N-CSRS 1 a05-16239_1ncsrs.htm N-CSRS

 

 

 

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UNITED STATES

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SECURITIES AND EXCHANGE COMMISSION

 

 

Washington, D.C. 20549

 

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-10223

 

ING Senior Income Fund

(Exact name of registrant as specified in charter)

 

7337 E. Doubletree Ranch Rd., Scottsdale, AZ

 

85258

(Address of principal executive offices)

 

(Zip code)

 

The Corporation Trust Company, 1209 Orange Street, Wilmington, DE 19801

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

1-800-992-0180

 

 

Date of fiscal year end:

February 28

 

 

Date of reporting period:

August 31, 2005

 

 

 

ITEM 1.                             REPORTS TO STOCKHOLDERS.

 

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1):

 


 

 

 

Semi-Annual Report

 

 

 

August 31, 2005

 

 

 

 

 

 

 

ING Senior Income Fund

 

 

 

 

 

 

 

 

  E-Delivery Sign-up – details inside

This report is submitted for general information to shareholders of the ING Funds. It is not authorized for distribution to prospective shareholders unless accompanied or preceded by a prospectus which includes details regarding the funds’ investment objectives, risks, charges, expenses and other information. This information should be read carefully.

 


 

 

 

ING Senior Income Fund

 

 

SEMI-ANNUAL REPORT

August 31, 2005

 

 

 

Table of Contents

 

 

Portfolio Managers’ Report

3

 

 

 

 

Statement of Assets and Liabilities

8

 

 

 

 

Statement of Operations

10

 

 

 

 

Statements of Changes in Net Assets

11

 

 

 

 

Statement of Cash Flows

12

 

 

 

 

Financial Highlights

13

 

 

 

 

Notes to Financial Statements

15

 

 

 

 

Additional Information

24

 

 

 

 

Portfolio of Investments

25

 

 

 

 

Advisory Contract Approval Discussion

55

 

 

 

 

 

 

 

 

 

 

 

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ING Senior Income Fund

 

 PORTFOLIO MANAGERS’ REPORT

 

Dear Shareholders:

 

ING Senior Income Fund (the “Fund”) is a diversified, closed-end management investment company that seeks to provide investors with a high level of monthly income. The Fund seeks to achieve this objective by investing in a professionally managed portfolio comprised primarily of senior loans.

 

 

PORTFOLIO CHARACTERISTICS
AS OF AUGUST 31, 2005

 

 

Net Assets

 

$2,047,781,542

 

 

Total Assets

 

$2,389,528,841

 

 

Assets Invested in Senior Loans

 

$2,344,265,260

 

 

Senior Loans Represented

 

495

 

 

Average Amount Outstanding per Loan

 

$4,735,889

 

 

Industries Represented

 

39

 

 

Average Loan Amount per Industry

 

$60,109,366

 

 

Portfolio Turnover Rate (YTD)

 

35%

 

 

Weighted Average Days to Interest Rate Reset

 

40

 

 

Average Loan Final Maturity

 

65 months

 

 

Total Leverage as a Percentage of Total Assets

 

10.5%

 

 

 

 

 

 

 

PERFORMANCE SUMMARY

 

During the six months ended August 31, 2005, the Fund’s Class A and Q shares each distributed total dividends from income of $0.36, resulting in an average annualized distribution rate of 5.02%(1) and 5.04%(1), respectively. During the same period, the Fund’s Class B and Class C shares each distributed total dividends from income of $0.32, resulting in an average annualized distribution rate of 4.53%(1) for Class B shares and 4.52%(1) for Class C shares.

 

The Fund’s total return for the six months ended August 31, 2005, for each of the share classes, excluding sales charges, ranged from 2.23% on Class A, 1.96% on Class B and Class C and 2.22% on Class Q. The Fund ran slightly behind the S&P/LSTA Leveraged Loan Index, which returned 2.52%.

 

MARKET OVERVIEW

 

Following a modest correction earlier in the year, the non-investment grade (“leveraged”, or “senior”) loan market during the most recent quarter regained virtually all ground lost during the previous period. Downside volatility that developed in the wake of the General Motors and Ford downgrades in May was quickly supplanted by the resurgence of demand for floating rate assets as the Federal Reserve marches forward in its quest to find the so-called “equilibrium” Fed Funds rate (i.e., the point at which prevailing short-term interest rates neither stimulate nor dampen economic growth). As buying interest reignited, secondary loan prices ended the quarter near their year-to-date highs and new issue credit spreads tightened in response. In short, the market during the most recent quarter looked remarkably like it did six months ago. One important catalyst to the continuing demand for senior loans remains a still relatively upbeat outlook for the U.S. economy at large, and non-investment grade credit conditions, specifically. At the end of August, the lagging twelve-month default (by number of loans) rate stood at 1.51%, up from the cyclical trough of 0.92% (May 2004), but still comfortably below the historical average. While the longer-term impact on growth attributable to the devastation brought on by hurricanes Katrina and Rita remains to be seen, the underlying strength of the economy continues to surprise even the most skeptical observer. According to Standard & Poor’s, the U.S. economy should continue to expand for the balance of 2005 and 2006, albeit at a moderately slower pace as a result of dislocations stemming from the storms. Continued economic growth, combined with measured increases in short-term interest rates, bodes well for credit conditions and loan valuations going forward.

 

(1)              The distribution rate is calculated by annualizing dividends declared during the period and dividing the resulting annualized dividend by the Fund’s average month-end net asset value (in the case of NAV) or the average month-end NYSE Composite closing price (in the case of Market). The distribution rate is based solely on the actual dividends and distributions, which are made at the discretion of management. The distribution rate may or may not include all investment income and ordinarily will not include capital gains or losses, if any.

 

3


 

ING Senior Income Fund

 

 PORTFOLIO MANAGERS’ REPORT (continued)

 

PORTFOLIO OVERVIEW

 

Individual loan positioning was the most significant contributor to results for the quarter. The Fund held positions in four of the top five individual contributors during the quarter (three of which resided in the Fund’s top five), and held only one of the lowest contributors (due to repricing activity, not credit deterioration). Sector positioning had a more moderate impact, but still proved positive. One notable change in sector rankings during the period under review was an increase in oil and gas (to 5.5% of total assets, from 3.0% at prior year-end). We remain constructive on this sector given supply demand dynamics and the generally predictable revenue and cash flow profile of companies that operate in this industry. Sectors the Fund continues to underweight and/or avoid include automotive suppliers and steel producers (the latter not material as a percentage of total assets). The auto sector (3.6% of total assets at quarter end, but significantly less if only traditional parts suppliers are included) remains plagued by declining unit volumes and excess capacity, lack of pricing power, and what could prove to be a losing battle with legacy liabilities such as pension costs. Generally speaking, we intend to steer clear of these industries until we see some visibility as to the resolution of some of these key issues.

 

 

TOP TEN SENIOR LOAN ISSUERS

 

AS OF AUGUST 31, 2005

 

AS A PERCENTAGE OF:

 

 

 

 

TOTAL

 

NET

 

 

 

 

ASSETS

 

ASSETS

 

 

Charter Communications Operating, LLC

 

2.6%

 

 

3.0%

 

 

 

General Growth Properties, Inc.

 

2.0%

 

 

2.3%

 

 

 

Metro-Goldwyn-Mayer Studios, Inc.

 

1.6%

 

 

1.9%

 

 

 

Sungard Data Systems, Inc.

 

1.4%

 

 

1.6%

 

 

 

Community Health Systems, Inc.

 

1.4%

 

 

1.6%

 

 

 

Olympus Cable Holdings, LLC

 

1.2%

 

 

1.5%

 

 

 

Davita, Inc.

 

1.2%

 

 

1.4%

 

 

 

El Paso Corporation

 

1.1%

 

 

1.3%

 

 

 

Reliant Energy Resources Corporation

 

1.1%

 

 

1.3%

 

 

 

Fidelity National InformationSolutions, Inc.

 

1.1%

 

 

1.3%

 

 

 

 

Portfolio holdings are subject to change daily.

 

 

 

 

 

TOP TEN INDUSTRY SECTORS AS OF

 

AUGUST 31, 2005 AS A

 

PERCENTAGE OF:

 

 

 

TOTAL

 

NET

 

 

 

ASSETS

 

ASSETS

 

 

North American Cable

 

9.0%

 

 

10.5%

 

 

 

Healthcare, Education and Childcare

 

8.5%

 

 

10.0%

 

 

 

Buildings and Real Estate

 

6.1%

 

 

7.2%

 

 

 

Chemicals, Plastics and Rubber

 

5.9%

 

 

6.9%

 

 

 

Oil and Gas

 

5.5%

 

 

6.4%

 

 

 

Printing and Publishing

 

5.3%

 

 

6.2%

 

 

 

Utilities

 

4.6%

 

 

5.4%

 

 

 

Leisure, Amusement, Entertainment

 

4.2%

 

 

4.9%

 

 

 

Containers, Packaging and Glass

 

4.1%

 

 

4.8%

 

 

 

Automobile

 

3.6%

 

 

4.2%

 

 

 

 

Portfolio holdings are subject to change daily.

 

 

 

 

The Fund remains well diversified. As of August 31, 2005, the average individual loan position represented approximately 0.20% of total assets, while the average industry sector accounted for roughly 2.52%. Both measures are slightly below their respective levels at the end of the last quarter.

 

USE OF LEVERAGE

 

The Fund seeks to prudently utilize financial leverage in order to increase the yield to shareholders. As of August 31, 2005, the Fund had $252 million outstanding under a $750 million revolving credit facility.

 

4


 

ING Senior Income Fund

 

 PORTFOLIO MANAGERS’ REPORT (continued)

 

OUTLOOK

 

While several unknowns cloud the near-term horizon, we expect the loan market to finish out the year in solid fashion. On a macro scale, only with the passage of time will we know if the fallout from the gulf storms, particularly the impact of higher energy prices on consumer behavior and input prices, will override the constructive effects of what is expected to be a rebuilding endeavor of historic proportions. The stimulus provided by such a reconstruction effort could propel economic growth well into the foreseeable future. Specific to the loan market, investor sentiment remains decidedly positive, buoyed by a favorable near-term default outlook and the consensus view that short-term rates will continue to grind higher, at least over the near-term. While we share these views, we also remain concerned about increasingly aggressive loan structures and the potential for further erosion in credit spreads brought on by unmet demand for floating rate loans. As such, we continue to avoid transactions that are simply not priced in accordance with the underlying risk. Our strategy remains centered on delivering strong long-term risk-adjusted returns.

 

Investment Types
as of August 31, 2005
(as a percent of total investments)

 

 

 

 

Jeffrey A. Bakalar

 

Daniel A. Norman

 

 

Senior Vice President

 

Senior Vice President

 

 

Senior Portfolio Manager

 

Senior Portfolio Manager

 

 

ING Investment Management Co.

 

ING Investment Management Co.

 

 

 

 

 

 

 

 

 

 

 

5


 

ING Senior Income Fund

 

 PORTFOLIO MANAGERS’ REPORT (continued)

 

 

 

Average Annual Total Returns for the
Periods Ended August 31, 2005

 

 

 

1 Year

 

3 Year

 

April 2, 2001

 

December 15, 2000

 

Including Sales Charge:

 

 

 

 

 

 

 

 

 

 

Class A(1) 

 

(0.01)%

 

4.80

%

 

5.07%

 

—

 

Class B(2) 

 

1.45%

 

5.35

%

 

4.92%

 

—

 

Class C(3) 

 

3.44%

 

5.96

%

 

5.13%

 

—

 

Class Q

 

4.91%

 

6.44

%

 

—

 

5.57%

 

Excluding Sales Charge:

 

 

 

 

 

 

 

 

 

 

Class A

 

4.97%

 

6.52

%

 

5.67%

 

—

 

Class B

 

4.45%

 

5.94

%

 

5.11%

 

—

 

Class C

 

4.44%

 

5.96

%

 

5.13%

 

—

 

Class Q

 

4.91%

 

6.44

%

 

—

 

5.57%

 

S&P/LSTA Leveraged Loan Index(4) 

 

5.27%

 

6.67

%

 

5.06%

 

5.27%

 

 

The table above illustrates the total return of ING Senior Income Fund against the S&P/LSTA Leveraged Loan Index. The Index has no cash in its portfolio, imposes no sales charges and incurs no operating expenses. An investor cannot invest directly in an index. The Fund’s performance is shown both with and without the imposition of sales charges.

 

Total returns reflect that the Investment Manager may have waived or recouped fees and expenses otherwise payable by the Fund.

 

Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month-end.

 

This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.

 

The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.

 

Fund holdings are subject to change daily.

 

(1)     Reflects deduction of the maximum Class A sales charge of 2.50%. There is no front-end sales charge if you purchase Class A Common Shares in an amount of $1 million or more. However, the shares will be subject to a 1.00% EWC if they are repurchased by the Fund within one year of purchase.

(2)     Class B maximum Early Withdrawal Charge (“EWC”) is 3% in the first year, declining to 1% in the fifth year and eliminated thereafter.

(3)     Class C maximum EWC is 1% for the first year.

(4)     Source: S&P/Loan Syndication Trading Association. The S&P/LSTA Leveraged Loan Index (“LLI”) is an unmanaged total return index that captures accrued interest, repayments, and market value changes. It represents a broad cross section of leveraged loans syndicated in the United States, including dollar-denominated loans to overseas issuers. Standard & Poor’s and the Loan Syndications & Trading Association (“LSTA”) conceived the LLI to establish a performance benchmark for the syndicated leveraged loan industry. An investor cannot invest directly in an index. Since inception performance for the index is shown from March 31, 2001 for Class A, B and C and from December 31, 2000 for Class Q.

 

6


 

ING Senior Income Fund

 

 PORTFOLIO MANAGERS’ REPORT (continued)

 

 

YIELDS AND DISTRIBUTIONS RATES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Day SEC Yields(1)

 

Average Annualized Distribution Rates(2)

 

 

 

 

Class A

 

Class B

 

Class C

 

Class Q

 

Class A

 

Class B

 

Class C

 

Class Q

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31, 2005

 

4.70%

 

4.32%

 

4.31%

 

4.79%

 

5.02%

 

4.53%

 

4.52%

 

5.04%

 

 

February 28, 2005

 

3.97%

 

3.57%

 

3.57%

 

4.08%

 

3.88%

 

3.39%

 

3.39%

 

3.90%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)     Yield is calculated by dividing the Fund’s net investment income per share for the most recent thirty days by the net asset value. Yield calculations do not include any commissions or sales charges, and are compounded for six months and annualized for a twelve-month period to derive the Fund’s yield consistent with the SEC standardized yield formula for open-end investment companies.

 

(2)     Distribution Rates are calculated by annualizing dividends declared during the period (i.e., divide the monthly dividend amount by the number of days in the month and multiply by the number of days in the fiscal year) and then dividing the resulting annualized dividend by the month-ending NAV.

 

Risk is inherent in all investing. The following are the principal risks associated with investing in the Fund. This is not, and is not intended to be, a description of all risks of investing in the Fund. A more detailed description of the risks of investing in the Fund is contained in the Fund’s current prospectus.

 

Credit Risk: The Fund invests a substantial portion of its assets in below investment grade senior loans and other below investment grade assets. Below investment grade loans involve a greater risk that borrowers may not make timely payment of the interest and principal due on their loans. They also involve a greater risk that the value of such loans could decline significantly. If borrowers do not make timely payments of the interest due on their loans, the yield on the Fund will decrease. If borrowers do not make timely payment of the principal due on their loans, or if the value of such loans decreases, the value of the Fund will decrease.

 

Interest Rate Risk: Changes in short-term market interest rates will directly affect the yield on the Fund. If short-term market interest rates fall, the yield on the Fund will also fall. To the extent that the interest rate spreads on loans in the Fund experience a general decline, the yield on the Fund will fall and the value of the Fund’s assets may decrease, which will cause the Fund’s value to decrease. Conversely, when short-term market interest rates rise, because of the lag between changes in such short-term rates and the resetting of the floating rates on assets in the Fund, the impact of rising rates will be delayed to the extent of such lag.

 

Leverage Risk: The Fund borrows money for investment purposes. Borrowing increases both investment opportunity and investment risk. In the event of a general market decline in the value of assets such as those in which the Fund invests, the effect of that decline will be magnified in the Fund because of the additional assets purchased with the proceeds of the borrowings.

 

7


 

ING Senior Income Fund

 

 STATEMENT OF ASSETS AND LIABILITIES as of August 31, 2005 (Unaudited)

 

 

ASSETS:

 

 

 

Investments in securities at value (Cost $2,323,343,350)

 

$2,349,635,804

 

Cash

 

9,878,702

 

Receivables:

 

 

 

Investment securities sold

 

1,000,000

 

Fund shares sold

 

13,125,179

 

Interest

 

15,705,094

 

Other

 

59,869

 

Prepaid expenses

 

103,810

 

Prepaid arrangement fees on notes payable

 

20,383

 

Total assets

 

2,389,528,841

 

LIABILITIES:

 

 

 

Payable for investment securities purchased

 

82,193,252

 

Notes payable

 

252,000,000

 

Accrued interest payable

 

849,854

 

Deferred arrangement fees on senior loans

 

854,457

 

Payable to affilates

 

2,820,790

 

Income distribution payable

 

2,619,091

 

Accrued trustees fees

 

16,083

 

Other accrued expenses and liabilities

 

393,772

 

Total liabilities

 

341,747,299

 

NET ASSETS

 

$2,047,781,542

 

NET ASSETS CONSIST OF:

 

 

 

Paid-in capital

 

$2,025,790,743

 

Distributions in excess of net investment income

 

(1,945,665

)

Accumulated net realized loss on investments

 

(2,355,990

)

Net unrealized appreciation on investments

 

26,292,454

 

NET ASSETS

 

$2,047,781,542

 

 

See Accompanying Notes to Financial Statements

 

8


 

ING Senior Income Fund

 

 STATEMENT OF ASSETS AND LIABILITIES as of August 31, 2005 (Unaudited) (continued)

 

 

Class A:

 

 

 

Net assets

 

$

827,759,899

 

Shares authorized

 

unlimited

 

Par value

 

$

0.01

 

Shares outstanding

 

53,148,041

 

Net asset value and redemption price per share

 

$

15.57

 

Maximum offering price per share (2.50%)(1)

 

$

15.97

 

Class B:

 

 

 

Net assets

 

$

121,102,773

 

Shares authorized

 

unlimited

 

Par value

 

$

0.01

 

Shares outstanding

 

7,789,648

 

Net asset value and redemption price per share(2)

 

$

15.55

 

Class C:

 

 

 

Net assets

 

$

915,389,952

 

Shares authorized

 

unlimited

 

Par value

 

$

0.01

 

Shares outstanding

 

58,826,562

 

Net asset value and redemption price per share(2)

 

$

15.56

 

Class Q:

 

 

 

Net assets

 

$

183,528,918

 

Shares authorized

 

unlimited

 

Par value

 

$

0.01

 

Shares outstanding

 

11,837,440

 

Net asset value and redemption price per share

 

$

15.50

 

 

(1)             Maximum offering price is computed ar 100/97.50 of net asset value. On purchases of $100,000 or more, the offering price is reduced.

(2)             Redemption price per share may be reduced for any applicable contingent deferred sales charge.

 

See Accompanying Notes to Financial Statements

 

9


 

ING Senior Income Fund

 

 STATEMENT OF OPERATIONS for the Six Months Ended August 31, 2005 (Unaudited)

 

 

INVESTMENT INCOME:

 

 

 

Dividends

 

$

37,778

 

Interest

 

63,467,527

 

Arrangement fees earned

 

436,213

 

Other

 

1,138,588

 

Total investment income

 

65,080,106

 

EXPENSES:

 

 

 

Investment management fees

 

9,096,472

 

Administration fees

 

1,137,059

 

Distribution and service fees:

 

 

 

Class A

 

995,997

 

Class B

 

615,101

 

Class C

 

3,322,381

 

Class Q

 

223,694

 

Transfer agent fees:

 

 

 

Class A

 

148,261

 

Class B

 

22,808

 

Class C

 

164,838

 

Class Q

 

33,258

 

Shareholder reporting expense

 

167,800

 

Interest expense

 

5,482,993

 

Custodian fees

 

411,861

 

Credit facility fees

 

13,816

 

Professional fees

 

140,392

 

Trustee fees

 

39,852

 

SEC registration fees

 

224,077

 

Postage expense

 

278,758

 

Miscellaneous expense

 

46,698

 

Total expenses

 

22,566,116

 

Recouped fees

 

170,767

 

Net expenses

 

22,736,883

 

Net investment income

 

42,343,223

 

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

 

 

 

Net realized loss on investments

 

(2,644,283

)

Net change in unrealized appreciation on investments

 

1,935,113

 

Net realized and unrealized loss on investments

 

(709,170

)

Net increase in net assets resulting from operations

 

$

41,634,053

 

 

See Accompanying Notes to Financial Statements

 

10


 

ING Senior Income Fund

 

 STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)

 

 

 

 

Six Months
Ended
August 31,
2005

 

Year
Ended
February 28,
2005

 

INCREASE IN NET ASSETS FROM OPERATIONS:

 

 

 

 

 

Net investment income

 

$

42,343,223

 

$

41,435,388

 

Net realized income (loss) on investments

 

(2,644,283

)

4,274,502

 

Net change in unrealized appreciation or
depreciation on investments

 

1,935,113

 

13,321,736

 

Net increase in net assets resulting from
operations

 

41,634,053

 

59,031,626

 

DISTRIBUTIONS TO SHAREHOLDERS:

 

 

 

 

 

Net investment income:

 

 

 

 

 

Class A

 

(18,203,319

)

(15,392,853

)

Class B

 

(2,524,588

)

(3,140,818

)

Class C

 

(18,143,832

)

(17,474,122

)

Class Q

 

(4,119,084

)

(6,835,055

)

Net realized gain on investments:

 

 

 

 

 

Class A

 

—

 

(1,943,784

)

Class B

 

—

 

(416,134

)

Class C

 

—

 

(2,526,261

)

Class Q

 

—

 

(743,837

)

Total distributions

 

(42,990,823

)

(48,472,864

)

CAPITAL SHARE TRANSACTIONS:

 

 

 

 

 

Net proceeds from sale of shares

 

506,218,643

 

1,640,693,467

 

Dividends reinvested

 

28,592,863

 

32,670,018

 

 

 

534,811,506

 

1,673,363,485

 

Cost of shares repurchased

 

(361,214,643

)

(477,107,687

)

Net increase in net assets resulting from
capital share transactions

 

173,596,863

 

1,196,255,798

 

Net increase in net assets

 

172,240,093

 

1,206,814,560

 

NET ASSETS:

 

 

 

 

 

Beginning of period

 

1,875,541,449

 

668,726,889

 

End of period

 

$

2,047,781,542

 

$

1,875,541,449

 

Distribution in excess of net investment income
at end of period

 

$

(1,945,665

)

$

(1,298,065

)

 

See Accompanying Notes to Financial Statements

 

11


 

ING Senior Income Fund

 

 STATEMENT OF CASH FLOWS for the Six Months Ended August 31, 2005 (Unaudited)

 

 

INCREASE (DECREASE) IN CASH

 

 

 

Cash Flows From Operating Activities:

 

 

 

Interest received

 

$

58,636,597

 

Facility fees paid

 

(34,126

)

Arrangement fee paid

 

131,326

 

Other income received

 

1,165,579

 

Interest paid

 

(4,977,475

)

Other operating expenses paid

 

(15,410,680

)

Purchases of investments

 

(1,657,764,911

)

Proceeds from disposition of investments

 

1,401,054,483

 

Net cash used for operating activities

 

(217,199,207

)

Cash Flows From Financing Activities:

 

 

 

Distributions paid to common shareholders

 

(14,397,960

)

Proceeds from capital shares sold

 

512,803,896

 

Disbursements for capital shares repurchased

 

(361,214,643

)

Net issuance of notes payable

 

89,000,000

 

Net cash flows provided by financing activities

 

226,191,293

 

Net increase in cash

 

8,992,086

 

Cash at beginning of period

 

886,616

 

Cash at end of period

 

$

9,878,702

 

Reconciliation of Net Increase In Net Assets Resulting From
Operations To Net Cash Provided By Operating Activities:

 

 

 

Net increase in net assets resulting from operations

 

$

41,634,053

 

Adjustments to reconcile net increase in net assets resulting
from operations to net cash provided by operating activities:

 

 

 

Change in unrealized appreciation on investments

 

(1,935,113

)

Net accretion/amortization of discounts on investments

 

155,948

 

Realized gain on sale of investments

 

2,644,283

 

Purchases of investments

 

(1,657,764,912

)

Proceeds on sale of investments

 

1,401,054,483

 

Increase in interest receivable

 

(5,024,654

)

Decrease in other receivable

 

26,991

 

Increase in prepaid arrangement fees on notes payable

 

(20,310

)

Decrease in prepaid expenses

 

192,071

 

Decrease in deferred arrangement fees on senior loans

 

(304,887

)

Increase in accrued interest payable

 

505,518

 

Increase in payable to affiliate

 

698,098

 

Increase in accrued trustee fees

 

10,919

 

Increase in income distribution payable

 

997,186

 

Decrease in accrued expenses

 

(68,881

)

Total adjustments

 

(258,833,260

)

Net cash used for operating activities

 

$

(217,199,207

)

Non Cash Financing Activities

 

 

 

Receivable for shares sold

 

$

13,125,179

 

Reinvestment of dividends

 

$

28,592,863

 

 

See Accompanying Notes to Financial Statements

 

12


 

 ING SENIOR INCOME FUND (UNAUDITED)

 

FINANCIAL HIGHLIGHTS

 

Selected data for a share of beneficial interest outstanding throughout each period.

 

 

 

Class A

 

 

 

Six Months

 

 

 

 

 

 

 

April 2,

 

 

 

Ended

 

Year Ended

 

2001(1) to

 

 

 

August 31,

 

February 28 or 29,

 

February 28,

 

 

 

2005

 

2005

 

2004

 

2003

 

2002

 

Per Share Operating Performance:

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

$

15.59

 

15.47

 

14.83

 

14.92

 

15.00

 

 

Income (loss) from investment operations:

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

0.36

 

0.55

 

0.61

 

0.69

 

0.81

 

 

Net realized and unrealized gain (loss) on investments

$

(0.02

)

0.18

 

0.69

 

(0.09

)

(0.09

)

 

Total income from investment operations

$

0.34

 

0.73

 

1.30

 

0.60

 

0.72

 

 

Less distributions from:

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

0.36

 

0.56

 

0.64

 

0.69

 

0.80

 

 

Net realized gain on investments

$

—

 

0.05

 

0.02

 

—

 

—

 

 

Total distributions

$

0.36

 

0.61

 

0.66

 

0.69

 

0.80

 

 

Net asset value, end of period

$

15.57

 

15.59

 

15.47

 

14.83

 

14.92

 

 

Total Investment Return(2)

%

2.23

 

4.80

 

8.93

 

4.15

 

4.92

 

 

Ratios/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

Net assets, end of period (000’s)

$

827,760

 

736,740

 

172,975

 

11,106

 

2,411

 

 

Average borrowings (000’s)(3)

$

287,005

 

34,767

 

20,771

 

17,655

 

19,797

 

 

Asset coverage per $100 of debt

$

913

 

1,251

 

—

* 

689

 

3,220

 

 

Ratios to average net assets after reimbursement/recoupment:

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(4)(5)

%

1.48

 

1.34

 

1.36

 

1.42

 

1.47

 

 

Expenses (with interest and other fees related to revolving credit facility)(4)(5)

%

2.04

 

1.45

 

1.43

 

1.63

 

1.73

 

 

Net investment income(4)(5)

%

4.52

 

3.49

 

3.84

 

4.88

 

5.58

 

 

Ratios to average net assets before reimbursement/recoupment:

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(4)(5)

%

1.45

 

1.35

 

1.46

 

1.57

 

1.82

 

 

Expenses (with interest and other fees related to revolving credit facility)(4)(5)

%

2.01

 

1.46

 

1.53

 

1.78

 

2.07

 

 

Net investment income(4)(5)

%

4.56

 

3.48

 

3.74

 

4.73

 

5.26

 

 

Portfolio turnover rate

%

35

 

82

 

72

 

60

 

65

 

 

Shares outstanding at end of period (000’s)

 

53,148

 

47,252

 

11,180

 

749

 

162

 

 

 

 

 

 

 

 

Class B

 

 

 

Six Months

 

 

 

 

 

 

 

April 2,

 

 

 

Ended

 

Year Ended

 

2001(1) to

 

 

 

August 31,

 

February 28 or 29,

 

February 28,

 

 

 

2005

 

2005

 

2004

 

2003

 

2002

 

Per Share Operating Performance:

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

$

15.57

 

15.45

 

14.82

 

14.92

 

15.00

 

 

Income (loss) from investment operations:

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

0.29

 

0.47

**

0.53

 

0.62

 

0.75

 

 

Net realized and unrealized gain (loss) on investments

$

0.01

 

0.18

**

0.69

 

(0.10

)

(0.10

)

 

Total income from investment operations

$

0.30

 

0.65

 

1.22

 

0.52

 

0.65

 

 

Less distributions from:

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

0.32

 

0.48

 

0.57

 

0.62

 

0.73

 

 

Net realized gain on investments

$

—

 

0.05

 

0.02

 

—

 

—

 

 

Total distributions

$

0.32

 

0.53

 

0.59

 

0.62

 

0.73

 

 

Net asset value, end of period

$

15.55

 

15.57

 

15.45

 

14.82

 

14.92

 

 

Total Investment Return(2)

%

1.96

 

4.28

 

8.33

 

3.57

 

4.45

 

 

Ratios/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

Net assets, end of period (000’s)

$

121,103

 

125,200

 

62,852

 

17,648

 

12,776

 

 

Average borrowings (000’s)(3)

$

287,005

 

34,767

 

20,771

 

17,655

 

19,797

 

 

Asset coverage per $100 of debt

$

913

 

1,251

 

—

*

689

 

3,220

 

 

Ratios to average net assets after reimbursement/recoupment:

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(4)(5)

%

1.98

 

1.87

 

1.87

 

1.91

 

1.96

 

 

Expenses (with interest and other fees related to revolving credit facility)(4)(5)

%

2.54

 

1.94

 

1.97

 

2.09

 

2.23

 

 

Net investment income(4)(5)

%

4.01

 

2.93

 

3.47

 

4.12

 

5.19

 

 

Ratios to average net assets before reimbursement/recoupment:

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(4)(5)

%

2.20

 

2.13

 

2.22

 

2.31

 

2.29

 

 

Expenses (with interest and other fees related to revolving credit facility)(4)(5)

%

2.76

 

2.19

 

2.31

 

2.49

 

2.54

 

 

Net investment income(4)(5)

%

3.80

 

2.67

 

3.13

 

3.72

 

4.89

 

 

Portfolio turnover rate

%

35

 

82

 

72

 

60

 

65

 

 

Shares outstanding at end of period (000’s)

 

7,790

 

8,043

 

4,068

 

1,191

 

856

 

 

 

(1)         Commencement of operations.

(2)         Total investment returns are not annualized for periods of less than one year and do not include sales load.

(3)         Based on the active days of borrowing.

(4)         Annualized for periods less than one year.

(5)         The Investment Manager has agreed to limit expenses excluding interest, taxes, brokerage commissions, leverage expenses, other investment related costs and extraordinary expenses, subject to possible recoupment by the Investment Manager within three years.

*            There were no loans outstanding at period end.

**     Per share numbers have been calculated using the monthly average share method, which more appropriately represents the per share data for the period.

 

See Accompanying Notes to Financial Statements

 

13


 

 ING SENIOR INCOME FUND (UNAUDITED) (CONTINUED)

 

FINANCIAL HIGHLIGHTS

 

Selected data for a share of beneficial interest outstanding throughout each period.

 

 

 

Class C

 

 

 

Six Months

 

 

 

 

 

 

 

April 2,

 

 

 

Ended

 

Year Ended

 

2001(1) to

 

 

 

August 31,

 

February 28 or 29,

 

February 28,

 

 

 

2005

 

2005

 

2004

 

2003

 

2002

 

Per Share Operating Performance:

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

$

15.58

 

15.46

 

14.82

 

14.92

 

15.00

 

 

Income (loss) from investment operations:

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

0.32

 

0.47

 

0.53

 

0.62

 

0.75

 

 

Net realized and unrealized gain (loss) on investments

$

(0.02

)

0.18

 

0.70

 

(0.10

)

(0.10

)

 

Total income from investment operations

$

0.30

 

0.65

 

1.23

 

0.52

 

0.65

 

 

Less distributions from:

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

0.32

 

0.48

 

0.57

 

0.62

 

0.73

 

 

Net realized gain on investments

$

—

 

0.05

 

0.02

 

—

 

—

 

 

Total distributions

$

0.32

 

0.53

 

0.59

 

0.62

 

0.73

 

 

Net asset value, end of period

$

15.56

 

15.58

 

15.46

 

14.82

 

14.92

 

 

Total Investment Return(2)

%

1.96

 

4.28

 

8.40

 

3.57

 

4.45

 

 

Ratios/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

Net assets, end of period (000’s)

$

915,390

 

830,584

 

275,849

 

32,647

 

19,391

 

 

Average borrowings (000’s)(3)

$

287,005

 

34,767

 

20,771

 

17,655

 

19,797

 

 

Asset coverage per $100 of debt

$

913

 

1,251

 

—

*

689

 

3,220

 

 

Ratios to average net assets after reimbursement/recoupment:

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(4)(5)

%

1.98

 

1.83

 

1.86

 

1.91

 

1.96

 

 

Expenses (with interest and other fees related to revolving credit facility)(4)(5)

%

2.54

 

1.94

 

1.94

 

2.09

 

2.23

 

 

Net investment income(4)(5)

%

4.02

 

2.88

 

3.38

 

4.19

 

5.20

 

 

Ratios to average net assets before reimbursement/recoupment:

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(4)(5)

%

1.95

 

1.83

 

1.96

 

2.06

 

2.29

 

 

Expenses (with interest and other fees related to revolving credit facility)(4)(5)

%

2.51

 

1.95

 

2.04

 

2.24

 

2.54

 

 

Net investment income(4)(5)

%

4.05

 

2.87

 

3.28

 

4.04

 

4.89

 

 

Portfolio turnover rate

%

35

 

82

 

72

 

60

 

65

 

 

Shares outstanding at end of period (000’s)

 

58,827

 

53,316

 

17,841

 

2,202

 

1,300

 

 

 

 

 

 

 

 

Class Q

 

 

 

Six Months

 

 

 

 

 

 

 

April 2,

 

 

 

Ended

 

Year Ended

 

2001(1) to

 

 

 

August 31,

 

February 28 or 29,

 

February 28,

 

 

 

2005

 

2005

 

2004

2003

2002(6)

 

2001

 

Per Share Operating Performance:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

$

15.52

 

15.41

 

14.79

 

14.89

 

15.30

 

15.02

 

 

Income (loss) from investment operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

0.36

 

0.52

 

0.63

 

0.69

 

0.81

 

0.14

 

 

Net realized and unrealized gain (loss) on investments

$

(0.02

)

0.20

 

0.65

 

(0.10

)

(0.32

)

0.14

 

 

Total income from investment operations

$

0.34

 

0.72

 

1.28

 

0.59

 

0.49

 

0.28

 

 

Less distributions from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

$

0.36

 

0.56

 

0.64

 

0.69

 

0.90

 

—

 

 

Net realized gain on investments

$

—

 

0.05

 

0.02

 

—

 

—

 

—

 

 

Total distributions

$

0.36

 

0.61

 

0.66

 

0.69

 

0.90

 

—

 

 

Net asset value, end of period

$

15.50

 

15.52

 

15.41

 

14.79

 

14.89

 

15.30

 

 

Total Investment Return(2)

%

2.22

 

4.75

 

8.82

 

4.09

 

3.73

 

1.80

 

 

Ratios/Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets, end of period (000’s)

$

183,529

 

183,017

 

157,051

 

215,341

 

215,029

 

94,096

 

 

Average borrowings (000’s)(3)

$

287,005

 

34,767

 

20,771

 

17,655

 

19,797

 

—

 

 

Asset coverage per $100 of debt

$

913

 

1,251

 

—

*

689

 

3,220

 

—

*

 

Ratios to average net assets after reimbursement/recoupment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(4)(5)

%

1.48

 

1.34

 

1.40

 

1.41

 

1.43

 

—

 

 

Expenses (with interest and other fees related to revolving credit facility)(4)(5)

%

2.04

 

1.45

 

1.54

 

1.59

 

1.63

 

1.85

 

 

Net investment income(4)(5)

%

4.51

 

3.39

 

4.17

 

4.69

 

5.94

 

7.00

 

 

Ratios to average net assets before reimbursement/recoupment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (before interest and other fees related to revolving credit facility)(4)(5)

%

1.45

 

1.34

 

1.48

 

1.56

 

1.70

 

—

 

 

Expenses (with interest and other fees related to revolving credit facility)(4)(5)

%

2.01

 

1.45

 

1.62

 

1.74

 

1.90

 

1.85

 

 

Net investment income(4)(5)

%

4.55

 

3.38

 

4.09

 

4.54

 

5.67

 

7.00

 

 

Portfolio turnover rate

%

35

 

82

 

72

 

60

 

65

 

11

 

 

Shares outstanding at end of period (000’s)

 

11,837

 

11,789

 

10,188

 

14,559

 

14,439

 

6,152

 

 

 

(1)         Commencement of operations.

(2)         Total investment returns are not annualized for periods of less than one year and do not include sales load.

(3)         Based on the active days of borrowing.

(4)         Annualized for periods less than one year.

(5)         The Investment Manager has agreed to limit expenses excluding interest, taxes, brokerage commissions, leverage expenses, other investment related costs and extraordinary expenses, subject to possible recoupment by the Investment Manager within three years.

(6)         Effective March 30, 2001, the Management of the Fund effectuated a reverse stock split of 0.6656 of a Share for one Share. Prior period amounts have been restated to reflect the reverse stock split.

*            There were no loans outstanding at period end.

 

See Accompanying Notes to Financial Statements

 

14


 

ING Senior Income Fund

 

 NOTES TO FINANCIAL STATEMENTS as of August 31, 2005 (Unaudited)

 

NOTE 1 — ORGANIZATION

 

ING Senior Income Fund (the “Fund”), a Delaware statutory trust, is registered under the Investment Company Act of 1940 as amended, (the “1940 Act”), as a continuously-offered, diversified, closed-end, management investment company. The Fund invests at least 80% of its assets in senior loans which are exempt from registration under the Securities Act of 1933 as amended (the “‘33 Act”), but contain certain restrictions on resale and cannot be sold publicly. These loans bear interest (unless otherwise noted) at rates that float periodically at a margin above the London Inter-Bank Offered Rate (“LIBOR”) and other short-term rates. During the period December 15, 2000 through March 30, 2001, the Fund issued 19,933,953 Class Q shares to an affiliate of the Fund’s manager, ING Investments, LLC (the “Investment Manager”) in exchange for $200,000,000. Effective April 2, 2001, the Fund commenced the offering of Class A, Class B, Class C and Class Q shares to the public.

 

The Fund currently has four classes of shares; A, B, C and Q. Class A shares are subject to a sales charge of up to 2.50%. Class A shares purchased in excess of $1,000,000 are subject to an Early Withdrawal Charge (“EWC”) of up to 1% within one year of purchase. Class A shares are issued upon conversion of Class B shares eight years after purchase or through an exchange of Class A shares of certain ING Funds. Class B common shares are subject to an EWC of up to 3% over the five-year period after purchase and Class C common shares are subject to an EWC of 1% during the first year after purchase.

 

To maintain a measure of liquidity, the Fund offers to repurchase between 5% and 25% of its outstanding common shares on a monthly basis. This is a fundamental policy that can not be changed without shareholder approval. The Fund currently anticipates offerings to repurchase 5% of its outstanding common shares each month. The Fund may not repurchase more than 25% in any calendar quarter. Other than these monthly repurchases, no market for the Fund’s common shares is expected to exist. The separate classes of shares differ principally in the distribution fees and shareholder servicing fees. All shareholders bear the common expenses of the Fund and earn income and realized gains/losses from the portfolio pro rata on the average daily net assets of each class, without distinction between share classes. Differences in the per share dividend rates generally result from differences in separate class expenses, including distribution fees and shareholder servicing fees.

 

Effective January 31, 2005, Class B common shares of the Fund are closed to new investment, provided that (1) Class B common shares of SIF may be purchased through the reinvestment of dividends issued by SIF; and (2) subject to the terms and conditions of relevant exchange privileges and as permitted under their respective prospectuses, Class B common shares of SIF may be acquired through exchange of Class B shares of other funds in the ING mutual funds complex for SIF’s Class B common shares.

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES

 

The following is a summary of the significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles in the United States of America.

 

A.            Senior Loan and Other Security Valuation. Senior loans held by the Fund are normally valued at the mean of the means of one or more bid and asked quotations obtained from a pricing service or other sources determined by the Board of Trustees to be independent and believed to be reliable. Loans for which reliable market value quotations are not readily available may be valued with reference to another loan or a group of loans for which quotations are more readily available and whose characteristics are comparable to the loan being valued. Under this approach, the comparable loan or loans serve as a proxy for changes in value of the loan being valued.

 

The Fund has engaged an independent pricing service to provide quotations from dealers in loans and to calculate values under the proxy procedure described above. It is expected that

 

15


 

ING Senior Income Fund

 

 NOTES TO FINANCIAL STATEMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)

 

most of the loans held by the Fund will be valued with reference to quotations from the independent pricing service or with reference to the proxy procedure described above. As of August 31, 2005, 99.96% of total investments were valued based on these procedures.

 

Prices from a pricing service may not be available for all loans and the Investment Manager may believe that the price for a loan derived from market quotations or the proxy procedure described above is not reliable or accurate. Among other reasons, this may be the result of information about a particular loan or borrower known to the Investment Manager that the Investment Manager believes may not be known to the pricing service or reflected in a price quote. In this event, the loan is valued at fair value as determined in good faith under procedures established by the Fund’s Board of Trustees and in accordance with the provisions of the 1940 Act. Under these procedures, fair value is determined by the Investment Manager and monitored by the Fund’s Board of Trustees through its Valuation, Proxy and Brokerage Committee (formerly, Valuation and Proxy Committee). In fair valuing a loan, consideration is given to several factors, which may include, among others, the following: (i) the characteristics of and fundamental analytical data relating to the loan, including the cost, size, current interest rate, period until the next interest rate reset, maturity and base lending rate of the loan, the terms and conditions of the loan and any related agreements, and the position of the loan in the borrower’s debt structure; (ii) the nature, adequacy and value of the collateral, including the Fund’s rights, remedies and interests with respect to the collateral; (iii) the creditworthiness of the borrower and the cash flow coverage of outstanding principal and interest, based on an evaluation of its financial condition, financial statements and information about the borrower’s business, cash flows, capital structure and future prospects; (iv) information relating to the market for the loan, including price quotations for, and trading in, the loan and interests in similar loans and the market environment and investor attitudes towards the loan and interests in similar loans; (v) the reputation and financial condition of the agent for the loan and any intermediate participants in the loan; (vi) the borrower’s management; and (vii) the general economic and market conditions affecting the fair value of the loan. Securities other than senior loans for which reliable market value quotations are not readily available and all other assets will be valued at their respective fair values as determined in good faith by, and under procedures established by, the Board of Trustees of the Fund. Investments in securities maturing in 60 days or less from the date of valuation are valued at amortized cost, which, when combined with accrued interest, approximates market value. To the extent the Fund invests in other registered companies, the Fund’s NAV is calculated based on the current NAV of the registered investment company in which the Fund invests. The prospectuses for those investment companies explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing.

 

B.            Distributions to Shareholders. The Fund declares and goes ex-dividend daily and pays dividends monthly from net investment income. Distributions from capital gains, if any, are declared and paid annually. The Fund may make additional distributions to comply with the distribution requirements of the Internal Revenue Code. The character and amounts of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America for investment companies. Dividends paid by the Fund from net investment income and distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to shareholders. The Fund records distributions to its shareholders on the ex-dividend date.

 

C.            Security Transactions and Revenue Recognition. Revolver and delayed draw loans are booked on a settlement date basis. Security transactions and senior loans are accounted for on trade date (date the order to buy or sell is executed). Realized gains or losses are reported on the basis of identified cost of securities sold. Interest income is recorded on an accrual basis at the then-current loan rate. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to meet payments as they become due. Upon such discontinuance, all unpaid accrued interest is reversed. Cash collections on non-accrual loans are

 

16


 

ING Senior Income Fund

 

 NOTES TO FINANCIAL STATEMENTS as of August 31, 2005 (Unaudited) (continued)

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)

 

generally applied as a reduction to the recorded investment of the loan. Loans are generally returned to accrual status only after all past due amounts have been received and the borrower has demonstrated sustained performance. Premium amortization and discount accretion are determined by the effective yield method over the shorter of four years or the actual term of the loan. Arrangement fees received on revolving credit facilities, which represent non-refundable fees or purchase discounts associated with the acquisition of loans, are deferred and recognized using the effective yield method over the shorter of four years or the actual term of the loan. No such fees are recognized on loans which have been placed on non-accrual status. Arrangement fees associated with all other loans, except revolving credit facilities, are treated as discounts and are accreted as described above. Dividend income is recorded on the ex-dividend date.

 

D.            Federal Income Taxes. It is the Fund’s policy to comply with subchapter M of the Internal Revenue Code and related excise tax provisions applicable to regulated investment companies and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. Therefore, no federal income tax provision is required. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expire.

 

E.             Use of Estimates. Management of the Fund has made certain estimates and assumptions relating to the reporting of assets, liabilities, revenues, expenses and contingencies to prepare these financial statements in conformity with accounting principles generally accepted in the United States of America for investment companies. Actual results could differ from these estimates.

 

NOTE 3 — INVESTMENTS

 

For the six months ended August 31, 2005, the cost of purchases and the proceeds from principal repayment and sales of investments, excluding short-term investments, totaled $1,091,557,351 and $797,058,293, respectively. At August 31, 2005, the Fund held senior loans valued at $2,344,265,260 representing 99.8% of its total investments (excluding short-term investments). The market value of these assets is established as set forth in Note 2.

 

The senior loans acquired by the Fund may take the form of a direct lending relationship with the borrower or an assignment of a lender’s interest in a loan. The lead lender in a typical corporate loan syndicate administers the loan and monitors collateral. In the event that the lead lender becomes insolvent, enters FDIC receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in realizing payment, or may suffer a loss of principal and/or interest.

 

Warrants and shares of common stock held in the portfolio were acquired in conjunction with loans held by the Fund. Certain of these shares and warrants are restricted and may not be publicly sold without registration under the ‘33 Act, or without an exemption under the ‘33 Act. In some cases, these restrictions expire after a designated period of time after the issuance of the stock.

Dates of acquisition and cost or assigned basis of restricted securities are as follows:

 

 

 

 

Date of

 

 

 

Cost or

 

 

 

 

 

Acquisition

 

 

 

Assigned Basis

 

 

 

 

 

 

 

 

Decision One Corporation — Common Shares

 

06/03/05

 

 

$

295,535

 

 

Galey & Lord, Inc. — Common Shares

 

03/31/04

 

 

—

 

 

Murray’s Discount Auto Stores, Inc. — Escrow

 

08/11/03

 

 

21,891

 

 

Neoplan USA Corporation — Common Shares

 

08/31/04

 

 

—

 

 

Neoplan USA Corporation — Preferred B Shares

 

08/29/03

 

 

—

 

 

Neoplan USA Corporation — Preferred C Shares

 

08/29/03

 

 

40,207

 

 

Neoplan USA Corporation — Preferred D Shares

 

08/29/03

 

 

330,600

 

 

New World Restaurant Group, Inc. — Warrants

 

02/20/02

 

 

20

 

 

Norwood Promotional Products, Inc. — Common Shares

 

08/23/04

 

 

10,046

 

 

Safelite Glass Corporation — Common Shares

 

06/21/01

 

 

—

 

 

Safelite Realty Corporation — Common Shares

 

06/21/01

 

 

—

 

 

Targus Group, Inc. — Warrants

 

03/11/03

 

 

—

 

 

Total restricted securities excluding senior loans (market value
of $4,387,509 was 0.2% of net assets at August 31, 2005).

 

 

 

 

$

698,299

 

 

 

17


 

ING Senior Income Fund

 

 NOTES TO FINANCIAL STATEMENTS as of August 31, 2005 (Unaudited) (continued)

 

NOTE 4 — MANAGEMENT AND ADMINISTRATION AGREEMENTS

 

The Fund has entered into an Investment Management Agreement with the Investment Manager to provide advisory and management services. The Investment Management Agreement compensates the Investment Manager with a fee, computed daily and payable monthly, at an annual rate of 0.80% of the Fund’s average daily gross asset value, minus the sum of the Fund’s accrued liabilities (other than liabilities for the principal amount of any borrowings incurred, commercial paper or notes issued by the Fund) (“Managed Assets”). The Fund is sub-advised by ING Investment Management Co. (“ING IM”). Under the Sub-Advisory Agreement, ING IM is responsible for managing the assets of the Fund in accordance with its investment objective and policies, subject to oversight by the Investment Manager. Both ING IM and the Investment Manager are indirect, wholly-owned subsidiaries of ING Groep N.V. and affiliates of each other.

 

The Fund has also entered into an Administration Agreement with ING Funds Services, LLC (the “Administrator”), an indirect, wholly-owned subsidiary of ING Groep N.V., to provide administrative services. The Administrator is compensated with a fee, computed daily and payable monthly, at an annual rate of 0.10% of the Fund’s Managed Assets.

 

NOTE 5 — DISTRIBUTION AND SERVICE FEES

 

Each share class of the Fund has adopted a Plan pursuant to Rule 12b-1 under the 1940 Act (the “12b-1 Plans”), whereby ING Funds Distributor, LLC (the “Distributor”) is reimbursed or compensated (depending on the class of shares) by the Fund for expenses incurred in the distribution of the Fund’s shares (“Distribution Fees”). Pursuant to the 12b-1 Plans, the Distributor is entitled to a payment each month for actual expenses incurred in the distribution and promotion of the Fund’s shares, including expenses incurred in printing prospectuses and reports used for sales purposes, expenses incurred in preparing and printing sales literature and other such distribution related expenses, including any distribution or Shareholder Servicing Fees (“Service Fees”) paid to securities dealers who executed a distribution agreement with the Distributor. Under the 12b-1 plans, each class of shares of the Fund pays the Distributor a combined Distribution and Service Fee based on average daily net assets at the following annual rates:

 

Class A

 

Class B

 

Class C

 

Class Q

 

0.25%

 

1.00%

 

0.75%

 

0.25%

 

 

During the six months ended August 31, 2005, the Distributor waived 0.25% of the Service Fee on Class B shares only.

 

NOTE 6 — EXPENSE LIMITATIONS

 

The Investment Manager has voluntarily agreed to limit expenses, excluding interest, taxes, brokerage commissions, leverage expenses, other investment-related costs and extraordinary expenses, to the following:

 

Class A

—

0.90% of Managed Assets plus 0.45% of average daily net assets

Class B

—

0.90% of Managed Assets plus 1.20% of average daily net assets

Class C

—

0.90% of Managed Assets plus 0.95% of average daily net assets

Class Q

—

0.90% of Managed Assets plus 0.45% of average daily net assets

 

As of August 31, 2005, the amounts of waived and reimbursed fees that are subject to possible recoupment by the Investment Manager, and the related expiration dates are as follows:

 

August 31,

 

 

 

2006

 

2007

 

2008

 

Total

 

$197,132

 

$433,947

 

$ —

 

$631,079

 

 

18


 

ING Senior Income Fund

 

 NOTES TO FINANCIAL STATEMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

NOTE 7 — COMMITMENTS

 

The Fund has entered into a one-year revolving credit agreement, collateralized by assets of the Fund, to borrow up to $750 million maturing April 30, 2006. Borrowing rates under this agreement are based on a commercial paper pass through rate plus 0.25% on the funded portion. A facility fee of 0.15% is charged on the entire facility. There was $252 million of borrowings outstanding at August 31, 2005 at a rate of 3.54%, excluding other fees related to the entire facility. Average borrowings for the six months ended August 31, 2005 was $287,983,696 and the average annualized interest rate was 3.38%, excluding other fees related to the entire facility.

 

NOTE 8 — SENIOR LOAN COMMITMENTS

 

At August 31, 2005, the Fund had unfunded loan commitments pursuant to the terms of the following loan agreements:

 

Aftermarket Technology Corporation

 

$

1,750,000

 

Baker & Taylor, Inc.

 

1,200,000

 

Builders Firstsource, Inc.

 

1,500,000

 

CCM Merger, Inc.

 

1,000,000

 

Concentra Operating Corporation

 

4,000,000

 

Federal-Mogul Corporation

 

1,810,000

 

Hanley-Wood, LLC

 

300,220

 

Interstate Bakeries Corporation

 

2,500,000

 

Kerasotes Theatres, Inc.

 

1,500,000

 

Key Energy Services, Inc.

 

4,500,000

 

La Paloma Generating Company

 

120,492

 

Motorsport Aftermarket Group, Inc.

 

288,676

 

NCI Building Systems, Inc.

 

$

133,000

 

Pinnacle Entertainment, Inc.

 

294,323

 

Primedia, Inc.

 

2,996,240

 

Rural Cellular Corporation

 

2,000,000

 

Syniverse Holding, LLC

 

1,500,000

 

Trump Entertainment Resorts
Holdings, L.P.

 

1,750,000

 

United States Shipping, LLC

 

576,922

 

Vanguard Health Systems, Inc.

 

3,500,000

 

Warner Chilcott Corporation

 

1,722,396

 

Western Refining Company, L.P.

 

1,250,000

 

 

 

$

36,192,269

 

 

NOTE 9 — TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES

 

At August 31, 2005, the Fund had the following amounts recorded in payable to affiliates on the accompanying Statement of Assets and Liabilities (see Notes 4 and 5):

 

Accrued Investment
Management Fees

 

Accrued
Administrative Fees

 

Accrued Distribution
and Service Fees

 

Total

 

$1,768,227

 

$190,461

 

$862,102

 

$2,820,790

 

 

The Fund has adopted a Retirement Policy covering all independent trustees of the Fund who will have served as an independent trustee for at least five years at the time of retirement. Benefits under this plan are based on an annual rate as defined in the plan agreement, as amended.

 

NOTE 10 — CUSTODIAL AGREEMENT

 

State Street Bank and Trust Company (“SSB”) serves as the Fund’s custodian and recordkeeper. Custody fees paid to SSB may be reduced by earnings credits based on the cash balances held by SSB for the Fund.  There were no earning credits for the six months ended August 31, 2005.

 

NOTE 11 — SUBORDINATED LOANS AND UNSECURED LOANS

 

The primary risk arising from investing in subordinated loans or in unsecured loans is the potential loss in the event of default by the issuer of the loans. The Fund may invest up to 10% of its total assets, measured at the time of investment, in subordinated loans and up to 10% of its total assets, measured at the time of investment, in unsecured loans. As of August 31, 2005, the Fund held 0.00% of its total assets in subordinated loans and unsecured loans.

 

19


 

ING Senior Income Fund

 

 NOTES TO FINANCIAL STATEMENTS as of August 31, 2005 (Unaudited) (continued)

 

NOTE 12 — CAPITAL SHARES

 

Transactions in capital shares and dollars were as follows:

 

 

 

Class A Shares

 

Class B

 

 

 

Six Months
Ended
August 31,
2005

 

Year
Ended
February 28,
2005

 

Six Months
Ended
August 31,
2005

 

Year
Ended
February 28,
2005

 

Number of Shares

 

 

 

 

 

 

 

 

 

Shares sold

 

15,751,096

 

45,019,222

 

624,716

 

4,821,925

 

 

Dividends reinvested

 

840,865

 

788,747

 

110,398

 

156,144

 

 

Shares redeemed

 

(10,695,723

)

(9,735,823

)

(988,848

)

(1,002,526

)

 

Net increase (decrease) in shares outstanding

 

5,896,238

 

36,072,146

 

(253,734

)

3,975,543

 

 

Dollar Amount ($)

 

 

 

 

 

 

 

 

 

 

Shares sold

 

$

244,957,116

 

$

698,962,403

 

$

9,699,061

 

$

74,699,998

 

 

Dividends reinvested

 

12,814,765

 

12,229,952

 

1,689,106

 

2,420,379

 

 

Shares redeemed

 

(166,335,619

)

(151,275,068

)

(15,361,741

)

(15,545,425

)

 

Net increase (decrease)

 

$

91,436,262

 

$

559,917,287

 

$

(3,973,574

)

$

61,574,952

 

 

 

 

 

Class C

 

Class Q

 

 

 

Six Months
Ended
August 31,
2005

 

Year
Ended
February 28,
2005

 

Six Months
Ended
August 31,
2005

 

Year
Ended
February 28,
2005

 

Number of Shares

 

 

 

 

 

 

 

 

 

Shares sold

 

12,721,151

 

40,188,013

 

3,480,470

 

15,769,611

 

 

Dividends reinvested

 

849,964

 

960,495

 

72,267

 

202,240

 

 

Shares redeemed

 

(8,060,961

)

(5,673,352

)

(3,504,227

)

(14,371,320

)

 

Net increase in shares outstanding

 

5,510,154

 

35,475,156

 

48,510

 

1,600,531

 

 

Dollar Amount ($)

 

 

 

 

 

 

 

 

 

 

Shares sold

 

$

197,669,443

 

$

623,309,712

 

$

53,893,023

 

$

243,721,354

 

 

Dividends reinvested

 

13,018,866

 

14,895,319

 

1,070,126

 

3,124,368

 

 

Shares redeemed

 

(125,201,038

)

(88,054,810

)

(54,316,245

)

(222,232,384

)

 

Net increase

 

$

85,487,271

 

$

550,150,221

 

$

646,904

 

$

24,613,338

 

 

 

NOTE 13 — FEDERAL INCOME TAXES

 

The amount of distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America for investment companies. These book/tax differences may be either temporary or permanent. Permanent differences are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences are not reclassified. Key differences include the treatment of short-term capital gains, organizational and offering expenses, and wash sale deferrals. Distributions in excess of net investment income and/or net realized capital gains for tax purposes are reported as distributions of paid-in capital.

 

Dividends paid by the Fund from net investment income and distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to shareholders.

 

The tax composition of dividends and distributions to shareholders was as follows:

 

Six months ended August 31, 2005

 

Year ended February 28, 2005

 

Ordinary Income

 

Ordinary Income

 

Long-Term
Capital Gain

 

$42,990,823

 

$47,736,711

 

$736,153

 

 

20


 

ING Senior Income Fund

 

 NOTES TO FINANCIAL STATEMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

NOTE 13 — FEDERAL INCOME TAXES (continued)

 

The tax-basis components of distributable earnings and the expiration dates of the capital loss carryforwards which may be used to offset future realized capital gains for federal income tax purposes as of February 28, 2005 were:

 

Undistributed
Ordinary Income

 

Undistributed
Long-Term
Capital Gains

 

Unrealized
Appreciation/
(Depreciation)

 

Post-October
Capital Losses
Deferred

 

Capital
Loss
Carryforwards

 

Expiration
Dates

 

$737,583

 

$117,123

 

$24,117,769

 

$0

 

$0

 

—

 

 

NOTE 14 — INFORMATION REGARDING TRADING OF ING’S U.S. MUTUAL FUNDS

 

ING Investments has reported to the Boards of Directors/Trustees (the “Boards”) of the ING Funds that, like many U.S. financial services companies, ING Investments and certain of its U.S. affiliates have received informal and formal requests for information since September 2003 from various governmental and self-regulatory agencies in connection with investigations related to mutual funds and variable insurance products. ING Investments has advised the Boards that it and its affiliates have cooperated fully with each request.

 

In addition to responding to regulatory and governmental requests, ING Investments reported that management of U.S. affiliates of ING Groep N.V., including ING Investments (collectively, “ING”), on their own initiative, have conducted, through independent special counsel and a national accounting firm, an extensive internal review of trading in ING insurance, retirement, and mutual fund products. The goal of this review was to identify any instances of inappropriate trading in those products by third parties or by ING investment professionals and other ING personnel. ING’s internal review related to mutual fund trading is now substantially completed. ING has reported that, of the millions of customer relationships that ING maintains, the internal review identified several isolated arrangements allowing third parties to engage in frequent trading of mutual funds within ING’s variable insurance and mutual fund products, and identified other circumstances where frequent trading occurred, despite measures taken by ING intended to combat market timing. ING further reported that each of these arrangements has been terminated and fully disclosed to regulators. The results of the internal review were also reported to the independent members of the Board.

 

ING Investments has advised the Board that most of the identified arrangements were initiated prior to ING’s acquisition of the businesses in question in the U.S. ING Investments further reported that the companies in question did not receive special benefits in return for any of these arrangements, which have all been terminated.

 

Based on the internal review, ING investments has advised the Board that the identified arrangements do not represent a systemic problem in any of the companies that were involved.

 

In September 2005, ING Fund Distributor, LLC (“IFD”), the distributor of certain ING Funds, settled an administrative proceeding with the NASD regarding three arrangements, dating from 1995, 1996 and 1998, under which the administrator to the then-Pilgrim Funds, which subsequently became part of the ING Funds, entered into formal and informal arrangements that permitted frequent trading. Under the terms of the Letter Of Acceptance, Waiver and Consent (“AWC”) with the NASD, under which IFD neither admitted nor denied the allegations or findings, IFD consented to the following sanctions: (i) a censure; (ii) a fine of $1.5 million; (iii) restitution of approximately $1.44 million to certain ING Funds for losses attributable to excessive trading described in the AWC; and (iv) agreement to make certification to NASD regarding the review and establishment of certain procedures.

 

21


 

ING Senior Income Fund

 

 NOTES TO FINANCIAL STATEMENTS as of August 31, 2005 (Unaudited) (continued)

 

NOTE 14 — INFORMATION REGARDING TRADING OF ING’S U.S. MUTUAL FUNDS (continued)

 

In addition to the arrangements discussed above, ING Investments reported to the Board that, at this time, these instances include the following, in addition to the arrangements subject to the AWC discussed above:

 

•                                          Aeltus Investment Management, Inc. (a predecessor entity to ING Investment Management Co.) has identified two investment professionals who engaged in extensive frequent trading in certain ING Funds. One was subsequently terminated for cause and incurred substantial financial penalties in connection with this conduct and the second has been disciplined.

 

•                                          ReliaStar Life Insurance Company (“ReliaStar”) entered into agreements seven years ago permitting the owner of policies issued by the insurer to engage in frequent trading and to submit orders until 4pm Central Time. In 2001 ReliaStar also entered into a selling agreement with a broker-dealer that engaged in frequent trading. Employees of ING affiliates were terminated and/or disciplined in connection with these matters.

 

•                                          In 1998, Golden American Life Insurance Company entered into arrangements permitting a broker-dealer to frequently trade up to certain specific limits in a fund available in an ING variable annuity product. No employee responsible for this arrangement remains at the company.

 

For additional information regarding these matters, you may consult the Form 8-K and Form 8-K/A for each of four life insurance companies, ING USA Annuity and Life Insurance Company, ING Life Insurance and Annuity Company, ING Insurance Company of America, and ReliaStar Life Insurance Company of New York, each filed with the Securities and Exchange Commission (the “SEC”) on October 29, 2004 and September 8, 2004. These Forms 8-K and Forms 8-K/A can be accessed through the SEC’s Web site at http://www.sec.gov. Despite the extensive internal review conducted through independent special counsel and a national accounting firm, there can be no assurance that the instances of inappropriate trading reported to the Board are the only instances of such trading respecting the ING Funds.

 

ING Investments reported to the Board that ING is committed to conducting its business with the highest standards of ethical conduct with zero tolerance for noncompliance. Accordingly, ING Investments advised the Board that ING management was disappointed that its voluntary internal review identified these situations. Viewed in the context of the breadth and magnitude of its U.S. business as a whole, ING management does not believe that ING’s acquired companies had systemic ethical or compliance issues in these areas. Nonetheless, Investments reported that given ING’s refusal to tolerate any lapses, it has taken the steps noted below, and will continue to seek opportunities to further strengthen the internal controls of its affiliates.

 

•                                          ING has agreed with the ING Funds to indemnify and hold harmless the ING Funds from all damages resulting from wrongful conduct by ING or its employees or from ING’s internal investigation, any investigations conducted by any governmental or self-regulatory agencies, litigation or other formal proceedings, including any proceedings by the Securities and Exchange Commission. ING Investments reported to the Board that ING management believes that the total amount of any indemnification obligations will not be material to ING or its U.S. business.

 

•                                          ING updated its Code of Conduct for employees reinforcing its employees’ obligation to conduct personal trading activity consistent with the law, disclosed limits, and other requirements.

 

22


 

ING Senior Income Fund

 

 NOTES TO FINANCIAL STATEMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

NOTE 14 — INFORMATION REGARDING TRADING OF ING’S U.S. MUTUAL FUNDS (continued)

 

•                                          The ING Funds, upon a recommendation from ING, updated their respective Codes of Ethics applicable to investment professionals with ING entities and certain other fund personnel, requiring such personnel to pre-clear any purchases or sales of ING Funds that are not systematic in nature (i.e., dividend reinvestment), and imposing minimum holding periods for shares of ING Funds.

 

•                                          ING instituted excessive trading policies for all customers in its variable insurance and retirement products and for shareholders of the ING Funds sold to the public through financial intermediaries. ING does not make exceptions to these policies.

 

•                                          ING reorganized and expanded its U.S. Compliance Department, and created an Enterprise Compliance team to enhance controls and consistency in regulatory compliance.

 

As has been widely reported in the media, the New York Attorney General’s office (“NYAG”) is conducting broad investigations regarding insurance quoting and brokerage practices. ING U.S. has been subpoenaed in this regard, and is cooperating fully with these NYAG requests for information.

 

ING U.S. believes that its practices are consistent with our business principles and our commitment to our customers.

 

At this time, in light of the current regulatory factors, ING U.S. is actively engaged in reviewing whether any modifications in our practices are appropriate for the future.

 

There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased fund redemptions, reduced sale of fund shares, or other adverse consequences to ING Funds.

 

NOTE 15 — SUBSEQUENT EVENTS

 

DIVIDENDS DECLARED

 

Subsequent to August 31, 2005, the Fund declared the following dividends:

 

Per Share Amount

 

Type

 

Declaration Date

 

Record Date

 

Payable Date

 

$0.06639(A)

 

NII

 

Daily

 

Daily

 

October 1, 2005

 

$0.05979(B)

 

NII

 

Daily

 

Daily

 

October 1, 2005

 

 

NII — Net Investment Income

(A) For Class A and Q shares.

(B) For Class B and C shares.

 

23


 

ING Senior Income Fund

 

 ADDITIONAL INFORMATION

 

 

PROXY VOTING INFORMATION

 

A description of the policies and procedures that the Registrant uses to determine how to vote proxies related to portfolio securities is available (1) without charge, upon request, by calling Shareholder Services toll-free at 800-992-0180; (2) on the Registrant’s website at www.ingfunds.com and (3) on the SEC’s website at www.sec.gov. Information regarding how the Registrant voted proxies related to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Registrant’s website at www.ingfunds.com and on the SEC’s website at www.sec.gov.

 

QUARTERLY PORTFOLIO HOLDINGS

 

The Registrant files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Registrant’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Registrant’s Forms N-Q may be reviewed and copied at the Commissions Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and is available upon request from the Registrant by calling Shareholder Services toll-free at 800-992-0180.

 

24


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited)

 

Senior Loans*: 114.5%

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Aerospace & Defense: 1.4%

 

 

 

 

 

 

 

 

 

American Airlines, Inc.

 

B2

 

B+

 

 

 

$  2,375,000 

 

Revolver, 8.250%-8.560%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2009

 

 

 

 

 

$

2,375,000

 

 

 

Arinc, Inc.

 

Ba3

 

BB

 

 

 

987,500

 

Term Loan, 5.230%, maturing

 

 

 

 

 

 

 

 

 

March 10, 2011

 

 

 

 

 

1,002,930

 

 

 

Ceradyne, Inc.

 

Ba3

 

BB-

 

 

 

2,481,250

 

Term Loan, 5.625%, maturing

 

 

 

 

 

 

 

 

 

August 18, 2011

 

 

 

 

 

2,518,469

 

 

 

Dyncorp, Inc.

 

B2

 

B+

 

 

 

3,991,667

 

Term Loan, 6.063%, maturing

 

 

 

 

 

 

 

 

 

February 11, 2011

 

 

 

 

 

4,047,382

 

 

 

Hexcel Corporation

 

B2

 

B+

 

 

 

1,233,333

 

Term Loan, 5.250%-5.563%, maturing

 

 

 

 

 

 

 

 

 

March 01, 2012

 

 

 

 

 

1,249,006

 

 

 

K&F Industries, Inc.

 

B2

 

B+

 

 

 

4,750,000

 

Term Loan, 6.150%-6.170%, maturing

 

 

 

 

 

 

 

 

 

November 16, 2012

 

 

 

 

 

4,834,312

 

 

 

Spirit AeroSystems, Inc.

 

B1

 

BB-

 

 

 

1,666,667

 

Term Loan, 5.961%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

1,695,000

 

 

 

Standard Aero Holdings, Inc.

 

B2

 

B+

 

 

 

4,361,538

 

Term Loan, 5.720%-5.919%, maturing

 

 

 

 

 

 

 

 

 

August 20, 2012

 

 

 

 

 

4,424,236

 

 

 

Transdigm, Inc.

 

B1

 

B+

 

 

 

3,452,547

 

Term Loan, 5.800%, maturing

 

 

 

 

 

 

 

 

 

July 22, 2010

 

 

 

 

 

3,508,651

 

 

 (2)

United Air Lines, Inc.

 

Ba2

 

BB

 

 

 

1,980,875

 

Debtor in Possession Term Loan, 10.000%,

 

 

 

 

 

 

 

 

 

maturing December 30, 2005

 

 

 

 

 

2,003,160

 

 

 

Wyle Holdings, Inc.

 

NR

 

B+

 

 

 

1,995,000

 

Term Loan, 6.290%-6.460%, maturing

 

 

 

 

 

 

 

 

 

January 28, 2011

 

 

 

 

 

2,028,043

 

 

 

 

 

 

 

 

 

29,686,189

 

Automobile: 4.2%

 

 

 

 

 

 

 

 

 

Accuride Corporation

 

B1

 

BB+

 

 

 

6,467,273

 

Term Loan, 5.500%-5.688%, maturing

 

 

 

 

 

 

 

 

 

January 31, 2012

 

 

 

 

 

6,531,945

 

 

 

Affinia Group, Inc.

 

B2

 

BB-

 

 

 

2,982,506

 

Term Loan, 6.400%, maturing

 

 

 

 

 

 

 

 

 

November 30, 2011

 

 

 

 

 

2,998,352

 

 

 

Aftermarket Technology Corporation

 

Ba3

 

BB-

 

 

 

558,035

 

Term Loan, 5.430%, maturing

 

 

 

 

 

 

 

 

 

January 08, 2007

 

 

 

 

 

560,127

 

805,057

 

Term Loan, 6.390%-6.480%, maturing

 

 

 

 

 

 

 

 

 

February 08, 2008

 

 

 

 

 

812,354

 

1,199,870

 

Term Loan, 6.390%-6.450%, maturing

 

 

 

 

 

 

 

 

 

February 08, 2008

 

 

 

 

 

1,210,744

 

 

See Accompanying Notes to Financial Statements

 

25


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Automobile: (continued)

 

 

 

 

 

 

 

 

 

Carey International, Inc.

 

NR

 

B-

 

 

 

$  2,493,750

 

Term Loan, 7.690%, maturing

 

 

 

 

 

 

 

 

 

May 11, 2012

 

 

 

 

 

$

2,369,063

 

 

 (2)

Collins & Aikman Products Company

 

NR

 

NR

 

 

 

1,000,000

 

Debtor in Possession Term Loan, maturing

 

 

 

 

 

 

 

 

 

May 17, 2007

 

 

 

 

 

1,007,083

 

 

 

Dayco Products, LLC

 

B1

 

B+

 

 

 

466,746

 

Term Loan, 6.370%-6.66%, maturing

 

 

 

 

 

 

 

 

 

June 23, 2011

 

 

 

 

 

472,143

 

 

 

Dura Operating Corporation

 

B2

 

B+

 

 

 

4,000,000

 

Term Loan, 7.070%, maturing May 03, 2011

 

 

 

 

 

4,050,000

 

 

 

Federal-Mogul Corporation

 

NR

 

NR

 

 

 

3,190,000

 

Revolver, 5.625%-6.000%, maturing

 

 

 

 

 

 

 

 

 

November 01, 2009

 

 

 

 

 

3,201,963

 

 

 

Goodyear Tire & Rubber Company

 

Ba3

 

BB

 

 

 

5,500,000

 

Term Loan, 5.000%, maturing April 30, 2010

 

 

 

 

 

5,575,625

 

 

 

Goodyear Tire & Rubber Company

 

B2

 

B+

 

 

 

10,500,000

 

Term Loan, 6.320%, maturing April 30, 2010

 

 

 

 

 

10,642,496

 

 

 

HLI Operating Company, Inc.

 

B1

 

BB-

 

 

 

906,424

 

Term Loan, 6.620%-7.310%, maturing

 

 

 

 

 

 

 

 

 

June 03, 2009

 

 

 

 

 

918,699

 

 

 

Key Plastics, LLC

 

B1

 

BB-

 

 

 

2,180,191

 

Term Loan, 6.540-8.250%, maturing

 

 

 

 

 

 

 

 

 

June 29, 2010

 

 

 

 

 

2,196,542

 

 

 

Keystone Automotive Industries, Inc.

 

B1

 

B+

 

 

 

830,435

 

Term Loan, 5.628-6.026%, maturing

 

 

 

 

 

 

 

 

 

October 30, 2009

 

 

 

 

 

837,701

 

 

 

Motorsport Aftermarket Group, Inc.

 

B2

 

B

 

 

 

433,013

 

Term Loan, 6.740%, maturing

 

 

 

 

 

 

 

 

 

December 15, 2011

 

 

 

 

 

435,719

 

1,267,162

 

Term Loan, 6.740%, maturing

 

 

 

 

 

 

 

 

 

December 15, 2011

 

 

 

 

 

1,275,082

 

 

 (2)

RJ Tower Corporation

 

Ba3

 

BBB

 

 

 

9,000,000

 

Debtor in Possession Term Loan, 6.625%,

 

 

 

 

 

 

 

 

 

maturing February 02, 2007

 

 

 

 

 

9,132,192

 

 

 

Safelite Glass Corporation

 

B3

 

B+

 

 

 

5,666,570

 

Term Loan, 8.500%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2007

 

 

 

 

 

5,524,906

 

12,505,418

 

Term Loan, 9.000%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2007

 

 

 

 

 

12,192,782

 

 

 

Tenneco Automotive, Inc.

 

B1

 

B+

 

 

 

535,967

 

Term Loan, 5.760%, maturing

 

 

 

 

 

 

 

 

 

December 12, 2010

 

 

 

 

 

545,347

 

1,129,257

 

Term Loan, 6.080%, maturing

 

 

 

 

 

 

 

 

 

December 12, 2010

 

 

 

 

 

1,149,019

 

 

 

TRW Automotive Acquisitions Corporation

 

Ba2

 

BB+

 

 

 

7,462,500

 

Term Loan, 4.938%, maturing

 

 

 

 

 

 

 

 

 

October 29, 2010

 

 

 

 

 

7,537,125

 

2,982,506

 

Term Loan, 5.250%, maturing June 30, 2012

 

 

 

 

 

3,017,303

 

 

See Accompanying Notes to Financial Statements

 

26


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Automobile: (continued)

 

 

 

 

 

 

 

 

 

United Components, Inc.

 

B1

 

BB-

 

 

 

$  1,808,333

 

Term Loan, 6.260%, maturing June 30, 2010

 

 

 

 

 

$

1,839,415

 

 

 

 

 

 

 

 

 

86,033,727

 

Banking: 0.1%

 

 

 

 

 

 

 

 

 

 

 

Outsourcing Solutions, Inc.

 

B2

 

B-

 

 

 

2,500,000

 

Term Loan, 7.921%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2010

 

 

 

 

 

2,518,750

 

 

 

 

 

 

 

 

 

2,518,750

 

Beverage, Food & Tobacco: 2.8%

 

 

 

 

 

 

 

 

 

Alliance One International, Inc.

 

B1

 

BB-

 

 

 

3,990,000

 

Term Loan, 6.730%, maturing May 13, 2010

 

 

 

 

 

4,049,850

 

 

 

Birds Eye Foods, Inc.

 

B1

 

B+

 

 

 

4,622,396

 

Term Loan, 6.420%, maturing June 30, 2008

 

 

 

 

 

4,684,992

 

 

 

Commonwealth Brands, Inc.

 

B1

 

B+

 

 

 

2,269,090

 

Term Loan, 7.000%, maturing

 

 

 

 

 

 

 

 

 

August 28, 2007

 

 

 

 

 

2,311,636

 

 

 

Constellation Brands, Inc.

 

Ba2

 

BB

 

 

 

13,597,639

 

Term Loan, 4.750%-5.688%, maturing

 

 

 

 

 

 

 

 

 

November 30, 2011

 

 

 

 

 

13,827,099

 

 

 

Dr. Pepper Bottling Company of Texas, Inc.

 

B1

 

BB-

 

 

 

4,373,312

 

Term Loan, 5.339%-5.609%, maturing

 

 

 

 

 

 

 

 

 

December 19, 2010

 

 

 

 

 

4,442,191

 

 

 

Golden State Foods Corporation

 

B1

 

B+

 

 

 

4,443,750

 

Term Loan, 5.430%, maturing

 

 

 

 

 

 

 

 

 

February 28, 2011

 

 

 

 

 

4,499,297

 

 

 

Keystone Foods Holdings, LLC

 

Ba3

 

B+

 

 

 

4,136,394

 

Term Loan, 5.125-5.438%, maturing

 

 

 

 

 

 

 

 

 

June 16, 2011

 

 

 

 

 

4,190,684

 

 

 

Michael Foods, Inc.

 

B1

 

B+

 

 

 

2,738,255

 

Term Loan, 5.090%-5.859%, maturing

 

 

 

 

 

 

 

 

 

November 21, 2010

 

 

 

 

 

2,786,174

 

 

 

Pierre Foods, Inc.

 

B1

 

B+

 

 

 

6,025,833

 

Term Loan, 5.690%, maturing June 30, 2010

 

 

 

 

 

6,119,987

 

 

 

Southern Wine & Spirits of America, Inc.

 

Ba3

 

BB+

 

 

 

6,483,750

 

Term Loan, 4.990%, maturing May 31, 2012

 

 

 

 

 

6,552,640

 

 

 

Sturm Foods, Inc.

 

 

 

 

 

 

 

1,500,000

 

Term Loan, 6.250%, maturing May 26, 2011

 

B2

 

B+

 

1,511,250

 

 

 

Sturm Foods, Inc.

 

 

 

 

 

 

 

500,000

 

Term Loan, 10.688%, maturing

 

 

 

 

 

 

 

 

 

May 26, 2012

 

B3

 

B

 

507,500

 

 

 

Vitaquest International, LLC

 

B2

 

B

 

 

 

2,493,750

 

Term Loan, 7.070%-8.500%, maturing

 

 

 

 

 

 

 

 

 

March 17, 2011

 

 

 

 

 

2,495,309

 

 

 

 

 

 

 

 

 

57,978,609

 

Buildings & Real Estate: 7.2%

 

 

 

 

 

 

 

 

 

Associated Materials, Inc.

 

B2

 

B

 

 

 

1,750,000

 

Term Loan, 5.830%-5.900%, maturing

 

 

 

 

 

 

 

 

 

August 29, 2010

 

 

 

 

 

1,765,312

 

 

See Accompanying Notes to Financial Statements

 

27


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Buildings & Real Estate: (continued)

 

 

 

 

 

 

 

 

 

Atrium Companies, Inc.

 

B2

 

CCC+

 

 

 

$  3,878,621

 

Term Loan, 6.250%-6.360%, maturing

 

 

 

 

 

 

 

 

 

December 28, 2011

 

 

 

 

 

$

3,870,542

 

 

 

Builders Firstsource, Inc.

 

B1

 

BB-

 

 

 

1,555,556

 

Term Loan, 5.823%-6.190%, maturing

 

 

 

 

 

 

 

 

 

August 11, 2011

 

 

 

 

 

1,572,407

 

 

 

Building Materials Holding Corporation

 

B2

 

BB

 

 

 

2,940,000

 

Term Loan, 5.000%, maturing June 30, 2010

 

 

 

 

 

2,962,050

 

 

 

Contech Construction Products, Inc.

 

Ba3

 

BB-

 

 

 

2,912,420

 

Term Loan, 5.840%-6.080%, maturing

 

 

 

 

 

 

 

 

 

December 07, 2010

 

 

 

 

 

2,961,567

 

 

 

Crescent Real Estate Equities, L.P.

 

B1

 

BB-

 

 

 

3,995,697

 

Term Loan, 5.760%, maturing

 

 

 

 

 

 

 

 

 

January 12, 2006

 

 

 

 

 

4,034,407

 

 

 

Custom Building Products, Inc.

 

B1

 

B+

 

 

 

5,239,375

 

Term Loan, 5.740%, maturing

 

 

 

 

 

 

 

 

 

October 31, 2011

 

 

 

 

 

5,281,945

 

 

 

DMB Newco, LLC

 

NR

 

NR

 

 

 

1,424,283

 

Term Loan, 6.050%-6.060%, maturing

 

 

 

 

 

 

 

 

 

February 28, 2009

 

 

 

 

 

1,427,844

 

 

 

Euramax International, Inc.

 

B2

 

B+

 

 

 

1,333,333

 

Term Loan, 6.125%, maturing June 29, 2012

 

 

 

 

 

1,343,610

 

 

 

General Growth Properties, Inc.

 

Ba2

 

BB+

 

 

 

31,307,628

 

Term Loan, 5.760%, maturing

 

 

 

 

 

 

 

 

 

November 12, 2007

 

 

 

 

 

31,560,688

 

15,924,199

 

Term Loan, 5.670%, maturing

 

 

 

 

 

 

 

 

 

November 12, 2008

 

 

 

 

 

16,130,544

 

 

 

Headwaters, Inc.

 

B1

 

B+

 

 

 

5,983,003

 

Term Loan, 5.870%-7.750% maturing

 

 

 

 

 

 

 

 

 

April 30, 2011

 

 

 

 

 

6,067,764

 

 

 

Macerich Partnership, L.P.

 

NR

 

BB+

 

 

 

3,500,000

 

Term Loan, 5.240%, maturing April 25, 2006

 

 

 

 

 

3,504,375

 

2,500,000

 

Term Loan, 5.169%, maturing April 25, 2010

 

 

 

 

 

2,509,375

 

 

 

Maguire Properties, Inc.

 

Ba2

 

BB

 

 

 

3,688,889

 

Term Loan, 5.300%, maturing

 

 

 

 

 

 

 

 

 

March 15, 2010

 

 

 

 

 

3,737,306

 

 

 

Masonite International Corporation

 

B2

 

BB-

 

 

 

7,474,883

 

Term Loan, 5.490%-5.660%, maturing

 

 

 

 

 

 

 

 

 

April 16, 2013

 

 

 

 

 

7,502,914

 

7,487,617

 

Term Loan, 5.490%-5.660%, maturing

 

 

 

 

 

 

 

 

 

April 16, 2013

 

 

 

 

 

7,515,696

 

 

 

NCI Building Systems, Inc.

 

Ba2

 

BB

 

 

 

3,667,000

 

Term Loan, 5.420%-5.670%, maturing

 

 

 

 

 

 

 

 

 

September 15, 2008

 

 

 

 

 

3,710,546

 

 

 

Newkirk Master, L.P.

 

Ba2

 

BB+

 

 

 

1,911,038

 

Term Loan, 5.571%, maturing

 

 

 

 

 

 

 

 

 

August 11, 2008

 

 

 

 

 

1,943,287

 

 

See Accompanying Notes to Financial Statements

 

28


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Buildings & Real Estate: (continued)

 

 

 

 

 

 

 

$ 1,088,962

 

Term Loan, 5.571%, maturing

 

 

 

 

 

 

 

 

 

August 11, 2008

 

 

 

 

 

$

1,107,338

 

 

 

Nortek, Inc.

 

B2

 

B

 

 

 

10,891,365

 

Term Loan, 5.910%-7.750%, maturing

 

 

 

 

 

 

 

 

 

August 27, 2011

 

 

 

 

 

11,036,579

 

 

 

PGT Industries, Inc.

 

B1

 

B

 

 

 

2,272,046

 

Term Loan, 6.580%-6.760%, maturing

 

 

 

 

 

 

 

 

 

January 29, 2010

 

 

 

 

 

2,311,807

 

 

 

Pivotal Promontory, LLC

 

B1

 

B+

 

 

 

2,250,000

 (4)

Term Loan, maturing

 

 

 

 

 

 

 

 

 

August 18, 2010

 

 

 

 

 

2,272,500

 

 

 

Ply Gem Industries, Inc.

 

B1

 

B+

 

 

 

677,535

 

Term Loan, 5.990%-6.160%, maturing

 

 

 

 

 

 

 

 

 

March 15, 2010

 

 

 

 

 

682,616

 

1,498,134

 

Term Loan, 5.600%, maturing

 

 

 

 

 

 

 

 

 

February 12, 2011

 

 

 

 

 

1,509,370

 

4,610,819

 

Term Loan, 5.990%-6.160%, maturing

 

 

 

 

 

 

 

 

 

October 01, 2011

 

 

 

 

 

4,645,400

 

 

 

Spanish Peaks, LLC

 

B1

 

B+

 

 

 

900,000

 (4)

Term Loan, maturing August 9, 2011

 

 

 

 

 

911,250

 

1,400,000

 (4)

Term Loan, maturing August 9, 2011

 

 

 

 

 

1,417,500

 

 

 

St. Marys Cement, Inc.

 

B1

 

BB-

 

 

 

5,424,925

 

Term Loan, 5.490%, maturing

 

 

 

 

 

 

 

 

 

December 04, 2009

 

 

 

 

 

5,496,127

 

 

 

Trustreet Properties, Inc.

 

Ba3

 

BB

 

 

 

5,000,000

 

Term Loan, 5.510%, maturing

 

 

 

 

 

 

 

 

 

March 31, 2010

 

 

 

 

 

5,046,875

 

 

 

Werner Holdings Company, Inc.

 

B3

 

B-

 

 

 

500,000

 

Term Loan, 7.480%-7.570%, maturing

 

 

 

 

 

 

 

 

 

June 11, 2009

 

 

 

 

 

498,333

 

 

 

 

 

 

 

 

 

146,337,874

 

Cargo Transport: 1.1%

 

 

 

 

 

 

 

 

 

Atlantic Express Transportation Corporation

 

Caa2

 

CCC+

 

 

 

2,000,000

 

Floating Rate Note, 12.610%, maturing

 

 

 

 

 

 

 

 

 

April 15, 2008

 

 

 

 

 

1,920,000

 

 

 

Baker Tanks, Inc.

 

B2

 

B

 

 

 

5,315,008

 

Term Loan, 5.960%-6.430%, maturing

 

 

 

 

 

 

 

 

 

January 30, 2011

 

 

 

 

 

5,381,446

 

 

 

Helm Holding Corporation

 

B2

 

B+

 

 

 

1,000,000

 

Term Loan, 6.160%-6.247%, maturing

 

 

 

 

 

 

 

 

 

July 08, 2011

 

 

 

 

 

1,018,333

 

 

 

Horizon Lines, LLC

 

B2

 

B

 

 

 

2,475,000

 

Term Loan, 5.990%, maturing July 07, 2011

 

 

 

 

 

2,513,157

 

 

 

Kansas City Southern Railway Company

 

B1

 

BB+

 

 

 

1,502,450

 

Term Loan, 5.080%-5.240%, maturing

 

 

 

 

 

 

 

 

 

March 30, 2008

 

 

 

 

 

1,525,769

 

 

See Accompanying Notes to Financial Statements

 

29


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Cargo Transport: (continued)

 

 

 

 

 

 

 

 

 

Neoplan USA Corporation

 

NR

 

NR

 

 

 

$   500,290

 

Term Loan, 8.838%, maturing June 30, 2006

 

 

 

 

 

$

500,290

 

 

 

Pacer International, Inc.

 

B1

 

BB

 

 

 

1,633,334

 

Term Loan, 5.375%-7.500%, maturing

 

 

 

 

 

 

 

 

 

June 10, 2010

 

 

 

 

 

1,655,792

 

 

 

Railamerica, Inc.

 

Ba3

 

BB

 

 

 

392,418

 

Term Loan, 5.875%, maturing

 

 

 

 

 

 

 

 

 

September 29, 2011

 

 

 

 

 

399,612

 

3,319,642

 

Term Loan, 5.875%, maturing

 

 

 

 

 

 

 

 

 

September 29, 2011

 

 

 

 

 

3,380,501

 

 

 

Sirva Worldwide, Inc.

 

B2

 

B+

 

 

 

702,353

 

Term Loan, 6.020%-6.560%, maturing

 

 

 

 

 

 

 

 

 

December 01, 2010

 

 

 

 

 

675,430

 

 

 

Transport Industries, L.P.

 

B2

 

B+

 

 

 

2,479,234

 

Term Loan, 7.500%, maturing June 13, 2010

 

 

 

 

 

2,488,531

 

 

 

United States Shipping, LLC

 

Ba3

 

BB-

 

 

 

1,901,442

 

Term Loan, 5.490%, maturing April 30, 2010

 

 

 

 

 

1,921,052

 

 

 

 

 

 

 

 

 

23,379,913

 

Cellular: 2.9%

 

 

 

 

 

 

 

 

 

 

 

Cellular South, Inc.

 

Ba3

 

B+

 

 

 

4,096,125

 

Term Loan, 5.241%-7.000%, maturing

 

 

 

 

 

 

 

 

 

May 04, 2011

 

 

 

 

 

4,134,526

 

 

 

Centennial Cellular Operating Company

 

B1

 

B-

 

 

 

16,742,519

 

Term Loan, 5.630%-6.110%, maturing

 

 

 

 

 

 

 

 

 

February 09, 2011

 

 

 

 

 

17,029,536

 

 

 

Cricket Communications, Inc.

 

B1

 

B-

 

 

 

11,442,500

 

Term Loan, 5.990%, maturing

 

 

 

 

 

 

 

 

 

January 10, 2011

 

 

 

 

 

11,595,543

 

 

(2)

IWO Escrow Company

 

B3

 

CCC+

 

 

 

3,175,000

 

Floating Rate Note, 7.349%, maturing

 

 

 

 

 

 

 

 

 

January 15, 2012

 

 

 

 

 

3,333,750

 

 

 

Nextel Partners Operating Corporation

 

Ba2

 

BBB-

 

 

 

6,500,000

 

Term Loan, 4.830%, maturing May 31, 2012

 

 

 

 

 

6,563,375

 

 

 

Ntelos, Inc.

 

 

 

 

 

 

 

4,477,500

 

Term Loan, 6.170%, maturing

 

 

 

 

 

 

 

 

 

August 25, 2011

 

B2

 

B

 

4,522,835

 

 

 

Ntelos, Inc.

 

 

 

 

 

 

 

1,000,000

 

Term Loan, 8.670%, maturing

 

 

 

 

 

 

 

 

 

February 25, 2012

 

B3

 

CCC+

 

1,002,500

 

 

 

Rogers Wireless, Inc.

 

Ba3

 

BB

 

 

 

2,500,000

 

Floating Rate Note, 6.535%, maturing

 

 

 

 

 

 

 

 

 

December 15, 2010

 

 

 

 

 

2,606,250

 

 

 

Rural Cellular Corporation

 

B2

 

B-

 

 

 

1,500,000

 

Floating Rate Note, 7.910%, maturing

 

 

 

 

 

 

 

 

 

March 15, 2010

 

 

 

 

 

1,552,500

 

 

 

Triton PCS, Inc.

 

B2

 

B-

 

 

 

4,482,500

 

Term Loan, 6.920%, maturing

 

 

 

 

 

 

 

 

 

November 18, 2009

 

 

 

 

 

4,521,722

 

 

See Accompanying Notes to Financial Statements

 

30


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Cellular: (continued)

 

 

 

 

 

 

 

 

 

US Unwired, Inc.

 

B2

 

CCC+

 

 

 

$  1,750,000

 

Floating Rate Note, 7.660%, maturing

 

 

 

 

 

 

 

 

 

June 15, 2010

 

 

 

 

 

$

1,820,000

 

 

 

 

 

 

 

 

 

58,682,537

 

Chemicals, Plastics & Rubber: 6.9%

 

 

 

 

 

 

 

 

 

Brenntag AG

 

B1

 

BB-

 

 

 

3,000,000

 

Term Loan, 6.810%, maturing

 

 

 

 

 

 

 

 

 

February 27, 2012

 

 

 

 

 

3,038,001

 

 

 

Celanese AG

 

B1

 

B+

 

 

 

6,500,000

 

Term Loan, 3.559%, maturing

 

 

 

 

 

 

 

 

 

April 06, 2009

 

 

 

 

 

6,620,861

 

14,185,593

 

Term Loan, 5.740%, maturing April 06, 2011

 

 

 

 

 

14,460,439

 

 

 

Hawkeye Renewables, LLC

 

B2

 

B

 

 

 

5,500,000

 

Term Loan, 6.925%, maturing

 

 

 

 

 

 

 

 

 

January 31, 2012

 

 

 

 

 

5,438,125

 

6,472,863

 

Term Loan, 5.240%-5.310%, maturing

 

Ba1

 

BB

 

 

 

 

 

October 08, 2010

 

 

 

 

 

6,566,720

 

 

 

Hexion Specialty Chemicals, Inc.

 

B1

 

BB-

 

 

 

545,455

 

Term Loan, 6.188%, maturing May 31, 2012

 

 

 

 

 

554,318

 

2,290,909

 

Term Loan, 6.375%, maturing May 31, 2012

 

 

 

 

 

2,328,136

 

3,163,636

 

Term Loan, 6.375%, maturing May 31, 2012

 

 

 

 

 

3,215,045

 

 

 

Huntsman International, LLC

 

Ba3

 

BB-

 

 

 

23,000,000

 

Term Loan, 5.323%, maturing

 

 

 

 

 

 

 

 

 

August 16, 2012

 

 

 

 

 

23,337,824

 

 

 

Ineos Group Holdings PLC

 

Ba2

 

BB+

 

 

 

4,143,499

 

Term Loan, 7.261%, maturing April 26, 2009

 

 

 

 

 

4,165,770

 

 

 

Innophos, Inc.

 

B2

 

B

 

 

 

3,330,216

 

Term Loan, 5.550%-5.970%, maturing

 

 

 

 

 

 

 

 

 

August 13, 2010

 

 

 

 

 

3,369,070

 

 

 

Invista B.V.

 

Ba3

 

BB

 

 

 

10,429,676

 

Term Loan, 5.750%, maturing April 29, 2011

 

 

 

 

 

10,605,677

 

4,525,088

 

Term Loan, 5.750%, maturing April 29, 2011

 

 

 

 

 

4,601,449

 

 

 

JohnsonDiversey, Inc.

 

B1

 

BB-

 

 

 

2,333,018

 

Term Loan, 5.460%, maturing

 

 

 

 

 

 

 

 

 

November 03, 2009

 

 

 

 

 

2,359,265

 

5,583,271

 

Term Loan, 5.284%-5.460%, maturing

 

 

 

 

 

 

 

 

 

November 03, 2009

 

 

 

 

 

5,653,933

 

 

 

Kraton Polymers, LLC

 

B1

 

B+

 

 

 

2,185,694

 

Term Loan, 6.125%-6.500%, maturing

 

 

 

 

 

 

 

 

 

December 23, 2010

 

 

 

 

 

2,223,262

 

 

 

Nalco Company

 

B1

 

BB-

 

 

 

8,387,880

 

Term Loan, 5.450%-5.870%, maturing

 

 

 

 

 

 

 

 

 

November 04, 2010

 

 

 

 

 

8,532,705

 

 

 

Polypore, Inc.

 

B1

 

B

 

 

 

6,415,000

 

Term Loan, 5.920%, maturing

 

 

 

 

 

 

 

 

 

November 12, 2011

 

 

 

 

 

6,452,419

 

 

See Accompanying Notes to Financial Statements

 

31


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Chemicals, Plastics & Rubber: (continued)

 

 

 

 

 

 

 

 

 

PQ Corporation

 

B1

 

B+

 

 

 

$  2,493,750

 

Term Loan, 5.500%, maturing

 

 

 

 

 

 

 

 

 

February 11, 2012

 

 

 

 

 

$

2,526,480

 

 

 

Rockwood Specialties Group, Inc.

 

B1

 

B+

 

 

 

18,531,875

 

Term Loan, 5.930%, maturing July 30, 2012

 

 

 

 

 

18,875,493

 

 

 

Supresta, LLC

 

B1

 

B+

 

 

 

5,692,500

 

Term Loan, 6.490%, maturing July 30, 2012

 

 

 

 

 

5,792,119

 

 

 

Westlake Chemical Corporation

 

Ba1

 

BB+

 

 

 

293,714

 

Term Loan, 5.919%-7.750%, maturing

 

 

 

 

 

 

 

 

 

July 30, 2010

 

 

 

 

 

296,651

 

 

 

 

 

 

 

 

 

141,013,762

 

Containers, Packaging & Glass: 4.8%

 

 

 

 

 

 

 

 

 

Appleton Papers, Inc.

 

Ba3

 

BB

 

 

 

2,390,000

 

Term Loan, 5.500%-5.730%, maturing

 

 

 

 

 

 

 

 

 

June 11, 2010

 

 

 

 

 

2,418,381

 

 

 

Berry Plastics Corporation

 

B1

 

B+

 

 

 

1,688,180

 

Term Loan, 5.600%-5.766%, maturing

 

 

 

 

 

 

 

 

 

July 22, 2010

 

 

 

 

 

1,716,879

 

4,311,820

 

Term Loan, 5.600%-5.766%, maturing

 

 

 

 

 

 

 

 

 

December 02, 2011

 

 

 

 

 

4,385,121

 

 

 

Boise Cascade Corporation

 

Ba3

 

BB

 

 

 

9,588,586

 

Term Loan, 5.250%-5.438%, maturing

 

 

 

 

 

 

 

 

 

October 29, 2011

 

 

 

 

 

9,745,005

 

 

 

BWAY Corporation

 

B1

 

B+

 

 

 

1,302,000

 

Term Loan, 5.875%-6.000%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2011

 

 

 

 

 

1,322,547

 

 

 

Graham Packaging Company, L.P.

 

B2

 

B

 

 

 

17,417,500

 

Term Loan, 5.938%-6.063%, maturing

 

 

 

 

 

 

 

 

 

October 07, 2011

 

 

 

 

 

17,718,683

 

 

 

Graphic Packaging International, Inc.

 

B1

 

B+

 

 

 

18,660,621

 

Term Loan, 5.880%-6.190%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2010

 

 

 

 

 

18,987,182

 

 

 

Intertape Polymer Group, Inc.

 

Ba3

 

B+

 

 

 

2,729,375

 

Term Loan, 5.650%-5.742%, maturing

 

 

 

 

 

 

 

 

 

July 28, 2011

 

 

 

 

 

2,781,689

 

 

 

Koch Cellulose, LLC

 

Ba3

 

BB

 

 

 

1,201,378

 

Term Loan, 5.240%, maturing May 07, 2011

 

 

 

 

 

1,217,647

 

 

 

Owens-Illinois Group, Inc.

 

B1

 

BB-

 

 

 

1,443,491

 

Term Loan, 5.330%, maturing April 01, 2007

 

 

 

 

 

1,456,121

 

3,450,711

 

Term Loan, 5.370%, maturing April 01, 2008

 

 

 

 

 

3,488,093

 

 

 

Pro Mach, Inc.

 

 

 

 

 

 

 

2,487,500

 

Term Loan, 6.350%, maturing

 

B1

 

B

 

 

 

 

 

December 01, 2011

 

 

 

 

 

2,524,813

 

 

 

Smurfit-Stone Container Corporation

 

Ba3

 

BB-

 

 

 

10,416,519

 

Term Loan, 5.375%-5.563%, maturing

 

 

 

 

 

 

 

 

 

November 01, 2011

 

 

 

 

 

10,570,600

 

3,205,082

 

Term Loan, 5.375%-5.563%, maturing

 

 

 

 

 

 

 

 

 

November 01, 2011

 

 

 

 

 

3,252,492

 

 

See Accompanying Notes to Financial Statements

 

32


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Containers, Packaging & Glass: (continued)

 

 

 

 

 

 

 

 

 

Solo Cup, Inc.

 

B1

 

B+

 

 

 

$  9,851,247

 

Term Loan, 5.490%-5.860%, maturing

 

 

 

 

 

 

 

 

 

February 27, 2011

 

 

 

 

 

$

9,968,230

 

 

 

U.S. Can Company

 

B3

 

B

 

 

 

4,453,675

 

Term Loan, 7.320%-7.650%, maturing

 

 

 

 

 

 

 

 

 

January 15, 2010

 

 

 

 

 

4,475,943

 

 

 

Xerium Technologies, Inc.

 

B1

 

BB-

 

 

 

2,500,000

 

Term Loan, 5.490%, maturing May 18, 2012

 

 

 

 

 

2,536,720

 

 

 

 

 

 

 

 

 

98,566,146

 

Data and Internet Services: 2.1%

 

 

 

 

 

 

 

 

 

Clientlogic Corporation

 

B3

 

B

 

 

 

997,500

 

Term Loan, 7.750%-8.063%, maturing

 

 

 

 

 

 

 

 

 

February 28, 2012

 

 

 

 

 

998,435

 

 

 

Sungard Data Systems, Inc.

 

B1

 

B+

 

 

 

32,000,000

 

Term Loan, 6.280%, maturing

 

 

 

 

 

 

 

 

 

February 11, 2013

 

 

 

 

 

32,476,000

 

 

 

Transaction Network Services, Inc.

 

Ba3

 

BB-

 

 

 

3,493,750

 

Term Loan, 5.410%-7.410%, maturing

 

 

 

 

 

 

 

 

 

May 04, 2012

 

 

 

 

 

3,537,422

 

 

 

Worldspan, L.P.

 

B2

 

B

 

 

 

6,608,562

 

Term Loan, 6.313%-6.625%, maturing

 

 

 

 

 

 

 

 

 

February 16, 2010

 

 

 

 

 

6,558,998

 

 

 

 

 

 

 

 

 

43,570,855

 

Diversified / Conglomerate Manufacturing: 2.2%

 

 

 

 

 

 

 

 

 

Axia, Inc.

 

 

 

 

 

 

 

1,753,133

 

Term Loan, 7.570%-7.670%, maturing

 

B2

 

B

 

 

 

 

 

November 30, 2010

 

 

 

 

 

1,780,526

 

 

 

Brand Services, Inc.

 

B2

 

B

 

 

 

785,318

 

Term Loan, 6.309%-6.670%, maturing

 

 

 

 

 

 

 

 

 

January 15, 2012

 

 

 

 

 

797,588

 

 

 

Cinram International, Inc.

 

Ba3

 

BB

 

 

 

6,253,006

 

Term Loan, 5.580%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2009

 

 

 

 

 

6,321,790

 

 

 

Dresser Rand, Inc.

 

B1

 

B+

 

 

 

1,370,572

 

Term Loan, 5.438%-5.490%, maturing

 

 

 

 

 

 

 

 

 

October 01, 2010

 

 

 

 

 

1,395,842

 

 

 

Dresser, Inc.

 

Ba3

 

B+

 

 

 

3,294,543

 

Term Loan, 5.990%, maturing

 

 

 

 

 

 

 

 

 

April 10, 2009

 

 

 

 

 

3,330,233

 

 

 

Flowserve Corporation

 

Ba3

 

BB-

 

 

 

4,000,000

 

Term Loan, 5.375%-5.813%, maturing

 

 

 

 

 

 

 

 

 

August 10, 2012

 

 

 

 

 

4,056,500

 

 

 

Gentek, Inc.

 

B2

 

B+

 

 

 

2,461,835

 

Term Loan, 6.010%-6.540%, maturing

 

 

 

 

 

 

 

 

 

February 25, 2011

 

 

 

 

 

2,485,530

 

 

 

Goodman Global Holdings, Inc.

 

B2

 

B+

 

 

 

2,985,000

 

Term Loan, 5.875%, maturing

 

 

 

 

 

 

 

 

 

December 23, 2011

 

 

 

 

 

3,030,709

 

 

See Accompanying Notes to Financial Statements

 

33


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Diversified / Conglomerate Manufacturing: (continued)

 

 

 

 

 

 

 

 

 

Mueller Group, Inc.

 

B2

 

B+

 

 

 

$  8,423,667

 

Term Loan, 6.240%-6.610%, maturing

 

 

 

 

 

 

 

 

 

April 23, 2011

 

 

 

 

 

$

8,497,374

 

 

 

Norcross Safety Products, LLC

 

B1

 

BB-

 

 

 

2,940,103

 

Term Loan, 5.951%-7.500%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2012

 

 

 

 

 

2,958,478

 

 

 

RLC Industries Company

 

Ba3

 

BBB-

 

 

 

1,352,621

 

Term Loan, 4.990%, maturing

 

 

 

 

 

 

 

 

 

February 26, 2009

 

 

 

 

 

1,361,920

 

 

 

Sensus Metering Systems, Inc.

 

B2

 

B+

 

 

 

1,695,652

 

Term Loan, 6.230%-6.540%, maturing

 

 

 

 

 

 

 

 

 

December 17, 2010

 

 

 

 

 

1,716,141

 

254,348

 

Term Loan, 6.230%-6.540%, maturing

 

 

 

 

 

 

 

 

 

December 17, 2010

 

 

 

 

 

257,421

 

 

 

Trimas Corporation

 

B1

 

B

 

 

 

857,122

 

Term Loan, 6.900%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2009

 

 

 

 

 

866,407

 

 

 

Universal Compression, Inc.

 

Ba2

 

BB

 

 

 

6,982,500

 

Term Loan, 5.240%, maturing

 

 

 

 

 

 

 

 

 

February 15, 2012

 

 

 

 

 

7,078,509

 

 

 

 

 

 

 

 

 

45,934,968

 

Diversified / Conglomerate Service: 2.0%

 

 

 

 

 

 

 

 

 

Fidelity National Information Solutions, Inc.

 

Ba3

 

BB

 

 

 

26,090,650

 

Term Loan, 5.321%, maturing

 

 

 

 

 

 

 

 

 

March 09, 2013

 

 

 

 

 

26,155,877

 

 

 

Geo Group, Inc.

 

Ba3

 

BB-

 

 

 

1,297,203

 (4)

Term Loan, maturing September 14, 2011

 

 

 

 

 

1,313,418

 

 

 

Iron Mountain, Inc.

 

B2

 

BB-

 

 

 

5,955,000

 

Term Loan, 5.344%, maturing April 02, 2011

 

 

 

 

 

6,012,692

 

5,266,667

 

Term Loan, 5.625%, maturing April 02, 2011

 

 

 

 

 

5,325,095

 

 

 

Relizon Company

 

B1

 

BB-

 

 

 

1,300,533

 

Term Loan, 6.820%, maturing

 

 

 

 

 

 

 

 

 

February 20, 2011

 

 

 

 

 

1,306,223

 

 

 

 

 

 

 

 

 

40,113,305

 

Ecological: 1.6%

 

 

 

 

 

 

 

 

 

 

 

Allied Waste North America, Inc.

 

B1

 

BB

 

 

 

14,756,414

 

Term Loan, 5.370%-5.670%, maturing

 

 

 

 

 

 

 

 

 

January 15, 2012

 

 

 

 

 

14,905,660

 

5,948,934

 

Term Loan, 5.100%, maturing

 

 

 

 

 

 

 

 

 

January 15, 2012

 

 

 

 

 

6,009,661

 

 

 

Envirosolutions, Inc.

 

B2

 

B-

 

 

 

2,750,000

 

Term Loan, 9.000%, maturing July 07, 2012

 

 

 

 

 

2,789,531

 

 

 

Great Lakes Dredge & Dock Corporation

 

B3

 

CCC+

 

 

 

2,292,703

 

Term Loan, 7.100%-7.900%, maturing

 

 

 

 

 

 

 

 

 

December 22, 2010

 

 

 

 

 

2,307,033

 

 

 

IESI Corporation

 

B1

 

BB

 

 

 

1,800,000

 

Term Loan, 5.620%-5.820%, maturing

 

 

 

 

 

 

 

 

 

January 14, 2012

 

 

 

 

 

1,828,125

 

 

See Accompanying Notes to Financial Statements

 

34


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Ecological: (continued)

 

 

 

 

 

 

 

 

 

Wastequip, Inc.

 

 

 

 

 

 

 

$   750,000

 

Term Loan, 6.170%, maturing July 15, 2011

 

B2

 

B+

 

$

761,250

 

 

 

Wastequip, Inc.

 

 

 

 

 

 

 

500,000

 

Term Loan, 9.670%, maturing July 15, 2012

 

B3

 

B-

 

507,500

 

 

 

WCA Waste Systems, Inc.

 

B3

 

B

 

 

 

3,491,250

 

Term Loan, 6.550%, maturing April 28, 2011

 

 

 

 

 

3,495,614

 

 

 

 

 

 

 

 

 

32,604,374

 

Electronics: 0.7%

 

 

 

 

 

 

 

 

 

 

 

Decision One Corporation

 

NR

 

NR

 

 

 

434,054

 (3)

Term Loan, 12.000%, maturing

 

 

 

 

 

 

 

 

 

April 15, 2010

 

 

 

 

 

434,054

 

 

 

Invensys International Holdings, Ltd.

 

Ba3

 

B+

 

 

 

823,868

 

Term Loan, 6.881%, maturing

 

 

 

 

 

 

 

 

 

September 05, 2009

 

 

 

 

 

835,197

 

 

 

Knowles Electronics, Inc.

 

B3

 

B-

 

 

 

3,343,710

 

Term Loan, 8.400%, maturing June 29, 2007

 

 

 

 

 

3,410,584

 

 

 

ON Semiconductor Corporation

 

B3

 

B+

 

 

 

6,477,475

 

Term Loan, 6.500%, maturing

 

 

 

 

 

 

 

 

 

December 15, 2011

 

 

 

 

 

6,570,589

 

 

 

Seagate Technology Holdings, Inc.

 

Ba1

 

BB+

 

 

 

1,940,000

 

Term Loan, 5.688%, maturing May 13, 2007

 

 

 

 

 

1,973,546

 

 

 

SI International, Inc.

 

B1

 

B+

 

 

 

1,745,625

 

Term Loan, 5.780%-5.990%, maturing

 

 

 

 

 

 

 

 

 

February 09, 2011

 

 

 

 

 

1,776,173

 

 

 

 

 

 

 

 

 

15,000,143

 

Farming & Agriculture: 0.4%

 

 

 

 

 

 

 

 

 

AGCO Corporation

 

Ba1

 

BB+

 

 

 

4,565,833

 

Term Loan, 5.420%, maturing

 

 

 

 

 

 

 

 

 

March 31, 2008

 

 

 

 

 

4,630,043

 

 

 

Butler Animal Health Supply, LLC

 

B2

 

B

 

 

 

1,000,000

 

Term Loan, 6.266%-6.460%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2011

 

 

 

 

 

1,011,250

 

 

 

Vicar Operating, Inc.

 

Ba3

 

BB-

 

 

 

2,771,447

 

Term Loan, 5.188%, maturing May 16, 2011

 

 

 

 

 

2,804,358

 

 

 

 

 

 

 

 

 

8,445,651

 

Finance: 0.3%

 

 

 

 

 

 

 

 

 

 

 

Refco Finance Holdings, LLC

 

B1

 

BB-

 

 

 

3,018,692

 

Term Loan, 5.669%, maturing

 

 

 

 

 

 

 

 

 

August 05, 2011

 

 

 

 

 

3,056,048

 

 

 

Rent-A-Center, Inc.

 

Ba2

 

BB+

 

 

 

3,960,000

 

Term Loan, 5.170%-5.380%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2010

 

 

 

 

 

4,006,035

 

 

 

 

 

 

 

 

 

7,062,083

 

Foreign Cable, Foreign TV, Radio and Equipment: 0.4%

 

 

 

 

 

 

 

 

 

NTL Investment Holding, Ltd.

 

B1

 

BB-

 

 

 

4,600,000

 

Term Loan, 6.410%, maturing May 19, 2012

 

 

 

 

 

4,639,482

 

 

See Accompanying Notes to Financial Statements

 

35


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Foreign Cable, Foreign TV, Radio and Equipment: (continued)

 

 

 

 

 

 

 

 

 

Telewest Communications, PLC

 

B1

 

BB

 

 

 

$  1,700,000

 

Term Loan, 5.850%, maturing

 

 

 

 

 

 

 

 

 

December 22, 2012

 

 

 

 

 

$

1,712,750

 

1,300,000

 

Term Loan, 6.350%, maturing

 

 

 

 

 

 

 

 

 

December 22, 2013

 

 

 

 

 

1,306,211

 

 

 

 

 

 

 

 

 

7,658,443

 

Gaming: 2.9%

 

 

 

 

 

 

 

 

 

 

 

Ameristar Casinos, Inc.

 

Ba3

 

BB

 

 

 

2,317,002

 

Term Loan, 5.500%, maturing

 

 

 

 

 

 

 

 

 

December 20, 2006

 

 

 

 

 

2,328,587

 

1,457,170

 

Term Loan, 5.500%, maturing

 

 

 

 

 

 

 

 

 

December 20, 2006

 

 

 

 

 

1,464,455

 

 

 

Argosy Gaming Company

 

Ba2

 

BB

 

 

 

1,985,000

 

Term Loan, 7.000%, maturing July 31, 2008

 

 

 

 

 

1,991,616

 

 

 

Boyd Gaming Corporation

 

Ba2

 

BB

 

 

 

4,950,000

 

Term Loan, 4.880%-4.990%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2011

 

 

 

 

 

5,007,237

 

 

 

CCM Merger, Inc.

 

B1

 

B+

 

 

 

4,000,000

 

Term Loan, 5.641%-5.841%, maturing

 

 

 

 

 

 

 

 

 

April 25, 2012

 

 

 

 

 

4,051,668

 

 

 

Global Cash Access, LLC

 

B2

 

B+

 

 

 

2,411,121

 

Term Loan, 5.740%, maturing

 

 

 

 

 

 

 

 

 

March 10, 2010

 

 

 

 

 

2,449,549

 

 

 

Green Valley Ranch Gaming, LLC

 

NR

 

NR

 

 

 

987,537

 

Term Loan, 5.490%, maturing

 

 

 

 

 

 

 

 

 

December 17, 2011

 

 

 

 

 

1,000,499

 

 

 

Herbst Gaming, Inc.

 

B3

 

B+

 

 

 

2,992,500

 

Term Loan, 5.380%-5.490%, maturing

 

 

 

 

 

 

 

 

 

January 31, 2011

 

 

 

 

 

3,038,324

 

 

 

Isle of Capri Casinos, Inc.

 

Ba2

 

BB-

 

 

 

1,000,000

 

Term Loan, 3.740%, maturing

 

 

 

 

 

 

 

 

 

February 04, 2011

 

 

 

 

 

1,006,250

 

1,492,500

 

Term Loan, 5.100%-5.483%, maturing

 

 

 

 

 

 

 

 

 

February 04, 2011

 

 

 

 

 

1,510,691

 

 

 

Marina District Finance Company, Inc.

 

NR

 

NR

 

 

 

1,990,000

 

Term Loan, 5.130%-5.240%, maturing

 

 

 

 

 

 

 

 

 

October 20, 2011

 

 

 

 

 

2,009,070

 

 

 

Opbiz, LLC

 

B3

 

B-

 

 

 

4,988,230

 

Term Loan, 6.504%, maturing

 

 

 

 

 

 

 

 

 

August 31, 2010

 

 

 

 

 

5,011,091

 

12,116

 

Term Loan, 7.504%, maturing

 

 

 

 

 

 

 

 

 

August 31, 2010

 

 

 

 

 

12,172

 

 

 

Pinnacle Entertainment, Inc.

 

B1

 

BB-

 

 

 

980,817

 

Term Loan, 6.670%, maturing

 

 

 

 

 

 

 

 

 

August 27, 2010

 

 

 

 

 

984,495

 

500,000

 

Term Loan, 6.670%, maturing

 

 

 

 

 

 

 

 

 

August 27, 2010

 

 

 

 

 

505,938

 

 

See Accompanying Notes to Financial Statements

 

36


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Gaming: (continued)

 

 

 

 

 

 

 

 

 

Resorts International Hotel and Casino, Inc.

 

 

 

 

 

 

 

$  4,908,957

 

Term Loan, 6.200%, maturing April 26, 2012

 

B2

 

B+

 

$

4,971,546

 

 

 

Resorts International Hotel and Casino, Inc.

 

 

 

 

 

 

 

1,500,000

 

Term Loan, 9.420%, maturing April 26, 2013

 

B3

 

B-

 

1,506,095

 

 

 

Ruffin Gaming, LLC

 

NR

 

NR

 

 

 

1,500,000

 

Term Loan, 5.813%, maturing June 28, 2008

 

 

 

 

 

1,512,187

 

 

 

The Mississippi Band of Choctaw Indians

 

Ba3

 

BB

 

 

 

2,439,130

 

Term Loan, 5.630%-5.910%, maturing

 

 

 

 

 

 

 

 

 

November 14, 2011

 

 

 

 

 

2,468,095

 

 

 

Trump Entertainment Resorts Holdings, L.P.

 

B2

 

BB-

 

 

 

1,750,000

 

Term Loan, 5.930%-6.140%, maturing

 

 

 

 

 

 

 

 

 

May 20, 2012

 

 

 

 

 

1,780,625

 

 

 

Venetian Casino Resorts, LLC

 

B1

 

BB-

 

 

 

2,393,163

 

Term Loan, 5.462%, maturing June 15, 2011

 

 

 

 

 

2,423,637

 

11,606,837

 

Term Loan, 5.240%, maturing June 15, 2011

 

 

 

 

 

11,754,639

 

 

 

 

 

 

 

 

 

58,788,466

 

Grocery: 0.2%

 

 

 

 

 

 

 

 

 

 

 

Giant Eagle, Inc.

 

Ba2

 

BB+

 

 

 

982,079

 

Term Loan, 5.747%, maturing

 

 

 

 

 

 

 

 

 

August 06, 2009

 

 

 

 

 

995,582

 

3,847,035

 

Term Loan, 5.504%-5.747%, maturing

 

 

 

 

 

 

 

 

 

August 06, 2009

 

 

 

 

 

3,899,932

 

 

 

 

 

 

 

 

 

4,895,514

 

Healthcare, Education and Childcare: 10.0%

 

 

 

 

 

 

 

 

 

Accellent Corporation

 

B2

 

B+

 

 

 

1,732,500

 

Term Loan, 5.740%, maturing June 30, 2010

 

 

 

 

 

1,746,036

 

 

 

Alliance Imaging, Inc.

 

B1

 

B+

 

 

 

2,825,218

 

Term Loan, 5.750%-6.125%, maturing

 

 

 

 

 

 

 

 

 

December 29, 2011

 

 

 

 

 

2,864,652

 

 

 

AMR HoldCo, Inc./EmCare HoldCo, Inc.

 

B2

 

B+

 

 

 

4,975,000

 

Term Loan, 5.660%-6.010%, maturing

 

 

 

 

 

 

 

 

 

February 15, 2012

 

 

 

 

 

5,057,401

 

 

 

Beverly Enterprises, Inc.

 

Ba3

 

BB

 

 

 

3,436,281

 

Term Loan, 5.880%-6.390%, maturing

 

 

 

 

 

 

 

 

 

October 22, 2008

 

 

 

 

 

3,447,020

 

 

 

Colgate Medical, Ltd.

 

Ba2

 

BB-

 

 

 

2,223,252

 

Term Loan, 5.480%-5.490%, maturing

 

 

 

 

 

 

 

 

 

December 30, 2008

 

 

 

 

 

2,246,874

 

 

 

Community Health Systems, Inc.

 

Ba3

 

BB-

 

 

 

31,933,877

 

Term Loan, 5.420%-5.610%, maturing

 

 

 

 

 

 

 

 

 

August 19, 2011

 

 

 

 

 

32,416,206

 

 

 

Concentra Operating Corporation

 

B1

 

B+

 

 

 

5,011,411

 

Term Loan, 6.020%-6.230%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2010

 

 

 

 

 

5,083,450

 

 

 

Cooper Companies

 

 

 

 

 

 

 

2,000,000

 

Term Loan, 5.438%-5.500%, maturing

 

Ba3

 

BB

 

 

 

 

 

January 06, 2012

 

 

 

 

 

2,016,666

 

 

See Accompanying Notes to Financial Statements

 

37


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Healthcare, Education and Childcare: (continued)

 

 

 

 

 

 

 

 

 

CRC Health Corporation

 

B2

 

B+

 

 

 

$  1,500,000

 

Term Loan, 6.240%, maturing May 05, 2011

 

 

 

 

 

$

1,515,000

 

 

 

Davita, Inc.

 

B1

 

BB-

 

 

 

28,000,000

 (4)

Term Loan, maturing June 30, 2012

 

 

 

 

 

28,435,568

 

 

 

Encore Medical IHC, Inc.

 

B1

 

B

 

 

 

2,439,144

 

Term Loan, 6.430%-6.560%, maturing

 

 

 

 

 

 

 

 

 

October 04, 2010

 

 

 

 

 

2,475,731

 

 

 

Fisher Scientific International, Inc.

 

Ba2

 

BBB

 

 

 

3,465,000

 

Term Loan, 4.990%, maturing

 

 

 

 

 

 

 

 

 

August 02, 2011

 

 

 

 

 

3,500,371

 

 

 

Healthcare Partners, LLC

 

B1

 

BB

 

 

 

2,962,500

 

Term Loan, 5.820%, maturing

 

 

 

 

 

 

 

 

 

February 04, 2011

 

 

 

 

 

2,987,497

 

 

 

Healthsouth Corporation

 

NR

 

NR

 

 

 

3,150,000

 

Term Loan, 6.150%, maturing June 14, 2007

 

 

 

 

 

3,182,486

 

850,000

 

Term Loan, 3.062%, maturing

 

 

 

 

 

 

 

 

 

February 28, 2010

 

 

 

 

 

858,766

 

 

 

Iasis Healthcare Corporation

 

B1

 

B+

 

 

 

13,389,874

 

Term Loan, 5.766%, maturing June 30, 2011

 

 

 

 

 

13,601,488

 

 

 

Insight Health Services Corporation

 

B1

 

B

 

 

 

547,229

 

Term Loan, 7.490%, maturing

 

 

 

 

 

 

 

 

 

October 17, 2008

 

 

 

 

 

549,281

 

169,830

 

Term Loan, 7.490%, maturing

 

 

 

 

 

 

 

 

 

October 17, 2008

 

 

 

 

 

170,467

 

84,915

 

Term Loan, 7.490%, maturing

 

 

 

 

 

 

 

 

 

October 17, 2008

 

 

 

 

 

85,233

 

 

 

Kinetic Concepts, Inc.

 

Ba3

 

BB

 

 

 

3,587,886

 

Term Loan, 5.240%, maturing

 

 

 

 

 

 

 

 

 

August 11, 2010

 

 

 

 

 

3,634,977

 

 

 

Lifecare Holdings, Inc.

 

B2

 

B

 

 

 

2,666,667

 

Term Loan, 5.820%, maturing

 

 

 

 

 

 

 

 

 

August 11, 2012

 

 

 

 

 

2,680,000

 

 

 

Lifepoint Hospitals

 

Ba3

 

BB

 

 

 

23,937,500

 

Term Loan, 5.196%, maturing April 15, 2012

 

 

 

 

 

24,211,082

 

 

 

Magellan Health Services, Inc.

 

B1

 

B+

 

 

 

614,583

 

Term Loan, 5.660%-5.871%, maturing

 

 

 

 

 

 

 

 

 

August 15, 2008

 

 

 

 

 

621,497

 

 

 

MMM Holdings, Inc.

 

B2

 

B-

 

 

 

2,500,000

 (4)

Term Loan, maturing August 16, 2011

 

 

 

 

 

2,528,125

 

 

 

Mylan Laboratories, Inc.

 

Ba1

 

BBB-

 

 

 

1,000,000

 

Term Loan, 5.400%, maturing June 30, 2010

 

 

 

 

 

1,014,167

 

 

 

Pacificare Health Systems, Inc.

 

Ba2

 

BBB-

 

 

 

8,410,386

 

Term Loan, 4.938%-5.188%, maturing

 

 

 

 

 

 

 

 

 

December 13, 2010

 

 

 

 

 

8,443,674

 

 

 

Psychiatric Solutions, Inc.

 

B1

 

B+

 

 

 

1,500,000

 

Term Loan, 5.730%, maturing July 01, 2012

 

 

 

 

 

1,524,375

 

 

See Accompanying Notes to Financial Statements

 

38


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Healthcare, Education and Childcare: (continued)

 

 

 

 

 

 

 

 

 

Rural/Metro Operating Company, LLC

 

B2

 

B

 

 

 

$   519,127

 

Term Loan, 6.670%, maturing

 

 

 

 

 

 

 

 

 

March 04, 2011

 

 

 

 

 

$

526,914

 

1,505,881

 

Term Loan, 5.838%, maturing

 

 

 

 

 

 

 

 

 

March 04, 2011

 

 

 

 

 

1,528,469

 

 

 

Select Medical Corporation

 

B1

 

BB-

 

 

 

2,493,750

 

Term Loan, 5.360%-7.250%, maturing

 

 

 

 

 

 

 

 

 

February 24, 2012

 

 

 

 

 

2,505,179

 

 

 

Sterigenics International, Inc.

 

B2

 

B+

 

 

 

2,460,038

 

Term Loan, 6.410%, maturing June 14, 2011

 

 

 

 

 

2,490,788

 

 

 

Vanguard Health Systems, Inc.

 

B2

 

B

 

 

 

19,850,000

 

Term Loan, 6.740%, maturing

 

 

 

 

 

 

 

 

 

September 23, 2011

 

 

 

 

 

20,118,809

 

1,990,000

 

Term Loan, 6.440%-6.838%, maturing

 

 

 

 

 

 

 

 

 

September 23, 2011

 

 

 

 

 

2,014,875

 

 

 

VWR International, Inc.

 

B2

 

B+

 

 

 

4,473,701

 

Term Loan, 6.140%, maturing April 07, 2011

 

 

 

 

 

4,540,806

 

 

 

Warner Chilcott Corporation

 

B2

 

B

 

 

 

8,334,502

 

Term Loan, 6.359%-6.460%, maturing

 

 

 

 

 

 

 

 

 

January 18, 2012

 

 

 

 

 

8,431,241

 

3,358,397

 

Term Loan, 6.359%, maturing

 

 

 

 

 

 

 

 

 

January 18, 2012

 

 

 

 

 

3,397,378

 

1,551,485

 

Term Loan, 6.359%, maturing

 

 

 

 

 

 

 

 

 

January 18, 2012

 

 

 

 

 

1,569,493

 

 

 

 

 

 

 

 

 

204,022,042

 

Home & Office Furnishings: 1.8%

 

 

 

 

 

 

 

 

 

ACCO Brands Corporation

 

Ba3

 

BB-

 

 

 

666,667

 

Term Loan, 5.330%, maturing

 

 

 

 

 

 

 

 

 

August 17, 2012

 

 

 

 

 

676,667

 

 

 

Buhrmann U.S., Inc.

 

Ba3

 

BB-

 

 

 

9,474,300

 

Term Loan, 5.921%-6.210%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2010

 

 

 

 

 

9,657,865

 

 

 

Global Imaging Systems, Inc.

 

Ba2

 

BB-

 

 

 

2,208,224

 

Term Loan, 4.930%-5.280%, maturing

 

 

 

 

 

 

 

 

 

May 10, 2010

 

 

 

 

 

2,225,477

 

 

 

Maax Corporation

 

B2

 

B

 

 

 

2,713,149

 

Term Loan, 6.100%-6.470%, maturing

 

 

 

 

 

 

 

 

 

June 04, 2011

 

 

 

 

 

2,719,931

 

 

 

Sealy Mattress Company

 

B1

 

B+

 

 

 

11,283,18

 

Term Loan, 5.080%-5.359%, maturing

 

 

 

 

 

 

 

 

 

April 06, 2012

 

 

 

 

 

11,436,569

 

 

 

Simmons Company

 

B2

 

B+

 

 

 

8,283,755

 

Term Loan, 5.750%-7.750%, maturing

 

 

 

 

 

 

 

 

 

December 19, 2011

 

 

 

 

 

8,411,465

 

 

 

Xerox Corporation

 

Ba1

 

BB-

 

 

 

2,000,000

 

Term Loan, 5.430%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2008

 

 

 

 

 

2,018,750

 

 

 

 

 

 

 

 

 

37,146,724

 

 

See Accompanying Notes to Financial Statements

 

39


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Insurance: 0.7%

 

 

 

 

 

 

 

 

 

 

 

CCC information Services, Inc.

 

 

 

 

 

 

 

$  3,864,081

 

Term Loan, 6.420%, maturing

 

B1

 

B+

 

 

 

 

 

August 20, 2010

 

 

 

 

 

$

3,922,042

 

 

 

Conseco, Inc.

 

B2

 

BB-

 

 

 

6,117,123

 

Term Loan, 5.570%, maturing June 22, 2010

 

 

 

 

 

6,195,502

 

 

 

Mitchell International, Inc.

 

B1

 

B+

 

 

 

1,306,923

 

First Lien Term Loan, 6.240%, maturing

 

 

 

 

 

1,328,161

 

 

 

Vertafore, Inc.

 

 

 

 

 

 

 

2,400,962

 

Term Loan, 6.391%-6.580%, maturing

 

 

 

 

 

 

 

 

 

December 22, 2010

 

B2

 

B

 

2,427,972

 

 

 

Vertafore, Inc.

 

 

 

 

 

 

 

500,000

 

Term Loan, 9.510%, maturing

 

 

 

 

 

 

 

 

 

December 22, 2011

 

B3

 

NR

 

511,250

 

 

 

 

 

 

 

 

 

14,384,927

 

Leisure, Amusement, Entertainment: 4.9%

 

 

 

 

 

 

 

 

 

24 Hour Fitness Worldwide, Inc.

 

B2

 

B

 

 

 

3,250,000

 

Term Loan, 6.780%, maturing June 08, 2012

 

 

 

 

 

3,305,861

 

 

 

AMF Bowling Worldwide, Inc.

 

B2

 

B

 

 

 

872,930

 

Term Loan, 6.091%-7.053%, maturing

 

 

 

 

 

 

 

 

 

August 27, 2009

 

 

 

 

 

881,387

 

 

 

Kerasotes Theatres, Inc.

 

B1

 

B

 

 

 

7,462,500

 

Term Loan, 5.950%, maturing

 

 

 

 

 

 

 

 

 

October 31, 2011

 

 

 

 

 

7,543,341

 

 

 

Lodgenet Entertainment Corporation

 

Ba3

 

B+

 

 

 

3,519,867

 

Term Loan, 5.740%, maturing

 

 

 

 

 

 

 

 

 

August 29, 2008

 

 

 

 

 

3,558,734

 

 

 

Loews Cineplex Entertainment Corporation

 

B1

 

B

 

 

 

7,386,011

 

Term Loan, 5.800-5.970%, maturing

 

 

 

 

 

 

 

 

 

July 31, 2011

 

 

 

 

 

7,450,063

 

 

 

Metro-Goldwyn-Mayer Studios, Inc.

 

Ba3

 

B+

 

 

 

4,000,000

 

Term Loan, 5.740%, maturing April 08, 2011

 

 

 

 

 

4,047,500

 

33,500,000

 

Term Loan, 5.740%, maturing April 08, 2012

 

 

 

 

 

33,960,625

 

 

 

Pure Fishing, Inc.

 

B1

 

B+

 

 

 

2,733,259

 

Term Loan, 6.480%-6.770%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2010

 

 

 

 

 

2,779,382

 

 

 

Regal Cinemas, Inc.

 

Ba3

 

BB-

 

 

 

9,642,393

 

Term Loan, 5.240%-5.490%, maturing

 

 

 

 

 

 

 

 

 

November 10, 2010

 

 

 

 

 

9,762,923

 

 

 

Riddell Bell Holding, Inc.

 

B1

 

BB-

 

 

 

1,488,750

 

Term Loan, 6.160%, maturing

 

 

 

 

 

 

 

 

 

September 28, 2011

 

 

 

 

 

1,514,493

 

 

 

Six Flags Theme Parks, Inc.

 

B1

 

B-

 

 

 

4,240,431

 

Term Loan, 6.280%-6.500%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2009

 

 

 

 

 

4,290,345

 

 

 

Universal City Development Partners, L.P.

 

Ba3

 

BB-

 

 

 

4,975,000

 

Term Loan, 5.490%-5.810%, maturing

 

 

 

 

 

 

 

 

 

June 09, 2011

 

 

 

 

 

5,051,700

 

 

See Accompanying Notes to Financial Statements

 

40


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Leisure, Amusement, Entertainment: (continued)

 

 

 

 

 

 

 

 

 

WMG Acquisition Corporation

 

B1

 

B+

 

 

 

$  16,403,751

 

Term Loan, 5.520%-5.860%, maturing

 

 

 

 

 

 

 

 

 

February 28, 2011

 

 

 

 

 

$

16,597,085

 

 

 

 

 

 

 

 

 

100,743,439

 

Lodging: 0.4%

 

 

 

 

 

 

 

 

 

 

 

CNL Hotel Del Senior Mezz Partners, L.P.

 

NR

 

NR

 

 

 

7,500,000

 

Term Loan, 5.640%, maturing

 

 

 

 

 

 

 

 

 

February 09, 2008

 

 

 

 

 

7,518,750

 

 

 

 

 

 

 

 

 

7,518,750

 

Machinery: 1.8%

 

 

 

 

 

 

 

 

 

 

 

Alliance Laundry Holdings, LLC

 

B1

 

B

 

 

 

5,947,500

 

Term Loan, 5.800%, maturing

 

 

 

 

 

 

 

 

 

January 27, 2012

 

 

 

 

 

6,046,009

 

 

 

Blount, Inc.

 

B1

 

BB-

 

 

 

3,952,068

 

Term Loan, 6.004%-7.250%, maturing

 

 

 

 

 

 

 

 

 

August 09, 2010

 

 

 

 

 

4,021,229

 

 

 

Enersys, Inc.

 

Ba3

 

BB

 

 

 

3,292,999

 

Term Loan, 5.296%-5.820%, maturing

 

 

 

 

 

 

 

 

 

March 17, 2011

 

 

 

 

 

3,315,639

 

 

 

Maxim Crane Works, L.P.

 

 

 

 

 

 

 

2,078,125

 

Term Loan, 6.188%-6.375%, maturing

 

 

 

 

 

 

 

 

 

January 25, 2010

 

B2

 

BB-

 

2,114,492

 

 

 

Maxim Crane Works, L.P.

 

 

 

 

 

 

 

1,500,000

 

Term Loan, 8.938%, maturing

 

 

 

 

 

 

 

 

 

January 30, 2012

 

B3

 

B+

 

1,552,500

 

 

 

Rexnord Corporation

 

B1

 

B+

 

 

 

7,570,190

 

Term Loan, 5.750%-7.250%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

7,688,474

 

 

 

Terex Corporation

 

B1

 

BB-

 

 

 

1,744,219

 

Term Loan, 5.680%, maturing July 03, 2009

 

 

 

 

 

1,769,292

 

 

 

United Rentals (North America), Inc.

 

B1

 

BB

 

 

 

157,078

 

Term Loan, 3.340%, maturing

 

 

 

 

 

 

 

 

 

February 14, 2011

 

 

 

 

 

158,943

 

10,790,907

 

Term Loan, 5.920%, maturing

 

 

 

 

 

 

 

 

 

February 14, 2011

 

 

 

 

 

10,919,049

 

 

 

 

 

 

 

 

 

37,585,627

 

Mining, Steel, Iron & Nonprecious Metals: 1.4%

 

 

 

 

 

 

 

 

 

Carmeuse Lime, Inc.

 

NR

 

NR

 

 

 

2,962,500

 

Term Loan, 5.500%, maturing May 02, 2011

 

 

 

 

 

2,984,719

 

 

 

Foundation Coal Corporation

 

Ba3

 

BB-

 

 

 

3,688,830

 

Term Loan, 5.380%-5.660%, maturing

 

 

 

 

 

 

 

 

 

July 30, 2011

 

 

 

 

 

3,756,457

 

 

 

International Coal Group, LLC

 

B2

 

B-

 

 

 

600,000

 (4)

Term Loan, maturing October 01, 2010

 

 

 

 

 

603,000

 

1,488,750

 

Term Loan, 6.430%, maturing

 

 

 

 

 

 

 

 

 

October 01, 2010

 

 

 

 

 

1,496,194

 

 

See Accompanying Notes to Financial Statements

 

41


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Mining, Steel, Iron & Nonprecious Metals: (continued)

 

 

 

 

 

 

 

 

 

Longyear Holdings, Inc.

 

B1

 

B+

 

 

 

$   333,333

 

Term Loan, 6.170%, maturing July 28, 2012

 

 

 

 

 

$

339,167

 

1,333,333

 

Term Loan, 6.170%, maturing July 28, 2012

 

 

 

 

 

1,356,666

 

 

 

Novelis, Inc.

 

Ba2

 

BB-

 

 

 

4,742,973

 

Term Loan, 5.460%, maturing

 

 

 

 

 

 

 

 

 

January 06, 2012

 

 

 

 

 

4,810,413

 

8,237,796

 

Term Loan, 5.460%, maturing

 

 

 

 

 

 

 

 

 

January 06, 2012

 

 

 

 

 

8,354,929

 

 

 

Trout Coal Holdings, LLC

 

B3

 

B

 

 

 

4,488,750

 

Term Loan, 6.000%-6.170%, maturing

 

 

 

 

 

 

 

 

 

March 18, 2010

 

 

 

 

 

4,499,972

 

 

 

 

 

 

 

 

 

28,201,517

 

North American Cable: 10.5%

 

 

 

 

 

 

 

 

 (2)

Adelphia Communications Corporation

 

NR

 

BBB

 

 

 

11,000,000

 

Debtor in Possession Term Loan, 6.313%,

 

 

 

 

 

11,027,500

 

 

 

Maturing March 31, 2006

 

 

 

 

 

 

 

 

 

Atlantic Broadband Finance, LLC

 

B2

 

B

 

 

 

4,000,000

 

Term Loan, 6.110%, maturing

 

 

 

 

 

 

 

 

 

August 04, 2012

 

 

 

 

 

4,075,000

 

 

 

Bragg Communications, Inc.

 

B1

 

NR

 

 

 

4,455,000

 

Term Loan, 6.360%, maturing

 

 

 

 

 

 

 

 

 

August 31, 2011

 

 

 

 

 

4,507,903

 

 

 

Bresnan Communications, LLC

 

B1

 

BB-

 

 

 

7,000,000

 

Term Loan, 7.060%-7.170%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2007

 

 

 

 

 

7,126,000

 

 

 

Cebridge Connections, Inc.

 

NR

 

NR

 

 

 

1,481,250

 

Term Loan, 6.400%-8.750%, maturing

 

 

 

 

 

 

 

 

 

February 23, 2009

 

 

 

 

 

1,490,508

 

2,461,288

 

Term Loan, 9.490%-9.774%, maturing

 

 

 

 

 

 

 

 

 

February 23, 2010

 

 

 

 

 

2,485,901

 

 

 (2)

Century Cable Holdings, LLC

 

Caa1

 

NR

 

 

 

820,000

 

Revolver, 7.500%, maturing March 31, 2009

 

 

 

 

 

808,469

 

13,000,000

 

Term Loan, 8.500%, maturing June 30, 2009

 

 

 

 

 

12,926,875

 

6,750,000

 

Term Loan, 8.500%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2009

 

 

 

 

 

6,708,656

 

 

 

Charter Communications Operating, LLC

 

B2

 

B

 

 

 

30,086,689

 

Term Loan, 6.680%, maturing April 27, 2010

 

 

 

 

 

29,975,218

 

31,208,685

 

Term Loan, 6.830%-6.930%, maturing

 

 

 

 

 

 

 

 

 

April 27, 2011

 

 

 

 

 

31,349,404

 

 

 (2)

Hilton Head Communications, L.P.

 

Caa1

 

NR

 

 

 

3,000,000

 

Revolver, 6.500%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2007

 

 

 

 

 

2,940,939

 

14,000,000

 

Term Loan, 7.750%, maturing

 

 

 

 

 

 

 

 

 

March 31, 2008

 

 

 

 

 

13,816,250

 

 

 

Insight Midwest Holdings, LLC

 

Ba3

 

BB-

 

 

 

1,987,500

 

Term Loan, 5.125%, maturing June 30, 2009

 

 

 

 

 

1,994,263

 

11,327,500

 

Term Loan, 5.625%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2009

 

 

 

 

 

11,495,294

 

 

See Accompanying Notes to Financial Statements

 

42


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

North American Cable: (continued)

 

 

 

 

 

 

 

 

 

Knology, Inc.

 

 

 

 

 

 

 

$  2,250,000

 

Term Loan, 9.080%-9.180%, maturing

 

B3

 

NR

 

 

 

 

 

June 29, 2010

 

 

 

 

 

$

2,283,750

 

 

 

Mediacom Communications Corporation

 

Ba3

 

BB-

 

 

 

4,882,500

 

Term Loan, 4.600%-4.810%, maturing

 

 

 

 

 

 

 

 

 

March 31, 2010

 

 

 

 

 

4,867,242

 

15,760,500

 

Term Loan, 5.350%-5.510%, maturing

 

 

 

 

 

 

 

 

 

February 01, 2014

 

 

 

 

 

15,993,220

 

 

 

Mediacom Illinois, LLC

 

Ba3

 

BB-

 

 

 

8,623,333

 

Term Loan, 5.470%-6.060%, maturing

 

 

 

 

 

 

 

 

 

March 31, 2013

 

 

 

 

 

8,762,117

 

 

 (2)

Olympus Cable Holdings, LLC

 

B2

 

NR

 

 

 

23,568,240

 

Term Loan, 7.750%, maturing June 30, 2010

 

 

 

 

 

23,378,846

 

6,500,000

 

Term Loan, 8.500%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2010

 

 

 

 

 

6,464,601

 

 

 

Patriot Media and Communications, LLC

 

 

 

 

 

 

 

3,666,667

 (4)

Term Loan, maturing April 4, 2013

 

B1

 

B+

 

3,721,667

 

 

 

Patriot Communications, Inc.

 

 

 

 

 

 

 

1,000,000

 (4)

Term Loan, maturing October 4, 2013

 

B3

 

B-

 

1,021,875

 

 

 

Persona Communication, Inc.

 

B2

 

B+

 

 

 

3,465,000

 

Term Loan, 6.490%, maturing

 

 

 

 

 

 

 

 

 

August 01, 2011

 

 

 

 

 

3,518,060

 

 

 

Puerto Rico Cable Acquisition Company

 

NR

 

NR

 

 

 

1,500,000

 

Term Loan, 8.750%, maturing July 28, 2011

 

 

 

 

 

1,521,562

 

 

 

 

 

 

 

 

 

214,261,120

 

Oil & Gas: 6.4%

 

 

 

 

 

 

 

 

 

 

 

Coffeyville Resources, LLC

 

B1

 

BB-

 

 

 

1,000,000

 

Term Loan, 6.063%, maturing June 24, 2012

 

 

 

 

 

1,017,708

 

1,500,000

 

Term Loan, 6.063%, maturing June 24, 2012

 

 

 

 

 

1,526,562

 

 

 

Complete Production Services, Inc.

 

B2

 

B

 

 

 

4,000,000

 (4)

Term Loan, maturing September 12, 2012

 

 

 

 

 

4,047,500

 

 

 

El Paso Corporation

 

B3

 

B

 

 

 

2,000,000

 

Term Loan, 5.670%, maturing

 

 

 

 

 

 

 

 

 

November 30, 2007

 

 

 

 

 

2,032,222

 

24,848,985

 

Term Loan, 6.438%, maturing

 

 

 

 

 

 

 

 

 

November 23, 2009

 

 

 

 

 

25,249,327

 

 

 

EPCO Holdings, Inc.

 

Ba3

 

B+

 

 

 

13,250,000

 

Term Loan, 5.840%, maturing

 

 

 

 

 

 

 

 

 

August 18, 2010

 

 

 

 

 

13,483,942

 

 

 

Getty Petroleum Marketing, Inc.

 

B1

 

BB-

 

 

 

6,048,112

 

Term Loan, 6.920%, maturing May 19, 2010

 

 

 

 

 

6,063,232

 

 

 

Kerr-McGee Corporation

 

Ba3

 

BB+

 

 

 

23,000,000

 

Term Loan, 6.140%, maturing May 24, 2011

 

 

 

 

 

23,150,949

 

 

 

LB Pacific, L.P.

 

B1

 

B-

 

 

 

3,990,000

 

Term Loan, 6.130%-6.610%, maturing

 

 

 

 

 

 

 

 

 

February 15, 2012

 

 

 

 

 

4,059,825

 

 

See Accompanying Notes to Financial Statements

 

43


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Oil & Gas: (continued)

 

 

 

 

 

 

 

 

 

 

 

Lyondell-Citgo Refining, L.P.

 

Ba3

 

BB

 

 

 

$  7,352,996

 

Term Loan, 5.510%-5.670%, maturing

 

 

 

 

 

 

 

 

 

May 21, 2007

 

 

 

 

 

$

7,467,886

 

 

 

Magellan Midstream Holdings, L.P.

 

Ba3

 

BB-

 

 

 

2,750,000

 

Term Loan, 5.785%, maturing June 30, 2012

 

 

 

 

 

2,794,688

 

 

 

Mainline, L.P.

 

Ba3

 

BB-

 

 

 

7,339,583

 

Term Loan, 5.819%, maturing

 

 

 

 

 

 

 

 

 

December 17, 2011

 

 

 

 

 

7,376,281

 

 

 

Regency Gas Services, LLC

 

 

 

 

 

 

 

1,492,500

 

Term Loan, 6.240%-6.330%, maturing

 

 

 

 

 

 

 

 

 

June 01, 2010

 

B1

 

B+

 

1,499,963

 

 

 

Regency Gas Services, LLC

 

 

 

 

 

 

 

500,000

 

Term Loan, 9.490%, maturing

 

 

 

 

 

 

 

 

 

November 30, 2010

 

B3

 

B-

 

502,500

 

 

 

Semcrude, L.P.

 

Ba3

 

NR

 

 

 

5,263,731

 

Term Loan, 5.990%, maturing

 

 

 

 

 

 

 

 

 

March 16, 2011

 

 

 

 

 

5,319,658

 

10,019,462

 

Term Loan, 6.071%-7.500%, maturing

 

 

 

 

 

 

 

 

 

March 16, 2011

 

 

 

 

 

10,157,229

 

 

 

Vulcan Energy Corporation

 

Ba2

 

BB

 

 

 

6,491,714

 

Term Loan, 5.836%-5.860%, maturing

 

 

 

 

 

 

 

 

 

August 12, 2011

 

 

 

 

 

6,593,147

 

 

 

Western Refining Company, L.P.

 

B2

 

BB-

 

 

 

3,750,000

 

Term Loan, 6.170%, maturing July 27, 2012

 

 

 

 

 

3,773,438

 

 

 

Williams Production RMT Company

 

Ba3

 

BB

 

 

 

4,911,466

 

Term Loan, 5.830%, maturing May 30, 2008

 

 

 

 

 

4,985,137

 

 

 

 

 

 

 

 

 

131,101,194

 

Other Broadcasting and Entertainment: 1.7%

 

 

 

 

 

 

 

 

 

Alliance Atlantis Communications, Inc.

 

Ba2

 

BB

 

 

 

2,318,585

 

Term Loan, 5.410%, maturing

 

 

 

 

 

 

 

 

 

December 20, 2011

 

 

 

 

 

2,353,364

 

 

 

DirecTV Holdings, LLC

 

Ba1

 

BB

 

 

 

10,000,000

 

Term Loan, 5.088%, maturing April 13, 2013

 

 

 

 

 

10,117,860

 

 

 

Echostar DBS Corporation

 

Ba3

 

BB-

 

 

 

5,000,000

 

Floating Rate Note, 6.754%, maturing

 

 

 

 

 

 

 

 

 

October 01, 2008

 

 

 

 

 

5,106,250

 

 

 

HIT Entertainment, Ltd.

 

B1

 

B

 

 

 

1,666,667

 (4)

Term Loan, maturing March 20, 2012

 

 

 

 

 

1,693,750

 

 

 

Liberty Media Corporation

 

Ba1

 

BB+

 

 

 

3,500,000

 

Floating Rate Note, 4.910%, maturing

 

 

 

 

 

 

 

 

 

September 17, 2006

 

 

 

 

 

3,524,325

 

 

 

Rainbow National Services, LLC

 

B1

 

BB+

 

 

 

10,224,375

 

Term Loan, 6.438%, maturing

 

 

 

 

 

 

 

 

 

March 31, 2012

 

 

 

 

 

10,317,038

 

 

 

Yankees Holdings, L.P.

 

NR

 

NR

 

 

 

942,857

 

Term Loan, 5.830%-6.130%, maturing

 

 

 

 

 

 

 

 

 

June 25, 2007

 

 

 

 

 

952,286

 

 

 

 

 

 

 

 

 

34,064,873

 

 

See Accompanying Notes to Financial Statements

 

44


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Other Telecommunications: 2.6%

 

 

 

 

 

 

 

 

 

Cincinnati Bell, Inc.

 

Ba3

 

B+

 

 

 

$  3,500,000

 (4)

Term Loan, maturing August 31, 2012

 

 

 

 

 

$

3,521,875

 

 

 

Consolidated Communications, Inc.

 

B1

 

BB-

 

 

 

4,440,381

 

Term Loan, 5.815%-6.052%, maturing

 

 

 

 

 

 

 

 

 

October 14, 2011

 

 

 

 

 

4,512,537

 

 

 

D&E Communications, Inc.

 

Ba3

 

BB-

 

 

 

1,969,736

 

Term Loan, 5.350%-7.500%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

1,986,971

 

 

 

Fairpoint Communications, Inc.

 

B1

 

BB-

 

 

 

3,500,000

 

Term Loan, 5.438%-5.563%, maturing

 

 

 

 

 

 

 

 

 

February 08, 2012

 

 

 

 

 

3,542,658

 

 

 

GCI Holdings, Inc.

 

Ba2

 

BB+

 

 

 

1,394,858

 

Term Loan, 7.250%, maturing

 

 

 

 

 

 

 

 

 

October 31, 2007

 

 

 

 

 

1,406,191

 

 

 

Hawaiian Telcom Communications, Inc.

 

B1

 

B+

 

 

 

3,500,000

 

Term Loan, 5.730%, maturing

 

 

 

 

 

 

 

 

 

October 31, 2012

 

 

 

 

 

3,549,767

 

 

 

Iowa Telecommunications Services, Inc.

 

Ba3

 

BB-

 

 

 

5,750,000

 

Term Loan, 5.490%-5.540%, maturing

 

 

 

 

 

 

 

 

 

November 30, 2011

 

 

 

 

 

5,819,477

 

 

 

Madison River Capital, LLC

 

B1

 

B+

 

 

 

1,666,667

 

Term Loan, 6.040%, maturing July 29, 2012

 

 

 

 

 

1,696,875

 

 

 

Qwest Communications International, Inc.

 

B3

 

B

 

 

 

8,000,000

 

Floating Rate Note, 7.290%, maturing

 

 

 

 

 

 

 

 

 

February 15, 2009

 

 

 

 

 

7,960,000

 

 

 

Qwest Corporation

 

B2

 

BB-

 

 

 

1,000,000

 

Term Loan, 8.530%, maturing June 30, 2007

 

 

 

 

 

1,033,542

 

 

 

Time Warner Telecom Holdings, Inc.

 

B1

 

B

 

 

 

2,000,000

 

Floating Rate Note, 7.790%, maturing
February 15, 2011

 

 

 

 

 

2,050,000

 

 

 

Valor Telecommunication Enterprises Ii, LLC

 

Ba3

 

BB-

 

 

 

8,680,272

 

Term Loan, 5.240%-5.811%, maturing

 

 

 

 

 

 

 

 

 

February 14, 2012

 

 

 

 

 

8,800,398

 

 

 

Wiltel Communications Group, LLC

 

 

 

 

 

 

 

6,709,799

 

Term Loan, 6.990%, maturing October 01, 2009

 

B2

 

B-

 

6,807,648

 

 

 

Wiltel Communications Group, LLC

 

 

 

 

 

 

 

750,000

 

Term Loan, 9.240%, maturing

 

 

 

 

 

 

 

 

 

January 01, 2010

 

Caa1

 

CCC+

 

744,375

 

 

 

 

 

 

 

 

 

53,432,314

 

Personal & Nondurable Consumer Products: 3.5%

 

 

 

 

 

 

 

 

 

Amscan Holdings, Inc.

 

B1

 

B+

 

 

 

1,980,000

 

Term Loan, 6.321%-6.560%, maturing

 

 

 

 

 

 

 

 

 

April 30, 2012

 

 

 

 

 

2,002,275

 

 

 

Arbonne International, Inc.

 

B2

 

B

 

 

 

1,666,667

 

Term Loan, 8.750%, maturing

 

 

 

 

 

 

 

 

 

August 16, 2011

 

 

 

 

 

1,682,292

 

 

See Accompanying Notes to Financial Statements

 

45


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Personal & Nondurable Consumer Products: (continued)

 

 

 

 

 

 

 

 

 

Bushnell Performance Optics

 

B1

 

B+

 

 

 

$  1,750,000

 

Term Loan, 6.641%, maturing

 

 

 

 

 

$

1,774,062

 

 

 

August 19, 2011

 

 

 

 

 

 

 

 

 

Church & Dwight Company, Inc.

 

Ba2

 

BB

 

 

 

4,395,591

 

Term Loan, 5.390%, maturing May 30, 2011

 

 

 

 

 

4,446,875

 

 

 

Fender Musical Instruments Corporation

 

 

 

 

 

 

 

2,493,750

 

Term Loan, 5.850%, maturing

 

B1

 

B+

 

 

 

 

 

March 30, 2012

 

 

 

 

 

2,531,156

 

 

 

Fender Musical Instruments Corporation

 

 

 

 

 

 

 

2,500,000

 

Term Loan, 8.100%, maturing

 

B3

 

B-

 

 

 

 

 

September 30, 2012

 

 

 

 

 

2,550,000

 

 

 

Hillman Group, Inc.

 

B2

 

B

 

 

 

1,975,000

 

Term Loan, 6.688%-6.750%, maturing

 

 

 

 

 

 

 

 

 

March 30, 2011

 

 

 

 

 

2,002,775

 

 

 

Hunter Fan Company

 

B1

 

B

 

 

 

2,992,500

 

Term Loan, 5.910%-6.180%, maturing

 

 

 

 

 

 

 

 

 

March 24, 2012

 

 

 

 

 

2,985,019

 

 

 

Jarden Corporation

 

B1

 

B+

 

 

 

14,840,847

 

Term Loan, 5.490%-5.635%, maturing

 

 

 

 

 

 

 

 

 

August 15, 2011

 

 

 

 

 

14,946,588

 

4,325,257

 

Term Loan, 5.270%, maturing

 

 

 

 

 

 

 

 

 

January 24, 2012

 

 

 

 

 

4,356,075

 

 

 

Norwood Promotional Products Holdings, Inc.

 

NR

 

NR

 

 

 

6,712,197

 (4)

Term Loan, maturing August 16, 2011

 

 

 

 

 

2,349,269

 

 

 

Norwood Promotional Products, Inc.

 

NR

 

NR

 

 

 

8,866,729

 

Term Loan, 9.750%, maturing

 

 

 

 

 

 

 

 

 

August 16, 2009

 

 

 

 

 

8,733,728

 

 

 

Oreck Corporation

 

B1

 

B+

 

 

 

3,977,506

 

Term Loan, 6.240%, maturing

 

 

 

 

 

 

 

 

 

January 27, 2012

 

 

 

 

 

4,017,281

 

 

 

Prestige Brands Holdings, Inc.

 

B1

 

B+

 

 

 

2,179,254

 

Term Loan, 6.311%-7.750%, maturing

 

 

 

 

 

 

 

 

 

April 06, 2011

 

 

 

 

 

2,200,138

 

 

 

Reddy Ice Group, Inc.

 

B1

 

B+

 

 

 

3,000,000

 

Term Loan, 5.321%, maturing

 

 

 

 

 

 

 

 

 

August 09, 2012

 

 

 

 

 

3,030,939

 

 

 

Spectrum Brands, Inc.

 

B1

 

B+

 

 

 

12,069,750

 

Term Loan, 5.480%-5.790%, maturing

 

 

 

 

 

 

 

 

 

February 06, 2012

 

 

 

 

 

12,250,796

 

 

 

 

 

 

 

 

 

71,859,268

 

Personal, Food & Miscellaneous: 2.6%

 

 

 

 

 

 

 

 

 

AFC Enterprises, Inc.

 

B1

 

B+

 

 

 

2,500,000

 

Term Loan, 5.750%, maturing

 

 

 

 

 

2,531,250

 

 

 

May 11, 2011

 

 

 

 

 

 

 

 

 

Alderwoods Group, Inc.

 

B1

 

BB-

 

 

 

1,766,361

 

Term Loan, 5.296%-5.840%, maturing

 

 

 

 

 

 

 

 

 

September 29, 2009

 

 

 

 

 

1,792,856

 

 

 

Arby’s Restaurant Group, Inc.

 

B1

 

B+

 

 

 

4,000,000

 

Term Loan, 5.919%-6.110%, maturing

 

 

 

 

 

 

 

 

 

July 25, 2012

 

 

 

 

 

4,051,252

 

 

See Accompanying Notes to Financial Statements

 

46


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Personal, Food & Miscellaneous: (continued)

 

 

 

 

 

 

 

 

 

Brickman Group Holdings, Inc.

 

Ba3

 

BB-

 

 

 

$  1,617,614

 

Term Loan, 6.380%-6.660%, maturing

 

 

 

 

 

 

 

 

 

December 19, 2008

 

 

 

 

 

$

1,613,570

 

 

 

Burger King Corporation

 

Ba2

 

B+

 

 

 

4,500,000

 

Term Loan, 5.375%, maturing

 

 

 

 

 

4,575,537

 

 

 

June 30, 2012

 

B2

 

B

 

 

 

 

 

Burt’s Bees, Inc.

 

 

 

 

 

 

 

3,241,875

 

Term Loan, 6.134%-6.410%, maturing

 

 

 

 

 

 

 

 

 

March 24, 2011

 

 

 

 

 

3,282,398

 

 

 

Carrols Corporation

 

B1

 

B+

 

 

 

4,479,994

 

Term Loan, 6.000%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2010

 

 

 

 

 

4,553,725

 

 

 

Central Garden & Pet Company

 

Ba2

 

BB+

 

 

 

2,448,916

 

Term Loan, 5.321%-5.419%, maturing

 

 

 

 

 

 

 

 

 

May 15, 2009

 

 

 

 

 

2,484,119

 

 

 

Coinmach Corporation

 

B2

 

B

 

 

 

3,698,948

 

Term Loan, 6.563%-6.688%, maturing

 

 

 

 

 

 

 

 

 

July 25, 2009

 

 

 

 

 

3,750,966

 

 

 

Coinstar, Inc.

 

Ba3

 

BB-

 

 

 

2,688,508

 

Term Loan, 5.550%, maturing

 

 

 

 

 

 

 

 

 

July 07, 2011

 

 

 

 

 

2,728,835

 

 

 

Culligan International Company

 

B1

 

B+

 

 

 

2,500,000

 

Term Loan, 6.071%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2011

 

 

 

 

 

2,539,063

 

 

 

Domino’s, Inc.

 

Ba3

 

B+

 

 

 

5,227,671

 

Term Loan, 5.250%, maturing

 

 

 

 

 

 

 

 

 

June 25, 2010

 

 

 

 

 

5,316,975

 

 

 

Jack in the Box, Inc.

 

Ba2

 

BB

 

 

 

5,424,925

 

Term Loan, 5.080%-5.810%, maturing

 

 

 

 

 

 

 

 

 

January 09, 2011

 

 

 

 

 

5,496,127

 

 

 

Landry’s Restaurants, Inc.

 

Ba2

 

BB-

 

 

 

3,980,000

 

Term Loan, 5.240%, maturing

 

 

 

 

 

 

 

 

 

December 28, 2010

 

 

 

 

 

4,033,483

 

 

 

MD Beauty, Inc.

 

B2

 

B

 

 

 

1,974,194

 

Term Loan, 6.600%-6.700%, maturing

 

 

 

 

 

 

 

 

 

February 18, 2012

 

 

 

 

 

1,993,936

 

 

 

N.E.W. Holdings I, LLC

 

B1

 

B+

 

 

 

2,229,545

 

Term Loan, 6.875%-7.063%, maturing

 

 

 

 

 

 

 

 

 

July 08, 2011

 

 

 

 

 

2,264,382

 

 

 

Ruths Chris Steak House, Inc.

 

NR

 

NR

 

 

 

507,143

 

Term Loan, 8.500%, maturing

 

 

 

 

 

 

 

 

 

March 11, 2011

 

 

 

 

 

508,411

 

 

 

 

 

 

 

 

 

53,516,885

 

Printing & Publishing: 6.2%

 

 

 

 

 

 

 

 

 

Adams Outdoor Advertising, L.P.

 

B1

 

B+

 

 

 

7,168,996

 

Term Loan, 5.540%-5.640%, maturing

 

 

 

 

 

 

 

 

 

October 18, 2012

 

 

 

 

 

7,269,061

 

 

See Accompanying Notes to Financial Statements

 

47


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Printing & Publishing: (continued)

 

 

 

 

 

 

 

 

 

American Achievement Corporation

 

B1

 

B+

 

 

 

$  1,790,558

 

Term Loan, 5.850%-8.000%, maturing

 

 

 

 

 

 

 

 

 

March 25, 2011

 

 

 

 

 

$

1,816,297

 

 

 

American Media Operations, Inc.

 

B1

 

B

 

 

 

13,453

 

Term Loan, 6.254%, maturing April 01, 2006

 

 

 

 

 

13,588

 

6,723,854

 

Term Loan, 6.254%, maturing April 01, 2007

 

 

 

 

 

6,817,706

 

1,335,412

 

Term Loan, 6.254%, maturing April 01, 2007

 

 

 

 

 

1,354,052

 

 

 

American Reprographics Company

 

 

 

 

 

 

 

3,490,183

 

Term Loan, 10.235%, maturing

 

 

 

 

 

 

 

 

 

June 18, 2009

 

Ba2

 

BB

 

3,516,359

 

 

 

American Reprographics Company

 

 

 

 

 

 

 

700,000

 

Term Loan, 5.310%-5.524%, maturing

 

 

 

 

 

 

 

 

 

December 18, 2009

 

B1

 

B

 

728,000

 

 

 

Ascend Media Holdings, LLC

 

B3

 

B

 

 

 

1,750,000

 

First Lien Term Loan, 6.180%-6.460%, maturing

 

 

 

 

 

 

 

 

 

January 31, 2012

 

 

 

 

 

1,755,469

 

 

 

Canwest Mesdia, Inc.

 

Ba3

 

B+

 

 

 

4,978,305

 

Term Loan, 5.823%, maturing

 

 

 

 

 

 

 

 

 

August 15, 2009

 

 

 

 

 

5,048,832

 

 

 

Dex Media East, LLC

 

Ba2

 

BB

 

 

 

1,601,073

 

Term Loan, 4.810%-5.000%, maturing

 

 

 

 

 

 

 

 

 

November 08, 2008

 

 

 

 

 

1,608,579

 

5,232,162

 

Term Loan, 5.050%-5.500%, maturing

 

 

 

 

 

 

 

 

 

May 08, 2009

 

 

 

 

 

5,306,066

 

 

 

Dex Media West, LLC

 

Ba2

 

BB

 

 

 

745,692

 

Term Loan, 4.680%-4.900%, maturing

 

 

 

 

 

 

 

 

 

September 09, 2009

 

 

 

 

 

749,537

 

8,871,628

 

Term Loan, 5.050%-5.400%, maturing

 

 

 

 

 

 

 

 

 

March 09, 2010

 

 

 

 

 

8,999,663

 

 

 

Enterprise Newsmedia, LLC

 

B2

 

B

 

 

 

3,500,000

 

Term Loan, 6.510%, maturing June 30, 2012

 

 

 

 

 

3,545,937

 

 

 

F&W Publications, Inc.

 

B2

 

B

 

 

 

1,000,000

 

Term Loan, 6.030%, maturing

 

 

 

 

 

 

 

 

 

August 05, 2012

 

 

 

 

 

1,015,625

 

 

 

Freedom Communications, Inc.

 

Ba2

 

BB

 

 

 

2,374,843

 

Term Loan, 4.830%, maturing May 01, 2013

 

 

 

 

 

2,406,013

 

 

 

Hanley-Wood, LLC

 

B2

 

B

 

 

 

2,533,113

 

Term Loan, 5.784%, maturing

 

 

 

 

 

 

 

 

 

August 01, 2012

 

 

 

 

 

2,548,945

 

 

 

IWCO Direct, Inc.

 

B1

 

B

 

 

 

1,496,250

 

Term Loan, 6.740%-6.810%, maturing

 

 

 

 

 

 

 

 

 

January 31, 2011

 

 

 

 

 

1,518,694

 

 

 

Journal Register Company

 

Ba2

 

BB

 

 

 

5,000,000

 

Term Loan, 5.010%-5.180%, maturing

 

 

 

 

 

 

 

 

 

September 29, 2006

 

 

 

 

 

5,047,655

 

 

 

Lamar Media Corporation

 

Ba2

 

BB

 

 

 

3,848,196

 

Term Loan, 5.313%-5.375%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2010

 

 

 

 

 

3,874,172

 

 

See Accompanying Notes to Financial Statements

 

48


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Printing & Publishing: (continued)

 

 

 

 

 

 

 

 

 

Liberty Group Publishing

 

B1

 

B+

 

 

 

$  4,925,156

 

Term Loan, 5.813%, maturing

 

 

 

 

 

 

 

 

 

 

February 28, 2012

 

 

 

 

 

$

4,979,540

 

 

 

MC Communications, LLC

 

B2

 

B

 

 

 

3,406,667

 

Term Loan, 6.540%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2010

 

 

 

 

 

3,436,475

 

 

 

Merrill Communications, LLC

 

B1

 

B+

 

 

 

3,558,750

 

Term Loan, 6.169%, maturing July 30, 2009

 

 

 

 

 

3,606,572

 

1,392,188

 

Term Loan, 6.169%, maturing July 30, 2009

 

 

 

 

 

1,410,896

 

 

 

Primedia, Inc.

 

B2

 

B

 

 

 

1,170,960

 

Revolver, 5.750%, maturing June 30, 2008

 

 

 

 

 

1,147,541

 

4,260,619

 

Term Loan, 6.438%, maturing June 30, 2009

 

 

 

 

 

4,269,941

 

1,485,000

 

Term Loan, 8.000%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2009

 

 

 

 

 

1,491,034

 

 

 

R.H. Donnelley, Inc.

 

Ba3

 

BB

 

 

 

4,430,450

 

Term Loan, 5.490%-5.760%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2009

 

 

 

 

 

4,478,560

 

758,126

 

Term Loan, 5.240%-5.510%, maturing

 

 

 

 

 

 

 

 

 

December 31, 2009

 

 

 

 

 

766,358

 

11,739,890

 

Term Loan, 5.110%-5.300%, maturing

 

 

 

 

 

 

 

 

 

June 30, 2011

 

 

 

 

 

11,915,424

 

 

 

Source Media, Inc.

 

B1

 

B

 

 

 

4,470,588

 

Term Loan, 5.740%, maturing

 

 

 

 

 

 

 

 

 

November 08, 2011

 

 

 

 

 

4,537,647

 

 

 

Visant Holding Corporation

 

B1

 

B+

 

 

 

18,050,000

 

Term Loan, 5.754%-5.940%, maturing

 

 

 

 

 

 

 

 

 

October 04, 2011

 

 

 

 

 

18,352,338

 

 

 

Ziff Davis Media, Inc.

 

B3

 

CCC+

 

 

 

1,500,000

 

Floating Rate Note, 9.693%, maturing

 

 

 

 

 

 

 

 

 

May 01, 2012

 

 

 

 

 

1,455,000

 

 

 

 

 

 

 

 

 

126,787,576

 

Radio and TV Broadcasting: 3.0%

 

 

 

 

 

 

 

 

 

Emmis Operating Company

 

Ba2

 

B+

 

 

 

10,917,500

 

Term Loan, 5.321%, maturing

 

 

 

 

 

 

 

 

 

November 10, 2011

 

 

 

 

 

11,015,757

 

 

 

Entravision Communications Corporation

 

B1

 

B+

 

 

 

750,000

 

Term Loan, 5.240%, maturing

 

 

 

 

 

 

 

 

 

February 24, 2012

 

 

 

 

 

753,281

 

2,500,000

 

Term Loan, 5.240%, maturing

 

 

 

 

 

 

 

 

 

February 24, 2012

 

 

 

 

 

2,510,938

 

 

 

Mission Broadcasting, Inc.

 

Ba3

 

B

 

 

 

4,864,789

 

Term Loan, 5.240%, maturing

 

 

 

 

 

 

 

 

 

August 14, 2012

 

 

 

 

 

4,910,396

 

 

 

NEP Supershooters, L.P.

 

B1

 

B

 

 

 

2,977,500

 

Term Loan, 7.490%-7.710%, maturing

 

 

 

 

 

 

 

 

 

February 03, 2011

 

 

 

 

 

3,034,260

 

1,990,000

 

Term Loan, 6.990%, maturing

 

 

 

 

 

 

 

 

 

February 03, 2011

 

 

 

 

 

2,027,935

 

 

See Accompanying Notes to Financial Statements

 

49


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Radio and TV Broadcasting: (continued)

 

 

 

 

 

 

 

 

 

Nexstar Broadcasting, Inc.

 

Ba3

 

B

 

 

 

$  5,135,211

 

Term Loan, 5.240%, maturing

 

 

 

 

 

 

 

 

 

 

August 14, 2012

 

 

 

 

 

$

5,183,354

 

 

 

Paxson Communications Corporation

 

B1

 

B-

 

 

 

6,500,000

 

Floating Rate Note, 6.349%, maturing

 

 

 

 

 

 

 

 

 

January 15, 2010

 

 

 

 

 

6,500,000

 

 

 

Raycom Media, Inc.

 

NR

 

NR

 

 

 

4,750,000

 

Term Loan, 5.500%, maturing

 

 

 

 

 

 

 

 

 

March 31, 2012

 

 

 

 

 

4,797,500

 

 

 

Spanish Broadcasting Systems, Inc.

 

 

 

 

 

 

 

3,990,000

 

Term Loan, 5.490%, maturing June 10, 2012

 

B1

 

B+

 

4,052,344

 

 

 

Spanish Broadcasting Systems, Inc.

 

 

 

 

 

 

 

1,500,000

 

Term Loan, 7.510%, maturing June 10, 2013

 

B2

 

CCC+

 

1,522,500

 

 

 

Susquehanna Media Company

 

Ba2

 

BB-

 

 

 

8,977,500

 

Term Loan, 5.250%-5.670%, maturing

 

 

 

 

 

 

 

 

 

March 31, 2012

 

 

 

 

 

9,095,330

 

 

 

Young Broadcasting, Inc.

 

B1

 

B

 

 

 

5,000,000

 

Term Loan, 5.688%-6.000%, maturing

 

 

 

 

 

 

 

 

 

November 03, 2012

 

 

 

 

 

5,054,165

 

 

 

 

 

 

 

 

 

60,457,760

 

Retail Stores: 3.8%

 

 

 

 

 

 

 

 

 

 

 

Advance Stores Company, Inc.

 

Ba2

 

BB+

 

 

 

1,730,350

 

Term Loan, 5.250%- 5.438%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2010

 

 

 

 

 

1,756,305

 

2,926,887

 

Term Loan, 4.938%-5.625%, maturing

 

 

 

 

 

 

 

 

 

September 30, 2010

 

 

 

 

 

2,970,790

 

 

 

Alimentation Couche-Tard, Inc.

 

Ba2

 

BB

 

 

 

603,061

 

Term Loan, 5.375%, maturing

 

 

 

 

 

 

 

 

 

December 17, 2010

 

 

 

 

 

610,599

 

 

 

Baker & Taylor, Inc.

 

 

 

 

 

 

 

1,300,000

 

Revolver, 5.229%-5.338%, maturing

 

Ba3

 

B+

 

 

 

 

 

August 11, 2010

 

 

 

 

 

1,293,500

 

 

 

Baker & Taylor, Inc.

 

 

 

 

 

 

 

2,000,000

 

Term Loan, 10.160%, maturing May 06, 2011

 

B1

 

B

 

2,025,000

 

 

 

Blockbuster Entertainment Corporation

 

B3

 

B

 

 

 

9,000,000

 

Term Loan, 6.990%-7.540%, maturing

 

 

 

 

 

 

 

 

 

August 20, 2011

 

 

 

 

 

8,820,432

 

 

 

Dollarama Group, L.P.

 

B1

 

B+

 

 

 

5,472,500

 

Term Loan, 5.930%, maturing

 

 

 

 

 

 

 

 

 

November 18, 2011

 

 

 

 

 

5,554,587

 

 

 

Harbor Freight Tools, Inc.

 

B1

 

B+

 

 

 

9,934,977

 

Term Loan, 5.914%-8.000%, maturing

 

 

 

 

 

 

 

 

 

July 15, 2010

 

 

 

 

 

10,066,616

 

 

 

Jean Coutu Group, Inc.

 

B1

 

BB

 

 

 

8,914,962

 

Term Loan, 5.938%, maturing July 30, 2011

 

 

 

 

 

9,062,621

 

 

 

Mapco Express, Inc.

 

B2

 

B+

 

 

 

2,500,000

 

Term Loan, 6.210%, maturing April 28, 2011

 

 

 

 

 

2,539,063

 

 

 

Movie Gallery, Inc.

 

B1

 

B+

 

 

 

6,500,000

 

Term Loan, 6.490%, maturing April 27, 2011

 

 

 

 

 

6,537,726

 

 

See Accompanying Notes to Financial Statements

 

50


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Retail Stores: (continued)

 

 

 

 

 

 

 

 

 

 

 

Nebraska Book Company, Inc.

 

B2

 

B

 

 

 

$  3,456,250

 

Term Loan, 5.880%, maturing March 04, 2011

 

 

 

 

 

$

3,490,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oriental Trading Company, Inc.

 

 

 

 

 

 

 

2,734,064

 

Term Loan, 5.750%, maturing August 06, 2010

 

B1

 

B+

 

2,751,152

 

 

 

 

 

 

 

 

 

 

 

 

 

Oriental Trading Company

 

 

 

 

 

 

 

1,750,000

 

Term Loan, 8.250%, maturing January 08, 2011

 

B3

 

B-

 

1,760,938

 

 

 

 

 

 

 

 

 

 

 

 

 

Pantry, Inc.

 

B1

 

B+

 

 

 

4,862,319

 

Term Loan, 5.920%, maturing March 12, 2011

 

 

 

 

 

4,938,293

 

 

 

 

 

 

 

 

 

 

 

 

 

Rite Aid Corporation

 

NR

 

NR

 

 

 

3,960,000

 

Term Loan, 5.310%-5.420%, maturing

 

 

 

 

 

 

 

 

 

August 31, 2009

 

 

 

 

 

3,996,301

 

 

 

Tire Rack, Inc.

 

B1

 

BB-

 

 

 

1,000,000

 

Term Loan, 5.730%-5.900%, maturing

 

 

 

 

 

 

 

 

 

June 24, 2012

 

 

 

 

 

1,017,500

 

 

 

Travelcenters of America, Inc.

 

B1

 

BB

 

 

 

9,000,000

 

Term Loan, 5.260%, maturing

 

 

 

 

 

 

 

 

 

December 01, 2011

 

 

 

 

 

9,119,529

 

 

 

 

 

 

 

 

 

78,311,765

 

Satellite: 1.4%

 

 

 

 

 

 

 

 

 

 

 

Intelsat Zeus, Ltd.

 

B1

 

BB+

 

 

 

4,975,000

 

Term Loan, 5.250%, maturing July 28, 2011

 

 

 

 

 

5,023,198

 

 

 

New Skies Satellites, BV

 

B1

 

BB-

 

 

 

2,981,217

 

Term Loan, 5.875%, maturing May 02, 2011

 

 

 

 

 

3,023,539

 

 

 

Panamsat Corporation

 

Ba3

 

BB+

 

 

 

866,478

 

Term Loan, 5.359%, maturing

 

 

 

 

 

 

 

 

 

August 20, 2009

 

 

 

 

 

875,389

 

453,056

 

Term Loan, 5.359%, maturing

 

 

 

 

 

 

 

 

 

August 20, 2009

 

 

 

 

 

457,715

 

18,694,964

 

Term Loan, 5.650%, maturing

 

 

 

 

 

 

 

 

 

August 20, 2011

 

 

 

 

 

18,935,661

 

 

 

 

 

 

 

 

 

28,315,502

 

Telecommunications Equipment: 1.6%

 

 

 

 

 

 

 

 

 

AAT Communications Corporation

 

 

 

 

 

 

 

3,000,000

 

Term Loan, 5.610%, maturing July 27, 2012

 

B1

 

BB+

 

3,042,189

 

 

 

AAT Communications Corporation

 

 

 

 

 

 

 

1,000,000

 

Term Loan, 6.610%, maturing July 27, 2013

 

B2

 

BB

 

1,019,375

 

 

 

American Tower, L.P.

 

Ba3

 

BBB

 

 

 

6,000,000

 

Term Loan, 4.980%-5.150%, maturing

 

 

 

 

 

 

 

 

 

February 28, 2011

 

 

 

 

 

6,039,378

 

2,493,750

 

Term Loan, 4.900%-7.000%, maturing

 

 

 

 

 

 

 

 

 

August 31, 2011

 

 

 

 

 

2,520,765

 

 

 

SBA Senior Finance, Inc.

 

B1

 

BB

 

 

 

8,162,525

 

Term Loan, 5.540%-5.920%, maturing

 

 

 

 

 

 

 

 

 

October 31, 2008

 

 

 

 

 

8,242,452

 

 

 

Spectrasite Communications, Inc.

 

Ba3

 

BBB

 

 

 

7,960,000

 

Term Loan, 4.910%, maturing May 19, 2012

 

 

 

 

 

8,051,206

 

 

See Accompanying Notes to Financial Statements

 

51


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Telecommunications Equipment: (continued)

 

 

 

 

 

 

 

 

 

Syniverse Holding, LLC

 

Ba3

 

BB-

 

 

 

$  3,045,000

 

Term Loan, 5.670%-7.500%, maturing

 

 

 

 

 

 

 

 

 

February 15, 2012

 

 

 

 

 

$

3,079,256

 

 

 

 

 

 

 

 

 

31,994,621

 

Textiles & Leather: 0.6%

 

 

 

 

 

 

 

 

 

 

 (2)

Galey & Lord, Inc.

 

NR

 

NR

 

 

 

646,115

 (3)

Term Loan, maturing

 

 

 

 

 

 

 

 

 

September 05, 2009

 

 

 

 

 

133,531

 

 

 

Polymer Group, Inc.

 

B2

 

B+

 

 

 

1,866,667

 

Term Loan, 6.730%, maturing April 27, 2010

 

 

 

 

 

1,903,222

 

 

 

Propex Fabrics, Inc.

 

B3

 

B+

 

 

 

1,937,658

 

Term Loan, 5.740%, maturing

 

 

 

 

 

 

 

 

 

November 30, 2011

 

 

 

 

 

1,942,502

 

 

 

Springs Industries, Inc.

 

Ba3

 

BB-

 

 

 

985,000

 

Term Loan, 6.250%, maturing

 

 

 

 

 

 

 

 

 

December 24, 2010

 

 

 

 

 

984,693

 

 

 

St. John Knits International, Inc.

 

B1

 

B+

 

 

 

2,992,500

 

Term Loan, 6.000%, maturing

 

 

 

 

 

 

 

 

 

March 18, 2012

 

 

 

 

 

3,029,906

 

 

 

William Carter Company

 

B1

 

BB

 

 

 

4,000,000

 

Term Loan, 5.330%-5.811%, maturing

 

 

 

 

 

 

 

 

 

July 14, 2012

 

 

 

 

 

4,060,000

 

 

 

 

 

 

 

 

 

12,053,854

 

Utilities: 5.4%

 

 

 

 

 

 

 

 

 

 

 

Allegheny Energy Supply Company

 

Ba2

 

BB

 

 

 

13,537,128

 

Term Loan, 5.340%-5.359%, maturing

 

 

 

 

 

 

 

 

 

March 08, 2011

 

 

 

 

 

13,733,417

 

 

 

Calpine Corporation

 

B3

 

B-

 

 

 

982,406

 

Term Loan, 9.349%, maturing July 16, 2007

 

 

 

 

 

804,099

 

 

 

Cogentrix Delaware Holdings, Inc.

 

Ba2

 

BB+

 

 

 

6,532,743

 

Term Loan, 5.240%, maturing April 14, 2012

 

 

 

 

 

6,617,126

 

 

 

Coleto Creek Power

 

 

 

 

 

 

 

939,783

 

Term Loan, 5.680%, maturing June 30, 2011

 

Ba3

 

BB

 

957,404

 

 

 

Coleto Creek Power

 

 

 

 

 

 

 

1,000,000

 

Term Loan, 6.997%, maturing June 30, 2012

 

B1

 

BB-

 

1,022,500

 

 

 

Dynegy Holdings, Inc.

 

B2

 

BB-

 

 

 

7,425,000

 

Term Loan, 7.540%, maturing May 27, 2010

 

 

 

 

 

7,472,951

 

 

 

Kgen LLC

 

B2

 

B

 

 

 

6,982,500

 

Term Loan, 6.115%, maturing

 

 

 

 

 

 

 

 

 

August 01, 2011

 

 

 

 

 

6,965,044

 

 

 

La Paloma Generating Company

 

 

 

 

 

 

 

437,158

 

Term Loan, 3.509%, maturing

 

Ba3

 

BB-

 

 

 

 

 

August 16, 2012

 

 

 

 

 

444,399

 

1,400,000

 

Term Loan, 5.462%, maturing

 

Ba3

 

BB-

 

 

 

 

 

August 16, 2012

 

 

 

 

 

1,423,188

 

 

 

La Paloma Generating Company

 

 

 

 

 

 

 

1,000,000

 

Term Loan, 7.212%, maturing August 16, 2013

 

B2

 

B

 

1,023,750

 

 

See Accompanying Notes to Financial Statements

 

52


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

 

 

Bank Loan
Ratings†

 

 

 

Principal Amount

 

Borrower/Tranche Description

 

Moody’s

 

S&P

 

Value

 

Utilities: (continued)

 

 

 

 

 

 

 

 

 

 

 

NRG Energy, Inc.

 

Ba3

 

BB

 

 

 

$  3,609,375

 

Term Loan, 5.265%, maturing

 

 

 

 

 

 

 

 

 

December 24, 2011

 

 

 

 

 

$

3,655,997

 

5,114,922

 

Term Loan, 5.255%-5.365%, maturing

 

 

 

 

 

 

 

 

 

December 24, 2011

 

 

 

 

 

5,180,991

 

 

 

Pike Electric, Inc.

 

B1

 

BB-

 

 

 

2,734,302

 

Term Loan, 5.813%, maturing

 

 

 

 

 

 

 

 

 

July 01, 2012

 

 

 

 

 

2,768,480

 

1,642,918

 

Term Loan, 5.875%, maturing

 

 

 

 

 

 

 

 

 

December 10, 2012

 

 

 

 

 

1,663,454

 

 

 

Primary Energy Finance, LLC

 

Ba2

 

BB-

 

 

 

2,750,000

 

Term Loan, 5.641%, maturing

 

 

 

 

 

 

 

 

 

August 23, 2012

 

 

 

 

 

2,782,656

 

 

 

Reliant Energy Resources Corporation

 

B1

 

B+

 

 

 

26,875,000

 

Term Loan, 6.016%-6.089%, maturing

 

 

 

 

 

 

 

 

 

April 30, 2010

 

 

 

 

 

27,150,039

 

 

 

Riverside Energy Center, LLC

 

Ba3

 

BB-

 

 

 

403,552

 

Term Loan, 7.930%, maturing June 24, 2010

 

 

 

 

 

417,677

 

5,102,469

 

Term Loan, 7.930%, maturing June 24, 2011

 

 

 

 

 

5,281,055

 

3,531,036

 

Term Loan, 7.930%, maturing June 24, 2011

 

 

 

 

 

3,654,622

 

 

 

Texas Genco, LLC

 

Ba2

 

BB

 

 

 

5,217,693

 

Term Loan, 5.410%-5.490%, maturing

 

 

 

 

 

 

 

 

 

December 14, 2011

 

 

 

 

 

5,305,335

 

11,713,261

 

Term Loan, 5.410%-5.669%, maturing

 

 

 

 

 

 

 

 

 

December 14, 2011

 

 

 

 

 

11,910,009

 

 

 

 

 

 

 

 

 

110,234,193

 

 

 

Total Senior Loans
(Cost: $2,321,929,794)

 

 

 

 

 

2,344,265,260

 

 

 

 

 

 

 

 

 

Equities and Other Assets: 0.2%

 

 

 

 

 

 

 

 

 

 

Description

 

 

 

Value

 

 

(@), (R)

 

Decision One Corporation (371,025 Common Shares)

 

 

 

295,535

 

 

(@), (R)

 

Galey & Lord, Inc. (49,843 Common Shares)

 

 

 

—

 

 

(@)

 

Maxim Crane Works (39,321 Common Shares)

 

 

 

983,035

 

 

(@), (R)

 

Murray’s Discount Auto Stores, Inc. (Escrow Interest)

 

 

 

21,891

 

 

(@), (R)

 

Neoplan USA Corporation (1,627 Common Shares)

 

 

 

—

 

 

(@), (R)

 

Neoplan USA Corporation (170,180 Series B Preferred Shares)

 

 

 

—

 

 

(@), (R)

 

Neoplan USA Corporation (101,690 Series C Preferred Shares)

 

 

 

—

 

 

(@), (R)

 

Neoplan USA Corporation (330,600 Series D Preferred Shares)

 

 

 

—

 

 

See Accompanying Notes to Financial Statements

 

53


 

ING Senior Income Fund

 

 PORTFOLIO OF INVESTMENTS as of August 31, 2005 (Unaudited) (continued)

 

 

 

Description

 

 

 

Value

 

(@), (R)

 

New World Restaurant Group, Inc. (Warrants for 2,244
Common Shares, Expires June 15, 2006)

 

 

 

$

30,788

 

(@), (R)

 

Norwood Promotional Products, Inc. (48,177 Common Shares)

 

 

 

—

 

(@), (R)

 

Safelite Glass Corporation (395,186 Common Shares)

 

 

 

3,892,582

 

(@), (R)

 

Safelite Realty Corporation (26,675 Common Shares)

 

 

 

146,713

 

(@), (R)

 

Targus Group, Inc. (Warrants for 47,931 Common Shares, Expires December 6, 2012)

 

 

 

—

 

 

 

Total for Equities and Other Assets
(Cost: $1,413,556)

 

 

 

5,370,544

 

 

 

Total Investments
(Cost $2,323,343,350)

 

114.7

%

$

2,349,635,804

 

 

 

Other Assets and Liabilities — Net

 

(14.7

)

(301,854,262

)

 

 

Net Assets

 

100.0

%

$

2,047,781,542

 

 

*

 

Senior loans, while exempt from registration under the Securities Act of 1933, as amended, contain certain restrictions on resale and cannot be sold publicly. These senior loans bear interest (unless otherwise noted) at rates that float periodically at a margin above the London Inter-Bank Offered Rate (“LIBOR”) and other short-term rates.

†

 

Bank Loans rated below Baa by considered to be below investment grade.

NR

 

Not Rated

(2)

 

The borrower filed for protection under Chapter 11 of the U.S. Federal Bankruptcy code.

(3)

 

Loan is on non-accrual basis.

(4)

 

Trade pending settlement. Contract rates do not take effect until settlement date.

(@)

 

Non-income producing security.

(R)

 

Restricted security.

**

 

For Federal Income Tax purposes cost of investments is $2,323,738,188. Appreciation consists of the following:

 

 

 

Gross Unrealized Appreciation

 

$28,275,401

 

 

 

 

 

 

 

Gross Unrealized Depreciation

 

(2,377,785

)

 

 

 

 

 

 

Net Unrealized Appreciation

 

$25,897,616

 

 

 

 

 

 

See Accompanying Notes to Financial Statements

 

54


 

ING Senior Income Fund

 

 ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited)

 

 

The Board considered and approved the annual renewal of the terms of Senior Income Fund’s Investment Management and Sub-Advisory Agreements in August 2004 for the period September 1, 2004 through August 31, 2005.

 

In order to align the Fund’s annual renewal period with those of other Funds in the ING Funds line-up, the Fund’s Board of Trustees (the “Board”) renewed the terms of these agreements for an “interim” period commencing on September 1, 2005 and ending on November 30, 2005. The Board based its determination of whether to approve renewing the terms of the Fund’s Agreements for the interim period on information provided throughout the year, beginning in August 2004 in anticipation of the 2004 15(c) contract renewal and continuing at periodic meetings thereafter, as well as updated information provided in July 2005. In determining that this information was sufficient to support the interim renewal, the Board took into consideration that it would meet again, at a meeting to be held in November 2005, and that the Board’s Contracts Committee would meet in October 2005, to consider whether to approve the Investment Management Agreement and Sub-Advisory Agreement for the Fund for a 12-month period beginning on December 1, 2005 and ending November 30, 2005. The interim and subsequent November renewals place the Fund on a December 1 renewal cycle, and result in all of the Funds under the purview of the Board being placed on the same annual renewal cycle on a going-forward basis.

 

In considering whether to approve the Investment Management Agreement and Sub-Advisory Agreement for the Fund for the period ended August 31, 2005 and the interim period ending November 30, 2005, the Board considered a number of factors they believed, in light of the legal advice furnished to them by their independent legal counsel, and their own business judgment, to be relevant.

 

In connection with their deliberations on August 31, 2004 relating to the Fund’s current Investment Management Agreement and Sub-Advisory Agreement, the Board, including the Independent Trustees, considered information that had been provided by the Investment Manager and ING IM to the Fund throughout the year at regular Board Meetings, as well as information furnished for the August 2004 Board Meeting, which was held to specifically consider annual renewal of the Investment Management and Sub-Advisory Agreements. This information included the following items: (1) FACT sheets for the Fund that provide information about the performance and expenses of the Fund and its peer group (“Selected Peer Group”), as well as information about the Fund’s investment portfolio, objective and strategies; (2) 15(c) Methodology Guide that describes how the FACT sheets were prepared, including how benchmarks and peer groups were selected and how profitability was determined; (3) responses to questions from legal counsel to the Independent Trustees; (4) copies of the forms of Investment Management Agreement and Sub-Advisory Agreement applicable to the Fund; (5) copies of the respective Forms ADV for the Fund’s Investment Manager and ING IM; (6) financial statements for the Fund’s Investment Manager and ING IM; and (7) other information relevant to their evaluations.

 

In connection with their deliberations on July 21, 2005 relating to the Fund’s current Investment Management Agreement and Sub-Advisory Agreement, the Board, including the Independent Trustees, further considered information that had been provided by the Fund’s Investment Manager and ING IM throughout the year at regular Board Meetings, as well as information furnished for the July 2005 Board Meeting, which was held to specifically consider such renewals for the interim period ending November 30, 2005. This information included the following items: (1) updated performance information through May 31, 2005 with respect to the Fund; (2) responses to questions from legal counsel to the Independent Trustees; (3) copies of the forms of Investment Management Agreement and Sub-Advisory Agreement applicable to the Fund; (4) management’s representations that there were no changes in the management fee rate and expense ratio borne by the Fund since the August approval; and (5) other information relevant to their evaluations.

 

55


 

ING Senior Income Fund

 

 ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited)

 

 

The Board was also provided, in August 2004, with narrative summaries addressing key factors the Board customarily considers in evaluating the renewal of Investment Management and Sub-Advisory Agreements, including an analysis for the Fund of how performance and fees compare to its Selected Peer Group and designated benchmark.

 

The following paragraphs outline certain of the specific factors that the Board considered, and the conclusions reached, in relation to renewing the Fund’s current Investment Management Agreement and Sub-Advisory Agreement.

 

In its renewal deliberations for the Fund in August 2004, the Board considered that: (1) the management fee for the Fund is below the median and the average management fees of the funds in its Selected Peer Group, (2) the expense ratio for the Fund is equal to the median and below the average expense ratios of the funds in its Selected Peer Group, and (3) the portfolio managers have been consistent in their investment approach maintaining their fundamental credit discipline and focusing on higher quality securities that allow them to provide superior risk-adjusted returns.

 

In considering whether to approve the Fund’s interim period renewal, in July 2005 the Board further considered that, based on performance data for the periods ended May 31, 2005: (1) the Fund outperformed its primary benchmark for the three-year period ended May 31, 2005, but underperformed for the one-year, year-to-date, three-month and one-month periods; (2) the Fund underperformed the Lipper Category median for the three-year and one-year periods ended May 31, 2005, and outperformed for year-to-date, three-month and one-month periods; and (3) the Fund underperformed the Morningstar Category average for the one-month period ended May 31, 2005, and outperformed it for the three-year, one-year, year-to-date and three-month periods. The Board also noted that there would be further opportunity for review of performance and other relevant factors in the course of deliberations for the next annual renewal in November 2005.

 

After deliberations based on the above-listed factors, among others (including the Selected Peer Group data considered by the Board in August 2004 and representations that there had been no changes in the management fee rate and expense ratio borne by the Fund since the August approval), the Board renewed the Investment Management Agreement and Sub-Advisory Agreement for the Fund, for the period ended August 31, 2005 and the interim period ending November 30, 2005, because, among other conclusions: (1) the management fee of the Fund is competitive with that of its Selected Peer Group, (2) the expense ratio for the Fund is competitive with that of its Selected Peer Group, and (3) the Fund’s long-term relative performance has been reasonable.

 

56


 

Investment Manager

 

Distributor

ING Investments, LLC

 

ING Funds Distributor, LLC

7337 East Doubletree Ranch Road

 

7337 East Doubletree Ranch Road

Scottsdale, Arizona 85258

 

Scottsdale, Arizona 85258

 

 

1-800-334-3444

Sub-Adviser

 

 

ING Investment Management Co.

 

Transfer Agent

230 Park Avenue

 

DST Systems, Inc.

New York, New York 10169

 

P.O. Box 219368

 

 

Kansas City, Missouri 64141

Administrator

 

 

ING Funds Services, LLC

 

Custodian

7337 East Doubletree Ranch Road

 

State Street Bank and Trust Company

Scottsdale, Arizona 85258

 

801 Pennsylvania Avenue

1-800-992-0180

 

Kansas City, Missouri 64105

 

 

 

Institutional Investors and Analysts

 

Legal Counsel

Call ING Senior Income Fund

 

Dechert LLP

1-800-336-3436

 

1775 I Street, N.W.

 

 

Washington, D.C. 20006

Written Requests

 

 

Please mail all account inquiries and other comments to:

 

 

ING Senior Income Fund

 

 

c/o ING Funds Services, LLC

 

 

7337 East Doubletree Ranch Road

 

 

Scottsdale, Arizona 85258

 

 

 

Toll-Free Shareholder Information

Call us from 9:00 a.m. to 7:00 p.m. Eastern time on any business day for account or other information, at (800) 992-0180

 

For more complete information, or to obtain a prospectus on any ING fund, please call your Investment Professional or ING Funds Distributor, LLC at (800) 992-0180 or log on to www.ingfunds.com. The prospectus should be read carefully before investing. Consider the fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this information and other information about the fund.

 

 

 

PRSAR-USIF

 

(0805-102805)

 


ITEM 2.                             CODE OF ETHICS.

 

Not required for semi-annual filing.

 

ITEM 3.                             AUDIT COMMITTEE FINANCIAL EXPERT.

 

Not required for semi-annual filing.

 

ITEM 4.                             PRINCIPAL ACCOUNTANT FEES AND SERVICES.

 

Not required for semi-annual filing.

 

ITEM 5.                             AUDIT COMMITTEE OF LISTED REGISTRANTS.

 

Not required for semi-annual filing.

 

ITEM 6.                             SCHEDULE OF INVESTMENTS.

 

Schedule is included as part of the report to shareholders filed under Item 1 of

this Form.

 

ITEM 7.                             DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not required for semi-annual filing.

 

ITEM 8.                             PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable.

 

ITEM 9.                             PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

 

Not applicable.

 

ITEM 10.                       SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

 

The Board has a Nominating Committee for the purpose of considering and presenting to the Board candidates it proposes for nomination to fill Independent Trustee vacancies on the Board.  The Committee currently consists of all Independent Trustees of the Board (6 individuals).  The Nominating Committee operates pursuant to a Charter approved by the Board. The primary purpose of the Nominating Committee is to consider and present to the Board the candidates it proposes for nomination to fill vacancies on the Board. In evaluating candidates, the Nominating Committee may consider a variety of factors, but it has not at this time set any specific minimum qualifications that must be met.  Specific qualifications of candidates for Board membership will be based on the needs of the Board at the time of nomination.

 

The Nominating Committee is willing to consider nominations received from shareholders and shall assess shareholder nominees in the same manner as it reviews its own nominees.  A shareholder nominee for director should be submitted in writing to the Fund’s Secretary. Any such shareholder nomination should include at a minimum the following information as to each individual proposed for nomination as trustee: such individual’s written consent to be named in the proxy statement as a nominee (if nominated) and to serve as a trustee (if elected), and all information relating to such individual that is required to be disclosed in the solicitation of proxies for election of trustees, or is otherwise required, in each case under applicable federal securities laws, rules and regulations.

 

The Secretary shall submit all nominations received in a timely manner to the Nominating Committee.  To be timely, any such submission must be delivered to the Fund’s Secretary not earlier than the 90th day prior to such meeting and not later than the close of business on the later of the 60th day prior to such meeting or the 10th day following the day on which public announcement of the date of the meeting is first made, by either disclosure in a press release or in a document publicly filed by the Fund with the Securities and Exchange Commission.

 


 

ITEM 11.                       CONTROLS AND PROCEDURES.

 

(a)                                  Based on our evaluation conducted within 90 days of the filing date, hereof, the design and operation of the registrant’s disclosure controls and procedures are effective to ensure that material information relating to the registrant is made known to the certifying officers by others within the appropriate entities, particularly during the period in which Forms N-CSR are being prepared, and the registrant’s disclosure controls and procedures allow timely preparation and review of the information for the registrant’s Form N-CSR and the officer certifications of such Form N-CSR.

 

(b)                                 There were no significant changes in the registrant’s internal controls that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 12.                       EXHIBITS.

 

(a)(1)                    The Code of Ethics is not required for the semi-annual filing.

 

(a)(2)                    A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached hereto as EX-99.CERT.

 

(a)(3)                    Not required for semi-annual filing.

 

(b)                                 The officer certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.906CERT

 


 

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.

 

(Registrant): ING Senior Income Fund

 

By

/s/

James M. Hennessy

 

 

 

James M. Hennessy

 

 

President and Chief Executive Officer

 

 

 

 

Date:

November 3, 2005

 

 

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/

James M. Hennessy

 

 

 

James M. Hennessy

 

 

President and Chief Executive Officer

 

 

Date:

November 3, 2005

 

 

 

 

 

By

/s/

Todd Modic

 

 

 

Todd Modic

 

 

Senior Vice President and Chief Financial Officer

 

 

 

 

Date:

November 3, 2005