-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WP1qX4ErmmtgWrGC7EBk1CHS1w0wVkzj1qMc1ajVYU34H8iMg8TI8cMFEdHLZ9TO 3Lj7dxUBdR56OiM1PlPILQ== 0001193125-04-152909.txt : 20040908 0001193125-04-152909.hdr.sgml : 20040908 20040907182003 ACCESSION NUMBER: 0001193125-04-152909 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040630 FILED AS OF DATE: 20040908 DATE AS OF CHANGE: 20040907 EFFECTIVENESS DATE: 20040908 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNAMERICA SENIOR FLOATING RATE FUND INC CENTRAL INDEX KEY: 0001059040 IRS NUMBER: 043412472 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08727 FILM NUMBER: 041019359 BUSINESS ADDRESS: STREET 1: 286 CONGRESS ST STREET 2: C/O NORTH AMERICAN FUNDS CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6173683535 MAIL ADDRESS: STREET 1: C/O NORTH AMERICAN FUNDS STREET 2: 286 CONGRESS ST CITY: BOSTON STATE: MA ZIP: 02110 FORMER COMPANY: FORMER CONFORMED NAME: NORTH AMERICAN SENIOR FLOATING RATE FUND INC DATE OF NAME CHANGE: 19980401 N-CSRS 1 dncsrs.txt SUNAMERICA SENIOR FLOATING RATE FUND, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08727 SunAmerica Senior Floating Rate Fund, Inc. (Exact name of registrant as specified in charter) Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311 (Address of principal executive offices) (Zip code) Robert M. Zakem, ESQ. Senior Vice President & General Counsel AIG SunAmerica Asset Management Corp. Harborside Financial Center 3200 Plaza 5 Jersey City, NJ 07311 (Name and address of agent for service) Registrant's telephone number, including area code: (201) 324-6363 Date of fiscal year end: December 31 Date of reporting period: June 30, 2004 Item 1. Reports to Shareholders SunAmerica Senior Floating Rate Fund, Inc. Semi-Annual report at June 30, 2004. [GRAPHIC] SunAmerica THE RETIREMENT SPECIALIST Senior Floating Rate Fund 2004 SEMIANNUAL REPORT [LOGO] AIG Sun America Mutual Funds Table of Contents SHAREHOLDER LETTER................. 1 STATEMENT OF ASSETS AND LIABILITIES 2 STATEMENT OF OPERATIONS............ 3 STATEMENT OF CHANGES IN NET ASSETS. 4 STATEMENT OF CASH FLOWS............ 5 FINANCIAL HIGHLIGHTS............... 6 PORTFOLIO OF INVESTMENTS........... 10 NOTES TO FINANCIAL STATEMENTS...... 15 DIRECTORS INFORMATION.............. 21
June 30, 2004 SEMIANNUAL REPORT Shareholder Letter Dear Shareholders, On June 30, 2004, the semiannual period for the SunAmerica Senior Floating Rate Fund came to a close. We are pleased to report that overall during this period, loans within the portfolio experienced price increases due to significant investor demand. At the same time, credit fundamentals of companies issuing loans continued to improve, driven by strength in the U.S. economy. Both of these factors drove the portfolio's positive performance during the first six months of 2004. Investment in sectors that performed strongly during this time frame also benefited the Fund. Chemicals continued to be the Fund's largest holding, followed by Healthcare, Broadcasting and Containers. It is also interesting to note that strong investor inflows into the Fund augmented the portfolio's size over the semiannual period, helping us to boost investment in other sectors, including the Automotive Industry. Over the past six months, investment in cyclical industries have generated the strongest gains for the portfolio, a dynamic we have capitalized upon fully as we sought, and succeeded in, augmenting performance. In the coming months, we will continue to exercise judicious care over the selection process for loans considered for inclusion in the SunAmerica Senior Floating Rate Fund. We thank you for your continued investment in the Fund. Sincerely, Chris Jansen, Senior Portfolio Manager Stanfield Capital Partners, LLC - -------- The Fund is not a money market fund and its net asset value may fluctuate. Investments in Loans involve certain risks including nonpayment of principal and interest; collateral impairment; nondiversification and borrower industry concentration; and lack of full liquidity, which may impair the Fund's ability to obtain full value for Loans sold. The Fund may invest all or substantially all of its assets in Loans or other securities that are rated below investment grade, or in comparable unrated securities. Credit risks include the possibility of a default on the Loan or bankruptcy of the borrower. The value of these Loans is subject to a greater degree of volatility in response to interest rate fluctuations. Past performance is no guarantee of future results. SunAmerica Senior Floating Rate Fund, Inc. STATEMENT OF ASSETS AND LIABILITIES -- June 30, 2004 -- (unaudited) ASSETS: Investments in loans and securities, at value*.................................................................... $178,227,618 Short-term securities*............................................................................................ 29,545,411 Cash.............................................................................................................. 623,701 Receivables for: Fund shares sold................................................................................................ 1,562,078 Dividends and interest.......................................................................................... 911,773 Investments sold................................................................................................ 4,271,506 Prepaid expenses and other assets................................................................................. 44,731 Due from investment advisor for expense reimbursements/fee waivers................................................ 35,314 Due from distributor for fee waivers.............................................................................. 59,093 ------------ Total assets.................................................................................................... 215,281,225 ------------ LIABILITIES: Payables for: Fund shares redeemed............................................................................................ 3,938,896 Investments purchased........................................................................................... 6,028,425 Investment advisory and management fees......................................................................... 136,414 Distribution and service maintenance fees....................................................................... 109,567 Administration fees............................................................................................. 65,606 Directors' fees and expenses.................................................................................... 649 Other accrued expenses.......................................................................................... 124,228 Dividends payable................................................................................................. 172,397 Commitments (Note 10)............................................................................................. -- ------------ Total liabilities............................................................................................... 10,576,182 ------------ Net assets.................................................................................................. $204,705,043 ============ NET ASSETS WERE COMPOSED OF: Capital shares at par value of $.01............................................................................... $ 217,300 Additional paid-in capital........................................................................................ 232,143,352 ------------ 232,360,652 Accumulated undistributed net investment income (loss)............................................................ (44,479) Accumulated net realized gain (loss) on investments............................................................... (27,636,905) Unrealized appreciation (depreciation) on investments............................................................. 25,775 ------------ Net assets.................................................................................................. $204,705,043 ============ Class A Class B Class C Class D NET ASSET VALUES: -------- ----------- ------------ ------------ Net assets...................................................................... $166,208 $27,491,593 $158,323,137 $ 18,724,105 Shares outstanding.............................................................. 17,640 2,918,322 16,806,381 1,987,610 Net Asset Value, offering and redemption price per share (excluding any applicable contingent deferred sales charges).................................. $ 9.42 $ 9.42 $ 9.42 $ 9.42 ======== =========== ============ ============ *Identified cost Investment securities........................................................................................... $178,201,843 ============ Short-term securities........................................................................................... $ 29,545,411 ============
See Notes to Financial Statements 2 SunAmerica Senior Floating Rate Fund, Inc. STATEMENT OF OPERATIONS -- For the six months ended June 30, 2004 -- (unaudited) INVESTMENT INCOME: Interest.......................................................................... $ 3,399,755 Dividends......................................................................... 79,692 Facility and other fee income (Note 2)............................................ 403,056 ----------- Total investment income........................................................ 3,882,503 ----------- EXPENSES: Investment advisory and management fees........................................... 712,582 Distribution and service maintenance fees: Class A......................................................................... 77 Class B......................................................................... 101,027 Class C......................................................................... 469,888 Transfer agent fees: Class A......................................................................... 210 Class B......................................................................... 12,882 Class C......................................................................... 35,746 Class D......................................................................... 5,378 Administration fees............................................................... 335,381 Accounting service fees........................................................... 24,300 Custodian fees.................................................................... 32,553 Audit and tax fees................................................................ 41,420 Reports to shareholders........................................................... 45,320 Legal fees........................................................................ 24,100 Directors' fees and expenses...................................................... 16,961 Interest expense.................................................................. 109 Other expenses.................................................................... 48,165 ----------- Total expenses before fee waivers, expense reimbursements and custody credits.. 1,906,099 Fees waived and expenses reimbursed by investment advisor and distributor...... (474,611) Custody credits earned on cash balances........................................ (2,523) ----------- Net expenses................................................................... 1,428,965 ----------- Net investment income (loss)...................................................... 2,453,538 ----------- REALIZED AND UNREALIZED GAIN/(LOSS): Net realized gain (loss) on investments........................................... (1,489,757) Change in unrealized appreciation (depreciation) on investments................... 3,083,235 ----------- Net realized and unrealized gain (loss) on investments............................ 1,593,478 ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $ 4,047,016 ===========
See Notes to Financial Statements 3 SunAmerica Senior Floating Rate Fund, Inc. STATEMENT OF CHANGES IN NET ASSETS
For the six months For the year ended ended June 30, 2004 December 31, (unaudited) 2003 ------------------ ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss).......................................................... $ 2,453,538 $ 5,512,446 Net realized gain (loss) on investments............................................... (1,489,757) (5,464,399) Change in unrealized appreciation (depreciation) on investments....................... 3,083,235 13,022,369 ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... 4,047,016 13,070,416 Distributions to shareholders from: Net investment income (Class A)....................................................... (986) -- Net investment income (Class B)....................................................... (391,603) (1,250,414) Net investment income (Class C)....................................................... (1,813,236) (3,676,409) Net investment income (Class D)....................................................... (259,343) (636,830) ------------ ------------ Total distributions to shareholders..................................................... (2,465,168) (5,563,653) ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 3) 59,463,699 3,107,689 ------------ ------------ Total increase (decrease) in net assets................................................. 61,045,547 10,614,452 Net Assets: Beginning of period..................................................................... 143,659,496 133,045,044 ------------ ------------ End of period*.......................................................................... $204,705,043 $143,659,496 ============ ============ *Includes accumulated undistributed net investment income (loss)........................ $ (44,479) $ (32,849) ============ ============
See Notes to Financial Statements 4 SunAmerica Senior Floating Rate Fund, Inc. STATEMENT OF CASH FLOWS -- For the six months ended June 30, 2004 -- (unaudited) INCREASE (DECREASE) IN CASH Cash flows from operating activities: Net increase in net assets from operations.................................................................. $ 4,047,016 Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities Purchase of loans......................................................................................... (123,376,027) Proceed from loans sold................................................................................... 23,738,419 Loan principal paydowns................................................................................... 45,919,194 Purchases -- funding fees................................................................................. 76,073 Purchase of short-term securities, net.................................................................... (10,743,193) Accretion of facility fee income.......................................................................... (200,166) Increase in dividends and interest receivable............................................................. (256,358) Increase in receivables for securities sold............................................................... (1,767,131) Decrease in amount due from investment advisor............................................................ 55,555 Increase in amount due from distributor................................................................... (32,126) Increase in other assets.................................................................................. (44,731) Increase in payable for securities purchased.............................................................. 6,028,425 Increase in payable to the adviser........................................................................ 33,223 Decrease in other liabilities............................................................................. (90,388) Unrealized appreciation on securities..................................................................... (3,083,235) Net realized loss from investments........................................................................ 1,489,757 ------------- Net cash used by operating activities....................................................................... $ (58,205,693) ------------- Cash flows from financing activities: Proceeds from shares sold................................................................................... 75,141,826 Payment on shares redeemed.................................................................................. (17,175,747) Cash dividends paid (not including reinvested dividends of $1,608,289)...................................... (803,043) ------------- Net cash provided for financing activities.................................................................. $ 57,163,036 ------------- Net decrease in cash........................................................................................ (1,042,657) Cash balance at beginning of period......................................................................... 1,666,358 ------------- Cash balance at end of period............................................................................... $ 623,701 =============
See Notes to Financial Statements 5 SunAmerica Senior Floating Rate Fund, Inc. FINANCIAL HIGHLIGHTS
Class A ----------- For the period 4/28/04* through 06/30/04 (unaudited) ----------- Net Asset Value, Beginning of Period........................................... $ 9.42 Investment Operations: Net investment income (loss)@.................................................. 0.05 Net realized and unrealized gain (loss) on investments......................... (0.00) ------ Total from investment operations............................................. 0.05 ------ Distributions: Dividends from net investment income........................................... (0.05) ------ Net Asset Value, End of Period................................................. $ 9.42 ------ Total Return(1)................................................................ 0.55% Ratios/Supplemental Data Net assets, end of period ($000's)............................................. $ 166 Ratio of net expenses to average net assets.................................... 1.45%# Ratio of net investment income to average net assets........................... 3.22%# Portfolio turnover rate........................................................ 16% Expense ratio before waiver of fees and reimbursement of expenses.............. 9.69%# Net investment income ratio before waiver of fees and reimbursement of expenses (5.02)%#
- -------- * Inception date of class @ Calculated based upon average shares outstanding. # Annualized (1)Total return is not annualized and does not reflect sales load but does include expense reimbursements. See Notes to Financial Statements 6 SunAmerica Senior Floating Rate Fund, Inc. FINANCIAL HIGHLIGHTS -- (continued)
Class B ---------------------------------------------------------- Six Months ended Year Year Year Year Year 06/30/04 ended ended ended ended ended (unaudited) 12/31/03 12/31/02 12/31/01 12/31/00* 12/31/99* ----------- -------- -------- -------- --------- --------- Net Asset Value, Beginning of Period......... $ 9.33 $ 8.78 $ 9.03 $ 9.64 $ 9.98 $ 9.98 Investment Operations: Net investment income (loss)................. 0.14@ 0.40@ 0.40@ 0.58@ 0.75 0.69 Net realized and unrealized gain (loss) on investments................................. 0.09 0.54 (0.26) (0.60) (0.33) -- ------- ------- ------- ------- ------- ------- Total from investment operations............ 0.23 0.94 0.14 (0.02) 0.42 0.69 ------- ------- ------- ------- ------- ------- Distributions: Dividends from net investment income......... (0.14) (0.39) (0.39) (0.59) (0.76) (0.69) ------- ------- ------- ------- ------- ------- Net Asset Value, End of Period............... $ 9.42 $ 9.33 $ 8.78 $ 9.03 $ 9.64 $ 9.98 ------- ------- ------- ------- ------- ------- Total Return(1).............................. 2.43% 10.95% 1.54% (0.41)% 4.61% 7.13% Ratios/Supplemental Data Net assets, end of period ($000's)........... $27,492 $26,565 $31,906 $42,335 $50,966 $37,439 Ratio of net expenses to average net assets.. 1.75%# 1.54% 1.45% 1.45% 1.42% 0.70% Ratio of net investment income to average net assets.................................. 2.89%# 4.35% 4.42% 6.23% 7.85% 6.87% Portfolio turnover rate...................... 16% 75% 112% 69% 41% 30% Expense ratio before waiver of fees and reimbursment of expenses.................... 2.37%# 2.57% 2.51% 2.47% 2.31% 2.29% Net investment income ratio before waiver of fees and reimbursement of expenses.......... 2.27%# 3.33% 3.36% 5.21% 6.96% 5.28%
- -------- @ Calculated based upon average shares outstanding. # Annualized * The financial statements of the Fund for the periods prior to January 1, 2001 were audited by other independent auditors whose report dated February 23, 2001 expressed an unqualified opinion on the statements. (1)Total return is not annualized and does not reflect sales load but does include expense reimbursements. See Notes to Financial Statements 7 SunAmerica Senior Floating Rate Fund, Inc. FINANCIAL HIGHLIGHTS -- (continued)
Class C ------------------------------------------------------------ Six Months ended Year Year Year Year Year 06/30/04 ended ended ended ended ended (unaudited) 12/31/03 12/31/02 12/31/01 12/31/00* 12/31/99* ----------- -------- -------- -------- --------- --------- Net Asset Value, Beginning of Period................... $ 9.33 $ 8.78 $ 9.03 $ 9.64 $ 9.98 $ 9.98 Investment Operations: Net investment income (loss)........................... 0.13@ 0.38@ 0.40@ 0.57@ 0.76 0.69 Net realized and unrealized gain (loss) on investments. 0.10 0.56 (0.27) (0.60) (0.33) -- -------- -------- ------- -------- -------- -------- Total from investment operations...................... 0.23 0.94 0.13 (0.03) 0.43 0.69 -------- -------- ------- -------- -------- -------- Distributions: Dividends from net investment income................... (0.14) (0.39) (0.38) (0.58) (0.77) (0.69) -------- -------- ------- -------- -------- -------- Net Asset Value, End of Period......................... $ 9.42 $ 9.33 $ 8.78 $ 9.03 $ 9.64 $ 9.98 -------- -------- ------- -------- -------- -------- Total Return(1)........................................ 2.43% 10.92% 1.47% (0.45)% 4.60% 7.12% Ratios/Supplemental Data Net assets, end of period ($000's)..................... $158,323 $103,726 $86,101 $140,664 $227,662 $173,322 Ratio of net expenses to average net assets............ 1.75%# 1.59% 1.50% 1.50% 1.43% 0.79% Ratio of net investment income to average net assets... 2.88%# 4.22% 4.33% 6.28% 7.85% 6.82% Portfolio turnover rate................................ 16% 75% 112% 69% 41% 30% Expense ratio before waiver of fees and reimbursement of expenses........................................... 2.33%# 2.51% 2.48% 2.52% 2.32% 2.25% Net investment income ratio before waiver of fees and reimbursement of expenses............................. 2.30%# 3.31% 3.36% 5.26% 6.96% 5.36%
- -------- @ Calculated based upon average shares outstanding. # Annualized * The financial statements of the Fund for the periods prior to January 1, 2001 were audited by other independent auditors whose report dated February 23, 2001 expressed an unqualified opinion on the statements. (1)Total return is not annualized and does not reflect sales load but does include expense reimbursements. See Notes to Financial Statements 8 SunAmerica Senior Floating Rate Fund, Inc. FINANCIAL HIGHLIGHTS -- (continued)
Class D ------------------------------------- For the Six Months period ended Year Year 5/02/01* 06/30/04 ended ended through (unaudited) 12/31/03 12/31/02 12/31/01 ----------- -------- -------- -------- Net Asset Value, Beginning of Period................................................. $ 9.33 $ 8.78 $ 9.03 $ 9.46 Investment Operations: Net investment income (loss)@........................................................ 0.15 0.43 0.43 0.35 Net realized and unrealized gain (loss) on investments............................... 0.10 0.54 (0.27) (0.42) ------- ------- ------- ------- Total from investment operations.................................................... 0.25 0.97 0.16 (0.07) ------- ------- ------- ------- Distributions: Dividends from net investment income................................................. (0.16) (0.42) (0.41) (0.36) ------- ------- ------- ------- Net Asset Value, End of Period....................................................... $ 9.42 $ 9.33 $ 8.78 $ 9.03 ------- ------- ------- ------- Total Return(1)...................................................................... 2.68% 11.28% 1.72% (0.79)% Ratios/Supplemental Data Net assets, end of period ($000's)................................................... $18,724 $13,369 $15,037 $26,372 Ratio of net expenses to average net assets.......................................... 1.25%# 1.25% 1.25% 1.25%# Ratio of net investment income to average net assets................................. 3.38%# 4.63% 4.58% 5.66%# Portfolio turnover rate.............................................................. 16% 75% 112% 69% Expense ratio before waiver of fees and reimbursement of expenses.................... 1.60%# 1.86% 1.77% 2.27%# Net investment income ratio before waiver of fees and reimbursement of expenses...... 3.03%# 4.02% 4.06% 4.64%#
- -------- * Inception date of class @ Calculated based upon average shares outstanding. # Annualized (1)Total return is not annualized and does not reflect sales load but does include expense reimbursements. See Notes to Financial Statements 9 SunAmerica Senior Floating Rate Fund, Inc. PORTFOLIO OF INVESTMENTS -- June 30, 2004 -- (unaudited)
Ratings/(1)/ ------------ Interest Maturity Principal Value Industry Description Type Moody's S&P Rate Date/(2)/ Amount (Note 2) - ----------------------------------------------------------------------------------------------------------------- LOANS/(3)/ -- 87.03% Automobile -- 4.94% Collins & Aikman Products Co.......... BTL-B B2 B+ 4.75% 12/31/05 $ 712,700 $ 720,807 Intermet Corp......................... BTL-B B2 B+ 4.25 3/31/09 995,000 996,244 Metaldyne Co., LLC.................... BTL-D B3 BB- 4.25 12/31/09 1,997,491 1,999,780 Plastech Engineered Products, Inc..... 2nd Lien NR NR 4.50 3/31/11 1,000,000 1,014,375 Polypore, Inc......................... BTL B2 B+ 2.50 11/12/11 1,200,000 1,221,750 Tenneco Automotive, Inc............... BTL-B B2 B+ 3.25 12/12/10 686,207 701,218 Tenneco Automotive, Inc............... Tranche B1 B2 B+ 3.25 12/17/10 310,345 317,133 TRW Automotive Acquisitions Corp...... BTL-A1 B1 BB+ 1.75 2/28/08 1,200,000 1,211,125 TRW Automotive Acquisitions Corp...... BTL-D1 B1 BB+ 2.25 2/28/11 1,040,668 1,060,397 United Components, Inc................ BTL-C NR BB- 2.75 6/30/10 856,667 868,981 ----------- 10,111,810 ----------- Beverage, Food and Tobacco -- 5.56% Atkins Nutritionals, Inc.............. 1st Lien B3 B+ 3.25 10/29/09 965,000 968,619 Atkins Nutritionals, Inc.............. 2nd Lien NR B+ 5.75 10/29/09 1,000,000 1,006,250 Commonwealth Brands, Inc.............. BTL B2 B+ 4.00 8/28/07 881,500 896,926 Dean Foods Co......................... BTL-C Ba2 BB+ 1.75 7/15/08 498,750 503,582 Doane Pet Care Co..................... BTL-B B2 B- 5.00 12/31/05 283,756 286,890 Doane Pet Care Co..................... BTL-C B2 B- 5.00 12/31/06 55,127 55,679 Dole Food Co., Inc.................... BTL-D B2 BB- 2.25 9/28/08 216,991 220,426 Dole Food Co., Inc.................... Incremental BTL NR BB- 12.20 9/28/08 500,000 507,656 Luigino's, Inc........................ BTL-B B2 B+ 3.00 4/02/11 997,500 1,014,333 Merisant Co........................... BTL-B NR B+ 2.75 1/11/10 835,784 841,321 NBTY, Inc............................. BTL-C Ba3 BB 2.00 12/18/09 1,039,484 1,049,229 Nellson Nutraceutical, Inc............ BTL B2 B+ 3.00 10/04/09 1,912,963 1,912,963 Pinnacle Foods Holdings............... BTL NR BB- 2.75 10/25/10 458,484 464,215 Pinnacle Foods Holdings............... Delay Draw NR BB- 2.75 10/25/10 1,623,797 1,644,095 ----------- 11,372,184 ----------- Broadcasting and Entertainment -- 7.63% Cebridge Connections, Inc.@........... 1st Lien NR NR 3.25 2/23/09 698,250 706,978 Cebridge Connections, Inc.@........... 2nd Lien NR NR 6.00 2/23/10 1,296,750 1,293,508 Century Cable Holdings, LLC@(4)....... Discretionary BTL NR NR 4.71 12/31/09 2,500,000 2,415,000 Century -- TCI California, LP@(4)..... Revolver NR NR 2.00 12/31/07 1,000,000 988,304 Charter Communications Operating, LLC. Tranche B B3 CCC+ 3.25 4/27/11 2,500,000 2,492,613 DIRECTV Holdings, LLC................. BTL-B2 B1 BB- 2.25 3/06/10 2,064,796 2,095,768 Insight Midwest Holdings, LLC......... BTL-B B1 BB 2.75 12/31/09 995,000 1,010,132 RCN Corp.(7).......................... BTL-B NR C 4.00 6/30/07 2,621,784 2,608,675 Sinclair Broadcast Group, Inc......... BTL-C Ba2 BB 1.75 12/31/09 750,000 759,375 Sinclair Broadcast Group, Inc......... BTL-A Ba2 BB 1.75 6/30/09 1,250,000 1,257,812 ----------- 15,628,165 ----------- Buildings & Real Estate -- 3.12% Associated Materials, Inc............. BTL NR B+ 2.50 8/29/10 736,842 746,053 Builders Firstsource, Inc.@........... Tranche A NR B+ 3.25 2/25/10 1,496,250 1,511,212 Crescent Real Estate Funding XII, LP.. BTL NR BB 2.25 1/12/06 598,670 604,282 PGT Industries, Inc................... BTL-A B2 B 3.00 1/29/10 997,500 1,009,969 Ply Gem Industries, Inc............... BTL B2 B+ 2.50 2/27/11 1,271,813 1,275,390 Ply Gem Industries, Inc............... CND TL B2 B+ 2.50 2/27/11 224,437 225,630 St. Mary's Cement, Inc................ BTL-B NR BB- 2.50 12/04/09 995,000 1,011,169 ----------- 6,383,705 ----------- Cargo Transport -- 1.99% Moran Transportation Co.@............. BTL NR BB- 2.50 8/08/09 990,000 999,900 Pacer International, Inc.............. BTL B2 BB- 2.75 6/10/10 1,435,294 1,455,926 United States Shipping, LLC........... BTL Ba3 BB 2.25 4/13/10 864,249 872,351 Yellow Roadway Corp................... BTL B1 BBB- 1.75 12/11/08 194,805 196,571 Yellow Roadway Corp................... LOC B1 BBB- 1.82 12/11/08 545,454 550,398 ----------- 4,075,146 -----------
10 SunAmerica Senior Floating Rate Fund, Inc. PORTFOLIO OF INVESTMENTS -- June 30, 2004 -- (unaudited) (continued)
Ratings/(1)/ ----------- Interest Maturity Principal Value Industry Description Type Moody's S&P Rate Date/(2)/ Amount (Note 2) - ------------------------------------------------------------------------------------------------------------------- Chemicals, Plastics and Rubber -- 8.18% Brenntag AG.................................. BTL-B2 NR NR 2.75% 3/02/12 $1,500,000 $ 1,522,032 Celanese Americas Corp....................... BTL-C B1 B+ 4.25 4/06/11 1,000,000 1,033,333 Celanese Americas Corp....................... BTL-1st Lien B1 B+ 2.50 4/06/11 689,815 701,168 Cognis Deutschland Eins GMBH................. 2nd Lien B3 BB- 4.75 11/15/13 1,500,000 1,500,000 Hercules, Inc................................ BTL-B Ba2 BB 2.25 10/08/10 897,750 912,152 Huntsman Corp.@.............................. BTL-A B3 B 4.00 3/31/07 1,112,452 1,112,452 Huntsman Corp.@.............................. BTL-B B3 B 9.00 3/31/07 176,410 176,410 Huntsman International, LLC.................. BTL-B B3 B- 4.00 6/30/07 1,414,794 1,417,890 Huntsman International, LLC.................. BTL-C B3 B- 4.25 6/30/08 1,414,794 1,417,890 Kosa B.V..................................... BTL-B1 B1 BB 3.00 4/29/11 1,388,235 1,411,662 Kosa B.V..................................... BTL-B2 B1 BB 3.00 4/29/11 611,765 622,088 Nalco Co..................................... BTL-B B2 B+ 2.50 11/04/10 913,209 927,620 Rockwood Specialities Group, Inc............. BTL-C NR B+ 2.75 7/23/10 1,492,500 1,499,030 Wellman, Inc................................. 2nd Lien B3 B+ 6.75 2/10/10 1,000,000 988,125 Westlake Chemical Corp....................... BTL-B NR BB- 3.75 7/31/10 1,485,000 1,505,419 ----------- 16,747,271 ----------- Containers, Packaging and Glass -- 7.41% Appleton Papers, Inc......................... BTL NR BB 2.25 6/11/10 1,125,000 1,139,766 Berry Plastics Corp.......................... BTL-C NR B+ 2.50 7/22/10 944,185 958,938 Berry Plastics Corp.......................... Delay Draw NR B+ 2.50 7/22/10 500,000 505,000 Boise Cascade Corp........................... Revolver NR BB 1.33 6/30/05 1,250,000 1,246,875 Constar International, Inc................... BTL-B B3 BB- 4.50 11/20/09 817,096 831,054 Graham Packaging Co.......................... Tranche 1 B3 B 2.75 2/14/10 990,356 1,005,830 Graphic Packaging International, Inc......... BTL-B NR B+ 2.75 8/08/10 1,485,000 1,510,987 Owens-Illinois Group, Inc.................... BTL-A B3 BB- 2.75 4/01/07 1,000,000 1,008,229 Owens-Illinois Group, Inc.................... BTL-B1 B3 BB- 3.00 4/01/08 2,500,000 2,530,802 Precise Technology, Inc...................... 1st Lien B2 B+ 3.00 3/25/11 748,125 751,165 Precise Technology, Inc...................... 2nd Lien B3 B+ 6.00 3/25/11 500,000 499,688 Ranpak Corp.................................. BTL-B NR NR 8.00 5/26/11 790,000 790,987 Ranpak Corp.................................. 1st Lien B3 B- 3.75 5/26/10 1,000,000 995,000 Waddington North America, Inc................ BTL-B B2 B 3.00 4/07/11 1,386,000 1,387,733 ----------- 15,162,054 ----------- Diversified/Conglomerate Manufacturing -- 3.66% Colfax Corp.@................................ BTL-B B1 BB- 3.00 5/30/09 709,167 713,156 Colfax Corp.@................................ BTL-C B2 BB- 6.25 5/30/10 166,667 170,833 Enersys Capital, Inc......................... 1st Lien B2 BB- 2.50 3/17/11 598,500 608,506 Enersys Capital, Inc......................... 2nd Lien B3 BB- 5.00 3/17/12 900,000 914,625 Invensys International Holdings, Ltd......... BTL-B1 B3 B+ 3.50 9/05/09 3,287,671 3,328,767 Invensys International Holdings, Ltd......... 2nd Lien B3 B+ 4.75 12/05/09 1,712,329 1,759,418 ----------- 7,495,305 ----------- Diversified/Conglomerate Service -- 1.64% Bridge Information Systems, Inc.+@(5)........ BTL-B NR NR 4.00 5/29/05 521,115 160,243 InfoUSA, Inc................................. BTL B1 BB 2.50 3/25/09 958,333 970,312 Syniverse Technologies, Inc.@................ BTL-B B1 B+ 3.50 12/31/06 2,199,520 2,222,203 ----------- 3,352,758 ----------- Ecological -- 0.99% Allied Waste North America, Inc.............. BTL-B B2 BB 2.75 1/15/10 846,429 863,195 Allied Waste North America, Inc.............. BTL-D NR BB 2.50 1/15/10 1,000,000 1,019,250 Allied Waste North America, Inc.............. Tranche A B2 BB 2.75 1/15/10 142,857 145,523 ----------- 2,027,968 ----------- Electronics -- 2.13% Fairchild Semiconductor Corp................. BTL-B NR B+ 2.50 6/19/08 1,485,000 1,509,131 Semiconductors Components Industries, LLC.... BTL-F Caa1 B 2.75 8/04/07 1,006,204 1,016,057 UGS Corp..................................... BTL-B B2 B+ 2.75 5/27/11 1,800,000 1,835,438 ----------- 4,360,626 -----------
11 SunAmerica Senior Floating Rate Fund, Inc. PORTFOLIO OF INVESTMENTS -- June 30, 2004 -- (unaudited) (continued)
Ratings/(1)/ ------------ Interest Maturity Principal Value Industry Description Type Moody's S&P Rate Date/(2)/ Amount (Note 2) - ------------------------------------------------------------------------------------------------------------------------------- Farming and Agriculture -- 0.46% AGCO Corp.................................................. BTL Ba3 BB+ 2.25% 1/31/06 $ 923,167 $ 940,765 ----------- Healthcare, Education and Childcare -- 7.89% Conmed Corp................................................ BTL-C B1 BB- 2.25 12/15/09 1,717,776 1,741,395 Connecticare Capital, LLC.................................. BTL B2 B+ 3.75 10/30/09 912,500 920,484 Dade Behring, Inc.......................................... BTL-B B1 BB 2.25 10/03/08 524,290 531,171 Da Vita, Inc............................................... BTL-B NR BB 2.00 3/31/09 1,978,451 2,006,583 Hanger Orthopedic Group, Inc............................... BTL-B B2 B+ 2.75 6/30/09 992,500 1,000,358 Insight Health Services Acquisition Corp................... BTL-B NR B+ 3.50 10/17/08 972,490 973,706 Magellan Health Services, Inc.............................. BTL B3 B+ 3.50 8/15/08 513,889 520,313 Magellan Health Services, Inc.............................. LOC B3 B+ 3.62 8/15/08 444,444 450,000 Medco Health Solutions, Inc................................ BTL-A NR BBB 1.25 3/26/09 975,000 980,891 Multiplan, Inc............................................. BTL B3 B+ 2.75 3/04/09 1,496,250 1,511,213 Oxford Health Plans, Inc................................... BTL NR BB+ 2.00 4/30/09 495,000 496,856 Pacificare Health Systems, Inc............................. BTL B1 BB+ 2.50 6/03/08 990,000 1,007,325 Quintiles Transnational Corp............................... BTL-B B2 BB- 4.25 9/25/09 992,500 1,006,147 Team Health, Inc........................................... BTL-B B2 B+ 3.25 10/31/08 1,995,000 1,999,987 Youth and Family Centered Services, Inc.@.................. BTL-B B3 B+ 4.00 5/28/11 1,000,000 1,000,000 ----------- 16,146,429 ----------- Home and Office Furnishings, Housewares and Durables -- 3.58% Buhrmann U.S., Inc......................................... Tranche B1 B1 BB- 2.75 12/31/10 1,741,250 1,757,212 Hillman Group, Inc.@....................................... BTL-B NR B 3.25 3/31/11 831,250 840,592 Holmes Group, Inc.......................................... 1st Lien B2 B 3.25 11/08/10 1,000,000 1,005,000 Holmes Group, Inc.......................................... 2nd Lien NR NR 7.50 5/06/11 500,000 505,000 Juno Lighting, Inc......................................... 2nd Lien NR NR 5.50 5/21/11 1,000,000 1,012,500 Maax Corp.................................................. BTL-B B2 B+ 2.75 6/04/11 1,200,000 1,217,250 Simmons Co................................................. BTL-B B3 B+ 2.75 12/19/11 979,259 993,132 ----------- 7,330,686 ----------- Hotels, Motels, Inns, and Gaming -- 1.75% Marina District Finance Co., Inc........................... BTL-B B3 B+ 4.00 12/13/07 1,424,014 1,438,432 Penn National Gaming....................................... BTL-D B1 BB- 2.50 9/01/07 520,075 527,678 Wyndham International, Inc................................. BTL-I B2 B- 4.75 6/30/06 1,628,799 1,618,038 ----------- 3,584,148 ----------- Leisure, Amusement, Entertainment -- 4.77% Affinity Group, Inc........................................ BTL-B1 NR B+ 4.00 6/17/09 346,684 350,295 Affinity Group, Inc........................................ BTL-B2 NR B+ 4.00 6/17/09 866,709 875,738 Metro-Goldwyn-Mayer Studios, Inc........................... BTL-B B1 B 2.50 4/30/11 2,000,000 2,010,000 Regal Cinemas, Inc......................................... BTL B1 BB- 2.75 11/10/10 1,450,795 1,469,837 Vivendi Universal Entertainment, LLP....................... BTL-B NR BBB- 2.75 6/30/08 1,500,000 1,510,078 Warner Music Group......................................... BTL-B B2 B+ 2.75 2/28/11 3,491,250 3,547,983 ----------- 9,763,931 ----------- Mining, Steel, Iron and Nonprecious Metals -- 0.09% CII Carbon, LLC@........................................... BTL NR NR 2.75 6/25/08 201,974 194,400 ----------- Oil and Gas -- 2.59% ATP Oil & Gas Corp......................................... 1st Lien NR NR 8.50 3/29/09 997,500 1,002,487 Basic Energy Services, LP.................................. BTL-B B2 B 3.50 10/03/09 1,744,643 1,762,089 Tesoro Petroleum Corp...................................... BTL B1 BB- 5.50 4/15/08 990,000 1,022,175 Williams Production Co.@................................... BTL-C NR B+ 2.50 5/30/08 1,485,038 1,504,993 ----------- 5,291,744 ----------- Personal and Nondurable Consumer Products -- 2.54% American Safety Razor Co................................... Tranche B NR NR 3.25 4/29/11 700,000 708,313 American Safety Razor Co................................... Tranche C NR NR 7.00 10/29/11 300,000 301,500 Church & Dwight Co., Inc................................... Tranche B Ba3 BB 1.75 5/30/11 1,250,000 1,262,305 Sealy Mattress Co.......................................... BTL-B B3 B+ 2.75 4/06/12 1,875,000 1,907,227 United Industries Corp..................................... BTL B2 B+ 2.50 4/30/11 997,500 1,011,216 ----------- 5,190,561 -----------
12 SunAmerica Senior Floating Rate Fund, Inc. PORTFOLIO OF INVESTMENTS -- June 30, 2004 -- (unaudited) (continued)
Ratings/(1)/ ------------ Interest Maturity Principal Value Industry Description Type Moody's S&P Rate Date/(2)/ Amount (Note 2) - ------------------------------------------------------------------------------------------------------------- Personal, Goods and Misc. Services -- 0.84% Alderwoods Group, Inc..................... BTL-B NR B+ 2.75% 9/17/08 $ 836,364 $ 849,955 Domino's, Inc............................. BTL NR B+ 2.25 6/25/10 857,398 874,680 ------------ 1,724,635 ------------ Printing and Publishing -- 1.90% Dex Media West, LLC....................... BTL-B B3 BB- 2.25 3/09/10 1,340,277 1,367,642 Haights Crossing Operating Co.@........... BTL NR CCC+ 4.50 8/20/08 1,486,263 1,523,419 R.H. Donnelly, Inc........................ BTL-B B1 BB 2.25 6/30/10 985,259 1,000,380 ------------ 3,891,441 ------------ Retail Stores -- 2.70% Alimentation Couche-Tard, Inc............. BTL NR BB- 2.25 12/17/10 610,714 617,330 American Achievement Corp................. BTL-B B2 B+ 2.50 3/25/11 997,500 1,011,528 Educate Operating Co., LLC................ BTL NR NR 3.00 3/30/11 1,995,000 2,018,691 General Nutrition Centers, Inc............ BTL-B B2 B+ 3.00 12/05/09 995,000 1,007,811 Home Interiors & Gifts, Inc.@............. BTL B3 B 4.25 3/31/11 892,969 869,528 Quality Stores (Central Tractor)+@#(4)(5). BTL-B NR NR 3.75 4/30/06 868,632 -- ------------ 5,524,888 ------------ Telecommunications -- 4.73% Centennial Cellular Operating Co., LLC.... BTL-B NR B- 2.75 2/09/11 1,496,250 1,506,404 Crown Castle Operating Co................. BTL-B NR B- 3.50 9/30/10 992,500 994,981 Dobson Cellular Systems, Inc.............. BTL B2 B- 3.50 3/31/10 990,013 992,179 Nextel Finance Co......................... BTL-E Ba3 BB+ 2.25 12/15/10 2,708,887 2,732,105 Ntelos, Inc............................... BTL-B NR B 4.00 7/25/07 1,416,513 1,402,347 Qwest Corp................................ BTL-A NR BB- 4.75 6/30/07 1,000,000 1,040,750 Western Wireless Corp..................... BTL-B B3 B- 3.00 5/28/11 1,000,000 1,013,750 ------------ 9,682,516 ------------ Textiles and Leather -- 0.91% Globe Manufacturing Corp.+@#(5)........... BTL-B NR NR 2.75 7/15/06 837,014 -- Springs Industries, Inc................... BTL-A NR BBB 3.25 3/05/07 1,862,069 1,871,962 ------------ 1,871,962 ------------ Utilities -- 5.03% AES Corp.................................. BTL B2 B+ 4.00 4/30/08 428,571 435,134 Allegheny Energy Supply Co................ BTL-B B3 B 3.00 3/08/11 897,750 912,900 Allegheny Energy Supply Co................ BTL-C B3 B 4.25 6/08/11 598,500 610,096 Astoria Energy, LLC@...................... 1st Lien B1 B 5.25 4/16/12 1,000,000 1,011,042 Calpine Corp.@............................ 2nd Lien NR B 5.75 7/16/07 2,481,250 2,223,130 La Grange Acquisition, LP................. BTL Ba3 B 3.00 1/18/08 1,050,000 1,065,750 NRG Energy, Inc........................... BTL-B NR B+ 4.00 6/23/10 922,953 953,175 NRG Energy, Inc........................... CLD NR B+ 4.00 6/23/10 520,833 537,891 Reliant Resources, Inc.................... BTL B2 B 4.00 3/15/07 2,542,001 2,557,096 ------------ 10,306,214 ------------ Total Loans (Cost $178,086,829)........................................ $178,161,312 ------------
13 SunAmerica Senior Floating Rate Fund, Inc. PORTFOLIO OF INVESTMENTS -- June 30, 2004 -- (unaudited) (continued)
Value Industry Description Shares (Note 2) --------------------------------------------------------------------------------------- COMMON STOCK -- 0.03% Oil and Gas -- 0.03% Shaw Group, Inc.+....................................... 6,276 $ 63,576 ------------ Telecommunications -- 0.00% Global Crossing Holding, Ltd.+.......................... 175 2,730 ------------ Total Common Stock (Cost $115,014)...................... 66,306 ------------ Total Loans and Investment Securities (Cost $178,201,843) 178,227,618 ------------ SHORT-TERM INVESTMENTS -- 14.43% Registered Investment Companies -- 14.43% SSgA Money Market Fund (Cost $29,545,411)............... 29,545,411 29,545,411 ------------ TOTAL INVESTMENTS -- 101.49% (Cost $207,747,254) (6)................................. 207,773,029 LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.49)%............ (3,067,986) ------------ NET ASSETS -- 100.00%....................................... $204,705,043 ============
- -------- + Non-income producing securities @ Illiquid security # Fair valued BTL Bank Term Loan CDN TL Canadian Term Loan CLD Credit Linked Deposit LOC Line of Credit NR Security is not rated. (1)Bank loans rated below Baa by Moody's Investor Service, Inc. or BBB by Standard & Poor's Group are considered below investment grade. Ratings are unaudited. Ratings provided as of June 30, 2004. (2)Loans in the Fund's portfolio are generally subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a Borrower to prepay, prepayments may occur. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. The Fund estimates that the maturity of the Loans held in its portfolio will be approximately 62 months. (3)The Fund invests in Senior Loans which generally pay interest at rates which are periodically re-determined by reference to a base lending rate plus a premium. These base lending rates are generally either the lending rate offered by one or more major European banks, such as the London Inter- Bank Offer Rate ("LIBOR") or the prime rate offered by one or more major United States banks, or the certificate of deposit rate. Senior Loans are generally considered to be restrictive in that the Fund is ordinarily contractually obligated to receive approval from the Agent Bank and/or borrower prior to the disposition of a Senior Loan. (4)Company has filed Chapter 11 bankruptcy. (5)Loan is in default of interest payment. (6)See Note 6 for cost of investments on a tax basis. (7)Company has filed Chapter 11 bankruptcy subsequent to June 30, 2004. See Notes to Financial Statements 14 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- June 30, 2004 -- (unaudited) Note 1. Organization of the Fund The SunAmerica Senior Floating Rate Fund, Inc. (the "Fund"), is a non-diversified closed-end, investment management company. The Fund is organized as a Maryland corporation and is registered under the Investment Company Act of 1940, as amended. The Fund is managed by AIG SunAmerica Asset Management Corp. (the "Adviser" or "SAAMCo"), an indirect wholly-owned subsidiary of American International Group, Inc. ("AIG"). The Fund's investment objective is to provide as high a level of current income as is consistent with the preservation of capital by investing primarily in senior secured floating rate loans. The Fund may offer four classes of shares. Class B shares are sold to the public at net asset value and are subject to an Early Withdrawal Charge which declines from 3% in the first year after purchase to zero after the fourth year. Class C shares are sold to the public at net asset value and are subject to an Early Withdrawal Charge of 1% in the first year after purchase. Class D shares are sold and redeemed at net asset value, and were issued to shareholders of the CypressTree Senior Floating Rate Fund upon its merger into the Fund on May 11, 2001. Class D shares are sold only to investors participating in a fee-based investment advisory program (wrap program) or agency commission program, or to current Class D shareholders. Class A shares are not currently offered, and are available only upon the conversion of Class B and C shares after being held by the shareholders for eight and ten years, respectively. The share classes differ in their respective distribution and service fees. All classes have equal rights to assets and voting privileges. Indemnifications: Under the Fund's organizational documents, its officers and directors are indemnified against certain liability arising out of the performance of their duties to the Fund. In addition, in the normal course of business the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund's maximum exposure under these arrangements are unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund expects the risk of loss to be remote. Note 2. Significant Accounting Policies The preparation of financial statements in accordance with U.S. generally accepted accounting principals (GAAP) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates. The following is a summary of the significant accounting policies followed by the Fund in the preparation of their financial statements: Security Valuation: The Fund's investments in loan interests ("Loans") are valued in accordance with guidelines established by the Board of Directors. Under the Fund's current guidelines, Loans for which an active secondary market exists to a reliable degree in the subadviser's opinion will be valued at the mean of the last available bid and asked prices in the market for such Loans, as provided by a Board-approved loan pricing service. Loans for which an active secondary market does not exist to a reliable degree in the subadviser's opinion will be valued at fair value, which is intended to approximate market value. In valuing a Loan at fair value, the following factors will be considered, (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the Loan, (c) recent prices in the market for similar Loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, and period until next interest rate reset and maturity. Other portfolio securities may be valued on the basis of prices furnished by one or more pricing services that determine prices for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. In certain circumstances, other portfolio securities are valued at the last sale price on the exchange that is the primary market for such securities, or the last quoted bid price for those securities for which the over-the-counter market is the primary market or for listed securities in which there were no sales during the day. Securities listed on the NASDAQ exchange will be valued using the NASDAQ Official Closing Price ("NOCP"). Generally, the NOCP will be the last sale price unless the reported trade for the security is outside the range of the bid/ask price. In such cases, the NOCP will be normalized to the nearer of the bid or ask price. Securities for which market quotations are not readily available or if a development/event occurs that may significantly impact the value of a security, then these securities may be fair 15 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- June 30, 2004 -- (unaudited) (continued) valued as determined pursuant to procedures adopted in good faith by the Board of Directors (the "Directors"). Short-term investments which mature in less than 60 days are valued at amortized cost, if their original maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if their original term to maturity exceeded 60 days. The senior Loans in which the Fund primarily invests are generally not listed on any exchange and the secondary market for those senior Loans is comparatively illiquid relative to markets for other fixed income securities. Consequently, obtaining valuations for those Loans may be more difficult than obtaining valuations for actively traded securities. Thus, the value upon disposition on any given Loan may differ from its current valuation. Repurchase Agreements: The Fund may enter into repurchase agreements. When the Fund enters into a repurchase agreement through its custodian, it receives delivery of the underlying securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is equal to at least 102% of the resale price, and the Fund will take constructive receipt of all securities underlying the repurchase agreements until such agreements expire. If the seller defaults, the Fund would suffer a loss to the extent that proceeds from the sale of underlying securities were less than the repurchase price. At June 30, 2004, the Fund did not enter into any repurchase agreements. Securities Transactions, Investment Income, Expenses, Dividends and Distributions to Shareholders: Security transactions are recorded on a trade date basis. Realized gains and losses on sales of investments are calculated on the identified cost basis. Interest income is recorded on the accrual basis, dividend income is recorded on the ex-dividend date. For financial statement purposes, the Fund amortizes all premiums and accretes all discounts. Facility fees received, which were $200,166 for the period ended June 30, 2004, are amortized as income over the stated life of the Loans. Other income, including amendment fees, commitment fees, letter of credit fees, etc., which were $202,890 for the period ended June 30, 2004, are recorded as income when received or contractually due to the Fund. Net investment income, other than class-specific expenses, and realized and unrealized gains and losses, are allocated daily to each class of shares based upon the relative net asset value of outstanding shares of each class of shares at the beginning of the day (after adjusting for the current capital share activity of the respective class). Interest earned on cash balances held at the custodian are shown as custody credits on the statement of operations. Dividends from net investment income are accrued daily and paid monthly. Capital gain distributions, if any, are paid annually. The Fund records dividends and distributions to the shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined and presented in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These "book/tax" differences which include different treatments for interest on defaulted securities and post October losses, are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net investment income/loss, net realized gain/loss, and net assets are not affected by these reclassifications. The Fund intends to comply with the requirements of the Internal Revenue Code, as amended, applicable to regulated investment companies and distribute all of its taxable income, including any net realized gain on investments, to its shareholders. Therefore, no federal tax provision is required. Statement of Cash Flows: Information on financial transactions which have been settled through the receipt or disbursement of cash is presented in the Statement of Cash Flows. The cash amount shown in the Statement of Cash Flows is the amount included in the Fund's Statement of Assets and Liabilities and represents cash on hand at its custodian bank account, and does not include any short-term investments at June 30, 2004. 16 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- June 30, 2004 -- (unaudited) (continued) Note 3. Capital Share Transactions The Fund has 1,000,000,000 of $.01 par value shares authorized that may be issued in four different classes. Transactions in capital shares of each class were as follows:
For the period April 28, 2004- June 30, 2004 (unaudited) ------------------------- Shares Capital Class A ---------- ------------ Shares sold................. 17,642 * $ 166,191 * Reinvested distributions.... -- -- Shares redeemed............. (2) (22) ---------- ------------ Net increase (decrease).. 17,640 $ 166,169 ========== ============ For the period ended For the June 30, 2004 year ended (unaudited) December 31, 2003 ------------------------- ------------------------ Shares Capital Shares Capital Class B ---------- ------------ ---------- ------------ Shares sold................. 407,103 $ 3,824,453 302,522 $ 2,767,847 Reinvested distributions.... 27,597 259,614 85,439 772,401 Shares redeemed............. (364,833)* (3,432,408)* (1,171,973) (10,584,805) ---------- ------------ ---------- ------------ Net increase (decrease).. 69,867 $ 651,659 (784,012) $ (7,044,557) ========== ============ ========== ============ For the period ended For the June 30, 2004 year ended (unaudited) December 31, 2003 ------------------------- ------------------------ Shares Capital Shares Capital Class C ---------- ------------ ---------- ------------ Shares sold................. 6,983,917 $ 65,659,978 4,140,154 $ 38,020,342 Reinvested distributions.... 121,484 1,142,886 276,003 2,497,941 Shares redeemed............. (1,421,010) (13,367,126) (3,097,227) (27,885,351) ---------- ------------ ---------- ------------ Net increase (decrease).. 5,684,391 $ 53,435,738 1,318,930 $ 12,632,932 ========== ============ ========== ============ For the period ended For the June 30, 2004 year ended (unaudited) December 31, 2003 ------------------------- ------------------------ Shares Capital Shares Capital Class D ---------- ------------ ---------- ------------ Shares sold................. 675,301 $ 6,348,755 182,414 $ 1,684,560 Reinvested distributions.... 21,876 205,789 54,475 492,983 Shares redeemed............. (142,996) (1,344,411) (515,575) (4,658,230) ---------- ------------ ---------- ------------ Net increase (decrease).. 554,181 $ 5,210,133 (278,686) $ (2,480,687) ========== ============ ========== ============
- -------- * Includes automatic conversion of 7,022 shares of Class B shares in the amount of $66,150 to 7,022 shares of Class A shares in the amount of $66,150. 17 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- June 30, 2004 -- (unaudited) (continued) In order to provide shareholders with liquidity and the ability to receive net asset value on a disposition of shares, the Fund will make monthly offers to repurchase a percentage (usually 10%) of outstanding shares at net asset value. Shareholders are sent a Notification of Repurchase Offer seven to fourteen days before each monthly repurchase offer. During the period ended June 30, 2004, the Fund made six Repurchase Offers, and redeemed the amounts shown in the table below. In no case was a monthly Repurchase Offer oversubscribed.
Amount Tendered ------------------ Shares Capital ------- ---------- January................................................ 267,200 $2,511,843 February............................................... 371,990 3,493,081 March.................................................. 327,789 3,077,932 April.................................................. 255,588 2,410,286 May.................................................... 244,062 2,297,155 June................................................... 455,190 4,287,520
Note 4. Purchases And Sales Of Securities During the period ended June 30, 2004, the Fund's cost of purchases of Loans and proceeds from Loan sales were $123,376,027 and $23,738,419, respectively. Note 5. Investment Advisory Agreement And Other Transactions With Affiliates The Fund currently maintains an Investment Advisory Agreement with SAAMCo, who is responsible for managing the corporate and business affairs of the Fund, and selects, contracts with and compensates the subadviser to manage the Fund's assets. As compensation for its services the Adviser receives from the Fund an annual fee equal to the following percentage of average daily gross assets: 0.85% for the first $1 billion of average daily gross assets; 0.80% for average daily gross assets between $1 billion and $2 billion; and 0.75% for average daily gross assets of more than $2 billion. For purposes of computing the advisory fee, average daily gross assets are determined by deducting from total assets of the Fund all liabilities except the principal amount of any indebtedness from money borrowed, including debt securities issued by the Fund. For the period ended June 30, 2004, SAAMCo received advisory fees in the amount of $712,582. Stanfield Capital Partners, LLC ("Stanfield") acts as sub-adviser to the Fund pursuant to a Subadvisory Agreement with SAAMCo. Under the Subadvisory Agreement, Stanfield manages the investment and reinvestment of the Fund's assets. As compensation for its services as subadviser, Stanfield is entitled to receive from SAAMCo an annual fee paid monthly equal to the following percentage of average daily gross assets: 0.25% for the first $1 billion of average daily gross assets; 0.20% for average daily gross of more than $1 billion. Stanfield received $209,607 as compensation for its services. Average daily gross assets are computed as described above. The fee paid to the subadviser is not an additional charge to the Fund or its shareholders. SAAMCo also serves as the Fund's Administrator under an Administration Agreement and is responsible for managing the Fund's business affairs, subject to supervision by the Fund's Board of Directors. For its services, SAAMCo receives an annual fee equal to 0.40% of average daily gross assets of the Fund. Average daily gross assets are computed as described above. For the period ended June 30, 2004 SAAMCo received administrator fees in the amount of $335,381. The Fund has adopted Distribution Plans ("Plans") applicable to Class A, Class B and C shares to use the assets attributable to that class of shares of the Fund to finance certain activities relating to the distribution of shares to investors. The Plans are compensation plans providing for the payment to AIG SunAmerica Capital Services, Inc. ("SACS"), of a fixed percentage of 0.50% of average net assets to finance distribution expenses for Class B and Class C, and 0.25% of average net assets to finance service fees for Class A, Class B and Class C. For the period ended June 30, 2004 SACS received distribution fees and early withdrawal charges on redemptions in the amount of $570,915 and $46,508, respectively. For the period ended June 30, 2004 SACS voluntarily waived fees for the following classes: Class A $48, Class B $34,026, Class C $194,130. 18 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- June 30, 2004 -- (unaudited) (continued) Pursuant to the Investment Advisory Agreement, the Adviser voluntarily waived the advisory fee and reimbursed expenses in order to maintain an expense ratio on the Fund that did not exceed a certain voluntary rate. The rates are 1.45% for Class A, 1.75% for Class B and Class C, and 1.25% for Class D. For the period ended June 30, 2004, the Adviser waived fees and reimbursed expenses for the following classes: Class A $2,476, Class B $48,757, Class C $168,639, and Class D $26,535. Note 6. Federal Income Taxes The following details the tax basis distributions as well as the components of distributable earnings. The tax basis components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities by temporary book/tax differences primarily arising from post-October losses of $1,934,501.
Distributable Earnings Tax Distributions --------------------------------------------------------- -------------------- For the year ended December 31, 2003 ------------------------------------------------------------------------------ Long-term Ordinary Long-term Gains/ Capital Unrealized Appreciation Ordinary Capital Income Loss Carryover (Depreciation) Income Gains -------- ------------------------ ----------------------- ---------- --------- $27,221 $(24,212,647) $(3,057,460) $5,563,653 $ --
Capital Loss Carryforwards. At December 31, 2003 capital loss carryforwards available to offset future recognized gains were $24,212,647, with $9,669 expiring in 2005, $334,309 expiring in 2007, $1,179,134 expiring in 2008, $9,997,029 expiring in 2009, $7,736,363 expiring in 2010, and $4,956,143 expiring in 2011. Unrealized appreciation and depreciation in the value of investments at June 30, 2004 for federal income tax purposes were as follows: Gross unrealized appreciation............................... $ 2,813,357 Gross unrealized depreciation............................... (2,787,582) ----------- Net unrealized depreciation................................. $ 25,775 ===========
Note 7. Director Retirement Plan The Directors of the SunAmerica Senior Floating Rate Fund, Inc. have adopted the AIG SunAmerica Disinterested Trustees' and Directors' Retirement Plan ("Retirement Plan"). The Retirement Plan provides generally that if an unaffiliated Director who has at least 10 years of consecutive service as a Disinterested Director of the Fund (an "Eligible Director") retires after reaching age 60 but before age 70, or who has at least 5 years of consecutive service after reaching age 65 but before age 70, or dies while a Director, such person will be eligible to receive a retirement or death benefit from the Fund. As of each birthday, prior to the 70th birthday, but in no event for a period greater than 10 years, each Eligible Director will be credited with an amount equal to 50% of his or her regular fees (excluding committee fees) for services as a Disinterested Director of the Fund for the calendar year in which such birthday occurs. In addition, an amount equal to 8.50% of any amounts credited under the preceding clause during prior years, is added to each Eligible Director's account until such Eligible Director reaches his or her 70th birthday. An Eligible Director may elect to receive any benefits payable under the Retirement Plan, at his or her election either in one lump sum or in up to fifteen annual installments. Any undistributed amounts continue to accrue interest at 8.50% per year. As of June 30, 2004, the Fund had accrued $5,548 for the Retirement Plan, which is included in Directors' fees and expenses on the Statement of Assets and Liabilities and for the period ended June 30, 2004, expensed $1,947 for the Retirement Plan, which is included in Directors' fees and expenses on the Statement of Operations. Note 8. Commitments and Contingencies The Fund currently has an agreement with State Street Bank & Trust Company that provides a $20,000,000 committed unsecured Line of Credit to the Fund which will be used for cash overdraft protection. Interest is currently payable at the Federal Funds rate plus 50 basis points. There is also a commitment fee of 10 basis points per annum on the daily unused portion of the line of credit which is included in interest expense on the Statement of Operations. During the period ended June 30, 2004, the Fund had borrowings outstanding for 3 days under the line of credit and incurred $109 in interest charges related to these borrowings. The Fund's average amount of debt under the line of credit for the days utilized was $837,565 at a weighted average interest of 1.56%. At June 30, 2004, there were no borrowings outstanding. 19 SunAmerica Senior Floating Rate Fund, Inc. NOTES TO FINANCIAL STATEMENTS -- June 30, 2004 -- (unaudited) (continued) Pursuant to the exemptive relief granted by the Securities and Exchange Commission, the Fund is permitted to participate in an interfund lending program among investment companies advised by SAAMCo or an affiliate. The interfund lending program allows the participating funds to borrow money from and lend money to each other for temporary or emergency purposes. An interfund loan will be made under this facility only if the participating Funds receive a more favorable interest rate than would otherwise be available from a typical bank for a comparable transaction. For the period ended June 30, 2004, the Fund did not participate in this program. Note 9. Senior Loan Participation Commitments The Fund invests primarily in participations and assignments, or acts as a party to the primary lending syndicate of a Variable Rate Senior Loan interest to United States corporations, partnerships, and other entities. If the lead lender in a typical lending syndicate becomes insolvent, enters receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in receiving payment, or may suffer a loss of principal and/or interest. When the Fund purchases a participation of a Senior Loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation, but not with the borrower directly. As such, the Fund assumes the credit risk of the Borrower, Selling Participant or other persons positioned between the Fund and the Borrower. Note 10. Unfunded Loan Commitments On June 30, 2004, the Fund had the following unfunded loan commitments which could be extended at the option of the Borrower:
Name Type Amount ---- --------------------- ---------- Boise Cascade Corp...................... Revolver $1,250,000 Celanese Americas Corp.................. Term Loan 310,184 Juno Lighting, Inc...................... Term Loan 2,500,000 Lyondell Chemical Co.................... Revolver 1,500,000 NRG Energy, Inc......................... Credit Linked Deposit 1,000,000 Pacificare Health Systems, Inc.......... Revolver 250,000 Warner Music Group...................... Revolver 500,000
20 SunAmerica Senior Floating Rate Fund, Inc. DIRECTORS INFORMATION -- June 30, 2004 -- (unaudited) The following table contains basic information regarding the Directors that oversee operations of the Fund and other investment companies within the Fund complex.
Number of Term of Funds in Position Office and Fund Other Name, Held With Length of Complex Directorships Address and SunAmerica Time Principal Occupations Overseen by Held by Date of Birth* Complex Served(4) During Past 5 Years Director(1) Director(2) -------------- ---------- ---------- --------------------------------------------- ----------- --------------------- Judith L. Craven Director 2000- Retired. 74 Director, A.G. Belo DOB: October 6, 1945 present Corporation (1992 to present); Director, Sysco Corporation (1996 to present); Director, Luby's Inc. (1998 to present). William F. Devin Director 1998- Retired. 74 Member of the Board DOB: December 30, 1938 present of Governors, Boston Stock Exchange (1985- Present). Samuel M. Eisenstat Director 2001- Attorney, solo practitioner. 46 Director of North DOB: March 7, 1940 present European Oil Royalty Trust. Stephen J. Gutman Director 2001- President and Member of Managing Directors, 46 None DOB: May 10, 1943 present Beau Brummell-Soho, LLC (licensing of menswear specialty retailing and other activities) (June 1988 to present). Peter A. Harbeck(3) Director 2001- President, CEO and Director, SAAMCo (August 83 None DOB: January 23, 1954 present 1995 to present). Director, SACS (August 1993 to present).
- -------- * The business address for each Director is the Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311-4992. (1) The "Fund Complex" consists of all registered investment company portfolios for which SAAMCo serves as investment adviser or business manager. The "Fund Complex" includes the SunAmerica Money Market Funds (2 funds), SunAmerica Equity Funds (9 funds), SunAmerica Income Funds (6 funds), SunAmerica Focused Series, Inc. (15 portfolios), Anchor Series Trust (9 portfolios), SunAmerica Senior Floating Rate Fund, Inc. (1 fund), SunAmerica Series Trust (32 portfolios), AIG Series Trust (4 funds), VALIC Company I (22 portfolios), VALIC Company II (15 funds) and Seasons Series Trust (19 portfolios). (2) Directorships of companies required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e. "public companies") or other investment companies registered under the Investment Company Act of 1940. (3) Interested Director, as defined in the Investment Company Act of 1940. (4) Directors serve until their successors are duly elected and qualified, subject to the Board's retirement plan discussed in Note 7 of the financial statements. Additional information concerning the Directors is contained in the Statement of Additional Information and is available without charge by calling (800) 858-8850. 21 [LOGO] AIG Sun America Mutual Funds AIG SunAmerica Asset Management Corp. Harborside Financial Center 3200 Plaza 5 Jersey City, NJ 07311-4992 Directors Investment Adviser DISCLOSURE OF QUARTERLY Judith L. Craven PORTFOLIO HOLDINGS William F. Devin AIG SunAmerica Asset Management Corp. The Fund will be required Samuel M. Eisenstat Harborside Financial to file its complete Stephen J. Gutman Center schedule of portfolio Peter A. Harbeck 3200 Plaza 5 holdings with the SEC for Jersey City, NJ its first and third Officers 07311-4992 fis-cal quarters on Form Robert M. Zakem, N-Q for fiscal quarters President Distributor ending after July 9, Donna M. Handel, AIG SunAmerica Capital 2004. Once filed, the Treasurer Services, Inc. Fund's Form N-Q will be Joseph P. Kelly, Harborside Financial available without charge Secretary Center on the SEC's website at J. Steven Neamtz, Vice 3200 Plaza 5 www.sec.gov. You can also President Jersey City, NJ obtain copies of Form N-Q Abbe P. Stein, Vice 07311-4992 by (i) visiting the SEC's President and Public Reference Room in Assistant Secretary Shareholder Servicing Washington, DC Stacey V. Morrison, Agent (information on the Assistant Secretary AIG SunAmerica Fund operation of the Public Thomas Lynch, Assistant Services, Inc. Reference Room may be Secretary Harborside Financial ob-tained by calling Gregory R. Kingston, Center 1-800-SEC-0330) (ii) Vice President and 3200 Plaza 5 sending your request and Assistant Treasurer Jersey City, NJ a duplicating fee to the Robert A. Chopyak, 07311-4992 SEC's Public Reference Assistant Treasurer Room, Washington DC Custodian and Transfer 20549-0102 or (iii) Agent sending your request State Street Bank and electroni-cally to Trust Company publicinfo@sec.gov. P.O. Box 219373 Kansas City, MO 64141 This report is submitted solely for the general VOTING PROXIES ON FUND information of PORTFOLIO SECURITIES shareholders of the Fund. A description of the Distribution of this policies and proce-dures report to persons other that the Fund uses to than shareholders of the determine how to vote Fund is authorized only proxies relating to in connection with a secu-rities held in the currently effective Fund's portfolio which is prospectus, setting forth available in the Trust's details of the Fund, State-ment of Additional which must precede or Information, may be accompany this report. obtained without charge upon re-quest, by calling The accompanying report (800) 858-8850. This has not been audited by information is also independent accountants available from the EDGAR and accordingly no database on the opinion has been Securities and Exchange expressed thereon. Commission's Internet site at http://www.sec.gov.
Distributed by: AIG SunAmerica Capital Services, Inc. SFSAN-6/04 Item 2. Code of Ethics. Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Schedule of Investments. Not applicable. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 9. Submission of Matters to a Vote of Security Holders. Not applicable. Item 10. Controls and Procedures. (a) An evaluation was performed within 90 days of the filing of this report, under the supervision and with the participation of the registrant's management, including the President and Treasurer, of the effectiveness of the design and operation of the registrant's disclosure controls and procedures. Based on that evaluation, the registrant's management, including the President and Treasurer, concluded that the registrant's disclosure controls and procedures are effective. (b) There was no change in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the Registrant's first fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. Item 11. Exhibits. (a) (1) Not applicable. (2) Certification pursuant to Rule 30a-2 under the Investment Company Act of 1940 (17 CFR 270.30a-2) attached hereto as Exhibit 99.CERT. (3) Not applicable. (b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SunAmerica Senior Floating Rate Fund, Inc. By: /s/ Robert M. Zakem ------------------- Robert M. Zakem President Date: September 7, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert M. Zakem ------------------- Robert M. Zakem President Date: September 7, 2004 By: /s/ Donna M. Handel ------------------- Donna M. Handel Treasurer Date: September 7, 2004 EX-99.CERT 2 dex99cert.txt CERTIFICATION PURSUANT TO SECTION 302 Exhibit 99.CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Robert M. Zakem, certify that: 1. I have reviewed this report on Form N-CSR of SunAmerica Senior Floating Rate Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 17, 2004 /s/ Robert M. Zakem - ------------------- Robert M. Zakem President CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Donna M. Handel, certify that: 1. I have reviewed this report on Form N-CSR of SunAmerica Senior Floating Rate Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 17, 2004 /s/ Donna M. Handel - ------------------- Donna M. Handel Treasurer EX-99.906CERT 3 dex99906cert.txt CERTIFICATION PURSUANT TO SECTION 906 EXHIBIT 99.906.CERT CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT Robert M. Zakem, President, and Donna M. Handel, Treasurer of SunAmerica Senior Floating Rate Fund, Inc. (the "Registrant"), each certify to the best of his or her knowledge that: 1. The attached Form N-CSR report of the Registrant fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in such N-CSR report fairly represents, in all material respects, the financial conditions and results of operations of the Registrant as of, and for, the periods presented in the report. Dated: August 17, 2004 /s/ Robert M. Zakem - ------------------- Robert M. Zakem President /s/ Donna M. Handel - ------------------- Donna M. Handel Treasurer A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----