & Subscription 2,935
 2,938
 3
SG Acquisition, Inc., L+525, 1.00% LIBOR Floor, 8/19/2021 3 Month LIBOR Banking, Finance, Insurance & Real Estate 11,414
 11,547
 133
SI Organization, Inc., L+475, 1.00% LIBOR Floor, 11/23/2019 3 Month LIBOR Services: Business 7,746
 7,866
 120
STG-Fairway Acquisitions, Inc., L+525, 1.00% LIBOR Floor, 6/30/2022 3 Month LIBOR Services: Business 3,845
 3,840
 (5)
Survey Sampling International, LLC, L+500, 1.00% LIBOR Floor, 12/16/2020 3 Month LIBOR Services: Business 7,781
 7,899
 118
TIBCO Software Inc., L+550, 1.00% LIBOR Floor, 12/4/2020 1 Month LIBOR High Tech Industries 16,827
 17,319
 492
Travel Leaders Group, LLC, L+600, 1.00% LIBOR Floor, 12/7/2020 1 Month LIBOR Services: Consumer 5,169
 5,176
 7
Vince, LLC, L+500, 1.00% LIBOR Floor, 11/27/2019(d) 3 Month LIBOR Retail 1,124
 1,093
 (31)
Western Dental Services, Inc., L+650, 1.00% LIBOR Floor, 11/1/2018 3 Month LIBOR Healthcare & Pharmaceuticals 5,573
 5,566
 (7)
Total Senior Secured First Lien Debt     351,747
 341,194
 (10,553)
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

Underlying Loans(a) Index Rate(b) Industry 
Notional
Amount
 
Fair
Value(c)
 
Unrealized
Appreciation /
(Depreciation)
Senior Secured Second Lien Debt          
Asurion, LLC, L+750, 1.00% LIBOR Floor, 3/3/2021 1 Month LIBOR Services: Consumer 7,772
 8,044
 272
Evergreen Skills Lux S.À.R.L., L+825, 1.00% LIBOR Floor, 4/28/2022(d) 6 Month LIBOR High Tech Industries 9,798
 7,594
 (2,204)
GOBP Holdings, Inc., L+825, 1.00% LIBOR Floor, 10/21/2022 3 Month LIBOR Retail 3,940
 4,010
 70
Mergermarket USA, Inc., L+650, 1.00% LIBOR Floor, 2/4/2022 3 Month LIBOR Services: Business 6,965
 6,842
 (123)
Onex Carestream Finance LP, L+850, 1.00% LIBOR Floor, 12/7/2019 3 Month LIBOR Healthcare & Pharmaceuticals 13,600
 11,318
 (2,282)
Pelican Products, Inc., L+825, 1.00% LIBOR Floor, 4/11/2021 3 Month LIBOR Chemicals, Plastics & Rubber 8,050
 7,830
 (220)
PFS Holding Corp., L+725, 1.00% LIBOR Floor, 1/31/2022 1 Month LIBOR Retail 4,973
 4,636
 (337)
Securus Technologies Holdings, Inc., L+775, 1.25% LIBOR Floor, 4/30/2021 3 Month LIBOR Telecommunications 1,002
 977
 (25)
Total Senior Secured Second Lien Debt     56,100
 51,251
 (4,849)
Total     $407,847
 $392,445
 $(15,402)
(a)All of the underlying loans subject to the TRS were issued by eligible U.S. portfolio companies, as defined in the 1940 Act, except for investments specifically identified as non-qualifying per note (d) below. The Company did not control and was not an affiliate of any of the companies that were issuers of the underlying loans subject to the TRS.
(b)The 1, 2, 3, and 6 month LIBOR rates were 0.77%, 0.82%, 1.00% and 1.32%, respectively, as of December 31, 2016. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of December 31, 2016, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to December 31, 2016.
(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)All or a portion of the underlying loan subject to the TRS was 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, 2016, 90.5% of the Company’s total assets represented qualifying assets. In addition, as described in this Note 7, the Company calculated its compliance with the qualifying asset test on a “look through” basis by treating each loan underlying the TRS as either a qualifying asset or non-qualifying asset based on whether the obligor was an eligible portfolio company. On this basis, 89.1% of the Company’s total assets represented qualifying assets as of December 31, 2016.
(e)For the year ended December 31, 2016, the following underlying loans subject to the TRS contained a PIK interest provision whereby the issuer had either the option or the obligation to make interest payments with the issuance of additional securities:
    Interest Rate Interest Amount
Issuer of Underlying Loan Investment Type Cash PIK All-in-Rate Cash PIK Total
Smile Brands Group, Inc.(f) Senior Secured First Lien Debt 7.50% 1.50% 9.00% $233
 $41
 $274
Southcross Holdings Borrower LP(g) Senior Secured First Lien Debt 3.50% 5.50% 9.00% $1
 $1
 $2
(f)Outstanding principal and accrued interest of the underlying loan was fully repaid on August 17, 2016.
(g)Prior to December 31, 2016, the underlying loan was assigned to the Company and removed from the TRS.
Note 8. Financing Arrangements

The following table presents summary information with respect to the Company’s outstanding financing arrangements as of SeptemberJune 30, 2017:2021: 
Financing ArrangementType of Financing ArrangementRateAmount OutstandingAmount AvailableMaturity Date
JPM Credit FacilityTerm Loan Credit FacilityL+3.10%$550,000 $25,000 May 15, 2024
2026 Notes(1)Note Purchase Agreement4.50%125,000 — February 11, 2026
UBS FacilityRepurchase AgreementL+3.375%100,000 50,000 November 19, 2023
More Term Loan(2)Term Loan Facility Agreement5.20%30,000 — September 30, 2024
$805,000 $75,000 
Arrangement Type of Arrangement Rate Amount Outstanding Amount Available Maturity Date
Citibank Credit Facility Revolving Credit Facility L+2.00% $281,698
 $43,302
 March 29, 2019
JPM Credit Facility Term Loan Credit Facility L+3.50% 224,423
 577
 August 23, 2020
UBS Facility Repurchase Agreement L+3.50% 125,000
 —
 May 19, 2020
(1)As of June 30, 2021, the fair value of the 2026 Notes was $125,000, which was based on a yield analysis and discount rate commensurate with the market yields for similar types of debt. The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of June 30, 2021.

(2)As of June 30, 2021, the fair value of the More Term Loan was $30,000, which was based on a yield analysis and discount rate commensurate with the market yields for similar types of debt. The fair value of these debt obligations would be categorized as Level 3 under ASC 820 as of June 30, 2021.
Citibank
JPM Credit Facility

On March 29, 2017, Flatiron Funding IIAugust 26, 2016, 34th Street entered into a senior secured credit facility with Citibank. The senior secured credit facility with Citibank, or the Citibank Credit Facility, provides for a revolving credit facility in an aggregate principal amount of $325,000, subject to compliance with a borrowing base. On March 29, 2017 and September 26, 2017, Flatiron Funding II drew down $231,698 and $50,000 of borrowings under the Citibank Credit Facility, respectively.

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.
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

Advances under the Amended Citibank Credit Facility bear 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 (a) 2% per year during the period from and including March 29, 2017 and the earlier of March 29, 2019 and the date the Amended Citibank Credit Facility matures, or (b) 3% per year during the period from the date the Amended Citibank Credit Facility matures until all obligations under the Amended Citibank Credit Facility have been paid in full. Interest is payable quarterly in arrears. All advances under the Amended Citibank Credit Facility will mature, and all accrued and unpaid interest thereunder will be due and payable, by no later than March 30, 2020. Flatiron Funding II may prepay advances pursuant to the terms and conditions of the credit and security agreement, subject to a 0.75% or 0.50% premium if the amount of the Amended Citibank Credit Facility is reduced or terminated on or prior to March 29, 2018 or March 29, 2019, respectively. In addition, Flatiron Funding II will be subject to a non-usage fee of 0.75% per year (subject to an increase to 2% in certain circumstances) on the amount, if any, of the aggregate principal amount available under the Amended Citibank Credit Facility that has not been borrowed. The non-usage fees, if any, are payable quarterly in arrears. Flatiron Funding II incurred certain customary costs and expenses in connection with obtaining the Citibank Credit Facility.

The Company incurred debt issuance costs of $1,945 in connection with obtaining the Citibank Credit Facility, which were recorded as a direct reduction to the outstanding balance of the Amended Citibank Credit Facility, which is included in the Company’s consolidated balance sheet as of September 30, 2017 and will amortize to interest expense over the term of the Amended Citibank Credit Facility. At September 30, 2017, the unamortized portion of the debt issuance costs was $1,615.

Flatiron Funding II purchased loans and other corporate debt securities with a fair value of $354,967 on the closing date pursuant to master participation and assignment agreements between Flatiron Funding II and each of 15th Street Loan Funding LLC and 15th Street Loan Funding 2 LLC, each a special purpose subsidiary of Citibank. 15th Street Loan Funding LLC and 15th Street Loan Funding 2 LLC held loans and other corporate debt securities in connection with the TRS Agreement between Citibank and Flatiron. Flatiron Funding II’s obligations to Citibank under the Amended Citibank Credit Facility are secured by a first priority security interest in all of the assets of Flatiron Funding II. The obligations of Flatiron Funding II under the Amended Citibank Credit Facility are non-recourse to the Company, and the Company’s exposure under the Amended Citibank Credit Facility is limited to the value of the Company’s investment in Flatiron Funding II. 

In connection with the Amended Citibank Credit Facility, Flatiron Funding II has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. From the inception of the Citibank Credit Facility on March 29, 2017 to September 30, 2017, Flatiron Funding II was in compliance with all covenants and reporting requirements.

For the three months ended September 30, 2017 and the period from March 29, 2017 through September 30, 2017, the components of interest expense, average borrowings, and weighted average interest rate for the Amended Citibank Credit Facility were as follows:
  Three Months Ended
September 30, 2017		 Period from March 29, 2017 to September 30, 2017
Stated interest expense $1,953
 $3,860
Non-usage fee 173
 356
Amortization of deferred financing costs 174
 330
Total interest expense $2,300
 $4,546
Weighted average interest rate(1) 3.54% 3.50%
Average borrowings $234,416
 $233,042
(1)Includes the stated interest expense and non-usage fee on the unused portion of the Amended Citibank Credit Facility and is annualized for periods covering less than one year.

JPM Credit Facility

On August 26, 2016, 34th Street Funding, LLC, or 34th Street, a newly-formed, wholly-owned, consolidated, special purpose financing subsidiary of the Company, entered into a senior secured credit facility with JPMorgan Chase Bank, National Association, or 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 becould have been 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).

On September 30, 2016, and 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 becould have been 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. No other material terms of the JPM Credit Facility were revised in connection withUnder the Amended JPM Credit Facility.
CĪON Investment CorporationFacility 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.
Notes
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 Consolidated Financial Statements(unaudited)
September 30, 2017
(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 thousands, except sharethe 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 per share amounts)

the maturity date was extended to May 15, 2023. Advances under the Second Amended JPM Credit Facility bore interest at a floating rate equal to the three-month LIBOR, plus a spread of 3.25% per year.

On February 26, 2021, 34th Street amended and restated the Second Amended JPM Credit Facility, or the Third Amended JPM Credit Facility, with JPM. Under the Third Amended JPM Credit Facility, the aggregate principal amount available for borrowings was reduced from $700,000 to $575,000, subject to conditions described in the Third Amended JPM Credit Facility. In addition, under the Third Amended JPM Credit Facility, the reinvestment period was extended from May 15, 2022 to May 15, 2023 and the maturity date was extended from May 15, 2023 to May 15, 2024. Advances under the Third Amended JPM Credit Facility bear interest at a floating rate equal to the three-month LIBOR, plus a spread of 3.50%3.10% per year, which was reduced from a spread of 3.25% per year. 34th Street incurred certain customary costs and expenses in connection with the Third Amended JPM Credit Facility. No other material terms of the Second JPM Credit Facility were revised in connection with the Third Amended JPM Credit Facility. On February 17, 2021, 34th Street repaid $125,000 of borrowings under the Third Amended JPM Credit Facility.

On June 2, 2021, 34th Street drew down $50,000 of borrowings under the Third Amended JPM Credit Facility.
42
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
Interest is payable quarterly in arrears. All advances under the Amended JPM Credit Facility will mature, and all accrued and unpaid interest thereunder will be due and payable, by no later than August 23, 2020. 34th Street may prepay advances pursuant to the terms and conditions of the Third 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 0.5% and 1.0% per year on the amount, if any, of the aggregate principal amount available under the Third Amended JPM Credit Facility that has not been borrowed during the period from the closing date and ending on, but excluding,through May 23, 2017, or the Ramp-Up Period, and from the termination of the Ramp-Up Period and ending on, but excluding, August 23, 2019, respectively.14, 2023. The non-usage fees, if any, are payable quarterly in arrears.

As of June 30, 2021 and December 31, 2020, the principal amount outstanding on the Third Amended JPM Credit Facility and the Second Amended JPM Credit Facility, respectively, was $550,000 and $625,000, 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 Third 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 Third Amended JPM Credit Facility are non-recourse to the Company, and the Company’s exposure under the Third Amended JPM Credit Facility is limited to the value of the Company’s investment in 34th Street.

In connection with the Third Amended JPM Credit Facility, 34th Street has made certain representations and warranties and is required to comply with a borrowing base requirement, various covenants, reporting requirements and other customary requirements for similar facilities. As of and for the ninethree months ended SeptemberJune 30, 2017,2021, 34th Street was in compliance with all covenants and reporting requirements.

TheThrough June 30, 2021, the Company incurred debt issuance costs of $3,515$11,402 in connection with obtaining and amending the JPM Credit Facility, which were recorded as a direct reduction to the outstanding balance of the Third Amended JPM Credit Facility, which is included in the Company’s consolidated balance sheetssheet as of June 30, 2021 and will amortize to interest expense over the term of the Third Amended JPM Credit Facility. At SeptemberJune 30, 2017,2021, the unamortized portion of the debt issuance costs was $2,554.$5,606.

For the three and ninesix months ended SeptemberJune 30, 2017,2021 and 2020 and the year ended December 31, 2020, the components of interest expense, average borrowings, and weighted average interest rate for the Third Amended JPM Credit Facility and the Second Amended JPM Credit Facility, as applicable, were as follows:
Three Months Ended June 30,Six Months Ended June 30,Year Ended December 31,
20212020202120202020
Stated interest expense$4,275 $4,685 $9,093 $7,721 $19,069 
Amortization of deferred financing costs487 357 1,164 509 1,582 
Non-usage fee149 74 368 137 509 
Total interest expense$4,911 $5,116 $10,625 $8,367 $21,160 
Weighted average interest rate(1)3.40 %4.04 %3.48 %4.34 %3.90 %
Average borrowings$515,934 $465,205 $540,470 $357,603 $493,122 
(1)Includes the stated interest expense and non-usage fee, if any, on the unused portion of the Third Amended JPM Credit Facility and is annualized for periods covering less than one year.

2026 Notes

On February 11, 2021, the Company entered into a Note Purchase Agreement with certain purchasers, or the Note Purchase Agreement, in connection with the Company’s issuance of $125,000 aggregate principal amount of its 4.50% senior unsecured notes due in 2026, or the 2026 Notes. The net proceeds to the Company were approximately $122,300, after the deduction of placement agent fees and other financing expenses, which the Company used to repay debt under its secured financing arrangements.
43
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
  Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017
Stated interest expense $2,770
 $7,978
Amortization of deferred financing costs 222
 660
Non-usage fee 1
 3
Total interest expense $2,993
 $8,641
Weighted average interest rate(1) 4.74% 4.61%
Average borrowings $224,423
 $224,423
The 2026 Notes mature on February 11, 2026. The 2026 Notes bear interest at a rate of 4.50% per year payable semi-annually on February 11th and August 11th of each year, commencing on August 11, 2021. The Company has the right to, at its option, redeem all or a part that is not less than 10% of the 2026 Notes (i) on or before February 11, 2024, at a redemption price equal to 100% of the principal amount of 2026 Notes to be redeemed plus an applicable “make-whole” amount equal to (x) the discounted value of the remaining scheduled payments with respect to the principal of such 2026 Note that is to be prepaid or becomes due and payable pursuant to the Note Purchase Agreement over (y) the amount of such called principal, plus accrued and unpaid interest, if any, (ii) after February 11, 2024 but on or before February 11, 2025, at a redemption price equal to 102% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, (iii) after February 11, 2025 but on or before August 11, 2025, at a redemption price equal to 101% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, and (iv) after August 11, 2025, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any. For any redemptions occurring on or before February 11, 2024, the discounted value portion of the “make whole amount” is calculated by applying a discount rate on the same periodic basis as that on which interest on the 2026 Notes is payable equal to the sum of 0.50% plus the yield to maturity of the most recently issued U.S. Treasury securities having a maturity equal to the remaining average life of the 2026 Notes, or if there are no such U.S. Treasury securities, using such implied yield to maturity determined in accordance with the terms of the Note Purchase Agreement.
(1)Includes the stated interest expense and non-usage fee on the unused portion of the Amended JPM Credit Facility and is annualized for periods covering less than one year.

The 2026 Notes are general unsecured obligations of the Company that rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to any of the Company’s secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by certain of the Company’s subsidiaries, financing vehicles or similar facilities.

The Note Purchase Agreement contains other terms and conditions, including, without limitation, affirmative and negative covenants such as (i) information reporting, (ii) maintenance of the Company’s status as a BDC, (iii) minimum shareholders’ equity of 60% of the Company’s net asset value as of the year ended December 31, 2020 plus 50% of the net cash proceeds of the sale of certain equity interests by the Company after February 11, 2021, if any, (iv) a minimum asset coverage ratio of not less than 200%, or 150% if the Company obtains the requisite shareholder approval and the Company's common stock is listed for trading on a national securities exchange, (v) a minimum interest coverage ratio of 1.25 to 1.00 and (vi) an unencumbered asset coverage ratio of 1.25 to 1.00, provided that (a) first lien senior secured loans and cash represent more than 65% of the total value of unencumbered assets used by the Company for purposes of the ratio and (b) equity interests or structured products in the aggregate represent less than 15% of the total value of unencumbered assets used by the Company for purposes of the ratio. As of and for the three months ended June 30, 2021, the Company was in compliance with all reporting requirements.

The Note Purchase Agreement also contains a “most favored lender” provision in favor of the purchasers in respect of any new unsecured credit facilities, loans or indebtedness in excess of $25,000 incurred by the Company, which indebtedness contains a financial covenant not contained in, or more restrictive against the Company than those contained, in the Note Purchase Agreement. In addition, the Note Purchase Agreement contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, breach of covenant, cross-default under other indebtedness or derivative securities of the Company in an outstanding aggregate principal amount of at least $25,000, certain judgments and orders, and certain events of bankruptcy.

As of June 30, 2021, the aggregate principal amount of 2026 Notes outstanding was $125,000.

Through June 30, 2021, the Company incurred debt issuance costs of $2,669 in connection with issuing the 2026 Notes, which were recorded as a direct reduction to the outstanding balance of the 2026 Notes, which is included in the Company’s consolidated balance sheet as of June 30, 2021 and will amortize to interest expense over the term of the 2026 Notes. At June 30, 2021, the unamortized portion of the debt issuance costs was $2,464.

For the three months ended June 30, 2021 and for the period from February 11, 2021 through June 30, 2021, the components of interest expense, average borrowings, and weighted average interest rate for the 2026 Notes were as follows:
Three Months Ended June 30, 2021For the Period from February 11, 2021 through June 30, 2021
Stated interest expense$1,422 $2,188 
Amortization of deferred financing costs132 204 
Total interest expense$1,554 $2,392 
Weighted average interest rate(1)4.50 %4.50 %
Average borrowings$125,000 $125,000 
(1) Includes the stated interest expense on the 2026 Notes and is annualized for periods covering less than one year.
44
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
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 AG, London Branch, or UBS, pursuant to which up to $125,000 will bewas 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, LLC, or 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 iswas $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.
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

Murray Hill Funding, in turn, has 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 iswas $192,308. Accordingly, the aggregate maximum amount payable to Murray Hill Funding under the UBS Facility willwould not exceed $125,000. Murray Hill Funding willwas required to repurchase the Notes sold to UBS under the UBS Facility by no later than May 19, 2020. The repurchase price paid by Murray Hill Funding to UBS will be equal to the purchase price paid by UBS for the repurchased Notes (giving effect to any reductions resulting from voluntary partial prepayment(s)). If the UBS Facility is accelerated prior to May 19, 2020 due to an event of default or a mandatory or voluntary full payment by Murray Hill Funding, then Murray Hill Funding must pay to UBS a fee equal to the present value of the spread portion of the financing fees that would have been payable to UBS from the date of acceleration through May 19, 2020 had the acceleration not occurred. The financing fee under the UBS Facility iswas 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.

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 Amended 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 May 19, 2020, Murray Hill Funding also 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 Amended UBS Facility as of May 19, 2020. As of December 31, 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 Amended UBS Facility for aggregate proceeds of $100,000.

On November 12, 2020, Murray Hill Funding entered into a Third Amended and Restated Master Confirmation to the Global Master Repurchase Agreement, or the Third Amended Master Confirmation, to further extend the date that Murray Hill Funding will be required to repurchase the Notes to December 18, 2020.
45
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
On December 17, 2020, Murray Hill Funding entered into a Fourth Amended and Restated Master Confirmation to the Global Master Repurchase Agreement, or the Fourth Amended Master Confirmation, which further extended the date that Murray Hill Funding will be required to repurchase the Notes sold to UBS under the Amended UBS Facility from December 18, 2020 to November 19, 2023, and decreased the spread on the financing fee from 3.90% to 3.375% per year. No other material terms of the Amended UBS Facility were revised in connection with the Fourth Amended Master Confirmation.

On December 17, 2020, Murray Hill Funding also entered into a Revolving Credit Note Agreement, or the Revolving Note Agreement, with Murray Hill Funding II, UBS and U.S. Bank, as note agent and trustee, which provides for a revolving credit facility in an aggregate principal amount of $50,000, subject to compliance with a borrowing base. Murray Hill Funding II will issue Class A-R Notes, or the Class A-R Notes, in exchange for advances under the Revolving Note Agreement. Principal on the Class A-R Notes will be due and payable on the stated maturity date of May 19, 2027, which is the same stated maturity date as the Notes.

The Class A-R Notes will be issued pursuant to a Second Amended and Restated Indenture, dated December 17, 2020, between Murray Hill Funding II and U.S. Bank, as trustee, or the Second Amended Indenture. Under the Second Amended Indenture, the aggregate principal amount of Notes and Class A-R Notes that may be issued by Murray Hill Funding II from time to time is $150,000. Murray Hill Funding, in turn, entered into a repurchase transaction with UBS pursuant to the terms of the related Annex and Master Confirmation, dated December 17, 2020, to the Global Master Repurchase Agreement, dated May 19, 2017, related to the Class A-R Notes. Murray Hill Funding is required to repurchase the Class A-R Notes that will be sold to UBS by no later than November 19, 2023. The financing fee for the funded Class A-R Notes is equal to the three-month LIBOR plus a spread of 3.375% per year while the financing fee for the unfunded Class A-R Notes is equal to 0.75% per year.

Pursuant to the Amended UBS Facility, on July 1, 2021, UBS purchased Class A-R Notes held by Murray Hill Funding for an aggregate purchase price equal to 100% of the principal amount of Class A-R Notes purchased which was $21,000.

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 Amended 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 a borrowing base requirement, 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 $1,786$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 will amortizeamortized to interest expense over the term of the Amended UBS Facility. At SeptemberJune 30, 2017, the unamortized portion of the2021, all upfront feefees and other expenses was $1,567.were fully amortized.

As of SeptemberJune 30, 2017,2021, Notes in the aggregate principal amount of $192,308$100,000 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 $125,000.$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 SeptemberJune 30, 2017,2021, the amount due at maturity under the Amended UBS Facility was $125,000.$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 SeptemberJune 30, 2017,2021, the fair value of assets held by Murray Hill Funding II was $248,916.$227,154.

46
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
For the period from May 19, 2017 through Septemberthree and six months ended June 30, 2017,2021 and 2020 and the year ended December 31, 2020, the components of interest expense, average borrowings, and weighted average interest rate for the Amended UBS Facility were as follows:
Three Months Ended June 30,Six Months Ended June 30,Year Ended December 31,
20212020202120202020
Stated interest expense$893 $1,908 $1,795 $4,611 $6,732 
Non-usage fee95 — 189 — 16 
Amortization of deferred financing costs— 125 — 359 360 
Total interest expense$988 $2,033 $1,984 $4,970 $7,108 
Weighted average interest rate(1)3.98 %4.92 %3.94 %5.17 %4.81 %
Average borrowings$100,000 $152,747 $100,000 $176,374 $137,978 
  Three Months Ended September 30, 2017 Period from May 19, 2017 to September 30, 2017
Stated interest expense $1,480
 $2,009
Amortization of deferred financing costs 147
 219
Total interest expense $1,627
 $2,228
Weighted average interest rate(1) 4.74% 4.72%
Average borrowings $125,000
 $113,519
(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.
(1)Includes the stated interest expense and non-usage fee, if any, on the unused portion of the UBS Facility and is annualized for periods covering less than one year.
East West Bank Credit Facility
More Term Loan

On April 30, 2015,14, 2021, the Company entered into a revolving credit facility,an Unsecured Term Loan Facility Agreement, or the EWB Credit Facility,Term Loan Agreement, with East West Bank,More Provident Funds Ltd., or EWB.More, as lender. The EWB Credit FacilityTerm Loan Agreement with More, or the More Term Loan, provided for borrowingsan unsecured term loan to the Company in an aggregate principal amount of up$30,000. On April 20, 2021, the Company drew down $30,000 of borrowings under the More Term Loan. After the deduction of fees and other financing expenses, the Company received net borrowings of approximately $29,000, which the Company used for working capital and other general corporate purposes.

Advances under the More Term Loan mature on September 30, 2024, and bear interest at a rate of 5.20% per year payable quarterly in arrears. The Company has the right to, $40,000,at its option, prepay all or any portion of advances then outstanding together with a prepayment fee equal to the higher of (i) zero, or (ii) the discounted present value of all remaining interest payments that would have been paid by the Company through the maturity date with respect to the principal amount of such advance that is to be prepaid or becomes due and payable pursuant to the Term Loan Agreement. The discounted present value portion of the prepayment fee is calculated by applying a discount rate on the same periodic basis as that on which interest on advances is payable equal to the sum of 2.00% plus the yield to maturity of the most recently issued U.S. Treasury securities having a maturity equal to the remaining average life of the More Term Loan, or if there are no such U.S. Treasury securities, using such implied yield to maturity determined in accordance with the terms of the Term Loan Agreement.

Advances under the More Term Loan are general unsecured obligations of the Company that rank pari passu with all existing and future unsecured unsubordinated indebtedness issued by the Company, rank effectively junior to the Company's secured indebtedness (including unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness, and rank structurally junior to all existing and future indebtedness (including trade payables) incurred by certain of the Company's subsidiaries, financing vehicles or similar facilities.

The Term Loan Agreement contains other terms and conditions, including, without limitation, affirmative and negative covenants such as (i) information reporting, (ii) maintenance of the Company's status as a BDC within the meaning of the 1940 Act, (iii) minimum shareholders’ equity of 60% of the Company’s net asset value as of the year ended December 31, 2020 plus 50% of the net cash proceeds of the sale of certain equity interests by the Company after April 14, 2021, if any, (iv) a minimum asset coverage ratio of not less than 200%, or 150% subject to certain conditions,U.S. SEC relief actions and the Company was requiredCompany's common stock being listed for trading on a national securities exchange, and (v) an unencumbered asset coverage ratio of 1.25 to maintain $2,000 in a demand deposit account with EWB at all times. On April 27, 2017,1.00, provided that (a) first lien senior secured loans and cash represent more than 65% of the EWB Credit Facility expired in accordance with its terms. Through the expiration date,total value of unencumbered assets used by the Company for purposes of the ratio and (b) equity interests or structured products in the aggregate represent less than 15% of the total value of unencumbered assets used by the Company for purposes of the ratio. In addition, the Term Loan Agreement contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, breach of covenant, cross default under other indebtedness or derivative securities of the Company in an outstanding aggregate principal amount of at least $25,000, certain judgments and orders, and certain events of bankruptcy.

Through June 30, 2021, the Company incurred debt issuance costs of $992 in connection with obtaining the More Term Loan, which were recorded as a direct reduction to the outstanding balance of the More Term Loan, which is included in the Company’s consolidated balance sheet as of June 30, 2021 and will amortize to interest expense over the term of the More Term Loan. At June 30, 2021, the unamortized portion of the debt issuance costs was in compliance with all covenants and reporting requirements under the EWB Credit Facility.$929.
47
CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(in thousands, except share and per share amounts)

For the three and nine months ended Septemberperiod from April 14, 2021 through June 30, 2017 and 2016,2021, the components of interest expense, average borrowings, and weighted average interest rate for the EWB Credit FacilityMore Term Loan were as follows:
For the Period from April 14, 2021 through June 30, 2021
Stated interest expense$312 
Amortization of deferred financing costs63 
Total interest expense$375
Weighted average interest rate(1)5.20 %
Average borrowings$30,000 
 
Three Months Ended
September 30,
 Nine Months Ended
September 30,
 2017 2016 2017 2016
Non-usage fee$—
 $46
 $65
 $147
Amortization of deferred financing costs—
 51
 63
 177
Stated interest expense—
 44
 —
 44
Total interest expense$—
 $141
 $128
 $368
Weighted average interest rate(1)—
 8.62% —
 18.25%
Average borrowings$—
 $4,109
 $—
 $1,380
(1)Includes the stated interest expense and non-usage fee, if any, on the unused portion of the EWBMore Term Loan and is annualized for periods covering less than one year.

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, the principal amount outstanding on the Second Amended Citibank Credit Facility was $278,542. 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.
48
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
For the three and six months ended June 30, 2021 and 2020 and the year ended December 31, 2020, the components of interest expense, average borrowings, and weighted average interest rate for the Second Amended Citibank Credit Facility were as follows:
Three Months Ended June 30,Six Months Ended June 30,Year Ended December 31,
20212020202120202020
Stated interest expense$— $802 $— $3,171 $3,171 
Non-usage fee— 111 — 288 288 
Amortization of deferred financing costs— 1,379 — 1,551 1,551 
Total interest expense$— $2,292 $— $5,010 $5,010 
Weighted average interest rate(1)— 3.13 %— 3.72 %3.72 %
Average borrowings$— $110,939 $— $183,774 $91,385 
(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.

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.

As of December 31, 2019, the principal amount outstanding on the Amended MS Credit Facility was $112,500. 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 $2,591 in connection with obtaining and amending the MS Credit Facility, which the Company initially recorded as prepaid expenses and other assets on the Company’s consolidated balance sheets and amortized to interest expense over the term of the Amended MS Credit Facility. On June 5, 2018, unamortized upfront fees were recorded as a direct reduction to the outstanding balance of the Amended MS Credit Facility in the Company’s consolidated balance sheet. All unamortized debt issuance costs were expensed upon the repayment of all amounts outstanding on the Amended MS Credit Facility on May 15, 2020.
49
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
For the three and six months ended June 30, 2021 and 2020 and the year ended December 31, 2020, the components of interest expense, average borrowings, and weighted average interest rate for the Amended MS Credit Facility were as follows:
Three Months Ended June 30,Six Months Ended June 30,Year Ended December 31,
20212020202120202020
Stated interest expense$— $566 $— $1,928 $1,928 
Amortization of deferred financing costs— 1,415 — 1,544 1,544 
Non-usage fee— 20 — 87 87 
Total interest expense$— $2,001 $— $3,559 $3,559 
Weighted average interest rate(1)— 3.81 %— 4.50 %4.50 %
Average borrowings$— $61,609 $— $88,451 $43,984 
(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.
Note 9. Fair Value of Financial Instruments
 
The following table presents fair value measurements of the Company’s portfolio investments and TRS as of SeptemberJune 30, 20172021 and December 31, 2016,2020, according to the fair value hierarchy: 
June 30, 2021(1)December 31, 2020(2)
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Senior secured first lien debt$— $— $1,407,224 $1,407,224 $— $— $1,223,268 $1,223,268 
Senior secured second lien debt— — 141,710 141,710 — — 151,506 151,506 
Collateralized securities and structured products - equity— — 14,095 14,095 — — 12,131 12,131 
Unsecured debt— — 5,508 5,508 — — 5,464 5,464 
Equity3,045 — 92,357 95,402 2,409 — 75,913 78,322 
Short term investments48,484 — — 48,484 73,597 — — 73,597 
Total Investments$51,529 $— $1,660,894 $1,712,423 $76,006 $— $1,468,282 $1,544,288 
 September 30, 2017 December 31, 2016
 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Senior secured first lien debt$—
 $—
 $1,079,520
 $1,079,520
 $—
 $—
 $489,913
 $489,913
Senior secured second lien debt—
 —
 402,459
 402,459
 —
 —
 434,347
 434,347
Collateralized securities and structured products - debt—
 —
 28,284
 28,284
 —
 —
 38,114
 38,114
Collateralized securities and structured products - equity—
 —
 29,588
 29,588
 —
 —
 34,648
 34,648
Unsecured debt—
 —
 7,331
 7,331
 —
 —
 16,851
 16,851
Equity—
 —
 3,863
 3,863
 —
 —
 5,107
 5,107
Short term investments140,810
 —
 —
 140,810
 70,498
 —
 —
 70,498
Total Investments$140,810
 $—
 $1,551,045
 $1,691,855
 $70,498
 $—
 $1,018,980
 $1,089,478
Total return swap$—
 $—
 $—
 $—
 $—
 $—
 $(15,402) $(15,402)
Credit default swap—
 —
 —
 —
 —
 46
 —
 46
Total Derivatives$—
 $—
 $—
 $—
 $—
 $46
 $(15,402) $(15,356)
Total Investments and Derivatives$140,810
 $—
 $1,551,045
 $1,691,855
 $70,498
 $46
 $1,003,578
 $1,074,122
(1)Excludes the Company's $11,615 investment in BCP Great Lakes Fund LP, which was measured at NAV.
(2)Excludes the Company's $12,472 investment in CION SOF and $12,611 investment in BCP Great Lakes Fund LP, which were measured at NAV.
50
CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(in thousands, except share and per share amounts)

The following tables provide a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three and ninesix months ended SeptemberJune 30, 20172021 and 2016:2020:
Three Months Ended
June 30, 2021
Senior Secured First Lien DebtSenior Secured Second Lien DebtCollateralized Securities and Structured Products - EquityUnsecured DebtEquityTotal
Beginning balance, March 31, 2021$1,255,426 $154,626 $13,840 $5,493 $91,409 $1,520,794 
Investments purchased(2)(3)224,407 614 — — 2,843 227,864 
Net realized (loss) gain(341)— — — 805 464 
Net change in unrealized appreciation (depreciation)4,756 (877)920 11 3,362 8,172 
Accretion of discount2,555 174 — 4 — 2,733 
Sales and principal repayments(3)(79,579)(12,827)(665)— (6,062)(99,133)
Ending balance, June 30, 2021$1,407,224 $141,710 $14,095 $5,508 $92,357 $1,660,894 
Change in net unrealized appreciation (depreciation) on investments still held as of June 30, 2021(1)$6,482 $(815)$920 $11 $4,076 $10,674 
(1)Included in net change in unrealized appreciation (depreciation) on investments in the consolidated statements of operations.
(2)Investments purchased includes PIK interest.
(3)Includes non-cash restructured securities.
Six Months Ended
June 30, 2021
Senior Secured First Lien DebtSenior Secured Second Lien DebtCollateralized Securities and Structured Products - EquityUnsecured DebtEquityTotal
Beginning balance, December 31, 2020$1,223,268 $151,506 $12,131 $5,464 $75,913 $1,468,282 
Investments purchased(2)(3)413,433 1,641 — — 4,141 419,215 
Net realized (loss) gain(1,414)— — — 805 (609)
Net change in unrealized appreciation19,674 1,053 2,782 37 17,560 41,106 
Accretion of discount5,557 341 — 7 — 5,905 
Sales and principal repayments(3)(253,294)(12,831)(818)— (6,062)(273,005)
Ending balance, June 30, 2021$1,407,224 $141,710 $14,095 $5,508 $92,357 $1,660,894 
Change in net unrealized appreciation (depreciation) on investments still held as of June 30, 2021(1)$17,778 $(218)$2,782 $37 $18,507 $38,886 
(1)Included in net change in unrealized appreciation (depreciation) on investments in the consolidated statements of operations.
(2)Investments purchased includes PIK interest.
(3)Includes non-cash restructured securities.
51
 Three Months Ended
September 30, 2017
 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 Return
Swap
 Total
Beginning balance, June 30, 2017$1,062,513
 $413,690
 $29,113
 $30,190
 $—
 $3,554
 $—
 $1,539,060
Investments purchased215,514
 61,505
 —
 —
 7,331
 853
 —
 285,203
Net realized (loss) gain(5,600) 2,805
 (5) —
 —
 —
 67
 (2,733)
Net change in unrealized appreciation (depreciation)5,400
 (3,079) 253
 (328) (2) (544) —
 1,700
Accretion of discount1,825
 690
 13
 —
 2
 —
 —
 2,530
Sales and principal repayments(200,132) (73,152) (1,090) (274) —
 —
 (67) (274,715)
Ending balance, September 30, 2017$1,079,520
 $402,459
 $28,284
 $29,588
 $7,331
 $3,863
 $—
 $1,551,045
Change in net unrealized appreciation (depreciation) on investments still held as of September 30, 2017(1)$1,205
 $(1,434) $253
 $(328) $(2) $(544) $—
 $(850)
(1)Included in net change in unrealized appreciation on investments in the consolidated statements of operations except where related to the total return swap, which is included in net change in unrealized appreciation on total return swap.
 Nine Months Ended
September 30, 2017
 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 Return
Swap
 Total
Beginning balance, December 31, 2016$489,913
 $434,347
 $38,114
 $34,648
 $16,851
 $5,107
 $(15,402) $1,003,578
Investments purchased951,502
 179,814
 —
 —
 8,420
 1,025
 —
 1,140,761
Net realized (loss) gain(8,883) 4,256
 2
 (451) 163
 —
 (13,789) (18,702)
Net change in unrealized appreciation (depreciation)10,240
 564
 823
 1,116
 437
 (2,269) 15,402
 26,313
Accretion of discount4,768
 1,940
 60
 —
 31
 —
 —
 6,799
Sales and principal repayments(368,020) (218,462) (10,715) (5,725) (18,571) —
 13,789
 (607,704)
Ending balance, September 30, 2017$1,079,520
 $402,459
 $28,284
 $29,588
 $7,331
 $3,863
 $—
 $1,551,045
Change in net unrealized appreciation (depreciation) on investments still held as of September 30, 2017(1)$10,033
 $1,612
 $596
 $1,116
 $(2) $(2,269) $—
 $11,086
(1)Included in net change in unrealized appreciation on investments in the consolidated statements of operations except where related to the total return swap, which is included in net change in unrealized appreciation on total return swap.

CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(in thousands, except share and per share amounts)

Three Months Ended
June 30, 2020
Senior Secured First Lien DebtSenior Secured Second Lien DebtCollateralized Securities and Structured Products - EquityUnsecured DebtEquityTotal
Beginning balance, March 31, 2020$1,274,325 $201,165 $10,972 $4,800 $46,455 $1,537,717 
Investments purchased(2)(3)59,458 558 — — 8,106 68,122 
Net realized loss(10,290)(2)— — — (10,292)
Net change in unrealized appreciation (depreciation)11,588 1,408 733 (4)(3,869)9,856 
Accretion of discount1,580 252 — 4 — 1,836 
Sales and principal repayments(3)(98,405)(10,183)(413)— — (109,001)
Ending balance, June 30, 2020$1,238,256 $193,198 $11,292 $4,800 $50,692 $1,498,238 
Change in net unrealized appreciation (depreciation) on investments still held as of June 30, 2020(1)$1,623 $1,408 $733 $(4)$(3,869)$(109)
(1)Included in net change in unrealized appreciation (depreciation) on investments in the consolidated statements of operations.
(2)Investments purchased includes PIK interest.
(3)Includes non-cash restructured securities.
Six Months Ended
June 30, 2020
Senior Secured First Lien DebtSenior Secured Second Lien DebtCollateralized Securities and Structured Products - DebtCollateralized Securities and Structured Products - EquityUnsecured DebtEquityTotal
Beginning balance, December 31, 2019$1,351,767 $248,253 $7,212 $14,182 $4,900 $56,886 $1,683,200 
Investments purchased(2)(3)236,612 912 — — — 8,717 246,241 
Net realized loss(14,485)(1)— — — — (14,486)
Net change in unrealized depreciation(73,442)(15,807)— (2,287)(108)(14,911)(106,555)
Accretion of discount6,269 740 — — 8 — 7,017 
Sales and principal repayments(3)(268,465)(40,899)(7,212)(603)— — (317,179)
Ending balance, June 30, 2020$1,238,256 $193,198 $— $11,292 $4,800 $50,692 $1,498,238 
Change in net unrealized depreciation on investments still held as of June 30, 2020(1)$(74,886)$(15,261)$— $(2,287)$(108)$(14,911)$(107,453)
(1)Included in net change in unrealized appreciation (depreciation) on investments in the consolidated statements of operations.
(2)Investments purchased includes PIK interest.
(3)Includes non-cash restructured securities.
52
 Three Months Ended
September 30, 2016
 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 Return
Swap
 Total
Beginning balance, June 30, 2016$168,798
 $431,875
 $40,288
 $34,397
 $28,275
 $72
 $(27,601) $676,104
Investments purchased255,919
 40,108
 —
 —
 —
 5,540
 —
 301,567
Net realized gain153
 226
 —
 —
 —
 —
 8,188
 8,567
Net change in unrealized appreciation (depreciation)2,372
 8,736
 1,625
 848
 1,369
 (2) 9,527
 24,475
Accretion of discount339
 208
 27
 —
 32
 —
 —
 606
Sales and principal repayments(14,022) (21,721) (5,000) (856) —
 —
 (8,188) (49,787)
Ending balance, September 30, 2016$413,559
 $459,432
 $36,940
 $34,389
 $29,676
 $5,610
 $(18,074) $961,532
Change in net unrealized appreciation (depreciation) on investments still held as of September 30, 2016(1)$1,987
 $8,712
 $1,625
 $848
 $1,369
 $(2) $9,868
 $24,407
(1)Included in net change in unrealized appreciation on investments in the consolidated statements of operations except where related to the total return swap, which is included in net change in unrealized appreciation on total return swap.
 Nine Months Ended
September 30, 2016
 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 Return
Swap
 Total
Beginning balance, December 31, 2015$104,187
 $453,713
 $41,663
 $24,604
 $26,740
 $—
 $(34,900) $616,007
Investments purchased337,712
 94,931
 —
 10,000
 2,704
 5,615
 —
 450,962
Net realized gain268
 799
 —
 —
 11
 —
 23,799
 24,877
Net change in unrealized appreciation (depreciation)991
 10,395
 195
 2,169
 2,842
 (5) 16,826
 33,413
Accretion of discount692
 574
 82
 —
 94
 —
 —
 1,442
Sales and principal repayments(30,291) (100,980) (5,000) (2,384) (2,715) —
 (23,799) (165,169)
Ending balance, September 30, 2016$413,559
 $459,432
 $36,940
 $34,389
 $29,676
 $5,610
 $(18,074) $961,532
Change in net unrealized (depreciation) appreciation on investments still held as of September 30, 2016(1)$(421) $8,495
 $135
 $2,169
 $2,842
 $(5) $14,399
 $27,614
(1)Included in net change in unrealized appreciation on investments in the consolidated statements of operations except where related to the total return swap, which is included in net change in unrealized appreciation on total return swap.
CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(in thousands, except share and per share amounts)

Significant Unobservable Inputs
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of investments as of SeptemberJune 30, 20172021 and December 31, 20162020 were as follows:
June 30, 2021
Fair ValueValuation Techniques/
Methodologies		Unobservable
Inputs		RangeWeighted Average(1)
Senior secured first lien debt$1,068,244 Discounted Cash FlowDiscount Rates5.5%—30.7%10.1%
276,321 Broker QuotesBroker QuotesN/AN/A
26,496 Market Comparable ApproachRevenue Multiple1.90xN/A
25,827 EBITDA Multiple4.50x—10.50x8.09x
10,336 Other(2)Other(2)N/AN/A
Senior secured second lien debt115,064 Discounted Cash FlowDiscount Rates8.0%—18.0%10.5%
26,538 Broker QuotesBroker QuotesN/AN/A
108 Market Comparable ApproachEBITDA Multiple7.75xN/A
Collateralized securities and structured products - equity14,095 Discounted Cash FlowDiscount Rates10.5%—17.0%12.3%
Unsecured debt5,508 Discounted Cash FlowDiscount Rates16.4%N/A
Equity21,604 Market Comparable ApproachEBITDA Multiple4.50x—32.50x12.73x
19,077 Revenue Multiple0.60x—2.29x1.46x
10,422 $ per kW$325.00N/A
38,627 Other(2)Other(2)N/AN/A
2,286 Discount for Lack of MarketabilityExpected Volatility30.0%N/A
339 Broker QuotesBroker QuotesN/AN/A
2 Options Pricing ModelExpected Volatility70.0%—85.0%70%
Total$1,660,894 
(1)Weighted average amounts are based on the estimated fair values.
(2)Fair value is based on the expected outcome of proposed corporate transactions and/or other factors.
53
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
  September 30, 2017
  Fair Value 
Valuation Techniques/
Methodologies
 
Unobservable
Inputs
 Range Weighted Average(1)
Senior secured first lien debt $697,598
 Discounted Cash Flow Discount Rates 5.7% - 51.9% 9.8%
  361,263
 Broker Quotes Broker Quotes N/A N/A
  20,659
 Market Comparable Approach EBITDA Multiple 3.50x - 9.00x 6.45x
     Revenue Multiple 0.75x - 1.00x 0.88x
Senior secured second lien debt 204,912
 Broker Quotes Broker Quotes N/A N/A
  188,147
 Discounted Cash Flow Discount Rates 8.3% - 26.8% 10.4%
  9,400
 Market Comparable Approach EBITDA Multiple 7.50x - 8.50x 7.74x
Collateralized securities and structured products - debt 28,284
 Discounted Cash Flow Discount Rates 7.5% - 11.0% 9.9%
Collateralized securities and structured products - equity 29,588
 Discounted Cash Flow Discount Rates 14.0% - 15.0% 14.7%
Unsecured debt 7,331
 Discounted Cash Flow Discount Rates N/A 13.1%
Equity 3,827
 Market Comparable Approach EBITDA Multiple 4.75x - 20.00x 7.82x
  

  Revenue Multiple 0.50x - 0.75x 0.57x
  36
 Options Pricing Model Expected Volatility 31.0% - 32.0% 31.5%
Total $1,551,045
            
(1)Weighted average amounts are based on the estimated fair values.
December 31, 2020
Fair ValueValuation Techniques/
Methodologies		Unobservable
Inputs		RangeWeighted Average(1)
Senior secured first lien debt$881,684 Discounted Cash FlowDiscount Rates5.5%—36.2%11.0%
305,974 Broker QuotesBroker QuotesN/AN/A
21,920 Market Comparable ApproachRevenue Multiple2.33xN/A
9,361 EBITDA Multiple2.50xN/A
4,329 Other(2)Other(2)N/AN/A
Senior secured second lien debt121,865 Discounted Cash FlowDiscount Rates8.7%—17.3%11.9%
25,763 Broker QuotesBroker QuotesN/AN/A
2,305 Market Comparable ApproachEBITDA Multiple4.75xN/A
1,573 Revenue Multiple0.20xN/A
Collateralized securities and structured products - equity12,131 Discounted Cash FlowDiscount Rates12.0%—18.0%13.5%
Unsecured debt5,464 Discounted Cash FlowDiscount Rates16.5%N/A
Equity39,644 Market Comparable ApproachEBITDA Multiple3.00x—18.50x10.13x
11,634 Revenue Multiple0.20x—2.33x1.56x
7,988 $ per kW$271.50N/A
16,481 Discounted Cash FlowDiscount Rates18.5%N/A
163 Broker QuotesBroker QuotesN/AN/A
3 Options Pricing ModelExpected Volatility60.0%—70.0%70.0%
Total$1,468,282 
  December 31, 2016
  Fair Value 
Valuation Techniques/
Methodologies
 
Unobservable
Inputs
 Range Weighted Average(1)
Senior secured first lien debt $417,736
 Discounted Cash Flow Discount Rates 6.0% - 21.3% 16.5%
  61,846
 Broker Quotes Broker Quotes N/A N/A
  10,331
 Market Comparable Approach EBITDA Multiple 4.00x - 6.00x 4.78x
Senior secured second lien debt 291,189
 Discounted Cash Flow Discount Rates 8.5% - 20.6% 10.5%
  129,219
 Broker Quotes Broker Quotes N/A N/A
  13,939
 Market Comparable Approach EBITDA Multiple 6.50x - 9.50x 8.09x
     Revenue Multiple 0.65x - 0.90x 0.65x
Collateralized securities and structured products - debt 38,114
 Discounted Cash Flow Discount Rates 7.8% - 11.0% 10.1%
Collateralized securities and structured products - equity 34,648
 Discounted Cash Flow Discount Rates 9.3% - 17.0% 13.8%
Unsecured debt 16,851
 Broker Quotes Broker Quotes N/A N/A
Equity 4,946
 Market Comparable Approach EBITDA Multiple 3.75x - 10.50x 7.23x
  161
 Options Pricing Model Expected Volatility N/A 36.2%
Total return swap (1,002) Discounted Cash Flow Discount Rates 5.1% - 14.6% 7.3%
  (14,400) Broker Quotes Broker Quotes N/A N/A
Total $1,003,578
            
(1)Weighted average amounts are based on the estimated fair values.
(1)Weighted average amounts are based on the estimated fair values.
(2)Fair value is based on the expected outcome of proposed corporate transactions and/or other factors.
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 equity, and total return swapequity 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.
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(in thousands, except share and per share amounts)

Note 10. General and Administrative Expense
General and administrative expense consisted of the following items for the three and ninesix months ended SeptemberJune 30, 20172021 and 2016:2020 and the year ended December 31, 2020:
Three Months Ended June 30,Six Months Ended June 30,Year Ended December 31,
20212020202120202020
Professional fees$1,213 $613 $2,478 $910 $1,490 
Transfer agent expense253 260 675 655 1,189 
Valuation expense269 285 521 561 999 
Accounting and administration costs175 137 412 283 680 
Printing and marketing expense355 103 399 118 378 
Insurance expense137 115 269 223 489 
Director fees and expenses111 113 214 229 450 
Dues and subscriptions27 67 196 149 342 
Other expenses27 22 92 57 336 
Total general and administrative expense$2,567 $1,715 $5,256 $3,185 $6,353 
54
 Three Months Ended
September 30,		 Nine Months Ended
September 30,
 2017 2016 2017 2016
Valuation expense$463
 $125
 $989
 $350
Transfer agent expense321
 307
 947
 926
Professional fees147
 680
 943
 1,284
Dues and subscriptions223
 177
 630
 621
Director fees and expenses125
 69
 327
 207
Insurance expense102
 105
 309
 271
Printing and other related costs59
 177
 291
 520
Due diligence fees87
 120
 145
 401
Other expenses276
 132
 639
 364
Total general and administrative expense$1,803
 $1,892
 $5,220
 $4,944
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(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 SeptemberJune 30, 20172021 and December 31, 2016,2020, the Company’s unfunded commitments were as follows:
Unfunded Commitments September 30, 2017(1) December 31, 2016(1)
DFC Global Facility Borrower II LLC(2) $22,800
 $—
Lonestar Prospects, Ltd.(2) 18,985
 —
CF Entertainment Inc. 5,000
 —
Accruent, LLC(2) 4,238
 —
Ministry Brands, LLC(2) 3,537
 5,274
Moss Holding Company(2) 3,278
 —
Visual Edge Technology, Inc.(2) 2,878
 —
Elemica Holdings, Inc.(2) 2,500
 2,500
Studio Movie Grill Holdings, LLC(2) 2,156
 4,127
PDI TA Holdings, Inc.(2) 1,833
 —
Woodstream Corporation(2) 1,553
 —
Teledoc, Inc.(2) 1,250
 —
Island Medical Management Holdings, LLC(2) 1,188
 —
Adams Publishing Group, LLC 1,136
 —
Ivy Hill Middle Market Credit Fund VIII, Ltd.(2) 1,111
 1,111
GTCR-Ultra Acquisition, Inc.(2) 992
 —
Covenant Surgical Partners, Inc.(2) 562
 —
Frontline Technologies Group Holdings LLC(2) 540
 —
American Media, Inc.(2) 296
 711
Tennessee Merger Sub, Inc.(3) —
 10,254
ABG Intermediate Holdings 2 LLC —
 1,119
Total $75,833
 $25,096
(1)Unless otherwise noted, the funding criteria for these unfunded commitments had not been met at the date indicated.
CĪON Investment Corporation
Unfunded CommitmentsJune 30, 2021(1)December 31, 2020(1)
Genesis Healthcare, Inc.$35,000 $— 
West Dermatology Management Holdings, LLC7,655 7,655 
Williams Industrial Services Group, Inc.5,000 5,000 
Rogers Mechanical Contractors, LLC4,808 — 
BCP Great Lakes Fund LP3,406 2,135 
Instant Web, LLC2,704 2,704 
Geon Performance Solutions, LLC2,586 2,586 
Coyote Buyer, LLC2,500 2,500 
Appalachian Resource Company, LLC2,500 2,500 
Moss Holding Company2,232 2,232 
Foundation Consumer Healthcare, LLC2,094 4,211 
NWN Parent Holdings LLC1,800 — 
Anthem Sports & Entertainment Inc.1,750 1,333 
Extreme Reach, Inc.1,744 1,744 
Mimeo.com, Inc.1,250 1,000 
AMCP Staffing Intermediate Holdings III, LLC1,142 1,370 
RA Outdoors, LLC1,049 — 
Invincible Boat Company798 — 
CircusTrix Holdings, LLC180 2,898 
American Media, LLC85 — 
Palmetto Solar, LLC— 3,262 
Total$80,283 $43,130 
Notes to Consolidated Financial Statements(1)(unaudited)Unless otherwise noted, the funding criteria for these unfunded commitments had not been met at the date indicated.
September 30, 2017
(in thousands, except share and per share amounts)


(2)As of November 9, 2017, the Company's unfunded commitments were to portfolio companies DFC Global Facility Borrower II LLC, Lonestar Prospects, Ltd., Discovery DJ Holdings, LLC, Moss Holding Company, Elemica Holdings, Inc., Ministry Brands, LLC, Studio Movie Grill Holdings, LLC, Woodstream Corp., Teladoc, Inc., Island Medical Management Holdings, LLC, Visual Edge Technology, Inc., Ivy Hill Middle Market Credit Fund VIII, Ltd., VLS Recovery Services, LLC, GTCR-Ultra Acquisition, Inc., Pathway Partners Vet Management Company, LLC, PDI TA Holdings, Inc., Frontline Technologies Group Holdings LLC, Covenant Surgical Partners, Inc., Accruent, LLC and American Media, Inc., in the amount of $22,800, $18,985, $4,706, $3,278, $2,500, $1,865, $1,608, $1,553, $1,250, $1,188, $1,151, $1,111, $1,108, $992, $906, $815, $540, $459, $157 and $154, respectively. In addition, subsequent to September 30, 2017, the Company entered into unfunded commitments of $12,171 and $3,780 to Centene Corp. and Itron, Inc., respectively.
(3)
As of December 31, 2016, such commitment was subject to the execution of a definitive loan agreement and the consummation of the underlying corporate transaction, and conditional upon receipt of all necessary shareholder, regulatory and other applicable approvals. Prior to September 30, 2017, the unfunded commitment was terminated.
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 SeptemberJune 30, 20172021 and December 31, 2016,2020, refer to the table above and the consolidated schedules of investments. As of August 5, 2021, the Company was committed, upon the satisfaction of certain conditions, to fund an additional $85,059.
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.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’sCompany'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.
55
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
June 30, 2021
(in thousands, except share and per share amounts)
Note 12. Fee Income
Fee income consists of commitmentamendment fees, capital structuring and other fees, and amendmentadministrative agent fees. The following table summarizes the Company’s fee income for the three and ninesix months ended SeptemberJune 30, 20172021 and 2016:2020 and the year ended December 31, 2020:
Three Months Ended
June 30,		Six Months Ended
June 30,		Year Ended
December 31,
20212020202120202020
Capital structuring and other fees$790 $109 $1,084 $224 $968 
Amendment fees90 628 674 1,117 3,550 
Administrative agent fees— — 55 — 25 
Total$880 $737 $1,813 $1,341 $4,543 
 Three Months Ended
September 30,		 Nine Months Ended
September 30,
 2017 2016 2017 2016
Amendment fees$984
 $112
 $1,979
 $156
Commitment fees182
 42
 672
 293
Total$1,166
 $154
 $2,651
 $449
ForAdministrative agent fees are recurring income as long as the three and nine months ended September 30, 2017 and 2016,Company remains the administrative agent for the related investment. Income from all fee incomeother fees was non-recurring.
CĪON Investment Corporation
Notes to Consolidated Financial Statements(unaudited)
September 30, 2017
(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 ninesix months ended SeptemberJune 30, 20172021 and 2016:2020 and the year ended December 31, 2020:
Six Months Ended
June 30,		Year Ended
December 31,
202120202020
Per share data:(1)
Net asset value at beginning of period$7.75 $8.40 $8.40 
Results of operations:
Net investment income0.32 0.31 0.69 
Net realized and net change in unrealized gains (losses)(2)0.36 (1.10)(0.78)
Net increase (decrease) in net assets resulting from operations(2)0.68 (0.79)(0.09)
Shareholder distributions:
Distributions from net investment income(0.26)(0.18)(0.56)
Net decrease in net assets resulting from shareholders' distributions(0.26)(0.18)(0.56)
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$8.17 $7.43 $7.75 
Shares of common stock outstanding at end of period113,297,189 113,311,355 113,293,723 
Total investment return-net asset value(5)9.00 %(9.47)%(0.94)%
Net assets at beginning of period$878,256 $952,563 $952,563 
Net assets at end of period$925,880 $842,430 $878,256 
Average net assets$903,354 $882,484 $875,846 
Ratio/Supplemental data:
Ratio of net investment income to average net assets(6)4.02 %4.03 %8.99 %
Ratio of gross operating expenses to average net assets(6)(7)4.21 %5.21 %9.72 %
Ratio of net operating expenses to average net assets(6)4.21 %5.21 %9.72 %
Portfolio turnover rate(8)18.43 %12.42 %22.99 %
Asset coverage ratio(9)2.15 2.13 2.21 
(1)The per share data for the six months ended June 30, 2021 and 2020 and the year ended December 31, 2020 was derived by using the weighted average shares of common stock outstanding during each period.
56
  Nine Months Ended
September 30,
  2017 2016
Per share data:(1)    
Net asset value at beginning of period $9.11
 $8.71
Results of operations:    
Net investment income(2) 0.52
 0.30
Net realized gain and net change in unrealized appreciation on investments(3) 0.06
 0.17
Net realized gain and net change in unrealized appreciation on total return swap 0.01
 0.39
Net increase in net assets resulting from operations(3) 0.59
 0.86
Shareholder distributions:    
Distributions from net investment income (0.50) (0.30)
Distributions from net realized gains (0.05) (0.25)
Net decrease in net assets from shareholders' distributions (0.55) (0.55)
Capital share transactions:    
Issuance of common stock above net asset value(4) —
 —
Repurchases of common stock(5) —
 —
Net increase in net assets resulting from capital share transactions —
 —
Net asset value at end of period $9.15
 $9.02
Shares of common stock outstanding at end of period 114,440,741
 107,920,075
Total investment return-net asset value(6) 6.68% 10.25%
Net assets at beginning of period $999,763
 $904,326
Net assets at end of period $1,047,187
 $973,191
Average net assets $1,020,019
 $922,031
Ratio/Supplemental data:    
Ratio of net investment income to average net assets(7) 5.69% 3.47%
Ratio of gross operating expenses to average net assets(8) 4.28% 2.37%
Ratio of expenses (before recoupment of expense support) to average net assets(9) 4.28% 2.30%
Ratio of net expense recoupments to average net assets(10) —
 0.07%
Ratio of net operating expenses to average net assets 4.28% 2.37%
Portfolio turnover rate(11) 46.07% 20.04%
Asset coverage ratio(12) 2.66
 2.85
(1)The per share data for the nine months ended September 30, 2017 and 2016 was derived by using the weighted average shares of common stock outstanding during each period.
(2)Net investment income per share includes expense support recoupments to CIG of $0.01 per share for the nine months ended September 30, 2016.
(3)The amount shown for net realized gain and net change in unrealized appreciation 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 increase in net assets resulting from operations in this schedule may vary from the consolidated statements of operations.
(4)The continuous issuance of shares of common stock may cause 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, 2017 and 2016.
CĪON Investment Corporation
Notes to Consolidated Financial Statements (unaudited)
SeptemberJune 30, 20172021
(in thousands, except share and per share amounts)

(5)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, 2017 and 2016.
(6)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.
(7)Excluding the impact of the recoupment of expense support by CIG during the period, the ratio of net investment income to average net assets would have been 5.69% and 3.54% for the nine months ended September 30, 2017 and 2016, respectively.
(8)Ratio of gross operating expenses to average net assets does not include expense support provided by CIG and/or AIM, if any.
(9)The ratio of gross expense recoupments to CIG to average net assets for the nine months ended September 30, 2017 and 2016 was 0.00% and (0.07%), respectively.
(10)In order to record an obligation to reimburse CIG for expense support provided, the ratio of gross operating expenses to average net assets, when considering the recoupment, in the period in which recoupment is sought, cannot exceed the ratio of gross operating expenses to average net assets for the period when the expense support was provided. For purposes of this calculation, gross operating expenses include all expenses borne by the Company, except for offering and organizational costs, base management fees, incentive fees, administrative services expenses, other general and administrative expenses owed to CIM and its affiliates and interest expense. For the nine months ended September 30, 2017 and 2016, the ratio of gross operating expenses to average net assets, when considering recoupment of expense support to CIG, if any, was 0.46% and 0.43%, respectively.
(11)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.
(12)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. For purposes of the asset coverage ratio test applicable to the Company as a BDC, the Company treated the outstanding TRS notional amount at the end of the period, less the total amount of cash collateral posted by Flatiron under the TRS, as senior securities. 

(2)The amount shown for net realized and net change in unrealized gains (losses) 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 increase (decrease) 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 six months ended June 30, 2021 and 2020 and the year ended December 31, 2020. The Company's follow-on continuous public offering ended on January 25, 2019.
(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 six months ended June 30, 2021 and 2020 and the year ended December 31, 2020.
(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. Total returns covering less than a full year are not annualized.
(6)Ratio is not annualized.
(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.
57

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. In addition, the term "portfolio companies" refers to companies in which we have invested, either directly or indirectly through our 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, 2016.2020. 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;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 CIMCIM's and AIMAIM'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 AIM and their respectiveits 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;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.
58

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, including corporate bonds and long-term subordinated loans, referred to as mezzanine loans, and equity, of private and thinly tradedthinly-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 minorityequity interests in the form of common or preferred equitystock 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. We and CIM previously engaged AIM to act as our investment sub-adviser. On November 1, 2017,13, 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, 2017.2020. On November 1, 2016,April 5, 2021, our board of directors, including a majority of directors who are not interested persons, approved the renewal of theamended and restated investment sub-advisoryadvisory agreement with CIM, which was subsequently approved by shareholders on August 9, 2021 (as described in further detail below). We and CIM previously engaged AIM for a period of twelve months commencing December 17, 2016.to act as our investment sub-adviser.
On July 11, 2017, the members of CIM entered into the Third Amended CIM LLC Agreement with AIM 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, will shareshares 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 will ultimately resultresults 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, 2017.2017, 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 continuesAIM's investment professionals continue to perform identicalcertain services for CIM and us, including, without limitation, identifying investment opportunities for approval by CIM.CIM's investment committee. AIM willis not be paid a separate fee in exchange for such services, but will beis 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.
On April 5, 2021, our board of directors unanimously approved a number of steps in connection with the commencement of plans to pursue a potential listing of our shares of common stock on a national securities exchange. We have been cleared to file an application, and have applied, to list our shares of common stock on the NYSE under the symbol “CION”. Subject to market conditions, final board approvals and NYSE approval, we currently expect to seek the commencement of trading as part of the Listing in the period following receipt of shareholder approval of the proposals to be considered at our reconvened annual meeting, as described in our definitive proxy statement filed on May 13, 2021. There can be no assurance that we will be able to complete the Listing in any certain timeframe or at all.
In connection with the potential Listing, our board of directors also approved an amended and restated investment advisory agreement with CIM. A description of the amended and restated investment advisory agreement is set forth in Proposal 3 in our definitive proxy statement filed on May 13, 2021. The amended and restated investment advisory agreement is effective upon the Listing, except for the change to the calculation of the subordinated incentive fee payable to CIM that expresses the hurdle rate required for CIM to earn, and be paid, the incentive fee as a percentage of our net assets rather than adjusted capital, which is not dependent upon the Listing. The amended and restated investment advisory agreement was approved by shareholders on August 9, 2021 at our reconvened 2021 annual meeting of shareholders. As a result, on August 10, 2021, we and CIM entered into the amended and restated investment advisory agreement in order to implement this change to the calculation of the subordinated incentive fee payable to CIM.
59

We seek to meet our investment objective by utilizing the experienced management teamsteam of both CIM, and AIM, which includes theirits access to the relationships and human capital of Apollo, CIG and ICON Capital,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$75 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 or diligence 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 and subordinated incentive fees on income under the investment advisory agreement and interest expense on our financing arrangements. Our investment advisory fee compensatesfees 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, initially had negatively impacted, and may again 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 to our shareholders. 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 certain of our investments.
COVID-19 initially had adverse effects on our investment income and may again have adverse effects in the future. 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 initially had 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 initially limited our investment originations, which may occur again in the future, and may also have 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 certain of our portfolio companies.
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Portfolio Investment Activity for the Three Months Ended SeptemberJune 30, 20172021 and 20162020 and the Year Ended December 31, 2020
The following table summarizes our investment activity, excluding short term investments and PIK securities, for the three months ended SeptemberJune 30, 20172021 and 2016:2020 and the year ended December 31, 2020:
 Three Months Ended
September 30,
 2017 2016Three Months Ended
June 30,		Year Ended
December 31,
Net Investment Activity Investment Portfolio Total Return Swap Total Investment Portfolio Total Return Swap TotalNet Investment Activity202120202020
Purchases and drawdowns 
 
 
 
 
 
Purchases and drawdowns
Senior secured first lien debt $215,196
 $—
 $215,196
 $255,919
 $211
 $256,130
 Senior secured first lien debt$221,361 $24,246 $347,992 
Senior secured second lien debt 61,464
 —
 61,464
 40,108
 —
 40,108
 Senior secured second lien debt— — 4,375 
Unsecured debt 7,331
 —
 7,331
 —
 —
 —
Equity 853
 —
 853
 5,540
 —
 5,540
 Equity737 1,626 7,266 
Sales and principal repayments (274,648) —
 (274,648) (41,599) (245,657) (287,256)Sales and principal repayments(96,828)(74,851)(543,167)
Net portfolio activity $10,196
 $—
 $10,196
 $259,968
 $(245,446) $14,522
Net portfolio activity$125,270 $(48,979)$(183,534)
The following table summarizestables summarize the composition of our investment portfolio at amortized cost and fair value as of SeptemberJune 30, 2017:2021 and December 31, 2020:
June 30, 2021
Investments Cost(1)Investments Fair
Value		Percentage of
Investment
Portfolio
Senior secured first lien debt$1,430,846 $1,407,224 84.0 %
Senior secured second lien debt160,631 141,710 8.5 %
Collateralized securities and structured products - equity14,487 14,095 0.8 %
Unsecured debt5,675 5,508 0.3 %
Equity100,712 107,017 6.4 %
Subtotal/total percentage1,712,351 1,675,554 100.0 %
Short term investments(2)48,484 48,484 
Total investments$1,760,835 $1,724,038 
Number of portfolio companies132 
Average annual EBITDA of portfolio companies$61.1 million
Median annual EBITDA of portfolio companies$49.0 million
Purchased at a weighted average price of par97.91 %
Gross annual portfolio yield based upon the purchase price(3)8.50 %
  September 30, 2017
  Investments Cost(1) 
Investments Fair
Value
 
Percentage of
Investment
Portfolio
Senior secured first lien debt $1,069,271
 $1,079,520
 69.6%
Senior secured second lien debt 404,788
 402,459
 26.0%
Collateralized securities and structured products - debt 28,818
 28,284
 1.8%
Collateralized securities and structured products - equity 31,537
 29,588
 1.9%
Unsecured debt 7,333
 7,331
 0.5%
Equity 5,857
 3,863
 0.2%
Subtotal/total percentage 1,547,604
 1,551,045
 100.0%
Short term investments(2) 140,810
 140,810
  
Total investments $1,688,414
 $1,691,855
  
Number of portfolio companies   161
Average annual EBITDA of portfolio companies $82.9 million 
Median annual EBITDA of portfolio companies $49.0 million 
Purchased at a weighted average price of par     95.95%
Gross annual portfolio yield based upon the purchase price(3)     9.15%
(1)(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.


The following table summarizes the composition of our investment portfolio at amortized cost for debt investments and fair valuecost 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 underlying TRS loans portfolio at notional amountexpenses and fair value asall sales commissions and dealer manager fees and does not consider the cost of December 31, 2016:leverage.
61

December 31, 2016
Investment Portfolio Total Return Swap TotalDecember 31, 2020
Investments Cost(1) 
Investments Fair
Value
 
Percentage of
Investment
Portfolio
 Notional Amount of Underlying TRS Loans Fair Value of Underlying TRS Loans Percentage of Underlying TRS Loans Cost/Notional Amount(1) Fair Value PercentageInvestments Cost(1)Investments Fair
Value		Percentage of
Investment
Portfolio
Senior secured first lien debt$489,904
 $489,913
 48.1% $351,747
 $341,194
 86.9% $841,651
 $831,107
 58.9%Senior secured first lien debt$1,266,564 $1,223,268 81.8 %
Senior secured second lien debt437,240
 434,347
 42.6% 56,100
 51,251
 13.1% 493,340
 485,598
 34.4%Senior secured second lien debt171,480 151,506 10.1 %
Collateralized securities and structured products - debt39,471
 38,114
 3.7% —
 —
 —
 39,471
 38,114
 2.7%
Collateralized securities and structured products - equity37,713
 34,648
 3.4% —
 —
 —
 37,713
 34,648
 2.5%Collateralized securities and structured products - equity15,305 12,131 0.8 %
Unsecured debt17,290
 16,851
 1.7% —
 —
 —
 17,290
 16,851
 1.1%Unsecured debt5,668 5,464 0.4 %
Equity4,832
 5,107
 0.5% —
 —
 —
 4,832
 5,107
 0.4%Equity118,638 103,405 6.9 %
Subtotal/total percentage1,026,450
 1,018,980
 100.0% 407,847
 392,445
 100.0% 1,434,297
 1,411,425
 100.0%Subtotal/total percentage1,577,655 1,495,774 100.0 %
Short term investments(2)70,498
 70,498
  
 —
 —
  
 70,498
 70,498
  
Short term investments(2)73,597 73,597  
Total investments$1,096,948
 $1,089,478
   $407,847
 $392,445
   $1,504,795
 $1,481,923
  Total investments$1,651,252 $1,569,371 
Number of portfolio companiesNumber of portfolio companies  
 103
     49
     141(3)
Number of portfolio companies 119 
Average annual EBITDA of portfolio companiesAverage annual EBITDA of portfolio companies $49.9 million    $200.7 million    $94.7 million Average annual EBITDA of portfolio companies$67.3 million
Median annual EBITDA of portfolio companiesMedian annual EBITDA of portfolio companies $42.7 million    $66.0 million    $50.4 million Median annual EBITDA of portfolio companies$53.2 million
Purchased at a weighted average price of parPurchased at a weighted average price of par 95.87%     98.96%     96.73%Purchased at a weighted average price of par98.18 %
Gross annual portfolio yield based upon the purchase price(4) 9.99%     6.73%     9.07%
Gross annual portfolio yield based upon the purchase price(3)Gross annual portfolio yield based upon the purchase price(3)8.28 %
(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 sum of investment portfolio and TRS portfolio companies does not equal the total number of portfolio companies. This is due to 11 portfolio companies being in both the investment and TRS portfolios.
(4)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.
(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.
The following table summarizes the composition of our investment portfolio by the type of interest rate as of SeptemberJune 30, 2017,2021 and December 31, 2020, excluding short term investments of $140,810:$48,484 and $73,597, respectively:
June 30, 2021December 31, 2020
Interest Rate AllocationInvestments CostInvestments Fair ValuePercentage of
Investment
Portfolio		Investments CostInvestments Fair ValuePercentage of
Investment
Portfolio
Floating interest rate investments$1,504,684 $1,465,704 87.5 %$1,347,194 $1,284,282 85.9 %
Fixed interest rate investments109,169 110,355 6.6 %126,962 124,816 8.3 %
Non-income producing equity63,856 65,231 3.9 %66,086 52,505 3.5 %
Other income producing investments34,642 34,264 2.0 %37,413 34,171 2.3 %
Total investments$1,712,351 $1,675,554 100.0 %$1,577,655 $1,495,774 100.0 %
62
  September 30, 2017
Interest Rate Allocation Investments Cost 
Investments Fair
Value
 
Percentage of
Investment
Portfolio
Floating interest rate investments $1,444,100
 $1,446,737
 93.3%
Fixed interest rate investments 66,474
 71,233
 4.6%
Other income producing investments 31,537
 29,588
 1.9%
Non-income producing equity 5,493
 3,487
 0.2%
Total investments $1,547,604
 $1,551,045
 100.0%


The following table summarizes the composition of our investment portfolio and our underlying TRS loans portfolio by the type of interest rate as of December 31, 2016, excluding short term investments of $70,498:

  December 31, 2016
  Investment Portfolio Total Return Swap Total
Interest Rate Allocation Investments Cost 
Investments Fair
Value
 
Percentage of
Investment
Portfolio
 Notional Amount of Underlying TRS Loans Fair Value of Underlying TRS Loans Percentage of Underlying TRS Loans Cost/Notional Amount Fair Value Percentage
Floating interest rate investments $936,846
 $931,214
 91.4% $407,847
 $392,445
 100.0% $1,344,693
 $1,323,659
 93.8%
Fixed interest rate investments 47,059
 48,011
 4.7% —
 —
 —
 47,059
 48,011
 3.4%
Other income producing investments 37,713
 34,648
 3.4% —
 —
 —
 37,713
 34,648
 2.4%
Non-income producing equity 4,832
 5,107
 0.5% —
 —
 —
 4,832
 5,107
 0.4%
Total investments $1,026,450
 $1,018,980
 100.0% $407,847
 $392,445
 100.0% $1,434,297
 $1,411,425
 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 SeptemberJune 30, 2017:
  September 30, 2017
Industry Classification 
Investments at
Fair Value
 
Percentage of
Investment Portfolio
High Tech Industries $229,022
 14.8%
Healthcare & Pharmaceuticals 222,843
 14.4%
Services: Business 209,615
 13.5%
Media: Diversified & Production 116,013
 7.5%
Chemicals, Plastics & Rubber 89,142
 5.8%
Telecommunications 72,967
 4.7%
Services: Consumer 64,137
 4.1%
Media: Advertising, Printing & Publishing 61,147
 3.9%
Consumer Goods: Durable 60,992
 3.9%
Diversified Financials 57,872
 3.7%
Beverage, Food & Tobacco 54,846
 3.5%
Capital Equipment 51,899
 3.3%
Hotel, Gaming & Leisure 45,990
 3.0%
Automotive 40,347
 2.6%
Retail 32,052
 2.1%
Aerospace & Defense 28,811
 1.9%
Banking, Finance, Insurance & Real Estate 27,296
 1.8%
Energy: Oil & Gas 25,904
 1.7%
Consumer Goods: Non-Durable 16,056
 1.0%
Construction & Building 16,048
 1.0%
Transportation: Cargo 9,844
 0.6%
Media: Broadcasting & Subscription 6,450
 0.4%
Forest Products & Paper 5,598
 0.4%
Metals & Mining 3,341
 0.2%
Environmental Industries 2,813
 0.2%
Subtotal/total percentage 1,551,045
 100.0%
Short term investments 140,810
  
Total investments $1,691,855
  


The following table shows the composition of our investment portfolio2021 and our underlying TRS loans portfolio by industry classification and the percentage, by fair value, of the total assets in such industries as of December 31, 2016:2020:
  December 31, 2016
  Investment Portfolio Total Return Swap Total
Industry Classification Investments Fair Value 
Percentage of
Investment Portfolio
 
Fair Value of
Underlying
TRS Loans
 
Percentage of
Underlying
TRS Loans
 Fair Value Percentage
High Tech Industries $217,339
 21.3% $45,351
 11.6% $262,690
 18.6%
Services: Business 126,869
 12.5% 66,733
 17.0% 193,602
 13.7%
Healthcare & Pharmaceuticals 118,337
 11.6% 70,176
 17.9% 188,513
 13.4%
Diversified Financials 72,762
 7.1% —
 —
 72,762
 5.2%
Media: Advertising, Printing & Publishing 54,354
 5.3% 7,328
 1.9% 61,682
 4.4%
Beverage, Food & Tobacco 53,658
 5.3% —
 —
 53,658
 3.8%
Construction & Building 39,137
 3.8% 14,269
 3.6% 53,406
 3.8%
Chemicals, Plastics & Rubber 27,253
 2.7% 25,701
 6.5% 52,954
 3.7%
Capital Equipment 51,155
 5.0% —
 —
 51,155
 3.6%
Hotel, Gaming & Leisure 28,974
 2.8% 21,071
 5.4% 50,045
 3.5%
Retail 18,852
 1.9% 30,801
 7.8% 49,653
 3.5%
Telecommunications 35,411
 3.5% 13,775
 3.5% 49,186
 3.5%
Automotive 39,192
 3.9% —
 —
 39,192
 2.8%
Services: Consumer 9,477
 0.9% 26,278
 6.7% 35,755
 2.5%
Media: Diversified & Production 23,100
 2.3% 7,277
 1.8% 30,377
 2.1%
Banking, Finance, Insurance & Real Estate 17,636
 1.7% 11,547
 2.9% 29,183
 2.1%
Aerospace & Defense 21,780
 2.1% 5,564
 1.4% 27,344
 1.9%
Media: Broadcasting & Subscription 9,776
 1.0% 10,013
 2.6% 19,789
 1.4%
Energy: Oil & Gas 12,803
 1.3% 4,570
 1.2% 17,373
 1.2%
Consumer Goods: Durable 1,000
 0.1% 15,942
 4.1% 16,942
 1.2%
Metals & Mining 11,349
 1.1% 3,528
 0.9% 14,877
 1.1%
Energy: Electricity 13,715
 1.3% —
 —
 13,715
 1.0%
Forest Products & Paper —
 —
 12,521
 3.2% 12,521
 0.9%
Consumer Goods: Non-Durable 8,611
 0.8% —
 —
 8,611
 0.6%
Containers, Packaging & Glass 3,845
 0.4% —
 —
 3,845
 0.3%
Environmental Industries 2,595
 0.3% —
 —
 2,595
 0.2%
Subtotal/total percentage 1,018,980
 100.0% 392,445
 100.0% 1,411,425
 100.0%
Short term investments 70,498
   —
   70,498
  
Total investments $1,089,478
   $392,445
   $1,481,923
  
We do not “control” and are not an “affiliate” of any of our portfolio companies, each as defined in the 1940 Act. In general, under the 1940 Act, we would be presumed to “control” a portfolio company or issuer if we owned 25% or more of its voting securities and would be an “affiliate” of a portfolio company or issuer if we owned 5% or more of its voting securities.
June 30, 2021December 31, 2020
Industry ClassificationInvestments Fair ValuePercentage of
Investment Portfolio		Investments Fair ValuePercentage of
Investment Portfolio
Healthcare & Pharmaceuticals$283,126 16.9 %$298,944 19.9 %
Services: Business268,849 16.0 %211,572 14.0 %
Media: Diversified & Production127,105 7.6 %108,078 7.2 %
Chemicals, Plastics & Rubber124,017 7.4 %141,654 9.5 %
Services: Consumer112,840 6.7 %85,254 5.7 %
Media: Advertising, Printing & Publishing107,481 6.4 %110,083 7.4 %
High Tech Industries73,265 4.4 %55,619 3.7 %
Beverage, Food & Tobacco64,626 3.9 %69,975 4.7 %
Capital Equipment63,679 3.8 %65,752 4.4 %
Banking, Finance, Insurance & Real Estate53,168 3.2 %41,211 2.8 %
Retail45,543 2.7 %29,312 2.0 %
Aerospace & Defense42,331 2.5 %35,751 2.4 %
Consumer Goods: Durable42,219 2.5 %7,417 0.5 %
Telecommunications41,975 2.5 %46,638 3.1 %
Energy: Oil & Gas41,543 2.5 %28,136 1.9 %
Construction & Building41,064 2.5 %34,653 2.3 %
Hotel, Gaming & Leisure33,523 2.0 %21,920 1.5 %
Consumer Goods: Non-Durable32,534 1.9 %15,757 1.1 %
Diversified Financials25,710 1.5 %37,214 2.5 %
Forest Products & Paper21,699 1.3 %21,686 1.4 %
Transportation: Cargo17,960 1.1 %19,001 1.3 %
Metals & Mining11,297 0.7 %10,147 0.7 %
Subtotal/total percentage1,675,554 100.0 %1,495,774 100.0 %
Short term investments48,484  73,597 
Total investments$1,724,038 $1,569,371 
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 SeptemberJune 30, 20172021 and December 31, 2016,2020, ourunfunded commitments amounted to$75,833 and $25,096, respectively. As of November 9, 2017, our unfunded commitments amounted to $83,077.$80,283 and $43,130, respectively. As of August 5, 2021, our unfunded commitments amounted to $85,059. Since these commitments may expire without being drawn upon, unfunded commitments do not necessarily represent future cash requirements or future earning assets for us. For additional informationRefer to the section “Commitments and Contingencies and Off-Balance Sheet Arrangements” for further details on our unfunded commitments, refer to Note 11 to our consolidated financial statements included in this report.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.
63


The following is a description of the conditions associated with each investment rating used in this ratings system:
Investment RatingDescription
1Indicates 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.
2Indicates 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.
3Indicates 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.
4Indicates 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.
5Indicates 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 SeptemberJune 30, 2017,2021 and December 31, 2020, excluding short term investments of $140,810:$48,484 and $73,597, respectively:    
  September 30, 2017
Investment Rating 
Investments
Fair Value
 
Percentage of
Investment Portfolio
1 $—
 —
2 1,282,461
 82.7%
3 207,746
 13.4%
4 53,223
 3.4%
5 7,615
 0.5%
  $1,551,045
 100.0%
The following table summarizes the composition of our investment portfolio and our underlying TRS loans portfolio based on the 1 to 5 investment rating scale at fair value as of December 31, 2016, excluding short term investments of $70,498:
 December 31, 2016
 Investment Portfolio Total Return Swap TotalJune 30, 2021December 31, 2020
Investment Rating 
Investments
Fair Value
 
Percentage of
Investment Portfolio
 Fair Value of Underlying TRS Loans Percentage of Underlying TRS Loans Fair Value PercentageInvestment RatingInvestments
Fair Value		Percentage of
Investment Portfolio		Investments
Fair Value		Percentage of
Investment Portfolio
1 $—
 —
 $—
 —
 $—
 —
1$122,894 7.3 %$2,997 0.2 %
2 963,477
 94.6% 342,620
 87.3% 1,306,097
 92.5%21,265,640 75.5 %1,173,191 78.5 %
3 50,942
 5.0% 34,657
 8.8% 85,599
 6.1%3279,814 16.7 %309,930 20.7 %
4 4,561
 0.4% 12,798
 3.3% 17,359
 1.2%46,394 0.4 %9,210 0.6 %
5 —
 —
 2,370
 0.6% 2,370
 0.2%5812 0.1 %446 — 
 $1,018,980
 100.0% $392,445
 100.0% $1,411,425
 100.0%$1,675,554 100.0 %$1,495,774 100.0 %
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.

64

Current Investment Portfolio

AsThe following table summarizes the composition of November 9, 2017, our investment portfolio excluding our shortat fair value as of August 5, 2021:
Investments Fair
Value		Percentage of
Investment
Portfolio
Senior secured first lien debt$1,403,204 87.7 %
Senior secured second lien debt106,698 6.7 %
Collateralized securities and structured products - equity13,597 0.9 %
Unsecured debt5,508 0.3 %
Equity69,610 4.4 %
Subtotal/total percentage1,598,617 100.0 %
Short term investments(2)141,386 
Total investments$1,740,003 
Number of portfolio companies128 
Average annual EBITDA of portfolio companies$62.3 million
Median annual EBITDA of portfolio companies$49.0 million
Purchased at a weighted average price of par97.24 %
Gross annual portfolio yield based upon the purchase price(2)8.28 %
(1)Short term investments consistedrepresent an investment in a fund that invests in highly liquid investments with average original maturity dates of interests in 161 portfolio companies (72% in senior secured first lien debt, 24% in senior secured second lien debt, 1% in collateralized securities and structured products (comprised of 1% invested in rated debt, 1% invested in non-rated debt and 1% invested in non-rated equity of such securities and products), less than 1% in unsecured debt, and less than 1% in equity) with a total fair value of $1,568,392 with an average and median portfolio company annual EBITDA of $90.0 million and $50.0 million, respectively, at initial investment. As of November 9, 2017, investments in our portfolio, excluding our short term investments, were purchased at a weighted average price of 96.15% of par value. Our estimatedthree months or less.
(2)The gross annual portfolio yield was 9.14% based upon the purchase price of such investments. The estimated gross 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. For the quarter ended September 30, 2017, our total investment return-net asset value was 6.68%. Total investment return-net asset valuefees and does not represent and may be higher than an actual investment return to shareholders because it excludes all sales commissions and dealer manager fees. Total investment return-net asset value is a measureconsider the cost 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 of our consolidated financial statements.leverage.
As of November 9, 2017, our only short term investment was an investment in a U.S. Treasury Obligations Fund of $123,448.
Results of Operations for the Three Months Ended SeptemberJune 30, 20172021 and 20162020
Our results of operations for the three months ended SeptemberJune 30, 20172021 and 20162020 were as follows:
Three Months Ended
September 30,		Three Months Ended
June 30,
2017 201620212020
Investment income$38,378
 $18,733
Investment income$38,021 $35,808 
Net operating expenses16,976
 8,038
Net operating expenses19,335 21,892 
Net investment income21,402
 10,695
Net investment income18,686 13,916 
Net realized (loss) gain on investments and foreign currency(2,788) 379
Net realized gain (loss) on investments and foreign currencyNet realized gain (loss) on investments and foreign currency441 (10,986)
Net change in unrealized appreciation on investments1,700
 14,948
Net change in unrealized appreciation on investments8,842 13,657 
Net realized gain on total return swap67
 8,188
Net change in unrealized appreciation on total return swap—
 9,527
Net increase in net assets resulting from operations$20,381
 $43,737
Net increase in net assets resulting from operations$27,969 $16,587 
Investment Income
For the three months ended SeptemberJune 30, 20172021 and 2016,2020, we generated investment income of $38,378$38,021 and $18,733,$35,808, respectively, consisting primarily of interest income on investments in senior secured debt, collateralized securities and structured products, and unsecured debt of 176123 and 108122 portfolio companies held during each respective period. Our average investment portfolio size, excluding our short term investments, and TRS, increased $703,397,$44,289, from $841,656$1,560,512 for the three months ended SeptemberJune 30, 20162020 to $1,545,053$1,604,801 for the three months ended SeptemberJune 30, 2017, as we deployed2021. Additionally, investments on non-accrual status represented 0.4% of the net proceeds from our financing arrangements and the net proceeds from our follow-on continuous public offering, which commenced on January 25, 2016. We expect ourCompany's investment portfolio on a fair value basis as of June 30, 2021 compared to continue to grow due to the anticipated equity available to us for investment from our follow-on continuous public offering and amounts available under our financing arrangements. As a result, we believe that reported investment income for the three months ended September3.0% as of June 30, 2017 and 2016 is not representative of our stabilized or future performance. Interest income earned by loans underlying the TRS was not included in investment income in the consolidated statements of operations, but rather it was recorded as part of net realized gain (loss) on total return swap. In lieu of extending the expiration date of the TRS beyond April 18, 2017, we entered into a traditional credit facility with Citibank on March 29, 2017.2020.
65

Operating Expenses
The composition of our operating expenses for the three months ended SeptemberJune 30, 20172021 and 20162020 was as follows:
Three Months Ended
June 30,
20212020
Management fees$8,243 $7,929 
Administrative services expense697 806 
General and administrative2,567 1,715 
Interest expense7,828 11,442 
Total operating expenses$19,335 $21,892 
 Three Months Ended
September 30,
 2017 2016
Management fees$7,820
 $5,187
Administrative services expense433
 425
General and administrative1,803
 1,892
Interest expense6,920
 534
Total operating expenses16,976
 8,038
Recoupment of expense support from CIG—
 —
Net operating expenses$16,976
 $8,038


DuringThe decrease in interest expense during the three months ended SeptemberJune 30, 2017, the increase in management fees was a direct result of the increase in our total assets less cash and cash equivalents, while the increase in interest expense2021 was primarily the result of entering into new financing arrangements.

all remaining unamortized debt issuance costs related to the Second Amended Citibank Credit Facility and the Amended MS Credit Facility being expensed upon the repayment of all amounts outstanding on these facilities during the three months ended June 30, 2020.
The composition of our general and administrative expenses for the three months ended SeptemberJune 30, 20172021 and 20162020 was as follows:
Three Months Ended
June 30,
20212020
Professional fees$1,213 $613 
Printing and marketing expense355 103 
Valuation expense269 285 
Transfer agent expense253 260 
Accounting and administration costs175 137 
Insurance expense137 115 
Director fees and expenses111 113 
Dues and subscriptions27 67 
Other expenses27 22 
Total general and administrative expense$2,567 $1,715 
 Three Months Ended
September 30,
 2017 2016
Valuation expense$463
 $125
Transfer agent expense321
 307
Dues and subscriptions223
 177
Professional fees147
 680
Director fees and expenses125
 69
Insurance expense102
 105
Due diligence fees87
 120
Printing and other related costs59
 177
Other expenses276
 132
Total general and administrative expense$1,803
 $1,892


Expense SupportThe increase in general and Recoupmentadministrative expenses was primarily the result of Expense Support

Forhigher professional fees incurred during the three months ended SeptemberJune 30, 20172021 associated with the potential Listing and 2016, CIGhigher printing and AIM did not provide anymarketing expense support or recoup any previously provided expense support. incurred during the three months ended June 30, 2021 associated with shareholder proxy solicitation costs.

Net Investment Income

Our net investment income totaled $21,402$18,686 and $10,695$13,916 for the three months ended SeptemberJune 30, 20172021 and 2016,2020, respectively. The increase in our net investment income was primarily duethe result of higher investment income and lower interest expense, partially offset by higher general and administrative expenses, during the three months ended June 30, 2021 as compared to an increase in the size of our investment portfolio relative to our expenses as we continued to achieve economies of scale due to proceeds received from our follow-on continuous public offering and our financing arrangements.three months ended June 30, 2020.
Net Realized Gain (Loss) Gain on Investments and Foreign Currency
Our net realized gain (loss) gain on investments and foreign currency totaled ($2,788)$441 and $379$(10,986) for the three months ended SeptemberJune 30, 20172021 and 2016, respectively. This change was mainly due to losses realized on certain investments,2020, respectively, which were partially offsetdriven primarily by an increase in sales and principal repayment activityrealized losses on the restructure of certain investments during the three months ended SeptemberJune 30, 2017 compared to the three months ended September 30, 2016. During the three months ended September 30, 2017, we received sale proceeds of $131,279 and principal repayments of $143,369, resulting in net realized losses of ($2,800). During the three months ended September 30, 2016, we received sale proceeds of $2,047 and principal repayments of $39,552, resulting in net realized gains of $379.2020.

Net Change in Unrealized Appreciation on Investments
The net change in unrealized appreciation on our investments totaled $1,700 and $14,948 for the three months ended September 30, 2017 and 2016, respectively. This change was driven primarily by a greater degree of credit spread tightening for middle market loans during the three months ended September 30, 2016 compared to the three months ended September 30, 2017 that positively impacted the fair value of certain investments.

Net Realized Gain on TRS
Our net realized gain on the TRS totaled $67 and $8,188 for the three months ended September 30, 2017 and 2016, respectively. The components of net realized gain on the TRS are summarized below:
 Three Months Ended
September 30,
 2017 2016
Interest and other income from TRS portfolio$67
 $9,426
Interest and other expense from TRS portfolio—
 (3,265)
Net gain on TRS loan sales—
 2,027
   Total$67
 $8,188
The net realized gain on TRS decreased primarily due to the sale of a majority of loans underlying the TRS to Flatiron Funding II on March 29, 2017 in connection with the refinancing of the TRS into a new credit facility.


Net Change in Unrealized Appreciation on TRS
The net change in unrealized appreciation on the TRS totaled $0 and $9,527 for the three months ended September 30, 2017 and 2016, respectively. This change was driven primarily by the sale of a majority of loans underlying the TRS to Flatiron Funding II on March 29, 2017 in connection with the refinancing of the TRS into a new credit facility.
Net Increase in Net Assets Resulting from Operations
For the three months ended September 30, 2017 and 2016, we recorded a net increase in net assets resulting from operations of $20,381 and $43,737, respectively, as a result of our operating activity for the respective periods.
Results of Operations for the Nine Months Ended September 30, 2017 and 2016
Our results of operations for the nine months ended September 30, 2017 and 2016 were as follows:
 Nine Months Ended
September 30,
 2017 2016
Investment income$101,768
 $53,834
Net operating expenses43,691
 21,834
Net investment income58,077
 32,000
Net realized (loss) gain on investments and foreign currency(4,983) 1,078
Net change in unrealized appreciation on investments11,094
 16,587
Net realized (loss) gain on total return swap(13,789) 23,799
Net change in unrealized appreciation on total return swap15,402
 16,826
Net increase in net assets resulting from operations$65,801
 $90,290
Investment Income
For the nine months ended September 30, 2017 and 2016, we generated investment income of $101,768 and $53,834, respectively, consisting primarily of interest income on investments in senior secured debt, collateralized securities, structured products, and unsecured debt of 205 and 120 portfolio companies held during each respective period. Our average investment portfolio size, excluding our short term investments and TRS, increased $469,756, from $815,257 for the nine months ended September 30, 2016 to $1,285,013 for the nine months ended September 30, 2017, as we deployed the net proceeds from our financing arrangements and the net proceeds from our follow-on continuous public offering, which commenced on January 25, 2016. We expect our investment portfolio to continue to grow due to the anticipated equity available to us for investment from our follow-on continuous public offering and amounts available under our financing arrangements. As a result, we believe that reported investment income for the nine months ended September 30, 2017 and 2016 is not representative of our stabilized or future performance. Interest income earned by loans underlying the TRS is not included in investment income in the consolidated statements of operations, but rather was recorded as part of net realized gain (loss) on total return swap. In lieu of extending the expiration date of the TRS beyond April 18, 2017, we entered into a traditional credit facility with Citibank on March 29, 2017.

Operating Expenses
The composition of our operating expenses for the nine months ended September 30, 2017 and 2016 was as follows:
 Nine Months Ended
September 30,
 2017 2016
Management fees$21,724
 $14,311
Administrative services expense1,204
 1,151
General and administrative5,220
 4,944
Interest expense15,543
 761
Total operating expenses43,691
 21,167
Recoupment of expense support from CIG—
 667
Net operating expenses$43,691
 $21,834
During the nine months ended September 30, 2017, the increase in management fees was a direct result of the increase in our total assets less cash and cash equivalents, while the increase in interest expense was primarily the result of entering into new financing arrangements.


The composition of our general and administrative expenses for the nine months ended September 30, 2017 and 2016 was as follows:
 Nine Months Ended
September 30,
 2017 2016
Valuation expense$989
 $350
Transfer agent expense947
 926
Professional fees943
 1,284
Dues and subscriptions630
 621
Director fees and expenses327
 207
Insurance expense309
 271
Printing and other related costs291
 520
Due diligence fees145
 401
Other expenses639
 364
Total general and administrative expense$5,220
 $4,944

Expense Support and Recoupment of Expense Support

For the nine months ended September 30, 2017, CIG and AIM did not provide any expense support or recoup any previously provided expense support. For the nine months ended September 30, 2016, CIG recouped $667 of expense support made during the three months ended December 31, 2014 in connection with the expense support and conditional reimbursement agreement. 

Recoupment of such support will be determined as appropriate to meet the objectives of the expense support and conditional reimbursement agreement. As a result, we may or may not be requested to reimburse CIG and AIM for any expense support that may be received from CIG and AIM in the future.
Net Investment Income
Our net investment income totaled $58,077 and $32,000 for the nine months ended September 30, 2017 and 2016, respectively. The increase in net investment income was primarily due to an increase in the size of our investment portfolio relative to our expenses as we continued to achieve economies of scale due to proceeds received from our follow-on continuous public offering and our financing arrangements.
Net Realized (Loss) Gain on Investments and Foreign Currency
Our net realized (loss) gain on investments and foreign currency totaled ($4,983) and $1,078 for the nine months ended September 30, 2017 and 2016, respectively. This change was mainly due to losses realized on certain investments, which were partially offset by an increase in sales and principal repayment activity during the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016. During the nine months ended September 30, 2017, we received sale proceeds of $218,395 and principal repayments of $403,098, resulting in net realized losses of ($5,142). During the nine months ended September 30, 2016, we received sale proceeds of $14,462 and principal repayments of $126,908, resulting in net realized gains of $1,078.

Net Change in Unrealized Appreciation on Investments
The net change in unrealized appreciation on our investments totaled $11,094$8,842 and $16,587$13,657 for the ninethree months ended SeptemberJune 30, 20172021 and 2016,2020, respectively. This change was driven primarily by aWe observed tightening of credit spreads and increased multiples in equity markets that positively impacted the fair value of certain of our investments during the ninethree months ended SeptemberJune 30, 2017 as well as the reversal of unrealized depreciation for certain investments that were realized during the nine months ended September 30, 2017. 
Net Realized (Loss) Gain on TRS
Our net realized (loss) gain on the TRS totaled ($13,789)2021 and $23,799 for the nine months ended September 30, 2017 and 2016, respectively. The components of net realized (loss) gain on the TRS are summarized below:2020.
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 Nine Months Ended
September 30,
 2017 2016
Interest and other income from TRS portfolio$6,610
 $32,693
Interest and other expense from TRS portfolio(2,949) (10,307)
Net (loss) gain on TRS loan sales(17,450) 1,413
   Total$(13,789) $23,799


Net Change in Unrealized Appreciation on TRS
The net change in unrealized appreciation on the TRS totaled $15,402
 and $16,826 for the nine months ended September 30, 2017 and 2016, respectively. This change was driven primarily by a reversal of unrealized depreciation on the loans underlying the TRS upon the refinancing of the TRS.
Net Increase in Net Assets Resulting from Operations
For the ninethree months ended SeptemberJune 30, 20172021 and 2016,2020, we recorded a net increase in net assets resulting from operations of $65,801$27,969 and $90,290,$16,587, respectively, as a result of our operating activity for the respective periods.
This “Results of Operations” discussion should also be read in conjunction with “Recent Developments - COVID-19” above.
Results of Operations for the Six Months Ended June 30, 2021 and 2020
Our results of operations for the six months ended June 30, 2021 and 2020 were as follows:
Six Months Ended
June 30,
20212020
Investment income$74,324 $81,556 
Net operating expenses38,039 45,979 
Net investment income36,285 35,577 
Net realized loss on investments and foreign currency(3,687)(15,182)
Net change in unrealized appreciation (depreciation) on investments45,085 (109,720)
Net increase (decrease) in net assets resulting from operations$77,683 $(89,325)
Investment Income
For the six months ended June 30, 2021 and 2020, we generated investment income of $74,324 and $81,556, respectively, consisting primarily of interest income on investments in senior secured debt, collateralized securities and structured products, and unsecured debt of 127 and 134 portfolio companies held during each respective period. Our average investment portfolio size, excluding our short term investments, decreased $52,139, from $1,637,803 for the six months ended June 30, 2020 to $1,585,664 for the six months ended June 30, 2021. Additionally, the decrease in LIBOR during the six months ended June 30, 2021 as compared to the six months ended June 30, 2020 also contributed to the decrease in interest income generated on our investments.

Operating Expenses
The composition of our operating expenses for the six months ended June 30, 2021 and 2020 was as follows:
Six Months Ended
June 30,
20212020
Management fees$16,026 $16,380 
Administrative services expense1,381 1,200 
Subordinated incentive fee on income— 3,308 
General and administrative5,256 3,185 
Interest expense15,376 21,906 
Total operating expenses$38,039 $45,979 
The decrease in interest expense during the six months ended June 30, 2021 was primarily the result of all remaining unamortized debt issuance costs related to the Second Amended Citibank Credit Facility and the Amended MS Credit Facility being expensed upon the repayment of all amounts outstanding on these facilities during the three months ended June 30, 2020. The decrease in interest expense was also the result of a decrease in LIBOR during the six months ended June 30, 2021 as compared to the six months ended June 30, 2020. The decrease in subordinated incentive fee on income was primarily due to the decrease in interest income during the three months ended March 31, 2021 as compared to the three months ended March 31, 2020.
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The composition of our general and administrative expenses for the six months ended June 30, 2021 and 2020 was as follows:
Six Months Ended
June 30,
20212020
Professional fees$2,478 $910 
Transfer agent expense675 655 
Valuation expense521 561 
Accounting and administration costs412 283 
Printing and marketing expense399 118 
Insurance expense269 223 
Director fees and expenses214 229 
Dues and subscriptions196 149 
Other expenses92 57 
Total general and administrative expense$5,256 $3,185 
The increase in general and administrative expenses was primarily the result of higher professional fees incurred during the six months ended June 30, 2021 associated with the potential Listing and higher printing and marketing expense incurred during the six months ended June 30, 2021 associated with shareholder proxy solicitation costs.

Net Investment Income

Our net investment income totaled $36,285 and $35,577 for the six months ended June 30, 2021 and 2020, respectively. The increase in our net investment income was primarily the result of lower interest expense and lower subordinated incentive fee on income, partially offset by lower investment income and higher general and administrative expenses, during the six months ended June 30, 2021 as compared to the six months ended June 30, 2020.
Net Realized Loss on Investments and Foreign Currency
Our net realized loss on investments and foreign currency totaled $(3,687) and $(15,182) for the six months ended June 30, 2021 and 2020, respectively, which were driven primarily by realized losses on the restructure of certain investments during the six months ended June 30, 2020.
Net Change in Unrealized Appreciation (Depreciation) on Investments
The net change in unrealized appreciation (depreciation) on our investments totaled $45,085 and $(109,720) for the six months ended June 30, 2021 and 2020, respectively. This change was driven primarily by tightening credit spreads and increased multiples in equity markets during the six months ended June 30, 2021 that positively impacted the fair value of certain of our investments, as compared to the outbreak and spread of COVID-19 around the world during the six months ended June 30, 2020, which caused significant uncertainty and volatility in the U.S. and global economies as well as in the financial and credit markets and negatively impacted the fair value of certain of our investments.
Net Increase (Decrease) in Net Assets Resulting from Operations
For the six months ended June 30, 2021 and 2020, we recorded a net increase (decrease) in net assets resulting from operations of $77,683 and $(89,325), respectively, as a result of our operating activity for the respective periods.
This “Results of Operations” discussion should also be read in conjunction with “Recent Developments - COVID-19” above.
Net Asset Value per Share, Annual Investment Return and Total Return Since Inception 

Our net asset value per share was $9.15$8.17 and $9.11$7.75 on SeptemberJune 30, 20172021 and December 31, 2016,2020, respectively. After considering (i) the overall changes in net asset value per share, (ii) paid distributions of approximately $0.5487$0.2648 per share during the ninesix months ended SeptemberJune 30, 2017,2021, and (iii) the assumed reinvestment of those distributions in accordance with our distribution reinvestment plan then in effect, the total investment returnreturn-net asset value was 6.68%9.00% for the nine monthsix-month period ended SeptemberJune 30, 2017.2021. 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.
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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 net ofexcluding sales load) have seen an annualized return of 8.46%6.88% and a cumulative total return of 47.58%76.57% through SeptemberJune 30, 20172021 (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 6.10%5.57% and a cumulative total return of 32.82%58.91% through SeptemberJune 30, 2017.2021. 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 4.14%4.25% and a cumulative total return of 21.45%42.72%. 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 6.01%5.92% and a cumulative total return of 32.27%63.49% over the same period.
capturea04.jpggrowthof10000.jpg
(1) Cumulative performance: December 17, 2012 to SeptemberJune 30, 2017


2021
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 the net proceeds from our follow-on continuous public offering and 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, but in no event will leverage employed exceed 50%CIM. On March 23, 2018, an amendment to Section 61(a) of the value1940 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 intend to seek the approval of our total assets, as required byshareholders to reduce our minimum “asset coverage” ratio from 200% to 150% in accordance with the 1940 Act. We are engaged
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The outbreak and spread of COVID-19 have caused severe stress and uncertainty in a follow-on continuous public offeringthe 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 sharesthe 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 common stock. Our initial continuous public offering commencedcompany and all of our shareholders to take certain steps 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, our board of directors determined to recommence the payment of distributions to shareholders in August 2020. Distributions in respect of future months will be evaluated by management and our board of directors based on circumstances and expectations existing at the time of consideration.
On July 2, 201230, 2021, our board of directors, including the independent directors, determined to suspend our share repurchase program commencing with the third quarter of 2021 in anticipation of the potential Listing. The share repurchase program will ultimately terminate upon the Listing, which is subject to market conditions, final approval by our board of directors and endedother factors.
As further described in Note 1 and Note 4 to the notes to the consolidated financial statements included in this report, the recent amended and restated investment advisory agreement will (i) reduce the annual base management fees payable by us to CIM and (ii) amend the way the subordinated incentive fee on December 31, 2015. Our follow-on continuous public offering commenced on January 25, 2016income and will continue until no later than January 25, 2019. We accept subscriptions onthe capital gains incentive fee is payable by us to CIM by reducing the hurdle and incentive fee rates and express the hurdle rate as a continuous basis and issue shares at weekly closings at prices that, after deducting selling commissions and dealer manager fees, are at or abovepercentage of our net asset value per share.
We will sellassets rather than our adjusted capital. These changes are effective upon the Listing of our shares on a continuous basis at our latest public offering price of $9.70 per share; however,national securities exchange, except for the change to the extentcalculation of the subordinated incentive fee payable to CIM that expresses the hurdle rate required for CIM to earn, and be paid, the incentive fee as a percentage of our net assets rather than adjusted capital, which was effective upon shareholder approval and not dependent upon the Listing. These changes, in the aggregate, may lead to the payment of higher advisory fees to CIM depending upon our performance. There can be no assurance that we will be able to complete the Listing in any certain timeframe or at all.
Our board of directors also intends to declare a special cash distribution to shareholders payable during the fourth quarter of 2021 in an amount not to exceed our estimated undistributed investment company taxable income, in addition to any regular cash distributions that our net asset value fluctuates, we will sell at a price necessaryboard may declare. The declaration, payment and terms of this special cash distribution, like all future distributions, are subject to ensure that shares are sold at a price, after deduction of selling commissionsapplicable legal restrictions and dealer manager fees, that is above and within 2.5% of net asset value per share.
Since commencing our initial continuous public offering on July 2, 2012 and through September 30, 2017, we sold 114,440,741 shares of common stock for net proceeds of $1,162,041 at an average price per share of $10.15. The net proceeds include gross proceeds received from reinvested shareholder distributions of $114,174, for which we issued 12,532,914 shares of common stock, and gross proceeds paid for shares of common stock tendered for repurchase of $55,581, for which we repurchased 6,143,717 shares of common stock. Since commencing our initial continuous public offering on July 2, 2012 and through September 30, 2017, sales commissions and dealer manager fees related to the salesole discretion of our common stock were $64,186 and $31,776, respectively.board of directors.

As of November 8, 2017, we sold 114,398,359 shares of common stock for net proceeds of $1,161,927 at an average price per share of $10.16. The net proceeds include gross proceeds received from reinvested shareholder distributions of $117,998, for which we issued 12,950,612 shares of common stock, and gross proceeds paid for shares of common stock tendered for repurchase of $65,821, for which we repurchased 7,261,847 shares of common stock. Since commencing our initial continuous public offering on July 2, 2012 and through November 8, 2017, sales commissions and dealer manager fees related to the sale of our common stock were $64,317 and $31,878, respectively.
The net proceeds from our follow-on continuous public offering will be invested primarily in cash, cash equivalents, U.S. government securities, repurchase agreements and high-quality debt instruments maturing in one year or less prior to being invested in debt securities of private U.S. middle-market companies.
As of SeptemberJune 30, 20172021 and December 31, 2016,2020, we had $140,810$48,484 and $70,498$73,597 in short term investments, respectively, invested in a fund that primarily invests in U.S. government securities.

CitibankJPM Credit Facility

As of SeptemberJune 30, 20172021 and November 9, 2017,August 5, 2021, our outstanding borrowings under the CitibankThird Amended JPM Credit Facility were $281,698$550,000, and the aggregate unfunded principal amount in connection with the CitibankThird Amended JPM Credit Facility was $43,302.$25,000. For a detailed discussion of our Citibank Credit Facility, refer to Note 8 to our consolidated financial statements included in this report.

JPM Credit Facility
As of September 30, 2017 and November 9, 2017, our outstanding borrowings under the JPM Credit Facility were $224,423 and the aggregate principal amount available in connection with the JPM Credit Facility was $577. For a detailed discussion of ourThird Amended JPM Credit Facility, refer to Note 8 to our consolidated financial statements included in this report.

UBS Facility
As of SeptemberJune 30, 20172021 and November 9, 2017,August 5, 2021, our outstanding borrowings under the Amended UBS Facility were $125,000$100,000 and no additional$121,000, respectively, and the aggregate unfunded principal amount was available in connection with the Amended UBS Facility.Facility was $50,000 and $29,000, respectively. For a detailed discussion of our Amended UBS Facility, refer to Note 8 to our consolidated financial statements included in this report.
2026 Notes

As of June 30, 2021 and August 5, 2021, we had $125,000 in aggregate principal amount of 2026 Notes outstanding. For a detailed discussion of our 2026 Notes, refer to Note 8 to our consolidated financial statements included in this report.
More Term Loan
As of June 30, 2021 and August 5, 2021, our outstanding borrowings under the More Term Loan were $30,000 and there was no unfunded principal amount in connection with the More Term Loan. For a detailed discussion of our More Term Loan, refer to Note 8 to our consolidated financial statements included in this report.
Unfunded Commitments
As of SeptemberJune 30, 20172021 and November 9, 2017,August 5, 2021, our unfunded commitments amounted to $75,833 and $83,077,$80,283 and $85,059, respectively. For a detailed discussion of our unfunded commitments, refer to Note 11 to our consolidated financial statements included in this report.
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RIC Status and Distributions
PriorTo qualify for and maintain RIC tax treatment, we must, among other things, distribute in respect of each taxable year at least 90% of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. We will incur certain excise taxes imposed on RICs to the refinancingextent we do not distribute in respect of each calendar year an amount at least equal to the sum of (1) 98.0% of our net ordinary income (taking into account certain deferrals and elections) for the calendar year, (2) 98.2% of our capital gains in excess of capital losses, or capital gain net income (adjusted for certain ordinary losses), for the one-year period ending on October 31 of the TRS, our total investment portfolio includes loanscalendar year and other securities(3) any net ordinary income and capital gain net income from preceding years that were not distributed during such years and on our consolidated balance sheets and loans underlying the TRS. Accordingly,which we treat net interest and otherpaid no federal income earned on all investments, including the loans underlying the TRS, as a component of investment company taxable income when determining our sources of distributions. The sources of our distributions for the nine months ended September 30, 2017 were as follows:tax.

  Three Months Ended
September 30, 2017		 Nine Months Ended
September 30, 2017
  Investment Portfolio Total Return Swap Portfolio Total Investment Portfolio Percentage Investment Portfolio Total Return Swap Portfolio Total Investment Portfolio Percentage
Net investment income $20,577
 $67
 $20,644
 100.0% $55,191
 $3,661
 $58,852
 96.3%
Capital gains from the sale of assets(1)(2) —
 —
 —
 —
 —
 2,286
 2,286
 3.7%
Total $20,577
 $67
 $20,644
 100.0% $55,191
 $5,947
 $61,138
 100.0%
(1)For the three and nine months ended September 30, 2017, we estimate that we had no net capital gains classified as long-term. The final determination of the tax attributes of our distributions is made annually as of the end of the year.
(2)During the nine months ended September 30, 2017, the Company realized losses of $24,164 primarily in connection with the refinancing of the TRS, which are not currently deductible on a tax-basis.
For an additional discussion of our RIC status and distributions, refer to Note 2 and Note 5, respectively, toof 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, and AIM, if applicable;
•preliminary valuation conclusions are then documented and discussed with members of CIM’s valuation committee;management team;


•designated members of CIM’s valuation committee reviewsmanagement team review the preliminary valuation, and, if applicable, deliversdeliver such preliminary valuation to an independent valuation firm for its review;
•designated members of CIM’s valuation committee, or its designee,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;
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•our audit committee meets with members of CIM’s management team and the independent valuation firmfirms to discuss the assistance provided and the results of the independent valuation firm’sfirms' 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 once over a twelve-month period by an independent valuation firm. Finally, certain investments are not evaluated by an independent valuation firm unless the net asset value and othercertain aspects of such investments in the aggregate exceedmeet certain thresholds.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, ICON Capital, CIG, and AIMAIA 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, and July 11, 2017.2017, November 28, 2017, May 23, 2018, May 15, 2020 and February 26, 2021. See Note 8 to our consolidated financial statements for a more detailed description of the JPM Credit Facility.

On March 29, 2017, Flatiron Funding II entered into the Citibank Credit Facility with Citibank, as amended on July 11, 2017. See Note 8 to our consolidated financial statements for a more detailed description of the Citibank Credit Facility.

On May 19, 2017, Murray Hill Funding II entered into the UBS Facility with UBS.UBS, as amended on December 1, 2017, May 19, 2020, November 12, 2020 and December 17, 2020. See Note 8 to our consolidated financial statements for a more detailed description of the UBS Facility.

On February 11, 2021, we entered into the Note Purchase Agreement with purchasers of the 2026 Notes. See Note 8 to our consolidated financial statements for a more detailed description of the 2026 Notes.

On April 14, 2021, we entered into the More Term Loan with More. See Note 8 to our consolidated financial statements for a more detailed description of the More Term Loan.
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 agreement.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.

72

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. As of SeptemberJune 30, 2017, 93.3%2021, 87.5% 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
As of June 30, 2021, under the terms of the Third Amended JPM Credit Facility, advances currently bear interest at a floating rate equal to the three-month LIBOR, plus a spread of 3.50%3.10% per year. Under the terms of the Citibank Credit Facility, advances currently bear interest at a floating rate equal to the three-month LIBOR plus 2.0%. 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 3.50%.3.375% 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 Citibank Credit Facility, theThird Amended JPM Credit Facility or the Amended UBS Facility in effect as of SeptemberJune 30, 2017:2021:
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 (0.13% as of June 30, 2021)— — 
Up 50 basis points(1,875)(1.8)%
Up 100 basis points(2,224)(2.2)%
Up 200 basis points5,069 5.0 %
Up 300 basis points13,255 13.0 %
Change in Interest Rates Increase (Decrease) in Net Interest Income(1) Percentage Change in Net Interest Income
Down 100 basis points $1,290
 1.2 %
Down 50 basis points (1,585) (1.5)%
Current base interest rate —
 —
Up 50 basis points 4,276
 4.0 %
Up 100 basis points 8,560
 8.1 %
Up 200 basis points 17,126
 16.1 %
Up 300 basis points 25,693
 24.2 %
(1)This table assumes no change in defaults or prepayments by portfolio companies over the next twelve months.
(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, our fixed rate borrowings (the 2026 Notes and the More Term Loan), or the net asset value of our common stock in the event of sudden changes in interest rates. Approximately 4.6%6.6% of our investments paid fixed interest rates as of SeptemberJune 30, 2017.2021. Rising market interest rates will most likely lead to fair value declines for fixed interest rate investments and fixed interest rate borrowings 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 fixed interest rate borrowings 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 SeptemberJune 30, 2017,2021, 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.
73

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 SeptemberJune 30, 20172021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

74

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, 2016.2020.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Our registration statement on Form N-2, as amended, in connection with our follow-on continuous public offering was declared effective by the SEC on January 25, 2016 (SEC File No. 333-203683). Our follow-on continuous public offering commenced on January 25, 2016.
We did not engage in any unregistered sales of equity securities during the three months ended SeptemberJune 30, 2017.2021.
The table below provides information concerning our repurchases of shares of our common stock during the three months ended SeptemberJune 30, 20172021 pursuant to our share repurchase program.
PeriodTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or ProgramsMaximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
April 1 to April 30, 2021— $— — — 
May 1 to May 31, 2021— — — — 
June 1 to June 30, 2021640,277 8.07 640,277 (1)
Total640,277 $8.07 640,277 (1)
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
July 1 to July 31, 2017 1,365,168
 $9.10
 1,365,168
 (1)
August 1 to August 31, 2017 —
 —
 —
 —
September 1 to September 30, 2017 —
 —
 —
 —
Total 1,365,168
 $9.10
 1,365,168
 (1)
(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.
(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.

On July 30, 2021, our board of directors, including the independent directors, determined to suspend our share repurchase program commencing with the third quarter of 2021 in anticipation of the Listing. The share repurchase program will ultimately terminate upon the Listing. There can be no assurance that we will be able to complete the Listing in any certain timeframe or at all.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Not applicable.

75


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
Articles of Amendment and Restatement of the Articles of Incorporation of CĪON Investment Corporation (Incorporated by reference to Exhibit (A)(2) 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)).
3.2
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)).
3.33.2
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 Post-Effective Amendment No. 4 to Registrant’s Registration StatementFinal Prospectus on Form N-2497 filed with the SEC on April 26, 2017September 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)).
10.1
Amended and Restated Investment Advisory Agreement, dated as of August 10, 2021, by and between CĪON Investment Corporation and CION Investment Management, LLC (Incorporated by reference to Exhibit (G)(1)10.1 to Pre-Effective Amendment No. 4 tothe Registrant’s Registration StatementCurrent Report on Form N-28-K filed with the SEC on June 29, 2012August 11, 2021 (File No. 333-178646)814-00941)).
10.2
Investment Sub-Advisory Agreement by and among CION Investment Management, LLC, CĪON Investment Corporation and Apollo Investment Management, L.P. (Incorporated by reference to Exhibit (G)(2) 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
Administration Agreement by and between CĪON Investment Corporation and ICON Capital Corp. (Incorporated by reference to Exhibit (K)(2) 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
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)).
10.510.3
EscrowThird Amended and Restated Expense Support and Conditional Reimbursement Agreement, dated as of December 9, 2020, by and amongbetween 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)).
10.6
Dealer Manager Agreement by and among CĪON Investment Corporation, CION Investment Management, LLC and ICON Securities Corp. (Incorporated by reference to Exhibit (H)(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)).
10.7
ISDA 2002 Master Agreement, together with the Schedule thereto and Credit Support Annex to such Schedule, each dated as of December 17, 2012, by and between Flatiron Funding, LLC and Citibank, N.A. (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 19, 201215, 2020 (File No. 814-00941)).
10.810.4
Thirteenth Amended and Restated Confirmation Letter Agreement, dated as of February 18, 2017, by and between Flatiron Funding, LLC and Citibank, N.A. (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on February 23, 2017 (File No. 814-00941)).
10.9
Third Amended and Restated Expense Support and Conditional Reimbursement Agreement, dated as of December 14, 2016, by and among CĪON Investment Corporation, Apollo Investment Management, L.P. and CION Investment Group, LLC (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on December 14, 2016 (File No. 814-00941)).
10.10
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)).
10.1110.5
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)).
10.12
Loan and Security Agreement, dated as of April 30, 2015, by and between CĪON Investment Corporation and East West Bank (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on May 6, 2015 (File No. 814-00941)).
10.13
First Amendment to Loan and Security Agreement, dated as of January 28, 2016, by and between CĪON Investment Corporation and East West Bank (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on February 3, 2016 (File No. 814-00941)).
10.14
Second Amendment to Loan and Security Agreement, dated as of April 21, 2016, by and between CĪON Investment Corporation and East West Bank (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on April 27, 2016 (File No. 814-00941)).
10.15
Custody Control Agreement, dated as of April 30, 2015, by and among CĪON Investment Corporation, East West Bank 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 May 6, 2015 (File No. 814-00941)).
10.16
Limited Liability Company Agreement of CION / Capitala Senior Loan Fund I, LLC, dated as of June 24, 2015, by and between CĪON Investment Corporation and Capitala Finance Corp. (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on June 26, 2015 (File No. 814-00941)).



10.6
Exhibit
Number
Description of Document
10.17
Loan and Security Agreement, dated as of August 26, 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 September 1, 2016 (File No. 814-00941)).
10.18
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)).
10.1910.7
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)).
10.2010.8
Portfolio Management Agreement, dated as of August 26, 2016, by and between 34th Street 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 September 1, 2016 (File No. 814-00941)).
10.21
Guarantee of CĪON Investment Corporation dated as of August 26, 2016 (Incorporated by reference to Exhibit 10.5 to Registrant’s Current Report on Form 8-K filed with the SEC on September 1, 2016 (File No. 814-00941)).
10.22
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)).
10.23
Release and Termination Agreement, dated as of September 30, 2016, by and among CĪON Investment Corporation, 34th Street Funding, LLC and JPMorgan Chase Bank, National Association (Incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed with the SEC on October 4, 2016 (File No. 814-00941)).
10.24
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)).
10.2510.9
Credit and Security Agreement, dated as of March 29, 2017, by and among Flatiron Funding II, LLC, CION Investment Management, LLC, CĪON 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)).
10.2610.10
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)).

76

Exhibit
Number		Description of Document
10.11
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)).
10.2710.12
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)).
10.2810.13
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)).
10.2910.14
Contribution Agreement, dated as of May 19, 2017, by and among CÎCĪON 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)).
10.3010.15
Indenture, dated as of May 19, 2017, by and between Murray Hill Funding II, 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 May 25, 2017 (File No. 814-00941)).
10.31
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)).
10.3210.16
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)).
10.3310.17
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)).
10.3410.18
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)).
10.3510.19
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)).
10.20
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)).
10.21
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)).
10.22
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)).
10.23
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)).
10.24
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)).

77

Exhibit
Number		Description of Document
10.25
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)).
10.26
Fourth Amended and Restated Master Confirmation to the Global Master Repurchase Agreement, dated as of December 17, 2020, by and between Murray Hill Funding, LLC and UBS AG (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on December 23, 2020 (File No. 814-00941)).
10.27
Revolving Credit Note Agreement, dated as of December 17, 2020, by and among Murray Hill Funding II, LLC, Murray Hill Funding, LLC, U.S. Bank National Association, and the Class A-R Noteholders (Incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed with the SEC on December 23, 2020 (File No. 814-00941)).
10.28
Murray Hill Funding II, LLC Class A-R Notes Due 2027 (Incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K filed with the SEC on December 23, 2020 (File No. 814-00941)).
10.29
Second Amended and Restated Indenture, dated as of December 17, 2020, by and between Murray Hill Funding II, LLC and U.S. Bank National Association (Incorporated by reference to Exhibit 10.4 to Registrant’s Current Report on Form 8-K filed with the SEC on December 23, 2020 (File No. 814-00941)).
10.30
Master Confirmation to the Global Master Repurchase Agreement (Class A-R Notes), dated as of December 17, 2020, by and between Murray Hill Funding, LLC and UBS AG (Incorporated by reference to Exhibit 10.5 to Registrant’s Current Report on Form 8-K filed with the SEC on December 23, 2020 (File No. 814-00941)).
10.31
Note Purchase Agreement of CĪON Investment Corporation related to the 2026 Notes, dated as of February 11, 2021 (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on February 16, 2021 (File No. 814-00941)).
10.32
Third Amended and Restated Loan and Security Agreement, dated as of February 26, 2021, 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 March 1, 2021 (File No. 814-00941)).
10.33
Unsecured Term Loan Facility Agreement, dated as of April 14, 2021, by and between CĪON Investment Corporation and More Provident Funds Ltd. (Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed with the SEC on April 20, 2021 (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.


78

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 13, 2017August 12, 2021
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)


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