-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Gt8prsaI/rNAaBHcu6ela11RX8G3I6ELGuJDbS2B5awYGIsGHzJMHXUerWcGUiL2 xHYSuh7lg2i7MlwQ4o8N4A== 0001072613-06-001918.txt : 20060905 0001072613-06-001918.hdr.sgml : 20060904 20060905135919 ACCESSION NUMBER: 0001072613-06-001918 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060630 FILED AS OF DATE: 20060905 DATE AS OF CHANGE: 20060905 EFFECTIVENESS DATE: 20060905 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MASSMUTUAL CORPORATE INVESTORS CENTRAL INDEX KEY: 0000275694 IRS NUMBER: 042483041 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-02183 FILM NUMBER: 061073497 BUSINESS ADDRESS: STREET 1: 1500 MAIN STREET STREET 2: SUITE 600 CITY: SPRINGFIELD STATE: MA ZIP: 01115 BUSINESS PHONE: 4132261000 MAIL ADDRESS: STREET 1: 1500 MAIN STREET STREET 2: SUITE 600 CITY: SPRINGFIELD STATE: MA ZIP: 01115 N-CSRS 1 formn-csr_14501.txt FORM N-CSR (6/30/06) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-2183 --------------------------------------------- MassMutual Corporate Investors - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 1500 Main Street, Suite 600, Springfield, MA 01115 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Rodney J. Dillman, Vice President and Secretary 1500 Main Street, Suite 2800, Springfield, MA 01115 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 413-226-1000 ---------------------------- Date of fiscal year end: 12/31 ------------------ Date of reporting period: 6/30/06 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORT TO STOCKHOLDERS. Attached hereto is the semi-annual shareholder report transmitted to shareholders pursuant to Rule 30e-1 of the Investment Company Act of 1940, as amended. MassMutual Corporate Investors Report for the Six Months Ended June 30, 2006 [LOGO] ADVISER Babson Capital Management LLC 1500 Main Street Springfield, Massachusetts 01115 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM KPMG LLP Boston, Massachusetts 02110 COUNSEL TO THE TRUST Ropes & Gray LLP Boston, Massachusetts 02110 CUSTODIAN Citibank, N.A. New York, New York 10043 TRANSFER AGENT & REGISTRAR Shareholder Financial Services, Inc. P.O. Box 173673 Denver, Colorado 80217-3673 1-800-647-7374 Internet Website: www.babsoncapital.com/mci MassMutual Corporate Investors c/o Babson Capital Management LLC [LOGO] 1500 Main Street, Suite 600 Springfield, Massachusetts 01115 (413) 226-1516 INVESTMENT OBJECTIVE AND POLICY MassMutual Corporate Investors (the "Trust") is a closed-end management investment company, first offered to the public in 1971, whose shares are traded on the New York Stock Exchange under the trading symbol "MCI". The Trust's share price can be found in the financial section of most newspapers as "MassCp" or "MassMuInv" under the New York Stock Exchange listings. The Trust's investment objective is to maintain a portfolio of securities providing a fixed yield while providing an opportunity for capital gains. The Trust's principal investments are privately placed, below-investment grade, long-term corporate debt obligations with equity features such as warrants, conversion rights, or other equity features and, occasionally, preferred stocks. The Trust typically purchases these investments, which are not publicly tradable, directly from their issuers, which tend to be smaller companies. In addition, the Trust may temporarily invest, subject to certain limitations, in marketable investment grade debt securities, other marketable debt securities (including high yield securities) and marketable common stocks. Babson Capital Management LLC ("Babson Capital") manages the Trust on a total return basis. The Trust distributes substantially all of its net income to shareholders each year. Accordingly, the Trust pays dividends to shareholders quarterly in January, May, August, and November. The Trust pays dividends to its shareholders in cash, unless the shareholder elects to participate in the Dividend Reinvestment and Share Purchase Plan. FORM N-Q The Trust files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. This information is available (i) on the SEC's website at http://www.sec.gov; and (ii) at the SEC's Public Reference Room in Washington, DC (which information on their operation may be obtained by calling 1-800-SEC-0330). A complete schedule of portfolio holdings as of each quarter-end is available upon request by calling, toll-free, 866-399-1516. PROXY VOTING POLICIES & PROCEDURES; PROXY VOTING RECORD The Trustees of the Trust have delegated proxy voting responsibilities relating to the voting of securities held by the Trust to Babson Capital. A description of Babson Capital's proxy voting policies and procedures is available (1) without charge, upon request, by calling, toll-free 866-399-1516; (2) on the Trust's website: http://www.babsoncapital.com/mci; and (3) on the SEC's website at http://www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (1) on the Trust's website: http://www.babsoncapital.com/mci; and (2) on the SEC's website at http://www.sec.gov. MCI Listed NYSE TO OUR SHAREHOLDERS August 9, 2006 We are pleased to present the June 30, 2006 Semi-Annual Report of MassMutual Corporate Investors (the "Trust"). At the Trust's Quarterly Board of Trustees Meeting, which was held on July 18, 2006, the Trustees appointed William J. Barrett as a Trustee, thereby increasing the size of the Board from eight to nine. Mr. Barrett is currently President of Barrett-Gardner Associates, Inc., an investment banking firm. The Trust's Board of Trustees declared an increase in the quarterly dividend to 50 cents per share, payable on August 14, 2006 to shareholders of record on July 28, 2006. A dividend of 48 cents per share was paid in the previous quarter. U.S. equity markets, as measured by several broad market indices, posted mixed returns. During the quarter ended June 30, 2006, large company stocks, as approximated by the Dow Jones Industrial Average, increased 0.94%, while smaller company stocks, as approximated by the Russell 2000 Index, decreased 5.02%. For the six months ended June 30, 2006, returns were 5.22% and 8.21%, respectively. U.S. fixed income markets, as measured by selected indices, were also mixed during the quarter. The Lehman Brothers Government/Credit Index and the Lehman Brothers U.S. Corporate High Yield Index decreased 0.14% and increased 0.25%, respectively, for the quarter. For the six months ended June 30, 2005, returns were -1.15% and 3.14%, respectively. For the quarter ended June 30, 2006, the Trust earned 53 cents per share, of which 3 cents per share was from nonrecurring items. The Trust earned 56 cents per share in the previous quarter, of which 6 cents per share was from nonrecurring items. The Trust's net assets as of June 30, 2006 totaled $257,216,961 or $28.21 per share compared to $249,955,368 or $27.47 per share on March 31, 2006. This translated into a net portfolio return of 4.51% for the quarter, and 10.17% for the six months ended June 30, 2006, based on the change in the Trust's net assets assuming the reinvestment of all dividends. Long term, the Trust's portfolio had average annualized returns of 22.37%, 16.10%, 14.97%, and 15.53% for the 1-, 5-, 10- and 25- year time periods ended June 30, 2006, respectively, based on change in net assets with the reinvestment of all dividends. During the quarter, the Trust made private placement investments in six new issuers and closed two "follow-on" investments, totaling approximately $12.4 million. The follow-on investments purchased by the Trust were in Eagle Pack Pet Foods, Inc. and Terra Renewal Services, Inc. The six new issuers the Trust invested in were Bravo Sports Holding Corporation, F H S Holdings LLC, Flutes, Inc., K N B Holdings Corporation, Magnatech International, Inc. and Overton's Holding Company. The weighted average coupon of the bond portion of these investments was 12.12%. (A brief description of these investments can be found in the Consolidated Schedule of Investments.) Thank you for your continued interest in and support of MassMutual Corporate Investors. Sincerely, PORTFOLIO COMPOSITION AS OF 06/30/06* /s/ Clifford M. Noreen [PIE CHART APPEARS HERE] - -------------------------- President Private High Yield Debt 45.5% Private Investment Grade Debt 5.9% Private/Restricted Equity 16.4% Cash & Short Term Investments 5.1% Public High Yield Debt 25.6% *Based on market value of total investments - -------------------------------------------------------------------------------- 1 CONSOLIDATED STATEMENT OF MASSMUTUAL CORPORATE INVESTORS ASSETS AND LIABILITIES June 30, 2006 (Unaudited)
ASSETS: Investments (See Consolidated Schedule of Investments) Corporate restricted securities at fair value (Cost - $181,360,142) $183,786,156 Corporate public securities at market value (Cost - $73,647,223) 73,371,640 Short-term securities at amortized cost 6,500,871 ------------ 263,658,667 Cash 7,341,021 Interest receivable 5,363,967 Receivable for investments sold 3,182,042 Other assets 12,968 ------------ TOTAL ASSETS $279,558,665 ------------ LIABILITIES: Payable for investments purchased $ 827,710 Investment advisory fee payable 803,803 Note payable 20,000,000 Interest payable 187,711 Accrued expenses 159,421 Accrued taxes payable 363,059 ------------ TOTAL LIABILITIES 22,341,704 ------------ TOTAL NET ASSETS $257,216,961 ============ NET ASSETS: Common shares, par value $1.00 per share; an unlimited number authorized $ 9,117,418 Additional paid-in capital 107,215,641 Retained net realized gain on investments, prior years 115,317,244 Undistributed net investment income 7,083,103 Undistributed net realized gain on investments 16,479,477 Net unrealized appreciation of investments 2,004,078 ------------ TOTAL NET ASSETS $257,216,961 ============ COMMON SHARES ISSUED AND OUTSTANDING 9,117,418 ============ NET ASSET VALUE PER SHARE $ 28.21 ============ SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------------------- 2
CONSOLIDATED STATEMENT OF OPERATIONS MASSMUTUAL CORPORATE INVESTORS For the six months ended June 30, 2006 (Unaudited)
INVESTMENT INCOME: Interest $ 11,572,161 Dividends 980,831 ------------ TOTAL INVESTMENT INCOME 12,552,992 ------------ EXPENSES: Investment advisory fees 1,584,914 Professional fees 81,500 Interest 757,596 Trustees' fees and expenses 90,000 Reports to shareholders 56,000 Transfer agent/registrar's expenses 16,000 Other 14,218 ------------ TOTAL EXPENSES 2,600,228 ------------ INVESTMENT INCOME - NET 9,952,764 ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investments before taxes 15,226,417 Income tax expense (350,255) ------------ Net realized gain on investments 14,876,162 Net change in unrealized appreciation of investments before taxes (1,202,623) Net change in deferred income tax expense 129,220 ------------ Net change in unrealized appreciation of investments (1,073,403) NET GAIN ON INVESTMENTS 13,802,759 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 23,755,523 ============ SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------------------- 3
CONSOLIDATED STATEMENT OF CASH FLOWS MASSMUTUAL CORPORATE INVESTORS For the six months ended June 30, 2006 (Unaudited)
NET INCREASE IN CASH: Cash flows from operating activities: Interest and dividends received $ 11,681,799 Interest expense paid (757,596) Operating expenses paid (1,791,996) Income taxes paid (7,430,442) ------------ NET CASH PROVIDED BY OPERATING ACTIVITIES 1,701,765 ------------ Cash flows from investing activities: Purchases/Proceeds/Maturities from short-term portfolio securities, net 17,851,861 Purchase of portfolio securities (51,962,963) Proceeds from disposition of portfolio securities 45,351,995 ------------ NET CASH PROVIDED BY INVESTING ACTIVITIES 11,240,893 ------------ NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES 12,942,658 ------------ Cash flows from financing activities: Cash dividends paid from net investment income (12,616,957) Receipts for shares issued on reinvestment of dividends 1,553,870 ------------ NET CASH USED FOR FINANCING ACTIVITIES (11,063,087) ------------ NET INCREASE IN CASH 1,879,571 Cash - beginning of year 5,461,450 ------------ CASH - END OF PERIOD $ 7,341,021 ============ RECONCILIATION OF NET INCREASE IN NET ASSETS TO NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES: NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 23,755,523 ------------ Increase in investments (1,911,824) Increase in interest and dividends receivable (341,251) Increase in receivable for investments sold (2,264,937) Decrease in other assets 36,207 Increase in payable for investments purchased 827,710 Increase in investment advisory fee payable 65,442 Decrease in accrued expenses (14,805) Decrease in accrued taxes payable (7,209,407) ------------ TOTAL ADJUSTMENTS TO NET ASSETS FROM OPERATIONS (10,812,865) ------------ NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES $ 12,942,658 ============ SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------------------- 4
CONSOLIDATED STATEMENTS OF MASSMUTUAL CORPORATE INVESTORS CHANGES IN NET ASSETS
For the six months ended For the 06/30/2006 year ended (Unaudited) 12/31/2005 ------------ ------------ INCREASE IN NET ASSETS: OPERATIONS: Investment income - net $ 9,952,764 $ 18,371,097 Net realized gain on investments 14,876,162 15,531,627 Net change in unrealized appreciation of investments (1,073,403) 2,199,515 ------------ ------------ Net increase in net assets resulting from operations 23,755,523 36,102,239 Increase from common shares issued on reinvestment of dividends Common shares issued (2006 - 52,465; 2005 - 86,526) 1,553,870 2,375,977 Dividends to shareholders from: Net investment income (2006 - $0.48 per share; 2005 - $2.11 per share) (4,367,850) (19,033,162) Net realized gains on investments (2005 - $0.18 per share) -- (1,674,784) ------------ ------------ TOTAL INCREASE IN NET ASSETS 20,941,543 17,770,270 NET ASSETS, BEGINNING OF YEAR 236,275,418 218,505,148 ------------ ------------ NET ASSETS, END OF PERIOD/YEAR (including undistributed net investment income of $7,083,103 and $1,848,444, respectively) $257,216,961 $236,275,418 ============ ============ SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------------------------------------- 5
CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS MASSMUTUAL CORPORATE INVESTORS Selected data for each common share outstanding:
For the six months For the years ended December 31, ended 06/30/2006 ---------------------------------------------------------------------- (Unaudited) 2005 2004 2003 2002 2001 ---------- ---------- ---------- ---------- ---------- ---------- Net asset value: Beginning of year $ 26.06 $ 24.34 $ 21.84 $ 19.40 $ 20.07 $ 20.74 ---------- ---------- ---------- ---------- ---------- ---------- Net investment income (a) 1.09 2.03 2.00 1.44 1.53 1.70 Net realized and unrealized gain (loss) on investments 1.52 1.96 (b) 2.64 2.83 (0.59) (0.53) ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations 2.61 3.99 4.64 4.27 0.94 1.17 ---------- ---------- ---------- ---------- ---------- ---------- Dividends from net investment income to common shareholders (0.48) (2.11) (2.16) (1.84) (1.44) (1.79) Distributions from net realized gain on investments to common shareholders -- (0.18) -- -- (0.18) (0.09) Change from issuance of shares 0.02 0.02 0.02 0.01 0.01 0.04 ---------- ---------- ---------- ---------- ---------- ---------- Total distributions (0.46) (2.27) (2.14) (1.83) (1.61) (1.84) ---------- ---------- ---------- ---------- ---------- ---------- Net asset value: End of period/year $ 28.21 $ 26.06 $ 24.34 $ 21.84 $ 19.40 $ 20.07 ---------- ---------- ---------- ---------- ---------- ---------- Per share market value: End of period/year $ 31.70 $ 30.05 $ 28.50 $ 22.90 $ 19.49 $ 20.70 ========== ========== ========== ========== ========== ========== Total investment return Market value 7.17% 16.95% 36.10% 27.53% 1.35% 1.88% Net asset value (c) 10.17% 20.04% 22.76% 22.61% 4.80% 5.91% Net assets (in millions): End of period/year $ 257.22 $ 236.28 $ 218.51 $ 193.79 $ 171.03 $ 175.11 Ratio of operating expenses to average net assets 1.51%(d) 1.78% 1.93% 2.04% 1.82% 1.72% Ratio of interest expense to average net assets 0.62%(d) 0.73% 0.77% 0.82% 0.86% 0.84% Ratio of total expenses to average net assets 2.13%(d) 2.51% 2.70% 2.86% 2.68% 2.56% Ratio of net investment income to average net assets 8.14%(d) 7.98% 8.68% 6.95% 7.65% 8.20% Portfolio turnover 19.14% 35.22% 53.45% 56.10% 34.02% 24.48% (a) Calculated using average shares. (b) Amount includes $0.19 per share in litigation proceeds. (c) Net asset value return represents portfolio returns based on change in the Trust's net asset value assuming the reinvestment of all dividends and distributions which differs from the total investment return based on the Trust's market value due to the difference between the Trust's net asset value and the market value of its shares outstanding; past performance is no guarantee of future results. (d) Annualized. Senior securities: Total principal amount (in millions) $ 20 $ 20 $ 29 $ 20 $ 20 $ 20 Asset coverage per $1,000 of indebtedness $ 13,861 $ 12,814 $ 8,535 $ 10,689 $ 9,551 $ 9,756 CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- 6 CONSOLIDATED SCHEDULE OF INVESTMENTS MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES - 71.45%: (A) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- PRIVATE PLACEMENT INVESTMENTS - 66.24% A T I ACQUISITION COMPANY A for-profit post-secondary school serving students in Texas, Florida and Arizona. 12% Senior Subordinated Note due 2012 $ 2,125,000 04/08/04 $ 2,125,000 $ 1,880,582 Warrant, exercisable until 2012, to purchase common stock at $.02 per share (B) 2,323 shs. 04/08/04 -- 23 Warrant, exercisable until 2012, to purchase preferred stock at $.01 per share (B) 63,287 shs. 03/23/06 63,958 633 ------------- ------------- 2,188,958 1,881,238 ------------- ------------- ADORN, INC. A manufacturer of wall panels, cabinets, moldings and countertops for houses and recreational vehicles. 12.5% Subordinated Note due 2010 $ 2,125,000 02/29/00 1,988,763 2,125,000 Warrant, exercisable until 2010, to purchase common stock at $.02 per share (B) 364 shs. 02/29/00 307,759 523,541 ------------- ------------- 2,296,522 2,648,541 ------------- ------------- AMERCABLE INC. A manufacturer of electric power, instrumentation and control cables, primarily for the mining and oil and gas industries. 12% Senior Subordinated Note due 2013 $ 1,101,852 04/08/05 1,042,071 1,105,367 Limited Partnership Interest (B) 0.36% int. 04/07/05 78,704 121,048 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 125 shs. 04/08/05 122,463 192,047 ------------- ------------- 1,243,238 1,418,462 ------------- ------------- AMERICAN HOSPICE MANAGEMENT HOLDING LLC A for-profit hospice care provider in the United States. 12% Senior Subordinated Note due 2010 $ 2,125,000 01/22/04 1,930,223 2,132,969 Preferred Class A Unit (B) 2,525 uts. 01/22/04 252,500 227,250 Common Class B Unit (B) 30,420 uts. 01/22/04 1 291,840 ------------- ------------- 2,182,724 2,652,059 ------------- ------------- ARROW TRU-LINE HOLDINGS, INC. A manufacturer of hardware for residential and commercial overhead garage doors in North America. 12% Senior Subordinated Note due 2012 $ 1,627,660 05/18/05 1,527,212 1,635,086 Common Stock (B) 497 shs. 05/18/05 497,340 653,505 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 130 shs. 05/18/05 112,128 171,319 ------------- ------------- 2,136,680 2,459,910 ------------- ------------- AUGUSTA SPORTSWEAR HOLDING CO. A manufacturer and distributor of athletic apparel, activewear and team uniforms. 12% Senior Subordinated Note due 2012 $ 1,686,800 12/31/04 1,581,233 1,691,737 Common Stock (B) 520 shs. * 519,622 934,866 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 137 shs. 12/31/04 119,482 247,358 ------------- ------------- 2,220,337 2,873,961 ------------- ------------- *12/31/04, 03/31/05 and 05/02/06. - --------------------------------------------------------------------------------------------------------------------------------- 7
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- BEACON MEDICAL PRODUCTS, INC. A designer, manufacturer and marketer of medical air and gas distribution systems. 9% Senior Secured Revolving Credit Facility due 2007 (C) $ 230,636 04/09/02 $ 230,636 $ 230,636 9% Senior Secured Tranche A Note due 2008 (C) $ 542,056 04/09/02 542,056 542,056 12% Senior Secured Note due 2010 $ 721,196 04/09/02 641,802 721,196 Limited Partnership Interest of Riverside Capital Appreciation Fund IV, L.P. (B) 8.91% int. 04/09/02 152,329 599,567 Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 1,390 shs. 04/09/02 127,497 546,962 ------------- ------------- 1,694,320 2,640,417 ------------- ------------- BETA BRANDS LTD. A manufacturer of hard candy and chocolate-coated products sold primarily to the Canadian market. 5% Promissory Note due 2009 (B) $ 195,498 03/31/04 195,498 -- Warrant, exercisable until 2009, to purchase common stock at $.01 per share (B) 4,895 shs. 03/31/04 1 -- ------------- ------------- 195,499 -- ------------- ------------- BRAVO SPORTS HOLDING CORPORATION A designer and marketer of niche branded consumer products including canopies, trampolines, in-line skates, skateboards, and urethane wheels. 12.5% Senior Subordinated Note due 2014 $ 2,281,593 06/30/06 2,143,859 2,224,781 Preferred Stock Class A (B) 879 shs. 06/30/06 268,121 254,713 Common Stock (B) 1 shs. 06/30/06 286 272 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 309 shs. 06/30/06 92,102 3 ------------- ------------- 2,504,368 2,479,769 ------------- ------------- C & J SPEC-RENT SERVICES, INC. A provider of coiled tubing and pressure pumping services to the oil and gas industry in Texas and Louisiana. 10% Senior Secured Term Note due 2012 $ 1,551,492 08/12/05 1,551,492 1,583,961 14% Senior Subordinated Note due 2013 $ 1,143,018 08/12/05 1,043,241 1,157,230 Common Stock (B) 470,150 shs. 08/12/05 470,150 901,278 Warrants, exercisable until 2013, to purchase common stock at $.01 per share (B) 86,716 shs. 08/12/05 106,592 166,235 ------------- ------------- 3,171,475 3,808,704 ------------- ------------- C & M CONVEYOR, INC. A manufacturer and supplier of material handling systems to the corrugated sheet and container industry. 9.5% Senior Secured Term Note due 2007 $ 759,036 09/13/02 759,036 759,897 11% Senior Subordinated Note due 2010 $ 838,102 09/13/02 810,903 841,701 Common Stock (B) 316,265 shs. 09/13/02 316,265 711,596 Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 137,175 shs. 09/13/02 60,250 308,644 ------------- ------------- 1,946,454 2,621,838 ------------- ------------- CAINS FOODS, L.P. A producer of mayonnaise and sauce products for both the retail and food service markets. Limited Partnership Interest (B) 3.69 % int. 09/29/95 45,046 323,911 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 8
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- CAPESUCCESS LLC A provider of diversified staffing services. Preferred Membership Interests (B) 1,882 uts. 04/29/00 $ 8,396 $ 420 Common Membership Interests (B) 24,318 uts. 04/29/00 108,983 5,442 ------------- ------------- 117,379 5,862 ------------- ------------- CAPITAL SPECIALTY PLASTICS, INC. A producer of desiccant strips used for packaging pharmaceutical products. Common Stock (B) 109 shs. * 503 55,408 ------------- ------------- COEUR, INC. A producer of proprietary, disposable power injection syringes. 8.75% Senior Secured Term Note due 2010 $ 462,862 04/30/03 462,862 462,763 11.5% Senior Subordinated Note due 2011 $ 424,819 04/30/03 395,272 424,973 Common Stock (B) 126,812 shs. 04/30/03 126,812 223,696 Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 87,672 shs. 04/30/03 40,804 154,653 ------------- ------------- 1,025,750 1,266,085 ------------- ------------- COINING CORPORATION OF AMERICA LLC A manufacturer of close tolerance parts and metal stampings. 10.74% Senior Secured Revolving Credit Facility due 2007 (C) $ 108,025 01/07/02 108,025 108,025 10.21% Senior Secured Tranche A Note due 2007 (C) $ 759,887 06/26/01 759,887 743,185 13% Senior Secured Tranche B Note due 2008 $ 648,148 06/26/01 648,148 639,020 Limited Partnership Interest (B) 6.38% int. 06/26/01 324,074 291,667 Warrant, exercisable until 2008, to purchase common stock at $.01 per share (B) 107,036 shs. 06/26/01 79,398 152,205 ------------- ------------- 1,919,532 1,934,102 ------------- ------------- CONNOR SPORT COURT INTERNATIONAL, INC. A designer and manufacturer of outdoor and indoor synthetic sports flooring and other temporary flooring products. 12% Senior Subordinated Note due 2012 (D) $ 2,001,121 ** 1,840,888 1,801,009 Limited Partnership Interest (B) 7.74% int. *** 189,586 1,896 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 174 shs. ** 160,233 2 ------------- ------------- 2,190,707 1,802,907 ------------- ------------- CONSOLIDATED FOUNDRIES HOLDINGS A manufacturer of engineered cast metal components for the global aerospace and defense industries. 12% Senior Subordinated Note due 2013 $ 2,185,714 06/15/05 2,093,225 2,133,929 Common Stock (B) 509 shs. **** 526,096 457,839 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 103 shs. 06/15/05 100,668 1 ------------- ------------- 2,719,989 2,591,769 ------------- ------------- *12/30/97 and 05/29/99. **08/12/04 and 01/18/05. ***08/12/04 and 01/14/05. ****06/15/05 and 05/22/06. - --------------------------------------------------------------------------------------------------------------------------------- 9
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- COREPHARMA LLC A manufacturer of oral dose generic pharmaceuticals targeted at niche applications. 12% Senior Subordinated Note due 2013 $ 2,550,000 08/04/05 $ 2,421,361 $ 2,480,933 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 20 shs. 08/04/05 137,166 -- ------------- ------------- 2,558,527 2,480,933 ------------- ------------- CORVEST GROUP, INC. A manufacturer and distributor of promotional products. 12% Senior Subordinated Note due 2009 (D) $ 3,863,636 * 3,743,862 965,909 Common Stock (B) 56 shs. * 96,591 -- Limited Partnership Interest (B) 19.32% int. * 284,052 -- Warrant, exercisable until 2007, to purchase common stock at $.01 per share (B) 324 shs. * 297,203 -- ------------- ------------- 4,421,708 965,909 ------------- ------------- DEXTER MAGNETICS TECHNOLOGIES, INC. A designer, fabricator, assembler and distributor of industrial magnets and subassemblies in North America and Europe. Common Stock (B) 585 shs. 07/19/01 585,145 805,529 Warrant, exercisable until 2006, to purchase common stock at $.01 per share (B) 297 shs. 07/19/01 250,611 408,278 ------------- ------------- 835,756 1,213,807 ------------- ------------- DIRECTED ELECTRONICS, INC. A designer and distributor of brand name automotive security systems, audio products and installation accessories. Common Stock (B) 239,547 shs. 12/19/05 76,530 2,828,569 Limited Partnership Interest (B) 8.70% int. ** 49,531 567,475 ------------- ------------- 126,061 3,396,044 ------------- ------------- DIVERSCO, INC./DHI HOLDINGS, INC. A contract provider of janitorial and equipment maintenance services and temporary production labor to industrial customers. Membership Interests of MM/Lincap Diversco Investments Ltd. LLC (B) 27.19% int. 08/27/98 734,090 -- Preferred Stock (B) 3,278 shs. 12/14/01 2,784,133 2,505,724 Warrants, exercisable until 2011, to purchase common stock of DHI Holdings, Inc. at $.01 per share (B) 13,352 shs. *** 403,427 -- ------------- ------------- 3,921,650 2,505,724 ------------- ------------- DWYER GROUP, INC. A franchiser of a variety of home repair services. 14% Senior Subordinated Note due 2011 $ 1,859,375 10/30/03 1,710,873 1,880,701 Common Stock (B) 6,906 shs. **** 690,600 718,224 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 2,034 shs. 10/30/03 186,469 211,493 ------------- ------------- 2,587,942 2,810,418 ------------- ------------- E X C ACQUISITION CORPORATION A manufacturer of pre-filled syringes and pump systems used for intravenous drug delivery. Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 22 shs. 06/28/04 77,208 148,852 ------------- ------------- *03/05/99 and 03/24/99. **12/22/99 and 09/14/05. ***10/24/96 and 8/28/98. ****10/30/03 and 01/02/04. - --------------------------------------------------------------------------------------------------------------------------------- 10
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- EAGLE PACK PET FOODS, INC. A manufacturer of premium pet food sold through independent pet stores. 12% Senior Subordinated Note due 2011 $ 1,517,857 * $ 1,476,424 $ 1,516,699 Warrant, exercisable until 2011, to purchase common stock at $.02 per share (B) 4,085 shs. 09/24/04 39,464 83,975 ------------- ------------- 1,515,888 1,600,674 ------------- ------------- EAST RIVER VENTURES I, L.P. An acquirer of controlling or substantial interests in other entities. Limited Partnership Interest (B) 0.14% int. 01/01/01 26,421 8,104 ------------- ------------- ENZYMATIC THERAPY, INC A manufacturer and distributor of branded natural medicines and nutritional supplements Limited Partnership Interest (B) 1.32% int. 03/30/00 531,250 63,750 Warrant, exercisable until 2009, to purchase common stock at $.01 per share (B) 29,117 shs. 03/30/00 255,000 42,500 ------------- ------------- 786,250 106,250 ------------- ------------- EURO-PRO CORPORATION A designer, marketer and distributor of floor care, steam cleaning and small kitchen products and appliances. 13.25% Senior Subordinated Note due 2011 $ 2,125,000 09/09/03 2,089,359 212,500 16.03% Overdue Interest Secured Note due 2008 (C) $ 143,465 01/13/06 129,118 129,118 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 43,878 shs. 09/09/03 35,641 -- ------------- ------------- 2,254,118 341,618 ------------- ------------- EVANS CONSOLES, INC. A designer and manufacturer of consoles and control center systems Common Stock (B) 90,000 shs. 05/06/04 6 -- ------------- ------------- 6 -- ------------- ------------- F H S HOLDINGS LLC A national provider of customized disease management services to large, self-insured employers. 12% Senior Subordinated Note due 2014 $ 2,390,625 06/01/06 2,220,968 2,375,701 Preferred Unit (B) 158 uts. 06/01/06 157,780 142,002 Common Unit (B) 1,594 uts. 06/01/06 1,594 1,434 Common Unit Class B (B) 1,386 uts. 06/01/06 122,361 110,125 ------------- ------------- 2,502,703 2,629,262 ------------- ------------- FLUTES, INC. An independent manufacturer of micro fluted corrugated sheet material for the food and consumer products packaging industries. 10% Senior Secured Term Note due 2013 $ 918,385 04/13/06 904,609 893,908 14% Senior Subordinated Note due 2014 $ 547,179 04/13/06 488,508 533,916 Common Stock (B) 109,436 shs. 04/13/06 109,436 98,492 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 30,940 shs. 04/13/06 48,433 309 ------------- ------------- 1,550,986 1,526,625 ------------- ------------- *09/24/04 and 4/20/06. - --------------------------------------------------------------------------------------------------------------------------------- 11
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- FOWLER HOLDING, INC. A provider of site development services to residential homebuilders and developers in the Raleigh/Durham region of North Carolina. 12% Senior Subordinated Note due 2013 $ 2,365,217 02/03/06 $ 2,128,160 $ 2,285,667 Common Stock (B) 185 shs. 02/03/06 184,783 166,302 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 254 shs. 02/03/06 208,435 3 ------------- ------------- 2,521,378 2,451,972 ------------- ------------- FUEL SYSTEMS HOLDING CORPORATION An independent North American supplier of fuel tanks for a wide variety of commercial vehicles. 12% Senior Subordinated Note due 2014 $ 2,337,500 01/31/06 2,174,919 2,269,159 Common Stock (B) 212,500 shs. 01/31/06 212,500 191,250 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 138,408 shs. 01/31/06 119,213 1,384 ------------- ------------- 2,506,632 2,461,793 ------------- ------------- H M HOLDING COMPANY A designer, manufacturer, and importer of promotional and wood furniture. 12% Senior Subordinated Note due 2013 $ 2,210,000 02/10/06 2,051,532 2,142,729 Common Stock (B) 340 shs. 02/10/06 340,000 306,000 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 126 shs. 02/10/06 116,875 1 ------------- ------------- 2,508,407 2,448,730 ------------- ------------- HIGHGATE CAPITAL LLC An acquirer of controlling or substantial interests in manufacturing and marketing entities. Series A Preferred Units (B) 1.19% int. 7/21/94 367,440 2,947 ------------- ------------- HOME DECOR HOLDING COMPANY A designer, manufacturer and marketer of framed art and wall decor products. 12.5% Senior Subordinated Note due 2012 $ 2,043,269 * 1,869,240 2,029,809 Common Stock (B) 63 shs. * 62,742 71,994 Warrant, exercisable until 2012, to purchase common stock at $.02 per share (B) 200 shs. * 199,501 228,926 ------------- ------------- 2,131,483 2,330,729 ------------- ------------- INTEGRATION TECHNOLOGY SYSTEMS, INC. A manufacturer of steel protective computer and network systems for the industrial and office environments. 12% Senior Secured Note due 2006 $ 1,644,444 03/01/04 1,646,101 1,248,333 Common Stock (B) 228 shs. 06/01/00 262,200 -- ------------- ------------- 1,908,301 1,248,333 ------------- ------------- ITC^DELTACOM, INC. A provider of integrated communications services in the southeastern United States. 13.19% Senior Secured Note due 2009 (C) $ 2,218,747 07/26/05 2,174,523 2,199,331 16.69% Senior Secured Note due 2009 (C) $ 353,822 07/26/05 310,859 349,641 Warrant, exercisable until 2009, to purchase convertible preferred stock at $.01 per share (B) 102,884 shs. 07/26/05 34,295 138,893 ------------- ------------- 2,519,677 2,687,865 ------------- ------------- *06/30/04 and 08/19/04. - --------------------------------------------------------------------------------------------------------------------------------- 12
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- JASON, INC. A diversified manufacturing company serving various industrial markets. 13% Senior Subordinated Note due 2008 $ 963,687 08/04/00 $ 915,318 $ 949,990 14% Cumulative Redeemable Preferred Stock Series A (B) 289 shs. 08/04/00 289,224 282,322 Limited Partnership Interests of Saw Mill Capital Fund II, L.P. (B) 2.50% int. 08/03/00 886,361 709,205 Warrants, exercisable until 2008 and 2009, to purchase common stock at $.01 per share (B) 50,870 shs. 08/04/00 115,412 40,694 ------------- ------------- 2,206,315 1,982,211 ------------- ------------- JUSTRITE MANUFACTURING ACQUISITION CO. A manufacturer of safety products such as storage cabinets and containers. 12% Senior Subordinated Note due 2011 $ 1,593,750 12/15/04 1,506,670 1,538,466 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 1,121 shs. 12/15/04 101,109 11 ------------- ------------- 1,607,779 1,538,477 ------------- ------------- K N B HOLDINGS CORPORATION A designer, manufacturer and marketer of products for the custom framing market. 13.5% Senior Subordinated Note due 2013 $ 2,415,790 05/25/06 2,296,499 2,361,352 Common Stock (B) 134,210 shs. 05/25/06 134,210 120,789 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 82,357 shs. 05/25/06 71,534 824 ------------- ------------- 2,502,243 2,482,965 ------------- ------------- KEEPSAKE QUILTING, INC. A seller of quilting fabrics, books, patterns, kits and notions to consumers. 8.77% Senior Secured Revolving Note due 2006 (C) $ 36,693 06/16/00 36,693 36,662 8.77% Senior Secured Tranche A Note due 2007 (C) $ 275,196 06/16/00 275,196 272,557 12% Senior Secured Tranche B Note due 2008 $ 550,392 06/16/00 534,509 550,759 Limited Partnership Interest of Riverside XVI Holding Company, L.P. (B) 5.29% int. 6/12/00 333,490 216,582 Warrant, exercisable until 2008, to purchase common stock at $.01 per share (B) 1,108 shs. 6/12/00 45,866 71,946 ------------- ------------- 1,225,754 1,148,506 ------------- ------------- KELE AND ASSOCIATES, INC. A distributor of building automation control products. 12% Senior Subordinated Note due 2012 $ 1,831,548 02/27/04 1,687,660 1,867,020 Preferred Stock (B) 23 shs. 11/24/04 449,164 456,950 Common Stock (B) 12 shs. 02/27/04 12,871 175,834 Warrant, exercisable until 2012, to purchase common stock at $.02 per share (B) 11 shs. 02/27/04 7,793 160,940 ------------- ------------- 2,157,488 2,660,744 ------------- ------------- KEYSTONE NORTH AMERICA, INC. An operator of funeral homes in North America. Common Stock (B) 49,216 shs. 02/08/05 236,709 296,871 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 13
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- LIH INVESTORS, L.P. A manufacturer and marketer of a broad line of external accessories for new and used sport utility vehicles, trucks and vans. 12.5% Senior Subordinated Note due 2008 $ 3,845,000 * $ 3,575,486 $ 3,739,650 Common Stock (B) 5,800 shs. * 406,003 223,300 Warrant, exercisable until 2006, to purchase common stock at $.11 per share (B) 15,572 shs. * 602,127 599,522 ------------- ------------- 4,583,616 4,562,472 ------------- ------------- MAGNATECH INTERNATIONAL, INC. A supplier of process equipment and related parts used in the manufacturing of medium and high-pressure reinforced hoses. 12% Senior Subordinated Note due 2014 $ 1,275,000 04/05/06 1,184,793 1,253,759 13% Preferred Stock (B) 565 shs. 04/05/06 565,335 537,064 Common Stock (B) 125 shs. 04/05/06 125,048 118,798 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 13 shs. 04/05/06 12,905 -- ------------- ------------- 1,888,081 1,909,621 ------------- ------------- MAVERICK ACQUISITION COMPANY A manufacturer of capsules that cover the cork and neck of wine bottles. 9.5% Senior Secured Tranche A Note due 2010 (C) $ 689,213 09/03/04 689,213 689,362 12% Senior Secured Tranche B Note due 2011 $ 313,433 09/03/04 280,573 309,756 Limited Partnership Interest (B) 7.84% int. 09/03/04 58,769 52,892 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 425 shs. 09/03/04 39,473 4 ------------- ------------- 1,068,028 1,052,014 ------------- ------------- MAXON CORPORATION A manufacturer of industrial combustion equipment and related shut-off valves and control valves. 12% Senior Subordinated Note due 2012 $ 962,215 09/30/04 884,370 974,056 8.75% Senior Subordinated Note due 2012 $ 1,281,112 09/30/04 1,281,112 1,304,145 Common Stock (B) 381,672 shs. 09/30/04 381,672 690,063 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 153,572 shs. 09/30/04 90,897 277,657 ------------- ------------- 2,638,051 3,245,921 ------------- ------------- MEDASSIST, INC. A provider of patient eligibility and accounts receivable management services to hospitals and physician practices. 8% Preferred Stock (B) 84 shs. 10/28/04 83,658 82,071 Common Stock (B) 26,185 shs. 10/02/04 35,088 72,476 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 88,948 shs. 05/01/03 40,675 246,196 ------------- ------------- 159,421 400,743 ------------- ------------- MICROGROUP, INC. A manufacturer of precision parts and assemblies, and a value-added supplier of metal tubing and bars. 12% Senior Subordinated Note due 2013 $ 2,142,000 08/12/05 2,013,446 2,137,030 Common Stock (B) 408 shs. 08/12/05 408,000 367,200 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 137 shs. 08/12/05 137,088 1 ------------- ------------- 2,558,534 2,504,231 ------------- ------------- *12/23/98 and 01/28/99. - --------------------------------------------------------------------------------------------------------------------------------- 14
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- MONESSEN HOLDING CORPORATION A designer and manufacturer of a broad line of gas, wood, and electric hearth products and accessories. 12% Senior Subordinated Note due 2014 $ 2,550,000 03/31/06 $ 2,363,197 $ 2,485,414 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 152 shs. 03/31/06 138,125 2 ------------- ------------- 2,501,322 2,485,416 ------------- ------------- MOSS, INC. A manufacturer and distributor of large display and exhibit structures. 9% Senior Secured Tranche A Note due 2010 (C) $ 962,500 12/21/05 952,875 968,306 12% Senior Secured Tranche B Note due 2010 $ 350,000 12/21/05 309,853 349,406 Limited Partnership Interest of Riverside Capital Appreciation Fund I, L.P. (B) 0.02% int. * 49 379,628 Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 214 shs. 09/21/00 36,647 2 ------------- ------------- 1,299,424 1,697,342 ------------- ------------- NABCO, INC. A producer of explosive containment vessels in the United States. 12% Senior Subordinated Note due 2014 $ 625,000 02/24/06 576,115 604,569 Limited Partnership Interest (B) 650 uts. 02/24/06 650,000 617,500 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 48 shs. 02/24/06 37,188 -- ------------- ------------- 1,263,303 1,222,069 ------------- ------------- NEFF MOTIVATION, INC. A manufacturer and distributor of customized awards and sportswear to schools. 12.5% Senior Subordinated Note due 2011 $ 1,062,500 01/31/03 930,804 1,083,750 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 212 shs. 01/31/03 180,625 215,068 ------------- ------------- 1,111,429 1,298,818 ------------- ------------- NONNI'S FOOD COMPANY A producer and distributor of premium biscotti and bagel chips in North America. 12.25% Senior Subordinated Note due 2012 $ 1,863,462 03/29/04 1,856,139 1,823,589 10% Preferred Stock (B) 255 shs. 03/29/04 255,083 248,714 Common Stock (B) 6,455 shs. 03/29/04 6,455 49,545 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 8,622 shs. 03/29/04 7,323 66,106 ------------- ------------- 2,125,000 2,187,954 ------------- ------------- NYLONCRAFT, INC. A supplier of engineered plastic components for the automotive industry. 9% Senior Secured Note due 2009 $ 812,500 01/28/02 812,500 793,605 11.5% Senior Subordinated Note due 2012 $ 1,500,000 01/28/02 1,389,437 1,419,166 Common Stock (B) 312,500 shs. 01/28/02 312,500 250,000 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 243,223 shs. 01/28/02 162,045 2,432 ------------- ------------- 2,676,482 2,465,203 ------------- ------------- *09/20/00 and 05/23/02. - --------------------------------------------------------------------------------------------------------------------------------- 15
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- O R S NASCO HOLDING, INC. A wholesale distributor of industrial supplies in North America. 13% Senior Subordinated Note due 2013 $ 2,372,732 12/20/05 $ 2,229,783 $ 2,310,706 Common Stock (B) 177,268 shs. 12/20/05 177,268 159,541 Warrant, exercisable until 2015, to purchase common stock at $.01 per share (B) 99,771 shs. 12/20/05 98,773 998 ------------- ------------- 2,505,824 2,471,245 ------------- ------------- OAKRIVER TECHNOLOGY, INC. Designs, engineers and assembles high precision automated process equipment for the medical device industry, with a focus on defibrillators and stents. 10% Senior Secured Note due 2012 $ 565,452 01/03/06 556,970 552,754 13% Senior Subordinated Note due 2013 $ 687,241 01/03/06 612,741 670,188 Common Stock (B) 322,307 shs. 01/03/06 322,307 290,076 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 72,185 shs. 01/03/06 62,824 722 ------------- ------------- 1,554,842 1,513,740 ------------- ------------- OLYMPIC SALES, INC. A boat retailer in Washington state, Oregon, California and British Columbia. 14% Senior Subordinated Note due 2006 $ 2,482,000 08/07/98 2,482,000 2,473,463 12% Senior Subordinated Note due 2008 $ 307,071 02/09/00 298,203 300,301 Limited Partnership Interest of Riverside VIII, VIII-A and VIII-B Holding Company, L.P. 20.57% int. * 1,555,820 1,555,626 Warrants, exercisable until 2007 and 2008, to purchase common stock at $.01 per share (B) 28,648 shs. ** 389,188 385,720 ------------- ------------- 4,725,211 4,715,110 ------------- ------------- ONTARIO DRIVE & GEAR LTD. A manufacturer of all-wheel drive, off-road amphibious vehicles and related accessories. 13% Senior Subordinated Note due 2013 $ 1,977,885 01/17/06 1,774,892 1,930,789 Limited Partnership Interest (B) 3,667 uts. 01/17/06 572,115 514,903 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 619 shs. 01/17/06 170,801 6 ------------- ------------- 2,517,808 2,445,698 ------------- ------------- OVERTON'S HOLDING COMPANY A marketer of marine and water sports accessories in the United States. 12% Senior Subordinated Note due 2014 $ 1,817,308 04/28/06 1,698,265 1,782,637 Common Stock (B) 95 shs. 04/28/06 95,000 85,500 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 94 shs. 04/28/06 83,720 1 ------------- ------------- 1,876,985 1,868,138 ------------- ------------- *08/07/98, 02/23/99, 12/22/99 and 02/25/03. **08/07/98 and 02/09/00. - --------------------------------------------------------------------------------------------------------------------------------- 16
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- P I I HOLDING CORPORATION A manufacturer of plastic film and bags for the general industrial, medical, and food industries. 12% Senior Subordinated Note due 2013 $ 2,295,000 03/31/06 $ 2,140,466 $ 2,224,558 Preferred Stock (B) 36 shs. 03/31/06 329,596 313,116 Common Stock (B) 23 shs. 03/31/06 25,500 22,950 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 13 shs. 03/31/06 11,122 -- ------------- ------------- 2,506,684 2,560,624 ------------- ------------- PARADIGM PACKAGING, INC. A manufacturer of plastic bottles and closures for the nutritional, pharmaceutical, personal care and food packaging markets. 12% Senior Subordinated Note due 2008 $ 2,125,000 12/19/00 2,008,518 2,062,655 Membership Interests of MM/Lincap PPI Investments, Inc., LLC (B) 2.42% int. 12/21/00 265,625 280,043 ------------- ------------- 2,274,143 2,342,698 ------------- ------------- PROTEIN GENETICS, INC. A producer of bovine artificial insemination products, related breeding and healthcare products and specialty genetics sold to the dairy and beef industries. 9.8% Redeemable Exchangeable Preferred Stock (B) 1,004 shs. 08/12/94 100,350 -- Common Stock (B) 2,600 shs. * 126,866 -- ------------- ------------- 227,216 -- ------------- ------------- QUALIS AUTOMOTIVE LLC A distributor of aftermarket automotive brake and chassis products. 12% Senior Subordinated Note due 2012 $ 1,770,834 05/28/04 1,462,749 1,794,496 Common Stock (B) 354,166 shs. 05/28/04 354,166 653,436 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 377,719 shs. 05/28/04 377,719 696,892 ------------- ------------- 2,194,634 3,144,824 ------------- ------------- QUALSERV CORPORATION A provider of foodservice equipment and supplies, to major restaurant chains and their franchisees. 14% Senior Subordinated Note due 2012 (D) $ 1,893,563 07/09/04 1,844,035 1,136,138 Limited Partnership Interest (B) 9.26% int. 07/09/04 259,146 -- Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 528 shs. 07/09/04 49,061 -- ------------- ------------- 2,152,242 1,136,138 ------------- ------------- RADIAC ABRASIVES, INC. A manufacturer of bonded abrasive and super abrasive grinding wheels in the United States. 12% Senior Subordinated Note due 2014 $ 2,260,638 02/10/06 2,100,704 2,198,674 Common Stock (B) 289,362 shs. 02/10/06 289,362 260,426 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 131,555 shs. 02/10/06 119,796 1,316 ------------- ------------- 2,509,862 2,460,416 ------------- ------------- *11/14/01 and 08/12/94. - --------------------------------------------------------------------------------------------------------------------------------- 17
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- RIVER RANCH FRESH FOODS LLC A supplier of fresh produce to the retail and foodservice channels. 13% Senior Subordinated Note due 2011 (D) $ 1,841,667 09/29/04 $ 1,683,764 $ 1,657,500 Limited Partnership Interest (B) 40,610 uts. 09/29/04 283,333 -- Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 23,575 shs. 09/29/04 157,903 -- ------------- ------------- 2,125,000 1,657,500 ------------- ------------- ROYAL BATHS MANUFACTURING COMPANY A manufacturer and distributor of acrylic and cultured marble bathroom products. 12.5% Senior Subordinated Notes due 2011 $ 1,062,500 11/14/03 965,942 1,054,138 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 140 shs. 11/14/03 122,946 71,317 ------------- ------------- 1,088,888 1,125,455 ------------- ------------- SAFETY SPEED CUT MANUFACTURING COMPANY, INC. A manufacturer of vertical panel saws and routers for the wood working industry. 8.73% Senior Secured Tranche A Note due 2007 (C) $ 565,326 06/02/99 565,326 565,326 12% Senior Secured Tranche B Note Due 2007 $ 1,130,652 06/02/99 1,130,652 1,130,652 Class B Common Stock (B) 1,480 shs. 06/02/99 256,212 497,517 ------------- ------------- 1,952,190 2,193,495 ------------- ------------- SAVAGE SPORTS HOLDING, INC. A manufacturer of sporting firearms. 12% Senior Subordinated Note due 2012 $ 1,538,793 09/10/04 1,440,335 1,505,644 Common Stock (B) 586 shs. 09/10/04 586,207 478,207 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 134 shs. 09/10/04 113,578 109,001 ------------- ------------- 2,140,120 2,092,852 ------------- ------------- SPECIALTY FOODS GROUP, INC. A manufacturer and distributor of branded meat products. Limited Partnership Interest of MHD Holdings LLC (B) 1.43% int. 08/29/00 579,736 -- ------------- ------------- STRATEGIC EQUIPMENT & SUPPLY CORPORATION, INC. A provider of kitchen and restaurant design, equipment fabrication and installation services. Warrant, exercisable until 2008, to purchase common stock at $.01 per share (B) 106,539 shs. 01/14/00 658,751 -- ------------- ------------- SYNVENTIVE EQUITY LLC A manufacturer of hot runner systems used in the plastic injection molding process. Limited Partnership Interest (B) 1.99% int. 08/20/03 63,206 14,100 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 86,780 shs. 08/21/03 19,359 19,359 ------------- ------------- 82,565 33,459 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 18
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- TANGENT RAIL CORPORATION A manufacturer of rail ties and provides specialty services to the North American railroad industry. 13% Senior Subordinated Note due 2013 $ 2,217,385 10/14/05 $ 1,893,881 $ 2,240,010 Preferred Stock (B) 3,304 shs. 10/14/05 330,412 332,762 Common Stock (B) 2,203 shs. 10/14/05 2,203 1,983 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 1,167 shs. 10/14/05 294,403 12 ------------- ------------- 2,520,899 2,574,767 ------------- ------------- TERRA RENEWAL SERVICES, INC. A provider of wastewater residual management and required environmental reporting, permitting, nutrient management planning and record keeping to companies involved in poultry and food processing. 10% Senior Secured Term A Note due 2011 (C) $ 492,187 04/28/06 490,748 485,164 10.25% Senior Secured Term B Note due 2012 (C) $ 738,282 04/28/06 736,405 720,412 12% Senior Subordinated Note due 2014 $ 1,162,110 04/28/06 1,104,804 1,140,637 Limited Partnership Interest of Saw Mill Capital Fund V, L.P. 4.00% int. 03/01/05 215,747 194,173 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 72 shs. 04/28/06 60,597 1 ------------- ------------- 2,608,301 2,540,387 ------------- ------------- THE TRANZONIC COMPANIES A producer of commercial and industrial supplies, such as safety products, janitorial supplies, work apparel, washroom and restroom supplies and sanitary care products. 13% Senior Subordinated Note due 2009 $ 2,712,000 02/05/98 2,548,802 2,712,000 Common Stock (B) 630 shs. 02/04/98 630,000 627,425 Warrant, exercisable until 2006, to purchase common stock at $.01 per share (B) 444 shs. 02/05/98 368,832 442,185 ------------- ------------- 3,547,634 3,781,610 ------------- ------------- TRANSTAR HOLDING COMPANY A distributor of aftermarket automotive transmission parts. 12% Senior Subordinated Note due 2013 $ 1,734,000 08/31/05 1,660,478 1,728,371 Common Stock (B) 816 shs. 08/31/05 816,000 775,200 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 86 shs. 08/31/05 77,485 1 ------------- ------------- 2,553,963 2,503,572 ------------- ------------- TRONAIR, INC. A designer, engineer and manufacturer of ground support equipment for the business, commuter and commercial aviation markets. 10.5% Senior Secured Term Note due 2008 $ 789,836 01/20/00 789,836 790,221 12% Senior Subordinated Note due 2010 $ 1,326,500 01/20/00 1,281,185 1,329,153 Common Stock (B) 227,400 shs. 01/20/00 227,400 521,883 Warrant, exercisable until 2010, to purchase common stock at $1 per share (B) 260,563 shs. 01/20/00 98,540 597,992 ------------- ------------- 2,396,961 3,239,249 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 19
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- TRUCK BODIES & EQUIPMENT INTERNATIONAL A designer and manufacturer of accessories for heavy and medium duty trucks, primarily dump bodies, hoists, various forms of flat-bed bodies, landscape bodies and other accessories. 12% Senior Subordinated Note due 2013 $ 2,309,541 * $ 2,151,143 $ 2,345,327 Common Stock (B) 742 shs. * 800,860 1,004,517 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 153 shs. * 159,894 207,469 ------------- ------------- 3,111,897 3,557,313 ------------- ------------- TRUSTILE DOORS, INC. A manufacturer and distributor of interior doors. 12.5% Senior Subordinated Note due 2010 $ 1,062,500 04/11/03 999,566 1,056,004 Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 5,781 shs. 04/11/03 95,625 71,747 ------------- ------------- 1,095,191 1,127,751 ------------- ------------- TUBULAR TEXTILE MACHINERY A designer, manufacturer, seller and servicer of finishing machinery for the knit and woven segments of the global textile industry. 12% Senior Subordinated Note due 2014 $ 1,234,551 05/28/04 1,121,535 1,198,547 8.75% Senior Secured Note due 2011 $ 716,292 05/28/04 716,292 707,093 Common Stock (B) 674,157 shs. 05/28/04 674,157 573,033 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 203,912 shs. 05/28/04 130,789 2,039 ------------- ------------- 2,642,773 2,480,712 ------------- ------------- TVI, INC. A retailer of used clothing in the United States, Canada and Australia. Common Stock (B) 354,167 shs. 05/02/00 354,167 1,094,376 ------------- ------------- U S M HOLDINGS CORPORATION A provider of facility maintenance services to retail and corporate clients with multiple locations. 12% Senior Subordinated Note due 2011 $ 894,737 08/06/03 780,482 894,737 Preferred Stock (B) 2,571 shs. 08/06/03 257,095 263,330 Common Stock (B) 1,032 shs. 08/06/03 1,032 1,553,511 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 949 shs. 08/06/03 298,198 977,210 ------------- ------------- 1,336,807 3,688,788 ------------- ------------- U S S HOLDINGS, INC. A producer of high grade industrial and specialty silica sands. 14% Redeemable Preferred Stock (B) 997 shs. 09/30/99 545,858 108,991 Convertible Preferred Stock Series A and B, convertible into common stock at $9.26 per share (B) 145,446 shs. 12/19/96 1,166,829 -- Common Stock (B) 20,027 shs. 09/30/99 799,068 -- Warrants, exercisable until 2010 to purchase common stock at $.01 per share (B) 4,918 shs. 12/19/96 128,372 -- ------------- ------------- 2,640,127 108,991 ------------- ------------- * 07/19/05 and 12/22/05. - --------------------------------------------------------------------------------------------------------------------------------- 20
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES (A) (CONTINUED) Amount Date Cost Value - --------------------------------------------------------------------------------------------------------------------------------- U-LINE CORPORATION A manufacturer of high-end, built-in, undercounter icemaking, wine storage and refrigeration appliances. 12.5% Senior Subordinated Note due 2012 $ 1,882,100 04/30/04 $ 1,704,621 $ 1,905,414 Common Stock (B) 182 shs. 04/30/04 182,200 229,572 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 230 shs. 04/30/04 211,736 290,329 ------------- ------------- 2,098,557 2,425,315 ------------- ------------- VICTORY VENTURES LLC An acquirer of controlling or substantial interests in other entities. Series A Preferred Units (B) 0.15% int. 12/02/96 1 2 ------------- ------------- VITALITY FOODSERVICE, INC. A non-carbonated beverage dispensing company focused on the foodservice industry. 13% Senior Subordinated Note due 2011 $ 1,887,288 09/24/04 1,730,919 1,849,855 Common Stock (B) 23,771 shs. 09/24/04 237,710 326,328 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 23,787 shs. 09/24/04 186,883 326,548 ------------- ------------- 2,155,512 2,502,731 ------------- ------------- VITEX PACKAGING GROUP, INC. A manufacturer of specialty packaging, primarily envelopes and tags used on tea bags. 12.5% Senior Subordinated Note due 2012 $ 1,700,000 07/19/04 1,483,065 1,585,837 Limited Partnership Interest Class A (B) 1.75% int. 07/19/04 414,375 372,938 Limited Partnership Interest Class B (B) 0.77% int. 07/19/04 182,935 164,642 ------------- ------------- 2,080,375 2,123,417 ------------- ------------- WALLS INDUSTRIES, INC. A provider of branded workwear and sporting goods apparel. 10% Senior Subordinated Lien Note due 2009 $ 838,816 07/12/04 838,816 848,620 14% Senior Subordinated Note due 2012 $ 1,064,098 07/12/04 1,061,292 1,094,515 Limited Partnership Interest (B) 0.40% int. 07/12/04 37,281 872,375 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 4,029 shs. 07/12/04 2,833 94,275 ------------- ------------- 1,940,222 2,909,785 ------------- ------------- TOTAL PRIVATE PLACEMENT INVESTMENTS $ 167,993,090 $ 170,393,268 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 21
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares or Interest Due Principal CORPORATE RESTRICTED SECURITIES:(A) (CONTINUED) Rate Date Amount Cost Fair Value - --------------------------------------------------------------------------------------------------------------------------------- RULE 144A SECURITIES - 5.21%: BONDS - 5.21% A E S Corporation 9.000% 05/15/15 $ 200,000 $ 200,000 $ 215,000 Activant Solutions, Inc. (C) 9.500 05/01/16 150,000 150,000 145,125 American Tire Distributor (C) 11.240 04/01/12 1,000,000 950,000 930,000 Atlas Pipeline Partners 8.125 12/15/15 200,000 200,000 199,250 Basic Energy Services 7.125 04/15/16 225,000 225,000 209,250 Bombardier, Inc. 6.300 05/01/14 1,000,000 890,000 870,000 Brigham Exploration Company 9.625 05/01/14 700,000 690,403 686,000 Calpine Corporation 8.750 07/15/13 500,000 465,000 470,000 Charter Communications Op LLC 8.000 04/30/12 250,000 249,375 248,750 Douglas Dynamics LLC 7.750 01/15/12 630,000 633,535 598,500 Dynegy Holdings, Inc. 8.375 05/01/16 330,000 330,000 325,050 Edison Mission Energy 7.750 06/15/16 500,000 500,000 491,250 G F S I, Inc. 11.000 06/01/11 750,000 682,541 708,750 Interactive Health LLC 7.250 04/01/11 872,000 742,789 716,130 Neiman Marcus Group, Inc. 10.375 10/15/15 1,250,000 1,250,000 1,328,125 Packaging Corporation of America 10.000 05/01/16 700,000 700,000 700,000 Petrohawk Energy Corporation 9.125 07/15/13 550,000 543,043 543,043 Pregis Corporation 12.375 10/15/13 1,000,000 981,490 1,040,000 Service Corporation International (C) 8.000 06/15/17 1,000,000 990,030 935,000 Siebe PLC 6.500 01/15/10 650,000 572,000 665,883 Stewart & Stevenson LLC 10.000 07/15/14 225,000 225,000 225,844 Sungard Data Systems 9.125 08/15/13 175,000 175,000 181,563 Tekni-Plex, Inc. (C) 9.500 11/15/13 650,000 656,032 617,500 Tenaska Alabama Partners LP 7.000 06/30/21 351,805 351,805 342,875 ------------ ------------ TOTAL BONDS 13,353,043 13,392,888 ------------ ------------ COMMON STOCK - 0.00% Jordan Telecom Products 70 $ 14,000 -- ------------ ------------ TOTAL COMMON STOCK 14,000 -- ------------ ------------ WARRANTS - 0.00% Winsloew Furniture, Inc. (B) 900 $ 9 $ -- ------------ ------------ TOTAL WARRANTS 9 -- ------------ ------------ TOTAL RULE 144A SECURITIES 13,367,052 13,392,888 ------------ ------------ TOTAL CORPORATE RESTRICTED SECURITIES $181,360,142 $183,786,156 ------------ ------------ - --------------------------------------------------------------------------------------------------------------------------------- 22
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Interest Due Principal CORPORATE PUBLIC SECURITIES - 28.53%: (A) Rate Date Amount Cost Market Value - --------------------------------------------------------------------------------------------------------------------------------- BONDS - 25.89% A M C Entertainment, Inc. 11.000% 02/01/16 $ 815,000 $ 817,373 $ 872,050 Abitibi-Consolidated, Inc. 7.750 06/15/11 1,000,000 1,029,556 917,500 Affinia Group, Inc. 9.000 11/30/14 910,000 834,625 825,825 Alamosa Delaware, Inc. 11.000 07/31/10 325,000 329,165 355,875 Alamosa Delaware, Inc. 8.500 01/31/12 400,000 400,000 424,000 ALH Fin LLC/ALH Fin Corporation 8.500 01/15/13 950,000 918,813 916,750 Allied Waste NA 7.875 04/15/13 1,000,000 1,023,514 1,000,000 Appleton Papers, Inc. 8.125 06/15/11 300,000 300,000 303,000 Argo Tech Corporation 9.250 06/01/11 850,000 850,000 875,500 Bally Total Fitness Holding Corporation 9.875 10/15/07 135,000 128,925 132,638 BCP Crystal US Holdings Corporation 9.625 06/15/14 485,000 485,000 526,225 Blockbuster, Inc. 10.000 09/01/12 475,000 476,038 442,938 C S C Holdings, Inc. 7.625 04/01/11 500,000 501,741 500,000 CCH I Holdings LLC 11.000 10/01/15 1,000,000 890,000 875,000 CCH I Holdings LLC 11.125 01/15/14 1,000,000 640,438 610,000 Cablevision Systems Corporation (C) 9.620 04/01/09 1,000,000 1,000,000 1,060,000 Cadmus Communications Corporation 8.375 06/15/14 750,000 750,000 742,500 Cenveo Corporation 7.875 12/01/13 1,100,000 1,100,000 1,072,500 Chemed Corporation 8.750 02/24/11 1,125,000 1,125,000 1,181,250 Chesapeake Energy Corporation 7.000 08/15/14 1,075,000 1,112,768 1,040,063 Cincinnati Bell, Inc. 8.375 01/15/14 1,100,000 1,007,500 1,083,500 Clayton Williams Energy, Inc. 7.750 08/01/13 800,000 800,000 736,000 Del Monte Corporation 8.625 12/15/12 225,000 225,000 231,750 Dollar Financial Group 9.750 11/15/11 600,000 600,000 645,000 Dominos Pizza, Inc. 8.250 07/01/11 292,000 289,892 302,950 Dynegy Holdings, Inc. 6.875 04/01/11 500,000 422,500 472,500 El Paso Corporation 7.875 06/15/12 1,050,000 1,062,248 1,068,375 Esterline Technologies 7.750 06/15/13 200,000 200,000 202,500 Flextronics International Ltd. 6.500 05/15/13 400,000 400,000 380,000 Ford Motor Credit Company 7.375 10/28/09 1,250,000 1,246,875 1,155,673 Gencorp, Inc. 9.500 08/15/13 259,000 259,000 275,188 General Motors Acceptance Corporation 7.750 01/19/10 1,250,000 1,299,605 1,243,554 Geo Sub Corporation 11.000 05/15/12 600,000 595,500 603,000 Goodyear Tire & Rubber Company 7.857 08/15/11 1,400,000 1,342,750 1,298,500 Great Lakes Dredge & Dock Corporation 7.750 12/15/13 1,015,000 926,319 935,069 GulfMark Offshore, Inc. 7.750 07/15/14 565,000 562,599 550,875 Houghton Mifflin Co. 9.875 02/01/13 1,000,000 1,047,930 1,037,500 Huntsman LLC 11.625 10/15/10 324,000 320,161 358,020 Imax Corporation 9.625 12/01/10 1,000,000 1,030,086 1,025,000 Inergy LP 8.250 03/01/16 150,000 150,000 151,500 Insurance Auto Auctions, Inc. 11.000 04/01/13 1,000,000 1,009,562 985,000 Intelsat Subsidiary Holding Company Ltd. (C) 9.614 01/15/12 450,000 449,996 454,500 Interline Brands Inc. 8.125 06/15/14 325,000 322,670 324,188 Koppers Inc. 9.875 10/15/13 477,000 477,000 511,582 Land O'Lakes, Inc. 9.000 12/15/10 750,000 750,000 780,000 Lazard LLC 7.125 05/15/15 750,000 749,408 757,988 Leucadia National Corporation 7.000 08/15/13 650,000 661,678 630,500 Liberty Media Corporation 5.700 05/15/13 1,000,000 951,610 908,131 Lodgenet Entertainment Corporation 9.500 06/15/13 425,000 425,000 452,625 Lyondell Chemical Co. 9.500 12/15/08 530,000 517,022 544,575 M G M Mirage, Inc. 6.000 10/01/09 375,000 378,834 364,688 Mac-Gray Corporation 7.625 08/15/15 600,000 600,000 606,000 - --------------------------------------------------------------------------------------------------------------------------------- 23
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Interest Due Principal CORPORATE PUBLIC SECURITIES (A) (CONTINUED) Rate Date Amount Cost Market Value - --------------------------------------------------------------------------------------------------------------------------------- BONDS, CONTINUED Magnachip Semiconductor 8.000% 12/15/14 $ 100,000 $ 100,000 $ 83,000 Majestic Star Casino LLC 9.500 10/15/10 500,000 500,000 523,750 Manitowoc Company, Inc. 7.125 11/01/13 200,000 200,000 196,000 Markwest Energy Operating Co. 6.875 11/01/14 475,000 475,000 437,000 Mediacom LLC 9.500 01/15/13 1,000,000 1,002,409 995,000 Metaldyne Corporation 11.000 06/15/12 750,000 601,250 637,500 Metaldyne Corporation 10.000 11/01/13 510,000 513,671 493,425 Moog, Inc. 6.250 01/15/15 120,000 120,000 112,800 Mrs. Fields Brands 11.500 03/15/11 750,000 713,710 660,000 N R G Energy, Inc. 7.375 02/01/16 175,000 175,000 170,625 Nalco Co. 7.750 11/15/11 500,000 500,000 498,750 National Wine & Spirits, Inc. 10.125 01/15/09 1,260,000 1,253,117 1,260,000 Newark Group, Inc. 9.750 03/15/14 850,000 796,863 786,250 North American Energy Partners 8.750 12/01/11 400,000 400,000 384,000 Nova Chemicals Corporation (C) 8.405 11/15/13 475,000 475,000 471,438 O E D Corp/Diamond Jo Company Guarantee 8.750 04/15/12 1,000,000 985,960 1,006,250 Offshore Logistics, Inc. 6.125 06/15/13 450,000 450,000 415,125 P Q Corporation 7.750 02/15/13 1,100,000 1,088,750 1,034,000 Pacific Energy Partners 7.125 06/15/14 500,000 503,906 505,000 Pacific Energy Partners 6.250 09/15/15 150,000 149,316 145,500 Pinnacle Foods Group 8.250 12/01/13 450,000 450,000 442,125 Pliant Corporation 11.625 06/15/09 787,891 803,141 852,892 Primedia, Inc. 8.000 05/15/13 1,000,000 1,024,024 895,000 Quality Distribution LLC (C) 9.568 01/15/12 325,000 323,375 322,156 Quicksilver Resources, Inc 7.125 04/01/16 500,000 500,000 468,750 Rent-A-Center, Inc. 7.500 05/01/10 400,000 400,000 398,000 Rent-Way, Inc. 11.875 06/15/10 800,000 834,891 823,000 Rock-Tenn Co. 8.200 08/15/11 1,000,000 1,007,077 1,000,000 Rogers Wireless, Inc. 7.250 12/15/12 165,000 165,000 166,238 Rogers Wireless, Inc. 7.500 03/15/15 870,000 930,492 878,700 Rogers Wireless, Inc. 8.000 12/15/12 165,000 165,000 168,712 Samsonite Corporation 8.875 06/01/11 1,000,000 1,040,015 1,037,500 Sbarro, Inc. 11.000 09/15/09 1,000,000 1,014,083 1,018,750 Sheridan Acquisition Corporation 10.250 08/15/11 375,000 370,000 381,094 Sierra Pacific Resources 6.750 08/15/17 635,000 638,237 599,960 Stanadyne Corporation 10.000 08/15/14 1,500,000 1,500,000 1,402,500 Tekni-Plex, Inc. 12.750 06/15/10 1,000,000 960,125 705,000 Telex Communications, Inc. 11.500 10/15/08 500,000 500,000 527,500 Telex Communications, Inc. 0.000 01/15/09 471,915 206,820 353,936 Tenet Healthcare Corporation 9.875 07/01/14 500,000 488,370 500,000 Texas Industries, Inc. 7.250 07/15/13 70,000 70,000 69,300 Transmontaigne, Inc. 9.125 06/01/10 520,000 511,075 553,800 Trimas Corporation 9.875 06/15/12 625,000 566,250 571,875 Triton P C S, Inc. 8.500 06/01/13 550,000 550,000 504,625 Unisys Corporation 8.000 10/15/12 190,000 190,000 176,700 United Components, Inc. 9.375 06/15/13 1,080,000 1,081,830 1,063,800 United Rentals, Inc. 7.750 11/15/13 625,000 625,000 593,750 United Rentals, Inc. 7.000 02/15/14 500,000 500,000 456,875 Universal City Florida (C) 9.899 05/01/10 200,000 200,000 206,500 Universal City Florida 8.375 05/01/10 200,000 200,000 201,000 Utilicorp United, Inc. 9.950 02/01/11 50,000 54,260 56,280 Vertis, Inc. 10.875 06/15/09 280,000 275,400 275,800 - --------------------------------------------------------------------------------------------------------------------------------- 24
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS JUNE 30, 2006 (Unaudited)
Shares or Interest Due Principal CORPORATE PUBLIC SECURITIES (A) (CONTINUED) Rate Date Amount Cost Market Value - --------------------------------------------------------------------------------------------------------------------------------- BONDS, CONTINUED Vicorp Restaurants, Inc. 10.500% 04/15/11 $ 475,000 $ 462,820 $ 422,750 Vought Aircraft Industries 8.000 07/15/11 1,000,000 1,000,071 905,000 Warner Music Group 7.375 04/15/14 275,000 275,000 266,750 Wornick Co. 10.875 07/15/11 750,000 750,000 755,625 ------------ ------------ TOTAL BONDS 67,430,009 66,587,501 ------------ ------------ COMMON STOCK - 1.55% Aventine Renewable Energy (B) 400 $ 17,200 $ 15,560 Bally Total Fitness Holding Corporation (B) 600 5,520 4,068 Basin Water, Inc. (B) 2,100 25,200 21,042 Dyncorp International, Inc. (B) 8,100 121,500 84,078 Gmarket, Inc. (B) 400 6,100 6,148 J Crew Group, Inc. (B) 4,100 82,000 112,545 PepsiAmericas, Inc. (B) 92,145 2,006,365 2,037,326 Rent-Way, Inc. (B) 92,866 916,263 685,351 Supreme Industries, Inc. (B) 115,722 267,325 830,884 Telex Communications, Inc. (B) 17,707 1 177,075 Telex Communications, Inc. (B) 489 7 4,890 Theravance, Inc. (B) 13 101 297 ------------ ------------ TOTAL COMMON STOCK 3,447,582 3,979,264 ------------ ------------ CONVERTIBLE BONDS - 1.09% Citadel Broadcasting Corporation 1.875% 02/15/11 $ 700,000 $ 543,375 $ 574,000 Graftech International 1.625 01/15/24 1,500,000 1,083,750 1,076,250 ICOS Corporation 2.000 07/01/23 750,000 596,250 613,125 Q L T, Inc. 3.000 09/15/23 600,000 546,257 541,500 ------------ ------------ TOTAL CONVERTIBLE BONDS 2,769,632 2,804,875 ------------ ------------ TOTAL CORPORATE PUBLIC SECURITIES $ 73,647,223 $ 73,371,640 ------------ ------------ Interest Due Principal Market SHORT-TERM SECURITIES: Rate/Yield Date Amount Cost Value - --------------------------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER - 2.52% Centex Corporation 5.400% 07/06/06 $ 1,505,000 $ 1,503,871 $ 1,503,871 Textron Financial Corporation 5.400 07/05/06 5,000,000 4,997,000 4,997,000 ------------ ------------ TOTAL SHORT-TERM SECURITIES $ 6,500,871 $ 6,500,871 ------------ ------------ TOTAL INVESTMENTS 102.50% $261,508,236 $263,658,667 ============ ------------ Other Assets 6.18 15,899,998 Liabilities (8.68) (22,341,704) ------ ------------ TOTAL NET ASSETS 100.00% $257,216,961 ====== ============ (A) In each of the convertible note, warrant, convertible preferred and common stock investments, the issuer has agreed to provide certain registration rights. (B) Non-income producing security. (C) Variable rate security; rate indicated is as of 06/30/06. (D) Defaulted security; interest not accrued. SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. - --------------------------------------------------------------------------------------------------------------------------------- 25
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS June 30, 2006 (Unaudited)
Fair Value/ Fair Value/ Industry Classification: (Cont.) Market Value Market Value - ------------------------------------------------------------ ------------------------------------------------------------ AEROSPACE - 2.15% BUILDINGS & REAL ESTATE - 1.49% Argo Tech Corporation $ 875,500 Adorn, Inc. $ 2,648,541 Bombardier, Inc. 870,000 Texas Industries, Inc. 69,300 Consolidated Foundries Holdings 2,591,769 TruStile Doors, Inc. 1,127,751 Dyncorp International, Inc. 84,078 ------------ Esterline Technologies 202,500 3,845,592 Vought Aircraft Industries 905,000 ------------ ------------ CHEMICAL, PLASTICS 5,528,847 & RUBBER - 1.16% ------------ Capital Specialty Plastics, Inc. 55,408 AUTOMOBILE - 8.48% Huntsman LLC 358,020 American Tire Distributor 930,000 Koppers, Inc. 511,582 Gencorp, Inc. 275,188 Lyondell Chemical Co. 544,575 Goodyear Tire & Rubber Co. 1,298,500 Nova Chemicals Corporation 471,438 Jason, Inc. 1,982,211 P Q Corporation 1,034,000 LIH Investors, L.P. 4,562,472 ------------ Metaldyne Corporation 1,130,925 2,975,023 Nyloncraft, Inc. 2,465,203 ------------ Ontario Drive & Gear Ltd. 2,445,698 CONSUMER PRODUCTS - 8.78% Qualis Automotive LLC 3,144,824 ALH Fin LLC/ALH Fin Corporation 916,750 Transtar Holding Company 2,503,572 Appleton Papers, Inc. 303,000 United Components, Inc. 1,063,800 Augusta Sportswear Holding Co. 2,873,961 ------------ Bravo Sports Holding Corporation 2,479,769 21,802,393 Euro-Pro Corporation 341,618 ------------ Flutes, Inc. 1,526,625 BEVERAGE, DRUG & FOOD - 6.29% G F S I, Inc. 708,750 Beta Brands Ltd. -- K N B Holdings Corporation 2,482,965 Cains Foods, L.P. 323,911 Maverick Acquisition Company 1,052,014 Del Monte Corporation 231,750 Royal Baths Manufacturing Company 1,125,455 Dominos Pizza, Inc. 302,950 Savage Sports Holding, Inc. 2,092,852 Eagle Pack Pet Foods, Inc. 1,600,674 The Tranzonic Companies 3,781,610 Land O'Lakes, Inc. 780,000 Walls Industries, Inc. 2,909,785 Mrs. Fields Brands 660,000 Winsloew Furniture, Inc. -- National Wine & Spirits, Inc. 1,260,000 ------------ Nonni's Food Company 2,187,954 22,595,154 PepsiAmericas, Inc. 2,037,326 ------------ Pinnacle Foods Group 442,125 CONTAINERS, PACKAGING River Ranch Fresh Foods LLC 1,657,500 & GLASS - 4.73% Sbarro, Inc. 1,018,750 NABCO, Inc. 1,222,069 Specialty Foods Group, Inc. -- P I I Holding Corporation 2,560,624 Vicorp Restaurants, Inc. 422,750 Packaging Corporation of America 700,000 Vitality Foodservice, Inc. 2,502,731 Paradigm Packaging, Inc. 2,342,698 Wornick Co. 755,625 Pliant Corporation 852,892 ------------ Pregis Corporation 1,040,000 16,184,046 Tekni-Plex, Inc. 1,322,500 ------------ Vitex Packaging, Inc. 2,123,417 BROADCASTING & ------------ ENTERTAINMENT - 2.84% 12,164,200 CCH I Holdings LLC 1,485,000 ------------ C S C Holdings, Inc. 500,000 DISTRIBUTION - 3.13% Cablevision Systems Corporation 1,060,000 Affina Group, Inc. 825,825 Cenveo Corporation 1,072,500 Corvest Group, Inc. 965,909 Charter Communications Op LLC 248,750 Kele and Associates, Inc. 2,660,744 Citadel Broadcasting Company 574,000 O R S Nasco Holding, Inc. 2,471,245 Liberty Media Corporation 908,131 QualServ Corporation 1,136,138 Lodgenet Entertainment Corporation 452,625 Strategic Equipment & Supply Corporation, Inc. -- Mediacom LLC 995,000 ------------ ------------ 8,059,861 7,296,006 ------------ ------------ - ---------------------------------------------------------------------------------------------------------------------------------- 26
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS June 30, 2006 (Unaudited)
Fair Value/ Fair Value/ Industry Classification: (Cont.) Market Value Market Value - ------------------------------------------------------------ ------------------------------------------------------------ DIVERSIFIED/CONGLOMERATE, FINANCIAL SERVICES - 1.93% MANUFACTURING - 9.28% BCP Crystal US Holding Corporation $ 526,225 Activant Solutions, Inc. $ 145,125 Dollar Financial Group 645,000 AmerCable, Inc. 1,418,462 East River Ventures I, L.P. 8,104 Arrow Tru-Line Holdings, Inc. 2,459,910 Ford Motor Credit Company 1,155,673 Coining Corporation of America LLC 1,934,102 General Motors Acceptance Corporation 1,243,554 Dexter Magnetics Technologies, Inc. 1,213,807 Highgate Capital LLC 2,947 Douglas Dynamics LLC 598,500 Lazard LLC 757,988 Evans Consoles, Inc. -- Leucadia National Corporation 630,500 Geo Sub Corporation 603,000 Victory Ventures LLC 2 Gmarket, Inc. 6,148 ------------ Graftech International 1,076,250 4,969,993 Great Lakes Dredge & Dock Corporation 935,069 ------------ H M Holding Company 2,448,730 HEALTHCARE, EDUCATION & Justrite Manufacturing Acquisition Co. 1,538,477 CHILDCARE - 3.86% Magnatech International, Inc. 1,909,621 A T I Acquisition Company 1,881,238 Radiac Abrasives, Inc. 2,460,416 American Hospice Management Holding LLC 2,652,059 Rock-Tenn Co. 1,000,000 F H S Holdings LLC 2,629,262 Trimas Corporation 571,875 ICOS Corporation 613,125 Truck Bodies & Equipment International 3,557,313 Interactive Health LLC 716,130 ------------ MedAssist, Inc. 400,743 23,876,805 Q L T, Inc. 541,500 ------------ Tenet Healthcare Corporation 5 00,000 DIVERSIFIED/CONGLOMERATE, Theravance, Inc. 297 SERVICE - 7.32% ------------ Abitibi-Consolidated, Inc. 917,500 9,934,354 Allied Waste NA 1,000,000 ------------ CapeSuccess LLC 5,862 HOME & OFFICE FURNISHINGS, Chemed Corporation 1,181,250 HOUSEWARES, AND DURABLE Diversco, Inc./DHI Holdings, Inc. 2,505,724 CONSUMER PRODUCTS - 3.92% Dwyer Group, Inc. 2,810,418 Connor Sport Court International, Inc. 1,802,907 Fowler Holding, Inc. 2,451,972 Home Decor Holding Company 2,330,729 Interline Brands, Inc. 324,188 Monessen Holding Corporation 2,485,416 Keystone North America, Inc. 296,871 Samsonite Corporation 1,037,500 Mac-Gray Corporation 606,000 U-Line Corporation 2,425,315 Moss, Inc. 1,697,342 ------------ Service Corporation International 935,000 10,081,867 U S M Holdings Corporation 3,688,788 ------------ Universal City Florida 407,500 LEISURE, AMUSEMENT, ------------ ENTERTAINMENT - 2.80% 18,828,415 A M C Entertainment, Inc. 872,050 ------------ Bally Total Fitness Holding Corporation 136,706 ELECTRONICS - 1.99% IMAX Corporation 1,025,000 A E S Corporation 215,000 Keepsake Quilting, Inc. 1,148,506 Calpine Corporation 470,000 M G M Mirage, Inc. 364,688 Directed Electronics, Inc. 3,396,044 Majestic Star Casino LLC 523,750 Flextronics International Ltd. 380,000 O E D Corp/Diamond Jo Company Guarantee 1,006,250 Siebe PLC 665,883 Overton's Holding Company 1,868,138 ------------ Warner Music Group 266,750 5,126,927 ------------ ------------ 7,211,838 FARMING & AGRICULTURE - 0.00% ------------ Protein Genetics, Inc. -- ------------ - ---------------------------------------------------------------------------------------------------------------------------------- 27
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS June 30, 2006 (Unaudited)
Fair Value/ Fair Value/ Industry Classification: (Cont.) Market Value Market Value - ------------------------------------------------------------ ------------------------------------------------------------ MACHINERY - 6.90% RETAIL STORES - 5.03% Aearo Co. Blockbuster, Inc. $ 442,938 Basin Water, Inc. $ 21,042 Insurance Auto Auctions, Inc. 985,000 C & M Conveyor, Inc. 2,621,838 J Crew Group, Inc. 112,545 Integration Technology Systems, Inc. 1,248,333 Neff Motivation, Inc. 1,298,818 Manitowoc Company, Inc. 196,000 Neiman Marcus Group, Inc. 1,328,125 Maxon Corporation 3,245,921 Olympic Sales, Inc. 4,715,110 Safety Speed Cut Manufacturing Company, Inc. 2,193,495 Rent-A-Center, Inc. 398,000 Stanadyne Corporation 1,402,500 Rent-Way, Inc. 1,508,351 Stewart & Stevenson LLC 225,844 TVI, Inc. 1,094,376 Supreme Industries, Inc. 830,884 United Rentals, Inc. 1,050,625 Synventive Equity LLC 33,459 ------------ Tronair, Inc. 3,239,249 12,933,888 Tubular Textile Machinery 2,480,712 ------------ ------------ TECHNOLOGY - 0.17% 17,739,277 Cymer, Inc. ------------ Magnachip Semiconductor 83,000 MEDICAL DEVICES/BIOTECH - 3.14% Sungard Data Systems 181,563 Beacon Medical Products, Inc. 2,640,417 Unisys Corporation 176,700 Coeur, Inc. 1,266,085 ------------ E X C Acquisition Corporation 148,852 441,263 MicroGroup, Inc. 2,504,231 ------------ OakRiver Technology, Inc. 1,513,740 TELECOMMUNICATIONS - 3.03% ------------ Alamosa Delaware 779,875 8,073,325 Cincinnati Bell, Inc. 1,083,500 ------------ Intelsat Subsidiary Holding Company Ltd. 454,500 MINING, STEEL, IRON & ITC^DeltaCom, Inc. 2,687,865 NON PRECIOUS METALS - 0.04% Rogers Wireless, Inc. 1,213,650 U S S Holdings, Inc. 108,991 Telex Communications, Inc. 1,063,401 ------------ Triton P C S, Inc. 504,625 OIL AND GAS - 5.18% ------------ Aventine Renewable Energy 15,560 7,787,416 Basic Energy Services 209,250 ------------ Brigham Exploration Company 686,000 TRANSPORTATION - 1.13% C & J Spec-Rent Services, Inc. 3,808,704 Quality Distribution LLC 322,156 Chesapeake Energy Corporation 1,040,063 Tangent Rail Corporation 2,574,767 Clayton Williams Energy, Inc. 736,000 ------------ Dynegy Holdings, Inc. 797,550 2,896,923 Fuel Systems Holding Corporation 2,461,793 ------------ GulfMark Offshore, Inc. 550,875 UTILITIES - 1.61% North American Energy Partners 384,000 Atlas Pipeline Partners 199,250 Offshore Logistics, Inc. 415,125 Edison Mission Energy 491,250 Pacific Energy Partners 650,500 El Paso Corporation 1,068,375 Petrohawk Energy Corporation 543,043 Inergy LP 151,500 Quicksilver Resources, Inc. 468,750 Markwest Energy Operating Co. 437,000 Transmontaigne, Inc. 553,800 Moog, Inc. 112,800 ------------ N R G Energy, Inc. 170,625 13,321,013 Nalco Co. 498,750 ------------ Sierra Pacific Resources 599,960 PHARMACEUTICALS - 1.01% Tenaska Alabama Partners L.P. 342,875 CorePharma LLC 2,480,933 Utilicorp United, Inc. 56,280 Enzymatic Therapy, Inc. 106,250 ------------ ------------ 4,128,665 2,587,183 ------------ ------------ WASTE MANAGEMENT / PUBLISHING/PRINTING - 1.60% POLLUTION - 0.99% Cadmus Communications Corporation 742,500 Terra Renewal Services, Inc. 2,540,387 Houghton Mifflin Co. 1,037,500 ------------ Newark Group, Inc. 786,250 TOTAL CORPORATE RESTRICTED AND Primedia, Inc. 895,000 PUBLIC SECURITIES - 99.98% $257,157,796 Sheridan Acquisition Corporation 381,094 ============ Vertis, Inc. 275,800 ------------ 4,118,144 ------------ SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - ---------------------------------------------------------------------------------------------------------------------------------- 28
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS (Unaudited) 1. HISTORY MassMutual Corporate Investors (the "Trust") commenced operations in 1971 as a Delaware corporation. Pursuant to an Agreement and Plan of Reorganization dated November 14, 1985, approved by shareholders, the Trust was reorganized as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts, effective November 28, 1985. The Trust is a diversified closed-end management investment company. Babson Capital Management LLC ("Babson Capital"), a wholly-owned indirect subsidiary of Massachusetts Mutual Life Insurance Company ("MassMutual"), acts as its investment adviser. The Trust's investment objective is to maintain a portfolio of securities providing a fixed yield while providing an opportunity for capital gains by investing primarily in a portfolio of privately placed below investment grade, long term corporate debt obligations with equity features, such as warrants, conversions rights, or other equity features and, occasionally, preferred stocks purchased directly from their issuers. On January 27, 1998, the Board of Trustees authorized the formation of a wholly-owned subsidiary ("MMCI Subsidiary Trust") for the purpose of holding certain investments. The results of MMCI Subsidiary Trust have been included in the accompanying consolidated financial statements. Footnote 2.D below discusses the Federal tax consequences of the MMCI Subsidiary Trust. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed consistently by the Trust in the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. A. VALUATION OF INVESTMENTS: Valuation of a security in the Trust's portfolio is made on the basis of market price whenever market quotations are readily available and all securities of the same class held by the Trust can be readily sold in such market. Nearly all securities which are acquired by the Trust directly from the issuers and shares into which such securities may be converted or which may be purchased on the exercise of warrants attached to such securities will be subject to legal or contractual delays in, or restrictions on, resale and will therefore be "restricted securities." Generally speaking, as contrasted with open-market sales of unrestricted securities which may be effected immediately if the market is adequate, absent an exemption from registration, restricted securities can be sold only in a public offering for which a registration statement is in effect under the Securities Act of 1933, as amended (the "1933 Act"). The value of restricted securities, and of any other assets for which there are no reliable market quotations, is the fair value as determined in good faith by the Trust's Board of Trustees (the "Trustees"). Each restricted security is valued by the Trustees at the time of the acquisition thereof and at least quarterly thereafter. The Trustees have established guidelines to aid in the valuation of each security. Generally, restricted securities are initially valued at cost or less at the time of acquisition by the Trust. Values greater or less than cost are used thereafter for restricted securities in appropriate circumstances. Among the factors ordinarily considered are the existence of restrictions upon the sale of the security by the Trust; an estimate of the existence and extent of a market for the security; the extent of any discount at which the security was acquired; the estimated period of time during which the security will not be freely marketable; the estimated expenses of registering or otherwise qualifying the security for public sale; estimated underwriting commissions if underwriting would be required to effect a sale; in the case of a convertible security, whether or not it would trade on the basis of its stock equivalent; in the case of a debt obligation which would trade independently of any equity equivalent, the current yields on comparable securities; the estimated amount of the floating supply of such securities available for purchase; the proportion of the issue held by the Trust; changes in the financial condition and prospects of the issuer; the existence of merger proposals or tender offers affecting the issuer; and any other factors affecting fair value, all in accordance with the Investment Company Act of 1940, as amended (the "1940 Act"). In making valuations, opinions of counsel may be relied upon as to whether or not securities are restricted securities and as to the legal requirements for public sale. When market quotations are readily available for unrestricted securities of an issuer, restricted securities of the same class are generally valued at a discount from the market price of such unrestricted securities. The Trustees, however, consider all factors in fixing any discount, including the filing of a registration statement for such securities under the 1933 Act and any other developments which are likely to increase the probability that the securities may be publicly sold by the Trust without restriction. The Trustee's meet at least once each quarter to value the Trust's portfolio securities as of the close of business on the last business day of the preceding quarter. This valuation requires the approval of a majority of the Trustees of the Trust, including a majority of the Trustees who are not interested persons of the Trust or of Babson Capital, the Trust's investment adviser. In making valuations, the Trustees will consider reports by Babson Capital analyzing each portfolio security in accordance with the relevant factors referred to above. Babson Capital has agreed to provide such reports to the Trust at least quarterly. - -------------------------------------------------------------------------------- 29 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS (CONTINUED) The consolidated financial statements include private placement restricted securities valued at $170,393,268 (66.24% of net assets) as of June 30, 2006 whose values have been estimated by the Trustees in the absence of readily ascertainable market values. Due to the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the securities existed, and the differences could be material. The values for corporate public securities are stated at the last reported sales price or at prices based upon quotations obtained from brokers and dealers as of June 30, 2006, subject to discount where appropriate, and are approved by the Trustees. Short-term securities with more than sixty days to maturity are valued at fair value and short-term securities having a maturity of sixty days or less are valued at amortized cost which approximates market value. B. ACCOUNTING FOR INVESTMENTS: Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis, including the amortization of premiums and accretion of discounts on bonds held. The Trust does not accrue income when payment is delinquent and when management believes payment is questionable. Realized gains and losses on investment transactions and unrealized appreciation and depreciation of investments are reported for financial statement and Federal income tax purposes on the identified cost method. C. USE OF ESTIMATES: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. D. FEDERAL INCOME TAXES: The Trust has elected to be taxed as a "regulated investment company" under the Internal Revenue Code and intends to maintain this qualification and to distribute substantially all of its net taxable income to its shareholders. In any year when net long-term capital gains are realized by the Trust, management, after evaluating the prevailing economic conditions, will recommend to the Trustees either to designate the net realized long-term gains as undistributed and pay the federal capital gains taxes thereon or to distribute all or a portion of such net gains. The Trust is taxed as a regulated investment company and is therefore limited as to the amount of non-qualified income that it may receive as the result of operating a trade or business, e.g. the Trust's pro rata share of income allocable to the Trust by a partnership operating company. The Trust's violation of this limitation could result in the loss of its status as a regulated investment company, thereby subjecting all of its net income and capital gains to corporate taxes prior to distribution to its shareholders. The Trust, from time-to-time, identifies investment opportunities in the securities of entities that could cause such trade or business income to be allocable to the Trust. The MMCI Subsidiary Trust (described in Footnote 1, above) was formed in order to allow investment in such securities without adversely affecting the Trust's status as a regulated investment company. The MMCI Subsidiary Trust is not taxed as a regulated investment company. Accordingly, prior to the Trust receiving any distributions from the MMCI Subsidiary Trust, all of the MMCI Subsidiary Trust's taxable income and realized gains, including non-qualified income and realized gains, is subject to taxation at prevailing corporate tax rates. For the six months ended June 30, 2006, the MMCI Subsidiary Trust has accrued tax expense on net realized gains of $350,255 and reduced deferred tax expense on net unrealized gains by $129,220. E. DISTRIBUTIONS TO SHAREHOLDERS: The Trust records distributions to shareholders from net investment income and net realized gains, if any, on the exdividend date. The Trust's net investment income dividend is declared four times per year, in April, July, October, and December. The Trust's net realized capital gain distribution, if any, is declared in December. 3. INVESTMENT SERVICES CONTRACT A. NEW INVESTMENT SERVICES CONTRACT: An Investment Services Contract between the Trust and Babson Capital, effective October 1, 2005 (the "New Contract"), provides for a quarterly investment advisory fee of 0.3125% of the net asset value of the Trust each quarter, which is approximately equal to 1.25% annually, with no performance adjustment. The New Contract provides that for its first eighteen months, the investment advisory fee cannot exceed the amount that Babson Capital would have been paid under the prior Investment Services Contract with the Trust dated July 1, 1988 (the "Prior Contract"). B. SERVICES: Under the New Contract with the Trust, Babson Capital agrees to use its best efforts to present to the Trust a continuing and suitable investment program consistent with the - -------------------------------------------------------------------------------- 30 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS (CONTINUED) investment objectives and policies of the Trust. Babson Capital represents the Trust in any negotiations with issuers, investment banking firms, securities brokers or dealers and other institutions or investors relating to the Trust's investments. Under the New Contract, Babson Capital provides administration of the day-to-day operations of the Trust and provides the Trust with office space and office equipment, accounting and bookkeeping services, and necessary executive, clerical and secretarial personnel for the performance of the foregoing services. C. PRIOR INVESTMENT SERVICES CONTRACT ADVISORY FEE: Under the Prior Contract, the Trust paid Babson Capital a quarterly base rate (the "Base Fee Rate") of 5/16 of 1% of the value of the Trust's net assets as of the end of each fiscal quarter, approximately equivalent to 1.25% of the net asset value of the Trust on an annual basis, plus or minus a quarterly performance adjustment (the "Performance Adjustment") of up to 1/16 of 1% of net asset value, approximately equivalent to plus or minus 0.25% on an annual basis. The Performance Adjustment was based on the Trust's performance as compared to a benchmark rate of return (the "Target Rate") equal to 5.0 percentage points plus an unweighted, arithmetic average of the rates of return of the Standard & Poor's Industrials Composite (formerly called the Standard & Poor's Industrial Price Index) and the Lehman Brothers Intermediate U.S. Credit Index (formerly called the Lehman Brothers Corporate Bond Index) over a rolling three-year period (the "Measurement Period") comprising the twelve quarters ending on the last day of each quarter (the "Valuation Date"). Since the Standard & Poor's Industrials Composite is not readily available to the general public, Babson Capital obtained the information for this index from Factset Research Systems. The three-year annualized return for the Standard & Poor's Industrials Composite for the period ended June 30, 2006 was 10.47%. Under the Prior Contract, the Performance Adjustment was equal to 5% of the difference between the Trust's actual rate of return over the Measurement Period and the Target Rate. If the Trust's actual rate of return exceeded the Target Rate, the Base Fee Rate would be increased by an amount equal to the Performance Adjustment; if the Trust's actual rate of return was less than the Target Rate, the Base Fee Rate was reduced by the Performance Adjustment. Under the Prior Contract, the investment advisory fee payable by the Trust would be equal to the Base Fee Rate (as adjusted by the Performance Adjustment) times the net asset value of the Trust as of the Valuation Date. Additionally, Babson Capital agreed to waive, for each quarter beginning July 1, 2004, the amount, if any, by which the investment advisory fee calculated in the manner described in the Prior Contract exceeded the sum of (i) 5/16 of 1% times the ending net asset value for that quarter plus or minus (ii) the Performance Adjustment applied against the average quarter end net assets for the Trust for the twelve-quarter period ending on such quarter. 4. SENIOR SECURED INDEBTEDNESS A. NOTE PAYABLE: MassMutual holds the Trust's $20,000,000 Senior Fixed Rate Convertible Note (the "Note") issued by the Trust in 1995. The Note, as amended, is due November 15, 2007 and accrues at 7.39% per annum. MassMutual, at its option, can convert the principal amount of the Note into common shares. The dollar amount of principal would be converted into an equivalent dollar amount of common shares based upon the average price of the common shares for ten business days prior to the notice of conversion. For the six months ended June 30, 2006, the Trust incurred total interest expense on the Note of $739,000. The Trust may redeem the Note, in whole or in part, at the principal amount proposed to be redeemed together with the accrued and unpaid interest thereon through the redemption date plus the Make Whole Premium. The Make Whole Premium equals the excess of (i) the present value of the scheduled payments of principal and interest which the Trust would have paid but for the proposed redemption, discounted at the rate of interest of U.S. Treasury obligations whose maturity approximates that of the Note plus 0.50% over (ii) the principal of the Note proposed to be redeemed. B. REVOLVING CREDIT AGREEMENT: The Trust entered into a Revolving Credit Agreement (the "Revolver") with The Royal Bank of Scotland PLC as of May 31, 2005 (the "Agent Bank"), in the principal amount of $25,000,000, maturing May 31, 2008. The Revolver bears interest payable in arrears at a per annum rate that varies depending upon whether the Trust requests a Base Rate Loan or LIBOR Rate Loan. Interest on Base Rate Loans equals the higher of: (i) the annual "Base Rate" as set periodically by the Agent Bank and (ii) the most recent Federal Funds Effective Rate plus .50% per annum. Per annum interest on LIBOR Rate Loans equals .37% plus the London Inter Bank Offered Rate ("LIBOR") rate, divided by 1 minus LIBOR Reserve Rate. The Trust also incurs expense on the undrawn portion of the total Revolver at a rate of .15% per annum. As of June 30, 2006, there was no outstanding amount against the Revolver. For the six months ended June 30, 2006, the Trust incurred total expense on the Revolver of $18,596 related to the undrawn portion. - -------------------------------------------------------------------------------- 31 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS (CONTINUED) 5. PURCHASES AND SALES OF INVESTMENTS FOR THE SIX MONTHS ENDED 6/30/2006 COST OF PROCEEDS FROM INVESTMENTS SALES OR ACQUIRED MATURITIES ------------ ------------ Corporate restricted securities $ 42,756,607 $ 22,817,472 Corporate public securities 10,034,066 24,799,460 The aggregate cost of investments was substantially the same for financial reporting and federal income tax purposes as of June 30, 2006. The net unrealized appreciation of investments for financial reporting and federal tax purposes as of June 30, 2006 is $2,150,431 and consists of $24,080,410 appreciation and $21,929,979 depreciation. Net unrealized appreciation of investments on the Statement of Assets and Liabilities reflects the balance of a tax accrual of $146,353 on net unrealized gains on the MMCI Subsidiary Trust. 6. QUARTERLY RESULTS OF INVESTMENT OPERATIONS March 31, 2006 Amount Per Share ----------- ------------ Investment income $ 6,350,324 Net investment income $ 5,061,431 $ 0.56 Net realized and unrealized gain $ 7,598,686 $ 0.84 on investments (net of taxes) June 30, 2006 Amount Per Share ----------- ------------ Investment income $ 6,202,668 Net investment income $ 4,891,333 $ 0.53 Net realized and unrealized gain $ 6,204,073 $ 0.68 on investments (net of taxes) 7. AGGREGATE REMUNERATION PAID TO OFFICERS, TRUSTEES AND THEIR AFFILIATED PERSONS For the six months ended June 30, 2006, the Trust paid its Trustees aggregate remuneration of $79,000. The Trust did not pay any compensation to any of its Trustees who are "interested persons" (as defined by the 1940 Act) of the Trust. The Trust currently classifies Messrs. Crandall and Joyal as "interested persons" of the Trust. All of the Trust's officers are employees of Babson Capital or MassMutual. Pursuant to the Investment Services Contracts, the Trust does not compensate its officers who are employees of Babson Capital or MassMutual. Mr. Crandall, one of the Trust's Trustees, is an "affiliated person" (as defined by the 1940 Act) of MassMutual and Babson Capital. The Trust did not make any payments to Babson Capital for the six months ended June 30, 2006, other than amounts payable to Babson Capital pursuant to the Investment Services Contract. For the six months ended June 30, 2006, the Trust paid the following amounts to MassMutual, exclusive of interest expense on the Note explained in Footnote 4.A: Preparation of the Trust's Quarterly and Annual Reports to Shareholders $ 7,277 Preparation of Certain of the Trust's Shareholder Communications 657 Preparation of the Trust's Annual Proxy Statements 588 ------- $ 8,522 ======= 8. RESULTS OF SHAREHOLDER MEETING The Annual Meeting of Shareholders was held on Friday, April 21, 2006. The Shareholders voted to elect Roger W. Crandall and Martin T. Hart as trustees, each for a three-year term. The Trust's other trustees (Donald E. Benson, Michael H. Brown, Donald Glickman, Robert E. Joyal, Jack A. Laughery and Corine T. Norgaard) continued to serve their respective terms following the April 21, 2006 Annual Shareholders Meeting. The results of the Shareholders' votes are set forth below. TRUSTEE ROGER W. MARTIN T. CRANDALL HART --------- --------- Shares for 7,102,714 7,065,957 Withheld 76,936 113,693 Total 7,179,650 7,179,650 % of Shares Voted for 98.93% 98.42% 9. SUBSEQUENT EVENT At the Board of Trustees' July 18, 2006 quarterly meeting, the Board voted to expand the Board from eight to nine Trustees and appointed William J. Barrett as a Trustee for a three-year term of office. - -------------------------------------------------------------------------------- 32 TRUSTEES OFFICERS William J. Barrett Roger W. Crandall Chairman Donald E. Benson* Clifford M. Noreen President Michael H. Brown James M. Roy Vice President & Chief Financial Officer Roger W. Crandall Rodney J. Dillman Vice President & Donald Glickman Secretary Martin T. Hart* Jill A. Fricchione Vice President Robert E. Joyal Michael P. Hermsen Vice President Jack A. Laughery Mary Wilson Kibbe Vice President Corine T. Norgaard* Michael L. Klofas Vice President Richard E. Spencer, II Vice President Ronald S. Talaia Treasurer John T. Davitt, Jr. Comptroller Melissa M. LaGrant Chief Compliance Officer *MEMBER OF THE AUDIT COMMITTEE - -------------------------------------------------------------------------------- DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN MassMutual Corporate Investors offers a Dividend Reinvestment and Share Purchase Plan. The Plan provides a simple way for shareholders to add to their holdings in the Trust through the receipt of dividend shares issued by the Trust or through the reinvestment of cash dividends in Trust shares purchased in the open market. A shareholder may join the Plan by filling out and mailing an authorization card to Shareholder Financial Services, Inc., the Transfer Agent. Participating shareholders will continue to participate until they notify the Transfer Agent, in writing, of their desire to terminate participation. Unless a shareholder elects to participate in the Plan, he or she will, in effect, have elected to receive dividends and distributions in cash. Participating shareholders may also make additional contributions to the Plan from their own funds. Such contributions may be made by personal check or other means in an amount not less than $10 nor more than $5,000 per quarter. Whenever the Trust declares a dividend payable in cash or shares, the Transfer Agent, acting on behalf of each participating shareholder, will take the dividend in shares only if the net asset value is lower than the market price plus an estimated brokerage commission as of the close of business on the valuation day. The valuation day is the last day preceding the day of dividend payment. When the dividend is to be taken in shares, the number of shares to be received is determined by dividing the cash dividend by the net asset value as of the close of business on the valuation date or, if greater than net asset value, 95% of the closing share price. If the net asset value of the shares is higher than the market value plus an estimated commission, the Transfer Agent, consistent with obtaining the best price and execution, will buy shares on the open market at current prices promptly after the dividend payment date. The reinvestment of dividends does not, in any way, relieve participating shareholders of any federal, state or local tax. For federal income tax purposes, the amount reportable in respect of a dividend received in newlyissued shares of the Trust will be the fair market value of the shares received, which will be reportable as ordinary income and/or capital gains. As compensation for its services, the Transfer Agent receives a fee of 5% of any dividend and cash contribution (in no event in excess of $2.50 per distribution per shareholder.) Any questions regarding the Plan should be addressed to Shareholder Financial Services, Inc., Agent for MassMutual Corporate Investors' Dividend Reinvestment and Share Purchase Plan, P.O. Box 173673, Denver CO 80217-3673. MASSMUTUAL CORPORATE INVESTORS DB1039 806 ITEM 2. CODE OF ETHICS. Not applicable for this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable for this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable for this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable for this filing. ITEM 6. SCHEDULE OF INVESTMENTS Not applicable for this filing. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES. Not applicable for this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable for this filing. There have been no changes in any of the Portfolio Managers identified in the Registrant's most recent annual report on Form N-CSR. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not Applicable for this filing. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not Applicable for this filing. ITEM 11. CONTROLS AND PROCEDURES. (a) The principal executive officer and principal financial officer of the Registrant evaluated the effectiveness of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as of a date within 90 days of the filing date of this report and based on that evaluation have concluded that such disclosure controls and procedures are effective to provide reasonable assurance that material information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the Registrant's second fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) ANY CODE OF ETHICS, OR AMENDMENTS THERETO, THAT IS THE SUBJECT OF DISCLOSURE REQUIRED BY ITEM 2, TO THE EXTENT THAT THE REGISTRANT INTENDS TO SATISFY THE ITEM 2 REQUIREMENTS THROUGH THE FILING OF AN EXHIBIT. None. (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. Attached hereto as EX-99.31.1 Attached hereto as EX-99.31.2 (a)(3) ANY WRITTEN SOLICITATION TO PURCHASE SECURITIES UNDER RULE 23c-1 UNDER THE ACT (17 CFR 270.23c-1) SENT OR GIVEN DURING THE PERIOD COVERED BY THE REPORT BY OR ON BEHALF OF THE REGISTRANT TO 10 OR MORE PERSONS. Not Applicable for this filing. (b) CERTIFICATIONS PURSUANT TO RULE 30a-2(b) UNDER THE ACT. Attached hereto as EX-99.32 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): MassMutual Corporate Investors ---------------------------------- By: /s/ Clifford M. Noreen ---------------------------------- Clifford M. Noreen, President ---------------------------------- Date: September 5, 2006 ---------------------------------- 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/ Clifford M. Noreen ---------------------------------- Clifford M. Noreen, President ---------------------------------- Date: September 5, 2006 ---------------------------------- By: /s/ James M. Roy ---------------------------------- James M. Roy, Vice President, and Chief Financial Officer ---------------------------------- Date: September 5, 2006 ------------------------------ EX-99.311 2 exh99-311_14501.txt 302 CERTIFICATION OF THE PRESIDENT AND C.F.O. EXHIBIT-99.31.1 --------------- CERTIFICATION ------------- ITEM 12(a)(2) PRINCIPAL EXECUTIVE OFFICER CERTIFICATION I, Clifford M. Noreen, certify that: 1. I have reviewed this report on Form N-CSR of MassMutual Corporate Investors; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 5, 2006 /s/: Clifford M. Noreen - -------------------------------- Clifford M. Noreen President MassMutual Corporate Investors EXHIBIT-99.31.2 --------------- CERTIFICATION ------------- ITEM 12(a)(2) PRINCIPAL FINANCIAL OFFICER CERTIFICATION I, James M. Roy, certify that: 1. I have reviewed this report on Form N-CSR of MassMutual Corporate Investors; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 5, 2006 /s/: James M. Roy - -------------------------------- James M. Roy Vice President and Chief Financial Officer MassMutual Corporate Investors EX-99.32 3 exh99-32_14501.txt 906 CERTIFICATION OF THE PRESIDENT AND C.F.O. EXHIBIT-99.32 ------------- ITEM 12(b) To my knowledge, this periodic report containing the financial statements fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the issuer. /s/ Clifford M. Noreen - -------------------------------- Clifford M. Noreen President MassMutual Corporate Investors /s/ James M. Roy - -------------------------------- James M. Roy Vice President and Chief Financial Officer MassMutual Corporate Investors September 5, 2006 -----END PRIVACY-ENHANCED MESSAGE-----