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v3.23.1

Investments (Tables) | 3 Months Ended
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Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
Schedule of Investments | The composition of the Company’s investment portfolio as of March 31, 2023 and December 31, 2022 at amortized cost and fair value was as follows:
|  | March 31, 2023 |  | December 31, 2022
|  | Cost(1) |  | Fair Value |  | Percentage of Investment Portfolio |  | Cost(1) |  | Fair Value |  | Percentage of Investment Portfolio
Senior secured first lien debt |  | $ | 1,567,330 |  |  | $ | 1,472,453 |  |  | 88.8 | % |  | $ | 1,638,995 |  |  | $ | 1,579,512 |  |  | 90.3 | %
Senior secured second lien debt |  | 41,102 |  |  | 38,997 |  |  | 2.4 | % |  | 41,036 |  |  | 38,769 |  |  | 2.2 | %
Collateralized securities and structured products - equity |  | 2,606 |  |  | 1,133 |  |  | 0.1 | % |  | 2,687 |  |  | 1,179 |  |  | 0.1 | %
Unsecured debt |  | 30,431 |  |  | 15,517 |  |  | 0.9 | % |  | 30,427 |  |  | 22,643 |  |  | 1.3 | %
Equity |  | 115,514 |  |  | 128,926 |  |  | 7.8 | % |  | 79,595 |  |  | 107,058 |  |  | 6.1 | %
Subtotal/total percentage |  | 1,756,983 |  |  | 1,657,026 |  |  | 100.0 | % |  | 1,792,740 |  |  | 1,749,161 |  |  | 100.0 | %
Short term investments(2) |  | 66,326 |  |  | 66,326 |  |  |  |  | 10,869 |  |  | 10,869 |  |  |
Total investments |  | $ | 1,823,309 |  |  | $ | 1,723,352 |  |  |  |  | $ | 1,803,609 |  |  | $ | 1,760,030 |  |  |
(1)Cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, for debt investments and cost for equity investments. (2)Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less. The 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 March 31, 2023 and December 31, 2022:
|  | March 31, 2023 |  | December 31, 2022
Industry Classification |  | Investments at Fair Value |  | Percentage of Investment Portfolio |  | Investments at Fair Value |  | Percentage of Investment Portfolio
Services: Business |  | $ | 340,815 |  |  | 20.6 | % |  | $ | 336,055 |  |  | 19.2 | %
Healthcare & Pharmaceuticals |  | 232,306 |  |  | 14.0 | % |  | 237,082 |  |  | 13.6 | %
Media: Diversified & Production |  | 126,177 |  |  | 7.6 | % |  | 134,927 |  |  | 7.7 | %
Services: Consumer |  | 106,082 |  |  | 6.4 | % |  | 115,849 |  |  | 6.6 | %
Media: Advertising, Printing & Publishing |  | 87,247 |  |  | 5.3 | % |  | 105,375 |  |  | 6.0 | %
Diversified Financials |  | 81,724 |  |  | 4.9 | % |  | 99,819 |  |  | 5.7 | %
Chemicals, Plastics & Rubber |  | 66,992 |  |  | 4.0 | % |  | 66,753 |  |  | 3.8 | %
Energy: Oil & Gas |  | 65,343 |  |  | 3.9 | % |  | 68,756 |  |  | 3.9 | %
Consumer Goods: Durable |  | 62,420 |  |  | 3.8 | % |  | 60,735 |  |  | 3.5 | %
Retail |  | 57,034 |  |  | 3.4 | % |  | 74,718 |  |  | 4.3 | %
High Tech Industries |  | 53,597 |  |  | 3.2 | % |  | 56,501 |  |  | 3.2 | %
Construction & Building |  | 51,310 |  |  | 3.1 | % |  | 46,007 |  |  | 2.6 | %
Beverage, Food & Tobacco |  | 44,519 |  |  | 2.7 | % |  | 45,396 |  |  | 2.6 | %
Consumer Goods: Non-Durable |  | 42,305 |  |  | 2.6 | % |  | 47,886 |  |  | 2.8 | %
Capital Equipment |  | 41,713 |  |  | 2.5 | % |  | 41,580 |  |  | 2.4 | %
Aerospace & Defense |  | 39,195 |  |  | 2.4 | % |  | 38,842 |  |  | 2.2 | %
Banking, Finance, Insurance & Real Estate |  | 39,048 |  |  | 2.4 | % |  | 43,836 |  |  | 2.5 | %
Hotel, Gaming & Leisure |  | 38,520 |  |  | 2.3 | % |  | 46,739 |  |  | 2.7 | %
Containers, Packaging & Glass |  | 19,477 |  |  | 1.2 | % |  | 19,551 |  |  | 1.1 | %
Telecommunications |  | 18,315 |  |  | 1.1 | % |  | 18,302 |  |  | 1.1 | %
Automotive |  | 16,395 |  |  | 1.0 | % |  | 16,255 |  |  | 0.9 | %
Metals & Mining |  | 15,836 |  |  | 1.0 | % |  | 15,780 |  |  | 0.9 | %
Transportation: Cargo |  | 10,656 |  |  | 0.6 | % |  | 12,417 |  |  | 0.7 | %
Subtotal/total percentage |  | 1,657,026 |  |  | 100.0 | % |  | 1,749,161 |  |  | 100.0 | %
Short term investments |  | 66,326 |  |  |  |  | 10,869 |  |  |
Total investments |  | $ | 1,723,352 |  |  |  |  | $ | 1,760,030 |  |  |
|  | March 31, 2023 |  | December 31, 2022
Geographic Dispersion(1) |  | Investments at Fair Value |  | Percentage of Investment Portfolio |  | Investments at Fair Value |  | Percentage of Investment Portfolio
United States |  | $ | 1,647,499 |  |  | 99.4 | % |  | $ | 1,739,866 |  |  | 99.5 | %
Canada |  | 7,485 |  |  | 0.4 | % |  | 7,452 |  |  | 0.4 | %
Cayman Islands |  | 1,133 |  |  | 0.1 | % |  | 1,179 |  |  | 0.1 | %
Bermuda |  | 909 |  |  | 0.1 | % |  | 664 |  |  | — |
Subtotal/total percentage |  | 1,657,026 |  |  | 100.0 | % |  | 1,749,161 |  |  | 100.0 | %
Short term investments |  | 66,326 |  |  |  |  | 10,869 |  |  |
Total investments |  | $ | 1,723,352 |  |  |  |  | $ | 1,760,030 |  |  |
(1)The geographic dispersion is determined by the portfolio company's country of domicile. The following table sets forth the individual investments in CION/EagleTree's portfolio as of March 31, 2023:
Portfolio Company |  | Interest(a) |  | Maturity |  | Industry |  | Principal/ Par Amount/ Units |  | Cost(b) |  | Fair Value
Senior Secured First Lien Debt |  |  |  |  |  |  |  |  |  |  |  |
Berlitz Holdings, Inc.(g) |  | S+900, 1.00% SOFR Floor |  | 2/14/2025 |  | Services: Business |  | $ | 1,200 |  |  | $ | 1,133 |  |  | $ | 1,152 |
Community Tree Service, LLC(h) |  | S+850, 1.00% SOFR Floor |  | 6/17/2027 |  | Construction & Building |  | 498 |  |  | 498 |  |  | 475 |
Future Pak, LLC(e) |  | L+1000, 2.00% LIBOR Floor |  | 7/2/2024 |  | Healthcare & Pharmaceuticals |  | 1,280 |  |  | 1,271 |  |  | 1,280 |
Total Senior Secured First Lien Debt |  |  |  |  |  |  |  |  |  | 2,902 |  |  | 2,907 |
Senior Secured Second Lien Debt |  |  |  |  |  |  |  |  |  |  |  |
Access CIG, LLC(f) |  | L+775, 0.00% LIBOR Floor |  | 2/27/2026 |  | Services: Business |  | 7,250 |  |  | 7,222 |  |  | 6,942 |
Dayton Superior Corp.(e) |  | L+700, 2.00% LIBOR Floor |  | 12/4/2024 |  | Construction & Building |  | 1,006 |  |  | 1,006 |  |  | 1,004 |
MedPlast Holdings, Inc.(e) |  | L+775, 0.00% LIBOR Floor |  | 7/2/2026 |  | Healthcare & Pharmaceuticals |  | 6,750 |  |  | 6,172 |  |  | 6,345 |
Total Senior Secured Second Lien Debt |  |  |  |  |  |  |  |  |  | 14,400 |  |  | 14,291 |
Collateralized Securities and Structured Products - Equity |  |  |  |  |  |  |  |  |  |
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan(c) |  | 11.84% Estimated Yield |  | 2/2/2026 |  | Diversified Financials |  | 10,000 |  |  | 9,858 |  |  | 9,339 |
Total Collateralized Securities and Structured Products - Equity |  |  |  |  |  |  |  | 9,858 |  |  | 9,339 |
Equity |  |  |  |  |  |  |  |  |  |  |  |
American Clinical Solutions LLC, Class A Membership Interests(d) |  |  |  |  |  | Healthcare & Pharmaceuticals |  | 6,030,384 Units |  | 5,200 |  |  | 5,427 |
Anthem Sports and Entertainment Inc., Class A Preferred Stock Warrants(d) |  |  |  |  |  | Media: Diversified & Production |  | 1,469 Units |  | 486 |  |  | 1,644 |
Anthem Sports and Entertainment Inc., Class B Preferred Stock Warrants(d) |  |  |  |  |  | Media: Diversified & Production |  | 255 Units |  | — |  |  | 167 |
Anthem Sports and Entertainment Inc., Common Stock Warrants(d) |  |  |  |  |  | Media: Diversified & Production |  | 4,746 Units |  | — |  |  | 315 |
BCP Great Lakes II - Series A Holdings LP, Partnership Interests (4.2% ownership) |  |  |  |  |  | Diversified Financials |  | N/A |  | 12,966 |  |  | 12,573 |
Carestream Health Holdings, Inc., Common Stock(d) |  |  |  |  |  | Healthcare & Pharmaceuticals |  | 613,262 Units |  | 21,759 |  |  | 19,710 |
CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend |  |  |  |  |  | Healthcare & Pharmaceuticals |  | 2,727,273 Units |  | 7,973 |  |  | 8,995 |
CTS Ultimate Holdings LLC, Class A Preferred Units(d) |  |  |  |  |  | Construction & Building |  | 3,578,701 Units |  | 1,000 |  |  | 644 |
Dayton HoldCo, LLC, Membership Units(d) |  |  |  |  |  | Construction & Building |  | 37,264 Units |  | 8,400 |  |  | 15,617 |
HDNet Holdco LLC, Preferred Unit Call Option(d) |  |  |  |  |  | Media: Diversified & Production |  | 1 Unit |  | — |  |  | 98 |
HW Ultimate Holdings, LP, Class A Membership Units, 4% Dividend(i) |  |  |  |  |  | Capital Equipment |  | 2,000,000 Units |  | 2,082 |  |  | 40 |
Language Education Holdings GP LLC, Common Units(d) |  |  |  |  |  | Services: Business |  | 133,333 Units |  | — |  |  | — |
Language Education Holdings LP, Ordinary Common Units(d) |  |  |  |  |  | Services: Business |  | 133,333 Units |  | 300 |  |  | 468 |
Skillsoft Corp., Class A Common Stock(d) |  |  |  |  |  | High Tech Industries |  | 243,425 Units |  | 2,000 |  |  | 487 |
Spinal USA, Inc. / Precision Medical Inc., Warrants(d) |  |  |  |  |  | Healthcare & Pharmaceuticals |  | 20,667,324 Units |  | — |  |  | — |
Total Equity |  |  |  |  |  |  |  |  |  | 62,166 |  |  | 66,185 |
TOTAL INVESTMENTS |  |  |  |  |  |  |  |  |  | $ | 89,326 |  |  | $ | 92,722 |
a.The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of March 31, 2023, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to March 31, 2023. The actual SOFR rate for each loan listed may not be the applicable SOFR rate as of March 31, 2023, as the loan may have been priced or repriced based on a SOFR rate prior to or subsequent to March 31, 2023. b.Represents amortized cost for debt securities and cost for equity investments. c.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. d.Non-income producing security. e.The interest rate on these loans is subject to 1 month LIBOR, which as of March 31, 2023 was 4.86%. f.The interest rate on these loans is subject to 3 month LIBOR, which as of March 31, 2023 was 5.19%. g.The interest rate on these loans is subject to 1 month SOFR, which as of March 31, 2023 was 4.80%. h.The interest rate on these loans is subject to 3 month SOFR, which as of March 31, 2023 was 4.91%. i.Investment or a portion thereof was on non-accrual status as of March 31, 2023. The following table sets forth the individual investments in CION/EagleTree's portfolio as of December 31, 2022:
Portfolio Company |  | Interest(a) |  | Maturity |  | Industry |  | Principal/ Par Amount/ Units |  | Cost(b) |  | Fair Value
Senior Secured First Lien Debt |  |  |  |  |  |  |  |  |  |  |  |
Berlitz Holdings, Inc.(g) |  | S+900, 1.00% SOFR Floor |  | 2/14/2025 |  | Services: Business |  | $ | 1,200 |  |  | $ | 1,125 |  |  | $ | 1,146 |
Community Tree Service, LLC(h) |  | S+850, 1.00% SOFR Floor |  | 6/17/2027 |  | Construction & Building |  | 499 |  |  | 499 |  |  | 489 |
Future Pak, LLC(e) |  | L+800, 2.00% LIBOR Floor |  | 7/2/2024 |  | Healthcare & Pharmaceuticals |  | 1,395 |  |  | 1,382 |  |  | 1,372 |
Total Senior Secured First Lien Debt |  |  |  |  |  |  |  |  |  | 3,006 |  |  | 3,007 |
Senior Secured Second Lien Debt |  |  |  |  |  |  |  |  |  |  |  |
Access CIG, LLC(f) |  | L+775, 0.00% LIBOR Floor |  | 2/27/2026 |  | Services: Business |  | 7,250 |  |  | 7,220 |  |  | 6,933 |
Dayton Superior Corp.(e) |  | L+700, 2.00% LIBOR Floor |  | 12/4/2024 |  | Construction & Building |  | 1,010 |  |  | 1,010 |  |  | 1,007 |
MedPlast Holdings, Inc.(e) |  | L+775, 0.00% LIBOR Floor |  | 7/2/2026 |  | Healthcare & Pharmaceuticals |  | 6,750 |  |  | 6,135 |  |  | 6,337 |
Zest Acquisition Corp.(e) |  | L+700, 1.00% LIBOR Floor |  | 3/14/2026 |  | Healthcare & Pharmaceuticals |  | 15,000 |  |  | 14,820 |  |  | 14,175 |
Total Senior Secured Second Lien Debt |  |  |  |  |  |  |  |  |  | 29,185 |  |  | 28,452 |
Collateralized Securities and Structured Products - Equity |  |  |  |  |  |  |  |  |  |
Ivy Hill Middle Market Credit Fund VIII, Ltd. Subordinated Loan(c) |  | 11.84% Estimated Yield |  | 2/2/2026 |  | Diversified Financials |  | 10,000 |  |  | 9,874 |  |  | 9,523 |
Total Collateralized Securities and Structured Products - Equity |  |  |  |  |  |  |  | 9,874 |  |  | 9,523 |
Equity |  |  |  |  |  |  |  |  |  |  |  |
American Clinical Solutions LLC, Class A Membership Interests(d) |  |  |  |  |  | Healthcare & Pharmaceuticals |  | 6,030,384 Units |  | 5,200 |  |  | 3,618 |
Anthem Sports and Entertainment Inc., Class A Preferred Stock Warrants(d) |  |  |  |  |  | Media: Diversified & Production |  | 1,469 Units |  | 486 |  |  | 1,881 |
Anthem Sports and Entertainment Inc., Class B Preferred Stock Warrants(d) |  |  |  |  |  | Media: Diversified & Production |  | 255 Units |  | — |  |  | 187 |
Anthem Sports and Entertainment Inc., Common Stock Warrants(d) |  |  |  |  |  | Media: Diversified & Production |  | 4,746 Units |  | — |  |  | 580 |
BCP Great Lakes II - Series A Holdings LP, Partnership Interests (4.2% ownership) |  |  |  |  |  | Diversified Financials |  | N/A |  | 11,436 |  |  | 11,058 |
Carestream Health Holdings, Inc., Common Stock(d) |  |  |  |  |  | Healthcare & Pharmaceuticals |  | 613,262 Units |  | 21,759 |  |  | 21,544 |
CHC Medical Partners, Inc., Series C Preferred Stock, 12% Dividend |  |  |  |  |  | Healthcare & Pharmaceuticals |  | 2,727,273 Units |  | 7,891 |  |  | 8,877 |
CTS Ultimate Holdings LLC, Class A Preferred Units(d) |  |  |  |  |  | Construction & Building |  | 3,578,701 Units |  | 1,000 |  |  | 859 |
Dayton HoldCo, LLC, Membership Units(d) |  |  |  |  |  | Construction & Building |  | 37,264 Units |  | 8,400 |  |  | 15,334 |
HDNet Holdco LLC, Preferred Unit Call Option(d) |  |  |  |  |  | Media: Diversified & Production |  | 1 Unit |  | — |  |  | 185 |
HW Ultimate Holdings, LP, Class A Membership Units, 4% Dividend |  |  |  |  |  | Capital Equipment |  | 2,000,000 Units |  | 2,082 |  |  | 130 |
Language Education Holdings GP LLC, Common Units(d) |  |  |  |  |  | Services: Business |  | 133,333 Units |  | — |  |  | — |
Language Education Holdings LP, Ordinary Common Units(d) |  |  |  |  |  | Services: Business |  | 133,333 Units |  | 300 |  |  | 427 |
Skillsoft Corp., Class A Common Stock(d) |  |  |  |  |  | High Tech Industries |  | 243,425 Units |  | 2,000 |  |  | 316 |
Spinal USA, Inc. / Precision Medical Inc., Warrants(d) |  |  |  |  |  | Healthcare & Pharmaceuticals |  | 20,667,324 Units |  | — |  |  | — |
Total Equity |  |  |  |  |  |  |  |  |  | 60,554 |  |  | 64,996 |
TOTAL INVESTMENTS |  |  |  |  |  |  |  |  |  | $ | 102,619 |  |  | $ | 105,978 |
a.The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of December 31, 2022, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to December 31, 2022. The actual SOFR rate for each loan listed may not be the applicable SOFR rate as of December 31, 2022, as the loan may have been priced or repriced based on a SOFR rate prior to or subsequent to December 31, 2022. b.Represents amortized cost for debt securities and cost for equity investments. c.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. d.Non-income producing security. e.The interest rate on these loans is subject to 1 month LIBOR, which as of December 31, 2022 was 4.39%. f.The interest rate on these loans is subject to 3 month LIBOR, which as of December 31, 2022 was 4.77%. g.The interest rate on these loans is subject to 1 month SOFR, which as of December 31, 2022 was 4.36%. h.The interest rate on these loans is subject to 3 month SOFR, which as of December 31, 2022 was 4.59%. The following table includes selected balance sheet information for CION/EagleTree as of March 31, 2023 and December 31, 2022:
Selected Balance Sheet Information: |  | March 31, 2023 |  | December 31, 2022
Investments, at fair value (amortized cost of $89,326 and $102,619, respectively) |  | $ | 92,722 |  |  | $ | 105,978 |
Cash and other assets |  | 1,739 |  |  | 2,476 |
Dividend receivable on investments |  | 339 |  |  | 225 |
Interest receivable on investments |  | 282 |  |  | 301 |
Total assets |  | $ | 95,082 |  |  | $ | 108,980 |
Senior secured notes (net of unamortized debt issuance costs of $88 and $94, respectively) |  | $ | 64,414 |  |  | $ | 70,904 |
Other liabilities |  | 357 |  |  | 1,881 |
Total liabilities |  | 64,771 |  |  | 72,785 |
Members' capital |  | 30,311 |  |  | 36,195 |
Total liabilities and members' capital |  | $ | 95,082 |  |  | $ | 108,980 |
The following table includes selected statement of operations information for CION/EagleTree for the three months ended March 31, 2023 and 2022 and for the year ended December 31, 2022:
| Three Months Ended March 31, |  |  |  | Year Ended December 31,
Selected Statement of Operations Information: | 2023 |  | 2022 |  |  |  | 2022
Total revenues | $ | 1,595 |  |  | $ | 1,884 |  |  |  |  | $ | 9,653 |
Total expenses | 2,692 |  |  | 2,720 |  |  |  |  | 11,120 |
Net realized gain on investments | 176 |  |  | — |  |  |  |  | 9,947 |
Net change in unrealized appreciation (depreciation) on investments | 37 |  |  | 542 |  |  |  |  | (5,839) |
Net (decrease) increase in net assets | $ | (884) |  |  | $ | (294) |  |  |  |  | $ | 2,641 |

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