What changed in this filing

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Item 2. Management’s Discussion and Analysis

2021-08-13 compared with 2021-05-14 · 120 added, 65 removed, 334 unchanged (36% of the section changed)

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On November 13, 2020, our board of directors, including a majority of directors who are not interested persons, approved the renewal of the investment advisory agreement with CIM for a period of twelve months commencing December 17, 2020.

On April 5, 2021, our board of directors, including a majority 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).

We and CIM previously engaged AIM to act as our investment sub-adviser.

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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.

We seek to meet our investment objective by utilizing the experienced management team of CIM, which includes its access to the relationships and human capital of its affiliates in sourcing, evaluating and structuring transactions, as well as monitoring and servicing our investments.

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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 and repurchase shares from 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.

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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.

More Term Loan

On April 14, 2021, we entered into the Term Loan Agreement with More, as lender.

The More Term Loan provides for an unsecured term loan to us in an aggregate principal amount of $30,000.

On April 20, 2021, we drew down $30,000 of borrowings under the More Term Loan.

After the deduction of fees and other financing expenses, we received net borrowings of approximately $29,000, which we intend to use for working capital and other general corporate purposes.

See Note 14 to our consolidated financial statements contained in this report for additional information regarding the More Term Loan.

Portfolio Investment Activity for the Three Months Ended March 31, 2021 and 2020 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 March 31, 2021 and 2020 and the year ended December 31, 2020:

Portfolio Investment Activity for the Three Months Ended June 30, 2021 and 2020 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 June 30, 2021 and 2020 and the year ended December 31, 2020:

Three Months Ended

March 31, Year Ended

June 30, Year Ended

Net Investment Activity 2021 2020 2020

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Net portfolio activity $ 125,270 $ (48,979) $ (183,534)

The following tables summarize the composition of our investment portfolio at amortized cost and fair value as of March 31, 2021 and December 31, 2020:

March 31, 2021

The following tables summarize the composition of our investment portfolio at amortized cost and fair value as of June 30, 2021 and December 31, 2020:

June 30, 2021

Investments Cost(1) Investments Fair

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(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 March 31, 2021 and December 31, 2020, excluding short term investments of $87,593 and $73,597, respectively:

March 31, 2021 December 31, 2020

The following table summarizes the composition of our investment portfolio by the type of interest rate as of June 30, 2021 and December 31, 2020, excluding short term investments of $48,484 and $73,597, respectively:

June 30, 2021 December 31, 2020

Interest Rate Allocation Investments Cost Investments Fair Value Percentage of

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Total investments $ 1,712,351 $ 1,675,554 100.0 % $ 1,577,655 $ 1,495,774 100.0 %

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 March 31, 2021 and December 31, 2020:

March 31, 2021 December 31, 2020

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 June 30, 2021 and December 31, 2020:

June 30, 2021 December 31, 2020

Industry Classification Investments Fair Value Percentage of

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Business 268,849 16.0 % 211,572 14.0 %

Chemicals, Plastics & Rubber 124,555 8.1 % 141,654 9.5 %

Diversified & Production 127,105 7.6 % 108,078 7.2 %

Advertising, Printing & Publishing 108,664 7.1 % 110,083 7.4 %

Chemicals, Plastics & Rubber 124,017 7.4 % 141,654 9.5 %

Consumer 112,840 6.7 % 85,254 5.7 %

Beverage, Food & Tobacco 83,083 5.4 % 69,975 4.7 %

Advertising, Printing & Publishing 107,481 6.4 % 110,083 7.4 %

High Tech Industries 73,265 4.4 % 55,619 3.7 %

Beverage, Food & Tobacco 64,626 3.9 % 69,975 4.7 %

Capital Equipment 63,679 3.8 % 65,752 4.4 %

Banking, Finance, Insurance & Real Estate 53,168 3.2 % 41,211 2.8 %

Retail 45,543 2.7 % 29,312 2.0 %

Aerospace & Defense 42,331 2.5 % 35,751 2.4 %

Consumer Goods:

Durable 42,219 2.5 % 7,417 0.5 %

Telecommunications 41,975 2.5 % 46,638 3.1 %

Oil & Gas 41,543 2.5 % 28,136 1.9 %

Aerospace & Defense 36,513 2.4 % 35,751 2.4 %

Construction & Building 41,064 2.5 % 34,653 2.3 %

Hotel, Gaming & Leisure 33,523 2.0 % 21,920 1.5 %

Retail 28,751 1.9 % 29,312 2.0 %

Consumer Goods:

Non-Durable 32,534 1.9 % 15,757 1.1 %

Diversified Financials 25,710 1.5 % 37,214 2.5 %

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Cargo 17,960 1.1 % 19,001 1.3 %

Consumer Goods:

Non-Durable 16,202 1.1 % 15,757 1.1 %

Metals & Mining 11,297 0.7 % 10,147 0.7 %

Consumer Goods:

Durable 7,859 0.5 % 7,417 0.5 %

Subtotal/total percentage 1,675,554 100.0 % 1,495,774 100.0 %

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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 March 31, 2021 and December 31, 2020, our unfunded commitments amounted to $75,738 and $43,130 , respectively.

As of May 10, 2021, our unfunded commitments amounte d to $79,985.

As of June 30, 2021 and December 31, 2020, our unfunded commitments amounted to $80,283 and $43,130 , respectively.

As of August 5, 2021, our unfunded commitments amounte d 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.

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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 March 31, 2021 and December 31, 2020, excluding short term investments of $87,593 and $73,597, respectively:

March 31, 2021 December 31, 2020

The following table summarizes the composition of our investment portfolio based on the 1 to 5 investment rating scale at fair value as of June 30, 2021 and December 31, 2020, excluding short term investments of $48,484 and $73,597, respectively:

June 30, 2021 December 31, 2020

Investment Rating Investments

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Current Investment Portfolio

The following table summarizes the composition of our investment portfolio at fair value as of May 10, 2021:

The following table summarizes the composition of our investment portfolio at fair value as of August 5, 2021:

Investments Fair

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

Results of Operations for the Three Months Ended March 31, 2021 and 2020

Our results of operations for the three months ended March 31, 2021 and 2020 were as follows:

Results of Operations for the Three Months Ended June 30, 2021 and 2020

Our results of operations for the three months ended June 30, 2021 and 2020 were as follows:

Three Months Ended

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Net investment income 18,686 13,916

Net realized gain (loss) on investments and foreign currency 441 (10,986)

Net change in unrealized appreciation on investments 8,842 13,657

Net increase in net assets resulting from operations $ 27,969 $ 16,587

Investment Income

For the three months ended June 30, 2021 and 2020, we generated investment income of $38,021 and $35,808, respectively, consisting primarily of interest income on investments in senior secured debt, collateralized securities and structured products, and unsecured debt of 123 and 122 portfolio companies held during each respective period.

Our average investment portfolio size, excluding our short term investments, increased $44,289, from $1,560,512 for the three months ended June 30, 2020 to $1,604,801 for the three months ended June 30, 2021.

Additionally, investments on non-accrual status represented 0.4% of the Company's investment portfolio on a fair value basis as of June 30, 2021 compared to 3.0% as of June 30, 2020.

Operating Expenses

The composition of our operating expenses for the three months ended June 30, 2021 and 2020 was as follows:

Three Months Ended

Management fees $ 8,243 $ 7,929

Administrative services expense 697 806

General and administrative 2,567 1,715

Interest expense 7,828 11,442

Total operating expenses $ 19,335 $ 21,892

The decrease in interest expense during the three 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 composition of our general and administrative expenses for the three months ended June 30, 2021 and 2020 was as follows:

Three Months Ended

Professional fees $ 1,213 $ 613

Printing and marketing expense 355 103

Valuation expense 269 285

Transfer agent expense 253 260

Accounting and administration costs 175 137

Insurance expense 137 115

Director fees and expenses 111 113

Dues and subscriptions 27 67

Other expenses 27 22

Total general and administrative expense $ 2,567 $ 1,715

The increase in general and administrative expenses was primarily the result of higher professional fees incurred during the three months ended June 30, 2021 associated with the potential Listing and higher printing and marketing expense incurred during the three months ended June 30, 2021 associated with shareholder proxy solicitation costs.

Net Investment Income

Our net investment income totaled $18,686 and $13,916 for the three months ended June 30, 2021 and 2020, respectively.

The increase in our net investment income was primarily the 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 the three months ended June 30, 2020.

Net Realized Gain (Loss) on Investments and Foreign Currency

Our net realized gain (loss) on investments and foreign currency totaled $441 and $(10,986) for the three months ended June 30, 2021 and 2020, respectively, which were driven primarily by realized losses on the restructure of certain investments during the three months ended June 30, 2020.

Net Change in Unrealized Appreciation on Investments

The net change in unrealized appreciation on our investments totaled $8,842 and $13,657 for the three months ended June 30, 2021 and 2020, respectively.

We observed tightening credit spreads and increased multiples in equity markets that positively impacted the fair value of certain of our investments during the three months ended June 30, 2021 and 2020.

Net Increase in Net Assets Resulting from Operations

For the three months ended June 30, 2021 and 2020, we recorded a net increase in net assets resulting from operations of $27,969 and $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

Investment income $ 74,324 $ 81,556

Net operating expenses 38,039 45,979

Net investment income 36,285 35,577

Net realized loss on investments and foreign currency (3,687) (15,182)

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Investment Income

For the three months ended March 31, 2021 and 2020, we generated investment income of $36,303 and $45,748, respectively, consisting primarily of interest income on investments in senior secured debt, collateralized securities and structured products, and unsecured debt of 107 and 136 portfolio companies held during each respective period.

Our average investment portfolio size, excluding our short term investments, decreased $143,343, from $1,658,254 for the three months ended March 31, 2020 to $1,514,911 for the three months ended March 31, 2021.

Additionally, the decrease in LIBOR during the three months ended March 31, 2021 from the three months ended March 31, 2020 also contributed to the decrease in interest 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 a nd 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 three months ended March 31, 2021 and 2020 was as follows:

Three Months Ended

The composition of our operating expenses for the six months ended June 30, 2021 and 2020 was as follows:

Six Months Ended

Management fees $ 16,026 $ 16,380

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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.

The decrease in interest expense was primarily the result of a decrease in LIBOR during the three months ended March 31, 2021 as compared to the three months ended March 31, 2020.

The decrease in interest expense was also the result of lower average borrowings on our financing arrangements during the three months ended March 31, 2021 as compared to the three months ended March 31, 2020, which also resulted in a decrease in total assets and a decrease in management fees during the three months ended March 31, 2021.

The composition of our general and administrative expenses for the three months ended March 31, 2021 and 2020 was as follows:

Three Months Ended

The composition of our general and administrative expenses for the six months ended June 30, 2021 and 2020 was as follows:

Six Months Ended

Professional fees $ 2,478 $ 910

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Accounting and administration costs 412 283

Dues and subscriptions 169 82

Printing and marketing expense 399 118

Insurance expense 269 223

Director fees and expenses 214 229

Printing and marketing expense 44 15

Dues and subscriptions 196 149

Other expenses 92 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 $17,599 and $21,661 for the three months ended March 31, 2021 and 2020, respectively.

The decrease in our investment income during the three months ended March 31, 2021 as compared to the three months ended March 31, 2020 was offset by a decrease in our operating expenses during the same period.

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 $(4,128) and $(4,196) for the three months ended March 31, 2021 and 2020, respectively, which were driven primarily by realized losses on the liquidation of our investment in certain portfolio companies during both periods.

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 $36,243 and $(123,377) for the three months ended March 31, 2021 and 2020, respectively.

This change was driven primarily by tightening credit spreads and increased multiples in equity markets during the three months ended March 31, 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 three months ended March 31, 2020, which caused significant uncertainty and volatility in the U.S.

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 three months ended March 31, 2021 and 2020, we recorded a net increase (decrease) in net assets resulting from operations of $49,714 and $(105,912), respectively, as a result of our operating activity for the respective periods.

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 $8.06 and $7.75 on March 31, 2021 and December 31, 2020, respectively.

After considering (i) the overall changes in net asset value per share, (ii) paid distributions of approximately $0.1324 per share during the three months ended March 31, 2021, and (iii) the assumed reinvestment of those distributions in accordance with our distribution reinvestment plan then in effect, the total investment return-net asset value was 5.73% for the three-month period ended March 31, 2021.

Our net asset value per share was $8.17 and $7.75 on June 30, 2021 and December 31, 2020, respectively.

After considering (i) the overall changes in net asset value per share, (ii) paid distributions of approximately $0.2648 per share during the six months ended June 30, 2021, and (iii) the assumed reinvestment of those distributions in accordance with our distribution reinvestment plan then in effect, the total investment return-net asset value was 9.00% for the six-month period ended June 30, 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.

Initial shareholders who subscribed to the offering in December 2012 with an initial investment of $10,000 and an initial purchase price equal to $9.00 per share (public offering price excluding sales load) have seen an annualized return of 6.70% and a cumulative total return of 71.27% through March 31, 2021 (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 5.36% and a cumulative total return of 54.14% through March 31, 2021.

Initial shareholders who subscribed to the offering in December 2012 with an initial investment of $10,000 and an initial purchase price equal to $9.00 per share (public offering price excluding sales load) have seen an annualized return of 6.88% and a cumulative total return of 76.57% through June 30, 2021 (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 5.57% and a cumulative total return of 58.91% through June 30, 2021.

Over the same time period, the S&P/LSTA Leveraged Loan Index, a primary measure of senior debt covering the U.S.

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(1) Cumulative performance:

December 17, 2012 to March 31, 2021

December 17, 2012 to June 30, 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.

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and global economies as well as in the financial and credit markets.

Given the uncertainty as to the full severity and duration of the pandemic and its effects on us with respect to our compliance with covenants in our loan facilities with lenders and our borrowers’ ability to timely meet their financial obligations to us, management and our board of directors determined that it was in the best interest of our company and all of our shareholders to take certain steps disclosed below during the three months ended March 31, 2020 that were necessary to improve our cash position and preserve financial flexibility in the short term.

Given the uncertainty as to the full severity and duration of the pandemic and its effects on us with respect to our compliance with covenants in our loan facilities with lenders and our borrowers’ ability to timely meet their financial obligations to us, management and our board of directors determined that it was in the best interest of our company and all of our shareholders to take certain steps 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.

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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 March 19, 2020, our board of directors, including the independent directors, also determined to temporarily suspend our share repurchase program commencing with the second quarter of 2020.

On November 13, 2020, we recommenced our share repurchase program for the fourth quarter of 2020.

Share repurchases for future quarters will be evaluated by our board of directors based on circumstances and expectations existing at the time of consideration.

As of March 31, 2021 and December 31, 2020, we had $87,593 and $73,597 in short term investments, respectively, invested in a fund that primarily invests in U.S.

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 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 other 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 income and the 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 percentage of our net assets rather than our adjusted capital.

These changes are effective upon the Listing of our shares on a national securities exchange, 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 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 board may declare.

The declaration, payment and terms of this special cash distribution, like all future distributions, are subject to applicable legal restrictions and the sole discretion of our board of directors.

As of June 30, 2021 and December 31, 2020, we had $48,484 and $73,597 in short term investments, respectively, invested in a fund that primarily invests in U.S.

government securities.

JPM Credit Facility

As of March 31, 2021 and May 10, 2021, our outstanding borrowings under the Third Amended JPM Credit Facility were $500,000 and the aggregate unfunded principal amount in connection with the Third Amended JPM Credit Facility was $75,000.

As of June 30, 2021 and August 5, 2021, our outstanding borrowings under the Third Amended JPM Credit Facility were $550,000, and the aggregate unfunded principal amount in connection with the Third Amended JPM Credit Facility was $25,000.

For a detailed discussion of our Third Amended JPM Credit Facility, refer to Note 8 to our consolidated financial statements included in this report.

As of March 31, 2021 and May 10, 2021, our outstanding borrowings under the Amended UBS Facility were $100,000 and the aggregate unfunded principal amount in connection with the Amended UBS Facility was $50,000.

As of June 30, 2021 and August 5, 2021, our outstanding borrowings under the Amended UBS Facility were $100,000 and $121,000, respectively, and the aggregate unfunded principal amount in connection with the Amended UBS 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.

As of March 31, 2021 and May 10, 2021, we had $125,000 in aggregate principal amount of 2026 Notes outstanding.

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

On April 14, 2021, we entered into the More Term Loan.

As of May 10, 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.

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 March 31, 2021 and May 10, 2021, our unfunded commitments amounted to $75,738 and $79,985, respectively.

As of June 30, 2021 and August 5, 2021, our unfunded commitments amounted to $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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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis