N-CSRS 1 formn-csrs_15371.txt FORM N-CSRS 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 01115-5189 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Rodney J. Dillman, Vice President and Secretary 1500 Main Street, Suite 2800, Springfield, MA 01115-5189 -------------------------------------------------------------------------------- (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: 6/30/07 ------------------ 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, 2007 [LOGO] ADVISER Babson Capital Management LLC 1500 Main Street, P.O. Box 15189 Springfield, Massachusetts 01115-5189 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 [LOGO] MassMutual Corporate Investors c/o Babson Capital Management LLC 1500 Main Street, P.O. Box 15189 Springfield, Massachusetts 01115-5189 (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 "MassMulnv" 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 common stocks, 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 in private placement transactions. These investments are typically mezzanine debt investments with accompanying private equity securities made to small or middle market 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 taxable 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: 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: HTTP://WWW.SEC.GOV. MCI Listed NYSE TO OUR SHAREHOLDERS July 31, 2007 We are pleased to present the June 30, 2007 Semi-Annual Report of MassMutual Corporate Investors (the "Trust"). The Board of Trustees declared a quarterly dividend of 54 cents per share, payable on August 10, 2007 to shareholders of record on July 27, 2007. The Trust had previously paid a 52 cent per share dividend for the preceding quarter. U.S. equity markets, as measured by several broad market indices, posted robust returns for the quarter ended June 30, 2007. Large stocks, as approximated by the Dow Jones Industrial Average, increased 9.11%. Smaller stocks, as approximated by the Russell 2000 Index, increased 4.41%. For the six months ended June 30, 2007, returns were 8.75% and 6.45% for the Dow Jones Industrial Average and Russell 2000 Index, respectively. U.S. fixed income markets, as measured by several broad market indices posted weak results during the quarter. The Lehman Brothers Government/Credit Index decreased 0.49% for the quarter while the Lehman Brothers U.S. Corporate High Yield Index increased 0.22% for the quarter ended June 30, 2007. For the six months ended June 30, 2007, returns were 0.97% and 2.87% for the Lehman Brothers Government/Credit Index and the Lehman Brothers U.S. Corporate High Yield Index, respectively. The mezzanine and private equity markets in which the Trust invests continue to be competitive. Valuations and leverage levels have been at or near their highest levels since the late 1980's. Merger and acquisition activity has been very robust and fundraising efforts in the private equity fund space continue to break records. All of this adds up to a challenging market for providers of mezzanine and private equity capital such as the Trust. We have been through these cycles before and we believe that it is particularly important to continue to employ the same disciplined investment strategy that has served us well over the years. During the quarter ended June 30, 2007, the Trust made private placement investments in five new issuers and two "follow-on" investments, totaling approximately $7.5 million. The follow-on investments purchased by the Trust were Transtar Holding Company and NABCO, Inc. The five new issuers were Electra Bicycle Company, Inc., Mail Communications Group, Inc., Pacific Consolidated Holdings LLC, Visioneering, Inc. and Workplace Media Holding Co. The weighted average coupon of these investments was 11.93%. (A brief description of these investments can be found in the Consolidated Schedule of Investments.) During the quarter ended June 30, 2007, net assets of the Trust increased to $259,136,696 or $28.17 per share compared to $257,999,523 or $28.10 per share on March 31, 2007, which translates into a 2.11% total return for the quarter, based on the change in the Trust's net assets assuming the reinvestment of all dividends. Long term, the Trust returned 11.80%, 17.41%, 14.00%, and 15.90% for the 1-, 5-, 10- and 25-year time periods ended June 30, 2007, respectively, based on the change in the Trust's net assets assuming the reinvestment of all dividends. The Trust earned 64 cents per share of net investment income for the quarter, of which 10 cents per share was from nonrecurring items, compared to 53 cents per share in the previous quarter. During the quarter ended June 30, 2007, the market price of the Trust declined 12.0% from $36.35 per share to $32.00 per share, which translates into a -10.6% total return for the quarter, based on the change in the Trust's market value assuming reinvestment of all dividends. Long term, the Trust returned 12.15%, 18.45%, 16.61%, and 17.90% for the 1-, 5-, 10-, and 25-year time periods ended June 30, 2007, respectively, based on a change in the Trust's market value assuming the reinvestment of all dividends. The Trust's market price of $32.00 per share equates to a 13.6% premium over the June 30, 2007 NAV per share. The Trust's average quarter-end premium for the 1-, 5-, 10- and 25-year periods ended June 30, 2007, was 22.0%, 11.0%, 5.8% and -1.1%, respectively. Thank you for your continued interest in and support of MassMutual Corporate Investors. Sincerely, /s/ Clifford M. Noreen -------------------------- Clifford M. Noreen President ------------------------------------------- Portfolio Composition as of 06/30/07* [PIE CHART APPEARS HERE] Public High Yield Debt 24.2% Private Investment Grade Debt 4.3% Private/Restricted Equity 16.7% Cash & Short Term Investments 2.0% Private High Yield Debt 51.0% Public Equity 1.8% *Based on market value of total investments ------------------------------------------- -------------------------------------------------------------------------------- 1 CONSOLIDATED STATEMENT OF MASSMUTUAL CORPORATE INVESTORS ASSETS AND LIABILITIES June 30, 2007 (Unaudited)
ASSETS: Investments (See Consolidated Schedule of Investments) Corporate restricted securities at fair value (Cost - $199,488,882) $ 197,909,763 Corporate public securities at market value (Cost - $68,350,482) 71,349,910 Short-term securities at amortized cost 5,463,218 -------------- 274,722,891 Interest and dividends receivable 6,229,290 Receivable for investments sold 2,401,374 Other assets 12,729 -------------- TOTAL ASSETS $ 283,366,284 Liabilities: Payable for investments purchased $ 2,241,522 Investment advisory fee payable 809,802 Note payable 20,000,000 Due to custodian 272,028 Interest payable 188,856 Accrued expenses 136,557 Accounts payable 50,289 Accrued taxes payable 530,534 -------------- TOTAL LIABILITIES 24,229,588 -------------- TOTAL NET ASSETS $ 259,136,696 ============== Net Assets: Common shares, par value $1.00 per share; an unlimited number authorized 9,198,001 Additional paid-in capital 109,768,206 Retained net realized gain on investments, prior years 126,906,684 Undistributed net investment income 7,810,765 Accumulated net realized gain on investments 4,326,392 Net unrealized appreciation of investments 1,126,648 -------------- TOTAL NET ASSETS $ 259,136,696 -------------- COMMON SHARES ISSUED AND OUTSTANDING 9,198,001 ============== NET ASSET VALUE PER SHARE $ 28.17 ============== SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. ------------------------------------------------------------------------------------------- 2
CONSOLIDATED STATEMENT OF OPERATIONS MASSMUTUAL CORPORATE INVESTORS For the six months ended June 30, 2007 (Unaudited)
Investment Income: Interest $ 12,537,963 Dividends 898,261 Other 57,979 -------------- TOTAL INVESTMENT INCOME 13,494,203 -------------- Expenses: Investment advisory fees 1,616,051 Interest 757,596 Trustees' fees and expenses 90,000 Professional fees 63,000 Reports to shareholders 54,000 Transfer agent/registrar's expenses 18,000 Other 109,346 -------------- TOTAL EXPENSES 2,707,993 -------------- INVESTMENT INCOME - NET 10,786,210 -------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investments before taxes 4,352,410 Income tax expense (117,356) -------------- Net realized gain on investments 4,235,054 Net change in unrealized appreciation of investments before taxes (4,764,241) Net change in deferred income tax expense 357,356 -------------- Net change in unrealized appreciation of investments (4,406,885) NET LOSS ON INVESTMENTS (171,831) -------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,614,379 ============== SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. ------------------------------------------------------------------------------------------- 3
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended June 30, 2007 (Unaudited)
NET DECREASE IN CASH: Cash flows from operating activities: Interest, dividends, and other received $ 13,100,048 Interest expense paid (757,596) Operating expenses paid (1,893,528) Income taxes paid (6,416,485) -------------- NET CASH PROVIDED BY OPERATING ACTIVITIES 4,032,439 -------------- Cash flows from investing activities: Purchases/Proceeds/Maturities from short-term portfolio securities, net 1,874,690 Purchase of portfolio securities (43,496,779) Proceeds from disposition of portfolio securities 44,722,430 ------------- NET CASH PROVIDED BY INVESTING ACTIVITIES 3,100,341 -------------- NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES 7,132,780 -------------- Cash flows from financing activities: Cash dividends paid from net investment income (13,798,775) Cash dividends paid from net realized gain on investments (125,491) Receipts for shares issued on reinvestment of dividends 1,607,018 -------------- NET CASH USED FOR FINANCING ACTIVITIES (12,317,248) -------------- NET DECREASE IN CASH (5,184,468) Cash - beginning of year 5,184,468 -------------- CASH - END OF PERIOD $ -- ============== RECONCILIATION OF NET INCREASE IN NET ASSETS TO NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES: NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,614,379 -------------- Decrease in investments 2,625,061 Increase in interest and dividends receivable (94,625) Increase in receivable for investments sold (1,900,511) Increase in other assets (12,729) Increase in payable for investments purchased 2,241,522 Increase in due to custodian 272,028 Increase in investment advisory fee payable 23,272 Decrease in accrued expenses (29,420) Increase in accounts payable 50,289 Decrease in accrued taxes payable (6,656,486) -------------- TOTAL ADJUSTMENTS TO NET ASSETS FROM OPERATIONS (3,481,599) -------------- NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES $ 7,132,780 ============== SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. ------------------------------------------------------------------------------------------- 4
CONSOLIDATED STATEMENTS OF MASSMUTUAL CORPORATE INVESTORS CHANGES IN NET ASSETS
For the six months ended For the 06/30/2007 year ended (Unaudited) 12/31/2006 -------------- -------------- INCREASE IN NET ASSETS: OPERATIONS: Investment income - net $ 10,786,210 $ 20,681,143 Net realized gain on investments 4,235,054 12,301,691 Net change in unrealized appreciation of investments (4,406,885) 2,456,052 -------------- -------------- Net increase in net assets resulting from operations 10,614,379 35,438,886 Increase from common shares issued on reinvestment of dividends Common shares issued (2007 - 48,082; 2006 - 84,966) 1,607,018 2,619,000 Dividends to shareholders from: Net investment income (2007 - $0.52 per share; 2006 - $2.47 per share) (4,774,347) (22,518,167) Net realized gains on investments (2006 - $0.01 per share) -- (125,491) -------------- -------------- TOTAL INCREASE IN NET ASSETS 7,447,050 15,414,228 NET ASSETS, BEGINNING OF YEAR 251,689,646 236,275,418 -------------- -------------- NET ASSETS, END OF PERIOD/YEAR (including undistributed net investment income of $7,810,765 and $1,798,902, respectively) $ 259,136,696 $ 251,689,646 ============== ============== SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. --------------------------------------------------------------------------------------------------------------- 5
CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS MASSMUTUAL CORPORATE INVESTORS Selected data for each common share outstanding:
For the three months ended For the years ended December 31, 03/31/2007 -------------------------------------------------------------------------- (Unaudited) 2006 2005 2004 2003 2002 ---------- ---------- ---------- ---------- ---------- ---------- Net asset value: Beginning of year $ 27.51 $ 26.06 $ 24.34 $ 21.84 $ 19.40 $ 20.07 Net investment income (a) 1.17 2.27 2.03 2.00 1.44 1.53 Net realized and unrealized (loss) gain on investments (0.02) 1.62 1.96(b) 2.64 2.83 (0.59) ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations 1.15 3.89 3.99 4.64 4.27 0.94 ---------- ---------- ---------- ---------- ---------- ---------- Dividends from net investment income to common shareholders (0.52) (2.47) (2.11) (2.16) (1.84) (1.44) Dividends from net realized gain on investments to common shareholders -- (0.01) (0.18) -- -- (0.18) Increase from dividends reinvested 0.03 0.04 0.02 0.02 0.01 0.01 ---------- ---------- ---------- ---------- ---------- ---------- Total dividends (0.49) (2.44) (2.27) (2.14) (1.83) (1.61) ---------- ---------- ---------- ---------- ---------- ---------- Net asset value: End of period/year $ 28.17 $ 27.51 $ 26.06 $ 24.34 $ 21.84 $ 19.40 ---------- ---------- ---------- ---------- ---------- ---------- Per share market value: End of period/year $ 32.00 $ 34.89 $ 30.05 $ 28.50 $ 22.90 $ 19.49 ========== ========== ========== ========== ========== ========== Total investment return Market value (6.85%) 29.04% 16.95% 36.10% 27.53% 1.35% Net asset value (c) 4.30% 18.09% 20.04% 22.76% 22.61% 4.80% Net assets (in millions): End of period/year $ 259.14 $ 251.69 $ 236.28 $ 218.51 $ 193.79 $ 171.03 Ratio of operating expenses to average net assets 1.53%(d) 1.43% 1.78% 1.93% 2.04% 1.82% Ratio of interest expense to average net assets 0.60%(d) 0.60% 0.73% 0.77% 0.82% 0.86% Ratio of total expenses before custodian reduction to average net assets 2.13%(d) 2.07% 2.52% 2.70% 2.86% 2.68% Ratio of net expenses after custodian reduction to average net assets 2.13%(d) 2.03% 2.51% 2.70% 2.86% 2.68% Ratio of net investment income to average net assets 8.47%(d) 8.19% 7.98% 8.68% 6.95% 7.65% Portfolio turnover 14.47% 34.70% 35.22% 53.45% 56.10% 34.02% (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 $ 20 $ 29 $ 20 $ 20 Asset coverage per $1,000 of indebtedness $ 13,957 $ 13,584 $ 12,814 $ 8,535 $ 10,689 $ 9,551 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. --------------------------------------------------------------------------------------------------------------- 6
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES - 76.37%:(A) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- PRIVATE PLACEMENT INVESTMENTS - 69.83% 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 $ 2,134,831 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 63,287 shs. 03/23/06 63,958 63,958 ------------- ------------- 2,188,958 2,198,812 ------------- ------------- AERO HOLDINGS, INC. A provider of geospatial services to corporate and government clients. 10.5% Senior Secured Term Note due 2014 $ 1,627,500 03/09/07 1,603,088 1,581,664 14% Senior Subordinated Note due 2015 $ 1,260,000 03/09/07 1,126,168 1,220,543 Common Stock (B) 262,500 shs. 03/09/07 262,500 249,375 Warrant, exercisable until 2015, to purchase common stock at $.01 per share (B) 66,116 shs. 03/09/07 111,527 661 ------------- ------------- 3,103,283 3,052,243 ------------- ------------- 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 1,959,961 2,127,974 Preferred Class A Unit (B) 3,223 uts. * 322,300 354,530 Common Class B Unit (B) 30,420 uts. 01/22/04 1 89,811 Common Class D Unit (B) 6,980 uts. 09/12/06 1 20,607 ------------- ------------- 2,282,263 2,592,922 ------------- ------------- 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 1,539,234 1,630,609 Common Stock (B) 497 shs. 05/18/05 497,340 259,530 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 130 shs. 05/18/05 112,128 68,037 ------------- ------------- 2,148,702 1,958,176 ------------- ------------- 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 1,592,089 1,737,404 Common Stock (B) 520 shs. ** 519,622 1,195,234 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 137 shs. 12/31/04 119,482 316,249 ------------- ------------- 2,231,193 3,248,887 ------------- ------------- 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 -- ------------- ------------- *01/22/04 and 09/12/06. **12/31/04, 03/31/05, and 05/02/06. --------------------------------------------------------------------------------------------------------------------------------- 7
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- 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 $ 2,150,755 $ 2,198,048 Preferred Stock Class A (B) 879 shs. 06/30/06 268,121 241,307 Common Stock (B) 1 sh. 06/30/06 286 258 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 309 shs. 06/30/06 92,102 3 ------------- ------------- 2,511,264 2,439,616 ------------- ------------- CAPESUCCESS LLC A provider of diversified staffing services. Preferred Membership Interests (B) 1,882 uts. 04/29/00 8,395 420 Common Membership Interests (B) 24,318 uts. 04/29/00 108,983 5,442 ------------- ------------- 117,378 5,862 ------------- ------------- CAPITAL SPECIALTY PLASTICS, INC. A producer of desiccant strips used for packaging pharmaceutical products. Common Stock (B) 109 shs. * 503 447,145 ------------- ------------- COEUR, INC. A producer of proprietary, disposable power injection syringes. 8.75% Senior Secured Term Note due 2010 $ 355,072 04/30/03 355,072 359,305 11.5% Senior Subordinated Note due 2011 $ 424,818 04/30/03 399,917 425,076 Common Stock (B) 126,812 shs. 04/30/03 126,812 348,000 Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 87,672 shs. 04/30/03 40,804 240,591 ------------- ------------- 922,605 1,372,972 ------------- ------------- COINING CORPORATION OF AMERICA LLC A manufacturer of close tolerance parts and metal stampings. 10.6% Senior Secured Revolving Credit Facility due 2007 (C) $ 86,420 01/07/02 86,420 86,420 10.6% Senior Secured Tranche A Note due 2007 (C) $ 558,750 06/26/01 558,750 557,173 13% Senior Secured Tranche B Note due 2008 $ 648,148 06/26/01 648,148 648,148 Limited Liability Company Unit 324,074 uts. 06/26/01 324,074 974,101 Warrant, exercisable until 2008, to purchase common stock at $.01 per share (B) 107,036 shs. 06/26/01 79,398 321,728 ------------- ------------- 1,696,790 2,587,570 ------------- ------------- CONNECTICUT ELECTRIC, INC. A supplier and distributor of electrical products sold into the retail and wholesale markets. 12% Senior Subordinated Note due 2014 $ 2,393,954 01/12/07 2,233,202 2,335,601 Limited Liability Company Unit Class A (B) 156,046 uts. 01/12/07 156,046 148,244 Limited Liability Company Unit Class C (B) 112,873 uts. 01/12/07 112,873 107,230 ------------- ------------- 2,502,121 2,591,075 ------------- ------------- *12/30/97 and 05/29/99. --------------------------------------------------------------------------------------------------------------------------------- 8
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- 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 $ 1,000,561 Limited Partnership Interest (B) 7.74% int. ** 189,586 -- Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 174 shs. * 160,233 -- ------------- ------------- 2,190,707 1,000,561 ------------- ------------- 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 2,101,940 2,207,571 Common Stock (B) 509 shs. *** 526,096 743,049 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 103 shs. 06/15/05 100,668 150,287 ------------- ------------- 2,728,704 3,100,907 ------------- ------------- 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 2,431,943 2,562,147 Warrant, exercisable until 2013, to purchase common stock at $.001 per share (B) 20 shs. 08/04/05 137,166 59,609 ------------- ------------- 2,569,109 2,621,756 ------------- ------------- DAVIS-STANDARD LLC A manufacturer, assembler, and installer of a broad range of capital equipment that is used in the extrusion, conversion, and processing of plastic materials. 12% Senior Subordinated Note due 2014 $ 1,847,826 10/30/06 1,731,476 1,862,956 Limited Partnership Interest (B) 702,174 uts. 10/30/06 702,174 667,065 Warrant, exercisable until 2014, to purchase preferred stock at $.01 per share (B) 50 shs. 10/30/06 49,830 1 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 34 shs. 10/30/06 34,000 -- ------------- ------------- 2,517,480 2,530,022 ------------- ------------- DELTACOM A provider of integrated communications services in the southeastern United States. 13.88% Senior Secured Note due 2009 (C) $ 2,259,469 07/26/05 2,215,235 2,304,659 17.38% Senior Secured Note due 2009 (C) $ 373,249 07/26/05 330,121 371,383 Warrant, exercisable until 2009, to purchase convertible preferred stock at $.03 per share (B) 102,884 shs. 07/26/05 34,295 573,064 ------------- ------------- 2,579,651 3,249,106 ------------- ------------- 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. 07/19/01 351,088 1,703,664 Warrant, exercisable until 2007, to purchase common stock at $.01 per share 297 shs. 07/19/01 131,981 863,493 ------------- ------------- 483,069 2,567,157 ------------- ------------- *08/12/04 and 01/18/05. **08/12/04 and 01/14/05. ***06/15/05 and 05/22/06. --------------------------------------------------------------------------------------------------------------------------------- 9
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- DIRECTED ELECTRONICS, INC. A designer and distributor of brand name automotive security systems, audio products and installation accessories. Common Stock (B) 368,560 shs. * $ 1,856,534 $ 3,258,069 ------------- ------------- 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 -- 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 -- ------------- ------------- DUNCAN SYSTEMS, INC. A distributor of windshields and side glass for the recreational vehicle market. 10% Senior Secured Term Note due 2013 $ 540,000 11/01/06 531,900 535,148 13% Senior Subordinated Note due 2014 $ 855,000 11/01/06 763,492 845,949 Common Stock (B) 180,000 shs. 11/01/06 180,000 171,000 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 56,514 shs. 11/01/06 78,160 565 ------------- ------------- 1,553,552 1,552,662 ------------- ------------- DWYER GROUP, INC. A franchiser of a variety of home repair services. Common Stock (B) 6,906 shs. *** 690,600 814,204 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 2,034 shs. 10/30/03 186,469 239,756 ------------- ------------- 877,069 1,053,960 ------------- ------------- 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 77,208 157,801 ------------- ------------- 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 **** 1,482,327 1,533,036 Warrant, exercisable until 2011, to purchase common stock at $.02 per share (B) 4,085 shs. 09/24/04 39,464 101,092 ------------- ------------- 1,521,791 1,634,128 ------------- ------------- ELECTRA BICYCLE COMPANY, INC. A designer and marketer of branded leisure bicycles. 10.5% Senior Secured Term Note A due 2009 $ 255,061 04/12/07 249,960 252,960 10.5% Senior Secured Term Note B due 2012 $ 765,182 04/12/07 749,878 755,580 12% Senior Secured Term Note C due 2012 $ 510,121 04/12/07 474,967 498,830 Limited Liability Company Unit Series F (B) 64,597 uts. 04/12/07 64,597 61,367 LLC Unit Series G (B) 4,990 uts. 04/12/07 4,990 4,741 ------------- ------------- 1,544,392 1,573,478 ------------- ------------- *12/19/05 and 06/17/06. **10/24/96 and 08/28/98. ***10/30/03 and 01/02/04. ****09/24/04 and 04/20/06. --------------------------------------------------------------------------------------------------------------------------------- 10
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- 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 ------------- ------------- EVANS CONSOLES, INC. A designer and manufacturer of consoles and control center systems. Common Stock 90,000 shs. 05/06/04 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 2,231,170 2,396,936 Preferred Unit (B) 158 uts. 06/01/06 157,768 142,002 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 ------------- ------------- 2,512,893 2,650,497 ------------- ------------- 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 04/13/06 904,609 913,643 14% Senior Subordinated Note due 2014 $ 555,059 04/13/06 499,784 552,920 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 ------------- ------------- 1,562,262 1,565,364 ------------- ------------- 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 2,148,685 2,311,256 Common Stock (B) 185 shs. 02/03/06 184,783 66,143 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 254 shs. 02/03/06 208,435 90,928 ------------- ------------- 2,541,903 2,468,327 ------------- ------------- 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 2,184,365 2,294,176 Common Stock (B) 212,500 shs. 01/31/06 212,500 274,331 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 138,408 shs. 01/31/06 119,213 178,680 ------------- ------------- 2,516,078 2,747,187 ------------- ------------- 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 2,060,710 2,029,514 Common Stock (B) 340 shs. 02/10/06 340,000 272,000 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 126 shs. 02/10/06 116,875 1 ------------- ------------- 2,517,585 2,301,515 ------------- ------------- --------------------------------------------------------------------------------------------------------------------------------- 11
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- HIGHGATE CAPITAL LLC An acquirer of controlling or substantial interests in manufacturing and marketing entities. Series A Preferred Units (B) 1.19% int. 07/21/94 $ 367,440 $ -- ------------- ------------- 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 * 1,885,343 2,045,502 Common Stock (B) 63 shs. * 62,742 87,922 Warrant, exercisable until 2012, to purchase common stock at $.02 per share (B) 200 shs. * 199,501 279,574 ------------- ------------- 2,147,586 2,412,998 ------------- ------------- INTEGRATION TECHNOLOGY SYSTEMS, INC. A manufacturer of steel protective computer and network systems for the industrial and office environments. 12% Senior Secured Note due 2008 $ 1,644,444 03/01/04 1,646,101 832,222 Common Stock (B) 228 shs. 06/01/00 262,200 -- ------------- ------------- 1,908,301 832,222 ------------- ------------- JASON, INC. A diversified manufacturing company serving various industrial markets. 13% Senior Subordinated Note due 2008 $ 963,687 08/04/00 933,902 954,050 Limited Partnership Interest of Saw Mill Capital Fund II, L.P. (B) 2.50% int. 08/03/00 886,352 615,109 Warrants, exercisable until 2008 and 2009, to purchase common stock at $.01 per share (B) 50,870 shs. 08/04/00 115,412 123,530 ------------- ------------- 1,935,666 1,692,689 ------------- ------------- 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 1,517,399 1,609,590 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 1,121 shs. 12/15/04 101,109 193,778 ------------- ------------- 1,618,508 1,803,368 ------------- ------------- K N B HOLDINGS CORPORATION A designer, manufacturer and marketer of products for the custom framing market. 13.5% Senior Subordinated Note due 2013 $ 2,446,734 05/25/06 2,333,985 2,414,846 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 ------------- ------------- 2,539,729 2,536,459 ------------- ------------- K W P I HOLDINGS CORPORATION A manufacturer and distributor of vinyl windows and patio doors throughout the northwestern United States. 12% Senior Subordinated Note due 2014 $ 2,318,000 03/14/07 2,114,030 2,262,310 Common Stock (B) 232 shs. 03/13/07 232,000 220,400 Warrant, exercisable until 2017, to purchase common stock at $.01 per share (B) 167 shs. 03/14/07 162,260 2 ------------- ------------- 2,508,290 2,482,712 ------------- ------------- *06/30/04 and 08/19/04. --------------------------------------------------------------------------------------------------------------------------------- 12
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- KEEPSAKE QUILTING, INC. A seller of quilting fabrics, books, patterns, kits and notions to consumers. 8.86% Senior Secured Tranche A Note due 2008 (C) $ 238,503 06/16/00 $ 238,503 $ 236,445 12% Senior Secured Tranche B Note due 2008 $ 550,392 06/16/00 542,268 550,392 Limited Partnership Interest of Riverside XVI Holding Company, L.P. (B) 5.29% int. 06/12/00 333,490 527,499 Warrant, exercisable until 2008, to purchase common stock at $.01 per share (B) 1,108 shs. 06/12/00 45,866 176,828 ------------- ------------- 1,160,127 1,491,164 ------------- ------------- KELE AND ASSOCIATES, INC. A distributor of building automation control products. 12% Senior Subordinated Note due 2012 $ 1,831,548 02/27/04 1,705,068 1,849,863 Common Stock 12 shs. 02/27/04 12,871 314,850 Warrant, exercisable until 2012, to purchase common stock at $.02 per share 11 shs. 02/27/04 7,793 288,181 ------------- ------------- 1,725,732 2,452,894 ------------- ------------- 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 (D) $ 3,845,000 * 3,587,623 -- Common Stock (B) 5,800 shs. * 406,003 -- Warrant, exercisable until 2008, to purchase common stock at $.11 per share (B) 15,572 shs. * 602,127 -- ------------- ------------- 4,595,753 -- ------------- ------------- 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 $ 1,168,750 04/05/06 1,090,671 1,177,821 13% Preferred Stock (B) 565 shs. 04/05/06 565,335 638,823 Common Stock (B) 125 shs. 04/05/06 125,048 431,235 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 13 shs. 04/05/06 12,905 44,486 ------------- ------------- 1,793,959 2,292,365 ------------- ------------- MAIL COMMUNICATIONS GROUP, INC. A provider of mail processing and handling services, lettershop services, and commercial printing services. 12.5% Senior Subordinated Note due 2014 $ 975,000 05/04/07 912,469 944,414 Limited Liability Company Unit (B) 23,000 uts. 05/04/07 300,000 285,000 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 3,375 shs. 05/04/07 43,031 34 ------------- ------------- 1,255,500 1,229,448 ------------- ------------- MAVERICK ACQUISITION COMPANY A manufacturer of capsules that cover the cork and neck of wine bottles. 9.85% Senior Secured Tranche A Note due 2010 (C) $ 596,118 09/03/04 596,118 598,568 12% Senior Secured Tranche B Note due 2011 $ 313,433 09/03/04 285,031 312,211 Limited Partnership Interest (B) 7.84% int. 09/03/04 58,769 48,568 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 425 shs. 09/03/04 39,473 35,091 ------------- ------------- 979,391 994,438 ------------- ------------- *12/23/98 and 01/28/99. --------------------------------------------------------------------------------------------------------------------------------- 13
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- 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 $ 893,472 $ 979,120 8.75% Senior Subordinated Note due 2012 $ 1,155,562 09/30/04 1,155,562 1,178,330 Common Stock (B) 381,672 shs. 09/30/04 381,672 1,320,233 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 153,572 shs. 09/30/04 90,897 531,216 ------------- ------------- 2,521,603 4,008,899 ------------- ------------- 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 83,066 Common Stock (B) 26,185 shs. 10/28/04 35,088 117,168 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 84,637 shs. 05/01/03 40,675 378,719 ------------- ------------- 159,421 578,953 ------------- ------------- 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 $ 2,685,614 * 2,533,796 2,701,446 Common Stock (B) 450 shs. * 450,000 390,850 Warrant, exercisable until 2013, to purchase common stock at $.02 per share (B) 164 shs. * 162,974 142,426 ------------- ------------- 3,146,770 3,234,722 ------------- ------------- MOMENTUM HOLDING CO. A designer and supplier of upholstery fabric to commercial furniture manufacturers and architectural and design firms. 12% Senior Subordinated Note due 2014 $ 1,168,847 08/04/06 1,045,167 1,168,300 Limited Partnership Interest (B) 106,153 uts. 08/04/06 106,153 95,538 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 1,107 shs. 08/04/06 107,109 11 ------------- ------------- 1,258,429 1,263,849 ------------- ------------- 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 2,373,166 2,401,939 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 152 shs. 03/31/06 138,125 2 ------------- ------------- 2,511,291 2,401,941 ------------- ------------- MORTON INDUSTRIAL GROUP, INC. A manufacturer of highly engineered metal fabricated components. 12% Senior Subordinated Note due 2014 $ 2,440,909 08/25/06 2,251,029 2,362,544 Common Stock (B) 109,091 shs. 08/25/06 109,090 87,273 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 173,633 shs. 08/25/06 149,940 1,736 ------------- ------------- 2,510,059 2,451,553 ------------- ------------- *08/12/05 and 09/11/06. --------------------------------------------------------------------------------------------------------------------------------- 14
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- MOSS, INC. A manufacturer and distributor of large display and exhibit structures. Limited Partnership Interest of Riverside Capital Appreciation Fund I, L.P. (B) 33.59% int. * $ 348,620 $ 406,235 Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 214 shs. 12/21/05 36,647 24,940 ------------- ------------- 385,267 431,175 ------------- ------------- NABCO, INC. A producer of explosive containment vessels in the United States. 12% Senior Subordinated Note due 2014 $ 625,000 02/24/06 579,139 547,703 Limited Liability Company Unit (B) 825 uts. ** 825,410 660,328 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 48 shs. 02/24/06 37,188 -- ------------- ------------- 1,441,737 1,208,031 ------------- ------------- NAVIS GLOBAL 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 1,131,964 1,211,533 8.75% Senior Secured Note due 2011 $ 716,292 05/28/04 716,292 712,302 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 ------------- ------------- 2,653,202 2,498,907 ------------- ------------- NETSHAPE TECHNOLOGIES, INC. A manufacturer of powder metal and metal injection molded precision components used in industrial, consumer, and other applications. 12% Senior Subordinated Note due 2014 $ 1,530,000 02/02/07 1,408,570 1,477,221 Limited Partnership Interest of Saw Mill PCG Partners LLC (B) 1,020 uts. 02/01/07 1,020,000 969,000 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 91 shs. 02/02/07 90,830 1 ------------- ------------- 2,519,400 2,446,222 ------------- ------------- 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 1,873,544 10% Preferred Stock (B) 255 shs. 03/29/04 255,083 256,028 Common Stock (B) 6,455 shs. 03/29/04 6,455 146,134 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 8,622 shs. 03/29/04 7,323 195,195 ------------- ------------- 2,125,000 2,470,901 ------------- ------------- NYLONCRAFT, INC. A supplier of engineered plastic components for the automotive industry. 9% Senior Secured Note due 2009 $ 812,500 01/28/02 812,500 771,875 11.5% Senior Subordinated Note due 2012 $ 1,500,000 01/28/02 1,405,912 750,000 Common Stock (B) 312,500 shs. 01/28/02 312,500 -- Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 243,223 shs. 01/28/02 162,045 -- ------------- ------------- 2,692,957 1,521,875 ------------- ------------- *09/20/00, 05/23/02, and 02/21/07. **02/24/06 and 06/22/07. --------------------------------------------------------------------------------------------------------------------------------- 15
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (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 $ 2,237,450 $ 2,420,187 Common Stock (B) 177,268 shs. 12/20/05 177,268 324,347 Warrant, exercisable until 2015, to purchase common stock at $.01 per share (B) 99,771 shs. 12/20/05 98,773 182,551 ------------- ------------- 2,513,491 2,927,085 ------------- ------------- 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 01/03/06 556,970 562,715 13% Senior Subordinated Note due 2013 $ 687,241 01/03/06 618,172 683,885 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) 75,378 shs. 01/03/06 62,824 754 ------------- ------------- 1,560,273 1,537,430 ------------- ------------- OLYMPIC SALES, INC. A boat retailer in Washington state, Oregon, California and British Columbia. 12% Senior Subordinated Note due 2008 $ 1,241,000 08/07/98 1,241,000 1,213,955 12% Senior Subordinated Note due 2008 $ 307,071 02/09/00 301,894 303,401 Limited Partnership Interest of Riverside VIII, VIII-A and VIII-B Holding Company, L.P. 20.57% int. * 1,555,992 1,555,626 Warrants, exercisable until 2007 and 2008, to purchase common stock at $.01 per share (B) 28,648 shs. ** 389,188 59,302 ------------- ------------- 3,488,074 3,132,284 ------------- ------------- 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 1,793,563 1,985,065 Limited Liability Company Unit (B) 3,667 uts. 01/17/06 572,115 716,565 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 619 shs. 01/17/06 170,800 120,981 ------------- ------------- 2,536,478 2,822,611 ------------- ------------- 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 1,705,302 1,800,898 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 ------------- ------------- 1,884,022 1,886,399 ------------- ------------- P A S HOLDCO LLC An independent provider of maintenance, repair and overhaul services to the aerospace gas turbine engine and airframe markets. 14% Senior Subordinated Note due 2014 $ 2,200,163 07/03/06 2,092,666 2,245,057 Preferred Unit (B) 382 uts. 07/03/06 382,150 363,043 Preferred Unit (B) 69 uts. 07/03/06 68,790 65,351 Common Unit Class I (B) 148 uts. 07/03/06 -- 1 Common Unit Class L (B) 31 uts. 07/03/06 -- -- ------------- ------------- 2,543,606 2,673,452 ------------- ------------- *08/07/98, 02/23/99, 12/22/99 and 02/25/03. **08/07/98 and 02/09/00. --------------------------------------------------------------------------------------------------------------------------------- 16
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (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 $ 2,151,549 $ 2,318,538 Preferred Stock (B) 36 shs. 03/31/06 329,596 353,532 Common Stock (B) 23 shs. 03/31/06 25,500 37,502 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 13 shs. 03/31/06 11,122 21,815 ------------- ------------- 2,517,767 2,731,387 ------------- ------------- PACIFIC CONSOLIDATED HOLDINGS LLC A manufacturer of rugged, mobile liquid and gaseous oxygen and nitrogen generating systems used in the global defense, oil & gas and medical sectors. 12% Senior Subordinated Note due 2012 $ 1,304,624 04/27/07 1,188,373 1,286,075 Limited Liability Company Unit (B) 1,754,707 uts. 04/27/07 63,233 60,011 ------------- ------------- 1,251,606 1,346,086 ------------- ------------- 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 2,050,154 2,118,449 Membership Interests of MM/Lincap PPI Investments, Inc., LLC (B) 2.42% int. 12/21/00 265,625 421,510 ------------- ------------- 2,315,779 2,539,959 ------------- ------------- POSTLE ALUMINUM COMPANY LLC A manufacturer and distributor of aluminum extruded products. 12% Senior Subordinated Note due 2014 $ 2,040,000 10/02/06 1,891,572 2,052,664 Limited Liability Company Unit (B) 1,384 uts. 10/02/06 510,000 484,497 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 344 shs. 10/02/06 124,644 3 ------------- ------------- 2,526,216 2,537,164 ------------- ------------- 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. * 126,865 -- ------------- ------------- 227,215 -- ------------- ------------- QUALIS AUTOMOTIVE LLC A distributor of aftermarket automotive brake and chassis products. 12% Senior Subordinated Note due 2012 $ 1,770,833 05/28/04 1,505,478 1,746,283 Common Stock 354,166 shs. 05/28/04 354,166 121,880 Warrant, exercisable until 2012, to purchase common stock at $.01 per share 377,719 shs. 05/28/04 377,719 129,985 ------------- ------------- 2,237,363 1,998,148 ------------- ------------- 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 -- 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 49,060 -- ------------- ------------- 2,152,241 -- ------------- ------------- *08/12/94 and 11/14/01. --------------------------------------------------------------------------------------------------------------------------------- 17
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- R A J MANUFACTURING HOLDINGS LLC A designer and manufacturer of women's swimwear sold under a variety of licensed brand names. 12.5% Senior Subordinated Note due 2014 $ 2,267,190 12/15/06 $ 2,090,363 $ 2,301,028 Limited Liability Company Unit (B) 2,828 uts. 12/15/06 282,810 268,670 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 3 shs. 12/15/06 131,482 -- ------------- ------------- 2,504,655 2,569,698 ------------- ------------- 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 2,108,982 2,328,457 Common Stock (B) 289,362 shs. 02/10/06 289,362 260,425 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 131,555 shs. 02/10/06 119,795 1,315 ------------- ------------- 2,518,139 2,590,197 ------------- ------------- 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 1,473,334 Limited Liability Company Unit (B) 470,176 uts. * 712,899 -- Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 23,575 shs. 09/29/04 157,903 -- ------------- ------------- 2,554,566 1,473,334 ------------- ------------- 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 11/14/03 979,090 1,083,750 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 140 shs. 11/14/03 122,946 160,930 ------------- ------------- 1,102,036 1,244,680 ------------- ------------- SAFETY SPEED CUT MANUFACTURING COMPANY, INC. A manufacturer of vertical panel saws and routers for the wood working industry. Class B Common Stock (B) 1,480 shs. 06/02/99 256,212 1,159,152 ------------- ------------- SAVAGE SPORTS HOLDING, INC. A manufacturer of sporting firearms. 12% Senior Subordinated Note due 2012 $ 1,538,793 09/10/04 1,450,650 1,579,089 Common Stock (B) 586 shs. 09/10/04 586,207 812,954 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 134 shs. 09/10/04 113,578 185,304 ------------- ------------- 2,150,435 2,577,347 ------------- ------------- SPECIALTY FOODS GROUP, INC. A manufacturer and distributor of branded meat products. Limited Partnership Interest of MHD Holdings LLC 1.43% int. 08/29/00 684,724 -- ------------- ------------- STANTON CARPET HOLDING CO. A designer and marketer of high and mid-priced decorative carpets and rugs. 12.13% Senior Subordinated Note due 2014 $ 2,239,024 08/01/06 2,106,847 2,218,922 Common Stock (B) 311 shs. 08/01/06 310,976 279,882 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 104 shs. 08/01/06 93,293 1 ------------- ------------- 2,511,116 2,498,805 ------------- ------------- *09/29/04, 06/04/07 and 06/14/07. --------------------------------------------------------------------------------------------------------------------------------- 18
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- 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 Liability Company Unit (B) 1.99% int. 08/20/03 63,207 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 ------------- ------------- 82,566 33,459 ------------- ------------- 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 1,918,512 2,261,733 Common Stock (B) 2,203 shs. 10/14/05 2,203 704,634 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 1,167 shs. 10/14/05 294,403 373,268 ------------- ------------- 2,215,118 3,339,635 ------------- ------------- 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. 8.61% Senior Secured Tranche B Note due 2012 (C) $ 1,450,043 * 1 ,444,894 1,436,260 10.5% Senior Secured Tranche B Note due 2012 (C) $ 75,986 * 75,986 75,264 12% Senior Subordinated Note due 2014 $ 1,162,110 ** 1,107,665 1,152,219 Limited Partnership Interest of Saw Mill Capital Fund V, L.P. 2.30% int. 03/01/05 116,285 131,836 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 72 shs. 04/28/06 60,597 32,959 ------------- ------------- 2,805,427 2,828,538 ------------- ------------- TOTAL EQUIPMENT & SERVICE, INC. A manufacturer of a wide variety of equipment used in the oil and gas industry. 10.5% Senior Secured Term Note due 2013 $ 851,351 03/02/07 838,580 832,988 13% Senior Subordinated Note due 2014 $ 598,450 03/02/07 490,608 582,077 Common Stock (B) 125,199 shs. 03/02/07 125,199 118,939 Warrant, exercisable until 2014 to purchase common stock at $.01 per share (B) 34,533 shs. 03/02/07 95,873 345 ------------- ------------- 1,550,260 1,534,349 ------------- ------------- 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 2,594,178 2,712,000 Common Stock (B) 630 shs. 02/04/98 630,000 217,510 Warrant, exercisable until 2009, to purchase common stock at $.01 per share (B) 444 shs. 02/05/98 368,832 153,293 ------------- ------------- 3,593,010 3,082,803 ------------- ------------- *04/28/06 and 12/21/06. **04/28/06 and 09/13/06. --------------------------------------------------------------------------------------------------------------------------------- 19
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- TRANSTAR HOLDING COMPANY A distributor of aftermarket automotive transmission parts. 12% Senior Subordinated Note due 2013 $ 1,734,000 08/31/05 $ 1,666,702 $ 1,761,187 Common Stock (B) 1,078 shs. * 1,078,450 1,075,342 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 86 shs. 08/31/05 77,485 85,692 ------------- ------------- 2,822,637 2,922,221 ------------- ------------- 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 $ 395,108 01/20/00 395,108 397,197 12% Senior Subordinated Note due 2010 $ 1,326,500 01/20/00 1,294,200 1,353,770 Common Stock (B) 227,400 shs. 01/20/00 227,400 941,912 Warrant, exercisable until 2010, to purchase common stock at $1 per share (B) 260,563 shs. 01/20/00 98,540 1,079,276 ------------- ------------- 2,015,248 3,772,155 ------------- ------------- 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 ** 2,163,143 2,311,480 Common Stock (B) 742 shs. ** 800,860 1,268,905 Warrant, exercisable until 2013, to purchase common stock at $.02 per share (B) 153 shs. ** 159,894 262,075 ------------- ------------- 3,123,897 3,842,460 ------------- ------------- TRUSTILE DOORS, INC. A manufacturer and distributor of interior doors. 12.5% Senior Subordinated Note due 2010 $ 1,062,500 04/11/03 1,013,169 1,073,125 Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 5,781 shs. 04/11/03 87,438 274,574 ------------- ------------- 1,100,607 1,347,699 ------------- ------------- U S S HOLDINGS, INC. A producer of high grade industrial and specialty silica sands. 14% Redeemable Preferred Stock (B) 997 shs. 09/30/99 545,858 933,236 Convertible Preferred Stock Series A and B, convertible into common stock at $8.02 per share (B) 145,446 shs. 12/19/96 1,166,830 -- 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. *** 128,372 -- ------------- ------------- 2,640,128 933,236 ------------- ------------- U-LINE CORPORATION A manufacturer of high-end, built-in, undercounter ice making, wine storage and refrigeration appliances. 12.5% Senior Subordinated Note due 2012 $ 1,882,100 04/30/04 1,724,624 1,882,100 Common Stock (B) 182 shs. 04/30/04 182,200 200,064 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 230 shs. 04/30/04 211,735 253,010 ------------- ------------- 2,118,559 2,335,174 ------------- ------------- *08/31/05 and 04/30/07. **07/19/05 and 12/22/05. ***12/19/96 and 09/30/99. --------------------------------------------------------------------------------------------------------------------------------- 20
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2007 (Unaudited)
Shares, Units, Warrants, Ownership or Principal Acquisition Fair CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value --------------------------------------------------------------------------------------------------------------------------------- VICTORY VENTURES LLC An acquirer of controlling or substantial interests in other entities. Series A Preferred Units 0.15% int. 12/02/96 $ 1 $ -- ------------- ------------- VISIONEERING, INC. A designer and manufacturer of tooling and fixtures for the aerospace industry. 10.5% Senior Secured Term Loan due 2013 $ 802,941 05/17/07 790,897 788,895 13% Senior Subordinated Note due 2014 $ 648,530 05/17/07 581,088 640,182 Common Stock (B) 123,529 shs. 05/17/07 123,529 117,353 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 35,006 shs. 05/17/07 55,055 350 ------------- ------------- 1,550,569 1,546,780 ------------- ------------- VITALITY FOODSERVICE, INC. A non-carbonated beverage dispensing company focused on the foodservice industry. 15% Senior Subordinated Note due 2011 $ 2,028,834 09/24/04 1,879,355 1,825,951 Common Stock (B) 26,456 shs. * 264,558 211,648 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 23,787 shs. 09/24/04 186,883 190,295 ------------- ------------- 2,330,796 2,227,894 ------------- ------------- 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 1,553,477 Limited Liability Company Unit Class A (B) 1.75% int. 07/19/04 414,375 224,968 Limited Liability Company Unit Class B (B) 0.77% int. 07/19/04 182,935 99,317 ------------- ------------- 2,080,375 1,877,762 ------------- ------------- WALLS INDUSTRIES, INC. A provider of branded workwear and sporting goods apparel. 12.36% Senior Subordinated Lien Note due 2009 (C) $ 652,413 07/12/04 652,413 653,258 14% Senior Subordinated Note due 2012 $ 1,085,380 07/12/04 1,082,856 1,107,088 Limited Partnership Interest (B) 0.40% int. 07/12/04 37,280 787,109 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 4,029 shs. 07/12/04 2,833 85,060 ------------- ------------- 1,775,382 2,632,515 ------------- ------------- WELLBORN FOREST HOLDING CO. A manufacturer of semi-custom kitchen and bath cabinetry. 12.13% Senior Subordinated Note due 2014 $ 1,721,250 11/30/06 1,603,666 1,664,249 Common Stock (B) 191 shs. 11/30/06 191,250 181,688 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 95 shs. 11/30/06 86,493 1 ------------- ------------- 1,881,409 1,845,938 ------------- ------------- WORKPLACE MEDIA HOLDING CO. A direct marketer specializing in providing advertisers with access to consumers in the workplace. 13% Senior Subordinated Note due 2015 $ 1,159,196 05/14/07 1,053,084 1,127,813 Limited Partnership Interests (B) 115,804 uts. 05/14/07 115,804 110,014 Warrant, exercisable until 2015, to purchase common stock at $.01 per share (B) 88 shs. 05/14/07 83,462 1 ------------- ------------- 1,252,350 1,237,828 ------------- ------------- TOTAL PRIVATE PLACEMENT INVESTMENTS $ 182,852,674 $ 180,957,476 ------------- ------------- *09/24/04 and 12/22/06. --------------------------------------------------------------------------------------------------------------------------------- 21
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS June 30, 2007 (Unaudited)
Shares or Interest Due Principal CORPORATE RESTRICTED SECURITIES:(A)(Continued) Rate Date Amount Cost Fair Value ------- -------- ------------ ------------ ------------ RULE 144A SECURITIES - 6.54%: BONDS - 6.54% American Tire Distributor (C) 11.600% 04/01/12 $ 1,000,000 $ 950,000 $ 1,010,000 Aramark Corporation 8.500 02/01/15 200,000 200,000 203,000 Aramark Corporation (C) 8.836 02/01/15 200,000 200,000 203,000 Bombardier, Inc. 6.300 05/01/14 1,000,000 890,000 950,000 Bristow Group, Inc. 7.500 09/15/17 150,000 150,000 150,375 Calpine Corporation 8.750 07/15/13 500,000 465,000 540,000 Chaparral Energy, Inc. 8.875 02/01/17 1,500,000 1,491,780 1,481,250 Charter Communications Op LLC 8.000 04/30/12 250,000 249,375 253,125 Community Health Systems 8.875 07/15/15 900,000 893,646 912,375 Douglas Dynamics LLC 7.750 01/15/12 630,000 633,000 598,500 G F S I, Inc. (C) 11.500 06/01/11 750,000 682,541 772,500 H C A, Inc. 9.250 11/15/16 975,000 991,787 1,038,375 Hawker Beechcraft Acquisition Co. 9.750 04/01/17 750,000 778,000 783,750 Kar Holdings, Inc. 8.750 05/01/14 50,000 50,000 49,000 Kar Holdings, Inc. 10.000 05/01/15 100,000 100,000 97,500 Packaging Dynamics Corporation of America 10.000 05/01/16 1,250,000 1,256,607 1,256,250 Rental Service Corporation 9.500 12/01/14 1,000,000 1,013,763 1,020,000 Rite Aid Corporation 9.500 02/01/15 600,000 593,326 576,000 Steel Dynamics, Inc. 6.750 04/01/15 200,000 200,000 194,500 Stewart & Stevenson LLC 10.000 07/15/14 1,500,000 1,539,351 1,567,500 Tenaska Alabama Partners LP 7.000 06/30/21 342,701 342,701 350,662 Tesoro Petroleum Corporation 6.500 06/01/17 500,000 500,000 488,750 Tube City IMS Corporation 9.750 02/01/15 625,000 649,424 640,625 Tunica-Biloxi Gaming Authority 9.000 11/15/15 1,000,000 1,031,048 1,045,000 Valassis Communications, Inc. 8.250 03/01/15 790,000 770,850 770,250 ------------ ------------ TOTAL BONDS $ 16,622,199 16,952,287 ------------ ------------ COMMON STOCK - 0.00% Jordan Telecom Products (B) 70 $ 14,000 -- ------------ ------------ TOTAL COMMON STOCK 14,000 -- ------------ ------------ WARRANTS - 0.00% Winsloew Furniture, Inc. (B) 900 $ 9 $ -- ------------ ------------ TOTAL WARRANTS 9 -- ------------ ------------ TOTAL RULE 144A SECURITIES 16,636,208 16,952,287 ------------ ------------ TOTAL CORPORATE RESTRICTED SECURITIES $199,488,882 $197,909,763 ------------ ------------ --------------------------------------------------------------------------------------------------------------------------------- 22
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS June 30, 2007 (Unaudited)
Interest Due Principal CORPORATE PUBLIC SECURITIES - 27.53%: (A) Rate Date Amount Cost Market Value ------- -------- ------------ ------------ ------------ BONDS - 25.43% A M C Entertainment, Inc. 11.000% 02/01/16 $ 815,000 $ 817,344 $ 900,575 Activant Solutions, Inc. 9.500 05/01/16 150,000 150,000 147,375 Affinia Group, Inc. 9.000 11/30/14 1,010,000 936,110 989,800 Alamosa Delaware, Inc. 11.000 07/31/10 325,000 328,304 344,328 Alamosa Delaware, Inc. 8.500 01/31/12 400,000 400,000 420,048 ALH Fin LLC / ALH Fin Corporation 8.500 01/15/13 1,550,000 1,519,557 1,538,375 Allied Waste NA 7.875 04/15/13 1,000,000 1,020,744 1,011,250 Appleton Papers, Inc. 8.125 06/15/11 300,000 300,000 309,000 Atlas Pipeline Partners 8.125 12/15/15 200,000 200,000 199,500 Bally Total Fitness Holdings Corporation 9.875 10/15/07 135,000 128,925 132,638 Basic Energy Services 7.125 04/15/16 225,000 225,000 214,875 Blockbuster, Inc. (C) 9.000 09/01/12 475,000 475,848 439,375 Brigham Exploration Co. 9.625 05/01/14 700,000 690,403 694,750 CCH I Holdings LLC 11.125 01/15/14 2,000,000 1,573,688 1,935,000 Cablevision Systems Corporation 8.000 04/15/12 1,000,000 1,012,540 987,500 Cenveo Corporation 7.875 12/01/13 1,100,000 1,100,000 1,078,000 Cincinnati Bell, Inc. 8.375 01/15/14 1,100,000 1,007,500 1,111,000 Clayton Williams Energy, Inc. 7.750 08/01/13 800,000 800,000 736,000 Dave and Buster's, Inc. 11.250 03/15/14 1,500,000 1,536,655 1,537,500 Del Monte Corporation 8.625 12/15/12 225,000 225,000 232,313 Dynegy Holdings, Inc. 6.875 04/01/11 500,000 422,500 491,250 Dynegy Holdings, Inc. 8.375 05/01/16 330,000 330,000 322,575 Edison Mission Energy 7.750 06/15/16 55,000 55,000 54,725 Esterline Technologies 7.750 06/15/13 200,000 200,000 202,000 Flextronics International Ltd. 6.500 05/15/13 400,000 400,000 377,000 Ford Motor Credit Co. 7.375 10/28/09 1,250,000 1,246,875 1,240,820 Ford Motor Credit Co. 8.000 12/15/16 300,000 294,966 286,548 Freeport-McMoran Copper & Gold 8.375 04/01/17 385,000 385,000 410,988 Gencorp, Inc. 9.500 08/15/13 259,000 259,000 277,130 General Motors Acceptance Corporation 7.750 01/19/10 1,250,000 1,286,733 1,265,416 General Motors Corporation 8.250 07/15/23 1,500,000 1,388,750 1,366,875 Goodyear Tire & Rubber Co. 7.857 08/15/11 1,400,000 1,342,750 1,428,000 GulfMark Offshore, Inc. 7.750 07/15/14 565,000 562,599 570,650 Hawaiian Telcom Communication 12.500 05/01/15 1,425,000 1,565,267 1,617,375 Idearc, Inc. 8.000 11/15/16 600,000 600,000 606,000 Inergy LP 8.250 03/01/16 150,000 150,000 154,125 Interline Brands, Inc. 8.125 06/15/14 325,000 322,670 327,438 Iron Mountain, Inc. 8.750 07/15/18 1,065,000 1,099,094 1,096,950 Koppers, Inc. 9.875 10/15/13 477,000 477,000 509,198 Land O'Lakes, Inc. 9.000 12/15/10 750,000 750,000 789,375 Lazard LLC 7.125 05/15/15 750,000 749,408 773,643 Leucadia National Corporation 7.000 08/15/13 650,000 660,353 637,000 Liberty Media Corporation 5.700 05/15/13 1,000,000 951,610 939,915 Mac-Gray Corporation 7.625 08/15/15 600,000 600,000 603,000 Majestic Star Casino LLC 9.500 10/15/10 500,000 500,000 520,000 Manitowoc Company, Inc. 7.125 11/01/13 200,000 200,000 200,500 Mariner Energy, Inc. 8.000 05/15/17 800,000 805,428 794,000 Markwest Energy Operating Co. 6.875 11/01/14 775,000 763,000 732,375 Mediacom Broadband LLC 8.500 10/15/15 1,000,000 1,021,448 1,005,000 Metaldyne Corporation 11.000 06/15/12 750,000 601,250 765,000 Metaldyne Corporation (C) 10.000 11/01/13 510,000 513,309 540,600 N R G Energy, Inc. 7.375 02/01/16 175,000 175,000 175,438 N T L Cable PLC 9.125 08/15/16 980,000 1,002,280 1,026,550 Nalco Co. 7.750 11/15/11 500,000 500,000 503,750 Neiman Marcus Group, Inc. 10.375 10/15/15 1,250,000 1,250,000 1,375,000 Newark Group, Inc. 9.750 03/15/14 850,000 796,863 864,875 North American Energy Partners 8.750 12/01/11 400,000 400,000 404,000 NOVA Chemicals Corporation (C) 8.484 11/15/13 475,000 475,000 475,000 O E D Corp./Diamond Jo Company Guarantee 8.750 04/15/12 1,000,000 985,960 1,000,000 --------------------------------------------------------------------------------------------------------------------------------- 23
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS June 30, 2007 (Unaudited)
Interest Due Principal CORPORATE PUBLIC SECURITIES:(A)(Continued) Rate Date Amount Cost Market Value ------- -------- ------------ ------------ ------------ BONDS, CONTINUED Offshore Logistics, Inc. 6.125% 06/15/13 $ 450,000 $ 450,000 $ 424,125 P Q Corporation 7.500 02/15/13 1,100,000 1,088,750 1,166,000 Pacific Energy Partners 7.125 06/15/14 500,000 503,526 517,310 Pacific Energy Partners 6.250 09/15/15 150,000 149,316 147,349 Petrohawk Energy Corp. 9.125 07/15/13 1,000,000 997,719 1,057,500 Pliant Corporation 11.125 09/01/09 550,000 539,000 539,000 Pliant Corporation (C) 11.850 06/15/09 882,910 887,491 949,128 Pregis Corporation 12.375 10/15/13 1,000,000 981,490 1,125,000 Primedia, Inc. 8.000 05/15/13 1,000,000 1,021,248 1,052,500 Quality Distribution, Inc. 9.000 11/15/10 1,030,000 1,001,575 999,100 Quality Distribution, Inc. (C) 9.860 01/15/12 545,000 547,688 550,450 Quicksilver Resources, Inc. 7.125 04/01/16 500,000 500,000 482,500 Rent-A-Center, Inc. 7.500 05/01/10 400,000 400,000 406,000 Rock-Tenn Co. 8.200 08/15/11 175,000 176,035 180,250 Sbarro, Inc. 10.375 02/01/15 1,000,000 1,019,529 973,750 Sheridan Acquisition Corporation 10.250 08/15/11 375,000 370,000 393,750 Sierra Pacific Resources 6.750 08/15/17 635,000 638,050 624,243 Stanadyne Corporation 10.000 08/15/14 1,500,000 1,500,000 1,586,250 Stratos Global 9.875 02/15/13 575,000 578,513 610,938 Tekni-Plex, Inc. 12.750 06/15/10 1,000,000 960,125 890,000 Tekni-Plex, Inc. 8.750 11/15/13 650,000 655,483 643,500 Tenet Healthcare Corporation 9.875 07/01/14 500,000 488,370 495,000 Tenneco, Inc. 8.625 11/15/14 1,000,000 1,002,479 1,030,000 Tennessee Gas Pipeline Co. 7.000 03/15/27 500,000 523,506 514,378 Texas Industries, Inc. 7.250 07/15/13 70,000 70,000 70,175 Titan International, Inc. 8.000 01/15/12 150,000 150,000 154,125 Trimas Corporation 9.875 06/15/12 823,000 764,250 845,630 Triton PCS, Inc. 8.500 06/01/13 550,000 550,000 562,375 Unisys Corporation 8.000 10/15/12 190,000 190,000 184,775 United Components, Inc. 9.375 06/15/13 1,080,000 1,081,374 1,115,100 United Rentals, Inc. 7.750 11/15/13 625,000 625,000 625,780 United Rentals, Inc. 7.000 02/15/14 500,000 500,000 487,500 Universal City Florida (C) 10.106 05/01/10 200,000 200,000 204,000 Universal City Florida 8.375 05/01/10 200,000 200,000 204,500 Vought Aircraft Industries 8.000 07/15/11 1,000,000 999,366 995,000 Warner Music Group Corporation 7.375 04/15/14 275,000 275,000 255,750 Waste Services, Inc. 9.500 04/15/14 1,100,000 1,123,024 1,156,375 ------------ ------------ TOTAL BONDS $ 64,244,638 $ 65,908,392 ------------ ------------ --------------------------------------------------------------------------------------------------------------------------------- 24
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS June 30, 2007 (Unaudited)
Shares or Interest Due Principal CORPORATE PUBLIC SECURITIES:(A)(Continued) Rate Date Amount Cost Market Value ------- -------- ------------ ------------ ------------ COMMON STOCK - 1.87% Bally Total Fitness Holdings Corporation (B) 600 $ 5,520 $ 288 EnerNOC, Inc. (B) 46,500 1,283,262 1,773,045 PepsiAmericas, Inc. 92,145 2,006,365 2,263,081 Supreme Industries, Inc. 115,721 267,322 803,104 ------------ ------------ TOTAL COMMON STOCK 3,562,469 4,839,518 ------------ ------------ CONVERTIBLE BONDS - 0.23% Citadel Broadcasting Corporation 1.875% 02/15/11 $ 700,000 $ 543,375 $ 602,000 ------------ ------------ TOTAL CONVERTIBLE BONDS 543,375 602,000 ------------ ------------ TOTAL CORPORATE PUBLIC SECURITIES $ 68,350,482 $ 71,349,910 ------------ ------------ Interest Due Principal SHORT-TERM SECURITIES: Rate/Yield* Date Amount Cost Market Value ------- -------- ------------ ------------ ------------ COMMERCIAL PAPER - 2.11% Lennar Corporation 5.453% 07/03/07 $ 1,500,000 $ 1,499,319 $ 1,499,319 Textron Financial Corporation 5.386 07/06/07 1,523,000 1,521,634 1,521,634 Walt Disney Co. 5.376 07/09/07 2,443,000 2,442,265 2,442,265 ------------ ------------ TOTAL SHORT-TERM SECURITIES $ 5,463,218 $ 5,463,218 ------------ ------------ TOTAL INVESTMENTS 106.01% $273,302,582 $274,722,891 ============ ------------ Other Assets 3.34 8,643,393 Liabilities (9.35) (24,229,588) ------ ------------ TOTAL NET ASSETS 100.00% $259,136,696 ====== ============ (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 06/30/07. (D) Defaulted security; interest not accrued. * Effective yield at purchase See Notes to Consolidated Financial Statements. --------------------------------------------------------------------------------------------------------------------------------- 25
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS June 30, 2007 (Unaudited)
Fair Value/ Fair Value/ INDUSTRY CLASSIFICATION: Market Value Market Value ------------ ------------ AEROSPACE - 3.39% BUILDINGS & REAL ESTATE - 1.50% Consolidated Foundries Holdings $ 3,100,907 K W P I Holdings Corporation $ 2,482,712 Esterline Technologies 202,000 Texas Industries, Inc. 70,175 Gencorp, Inc. 277,130 TruStile Doors, Inc. 1,347,699 P A S Holdco LLC 2,673,452 ------------ Visioneering, Inc. 1,546,780 3,900,586 Vought Aircraft Industries 995,000 ------------ ------------ CHEMICAL, PLASTICS & RUBBER - 1.20% 8,795,269 Capital Specialty Plastics, Inc. 447,145 ------------ Koppers, Inc. 509,198 AUTOMOBILE - 9.23% Nalco Co. 503,750 American Tire Distributor 1,010,000 NOVA Chemicals Corporation 475,000 Ford Motor Credit Co. 1,527,368 P Q Corporation 1,166,000 Fuel Systems Holding Corporation 2,747,187 ------------ General Motors Acceptance Corporation 1,265,416 3,101,093 General Motors Corporation 1,366,875 ------------ Goodyear Tire & Rubber Co. 1,428,000 CONSUMER PRODUCTS - 9.47% Jason, Inc. 1,692,689 Aero Holdings, Inc. 3,052,243 LIH Investors, L.P. -- ALH Fin LLC/ALH Fin Corporation 1,538,375 Metaldyne Corporation 1,305,600 Augusta Sportswear Holding Co. 3,248,887 Nyloncraft, Inc. 1,521,875 Bravo Sports Holding Corporation 2,439,616 Ontario Drive & Gear Ltd. 2,822,611 G F S I, Inc. 772,500 Qualis Automotive LLC 1,998,148 Kar Holdings, Inc. 146,500 Tenneco, Inc. 1,030,000 K N B Holdings Corporation 2,536,459 Titan International, Inc. 154,125 Momentum Holding Co. 1,263,849 Transtar Holding Company 2,922,221 R A J Manufacturing Holdings LLC 2,569,698 United Components, Inc. 1,115,100 Royal Baths Manufacturing Company 1,244,680 ------------ The Tranzonic Companies 3,082,803 23,907,215 Walls Industries, Inc. 2,632,515 ------------ Winsloew Furniture, Inc. -- BEVERAGE, DRUG & FOOD - 5.63% ------------ Aramark Corporation 406,000 24,528,125 Beta Brands Ltd. -- ------------ Dave and Buster's, Inc. 1,537,500 CONTAINERS, PACKAGING & GLASS - 5.83% Del Monte Corporation 232,313 Flutes, Inc. 1,565,364 Eagle Pack Pet Foods, Inc. 1,634,128 Maverick Acquisition Company 994,438 Land O'Lakes, Inc. 789,375 P I I Holding Corporation 2,731,387 Nonni's Food Company 2,470,901 Packaging Dynamics Corporation of America 1,256,250 PepsiAmericas, Inc. 2,263,081 Paradigm Packaging, Inc. 2,539,959 Rite Aid Corporation 576,000 Pliant Corporation 1,488,128 River Ranch Fresh Foods LLC 1,473,334 Pregis Corporation 1,125,000 Sbarro, Inc. 973,750 Tekni-Plex, Inc. 1,533,500 Specialty Foods Group, Inc. -- Vitex Packaging Group, Inc. 1,877,762 Vitality Foodservice, Inc. 2,227,894 ------------ ------------ 15,111,788 14,584,276 ------------ ------------ DISTRIBUTION - 3.94% BROADCASTING & ENTERTAINMENT - 3.10% Affina Group, Inc. 989,800 CCH I Holdings LLC 1,935,000 Duncan Systems, Inc. 1,552,662 Cablevision Systems Corporation 987,500 Kele and Associates, Inc. 2,452,894 Cenveo Corporation 1,078,000 Magnatech International, Inc. 2,292,365 Charter Communications Op LLC 253,125 O R S Nasco Holding, Inc. 2,927,085 Citadel Broadcasting Corporation 602,000 QualServ Corporation - Liberty Media Corporation 939,915 Strategic Equipment & Supply Corporation, Inc. -- Mediacom Broadband LLC 1,005,000 ------------ Workplace Media Holding Co. 1,237,828 10,214,806 ------------ ------------ 8,038,368 ------------ ----------------------------------------------------------------------------------------------------------------------------------
26 CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS June 30, 2007 (Unaudited)
Fair Value/ Fair Value/ INDUSTRY CLASSIFICATION:(Cont.) Market Value Market Value ------------ ------------ DIVERSIFIED/CONGLOMERATE, HEALTHCARE, EDUCATION MANUFACTURING - 7.19% & CHILDCARE - 4.04% Activant Solutions, Inc. $ 147,375 A T I Acquisition Company $ 2,198,812 Arrow Tru-Line Holdings, Inc. 1,958,176 American Hospice Management Holding LLC 2,592,922 Bombardier, Inc. 950,000 Community Health Systems 912,375 Coining Corporation of America LLC 2,587,570 F H S Holdings LLC 2,650,497 Dexter Magnetics Technologies, Inc. 2,567,157 H C A, Inc. 1,038,375 Douglas Dynamics LLC 598,500 MedAssist, Inc. 578,953 Evans Consoles, Inc. -- Tenet Healthcare Corporation 495,000 Postle Aluminum Company LLC 2,537,164 ------------ Radiac Abrasives, Inc. 2,590,197 10,466,934 Trimas Corporation 845,630 ------------ Truck Bodies & Equipment International 3,842,460 HOME & OFFICE FURNISHINGS, ------------ HOUSEWARES, AND DURABLE 18,624,229 CONSUMER PRODUCTS - 6.41% ------------ Connor Sport Court International, Inc. 1,000,561 DIVERSIFIED/CONGLOMERATE, H M Holding Company 2,301,515 SERVICE - 3.17% Home Decor Holding Company 2,412,998 Allied Waste NA 1,011,250 Justrite Manufacturing Acquisition Co. 1,803,368 CapeSuccess LLC 5,862 Monessen Holding Corporation 2,401,941 Diversco, Inc./DHI Holdings, Inc. -- Stanton Carpet Holding Co. 2,498,805 Dwyer Group, Inc. 1,053,960 U-Line Corporation 2,335,174 Fowler Holding, Inc. 2,468,327 Wellborn Forest Holding Co. 1,845,938 Interline Brands, Inc. 327,438 ------------ Iron Mountain, Inc. 1,096,950 16,600,300 Mac-Gray Corporation 603,000 ------------ Mail Communications Group, Inc. 1,229,448 LEISURE, AMUSEMENT, Moss, Inc. 431,175 ENTERTAINMENT - 4.55% ------------ A M C Entertainment, Inc. 900,575 8,227,410 Bally Total Fitness Holding Corporation 132,926 ------------ Electra Bicycle Company, Inc. 1,573,478 ELECTRONICS - 2.61% Keepsake Quilting, Inc. 1,491,164 Calpine Corporation 540,000 Majestic Star Casino LLC 520,000 Connecticut Electric, Inc. 2,591,075 O E D Corp/Diamond Jo Company Guarantee 1,000,000 Directed Electronics, Inc. 3,258,069 Overton's Holding Company 1,886,399 Flextronics International Ltd. 377,000 Savage Sports Holding, Inc. 2,577,347 ------------ Tunica-Biloxi Gaming Authority 1,045,000 6,766,144 Universal City Florida 408,500 ------------ Warner Music Group Corporation 255,750 FARMING & AGRICULTURE - 0.00% ------------ Protein Genetics, Inc. -- 11,791,139 ------------ ------------ FINANCIAL SERVICES - 0.85% MACHINERY - 9.74% Hawker Beechcraft Acquisition Co. 783,750 Davis-Standard LLC 2,530,022 Highgate Capital LLC -- Integration Technology Systems, Inc. 832,222 Lazard LLC 773,643 Manitowoc Company, Inc. 200,500 Leucadia National Corporation 637,000 Maxon Corporation 4,008,899 Victory Ventures LLC -- Morton Industrial Group, Inc. 2,451,553 ------------ Navis Global 2,498,907 2,194,393 NetShape Technologies, Inc. 2,446,222 ------------ Pacific Consolidated Holdings LLC 1,346,086 Safety Speed Cut Manufacturing Company, Inc. 1,159,152 Stanadyne Corporation 1,586,250 Stewart & Stevenson LLC 1,567,500 Supreme Industries, Inc. 803,104 Synventive Equity LLC 33,459 Tronair, Inc. 3,772,155 ------------ 25,236,031 ------------ ---------------------------------------------------------------------------------------------------------------------------------- 27
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS June 30, 2007 (Unaudited)
Fair Value/ Fair Value/ INDUSTRY CLASSIFICATION:(Cont.) Market Value Market Value ------------ ------------ MEDICAL DEVICES/BIOTECH - 2.43% RETAIL STORES - 2.89% Coeur, Inc. $ 1,372,972 Blockbuster, Inc. $ 439,375 E X C Acquisition Corporation 157,801 Neiman Marcus Group, Inc. 1,375,000 MicroGroup, Inc. 3,234,722 Olympic Sales, Inc. 3,132,284 OakRiver Technology, Inc. 1,537,430 Rent-A-Center, Inc. 406,000 ------------ Rental Service Corporation 1,020,000 6,302,925 United Rentals, Inc. 1,113,280 ------------ ------------ MINING, STEEL, IRON & NON PRECIOUS 7,485,939 METALS - 0.84% ------------ Freeport-McMoran Copper & Gold 410,988 TECHNOLOGY - 0.76% Steel Dynamics, Inc. 194,500 EnerNOC, Inc. 1,773,045 Tube City IMS Corporation 640,625 Unisys Corporation 184,775 U S S Holdings, Inc. 933,236 ------------ ------------ 1,957,820 2,179,349 ------------ ------------ TELECOMMUNICATIONS - 3.45% NATURAL RESOURCES - 0.19% Alamosa Delaware, Inc. 764,376 Appleton Papers, Inc. 309,000 Cincinnati Bell, Inc. 1,111,000 Rock-Tenn Co. 180,250 DeltaCom 3,249,106 ------------ Hawaiian Telecom Communications 1,617,375 489,250 Jordan Telecom Products -- ------------ N T L Cable PLC 1,026,550 OIL AND GAS - 3.35% Stratos Global 610,938 Atlas Pipeline Partners 199,500 Triton P C S, Inc. 562,375 Basic Energy Services 214,875 ------------ Brigham Exploration Co. 694,750 8,941,720 Bristow Group, Inc. 150,375 ------------ Chaparral Energy, Inc. 1,481,250 TRANSPORTATION - 2.35% Clayton Williams Energy, Inc. 736,000 NABCO, Inc. 1,208,031 GulfMark Offshore, Inc. 570,650 Quality Distribution LLC 1,549,550 Mariner Energy, Inc. 794,000 Tangent Rail Corporation 3,339,635 North American Energy Partners 404,000 ------------ Offshore Logistics, Inc. 424,125 6,097,216 Quicksilver Resources, Inc. 482,500 ------------ Tennessee Gas Pipeline Co. 514,378 UTILITIES - 1.79% Tesoro Petroleum Corporation 488,750 Dynegy Holdings, Inc. 813,825 Total Equipment & Service, Inc. 1,534,349 Edison Mission Energy 54,725 ------------ Inergy LP 154,125 8,689,502 Markwest Energy Operating Co. 732,375 ------------ N R G Energy, Inc. 175,438 PHARMACEUTICALS - 1.05% Pacific Energy Partners 664,659 CorePharma LLC 2,621,756 Petrohawk Energy Corporation 1,057,500 Enzymatic Therapy, Inc. 106,250 Sierra Pacific Resources 624,243 ------------ Tenaska Alabama Partners LP 350,662 2,728,006 ------------ ------------ 4,627,552 PUBLISHING/PRINTING - 1.42% ------------ Idearc, Inc. 606,000 WASTE MANAGEMENT / POLLUTION - 1.54% Newark Group, Inc. 864,875 Terra Renewal Services, Inc. 2,828,538 Primedia, Inc. 1,052,500 Waste Services, Inc. 1,156,375 Sheridan Acquisition Corporation 393,750 ------------ Valassis Communications, Inc. 770,250 3,984,913 ------------ ------------ 3,687,375 TOTAL CORPORATE RESTRICTED AND ------------ PUBLIC SECURITIES - 103.91% $269,259,673 ============ 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 common stocks, 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, 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") or pursuant to a transaction that is exempt from registration under 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 held 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. -------------------------------------------------------------------------------- 29 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS (CONTINUED) The Trustees meet at least once each quarter to approve the value of 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. 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. The consolidated financial statements include private placement restricted securities valued at $180,957,476 (69.83% of net assets) as of June 30, 2007 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 Rule 144A restricted securities and 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, 2007, 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 using the yield-to-maturity method. 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, 2007, the MMCI Subsidiary Trust has accrued income tax expense of $117,356 on net realized gains and has decreased deferred income tax expense on net unrealized gains by $357,356. In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 supplements FASB 109 -------------------------------------------------------------------------------- 30 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS (CONTINUED) by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The adoption of FIN 48 requires financial statements to be adjusted to reflect only those tax positions that are more likely than not to be sustained as of the adoption date. As of June 30, 2007, the Trust has properly recorded all tax liabilities. 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. F. EXPENSE REDUCTION: Citibank, N.A. ("Citibank") serves as custodian to the Trust. Pursuant to the custodian agreements, Citibank receives a fee reduced by credits on cash balances the Trust maintains with Citibank. All credit balances, if any, used to reduce the Trust's custodian fees are reported as fees paid indirectly on the Statement of Operations. For the six months ended June 30, 2007, there were no credit balances used to reduce custodian fees. 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"). The eighteen month fee transition period ended on March 31, 2007. 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 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"). The Standard & Poor's Industrials Composite is not readily available to the 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, 2007 was 11.48%. 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 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 was 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 -------------------------------------------------------------------------------- 31 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS (CONTINUED) 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. D. BASIS FOR BOARD RENEWAL OF NEW CONTRACT: At a meeting of the Trustees held on April 27, 2007, the Trustees (including a majority of the Trustees who are not "interested persons" of the Trust or Babson Capital) unanimously approved a one year continuance of the New Contract. Prior to the meeting, the Trustees requested and received from Ropes & Gray LLP, counsel to the Trust, a memorandum describing the Trustees' legal responsibilities in connection with its review and reapproval of the New Contract. The Trustees also requested and received from Babson Capital extensive written and oral information regarding among other matters: the principal terms of the New Contract; the reasons why Babson Capital was proposing the continuance of the New Contract; Babson Capital and its personnel; the Trust's investment performance, including comparative performance information; the nature and quality of the services provided by Babson Capital to the Trust; financial strength of Babson Capital; the fee arrangements between Babson Capital and the Trust; fee and expense information, including comparative fee and expense information; profitability of the advisory arrangement to Babson Capital; and "fallout" benefits to Babson Capital resulting from the New Contract. Among other things, the Trustees discussed and considered with management (i) the aforementioned guidance provided by Ropes & Gray LLP and the information provided by Babson Capital prior to the meeting and (ii) the reasons Babson Capital put forth in support of its recommendation that the Trustees approve the continuance of the New Contract. These considerations are summarized below. NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY BABSON CAPITAL TO THE TRUST In evaluating the scope and quality of the services provided by Babson Capital to the Trust, the Trustees considered, among other factors: (i) the scope of services required to be provided by Babson Capital under the New Contract; (ii) Babson Capital's ability to find and negotiate private placement securities having equity features that are consistent with the stated investment objectives of the Trust; (iii) the experience and quality of Babson Capital's staff; (iv) the strength of Babson Capital's financial condition; (v) the nature of the private placement market compared to public markets (including the fact that finding, analyzing, negotiating and servicing private placement securities is more labor-intensive than buying and selling public securities and the administration of private placement securities is more extensive, expensive, and requires greater time and expertise than a portfolio of only public securities); (vi) the potential advantages afforded to the Trust by its ability to co-invest in negotiated private placements with MassMutual and its affiliates; and (vii) the expansion of the scope of services provided by Babson Capital as a result of recent regulatory and legislative initiatives that have required increased legal, compliance and business attention and diligence. Based on such considerations, the Trustees concluded that, overall, they are satisfied with the nature, extent and quality of services provided by Babson Capital, and expected to be provided in the future, under the New Contract. INVESTMENT PERFORMANCE The Trustees also examined the Trust's short-term, intermediate- term, and long-term performance as compared against various benchmark indices presented at the meeting, which showed that the Trust had outperformed such indices for the 1-, 3-, 5-, and 10-year periods. In addition, the Trustees considered comparisons of the Trust's performance with the performance of (i) selected closed-end investment companies and funds that may invest in private placement securities and/or bank loans; (ii) selected business development companies with comparable types of investments; and (iii) investment companies included in the Lipper closed-end bond universe. It was acknowledged that, while such comparisons are helpful in judging performance, they are not directly comparable in terms of types of investments due to the fact that business development companies often report returns based on market value, which is affected by factors other than the performance of the underlying portfolio investments. Based on these considerations and the detailed performance information provided to the Trustees at the regular Board meetings each quarter, the Trustees concluded that the Trust's absolute and relative performance over time have been sufficient to warrant renewal of the New Contract. ADVISORY FEE/COSTS OF SERVICES PROVIDED AND PROFITABILITY/ MANAGER'S "FALL-OUT" BENEFITS In connection with the Trustees' consideration of the advisory fee paid by the Trust to Babson Capital under the New Contract. Babson Capital noted that it was unaware of any registered closed-end investment companies that are directly -------------------------------------------------------------------------------- 32 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS (CONTINUED) comparable to the Trust in terms of the types of investments and percentages invested in private placement securities (which require more extensive advisory and administrative services than a portfolio of publicly traded securities, as previously discussed) other than MassMutual Participation Investors, which also is advised by Babson Capital. Under the terms of its Investment Advisory and Administrative Services Contract, MassMutual Participation Investors is charged a quarterly investment advisory fee of 0.225% of net asset value as of the end of each quarter, which is approximately equal to 0.90% annually. In considering the fee rate provided in the New Contract, the Trustees noted the advisory fee charged by Babson Capital to Tower Square Capital Partners, L.P. and Tower Square Capital Partners II, L.P., both private mezzanine funds also managed by Babson Capital. At the request of the Trustees, Babson Capital provided information concerning the profitability of Babson Capital's advisory relationship with the Trust. The Trustees also considered the non-economic benefits Babson Capital and its affiliates derived from its relationship with the Trust, including the reputational benefits derived from having the Trust listed on the New York Stock Exchange, and the de minimis amount of commissions resulting from the Trust's portfolio transactions used by Babson Capital for third-party soft dollar arrangements (less than $1,000). The Trustees recognized that Babson Capital should be entitled to earn a reasonable level of profit for services provided to the Trust and, based on their review, concluded that they were satisfied that Babson Capital's historical level of profitability from its relationship with the Trust was not excessive and that the advisory fee structure under the New Contract is reasonable. ECONOMIES OF SCALE The Trustees considered the concept of economies of scale and possible advisory fee reductions if the Trust were to grow in assets. Given that the Trust is not continuously offering shares, such growth comes principally from retained net realized gain on investments and dividend reinvestment. The Trustees also examined the breakpoint features of selected competitive funds and noted that the minimum starting point for fee reductions in those funds was at least $200 million whereas the Trust's current net assets are approximately $260 million. The Trustees concluded that the absence of breakpoints in the fee schedule under the New Contract was currently acceptable given the Trust's current size and closed-end fund structure. 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, 2007, 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 a London Inter Bank Offered Rate ("LIBOR") 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 LIBOR rate, divided by 1 minus the 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, 2007, there was no outstanding amount against the Revolver. For the six months ended June 30, 2007, the Trust incurred total expense on the Revolver of $18,596 related to the undrawn portion. -------------------------------------------------------------------------------- 33 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS (CONTINUED) 5. PURCHASES AND SALES OF INVESTMENTS For the six months ended 6/30/2007 Cost of Proceeds from Investments Sales or Acquired Maturities ----------- ----------- Corporate restricted securities $30,100,045 $17,547,561 Corporate public securities 15,638,256 29,075,381 The aggregate cost of investments is substantially the same for financial reporting and federal income tax purposes as of June 30, 2007. The net unrealized appreciation of investments for financial reporting and federal tax purposes as of June 30, 2007 is $1,420,309 and consists of $29,211,902 appreciation and $27,791,593 depreciation. Net unrealized appreciation of investments on the Statement of Assets and Liabilities reflects the balance net of a deferred tax accrual of $293,661 on net unrealized gains on the MMCI Subsidiary Trust. 6. QUARTERLY RESULTS OF INVESTMENT OPERATIONS March 31, 2007 Amount Per Share ----------- ----------- Investment income $ 6,228,449 Net investment income 4,828,999 $ 0.53 Net realized and unrealized 426,925 0.05 gain on investments (net of taxes) June 30, 2007 Amount Per Share ----------- ----------- Investment income $ 7,265,754 Net investment income 5,957,211 $ 0.64 Net realized and unrealized (598,756) (0.07) gain (loss) on investments (net of taxes) 7. AGGREGATE REMUNERATION PAID TO OFFICERS, TRUSTEES AND THEIR AFFILIATED PERSONS For the six months ended June 30, 2007, the Trust paid its Trustees aggregate remuneration of $88,250. 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 classifies Messers. 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 New Contract, the Trust does not compensate its officers who are employees of Babson Capital or MassMutual (except for the Chief Compliance Officer of the trust unless assumed by Babson Capital). For the six months ended June 30, 2007, Babson Capital paid the compensation of the Chief Compliance Officer of the Trust. 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, 2007 other than amounts payable to Babson Capital pursuant to the New Contract. For the six months ended June 30, 2007, 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 $ 6,242 Preparation of Certain of the Trust's Shareholder Communications 1,697 Preparation of the Trust's Annual Proxy Statements 675 ------- $ 8,614 -------------------------------------------------------------------------------- 34 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS (CONTINUED) 8. RESULTS OF SHAREHOLDER MEETING The Annual Meeting of Shareholders was held on Friday, April 27, 2007. The Shareholders were asked to vote to reelect Donald E. Benson, Donald Glickman and Robert E. Joyal as trustees, each for a three-year term; William J. Barrett as trustee, for a two-year term; and Michael H. Brown as trustee, for a one-year term. The Shareholders approved all of the proposals. The Trust's other trustees (Roger W. Crandall, Martin T. Hart and Corine T. Norgaard) continued to serve their respective terms following the April 27, 2007 Annual Shareholders Meeting. The results of the Shareholders votes are set forth below. % of Shares Shares for Withheld Total Voted for ------------ ---------- --------- ------------ Donald E. Benson 7,308,406 117,097 7,425,503 98.42% Donald Glickman 7,299,295 126,208 7,425,503 98.30% Robert E. Joyal 7,343,400 82,103 7,425,503 98.89% William J. Barrett 7,323,501 102,002 7,425,503 98.63% Michael H. Brown 7,343,625 81,878 7,425,503 98.90% 9. NEW ACCOUNTING PRONOUNCEMENTS In September 2006, FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"). FAS 157 establishes a single authoritative definition of fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. FAS 157 applies to fair value measurements already required or permitted by existing standards. The change to current generally accepted accounting principles from the application of FAS 157 relates to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Management of the Trust does not believe the adoption of FAS 157 will materially impact the financial statement amounts, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. -------------------------------------------------------------------------------- 35 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 Chief Legal Officer Martin T. Hart* Jill A. Fields Vice President Robert E. Joyal Michael P. Hermsen Vice President Corine T. Norgaard* Mary Wilson Kibbe Vice President Michael L. Klofas Vice President Richard E. Spencer, II Vice President * MEMBER OF THE AUDIT COMMITTEE Ronald S. Talala Treasurer John T. Davitt, Jr. Comptroller Melissa M. LaGrant Chief Compliance Officer -------------------------------------------------------------------------------- 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. Cash contributions must be received by the Transfer Agent at least five days (but no more than 30 days) before the payment date of a dividend or distributions. 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 newly-issued 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. [LOGO] MassMutual Corporate Investors DB1039 707 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 A schedule of investments for the Registrant is included as part of this report to shareholders under item 1 of this Form N-CSR. 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) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. 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 4, 2007 ---------------------------------- 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 4, 2007 ---------------------------------- By: /s/ James M. Roy ---------------------------------- James M. Roy, Vice President, and Chief Financial Officer ---------------------------------- Date: September 4, 2007 ------------------------------