CION Investment Corp 8-K, filed May 28, 2020
CION Investment Corp (CION)
About this 8-K
CION Investment Corp filed this 8-K on May 28, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________
FORM 8-K
_____________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 28, 2020
CĪON Investment Corporation
(Exact Name of Registrant as Specified in Charter)
Maryland (State or Other Jurisdiction of Incorporation) |
000-54755 (Commission File Number) |
45-3058280 (IRS Employer Identification No.) |
3 Park Avenue, 36th Floor
New York, New York 10016
(Address of Principal Executive Offices)
(212) 418-4700
(Registrant's telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
| None | Not applicable | Not applicable |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ¨
Item 2.02. Results of Operations and Financial Condition.
On May 28, 2020, CĪON Investment Corporation (“CIC”) issued its first quarter 2020 fund fact sheet and portfolio holdings fact sheet. A copy of the fund fact sheet and portfolio holdings fact sheet are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits
| (d) | Exhibits. |
| EXHIBIT
NUMBER |
DESCRIPTION | |
| 99.1 | First Quarter 2020 Fund Fact Sheet. | |
| 99.2 | First Quarter 2020 Portfolio Holdings Fact Sheet. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CĪON Investment Corporation | |||
| Date: May 28, 2020 | By: | /s/ Michael A. Reisner | |
| Michael A. Reisner | |||
| Co-Chief Executive Officer | |||
EXHIBIT LIST
| EXHIBIT
NUMBER |
DESCRIPTION | |
| 99.1 | First Quarter 2020 Fund Fact Sheet. | |
| 99.2 | First Quarter 2020 Portfolio Holdings Fact Sheet. |
Exhibit 99.1
FUND OVERVIEW
CION Investment Corporation (CIC) is a non-traded business development company, or BDC, that focuses on middle market loans. CIC seeks to generate current income, and to a lesser extent, capital appreciation.
TARGET INVESTMENTS
CIC offers investors the opportunity to invest primarily in:
• Senior secured debt
• Private and thinly-traded U.S. middle market companies
FUND FACT SHEET | Q1 2020
As of March 31, 2020
HISTORICAL TOTAL INVESTMENT RETURN-NET ASSET VALUE
2020 YTD SINCE INCEPTION (Cumulative)
-11.25% 45.13% 30.62%
WITHOUT SALES CHARGE WITH SALES CHARGE
Total investment return-net asset value is a measure of the change in total value for shareholders who held CIC’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 presented on a “net” basis and reflects management and incentive fees, offering, organizational and other costs, interest expense on borrowed funds and other related expenses that are borne by investors.
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 CIC’s distribution reinvestment plan then in effect. The total investment return-net asset value does not consider the effect of the sales charge from the sale of CIC’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.
PORTFOLIO CHARACTERISTICS
INVESTMENT COMPOSITION*
First Lien Senior Secured Debt 80.6%
Second Lien Senior Secured Debt 12.7%
Equity 5.7%
Collateralized Securities & Structured Products – Equity 0.7%
Unsecured Debt 0.3%
FLOATING/FIXED RATE BREAKDOWN
Floating Rate Investments 91.8%
Fixed Rate Investments 4.5%
Non - Income Producing Equity 2.1%
Other Income Producing Investments 1.6%
* Information is based on the relative fair value of the underlying portfolio holdings.
Data excludes short term investments, which represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less.
Percentages represent approximate figures.
HISTORICAL NET ASSET VALUE
10
$9.16 $9.17 $9.29 $9.32 $9.40 $9.35 $9.33 $9.11 $9.07 $9.15 $9.15 $9.14 $9.13
9 $9.00 $9.38 $9.31 $9.22 $9.13 $9.02 $9.11 $9.06
$8.97
$8.71 $8.57 $8.79 $8.69$8.65 $8.54 $8.34 $8.40
8
7 $7.29
9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20
Net asset value is determined quarterly and at such other times that an event occurs that materially affects the valuation. Past performance is not indicative of future results.
KEY FACTS
NET ASSET VALUE PER SHARE1 $7.29 per share
CURRENT DISTRIBUTION RATE1,2 N/A
TOTAL EQUITY RAISED3 ~$1.15B
DISTRIBUTION Cash distributions were reinvested in additional common stock at the
REINVESTMENT PLAN1,2 estimated net asset value per share on the date of purchase.
CASH FLOW OBJECTIVE To provide monthly distributions2
TAX REPORTING Form 1099
1 As of March 31, 2020.
2 On March 19, 2020, CIC’s co-chief executive officers determined to temporarily suspend the payment of distributions to shareholders commencing with the month ending April 30, 2020. Distributions in respect of future months will be reevaluated by management and the Board based on circumstances and expectations existing at the time of consideration.
The determination of the tax attributes of CIC’s distributions is made annually as of the end of CIC’s fiscal year based upon its taxable income and distributions paid, in each case, for the full year. Therefore, a determination as to the tax attributes of the distributions made on a quarterly basis may not be representative of the actual tax attributes for a full year. CIC intends to update shareholders quarterly with an estimated percentage of its distributions that resulted from taxable ordinary income. The actual tax characteristics of distributions to shareholders will be reported to shareholders annually on a Form 1099-DIV. The payment of future distributions on CIC’s common stock is subject to the discretion of the Board and applicable legal restrictions, and therefore, there can be no assurance as to the amount or timing of any such future distributions.
CIC may fund its cash distributions to shareholders from any sources of funds available to it, including borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies and expense support from CION Investment Management, LLC (CIM), which is subject to recoupment. On January 2, 2018, CIC entered into an expense support and conditional reimbursement agreement with CIM for purposes of, among other things, replacing CION Investment Group, LLC (CIG) and Apollo Investment
Management, L.P. with CIM as the expense support provider pursuant to the terms of the expense support and conditional reimbursement agreement. To date, distributions have not been paid from offering proceeds. In certain prior periods, if expense support from CIG was not supported, some or all of the distributions may have been a return of capital; however, distributions have not included a return of capital as of the date hereof. CIC has not established limits on the amount of funds it may use from available sources to make distributions. The purpose of this arrangement is to avoid such distributions being characterized as returns of capital. Shareholders should understand
that any such distributions are not based on CIC’s investment performance, and can only be sustained if CIC achieves positive investment performance in future periods and/or CIM continues to provide such expense support. Shareholders should also understand that CIC’s future repayments of expense support will reduce the distributions that they would otherwise receive. There can be no assurance that CIC will be able to pay distributions at all. CIM has no obligation to provide expense support to CIC in future periods.
3 CIC’s follow-on continuous pubic offering ended on January 25, 2019.
GROWTH OF $10K SINCE INCEPTION (CUMULATIVE)*
$14,513
$10K Initial $13,062
$12,902
Investment
$11,651
* 12/17/12 9/30/133/31/149/30/14 3/31/159/30/153/31/169/30/16 3/31/179/30/173/31/18 9/30/183/31/199/30/193/31/20
CION Investment Corporation CION Investment Corporation BofA ML US S&P/LSTA Leveraged
(without sales charge) (with sales charge) High Yield Index Loan Index
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 (with sales charge), and $9.00 per share (without sales charge), (ii) the assumption of 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. Past performance is no guarantee of future results. The data provided is for informational purposes only.
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 without sales charge) have seen an annualized return of 5.24% and a cumulative total return of 45.13% through March 31, 2020.
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 with sales charge) have seen an annualized return of 3.73% and a cumulative total return of 30.62% through March 31, 2020. Over the same time period, the S&P/LSTA Leveraged Loan Index, a primary measure of senior debt covering the U.S. leveraged loan market, which currently consists of approximately 1,000 credit facilities throughout numerous industries, recorded an annualized return of 2.12% and a cumulative total return of 16.51%. 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 3.56% and a cumulative total return of 29.02% over the same period. An investment cannot be made in an index. The indices referenced in the above illustration are being used solely for benchmarking purposes. Addi-tionally, indices do not account for sales charges or expenses, which would otherwise negatively impact the above stated performance of each index.
REPRESENTATIVE HOLDINGS % OF PORTFOLIO
Foundation Consumer Healthcare, LLC 2.57%
Industry: Healthcare & Pharmaceuticals
Cadence Aerospace, LLC 1.88%
Industry: Aerospace & Defense
Tenere Inc. 1.78%
Industry: Capital Equipment
EagleTree-Carbide Acquisition Corp. 1.53%
Industry: Consumer Goods: Durable
Bi-Low, LLC 1.15%
Industry: Retail
Access CIG, LLC 1.01%
Industry: Services: Business
GEO Parent Corp. 0.89%
Industry: Business Services
American Residential Services LLC 0.31%
Industry: Construction & Building
ALLOCATION BY INDUSTRY % OF PORTFOLIO
Healthcare & Pharmaceuticals 18.1%
Services: Business 10.9%
Media: Diversified & Production 8.4%
Chemicals, Plastics & Rubber 7.7%
Media: Advertising, Printing & Publishing 7.3%
Services: Consumer 5.5%
Capital Equipment 4.9%
High Tech Industries 4.2%
Telecommunications 3.9%
Beverage, Food & Tobacco 3.9%
Other Industries 25.2%
ABOUT CION INVESTMENTS
CION Investments is a leading manager of investment solutions designed to redefine the way individual investors can build their portfolios and help meet their long-term investment goals. With more than 30 years of experience in the alternative asset management industry, CION strives to level the playing field. CION currently manages CION
Investment Corporation, a leading non-traded BDC, and sponsors, through CION Ares Management, CION Ares
Diversified Credit Fund, a globally diversified interval fund.
CION Investments
3 Park Avenue, 36th Floor
New York, NY 10016
cioninvestments.com
This fund fact sheet summarizes some of the features and transactions of CIC as of the date indicated above (unless otherwise indicated herein). There is no assurance that additional similar transactions will be available to CIC or that CIC’s investment portfolio composition going forward will be as described herein.
Exhibit 99.2
CION Investment ationPORTFOLIO HOLDINGS Q1As of March 31, 2020FOR EXISTING INVESTORS ONLY.
CION Investment CorporationFUND OVERVIEWCION Investment Corporation (“CIC”) is a non-traded business development company, or BDC, that focuses on middle market loans. CIC seeks to generate current income, and to a lesser extent, capital appreciation.CIC’s portfolio is managed by its adviser – CION Investment Management, LLC, a CION Investments company.TARGET INVESTMENTSCIC offers investors the opportunity to invest primarily in: • Senior secured debt • Private and thinly-traded U.S. middle market companiesINVESTMENT COMPOSITION(1)FLOATING/FIXED RATE BREAKDOWNFirst Lien Senior Secured Debt 80.6% Second Lien Senior Secured Debt 12.7% Equity 5.7% Collateralized Securities & Structured Products – Equity 0.7%Unsecured Debt 0.3%Floating Rate Invest- ments 91.8% Fixed Rate Investments 4.5% Non - Income Producing Equity 2.1% Other Income Producing Investments 1.6%PORTFOLIO HOLDINGS Please note that rates are not indicative of CIC’s performance.COMPANY NAME INDUSTRY WEIGHTING(1) RATE(2,3) LIBOR / EURIBOR FLOOR(4)MATURITY DATE1ST LIEN SENIOR SECURED DEBT: 80.6%Academy, Ltd. Retail 0.83% LIBOR+4.00% 1.00% LIBOR Floor 7/1/2022Adams Publishing Group, LLC Media: Advertising, Printing & Publishing 0.80% LIBOR+7.50% 1.75% LIBOR Floor 7/2/2023Adapt Laser Acquisition, Inc. Capital Equipment 0.64% LIBOR+8.00% 1.00% LIBOR Floor 12/31/2023Adapt Laser Acquisition, Inc. Capital Equipment -0.02% 0.50% Unfunded None 12/31/2023Aegis Toxicology Sciences Corp. Healthcare & Pharmaceuticals 0.52% LIBOR+5.50% 1.00% LIBOR Floor 5/9/2025AIS Holdco, LLC Banking, Finance, Insurance & Real Estate 0.27% LIBOR+5.00% 0.00% LIBOR Floor 8/15/2025Alchemy US Holdco 1, LLC Construction & Building 0.74% LIBOR+5.50% 0.00% LIBOR Floor 10/10/2025Allen Media, LLC Media: Diversified & Production 1.43% LIBOR+5.50% 0.00% LIBOR Floor 2/10/2027ALM Media, LLC Media: Advertising, Printing & Publishing 1.20% LIBOR+6.50% 1.00% LIBOR Floor 11/25/2024AMCP Staffing Intermediate Holdings III, LLC Services: Business 0.60% LIBOR+6.75% 1.50% LIBOR Floor 9/24/2025AMCP Staffing Intermediate Holdings III, LLC Services: Business 0.06% LIBOR+6.75% 1.50% LIBOR Floor 9/24/2025AMCP Staffing Intermediate Holdings III, LLC Services: Business 0.00% 0.50% Unfunded None 9/24/2025American Clinical Solutions LLC Healthcare & Pharmaceuticals 0.10% 2.00% None 12/31/2022American Clinical Solutions LLC Healthcare & Pharmaceuticals 0.19% 7.00% None 12/31/2022American Media, LLC Media: Advertising, Printing & Publishing 0.79% LIBOR+7.75% 0.00% LIBOR Floor 12/31/2023American Media, LLC Media: Advertising, Printing & Publishing 0.09% LIBOR+7.75% 0.00% LIBOR Floor 12/31/2023American Media, LLC Media: Advertising, Printing & Publishing 0.00% 0.50% Unfunded None 12/31/2023American Teleconferencing Services, Ltd. Telecommunications 0.93% LIBOR+6.50% 1.00% LIBOR Floor 12/8/2021FOR EXISTING INVESTORS ONLY.CIC Portfolio Holdings • 1
COMPANY NAME INDUSTRY WEIGHTING(1) RATE(2,3) LIBOR / EURIBOR FLOOR(4)MATURITY DATE1ST LIEN SENIOR SECURED DEBT: 80.6% (CONTINUED)Analogic Corp. Healthcare & Pharmaceuticals 0.31% LIBOR+5.25% 1.00% LIBOR Floor 6/21/2024Anthem Sports & Entertainment Inc. Media: Diversified & Production 0.71% LIBOR+9.50% 1.00% LIBOR Floor 9/9/2024Anthem Sports & Entertainment Inc. Media: Diversified & Production 0.05% LIBOR+9.50% 1.00% LIBOR Floor 9/9/2024Anthem Sports & Entertainment Inc. Media: Diversified & Production 0.00% 0.50% Unfunded None 9/9/2024APC Automotive Technologies, LLC Automotive 0.49% LIBOR+5.00% 1.00% LIBOR Floor 5/10/2025APC Automotive Technologies, LLC Automotive 0.01% LIBOR+5.00% 1.00% LIBOR Floor 5/10/2024APCO Holdings, LLC Banking, Finance, Insurance & Real Estate 0.66% LIBOR+5.50% 0.00% LIBOR Floor 6/9/2025Ascent Resources - Marcellus, LLC Energy: Oil & Gas 0.05% LIBOR+6.50% 1.00% LIBOR Floor 3/30/2023Associated Asphalt Partners, LLC Construction & Building 0.82% LIBOR+5.25% 1.00% LIBOR Floor 4/5/2024Avison Young (USA) Inc. Banking, Finance, Insurance & Real Estate 0.56% LIBOR+5.00% 0.00% LIBOR Floor 1/31/2026Bi-Lo, LLC Retail 1.15% LIBOR+8.00% 1.00% LIBOR Floor 5/31/2024BK Medical Holding Company, Inc. Healthcare & Pharmaceuticals 0.31% LIBOR+5.25% 1.00% LIBOR Floor 6/22/2024Cadence Aerospace, LLC Aerospace & Defense 1.88% LIBOR+6.50% 1.00% LIBOR Floor 11/14/2023Cardinal US Holdings, Inc. Services: Business 0.46% LIBOR+5.00% 1.00% LIBOR Floor 7/31/2023CB URS Holdings Corp. Transportation: Cargo 0.82% LIBOR+5.75% 1.00% LIBOR Floor 9/1/2024Central Security Group, Inc. Services: Consumer 0.95% LIBOR+5.63% 1.00% LIBOR Floor 10/6/2021Charming Charlie LLC Retail 0.03% 20.00% None 5/15/2020Charming Charlie LLC Retail 0.00% LIBOR+12.00% 1.00% LIBOR Floor 4/24/2023Charming Charlie LLC Retail 0.00% LIBOR+12.00% 1.00% LIBOR Floor 4/24/2023CHC Solutions Inc. Healthcare & Pharmaceuticals 0.46% 12.00% None 7/20/2023CircusTrix Holdings, LLC Hotel, Gaming & Leisure 1.05% LIBOR+5.50% 1.00% LIBOR Floor 12/16/2021CircusTrix Holdings, LLC Hotel, Gaming & Leisure 0.14% LIBOR+5.50% 1.00% LIBOR Floor 12/16/2021CircusTrix Holdings, LLC Hotel, Gaming & Leisure -0.01% 1.00% Unfunded None 12/16/2021Country Fresh Holdings, LLC Beverage, Food & Tobacco 0.06% LIBOR+5.00% 1.00% LIBOR Floor 4/29/2023Country Fresh Holdings, LLC Beverage, Food & Tobacco 0.03% LIBOR+5.00% 1.00% LIBOR Floor 4/29/2023Coyote Buyer, LLC Chemicals, Plastics & Rubber 1.82% LIBOR+6.00% 1.00% LIBOR Floor 2/6/2026Coyote Buyer, LLC Chemicals, Plastics & Rubber 0.02% LIBOR+6.00% 1.00% LIBOR Floor 2/6/2025Coyote Buyer, LLC Chemicals, Plastics & Rubber -0.01% 0.50% Unfunded None 2/6/2025Crown Subsea Communications Holdings, Inc. Capital Equipment 0.28% LIBOR+6.00% 0.00% LIBOR Floor 11/2/2025David's Bridal, LLC Retail 0.04% LIBOR+6.00% 1.00% LIBOR Floor 6/30/2023Deluxe Entertainment Services, Inc. Media: Diversified & Production 1.62% LIBOR+6.50% 1.00% LIBOR Floor 3/25/2024DMT Solutions Global Corp. Services: Business 1.06% LIBOR+7.00% 0.00% LIBOR Floor 7/2/2024Eagle Family Foods Group LLC Beverage, Food & Tobacco 0.90% LIBOR+6.50% 1.00% LIBOR Floor 6/14/2024Entertainment Studios P&A LLC Media: Diversified & Production 0.85% 6.35% None 5/18/2037Entertainment Studios P&A LLC Media: Diversified & Production 0.10% 5.00% None 5/18/2037Entrans International, LLC Capital Equipment 1.59% LIBOR+6.00% 0.00% LIBOR Floor 11/1/2024ES Chappaquiddick LLC Media: Diversified & Production 0.06% 10.00% None 5/18/2022Evergreen Skills Lux S.À.R.L. High Tech Industries 0.43% LIBOR+4.75% 1.00% LIBOR Floor 4/28/2021Extreme Reach, Inc. Media: Diversified & Production 1.02% LIBOR+7.50% 0.00% LIBOR Floor 3/29/2024Extreme Reach, Inc. Media: Diversified & Production 0.11% LIBOR+7.50% 0.00% LIBOR Floor 3/29/2024F+W Media, Inc. Media: Diversified & Production 0.00% LIBOR+6.50% 1.50% LIBOR Floor 5/24/2022Flavors Holdings Inc. Consumer Goods: Non-Durable 0.84% LIBOR+5.75% 1.00% LIBOR Floor 4/3/2020Foundation Consumer Healthcare, LLC Healthcare & Pharmaceuticals 2.57% LIBOR+5.50% 1.00% LIBOR Floor 11/2/2023Foundation Consumer Healthcare, LLC Healthcare & Pharmaceuticals 0.00% 0.50% Unfunded None 11/2/2023Genesis Healthcare, Inc. Healthcare & Pharmaceuticals 1.80% LIBOR+6.00% 0.50% LIBOR Floor 3/6/2023Geo Parent Corp. Services: Business 0.89% LIBOR+5.25% 0.00% LIBOR Floor 12/19/20252 • CIC Portfolio HoldingsFOR EXISTING INVESTORS ONLY.
COMPANY NAME INDUSTRY WEIGHTING(1) RATE(2,3) LIBOR / EURIBOR FLOOR(4)MATURITY DATE1ST LIEN SENIOR SECURED DEBT: 80.6% (CONTINUED)Geon Performance Solutions, LLC Chemicals, Plastics & Rubber 1.03% LIBOR+6.25% 1.63% LIBOR Floor 10/25/2024Geon Performance Solutions, LLC Chemicals, Plastics & Rubber 0.03% LIBOR+6.25% 1.63% LIBOR Floor 10/25/2024Geon Performance Solutions, LLC Chemicals, Plastics & Rubber -0.01% 0.50% Unfunded None 10/25/2024Harland Clarke Holdings Corp. Services: Business 0.57% LIBOR+4.75% 1.00% LIBOR Floor 11/3/2023Healogics, Inc. Healthcare & Pharmaceuticals 0.27% LIBOR+4.25% 1.00% LIBOR Floor 7/1/2021Hilliard, Martinez & Gonzales, LLP Services: Consumer 0.94% LIBOR+18.00% 2.00% LIBOR Floor 12/17/2022 Homer City Generation, L.P. Energy: Oil & Gas 0.48% LIBOR+11.00% 1.00% LIBOR Floor 4/5/2023 HUMC Holdco, LLC Healthcare & Pharmaceuticals 0.61% 9.00% None 6/26/2020Hummel Station LLC Energy: Oil & Gas 0.57% LIBOR+6.00% 1.00% LIBOR Floor 10/27/2022Hyperion Materials & Technologies, Inc. Chemicals, Plastics & Rubber 0.58% LIBOR+5.50% 1.00% LIBOR Floor 8/28/2026 Independent Pet Partners Intermediate Holdings, LLC Retail 0.73% LIBOR+9.00% 1.00% LIBOR Floor 11/19/2023 Independent Pet Partners Intermediate Holdings, LLC Retail -0.04% 1.00% Unfunded None 11/19/2023 Infinity Sales Group, LLC Services: Business 0.43% LIBOR+10.50% 1.00% LIBOR Floor 11/23/2022Infogroup Inc. Media: Advertising, Printing & Publishing 0.88% LIBOR+5.00% 1.00% LIBOR Floor 4/3/2023Instant Web, LLC Media: Advertising, Printing & Publishing 2.19% LIBOR+6.50% 1.00% LIBOR Floor 12/15/2022Instant Web, LLC Media: Advertising, Printing & Publishing 0.16% LIBOR+6.50% 1.00% LIBOR Floor 12/15/2022Isagenix International, LLC Beverage, Food & Tobacco 0.48% LIBOR+5.75% 1.00% LIBOR Floor 6/14/2025Island Medical Management Holdings, LLC Healthcare & Pharmaceuticals 0.71% LIBOR+6.50% 1.00% LIBOR Floor 9/1/2022Jab Wireless, Inc. Telecommunications 0.85% LIBOR+8.00% 0.00% LIBOR Floor 5/2/2023Jenny C Acquisition, Inc. Services: Consumer 0.56% LIBOR+10.50% 0.00% LIBOR Floor 10/1/2024JP Intermediate B, LLC Beverage, Food & Tobacco 0.76% LIBOR+5.50% 1.00% LIBOR Floor 11/20/2025KLO Intermediate Holdings, LLC Chemicals, Plastics & Rubber 0.09% LIBOR+7.75% 1.50% LIBOR Floor 4/7/2022KLO Intermediate Holdings, LLC Chemicals, Plastics & Rubber 0.00% LIBOR+7.75% 1.50% LIBOR Floor 4/7/2022KNB Holdings Corp. Consumer Goods: Durable 0.29% LIBOR+5.50% 1.00% LIBOR Floor 4/26/2024Labvantage Solutions Inc. High Tech Industries 0.22% LIBOR+7.5% 1.00% LIBOR Floor 12/29/2020Labvantage Solutions Ltd. High Tech Industries 0.25% EURIBOR+7.5% 1.00%EURIBOR Floor 12/29/2020LAV Gear Holdings, Inc. Services: Business 1.15% LIBOR+5.50% 1.00% LIBOR Floor 10/31/2024LAV Gear Holdings, Inc. Services: Business 0.25% LIBOR+5.50% 1.00% LIBOR Floor 10/31/2024LAV Gear Holdings, Inc. Services: Business 0.00% 1.00% Unfunded None 4/7/2021LD Intermediate Holdings, Inc. High Tech Industries 0.71% LIBOR+5.88% 1.00% LIBOR Floor 12/9/2022LGC US Finco, LLC Capital Equipment 0.61% LIBOR+6.50% 1.00% LIBOR Floor 12/20/2025Lift Brands, Inc. Services: Consumer 2.33% LIBOR+7.00% 1.00% LIBOR Floor 4/16/2023Lift Brands, Inc. Services: Consumer 0.13% LIBOR+7.00% 1.00% LIBOR Floor 4/16/2023Lift Brands, Inc. Services: Consumer -0.02% 1.00% Unfunded None 4/16/2023Longview Power, LLC Energy: Oil & Gas 0.55% LIBOR+6.00% 1.00% LIBOR Floor 4/13/2021Manna Pro Products, LLC Retail 0.21% LIBOR+6.00% 0.00% LIBOR Floor 12/8/2023Manna Pro Products, LLC Retail 0.07% LIBOR+6.00% 0.00% LIBOR Floor 12/8/2023Manna Pro Products, LLC Retail 0.00% 1.00% Unfunded None 5/31/2021Mimeo.com, Inc. Services: Business 1.35% LIBOR+7.00% 1.00% LIBOR Floor 12/21/2023Mimeo.com, Inc. Services: Business 0.18% LIBOR+7.00% 1.00% LIBOR Floor 12/21/2023Mimeo.com, Inc. Services: Business -0.03% 0.25% Unfunded None 12/21/2020Moss Holding Company Services: Business 1.17% LIBOR+6.25% 1.00% LIBOR Floor 4/17/2023Moss Holding Company Services: Business 0.00% 6.25% Unfunded None 4/17/2023Moss Holding Company Services: Business -0.01% 0.50% Unfunded None 4/17/2023Moxie Patriot LLC Energy: Oil & Gas 0.59% LIBOR+5.75% 1.00% LIBOR Floor 12/19/2020FOR EXISTING INVESTORS ONLY.CIC Portfolio Holdings • 3
COMPANY NAME INDUSTRY WEIGHTING(1) RATE(2,3) LIBOR / EURIBOR FLOOR(4)MATURITY DATE1ST LIEN SENIOR SECURED DEBT: 80.6% (CONTINUED)Murray Energy Corp. Metals & Mining 0.02% LIBOR+7.25% 1.00% LIBOR Floor 10/17/2022Murray Energy Corp. Metals & Mining 0.04% LIBOR+11.00% 2.00% LIBOR Floor 7/29/2020NewsCycle Solutions, Inc. Media: Advertising, Printing & Publishing 0.90% LIBOR+7.00% 1.00% LIBOR Floor 12/29/2022One Call Corp. Healthcare & Pharmaceuticals 0.23% LIBOR+5.25% 1.00% LIBOR Floor 11/25/2022Optio Rx, LLC Healthcare & Pharmaceuticals 1.26% LIBOR+7.00% 0.00% LIBOR Floor 6/28/2024Palmetto Solar, LLC High Tech Industries 0.29% 12.00% None 12/12/2024Palmetto Solar, LLC High Tech Industries -0.06% 0.75% Unfunded None 12/12/2021PFS Holding Corp. Retail 0.18% LIBOR+3.50% 1.00% LIBOR Floor 1/31/2021PH Beauty Holdings III. Inc. Consumer Goods: Non-Durable 0.28% LIBOR+5.00% 0.00% LIBOR Floor 9/28/2025Pixelle Specialty Solutions LLC Forest Products & Paper 1.25% LIBOR+6.50% 1.00% LIBOR Floor 10/31/2024Plano Molding Company, LLC Consumer Goods: Non-Durable 0.36% LIBOR+7.50% 1.00% LIBOR Floor 5/12/2021Polymer Additives, Inc. Chemicals, Plastics & Rubber 1.02% LIBOR+6.00% 0.00% LIBOR Floor 7/31/2025Polymer Process Holdings, Inc. Chemicals, Plastics & Rubber 1.19% LIBOR+6.00% 0.00% LIBOR Floor 5/1/2026Rhino Energy LLC Metals & Mining 0.58% LIBOR+10.00% 1.00% LIBOR Floor 12/27/2022SCIH Salt Intermediate Holdings Inc. Metals & Mining 0.58% LIBOR+4.50% 1.00% LIBOR Floor 3/16/2027Securus Technologies Holdings, Inc. Telecommunications 0.24% LIBOR+4.50% 1.00% LIBOR Floor 11/1/2024SEK Holding Co LLC Banking, Finance, Insurance & Real Estate 0.90% LIBOR+11.50% 0.00% LIBOR Floor 3/14/2022Sequoia Healthcare Management, LLC Healthcare & Pharmaceuticals 0.50% 12.75% None 8/21/2023SIMR, LLC Healthcare & Pharmaceuticals 0.91% LIBOR+17.00% 2.00% LIBOR Floor 9/7/2023Smart & Final Inc. Retail 0.60% LIBOR+6.75% 0.00% LIBOR Floor 6/20/2025Sorenson Communications, LLC Telecommunications 0.84% LIBOR+6.50% 0.00% LIBOR Floor 4/30/2024Spinal USA, Inc. / Precision Medical Inc. Healthcare & Pharmaceuticals 0.73% LIBOR+9.50% 1.00% LIBOR Floor 6/30/2021Spinal USA, Inc. / Precision Medical Inc. Healthcare & Pharmaceuticals 0.06% LIBOR+9.50% 1.00% LIBOR Floor 6/30/2021Spinal USA, Inc. / Precision Medical Inc. Healthcare & Pharmaceuticals 0.03% LIBOR+9.50% 1.00% LIBOR Floor 6/30/2021Stats Intermediate Holdings, LLC High Tech Industries 0.56% LIBOR+5.25% 0.00% LIBOR Floor 7/12/2026Teladoc, Inc. High Tech Industries 0.00% 0.50% Unfunded None 7/14/2020Telestream Holdings Corp. High Tech Industries 0.54% LIBOR+6.45% 1.00% LIBOR Floor 3/24/2022Tenere Inc. Capital Equipment 1.78% LIBOR+10.00% 1.00% LIBOR Floor 12/23/2021Tensar Corp. Chemicals, Plastics & Rubber 0.81% LIBOR+4.75% 1.00% LIBOR Floor 7/9/2021The Pasha Group Transportation: Cargo 0.34% LIBOR+7.50% 1.00% LIBOR Floor 1/26/2023The Pay-O-Matic Corp. Services: Consumer 0.56% LIBOR+9.00% 0.00% LIBOR Floor 4/5/2021Therapure Biopharma Inc. Healthcare & Pharmaceuticals 0.76% LIBOR+8.75% 0.50% LIBOR Floor 12/1/2021Volta Charging, LLC Media: Diversified & Production 0.63% 12.00% None 6/19/2024Volta Charging, LLC Media: Diversified & Production 0.39% 12.00% None 6/19/2024Volta Charging, LLC Media: Diversified & Production 0.00% 0.00% Unfunded None 6/19/2021West Dermatology Management Holdings, LLC Healthcare & Pharmaceuticals 0.58% LIBOR+6.00% 0.00% LIBOR Floor 2/11/2025West Dermatology Management Holdings, LLC Healthcare & Pharmaceuticals 0.10% LIBOR+6.00% 0.00% LIBOR Floor 2/11/2025West Dermatology Management Holdings, LLC Healthcare & Pharmaceuticals -0.02% 0.75% Unfunded None 2/11/2022Winebow Holdings, Inc. Beverage, Food & Tobacco 0.34% LIBOR+3.75% 1.00% LIBOR Floor 7/1/2021Wok Holdings Inc. Beverage, Food & Tobacco 0.66% LIBOR+6.50% 0.00% LIBOR Floor 3/1/2026Woodstream Corp. Consumer Goods: Non-Durable 0.58% LIBOR+6.00% 1.00% LIBOR Floor 5/29/2022Woodstream Corp. Consumer Goods: Non-Durable 0.03% LIBOR+6.00% 1.00% LIBOR Floor 5/29/20224 • CIC Portfolio HoldingsFOR EXISTING INVESTORS ONLY.
COMPANY NAME INDUSTRY WEIGHTING(2) RATE(3,4) LIBOR / EURIBOR FLOOR(5)MATURITY DATE2ND LIEN SENIOR SECURED DEBT: 12.7%1A Smart Start LLC High Tech Industries 0.83% LIBOR+8.25% 1.00% LIBOR Floor 8/21/2022Access CIG, LLC Services: Business 1.01% LIBOR+7.75% 0.00% LIBOR Floor 2/27/2026Albany Molecular Research, Inc. Healthcare & Pharmaceuticals 0.60% LIBOR+7.00% 1.00% LIBOR Floor 8/30/2025 American Residential Services LLC Construction & Building 0.31% LIBOR+8.00% 1.00% LIBOR Floor 12/31/2022 Carestream Health, Inc. Healthcare & Pharmaceuticals 0.64% LIBOR+9.50% 1.00% LIBOR Floor 6/7/2021Country Fresh Holdings, LLC Beverage, Food & Tobacco 0.13% LIBOR+8.50% 1.00% LIBOR Floor 4/29/2024Dayton Superior Corp. Construction & Building 0.09% LIBOR+7.00% 2.00% LIBOR Floor 12/4/2024Deluxe Entertainment Services Inc. Media: Diversified & Production 0.54% LIBOR+8.50% 1.00% LIBOR Floor 9/25/2024Eagletree-Carbide Acquisition Corp. Consumer Goods: Durable 1.53% LIBOR+8.50% 1.00% LIBOR Floor 8/28/2025Evergreen Skills Lux S.À.R.L. High Tech Industries 0.11% LIBOR+8.25% 1.00% LIBOR Floor 4/28/2022Global Tel*Link Corp. Telecommunications 0.69% LIBOR+8.25% 0.00% LIBOR Floor 11/29/2026LSCS Holdings, Inc. Services: Business 0.60% LIBOR+8.25% 0.00% LIBOR Floor 3/16/2026Medical Solutions Holdings, Inc. Healthcare & Pharmaceuticals 0.59% LIBOR+8.375% 1.00% LIBOR Floor 6/16/2025Medplast Holdings, Inc. Healthcare & Pharmaceuticals 0.37% LIBOR+7.75% 0.00% LIBOR Floor 7/2/2026Ministry Brands, LLC Services: Business 0.42% LIBOR+9.25% 1.00% LIBOR Floor 6/2/2023Niacet Corp. Chemicals, Plastics & Rubber 0.51% EURIBOR+8.75% 1.00% EURIBOR Floor 8/1/2024Patterson Medical Supply, Inc. Healthcare & Pharmaceuticals 0.70% LIBOR+8.50% 1.00% LIBOR Floor 8/28/2023PetroChoice Holdings, Inc. Chemicals, Plastics & Rubber 0.55% LIBOR+8.75% 1.00% LIBOR Floor 8/21/2023PFS Holding Corp. Retail 0.00% LIBOR+7.25% 1.00% LIBOR Floor 1/31/2022Premiere Global Services, Inc. Telecommunications 0.07% LIBOR+9.50% 1.00% LIBOR Floor 6/6/2024Securus Technologies Holdings, Inc. Telecommunications 0.15% LIBOR+8.25% 1.00% LIBOR Floor 11/1/2025TMK Hawk Parent, Corp. Services: Business 0.70% LIBOR+8.00% 1.00% LIBOR Floor 8/28/2025Winebow Holdings, Inc. Beverage, Food & Tobacco 0.51% LIBOR+7.50% 1.00% LIBOR Floor 1/2/2022Zest Acquisition Corp. Healthcare & Pharmaceuticals 0.83% LIBOR+7.50% 1.00% LIBOR Floor 3/14/2026Zywave Inc. High Tech Industries 0.21% LIBOR+9.00% 1.00% LIBOR Floor 11/17/2023COMPANY NAME INDUSTRY WEIGHTING(1) RATE(2,3) TYPEEQUITY: 5.7%Anthem Sports and Entertainment Inc. Media: Diversified & Production 0.01% None Class A Preferred Stock Warrants Anthem Sports and Entertainment Inc. Media: Diversified & Production 0.00% None Class B Preferred Stock Warrants Anthem Sports and Entertainment Inc. Media: Diversified & Production 0.00% None Common Stock Warrants Ascent Resources - Marcellus, LLC Energy: Oil & Gas 0.03% None Common Shares Ascent Resources - Marcellus, LLC Energy: Oil & Gas 0.00% None Warrants Avaya Holdings Corp. Telecommunications 0.16% None Common Stock BCP Great Lakes Fund LP Diversified Financials 0.69% None Partnership Interests CHC Medical Partners, Inc. Healthcare & Pharmaceuticals 0.28% 12.00% Series C Preferred Stock CION SOF Funding, LLC Diversified Financials 1.75% None Membership Interests Conisus Holdings, Inc Healthcare & Pharmaceuticals 0.88% 12.00% Series B Preferred Stock Conisus Holdings, Inc Healthcare & Pharmaceuticals 0.19% None Common Stock Country Fresh Holdings, LLC Beverage, Food & Tobacco 0.09% None Common Stock Dayton HoldCo, LLC Construction & Building 0.31% None Common Stock DBI Investors, Inc. Retail 0.01% None Series A Preferred Stock DBI Investors, Inc. Retail 0.01% None Series B Preferred Stock DBI Investors, Inc. Retail 0.00% None Common StockFOR EXISTING INVESTORS ONLY.CIC Portfolio Holdings • 5
COMPANY NAME INDUSTRY WEIGHTING(1) RATE(2,3) TYPEEQUITY: 5.7% (CONTINUED)DBI Investors, Inc. Retail 0.00% None Reallocation Rights DESG Holdings, Inc. Media: Diversified & Production 0.86% None Common Stock HDNet Holdco LLC Media: Diversified & Production 0.00% None Preferred Unit Call Options Independent Pet Partners Intermediate Holdings, LLC Retail 0.05% None Class A Preferred Units Independent Pet Partners Intermediate Holdings, LLC Retail 0.00% None Warrants Mooregate ITC Acquisition, LLC High Tech Industries 0.00% None Class A Units Mount Logan Capital Inc. Banking, Finance, Insurance & Real Estate 0.13% None Common StockNS NWN Acquisition, LLC High Tech Industries 0.03% None Voting UnitsNS NWN Acquisition, LLC High Tech Industries 0.02% None Class A Preferred Units NSG Co-Invest (Bermuda) LP Consumer Goods: Durable 0.01% None Partnership Interests Palmetto Clean Technology, Inc. High Tech Industries 0.01% None Warrants Rhino Energy LLC Metals & Mining 0.00% None WarrantsSIMR Parent, LLC Healthcare & Pharmaceuticals 0.06% None Class B Common UnitsSpinal USA, Inc. / Precision Medical Inc. Healthcare & Pharmaceuticals 0.00% None WarrantsTenere Inc. Capital Equipment 0.08% None WarrantsCOMPANY NAME INDUSTRY WEIGHTING(1) RATE(2,3) LIBOR / EURIBOR FLOOR(4)MATURITY DATECOLLATERALIZED SECURITIES AND STRUCTURED PRODUCTS - EQUITY: 0.7%APIDOS CLO XVI Subordinated Notes Diversified Financials 0.13% Residual None 1/19/2025CENT CLO 19 Ltd. Subordinated Notes Diversified Financials 0.01% Residual None 10/29/2025Galaxy XV CLO Ltd. Class A Subordinated Notes Diversified Financials 0.05% Residual None 4/15/2025Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan Diversified Financials 0.51% Residual None 2/2/2026COMPANY NAME INDUSTRY WEIGHTING(1) RATE(2,3) LIBOR / EURIBOR FLOOR(4)MATURITY DATEUNSECURED DEBT: 0.3%WPLM Acquisition Corp. Media: Advertising, Printing & Publishing 0.30% 15.00% None 11/24/20251. Information is based on the relative fair value of the underlying portfolio holdings. 2. London Interbank Offered Rate, or LIBOR, is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. Euro Interbank Offered Rate, or EURIBOR, is an interest rate at which banks can borrow funds, in marketable size, from other banks in the European interbank market. Residual cash flow is excess cash flow after payment of any fees/expenses and obligations related to senior notes, including interest and principal repayments. 3. Rate is the total interest rate on the loan, often based on LIBOR or EURIBOR, plus a margin, or residual cash flow. 4. Debt with a LIBOR or EURIBOR floor pay an interest rate of LIBOR or EURIBOR, plus a margin, so long as LIBOR or EURIBOR remains above the specified floor level. If however, LIBOR or EURIBOR falls below the floor, the interest rate is the floor level plus the applicable margin. Data excludes short term investments, which represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less. Percentages represent approximate figures.This portfolio holdings fact sheet reflects CIC’s holdings as of the date indicated herein. There is no assurance that additional similar transactions will be available to CIC or that CIC’s investment portfolio composition going forward will be as described herein.6 • CIC Portfolio HoldingsFOR EXISTING INVESTORS ONLY.
CION Investments 3 Park Avenue, 36th Floor New York, NY 10016 cioninvestments.comCIC-PH-0520FOR EXISTING INVESTORS ONLY.