-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rd1lMOnVmkgUc87WPJ5ASZztxuC8mc6vcZETzdF9otTtIOgi8m4s31AI4rED+BVz QpbVGoP0E0/Alce2kRc1qA== 0001072613-10-000850.txt : 20100908 0001072613-10-000850.hdr.sgml : 20100908 20100908094916 ACCESSION NUMBER: 0001072613-10-000850 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100630 FILED AS OF DATE: 20100908 DATE AS OF CHANGE: 20100908 EFFECTIVENESS DATE: 20100908 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MASSMUTUAL CORPORATE INVESTORS CENTRAL INDEX KEY: 0000275694 IRS NUMBER: 042483041 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-02183 FILM NUMBER: 101061273 BUSINESS ADDRESS: STREET 1: 1500 MAIN STREET STREET 2: SUITE 600 CITY: SPRINGFIELD STATE: MA ZIP: 01115 BUSINESS PHONE: 4132261000 MAIL ADDRESS: STREET 1: 1500 MAIN STREET STREET 2: SUITE 600 CITY: SPRINGFIELD STATE: MA ZIP: 01115 N-CSRS 1 form-ncsrs_16879.txt MASSMUTUAL CORPORATE INVESTORS 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, P.O. Box 15189, Springfield, MA 01115-5189 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Patricia J. Walsh, Vice President, Secretary and Chief Legal Officer 1500 Main Street, Suite 2800, P.O. Box 15189, 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: 06/30/10 ------------------ 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, 100 F Street NE, Washington, DC 20549. 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, 2010 [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 MassMutual Corporate Investors c/o Babson Capital Management LLC [LOGO] 1500 Main Street, Suite 2200 Springfield, Massachusetts 01115 (413) 226-1516 *Member of the MassMutual Financial Group - --------------------------------------------------------------------------- INVESTMENT OBJECTIVE AND POLICY MassMutual Corporate Investors (the "Trust") is a closed-end management investment company, first offered to the public in 1971, whose shares are traded on the New York Stock Exchange under the trading symbol "MCI". The Trust's share price can be found in the financial section of most newspapers as "MassCp" or "MassMuInv" under either the New York Stock Exchange listings or Closed-End Fund Listings. The Trust's investment objective is to maintain a portfolio of securities providing a fixed yield and at the same time offering an opportunity for capital gains. The Trust's principal investments are privately placed, below-investment grade, long-term debt obligations with equity features such as common stock, 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 instruments 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. Below-investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay principal. Babson Capital Management LLC ("Babson Capital") manages the Trust on a total return basis. The Trust distributes substantially all of its net income to shareholders each year. Accordingly, the Trust pays dividends to shareholders in January, May, August, and November. The Trust pays dividends to its shareholders in cash, unless the shareholder elects to participate in the Dividend Reinvestment and Share Purchase Plan. FORM N-Q The Trust files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. This information is available (i) on the SEC's website at http://www.sec.gov; and (ii) at the SEC's Public Reference Room in Washington, DC (which information on their operation may be obtained by calling 1-800-SEC-0330). A complete schedule of portfolio holdings as of each quarter-end is available upon request by calling, toll-free, 866-399-1516. PROXY VOTING POLICIES & PROCEDURES; PROXY VOTING RECORD The Trustees of the Trust have delegated proxy voting responsibilities relating to the voting of securities held by the Trust to Babson Capital. A description of Babson Capital's proxy voting policies and procedures is available (1) without charge, upon request, by calling, toll-free 866-399-1516; (2) on the Trust's website: http://www.babsoncapital.com/mci; and (3) on the SEC's website at http://www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (1) on the Trust's website: http://www.babsoncapital. com/mci; and (2) on the SEC's website at http://www.sec.gov. MCI Listed NYSE MassMutual Corporate Investors TO OUR SHAREHOLDERS July 31, 2010 We are pleased to present the June 30, 2010 Quarterly Report of MassMutual Corporate Investors (the "Trust"). The Board of Trustees declared a quarterly dividend of 54 cents per share, payable on August 13, 2010 to shareholders of record on August 2, 2010. The Trust paid a 54 cent per share dividend for the preceding quarter. The Trust earned 54 cents per share of net investment income for the second quarter of 2010, compared to 52 cents per share in the previous quarter. During the second quarter, the net assets of the Trust increased to $226,229,994 or $24.03 per share compared to $220,735,765 or $23.50 per share on March 31, 2010. This translates into a 4.6% total return for the quarter, based on the change in the Trust's net assets assuming the reinvestment of all dividends. Longer term, the Trust returned 15.8%, 4.2%, 9.1%, 10.1%, and 13.8% for the 1-, 3-, 5-, 10-, and 25-year time periods, respectively, based on the change in the Trust's net assets assuming the reinvestment of all dividends. The Trust's market price decreased 0.2% during the quarter, from $26.85 per share as of March 31, 2010 to $26.23 per share as of June 30, 2010. The Trust's market price of $26.23 per share equates to a 9.2% premium over the June 30, 2010 net asset value per share of $24.03. The Trust's average quarter-end premium for the 3-, 5-, and 10-year periods was 4.1%, 9.3% and 7.6%, respectively. U.S. equity markets, as approximated by the Russell 2000 Index, decreased 9.9% for the quarter. U.S. fixed income markets, as approximated by the Barclays Capital U.S. Corporate High Yield Index, decreased 0.1% for the quarter. The Trust closed two new private placement investments during the second quarter. The two new investments were in O E C Holdings Corporation and Wheaton Holding Corporation. A brief description of these investments can be found in the Consolidated Schedule of Investments. The total amount invested by the Trust in these two transactions was $4,500,000. The amount of debt and equity capital available to finance middle market buyout transactions continued to increase during the second quarter. As a result, we saw an improving level of deal flow as the quarter progressed. Our contacts in the private equity and investment banking community indicate they currently are very busy processing a large number of potential transactions, so we expect deal flow during the remainder of 2010 to be very robust. Hopefully, this higher level of deal flow translates into a number of new investments for the Trust in the second half of the year. Leverage multiples continued to expand during the quarter as capital providers aggressively pursued deal opportunities. We expect leverage multiples to continue to increase during the rest of the year. The downward pressure on pricing and return expectations moderated during the quarter and we expect a relatively stable pricing environment for the rest of the year. As I have stated in prior quarters, despite constantly changing market conditions, our approach to investing will not change. We will continue to maintain the same discipline and investment philosophy that has served our shareholders well for so many years. As the economy continued to rebound during the second quarter, the overall condition of our portfolio continued to improve as well. It was particularly refreshing to see many of our under performing companies start to report increased sales and earnings. In several situations where we had been deferring interest on our subordinated notes, performance improved to the point where the portfolio company was able to resume paying cash interest on our notes. Realization activity, which generally correlates highly with improved performance, also increased as the quarter progressed. We had two companies, Diversco, Inc. and K-Tek Holding Corporation, successfully sold in early July. There continues to be a significant number of portfolio companies that are in various stages of a sale process and we are hopeful that many of these will turn into successful realizations in the upcoming quarters. Thank you for your continued interest in and support of MassMutual Corporate Investors. Sincerely, /s/ Michael L. Klofas Michael L. Klofas President [PIE CHART APPEARS HERE] Portfolio Composition as of 6/30/10 * Private / 144A High Public High Yield Yield Debt Debt 69.9% 15.0% Private / Restricted Public Equity Equity 0.8% 12.1% Cash & Short Term Investments 2.2% * Based on market value of total investments (including cash) Cautionary Notice: Certain statements contained in this report may be "forward looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management's current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. These statements are subject to change at any time based upon economic, market or other conditions and may not be relied upon as investment advice or an indication of the Trust's trading intent. References to specific securities are not recommendations of such securities, and may not be representative of the Trust's current or future investments. We undertake no obligation to publicly update forward looking statements, whether as a result of new information, future events, or otherwise. - -------------------------------------------------------------------------------- 1 CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2010 (UNAUDITED)
ASSETS: Investments (See Consolidated Schedule of Investments) Corporate restricted securities at fair value (Cost - $219,892,503) $191,058,029 Corporate restricted securities at market value (Cost - $ 15,478,665) 15,040,974 Corporate public securities at market value (Cost - $ 42,995,158) 39,610,801 Short-term securities at amortized cost 4,249,817 ------------ 249,959,621 Cash 1,208,586 Interest and dividends receivable 5,962,930 Receivable for investments sold 329,500 Other assets 12,571 ------------ TOTAL ASSETS 257,473,208 ------------ LIABILITIES: Investment advisory fee payable 706,969 Note payable 30,000,000 Interest payable 202,105 Accrued expenses 127,881 Accrued taxes payable 145,855 Other payables 60,404 ------------ TOTAL LIABILITIES 31,243,214 ------------ TOTAL NET ASSETS $226,229,994 ============ NET ASSETS: Common shares, par value $1.00 per share; an unlimited number authorized $ 9,415,079 Additional paid-in capital 114,965,361 Retained net realized gain on investments, prior years 127,688,004 Undistributed net investment income 7,175,870 Accumulated net realized loss on investments (211,943) Net unrealized depreciation of investments (32,802,377) ------------ TOTAL NET ASSETS $226,229,994 ============ COMMON SHARES ISSUED AND OUTSTANDING 9,415,079 ============ NET ASSET VALUE PER SHARE $ 24.03 ============
See Notes to Consolidated Financial Statements - -------------------------------------------------------------------------------- 2 MassMutual Corporate Investors CONSOLIDATED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED)
INVESTMENT INCOME: Interest $12,300,629 Dividends 72,307 Other 43,840 ------------ TOTAL INVESTMENT INCOME 12,416,776 ------------ EXPENSES: Investment advisory fees 1,396,768 Interest 792,000 Trustees' fees and expenses 115,300 Professional fees 74,400 Reports to shareholders 60,000 Custodian fees 12,000 Transfer agent/registrar's expenses 9,000 Other 14,928 ------------ TOTAL EXPENSES 2,474,396 ------------ INVESTMENT INCOME - NET 9,942,380 ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investments before taxes 658,890 Income tax expense (1,308) ------------ Net realized gain on investments after taxes 657,582 Net change in unrealized depreciation of investments before taxes 5,096,199 Net change in deferred income tax expense 19,435 ------------ Net change in unrealized depreciation of investments after taxes 5,115,634 ------------ NET GAIN ON INVESTMENTS 5,773,216 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $15,715,596 ============
See Notes to Consolidated Financial Statements - -------------------------------------------------------------------------------- 3 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2010 (UNAUDITED)
NET DECREASE IN CASH: Cash flows from operating activities: Purchases/Proceeds/Maturities from short-term portfolio securities, net $ (4,244,786) Purchases of portfolio securities (36,370,382) Proceeds from disposition of portfolio securities 27,132,380 Interest, dividends and other income received 8,939,748 Interest expense paid (792,000) Operating expenses paid (1,634,776) Income taxes paid (57,308) ------------ NET CASH USED FOR OPERATING ACTIVITIES (7,027,124) ------------ Cash flows from financing activities: Cash dividends paid from net investment income (10,130,074) Receipts for shares issued on reinvestment of dividends 1,149,005 ------------ NET CASH USED FOR FINANCING ACTIVITIES (8,981,069) ------------ NET DECREASE IN CASH (16,008,193) Cash - beginning of year 17,216,779 ------------ CASH - END OF PERIOD $ 1,208,586 ============ RECONCILIATION OF NET INCREASE IN NET ASSETS TO NET CASH USED FOR OPERATING ACTIVITIES: NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 15,715,596 ------------ Increase in investments (19,399,973) Increase in interest and dividends receivable (2,806,862) Increase in receivable for investments sold (282,198) Increase in other assets (12,571) Increase in investment advisory fee payable 36,854 Decrease in accrued expenses (37,066) Decrease in accrued taxes payable (75,435) Decrease in other payables (165,469) ------------ TOTAL ADJUSTMENTS TO NET ASSETS FROM OPERATIONS (22,742,720) ------------ NET CASH USED FOR OPERATING ACTIVITIES $ (7,027,124) ============
See Notes to Consolidated Financial Statements - -------------------------------------------------------------------------------- 4 MassMutual Corporate Investors CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended For the 06/30/10 year ended (Unaudited) 12/31/09 ----------- ----------- INCREASE IN NET ASSETS: Operations: Investment income - net $ 9,942,380 $ 19,170,412 Net realized gain on investments 657,582 868,412 Net change in unrealized depreciation of investments 5,115,634 5,285,777 ----------- ----------- Net increase in net assets resulting from operations 15,715,596 25,324,601 Increase from common shares issued on reinvestment of dividends Common shares issued (2010 - 47,463; 2009 - 48,107) 1,149,005 1,137,714 Dividends to shareholders from: Net investment income (2010 - $0.54 per share; 2009 - $2.16 per share) (5,071,561) (20,168,880) ----------- ----------- TOTAL INCREASE IN NET ASSETS 11,793,040 6,293,435 NET ASSETS, BEGINNING OF YEAR 214,436,954 208,143,519 ----------- ----------- NET ASSETS, END OF PERIOD/YEAR (including undistributed net investment income of $7,175,870 and $2,305,051, respectively) $226,229,994 $214,436,954 ============ ============
See Notes to Consolidated Financial Statements - -------------------------------------------------------------------------------- 5 CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS SELECTED DATA FOR EACH SHARE OF BENEFICIAL INTEREST OUTSTANDING:
For the six months For the years ended December 31, ended 06/30/2010 ----------------------------------------------- (Unaudited) 2009 2008 2007 2006 2005 --------- -------- -------- -------- -------- -------- Net asset value: Beginning of year $ 22.89 $ 22.33 $ 27.19 $ 27.51 $ 26.06 $ 24.34 -------- -------- -------- -------- -------- -------- Net investment income (a) 1.06 2.05 2.31 2.56 2.27 2.03 Net realized and unrealized gain (loss) on investments 0.61 0.66 (5.02) (0.35) 1.62 1.96(b) -------- -------- -------- -------- -------- -------- Total from investment operations 1.67 2.71 (2.71) 2.21 3.89 3.99 -------- -------- -------- -------- -------- -------- Dividends from net investment income to common shareholders (0.54) (2.16) (2.16) (2.57) (2.47) (2.11) Dividends from net realized gain on investments to common shareholders -- -- -- -- (0.01) (0.18) Increase from dividends reinvested 0.01 0.01 0.01 0.04 0.04 0.02 -------- -------- -------- -------- -------- -------- Total dividends (0.53) (2.15) (2.15) (2.53) (2.44) (2.27) -------- -------- -------- -------- -------- -------- Net asset value: End of period/year $ 24.03 $ 22.89 $ 22.33 $ 27.19 $ 27.51 $ 26.06 -------- -------- -------- -------- -------- -------- Per share market value: End of period/year $ 26.23 $ 25.10 $ 19.25 $ 30.20 $ 34.89 $ 30.05 ======== ======== ======== ======== ======== ======== Total investment return Net asset value (c) 7.41% 12.64% (10.34%) 8.72% 18.06% 20.04% Market value 6.80% 39.89% (30.44%) (8.78%) 29.04% 16.95% Net assets (in millions): End of period/year $226.23 $214.44 $208.14 $251.16 $251.69 $236.28 Ratio of operating expenses to average net assets 1.55%(d) 1.58% 1.49% 1.55% 1.43% 1.78% Ratio of interest expense to average net assets 0.73%(d) 0.75% 0.67% 0.59% 0.60% 0.73% Ratio of income tax expense to average net assets (e) 0.00%(d) 0.00% 0.00% 0.35% 2.46% 2.84% Ratio of total expenses before custodian fee reduction to average net assets (e) 2.28%(d) 2.33% 2.16% 2.49% 4.53% 5.36% Ratio of net expenses after custodian fee reduction to average net assets (e) 2.28%(d) 2.33% 2.16% 2.49% 4.49% 5.35% Ratio of net investment income to average net assets 9.14%(d) 9.06% 9.01% 9.17% 8.19% 7.98% Portfolio turnover 11% 23% 32% 44% 35% 35% (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 (e) As additional information, this ratio is included to reflect the taxes paid on retained long-term gains. These taxes paid are netted against realized capital gains in the Statement of Operations. The taxes paid are treated as deemed distributions and a credit for the taxes paid is passed on to the shareholders. Senior borrowings: Total principal amount (in millions) $ 30 $ 30 $ 30 $ 30 $ 20 $ 20 Asset coverage per $1,000 of indebtedness $8,541 $8,148 $7,938 $9,372 $13,584 $12,814
See Notes to Consolidated Financial Statements - -------------------------------------------------------------------------------- 6 MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS June 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES - 91.10%:(A)D PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- Private Placement Investments - 84.45% A E COMPANY, INC. A designer and manufacturer of machined parts and assembly structures for the commercial and military aerospace industries. 11% Senior Secured Note due 2015 $ 1,413,462 * $ 1,385,193 $ 1,427,861 13% Senior Subordinated Note due 2016 $ 1,413,461 11/10/09 1,265,201 1,431,785 Common Stock (B) 323,077 shs. 11/10/09 323,077 306,923 Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B) 161,538 shs. 11/10/09 119,991 1,615 ------------- ------------- * 11/10/09 and 11/18/09. 3,093,462 3,168,184 ------------- ------------- A H C HOLDING COMPANY, INC. A designer and manufacturer of boilers and water heaters for the commercial sector. 15% Senior Subordinated Note due 2015 $ 2,516,449 11/21/07 2,465,140 2,541,613 Limited Partnership Interest (B) 23.16% int. 11/21/07 224,795 329,347 ------------- ------------- 2,689,935 2,870,960 ------------- ------------- A S A P INDUSTRIES LLC A designer and manufacturer of components used on oil and natural gas wells. 12.5% Senior Subordinated Note due 2015 $ 850,946 12/31/08 739,153 867,964 Limited Liability Company Unit Class A-2 (B) 1,276 uts. 12/31/08 140,406 174,193 Limited Liability Company Unit Class A-3 (B) 1,149 uts. 12/31/08 126,365 156,774 ------------- ------------- 1,005,924 1,198,931 ------------- ------------- A S C GROUP, INC. A designer and manufacturer of high reliability encryption equipment, communications products, computing systems and electronic components primarily for the military and aerospace sectors. 12.75% Senior Subordinated Note due 2016 $ 2,318,182 10/09/09 1,986,875 2,370,960 Limited Liability Company Unit Class A (B) 2,359 uts. 10/09/09 231,818 220,215 Limited Liability Company Unit Class B (B) 2,782 uts. 10/09/09 273,352 28 ------------- ------------- 2,492,045 2,591,203 ------------- ------------- A W X HOLDINGS CORPORATION A provider of aerial equipment rental, sales and repair services to non-residential construction and maintenance contractors operating in the State of Indiana. 10.5% Senior Secured Term Note due 2014 $ 735,000 05/15/08 720,300 684,308 13% Senior Subordinated Note due 2015 $ 735,000 05/15/08 671,403 655,731 Common Stock (B) 105,000 shs. 05/15/08 105,000 -- Warrant, exercisable until 2015, to purchase common stock at $.01 per share (B) 36,923 shs. 05/15/08 62,395 -- ------------- ------------- 1,559,098 1,340,039 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 7
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) June 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- ADVANCED TECHNOLOGIES HOLDINGS A provider of factory maintenance services to industrial companies. 15% Senior Subordinated Note due 2013 $ 2,198,996 12/27/07 $ 2,156,427 $ 2,204,252 Preferred Stock (B) 1,031 shs. 12/27/07 510,000 423,889 ------------- ------------- 2,666,427 2,628,141 ------------- ------------- 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 1,649,515 14% Senior Subordinated Note due 2015 $ 1,260,000 03/09/07 1,157,982 1,260,000 Common Stock (B) 262,500 shs. 03/09/07 262,500 14,956 Warrant, exercisable until 2015, to purchase common stock at $.01 per share (B) 66,116 shs. 03/09/07 111,527 3,767 ------------- ------------- 3,135,097 2,928,238 ------------- ------------- ALL CURRENT HOLDING COMPANY A specialty re-seller of essential electrical parts and components primarily serving wholesale distributors. 12% Senior Subordinated Note due 2015 $ 1,140,317 09/26/08 1,050,599 1,127,381 Common Stock (B) 1,347 shs. 09/26/08 134,683 78,409 Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 958 shs. 09/26/08 87,993 55,765 ------------- ------------- 1,273,275 1,261,555 ------------- ------------- AMERICAN HOSPICE MANAGEMENT HOLDING LLC A for-profit hospice care provider in the United States. 12% Senior Subordinated Note due 2013 $ 3,187,495 * 3,033,665 3,187,495 Preferred Class A Unit (B) 3,223 uts. ** 322,300 529,914 Preferred Class B Unit (B) 1,526 uts. 06/09/08 152,626 208,946 Common Class B Unit (B) 30,420 uts. 01/22/04 1 93,594 Common Class D Unit (B) 6,980 uts. 09/12/06 1 21,475 ------------- ------------- * 01/22/04 and 06/09/08. ** 01/22/04 and 09/12/06. 3,508,593 4,041,424 ------------- ------------- APEX ANALYTIX HOLDING CORPORATION A provider of audit recovery and fraud detection services and software to commercial and retail businesses in the U.S. and Europe. 12.5% Senior Subordinated Note due 2016 $ 1,912,500 04/28/09 1,615,156 1,950,750 Preferred Stock Series B (B) 3,065 shs. 04/28/09 306,507 353,438 Common Stock (B) 1,366 shs. 04/28/09 1,366 157,524 ------------- ------------- 1,923,029 2,461,712 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 8
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- 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 $ 1,859,060 05/18/05 $ 1,667,348 $ 1,580,201 Preferred Stock (B) 63 shs. 10/16/09 62,756 31,380 Common Stock (B) 497 shs. 05/18/05 497,340 -- Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 130 shs. 05/18/05 112,128 -- ------------- ------------- 2,339,572 1,611,581 ------------- ------------- 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 2,177,821 2,281,593 Preferred Stock Class A (B) 879 shs. 06/30/06 268,121 156,437 Common Stock (B) 1 sh. 06/30/06 286 -- Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 309 shs. 06/30/06 92,102 54,979 ------------- ------------- 2,538,330 2,493,009 ------------- ------------- C D N T, INC. A value-added converter and distributor of specialty pressure sensitive adhesives, foams, films, and foils. 10.5% Senior Secured Term Note due 2014 $ 750,872 08/07/08 735,855 704,821 12.5% Senior Subordinated Note due 2015 $ 750,872 08/07/08 690,426 670,761 Common Stock (B) 73,256 shs. 08/07/08 73,256 -- Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 57,600 shs. 08/07/08 57,689 -- ------------- ------------- 1,557,226 1,375,582 ------------- ------------- CAPITAL SPECIALTY PLASTICS, INC. A producer of desiccant strips used for packaging pharmaceutical products. Common Stock (B) 109 shs. * 503 1,126,577 *12/30/97 and 05/29/99. ------------- ------------- CLOUGH, HARBOUR AND ASSOCIATES An engineering service firm that is located in Albany, NY. 12.25% Senior Subordinated Note due 2015 $ 2,400,000 12/02/08 2,225,100 2,448,000 Preferred Stock (B) 277 shs. 12/02/08 276,900 337,320 ------------- ------------- 2,502,000 2,785,320 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 9
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- COEUR, INC. A producer of proprietary, disposable power injection syringes. 12% Senior Subordinated Note due 2016 $ 1,214,286 10/10/08 $ 1,098,929 $ 1,238,572 Common Stock (B) 607 shs. 10/10/08 60,714 39,098 Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 934 shs. 10/10/08 91,071 60,151 ------------- ------------- 1,250,714 1,337,821 ------------- ------------- CONNECTICUT ELECTRIC, INC. A supplier and distributor of electrical products sold into the retail and wholesale markets. 10% Senior Subordinated Note due 2014 (D) $ 1,456,429 01/12/07 1,358,631 873,857 Limited Liability Company Unit Class A (B) 156,046 uts. 01/12/07 156,046 -- Limited Liability Company Unit Class C (B) 112,873 uts. 01/12/07 112,873 -- Limited Liability Company Unit Class D (B) 1,268,437 uts. 05/03/10 -- -- Limited Liability Company Unit Class E (B) 2,081 uts. 05/03/10 -- -- ------------- ------------- 1,627,550 873,857 ------------- ------------- CONNOR SPORT COURT INTERNATIONAL, INC. A designer and manufacturer of outdoor and indoor synthetic sports flooring and other temporary flooring products. Preferred Stock Series B-2 (B) 17,152 shs. 07/05/07 700,392 1,715,247 Preferred Stock Series C (B) 8,986 shs. 07/05/07 300,168 898,560 Common Stock (B) 718 shs. 07/05/07 7 251 Limited Partnership Interest (B) 12.64% int. * 189,586 -- ------------- ------------- *08/12/04 and 01/14/05. 1,190,153 2,614,058 ------------- ------------- 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 2,473,370 2,550,000 Warrant, exercisable until 2013, to purchase common stock at $.001 per share (B) 20 shs. 08/04/05 137,166 187,630 ------------- ------------- 2,610,536 2,737,630 ------------- ------------- CRANE RENTAL CORPORATION A crane rental company. 13% Senior Subordinated Note due 2015 $ 2,295,000 08/21/08 2,090,661 2,336,927 Common Stock (B) 255,000 shs. 08/21/08 255,000 11,005 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 136,070 shs. 08/21/08 194,826 5,872 ------------- ------------- 2,540,487 2,353,804 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 10
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- CUSTOM ENGINEERED WHEELS, INC. A manufacturer of custom engineered, non-pneumatic plastic wheels and plastic tread cap tires used primarily for lawn and garden products and wheelchairs. 12.5% Senior Subordinated Note due 2016 $ 2,182,212 10/27/09 $ 1,892,808 $ 2,227,721 Preferred Stock PIK (B) 296 shs. 10/27/09 295,550 280,773 Preferred Stock Series A (B) 216 shs. 10/27/09 197,152 2 Common Stock (B) 72 shs. 10/27/09 72,238 68,628 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 53 shs. 10/27/09 48,608 1 ------------- ------------- 2,506,356 2,577,125 ------------- ------------- 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 1,758,010 1,797,413 Limited Partnership Interest (B) 1.82% int. 10/30/06 702,174 489,115 Warrant, exercisable until 2014, to purchase preferred stock at $.01 per share (B) 50 shs. 10/30/06 49,830 61,449 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 34 shs. 10/30/06 34,000 -- ------------- ------------- 2,544,014 2,347,977 ------------- ------------- 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) 27.20% int. 08/27/98 734,090 -- Preferred Stock (B) 2,586 shs. 12/14/01 2,186,976 2,588,420 Warrants, exercisable until 2011, to purchase common stock of DHI Holdings, Inc. at $.01 per share (B) 13,352 shs. * 403,427 382,209 ------------- ------------- *10/24/96 and 08/28/98. 3,324,493 2,970,629 ------------- ------------- DUNCAN SYSTEMS, INC. A distributor of windshields and side glass for the recreational vehicle market. 10% Senior Secured Term Note due 2013 $ 405,000 11/01/06 398,925 413,020 13% Senior Subordinated Note due 2014 $ 855,000 11/01/06 786,802 855,000 Common Stock (B) 180,000 shs. 11/01/06 180,000 159,193 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 56,514 shs. 11/01/06 78,160 49,981 ------------- ------------- 1,443,887 1,477,194 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 11
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- DWYER GROUP, INC. A franchiser of a variety of home repair services. Common Stock (B) 6,906 shs. * $ 690,600 $ 1,197,276 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 2,034 shs. 10/30/03 186,469 352,558 ------------- ------------- *10/30/03 and 01/02/04. 877,069 1,549,834 ------------- ------------- E S P HOLDCO, INC. A manufacturer of power protection technology for commercial office equipment, primarily supplying the office equipment dealer network. 14% Senior Subordinated Note due 2015 $ 2,332,768 01/08/08 2,288,865 2,252,390 Common Stock (B) 660 shs. 01/08/08 329,990 74,013 ------------- ------------- 2,618,855 2,326,403 ------------- ------------- 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 61,082 ------------- ------------- EATEM HOLDING COMPANY A developer and manufacturer of savory flavor systems for soups, sauces, gravies, and other products produced by food manufacturers for retail and foodservice end products. 12.5% Senior Subordinated Note due 2018 $ 2,850,000 02/01/10 2,471,700 2,872,049 Common Stock (B) 150 shs. 02/01/10 150,000 142,500 Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 358 shs. 02/01/10 321,300 4 ------------- ------------- 2,943,000 3,014,553 ------------- ------------- F C X HOLDINGS CORPORATION A distributor of specialty/technical valves, actuators, accessories, and process instrumentation supplying a number of industrial, high purity, and energy end markets in North America. 15% Senior Subordinated Note due 2015 $ 2,225,389 10/06/08 2,181,700 2,267,049 Preferred Stock (B) 4,341 shs. 10/06/08 434,074 201,819 Common Stock (B) 3,069 shs. 10/06/08 3,069 -- ------------- ------------- 2,618,843 2,468,868 ------------- ------------- F H S HOLDINGS LLC A national provider of customized disease management services to large self-insured employers. 12% Senior Subordinated Note due 2014 (D) $ 2,390,625 06/01/06 2,220,452 -- Limited Liability Company Units of Linden/FHS Holdings LLC (B) 159 uts. 06/01/06 159,362 -- Common Unit Class B (B) 1,386 uts. 06/01/06 122,361 -- ------------- ------------- 2,502,175 -- ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 12
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- 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 (D) $ 918,385 04/13/06 $ 904,609 $ 229,596 14% Senior Subordinated Note due 2014 (D) $ 555,059 04/13/06 495,635 -- ------------- ------------- 1,400,244 229,596 ------------- ------------- GOLDEN COUNTY FOODS HOLDING, INC. A manufacturer of frozen appetizers and snacks. 16% Senior Subordinated Note due 2015 $ 1,912,500 11/01/07 1,727,592 1,816,875 16% PIK Note due 2015 $ 436,141 12/31/08 421,603 414,334 8% Series A Convertible Preferred Stock, convertible into fully dilluted common shares (B) 146,658 shs. 11/01/07 146,658 52,917 ------------- ------------- 2,295,853 2,284,126 ------------- ------------- H M HOLDING COMPANY A designer, manufacturer, and importer of promotional and wood furniture. 7.5% Senior Subordinated Note due 2013 (D) $ 685,100 10/15/09 512,231 513,825 Preferred Stock (B) 40 shs. * 40,476 -- Preferred Stock Series B (B) 2,055 shs. 10/15/09 1,536,694 Common Stock (B) 340 shs. 02/10/06 340,000 -- Common Stock Class C (B) 560 shs. 10/15/09 -- -- Warrant, exercisable until 2013, to purchase common stock at $.02 per share (B) 126 shs. 02/10/06 116,875 -- ------------- ------------- * 09/18/07 and 06/27/08. 2,546,276 513,825 ------------- ------------- 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 * 1,921,994 2,043,269 Common Stock (B) 63 shs. * 62,742 88,147 Warrant, exercisable until 2012, to purchase common stock at $.02 per share (B) 200 shs. * 199,501 280,290 ------------- ------------- * 06/30/04 and 08/19/04. 2,184,237 2,411,706 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 13
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- HOSPITALITY MINTS HOLDING COMPANY A manufacturer of individually-wrapped imprinted promotional mints. 12% Senior Subordinated Note due 2016 $ 2,075,581 08/19/08 $ 1,920,297 $ 1,971,802 Common Stock (B) 474 shs. 08/19/08 474,419 83,423 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 123 shs. 08/19/08 113,773 21,562 ------------- ------------- 2,508,489 2,076,787 ------------- ------------- INSURANCE CLAIMS MANAGEMENT, INC. A third party administrator providing auto and property claim administration services for insurance companies. Common Stock (B) 69 shs. 02/27/07 2,077 221,827 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 20 shs. 02/27/07 612 65,334 ------------- ------------- 2,689 287,161 ------------- ------------- INTERNATIONAL OFFSHORE SERVICES LLC A leading provider of marine transportation services, platform decomissioning, and salvage services to oil and gas producers in the shallow waters of the Gulf of Mexico. 14.25% Senior Subordinated Secured Note due 2017 $ 2,550,000 07/07/09 2,299,566 2,581,309 Limited Liability Company Unit (B) 3,112 uts. 07/07/09 186,684 31 ------------- ------------- 2,486,250 2,581,340 ------------- ------------- JASON, INC. A diversified manufacturing company serving various industrial markets. 13% Senior Subordinated Note due 2010 (D) $ 963,687 08/04/00 848,275 48,184 Limited Partnership Interest of Saw Mill Capital Fund II, L.P. (B) 2.50% int. 08/03/00 886,470 -- Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 50,870 shs. 08/04/00 115,412 -- ------------- ------------- 1,850,157 48,184 ------------- ------------- 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 1,559,825 1,593,750 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 1,121 shs. 12/15/04 101,109 202,175 ------------- ------------- 1,660,934 1,795,925 ------------- ------------- K H O F HOLDINGS, INC. A manufacturer of premium disposable tableware products serving both the foodservice and consumer channels. Common Stock (B) 220,673 shs. 10/15/07 135,084 270,607 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 14
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- K N B HOLDINGS CORPORATION A designer, manufacturer and marketer of products for the custom framing market. 15.5% Senior Subordinated Note due 2013 (D) $ 3,012,887 05/25/06 $ 2,641,395 $ 2,259,666 Common Stock (B) 134,210 shs. 05/25/06 134,210 -- Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 82,357 shs. 05/25/06 71,534 -- ------------- ------------- 2,847,139 2,259,666 ------------- ------------- K P I HOLDINGS, INC. Pace Industries is the largest player in the U.S. non-automotive, non-ferrous die casting segment. 13% Senior Subordinated Note due 2014 (D) $ 2,106,522 07/16/08 1,968,368 1,790,544 Convertible Preferred Stock Series C (B) 55 shs. 06/30/09 55,435 -- Convertible Preferred Stock Series D (B) 24 shs. 09/17/09 24,476 -- Common Stock (B) 443 shs. 07/15/08 443,478 -- Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 734 shs. * 96,024 -- ------------- ------------- * 07/16/08 and 09/17/09. 2,587,781 1,790,544 ------------- ------------- K W P I HOLDINGS CORPORATION A manufacturer and distributor of vinyl windows and patio doors throughout the northwestern United States. 18% Senior Subordinated Note due 2014 $ 2,938,407 03/14/07 2,667,363 2,350,726 Common Stock (B) 232 shs. 03/13/07 232,000 -- Warrant, exercisable until 2019, to purchase preferred stock at $.01 per share (B) 134 shs. 07/07/09 -- -- Warrant, exercisable until 2017, to purchase common stock at $.01 per share (B) 167 shs. 03/14/07 162,260 -- ------------- ------------- 3,061,623 2,350,726 ------------- ------------- K-TEK HOLDING CORPORATION A manufacturer of instrumentation for liquid and bulk solids level detection for process and storage tanks. 14% Senior Subordinated Note due 2015 $ 2,287,451 12/20/07 2,246,086 2,310,326 Preferred Stock (B) 363,260 shs. 12/20/07 363,260 443,811 Common Stock (B) 102,616 shs. 12/20/07 1,026 300,124 ------------- ------------- 2,610,372 3,054,261 ------------- ------------- L H D EUROPE HOLDING, INC. A non-carbonated beverage dispensing company focused on the foodservice industry. Common Stock (B) 85 shs. 12/28/09 7,916 24,225 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 15
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- M V I HOLDING, INC. A manufacturer of large precision machined metal components used in equipment which services a variety of industries, including the oil and gas, mining, and defense markets. 13% Senior Subordinated Note due 2016 $ 1,236,312 09/12/08 $ 1,146,005 $ 1,175,484 Common Stock (B) 61 shs. 09/12/08 60,714 -- Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 66 shs. 09/12/08 65,571 -- ------------- ------------- 1,272,290 1,175,484 ------------- ------------- 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 05/04/07 912,469 975,000 Limited Liability Company Unit (B) 24,109 uts. * 314,464 332,804 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 3,375 shs. 05/04/07 43,031 46,589 ------------- ------------- * 05/04/07 and 01/02/08. 1,269,964 1,354,393 ------------- ------------- MANHATTAN BEACHWEAR HOLDING COMPANY A designer and distributor of women's swimwear. 12.5% Senior Subordinated Note due 2018 $ 2,647,059 01/15/10 2,320,245 2,682,925 Common Stock (B) 353 shs. 01/15/10 352,941 335,293 Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B) 312 shs. 01/15/10 283,738 3 ------------- ------------- 2,956,924 3,018,221 ------------- ------------- MAVERICK ACQUISITION COMPANY A manufacturer of capsules that cover the cork and neck of wine bottles. 7.03% Senior Secured Tranche A Note due 2010 (C) $ 193,178 09/03/04 193,178 192,365 12.5% Senior Secured Tranche B Note due 2011 $ 313,433 09/03/04 303,187 306,684 6.79% Senior Secured Revolver due 2011 (C) $ 50,933 09/03/04 50,932 50,232 Limited Partnership Interest (B) 7.84% int. 09/03/04 58,769 16,940 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 425 shs. 09/03/04 39,473 12,239 ------------- ------------- 645,539 578,460 ------------- ------------- MEDSYSTEMS HOLDINGS LLC A manufacturer of enteral feeding products, such as feeding tubes and other products related to assisted feeding. 13% Senior Subordinated Note due 2015 $ 1,169,464 08/29/08 1,046,168 1,192,854 Preferred Unit (B) 126 uts. 08/29/08 125,519 142,332 Common Unit Class A (B) 1,268 uts. 08/29/08 1,268 25,095 Common Unit Class B (B) 472 uts. 08/29/08 120,064 9,337 ------------- ------------- 1,293,019 1,369,618 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 16
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- MEGTEC HOLDINGS, INC. A supplier of industrial and environmental products and services to a broad array of industries. 12% Senior Subordinated Note due 2016 $ 2,161,017 09/24/08 $ 1,981,274 $ 2,052,966 Preferred Stock (B) 107 shs. 09/24/08 103,255 -- Limited Partnership Interest (B) 1.40% int. 09/16/08 388,983 -- Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 35 shs. 09/24/08 33,268 -- ------------- ------------- 2,506,780 2,052,966 ------------- ------------- 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 (D) $ 2,685,614 * 2,588,904 2,282,772 Common Stock (B) 450 shs. * 450,000 -- Warrant, exercisable until 2013, to purchase common stock at $.02 per share (B) 164 shs. * 162,974 -- ------------- ------------- * 08/12/05 and 09/11/06. 3,201,878 2,282,772 ------------- ------------- MILWAUKEE GEAR COMPANY A manufacturer of high-precision custom gears and gear drives used by original equipment manufacturers operating in a number of industries. 13% Senior Subordinated Note due 2014 $ 2,353,846 07/21/08 2,233,224 2,118,461 Preferred Stock (B) 263 shs. 07/21/08 261,830 -- Common Stock (B) 18 shs. 07/21/08 20,000 -- Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 10 shs. 07/21/08 11,285 -- ------------- ------------- 2,526,339 2,118,461 ------------- ------------- MOMENTUM HOLDING CO. A designer and supplier of upholstery fabric to commercial furniture manufacturers and architectural and design firms. Limited Partnership Interest (B) 21.23% int. 08/04/06 106,153 243,812 Warrant, exercisable until 2014, to purchase common stock at $.02 per share (B) 1,107 shs. 08/04/06 107,109 254,146 ------------- ------------- 213,262 497,958 ------------- ------------- MONESSEN HOLDING CORPORATION A designer and manufacturer of a broad line of gas, wood, and electric hearth products and accessories. 14% Senior Subordinated Note due 2014 (D) $ 2,550,000 07/25/08 2,412,564 1,275,000 14% PIK Note due 2014 (D) $ 792,791 07/25/08 646,821 396,395 Warrant, exercisable until 2014, to purchase common stock at $.02 per share (B) 152 shs. 03/31/06 138,125 -- ------------- ------------- 3,197,510 1,671,395 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 17
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- NABCO, INC. A producer of explosive containment vessels in the United States. 14% Senior Subordinated Note due 2014 (D) $ 625,000 02/24/06 $ 575,313 $ 312,500 Limited Liability Company Unit (B) 825 uts. * 825,410 -- Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 129 shs. 02/24/06 37,188 -- ------------- ------------- * 02/24/06 and 06/22/07. 1,437,911 312,500 ------------- ------------- NAVIS GLOBAL A designer, manufacturer, seller and servicer of finishing machinery for the knit and woven segments of the global textile industry. 10.75% Senior Secured Note due 2011 (D) $ 609,206 05/28/04 607,397 578,746 14% Senior Subordinated Note due 2014 (D) $ 1,338,613 05/28/04 1,155,793 -- ------------- ------------- 1,763,190 578,746 ------------- ------------- NESCO HOLDINGS CORPORATION A sales and leasing company that provides equipment to the electric utility, telecommunications, and various other industries. 12% Senior Secured Subordinated Note due 2015 $ 2,125,000 08/02/07 1,888,243 2,146,250 Common Stock (B) 425,000 shs. 08/02/07 425,000 487,724 Warrant, exercisable until 2015, to purchase common stock at $.01 per share (B) 119,360 shs. 08/02/07 194,257 136,976 ------------- ------------- 2,507,500 2,770,950 ------------- ------------- 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 1,159,194 Limited Partnership Interest of Saw Mill PCG Partners LLC (B) 2.73% int. 02/01/07 1,019,980 -- Limited Liability Company Unit Class D of Saw Mill PCG Partners LLC (B) 15 uts. * 15,389 7,695 Limited Liability Company Unit Class D-1 of Saw Mill PCG Partners LLC (B) 95 uts. 09/30/09 95,405 47,713 Preferred Stock Class A (B) 1 sh. 12/18/08 1,370 686 Preferred Stock Class A-1 (B) 7 shs. 09/30/09 8,278 4,140 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 91 shs. 02/02/07 90,830 -- ------------- ------------- * 12/18/08 and 09/30/09. 2,639,822 1,219,428 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 18
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- NORTHWEST MAILING SERVICES, INC. A producer of promotional materials for companies that use direct mail as part of their customer retention and loyalty programs. 12% Senior Subordinated Note due 2016 $ 2,281,579 07/09/09 $ 1,915,080 $ 2,350,026 Limited Partnership Interest (B) 2,684 uts. 07/09/09 268,421 255,000 Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B) 3,498 shs. 07/09/09 349,753 35 ------------- ------------- 2,533,254 2,605,061 ------------- ------------- NYLONCRAFT, INC. A supplier of engineered plastic components for the automotive industry. 10% Senior Secured Note due 2012 $ 812,500 01/28/02 812,500 771,875 15% Senior Subordinated Note due 2012 (D) $ 500,000 01/28/02 473,642 250,000 Convertible Preferred Stock A (B) 1,000 shs. 01/28/02 961,637 -- 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 -- ------------- ------------- 2,722,324 1,021,875 ------------- ------------- O E C HOLDINGS CORPORATION Headquartered in Dover Plains, New York, Oracle Elevator Company provides elevator maintenance, repair and modernization services. 13% Senior Subordinated Note due 2017 $ 1,333,333 06/04/10 1,213,349 1,338,470 Preferred Stock Series A (B) 1,661 shs. 06/04/10 166,062 157,759 Preferred Stock Series B (B) 934 shs. 06/04/10 93,376 9 Common Stock (B) 1,032 shs. 06/04/10 1,032 981 ------------- ------------- 1,473,819 1,497,219 ------------- ------------- 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 $ 145,713 01/03/06 143,527 145,713 13% Senior Subordinated Note due 2013 $ 687,241 01/03/06 639,325 687,241 Common Stock (B) 322,307 shs. 01/03/06 322,307 230,626 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 75,378 shs. 01/03/06 62,824 53,937 ------------- ------------- 1,167,983 1,117,517 ------------- ------------- OLYMPIC SALES, INC. A boat retailer in Washington state, Oregon, California and British Columbia. 12% Senior Subordinated Note due 2010 (D) $ 1,022,000 08/07/98 1,022,000 153,300 12% Senior Subordinated Note due 2010 (D) $ 307,071 02/09/00 268,283 46,061 ------------- ------------- 1,290,283 199,361 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 19
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- ONTARIO DRIVE & GEAR LTD. A manufacturer of all-wheel drive, off-road amphibious vehicles and related accessories. Limited Liability Company Unit (B) 3,667 uts. 01/17/06 $ 572,115 $ 521,311 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 619 shs. 01/17/06 170,801 88,016 ------------- ------------- 742,916 609,327 ------------- ------------- 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 $ 2,335,864 07/03/06 2,257,789 2,371,019 Preferred Unit (B) 382 uts. 07/03/06 382,150 581,167 Preferred Unit (B) 69 uts. 07/03/06 68,790 104,615 Common Unit Class I (B) 148 uts. 07/03/06 -- 616,819 Common Unit Class L (B) 31 uts. 07/03/06 -- 130,350 ------------- ------------- 2,708,729 3,803,970 ------------- ------------- 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 2,195,027 2,295,000 Preferred Stock (B) 36 shs. 03/31/06 329,596 457,549 Common Stock (B) 23 shs. 03/31/06 25,500 197,647 Warrant, exercisable until 2013, to purchase common stock at $.01 per share (B) 13 shs. 03/31/06 11,122 114,971 ------------- ------------- 2,561,245 3,065,167 ------------- ------------- PACIFIC CONSOLIDATED HOLDINGS LLC A manufacturer of rugged, mobile liquid and gaseous oxygen and nitrogen generating systems used in the global defense, oil and gas, and medical sectors. 14% Senior Subordinated Note due 2012 $ 1,351,424 04/27/07 1,279,381 1,237,206 Limited Liability Company Unit (B) 1,754,707 uts. 04/27/07 63,233 -- ------------- ------------- 1,342,614 1,237,206 ------------- ------------- 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 2011 $ 2,125,000 12/19/00 2,071,563 2,123,795 Membership Interests of MM/Lincap PPI Investments, Inc., LLC (B) 2.42% int. 12/21/00 265,625 274,694 ------------- ------------- 2,337,188 2,398,489 ------------- ------------- PEARLMAN ENTERPRISES, INC. A developer and distributor of tools, equipment, and supplies to the natural and engineered stone industry. Preferred Stock Series A (B) 2,334 shs. 05/22/09 111,508 -- Preferred Stock Series B (B) 13,334 shs. 05/22/09 547,872 -- Common Stock (B) 40,540 shs. 05/22/09 1,877,208 -- ------------- ------------- 2,536,588 -- ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 20
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- POSTLE ALUMINUM COMPANY LLC A manufacturer and distributor of aluminum extruded products. 15% Senior Subordinated Note due 2013 $ 1,530,000 06/03/10 $ 1,499,400 $ 1,533,596 3% Senior Subordinated PIK Note due 2014 (D) $ 2,198,100 10/02/06 2,014,226 -- Limited Liability Company Unit Class A (B) 1,384 uts. 10/02/06 510,000 -- Limited Liability Company Unit (B) 143 uts. 05/22/09 72,042 67,828 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 8,595 shs. 10/02/06 124,644 -- ------------- ------------- 4,220,312 1,601,424 ------------- ------------- POWER SERVICES HOLDING COMPANY A provider of industrial motor repair services, predictive and preventative maintenance, and performance improvement consulting serving the petrochemical, mining, power generation, metals, and paper industries. 12% Senior Subordinated Note due 2016 $ 2,372,093 02/11/08 2,189,265 2,274,165 Limited Partnership Interest (B) 23.70% int. 02/11/08 177,729 21,606 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 1,322 shs. 02/11/08 167,588 42,581 ------------- ------------- 2,534,582 2,338,352 ------------- ------------- PRECISION WIRE HOLDING COMPANY A manufacturer of specialty medical wires that are used in non-elective minimally invasive surgical procedures. 14.25% Senior Subordinated Note due 2016 $ 2,564,895 11/12/09 2,313,217 2,604,281 Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B) 206 shs. 11/12/09 203,944 2 ------------- ------------- 2,517,161 2,604,283 ------------- ------------- QUALIS AUTOMOTIVE LLC A distributor of aftermarket automotive brake and chassis products. 13% Senior Subordinated Note due 2013 $ 1,742,711 05/28/04 1,598,853 1,820,047 Common Stock (B) 354,167 shs. 05/28/04 354,166 515,941 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 377,719 shs. 05/28/04 377,719 550,250 ------------- ------------- 2,330,738 2,886,238 ------------- ------------- R A J MANUFACTURING HOLDINGS LLC A designer and manufacturer of women's swimwear sold under a variety of licensed brand names. 14.5% Senior Subordinated Note due 2014 $ 2,434,074 12/15/06 2,244,702 2,312,370 Limited Liability Company Unit (B) 2,828 uts. 12/15/06 282,810 88,662 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 3 shs. 12/15/06 131,483 41,812 ------------- ------------- 2,658,995 2,442,844 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 21
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- R E I DELAWARE HOLDING, INC. An engineer and manufacturer of highly complex, close tolerance components, assemblies, tooling and custom automation equipment primarily for aerospace, medical and defense/radar markets. 12% Senior Subordinated Note due 2016 $ 2,550,000 01/18/08 $ 2,467,911 $ 2,551,017 Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 6 shs. 01/18/08 31,089 468 ------------- ------------- 2,499,000 2,551,485 ------------- ------------- ROYAL BATHS MANUFACTURING COMPANY A manufacturer and distributor of acrylic and cultured marble bathroom products. 12.5% Senior Subordinated Note due 2011 $ 1,062,500 11/14/03 1,032,510 1,052,506 Warrant, exercisable until 2011, to purchase common stock at $.01 per share (B) 140 shs. 11/14/03 122,946 120,828 ------------- ------------- 1,155,456 1,173,334 ------------- ------------- SAFETY SPEED CUT MANUFACTURING COMPANY, INC. A manufacturer of vertical panel saws and routers for the woodworking industry. Class B Common Stock (B) 1,480 shs. 06/02/99 256,212 274,395 ------------- ------------- SAVAGE SPORTS HOLDING, INC. A manufacturer of sporting firearms. 12% Senior Subordinated Note due 2012 $ 1,538,793 09/10/04 1,487,423 1,538,793 Preferred Stock Series A (B) 66,185 shs. 05/28/10 66,185 62,876 Common Stock (B) 612 shs. * 642,937 1,045,385 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 134 shs. 09/10/04 113,578 228,242 ------------- ------------- * 09/10/04 and 10/05/07. 2,310,123 2,875,296 ------------- ------------- SENCORE HOLDING COMPANY A designer, manufacturer, and marketer of decoders, receivers and modulators sold to broadcasters, satellite, cable and telecom operators for encoding/decoding analog and digital transmission video signals. 12.5% Senior Subordinated Note due 2014 $ 1,765,385 01/15/09 1,564,156 1,500,577 Common Stock (B) 131 shs. 01/15/09 130,769 9,657 Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B) 282 shs. 01/15/09 281,604 20,801 ------------- ------------- 1,976,529 1,531,035 ------------- ------------- SMART SOURCE HOLDINGS LLC A short-term computer rental company. 12% Senior Subordinated Note due 2015 $ 2,223,076 * 2,051,189 2,160,501 Limited Liability Company Unit (B) 619 uts. * 631,592 329,829 Warrant, exercisable until 2015, to purchase common stock at $.01 per share (B) 157 shs. * 164,769 83,557 ------------- ------------- * 08/31/07 and 03/06/08. 2,847,550 2,573,887 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 22
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- SPARTAN FOODS HOLDING COMPANY A manufacturer of branded pizza crusts and pancakes. 12.25% Senior Subordinated Note due 2017 $ 1,912,500 12/15/09 $ 1,655,527 $ 1,940,317 Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 257 shs. 12/15/09 227,109 3 ------------- ------------- 1,882,636 1,940,320 ------------- ------------- SPECIALTY COMMODITIES, INC. A distributor of specialty food ingredients. 13.25% Senior Subordinated Note due 2016 $ 2,297,852 10/23/08 2,163,806 2,343,809 Common Stock (B) 30,000 shs. 10/23/08 300,000 271,492 Warrant, excercisable until 2018, to purchase common stock at $.01 per share (B) 11,054 shs. 10/23/08 100,650 100,036 ------------- ------------- 2,564,456 2,715,337 ------------- ------------- 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 2,134,093 2,120,721 Common Stock (B) 311 shs. 08/01/06 310,976 52,810 Warrant, exercisable until 2014, to purchase common stock at $.02 per share (B) 104 shs. 08/01/06 93,293 17,588 ------------- ------------- 2,538,362 2,191,119 ------------- ------------- SUNDANCE INVESTCO LLC A provider of post-production services to producers of movies and television shows. Limited Liability Company Unit Class A (B) 6,429 shs. 03/31/10 -- -- ------------- ------------- SYNTERACT HOLDINGS CORPORATION A provider of outsourced clinical trial management services to pharmaceutical and biotechnology companies. 14.5% Senior Subordinated Note due 2016 $ 2,600,830 09/02/08 2,441,188 2,609,152 Redeemable Preferred Stock Series A (B) 1,280 shs. 09/02/08 12,523 9,027 Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 12,803 shs. 09/02/08 112,693 -- ------------- ------------- 2,566,404 2,618,179 ------------- ------------- T H I ACQUISITION, INC. A machine servicing company providing value-added steel services to long steel products. 12% Senior Subordinated Note due 2016 $ 2,550,000 01/14/08 2,410,946 2,040,000 Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 9 shs. 01/14/08 88,054 -- ------------- ------------- 2,499,000 2,040,000 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 23
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- TELECORPS HOLDINGS, INC. A provider of equipment and services to producers of television shows and motion pictures. 12.75% Senior Subordinated Note due 2016 $ 3,176,506 * $ 2,785,539 $ 3,017,681 Common Stock (B) 270 shs. 09/02/09 10,994 -- Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B) 7,906 shs. * 327,437 -- ------------- ------------- * 05/20/09 and 09/02/09. 3,123,970 3,017,681 ------------- ------------- TERRA RENEWAL LLC 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. 12% Senior Subordinated Note due 2014 $ 1,162,110 * 1,118,762 928,061 6.79% Term Note due 2012 (C) $ 1,366,155 * 1,361,705 1,269,425 8.75% Term Note due 2012 (C) $ 1,449 * 1,449 1,347 Limited Partnership Interest of Saw Mill Capital Fund V, LLC (B) 3.97% int. ** 149,176 -- Warrant, exercisable until 2016, to purchase common stock at $.01 per share (B) 72 shs. 04/28/06 59,041 -- ------------- ------------- * 04/28/06 and 09/13/06. ** 03/01/05 and 10/10/08. 2,690,133 2,198,833 ------------- ------------- TORRENT GROUP HOLDINGS, INC. A contractor specializing in the sales and installation of engineered drywells for the retention and filtration of stormwater and nuisance water flow. 14.5% Senior Subordinated Note due 2013 (D) $ 2,455,561 10/26/07 2,102,363 -- Series A Preferred Stock (B) 414 shs. 10/26/07 414,051 -- ------------- ------------- 2,516,414 -- ------------- ------------- TOTAL E & S, 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 03/02/07 838,581 808,783 13% Senior Subordinated Note due 2014 (D) $ 598,450 03/02/07 490,608 299,225 ------------- ------------- 1,329,189 1,108,008 ------------- ------------- TRANSPAC HOLDING COMPANY A designer, importer and wholesaler of home decor and seasonal gift products. 14% Senior Subordinated Note due 2015 (D) $ 1,773,006 10/31/07 1,649,939 1,684,356 Common Stock (B) 209 shs. 10/31/07 208,589 -- Warrant, exercisable until 2015, to purchase common stock at $.01 per share (B) 94 shs. 10/31/07 87,607 -- ------------- ------------- 1,946,135 1,684,356 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 24
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- TRANSTAR HOLDING COMPANY A distributor of aftermarket automotive transmission parts. 12% Senior Subordinated Note due 2014 $ 1,734,000 08/31/05 $ 1,686,481 $ 1,751,340 Common Stock (B) 1,078 shs. * 1,078,450 1,516,446 Warrant, exercisable until 2013, to purchase common stock at $.02 per share (B) 86 shs. 08/31/05 77,485 120,843 ------------- ------------- * 08/31/05 and 04/30/07. 2,842,416 3,388,629 ------------- ------------- TRANZONIC COMPANIES (THE) 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 2010 $ 2,712,000 02/05/98 2,681,582 2,712,000 Common Stock (B) 630 shs. 02/04/98 630,000 746,449 Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 444 shs. 02/05/98 368,832 526,068 ------------- ------------- 3,680,414 3,984,517 ------------- ------------- TRUCK BODIES & EQUIPMENT INTERNATIONAL A designer and manufacturer of accessories for heavy and medium duty trucks, primarily dump bodies, hoists, various forms of flatbed bodies, landscape bodies and other accessories. 8% Senior Subordinated Note due 2011 (D) $ 2,309,541 * 2,141,949 1,385,725 Preferred Stock Series B (B) 241 shs. 10/20/08 241,172 -- Common Stock (B) 742 shs. * 800,860 -- Warrant, exercisable until 2013, to purchase common stock at $.02 per share (B) 153 shs. * 159,894 -- Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B) 1,054 shs. 10/20/08 -- -- ------------- ------------- * 07/19/05 and 12/22/05. 3,343,875 1,385,725 ------------- ------------- TRUSTILE DOORS, INC. A manufacturer and distributor of interior doors. Warrant, exercisable until 2010, to purchase common stock at $.01 per share (B) 5,781 shs. 04/11/03 68,059 51,863 ------------- ------------- U M A ENTERPRISES, INC. An importer and wholesaler of home decor products. 15% Senior Subordinated Note due 2015 $ 1,773,283 02/08/08 1,747,696 1,762,462 Convertible Preferred Stock (B) 887 shs. 02/08/08 886,956 420,405 ------------- ------------- 2,634,652 2,182,867 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 25
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- U-LINE CORPORATION A manufacturer of high-end, built-in, undercounter ice making, wine storage and refrigeration appliances. 14.5% Senior Subordinated Note due 2012 $ 1,882,100 04/30/04 $ 1,805,456 $ 1,787,995 14.5% PIK Note due 2012 $ 272,292 10/06/09 232,400 258,677 Common Stock (B) 182 shs. 04/30/04 182,200 13,260 Warrant, exercisable until 2012, to purchase common stock at $.01 per share (B) 230 shs. 04/30/04 211,736 16,770 ------------- ------------- 2,431,792 2,076,702 ------------- ------------- VISIONEERING, INC. A designer and manufacturer of tooling and fixtures for the aerospace industry. 10.5% Senior Secured Term Loan due 2013 $ 802,941 05/17/07 790,897 793,868 13% Senior Subordinated Note due 2014 $ 648,530 05/17/07 595,643 637,587 18% PIK Convertible Preferred Stock (B) 37,381 shs. 03/13/09 72,519 58,015 Common Stock (B) 123,529 shs. 05/17/07 123,529 -- Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 35,006 shs. 05/17/07 55,055 -- ------------- ------------- 1,637,643 1,489,470 ------------- ------------- VITEX PACKAGING GROUP, INC. A manufacturer of specialty packaging, primarily envelopes and tags used on tea bags. 10% Senior Subordinated PIK Note due 2011 $ 165,165 10/29/09 150,904 156,907 5% Senior Subordinated PIK Note due 2011 (D) $ 850,000 06/30/07 741,532 807,500 Class B Unit (B) 767,881 uts. 10/29/09 348,058 -- Class C Unit (B) 850,000 uts. 10/29/09 780,572 196,578 Limited Liability Company Unit Class A (B) 723,465 uts. * 433,222 -- Limited Liability Company Unit Class B (B) 182,935 uts. 07/19/04 182,935 -- ------------- ------------- * 07/19/04 and 10/29/09. 2,637,223 1,160,985 ------------- ------------- WAGGIN' TRAIN HOLDINGS LLC A producer of premium quality meat dog treats. 14% Senior Subordinated Note due 2014 $ 2,241,855 11/15/07 2,196,409 2,264,274 Limited Liability Company Unit Class B (B) 423 uts. 11/15/07 422,652 510,171 Limited Liability Company Unit Class C (B) 423 uts. 11/15/07 -- 415,292 ------------- ------------- 2,619,061 3,189,737 ------------- ------------- WALLS INDUSTRIES, INC. A provider of branded workwear and sporting goods apparel. Limited Partnership Interest (B) 0.40% int. 07/12/04 3,728 -- Common Stock (B) 4,028 shs. 12/21/07 -- -- ------------- ------------- 3,728 -- ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 26
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
PRINCIPAL AMOUNT, SHARES, UNITS, OR OWNERSHIP ACQUISITION CORPORATE RESTRICTED SECURITIES:(A) CONTINUED PERCENTAGE DATE COST FAIR VALUE - --------------------------------------------------------------------------------------------------------------------------------- WELLBORN FOREST HOLDING CO. A manufacturer of semi-custom kitchen and bath cabinetry. 14.13% Senior Subordinated Note due 2014 $ 1,721,250 11/30/06 $ 1,621,114 $ 1,635,188 Common Stock (B) 191 shs. 11/30/06 191,250 29,705 Warrant, exercisable until 2014, to purchase common stock at $.01 per share (B) 95 shs. 11/30/06 86,493 14,830 ------------- ------------- 1,898,857 1,679,723 ------------- ------------- WHEATON HOLDING CORPORATION A distrtibutor and manufacturer of laboratory supply products and packaging. 13% Senior Subordinated Note due 2017 $ 3,000,000 06/08/10 2,728,931 3,000,000 Preferred Stock Series B (B) 2,109 shs. 06/08/10 210,924 21 Common Stock (B) 1,058 shs. 06/08/10 1,058 11 ------------- ------------- 2,940,913 3,000,032 ------------- ------------- 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 1,073,816 811,437 Limited Partnership Interest (B) 23.16% int. 05/14/07 115,804 -- Warrant, exercisable until 2015, to purchase common stock at $.02 per share (B) 88 shs. 05/14/07 83,462 -- ------------- ------------- 1,273,082 811,437 ------------- ------------- XALOY SUPERIOR HOLDINGS, INC. A provider of melt processing components and ancillary equipment for both plastic injection molding and extrusion applications. 15.5% Senior Subordinated Note due 2015 (D) $ 2,322,844 09/08/08 2,272,887 1,161,422 Common Stock (B) 283 shs. 09/08/08 283,333 -- ------------- ------------- 2,556,220 1,161,422 ------------- ------------- TOTAL PRIVATE PLACEMENT INVESTMENTS (E) 219,892,503 191,058,029 ------------- ------------- - --------------------------------------------------------------------------------------------------------------------------------- 27
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
INTEREST DUE PRINCIPAL MARKET CORPORATE RESTRICTED SECURITIES:(A) (CONTINUED) RATE DATE AMOUNT COST VALUE - --------------------------------------------------------------------------------------------------------------------------------- RULE 144A SECURITIES - 6.65%: BONDS - 6.60% Advanced Micro Devices, Inc. 8.125% 12/15/17 $ 750,000 $ 715,598 $ 744,375 Appleton Papers, Inc. 11.250 12/15/15 303,000 300,000 249,975 Avis Budget Car Rental LLC 9.625 03/15/18 85,000 83,839 85,213 Cemex Finance LLC 9.500 12/14/16 375,000 392,275 361,828 Cenveo Corporation 10.500 08/15/16 100,000 100,000 101,750 Clear Channel Worldwide Holdings, Inc. 9.250 12/15/17 750,000 750,000 753,750 Coffeyville Resources LLC 9.000 04/01/15 140,000 139,315 138,600 Compucom Systems, Inc. 12.500 10/01/15 1,330,000 1,294,993 1,401,488 Cricket Communications, Inc. 9.375 11/01/14 750,000 754,730 761,250 Dae Aviation Holdings, Inc. 11.250 08/01/15 200,000 195,078 198,000 Eastman Kodak Co. 9.750 03/01/18 750,000 735,152 740,625 Easton-Bell Sports, Inc. 9.750 12/01/16 320,000 328,000 331,200 Energy Future Holdings 10.000 01/15/20 100,000 100,000 99,750 G F S I, Inc. (C) 10.500 06/01/11 715,000 685,658 532,675 Gannett Company, Inc. 9.375 11/15/17 125,000 123,228 132,188 Geoeye, Inc. 9.625 10/01/15 750,000 776,768 765,000 Georgia Gulf Corporation 9.000 01/15/17 190,000 195,106 192,850 Gray Television, Inc. 10.500 06/29/15 500,000 475,179 490,000 Great Atlantic & Pacific Tea Co. 11.375 08/01/15 35,000 34,185 29,138 International Lease Finance Corporation 8.625 09/15/15 140,000 137,859 132,650 JohnsonDiversey, Inc. 8.250 11/15/19 100,000 99,170 102,750 Lamar Media Corporation 8.000 11/01/17 195,000 195,000 200,850 Landry's Restaurants, Inc. 7.875 04/15/18 125,000 125,000 125,781 L B I Escrow Corporation 11.625 12/01/15 125,000 134,219 130,313 Level 3 Financing, Inc. 10.000 02/01/18 750,000 745,641 663,750 Libbey Glass, Inc. 10.000 02/15/15 125,000 131,126 130,000 LIN Television Corporation 8.375 04/15/18 190,000 192,572 190,000 Magnachip Semiconductor 10.500 04/15/18 180,000 180,655 181,350 McClatchy Co. 11.500 02/15/17 275,000 271,766 279,125 Michael Foods, Inc. 9.750 07/15/18 75,000 75,000 77,063 Nexstar Broadcasting Group, Inc. 8.875 04/15/17 175,000 173,887 176,750 Packaging Dynamics Corporation of America 10.000 05/01/16 1,200,000 1,194,751 1,002,000 Pinnacle Foods Finance LLC 9.250 04/01/15 75,000 75,000 76,500 Reddy Ice Corporation 13.250 11/01/15 150,000 153,946 144,750 SandRidge Energy, Inc. 8.000 06/01/18 360,000 363,882 341,100 - --------------------------------------------------------------------------------------------------------------------------------- 28
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
SHARES OR INTEREST DUE PRINCIPAL MARKET CORPORATE RESTRICTED SECURITIES:(A) (CONTINUED) RATE DATE AMOUNT COST VALUE - --------------------------------------------------------------------------------------------------------------------------------- SandRidge Energy, Inc. 8.750% 01/15/20 $ 750,000 $ 744,973 $ 712,500 Sinclair Television Group, Inc. 9.250 11/01/17 425,000 414,051 429,250 Spectrum Brands, Inc. 9.500 06/15/18 125,000 123,290 129,686 Trimas Corporation 9.750 12/15/17 75,000 73,553 75,750 Tunica-Biloxi Gaming Authority 9.000 11/15/15 1,075,000 1,097,853 962,125 Univision Comunications, Inc. 12.000 07/01/14 200,000 214,020 214,500 ViaSystems, Inc. 12.000 01/15/15 175,000 169,126 189,000 West Corporation 11.000 10/15/16 150,000 159,111 152,625 ------------ ------------ TOTAL BONDS 15,424,555 14,929,823 ------------ ------------ CONVERTIBLE PREFERRED STOCK - 0.00% ETEX Corporation (B) 777 716 -- ------------ ------------ TOTAL CONVERTIBLE PREFERRED STOCK 716 -- ------------ ------------ PREFERRED STOCK - 0.05% General Motors Acceptance Corporation, Inc. 143 45,009 111,151 TherOX, Inc. (B) 103 4,131 -- ------------ ------------ TOTAL PREFERRED STOCK 49,140 111,151 ------------ ------------ COMMON STOCK - 0.00% Touchstone Health Partnership (B) 1,168 4,254 -- ------------ ------------ TOTAL COMMON STOCK 4,254 -- ------------ ------------ Total Rule 144A Securities 15,478,665 15,040,974 ------------ ------------ TOTAL CORPORATE RESTRICTED SECURITIES $235,371,168 $206,099,003 ------------ ------------ - --------------------------------------------------------------------------------------------------------------------------------- 29
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
INTEREST DUE PRINCIPAL MARKET CORPORATE PUBLIC SECURITIES - 17.51%: (A) RATE DATE AMOUNT COST VALUE - --------------------------------------------------------------------------------------------------------------------------------- BONDS - 16.64% A M C Entertainment, Inc. 11.000% 02/01/16 $ 1,000,000 $ 1,003,291 $ 1,050,000 ACCO Brands Corporation 10.625 03/15/15 100,000 98,662 108,500 Affinia Group, Inc. 9.000 11/30/14 50,000 48,500 50,250 American Axle & Manufacturing Holding, Inc. 7.875 03/01/17 750,000 608,625 650,625 American General Finance Corporation 6.500 09/15/17 375,000 322,500 292,500 Atlas Pipeline Partners 8.125 12/15/15 750,000 663,750 690,000 Berry Plastics Corporation 8.875 09/15/14 750,000 705,000 721,875 Berry Plastics Corporation (C) 5.053 02/15/15 500,000 478,686 473,750 Boyd Gaming Corporation 7.125 02/01/16 700,000 630,500 575,750 Boyd Gaming Corporation 6.750 04/15/14 150,000 137,250 131,250 Brigham Exploration Co. 9.625 05/01/14 1,000,000 970,645 1,005,000 C I T Group, Inc. 7.000 05/01/15 415,000 386,988 382,838 Cenveo Corporation 7.875 12/01/13 1,300,000 1,192,500 1,248,000 Chaparral Energy, Inc. 8.875 02/01/17 1,000,000 991,780 920,000 Crosstex Energy L.P. 8.875 02/15/18 225,000 220,445 224,719 Dynegy Holdings, Inc. 7.750 06/01/19 830,000 564,400 573,738 Exide Corporation 10.500 03/15/13 430,000 432,158 434,300 Ford Motor Credit Co. 8.000 06/01/14 125,000 106,282 129,375 Ford Motor Credit Co. 7.450 07/16/31 500,000 441,500 451,250 Gencorp, Inc. 9.500 08/15/13 259,000 259,000 261,914 Goodyear Tire & Rubber Co. 10.500 05/15/16 100,000 96,326 108,750 Great Lakes Dredge & Dock Corporation 7.750 12/15/13 1,000,000 948,750 990,000 Harrah's Operating Co. 11.250 06/01/17 325,000 313,760 342,063 Hawker Beechcraft Acquisition Co. 9.750 04/01/17 1,000,000 1,006,785 617,500 Headwaters, Inc. 11.375 11/01/14 500,000 518,431 505,000 Hertz Corporation 10.500 01/01/16 750,000 775,208 778,125 Hexion Finance Escrow LLC 8.875 02/01/18 375,000 358,725 338,438 Intelsat Bermuda Ltd. 9.250 06/15/16 1,365,000 1,405,402 1,354,763 Interline Brands, Inc. 8.125 06/15/14 1,000,000 992,541 1,001,250 International Coal Group, Inc. 9.125 04/01/18 125,000 124,123 125,000 International Lease Finance Corporation 5.875 05/01/13 750,000 672,250 691,875 Kar Holdings, Inc. 8.750 05/01/14 50,000 50,000 50,250 Landry's Restaurants, Inc. 11.625 12/01/15 40,000 42,760 41,400 Liberty Media Corporation 5.700 05/15/13 1,000,000 951,610 1,022,500 Manitowoc Company, Inc. 7.125 11/01/13 200,000 200,000 193,000 Markwest Energy Operating Co. 8.750 04/15/18 125,000 123,979 126,250 Markwest Energy Operating Co. 6.875 11/01/14 70,000 55,578 67,200 National Mentor Holdings, Inc. 11.250 07/01/14 375,000 374,531 374,063 Nebraska Book Company, Inc. 8.625 03/15/12 750,000 676,875 695,625 - --------------------------------------------------------------------------------------------------------------------------------- 30
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
SHARES OR INTEREST DUE PRINCIPAL MARKET CORPORATE PUBLIC SECURITIES:(A) (CONTINUED) RATE DATE AMOUNT COST VALUE - --------------------------------------------------------------------------------------------------------------------------------- Newark Group, Inc. 9.750% 03/15/14 $ 850,000 $ 796,863 $ 571,625 Nortek, Inc. 11.000 12/01/13 175,778 173,174 183,249 NXP Funding LLC 9.500 10/15/15 750,000 738,750 628,125 Omnicare, Inc. 7.750 06/01/20 75,000 75,000 76,500 Owens Corning, Inc. 9.000 06/15/19 55,000 54,112 63,663 Polypore, Inc. 8.750 05/15/12 1,000,000 965,000 1,002,500 Pregis Corporation 12.375 10/15/13 1,000,000 981,490 988,750 Quebecor Media, Inc. 7.750 03/15/16 1,050,000 978,235 1,029,000 Quiksilver, Inc. 6.875 04/15/15 315,000 290,463 286,256 RailAmerica, Inc. 9.250 07/01/17 240,000 230,589 251,400 Rental Service Corporation 9.500 12/01/14 750,000 728,567 745,313 Rite Aid Corporation 10.250 10/15/19 175,000 190,344 174,344 Sabre Holdings Corporation 8.350 03/15/16 500,000 455,000 477,500 Sanmina-SCI Corporation 8.125 03/01/16 375,000 374,063 369,375 Seneca Gaming Corporation 7.250 05/01/12 500,000 477,500 488,750 Sheridan Acquisition Corporation 10.250 08/15/11 375,000 370,001 370,781 Sprint Capital Corporation 6.900 05/01/19 625,000 575,531 565,625 Stanadyne Corporation 10.000 08/15/14 1,000,000 1,000,000 910,000 Stewart & Stevenson LLC 10.000 07/15/14 1,465,000 1,490,208 1,333,150 Teck Resources Ltd. 10.750 05/15/19 65,000 61,926 79,645 Tekni-Plex, Inc. 8.750 11/15/13 650,000 653,359 509,438 Tenneco, Inc. 8.125 11/15/15 1,100,000 540,000 1,105,500 Texas Industries, Inc. 7.250 07/15/13 70,000 70,000 67,725 Thermadyne Holdings Corporation 11.500 02/01/14 115,000 115,869 116,438 Ticketmaster Entertainment, Inc. 10.750 07/28/16 500,000 500,000 538,750 Titan International, Inc. 8.000 01/15/12 1,070,000 1,062,100 1,112,800 Tube City IMS Corporation 9.750 02/01/15 1,000,000 966,118 967,500 United Components, Inc. 9.375 06/15/13 1,080,000 1,079,726 1,085,400 United Rentals, Inc. 10.875 06/15/16 125,000 121,478 134,063 Verso Paper Holdings LLC 11.375 08/01/16 175,000 170,250 149,180 Verso Paper Holdings LLC 9.125 08/01/14 350,000 340,375 334,250 Waste Services, Inc. 9.500 04/15/14 1,100,000 1,114,521 1,127,500 ------------ ------------ TOTAL BONDS 37,690,708 37,642,781 ------------ ------------ - --------------------------------------------------------------------------------------------------------------------------------- 31
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
MARKET CORPORATE PUBLIC SECURITIES:(A) (CONTINUED) SHARES COST VALUE - --------------------------------------------------------------------------------------------------------------------------------- COMMON STOCK - 0.87% Bally Total Fitness Holding Corporation (B) 29 $ 2 $ -- Chase Packaging Corporation (B) 9,541 -- 477 CKX, Inc. (B) 97,500 784,875 486,525 Directed Electronics, Inc. (B) 368,560 1,856,534 195,337 El Paso Corporation (B) 65,000 808,362 722,150 Intrepid Potash, Inc. (B) 365 11,680 7,143 ITC^DeltaCom, Inc. (B) 178,666 1,563,327 259,066 Nortek, Inc. (B) 175 1 7,350 Rue21, Inc. (B) 650 12,350 19,721 Supreme Industries, Inc. 125,116 267,319 270,251 ------------ ------------ TOTAL COMMON STOCK 5,304,450 1,968,020 ------------ ------------ TOTAL CORPORATE PUBLIC SECURITIES $ 42,995,158 $ 39,610,801 ------------ ------------ INTEREST DUE PRINCIPAL MARKET SHORT-TERM SECURITIES: RATE/YIELD DATE AMOUNT COST VALUE - --------------------------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER - 1.88% Citigroup Funding, Inc. 0.250% 07/09/10 $ 2,500,000 $ 2,499,861 $ 2,499,861 Wisconsin Electric Power Co. 0.180 07/06/10 1,750,000 1,749,956 1,749,956 ------------ ------------ TOTAL SHORT-TERM SECURITIES $ 4,249,817 $ 4,249,817 ------------ ------------ TOTAL INVESTMENTS 110.49% $282,616,143 $249,959,621 ============ ------------ Other Assets 3.32 7,513,587 Liabilities (13.81) (31,243,214) ------ ------------ TOTAL NET ASSETS 100.00% $226,229,994 ====== ============ (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 06/30/10. (D) Defaulted security; interest not accrued. (E) Illiquid securities. As of June 30, 2010, the value of these securities amounted to $191,058,029 or 84.45% of net assets. ^ Effective yield at purchase PIK - Payment-in-kind - --------------------------------------------------------------------------------------------------------------------------------- 32
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
Fair Value/ Fair Value/ Industry Classification Market Value Industry Classification Market Value - ------------------------------------------------------------ ------------------------------------------------------------ AEROSPACE - 3.94% BROADCASTING & ENTERTAINMENT - 2.45% A E Company, Inc. $ 3,168,184 CKX, Inc. $ 486,525 Dae Aviation Holdings, Inc. 198,000 Clear Channel Worldwide Holdings, Inc. 753,750 Gencorp, Inc. 261,914 Geoeye, Inc. 765,000 P A S Holdco LLC 3,803,970 Gray Television, Inc. 490,000 Visioneering, Inc. 1,489,470 Lamar Media Corporation 200,850 ------------ Liberty Media Corporation 1,022,500 8,921,538 LIN Television Corporation 190,000 ------------ Nexstar Broadcasting Group, Inc. 176,750 AUTOMOBILE - 5.50% Sinclair Television Group, Inc. 429,250 American Axle & Manufacturing Holding, Inc. 650,625 Univision Communications, Inc. 214,500 Exide Corporation 434,300 Workplace Media Holding Co. 811,437 Goodyear Tire & Rubber Co. 108,750 ------------ Jason, Inc. 48,184 5,540,562 Nyloncraft, Inc. 1,021,875 ------------ Ontario Drive & Gear Ltd. 609,327 BUILDINGS & REAL ESTATE - 1.12% Qualis Automotive LLC 2,886,238 K W P I Holdings Corporation 2,350,726 Tenneco, Inc. 1,105,500 Owens Corning, Inc. 63,663 Titan International, Inc. 1,112,800 Texas Industries, Inc. 67,725 Transtar Holding Company 3,388,629 TruStile Doors, Inc. 51,863 United Components, Inc. 1,085,400 ------------ ------------ 2,533,977 12,451,628 ------------ ------------ CHEMICAL, PLASTICS & RUBBER - 0.65% BEVERAGE, DRUG & FOOD - 6.85% Capital Specialty Plastics, Inc. 1,126,577 Eatem Holding Company 3,014,553 Hexion Finance Escrow LLC 338,438 Golden County Foods Holding, Inc. 2,284,126 ------------ Hospitality Mints Holding Company 2,076,787 1,465,015 Landry's Restaurants, Inc. 167,181 ------------ L H D Europe Holding, Inc. 24,225 Michael Foods, Inc. 77,063 Spartan Foods Holding Company 1,940,320 Specialty Commodities, Inc. 2,715,337 Waggin' Train Holdings LLC 3,189,737 ------------ 15,489,329 ------------ - ---------------------------------------------------------------------------------------------------------------------------------- 33
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
Fair Value/ Fair Value/ Industry Classification Market Value Industry Classification Market Value - ------------------------------------------------------------ ------------------------------------------------------------ CONSUMER PRODUCTS - 10.29% DIVERSIFIED/CONGLOMERATE, MANUFACTURING - 8.99% Aero Holdings, Inc. $ 2,928,238 A H C Holding Company, Inc. $ 2,870,960 Bravo Sports Holding Corporation 2,493,009 Arrow Tru-Line Holdings, Inc. 1,611,581 Custom Engineered Wheels, Inc. 2,577,125 C D N T, Inc. 1,375,582 Eastman Kodak Co. 740,625 Great Lakes Dredge & Dock Corporation 990,000 Easton-Bell Sports, Inc. 331,200 Headwaters, Inc. 505,000 G F S I, Inc. 532,675 K P I Holdings, Inc. 1,790,544 JohnsonDiversey, Inc. 102,750 MEGTEC Holdings, Inc. 2,052,966 K N B Holdings Corporation 2,259,666 Milwaukee Gear Company 2,118,461 Kar Holdings, Inc. 50,250 Nortek, Inc. 190,599 Manhattan Beachwear Holding Company 3,018,221 Polypore, Inc. 1,002,500 Momentum Holding Co. 497,958 O E C Holdings Corporation 1,497,219 R A J Manufacturing Holdings LLC 2,442,844 Postle Aluminum Company LLC 1,601,424 Reddy Ice Corporation 144,750 Thermadyne Holdings Corporation 116,438 Royal Baths Manufacturing Company 1,173,334 Trimas Corporation 75,750 The Tranzonic Companies 3,984,517 Truck Bodies & Equipment International 1,385,725 Walls Industries, Inc. -- Xaloy Superior Holdings, Inc. 1,161,422 ------------ ------------ 23,277,162 20,346,171 ------------ ------------ CONTAINERS, PACKAGING & GLASS - 4.92% DIVERSIFIED/CONGLOMERATE, SERVICE - 12.08% Berry Plastics Corporation 1,195,625 A S C Group, Inc. 2,591,203 Chase Packaging Corporation 477 A W X Holdings Corporation 1,340,039 Flutes, Inc. 229,596 ACCO Brands Corporation 108,500 Maverick Acquisition Company 578,460 Advanced Technologies Holdings 2,628,141 P I I Holding Corporation 3,065,167 Affinia Group, Inc. 50,250 Packaging Dynamics Corporation of America 1,002,000 Apex Analytix Holding Corporation 2,461,712 Paradigm Packaging, Inc. 2,398,489 Clough, Harbour, and Associates 2,785,320 Pregis Corporation 988,750 Crane Rental Corporation 2,353,804 Tekni-Plex, Inc. 509,438 Diversco, Inc./DHI Holdings, Inc. 2,970,629 Vitex Packaging Group, Inc. 1,160,985 Dwyer Group, Inc. 1,549,834 ------------ Insurance Claims Management, Inc. 287,161 11,128,987 Interline Brands, Inc. 1,001,250 ------------ Mail Communications Group, Inc. 1,354,393 DISTRIBUTION - 1.74% Nesco Holdings Corporation 2,770,950 Duncan Systems, Inc. 1,477,194 Northwest Mailing Services, Inc. 2,605,061 F C X Holdings Corporation 2,468,868 Pearlman Enterprises, Inc. -- ------------ Sabre Holdings Corporation 477,500 3,946,062 ------------ ------------ 27,335,747 ------------ - ---------------------------------------------------------------------------------------------------------------------------------- 34
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
Fair Value/ Fair Value/ Industry Classification Market Value Industry Classification Market Value - ------------------------------------------------------------ ------------------------------------------------------------ ELECTRONICS - 0.64% HOME & OFFICE FURNISHINGS, HOUSEWARES & Connecticut Electric, Inc. $ 873,857 DURABLE CONSUMER PRODUCTS - 8.68% Directed Electronics, Inc. 195,337 Connor Sport Court International, Inc. $ 2,614,058 Sanmina-SCI Corporation 369,375 H M Holding Company 513,825 ------------ Home Decor Holding Company 2,411,706 1,438,569 Justrite Manufacturing Acquisition Co. 1,795,925 ------------ K H O F Holdings, Inc. 270,607 FINANCIAL SERVICES - 2.56% Libbey Glass, Inc. 130,000 American General Finance Corporation 292,500 Monessen Holding Corporation 1,671,395 C I T Group, Inc. 382,838 Quiksilver, Inc. 286,256 Cemex Finance LLC 361,828 Spectrum Brands, Inc. 129,686 Citigroup Funding, Inc. 2,499,861 Stanton Carpet Holding Co. 2,191,119 Ford Motor Credit Co. 580,625 Transpac Holding Company 1,684,356 General Motors Acceptance Corporation, Inc. 111,151 U M A Enterprises, Inc. 2,182,867 Hawker Beechcraft Acquisition Co. 617,500 U-Line Corporation 2,076,702 Highgate Capital LLC -- Wellborn Forest Holding Co. 1,679,723 International Lease Finance Corporation 824,525 ------------ L B I Escrow Corporation 130,313 19,638,225 ------------ ------------ 5,801,141 LEISURE, AMUSEMENT & ENTERTAINMENT - 3.08% ------------ A M C Entertainment, Inc. 1,050,000 HEALTHCARE, EDUCATION & CHILDCARE - 4.44% Bally Total Fitness Holding Corporation -- American Hospice Management Boyd Gaming Corporation 707,000 Holding LLC 4,041,424 Harrah's Operating Escrow LLC 342,063 F H S Holdings LLC -- Savage Sports Holding, Inc. 2,875,296 National Mentor Holdings, Inc. 374,063 Seneca Gaming Corporation 488,750 Synteract Holdings Corporation 2,618,179 Ticketmaster Entertainment, Inc. 538,750 Touchstone Health Partnership -- Tunica-Biloxi Gaming Authority 962,125 Wheaton Holding Corporation 3,000,032 ------------ ------------ 6,963,984 10,033,698 ------------ ------------ - ---------------------------------------------------------------------------------------------------------------------------------- 35
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
Fair Value/ Fair Value/ Industry Classification Market Value Industry Classification Market Value - ------------------------------------------------------------ ------------------------------------------------------------ MACHINERY - 9.29% NATURAL RESOURCES - 1.53% A S A P Industries LLC $ 1,198,931 Appleton Papers, Inc. $ 249,975 Davis-Standard LLC 2,347,977 Cenveo Corporation 1,349,750 E S P Holdco, Inc. 2,326,403 Georgia Culf Corporation 192,850 K-Tek Holdings Corporation 3,054,261 International Coal Group, Inc. 125,000 M V I Holding, Inc. 1,175,484 Intrepid Potash, Inc. 7,143 Manitowoc Company, Inc. 193,000 SandRidge Energy, Inc. 1,053,600 Navis Global 578,746 Verso Paper Holdings LLC 483,430 NetShape Technologies, Inc. 1,219,428 ------------ Pacific Consolidated Holdings LLC 1,237,206 3,461,748 Power Services Holding Company 2,338,352 ------------ R E I Delaware Holding, Inc. 2,551,485 OIL & GAS - 2.85% Safety Speed Cut Manufacturing Company, Inc. 274,395 Atlas Pipeline Partners 690,000 Stanadyne Corporation 910,000 Brigham Exploration Co. 1,005,000 Stewart & Stevenson LLC 1,333,150 Coffeyville Resources LLC 138,600 Supreme Industries, Inc. 270,251 Chaparral Energy, Inc. 920,000 ------------ International Offshore Services LLC 2,581,340 21,009,069 Total E & S, Inc. 1,108,008 ------------ ------------ MEDICAL DEVICES/BIOTECH - 3.91% 6,442,948 Coeur, Inc. 1,337,821 ------------ E X C Acquisition Corporation 61,082 PHARMACEUTICALS - 1.21% ETEX Corporation -- CorePharma LLC 2,737,630 MedSystems Holdings LLC 1,369,618 ------------ MicroGroup, Inc. 2,282,772 PUBLISHING/PRINTING - 1.05% OakRiver Technology, Inc. 1,117,517 Gannett Company, Inc. 132,188 Omnicare, Inc. 76,500 McClatchy Co. 279,125 Precision Wire Holding Company 2,604,283 Newark Group, Inc. 571,625 TherOX, Inc. -- Quebecor Media, Inc. 1,029,000 ------------ Sheridan Acquisition Corporation 370,781 8,849,593 ------------ ------------ 2,382,719 MINING, STEEL, IRON & NON-PRECIOUS ------------ METALS - 1.36% RETAIL STORES - 0.92% T H I Acquisition, Inc. 2,040,000 Bon-Ton Stores, Inc. Teck Resources Ltd. 79,645 Great Atlantic & Pacific Tea Co. 29,138 Tube City IMS Corporation 967,500 Nebraska Book Company, Inc. 695,625 ------------ Olympic Sales, Inc. 199,361 3,087,145 Pinnacle Foods Finance LLC 76,500 ------------ Rental Service Corporation 745,313 Rite Aid Corporation 174,344 Rue21, Inc. 19,721 United Rentals, Inc. 134,063 ------------ 2,074,065 ------------ See Notes to Consolidated Financial Statements - ---------------------------------------------------------------------------------------------------------------------------------- 36
MassMutual Corporate Investors CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) JUNE 30, 2010 (Unaudited)
Fair Value/ Fair Value/ Industry Classification Market Value Industry Classification Market Value - ------------------------------------------------------------ ------------------------------------------------------------ TECHNOLOGY - 3.21% WASTE MANAGEMENT/POLLUTION - 1.47% Advanced Micro Devices, Inc. $ 744,375 Terra Renewal LLC $ 2,198,833 Compucom Systems, Inc. 1,401,488 Torrent Group Holdings, Inc. -- Magnachip Semiconductor 181,350 Waste Services, Inc. 1,127,500 NXP Funding LLC 628,125 ------------ Sencore Holding Company 1,531,035 3,326,333 Smart Source Holdings LLC 2,573,887 ------------ ViaSystems, Inc. 189,000 ------------ Total Investments - 110.49% $249,959,621 7,249,260 ============ ------------ TELECOMMUNICATIONS - 3.55% All Current Holding Company 1,261,555 Cricket Communications, Inc. 761,250 Intelsat Bermuda Ltd. 1,354,763 ITC^DeltaCom, Inc. 259,066 Level 3 Financing, Inc. 663,750 Sprint Capital Corporation 565,625 Sundance Investco LLC -- Telecorps Holdings, Inc. 3,017,681 West Corporation 152,625 ------------ 8,036,315 ------------ TRANSPORTATION - 0.63% Avis Budget Car Rental LLC 85,213 Hertz Corporation 778,125 NABCO, Inc. 312,500 RailAmerica, Inc. 251,400 ------------ 1,427,238 ------------ UTILITIES - 1.58% Crosstex Energy, L.P. 224,719 Dynegy Holdings, Inc. 573,738 El Paso Corporation 722,150 Energy Future Holdings 99,750 Markwest Energy Operating Co. 193,450 Wisconsin Electric Power 1,749,956 ------------ 3,563,763 ------------ See Notes to Consolidated Financial Statements - ---------------------------------------------------------------------------------------------------------------------------------- 37
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (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 and at the same time offering an opportunity for capital gains. The Trust's principal investments are privately placed, below-investment grade, long-term debt obligations with equity features such as common stock, 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 instruments 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. Below-investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay capital. On January 27, 1998, the Board of Trustees authorized the formation of a wholly-owned subsidiary of the Trust ("MMCI Subsidiary Trust") for the purpose of holding certain investments. The results of MMCI Subsidiary Trust are consolidated in the accompanying 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 its 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 its acquisition 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 a security held by the Trust; an estimate of the existence and the extent of a market for the security; the extent of any discount at which the security was acquired; the estimated period of time during which the security will not be freely marketable; the estimated expenses of registering or otherwise qualifying the security for public sale; estimated underwriting commissions if underwriting would be required to effect a sale; in the case of a convertible security, whether or not it would trade on the basis of its stock equivalent; in the case of a debt obligation which would trade independently of any equity equivalent, the current yields on comparable securities; the estimated amount of the floating supply of such securities available for purchase; the proportion of the issue held by the Trust; changes in the financial condition and prospects of the issuer; the existence of merger proposals or tender offers affecting the issuer; and any other factors affecting fair value, all in accordance with the Investment Company Act of 1940, as amended (the "1940 Act"). In making valuations, opinions of counsel may be relied upon as to whether or not securities are restricted securities and as to the legal requirements for public sale. When market quotations are readily available for unrestricted securities of an issuer, restricted securities of the same class are generally valued at a discount from the market price of such unrestricted securities. The Trustees, however, consider all factors in fixing any discount, including the filing of a registration statement for such securities under the 1933 Act and any other developments which are likely to increase the probability that the securities may be publicly sold by the Trust without restriction. The 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 - -------------------------------------------------------------------------------- 38 MassMutual Corporate Investors NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 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 $191,058,029 (84.45% of net assets) as of June 30, 2010 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, 2010, 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. In accordance with the authoritative guidance on fair value measurements and disclosures under accounting principles generally accepted in the United States of America ("U.S. GAAP"), the Trust discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows: Level 1 - quoted prices in active markets for identical securities Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 - significant unobservable inputs (including the Trust's own assumptions in determining the fair value of investments) The inputs and methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Trust's net assets as of June 30, 2010:
ASSETS: TOTAL LEVEL 1 LEVEL 2 LEVEL 3 ------------------------------------------------------------------------------------------------------------- Restricted Securities Bonds $175,587,665 $ -- $14,929,823 $160,657,842 Common Stock 14,857,100 -- -- 14,857,100 Preferred Stock 8,765,650 -- 111,151 8,654,499 Partnerships and LLCs 6,888,588 -- -- 6,888,588 Public Securities Bonds 37,642,781 -- 37,642,781 -- Common Stock 1,968,020 1,960,670 7,350 -- Preferred Stock -- -- -- -- Short-term Securities 4,249,817 -- 4,249,817 -- ------------------------------------------------------------------------------------------------------------- TOTAL $249,959,621 $1,960,670 $56,940,922 $191,058,029
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
UNREALIZED TOTAL GAINS PURCHASES, GAINS & LOSSES BEGINNING OR LOSSES SALES, ISSUANCES TRANSFERS ENDING IN NET INCOME BALANCE (REALIZED/ & SETTLEMENTS IN AND/OR BALANCE AT FROM ASSETS ASSETS: AT 12/31/2009 UNREALIZED) (NET) OUT OF LEVEL 3 06/30/2010 STILL HELD ------------------------------------------------------------------------------------------------------------------------------ Restricted Securities Bonds $152,772,751 $2,190,029 $5,695,062 $ -- $160,657,842 $ 410,289 Common Stock 14,693,318 761,936 (598,154) -- 14,857,100 378,804 Preferred Stock 6,638,626 1,889,830 126,043 -- 8,654,499 1,475,779 Partnerships and LLCs 6,678,496 169,204 40,888 -- 6,888,588 169,204 Public Securities Bonds 10 (8) (2) -- -- -- ------------------------------------------------------------------------------------------------------------------------------ $180,783,201 $5,010,991 $5,263,837 $ -- $191,058,029 $2,434,076
- -------------------------------------------------------------------------------- 39 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 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 that the Trustees either designate the net realized long-term gains as undistributed and pay the Federal capital gains taxes thereon or 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, 2010, the MMCI Subsidiary Trust has accrued income tax expense of $1,308. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective tax basis. As of June 30, 2010, the MMCI subsidiary Trust has a deferred tax liability of $145,855. Beginning with the 2009 annual financial statements, the Trust recognizes a tax benefit from an uncertain position only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority's widely understood administrative practices and precedents. If this threshold is met, the Trust measures the tax benefit as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Trust has evaluated and determined that the tax positions did not have a material effect on the Trust's financial position and results of operations for the six months ended June 30, 2010. 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 agreement, 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, 2010, there were no credit balances used to reduce custodian fees. 3. INVESTMENT SERVICES CONTRACT A. SERVICES: Under an Investment Services Contract (the "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 Contract, Babson Capital also 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. - -------------------------------------------------------------------------------- 40 MassMutual Corporate Investors NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) B. FEE: For its services under the Contract, Babson Capital is paid a quarterly investment advisory fee of 0.3125% of the net asset value of the Trust as of the last business day of each fiscal quarter, which is approximately equal to 1.25% annually. A majority of the Trustees, including a majority of the Trustees who are not interested persons of the Trust or of Babson Capital, approve the valuation of the Trust's net assets as of such day. C. BASIS FOR BOARD RENEWAL OF CONTRACT:: At a meeting of the Board of Trustees held on April 16, 2010, 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 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 Contract. The Trustees also requested and received from Babson Capital extensive written and oral information regarding among other matters: the principal terms of the Contract; the reasons why Babson Capital was proposing the continuance of the 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 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 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, the Trustees considered, among other factors: (i) the scope of services required to be provided by Babson Capital under the 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 renewed 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 Contract. ADVISORY FEE/COST 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 Contract, Babson Capital noted that it was unaware of any registered closed-end investment companies that are directly 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 - -------------------------------------------------------------------------------- 41 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) Contract, the Trustees noted the advisory fee charged by Babson Capital to Tower Square Capital Partners, L.P., Tower Square Capital Partners II, L.P., and Tower Square Capital Partners III, L.P., each a private mezzanine debt fund also managed by Babson Capital, and that the fee the Trust charged compares favorably. 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. 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 Contract is reasonable. ECONOMIES OF SCALE Finally, 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, around the value of the Trust's current net assets. The Trustees concluded that the absence of breakpoints in the fee schedule under the Contract was currently acceptable given the Trust's current size and closed-end fund structure. 4. SENIOR SECURED INDEBTEDNESS MassMutual holds the Trust's $30,000,000 Senior Fixed Rate Convertible Note (the "Note") issued by the Trust on November 15, 2007. The Note is due November 15, 2017 and accrues interest at 5.28% 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, 2010, the Trust incurred total interest expense on the Note of $792,000. 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 a 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. 5. PURCHASES AND SALES OF INVESTMENTS FOR THE SIX MONTHS ENDED 06/30/2010 ---------- COST PROCEEDS OF FROM INVESTMENTS SALES OR ACQUIRED MATURITIES ----------- ----------- Corporate restricted securities $23,555,310 $15,706,359 Corporate public securities 12,815,071 11,708,219 The aggregate cost of investments is substantially the same for financial reporting and Federal income tax purposes as of June 30, 2010. The net unrealized depreciation of investments for financial reporting and Federal tax purposes as of June 30, 2010 is $32,656,522 and consists of $19,920,680 appreciation and $52,577,202 depreciation. Net unrealized depreciation of investments on the Statement of Assets and Liabilities reflects the balance net of a deferred tax accrual of $145,855 on net unrealized gains on the MMCI Subsidiary Trust. 6. QUARTERLY RESULTS OF INVESTMENT OPERATIONS MARCH 31, 2010 AMOUNT PER SHARE ---------- --------- Investment income $6,096,825 Net investment income 4,871,657 $0.52 Net realized and unrealized gain on investments (net of taxes) 850,850 0.09 JUNE 30, 2010 AMOUNT PER SHARE ---------- --------- Investment income $6,319,951 Net investment income 5,070,723 $0.54 Net realized and unrealized gain on investments (net of taxes) 4,922,366 0.52 - -------------------------------------------------------------------------------- 42 MassMutual Corporate Investors NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 7. RESULTS OF SHAREHOLDER MEETING The Annual Meeting of Shareholders was held on Friday, April 16, 2010. The Shareholders were asked to vote to re-elect as trustees Donald E. Benson, Donald Glickman, and Robert E. Joyal for three year terms. The Shareholders approved the proposals. The Trust's other Trustees, William J. Barrett, Michael H. Brown, Martin T. Hart, Corine T. Norgaard, Clifford M. Noreen, and Maleyne M. Syracuse continued to serve their respective terms following the April 16, 2010 Annual Shareholders Meeting. The results of the Shareholder voting are set forth below. % OF SHARES SHARES FOR WITHHELD TOTAL VOTED FOR Donald E. Benson 7,556,960 108,989 7,665,949 98.58% Donald Glickman 7,550,332 115,617 7,665,949 98.49% Robert E. Joyal 7,575,476 90,473 7,665,949 98.82% 8. BY-LAWS AMENDMENT On April 16, 2010, the Board of Trustees approved an amendment to the By-Laws of the Trust to include an advance notice provision that would require shareholders seeking to nominate Trustee candidates or bring business before an annual meeting to provide timely notice to the Trust, consistent with certain specified requirements, of their intent to do so. - -------------------------------------------------------------------------------- 43 This page is intentionally left blank MassMutual Corporate Investors MEMBERS OF THE BOARD OF TRUSTEES Donald Glickman Robert E. Joyal William J. Barrett Michael H. Brown* Donald E. Benson* Dr. Corine T. Norgaard* Clifford M. Noreen Martin T. Hart Maleyne M. Syracuse *Member of the Audit committee OFFICERS Clifford M. Noreen Chairman Michael L. Klofas President James M. Roy Vice President & Chief Financial Officer Patricia J. Walsh Vice President, Secretary & Chief Legal Officer Jill A. Fields Vice President Michael P. Hermsen Vice President Mary Wilson Kibbe Vice President Richard E. Spencer, II Vice President Daniel J. Florence Treasurer John T. Davitt, Jr. Comptroller Melissa M. LaGrant Chief Compliance Officer DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN MassMutual Corporate Investors offers a Dividend Reinvestment and Share Purchase Plan (the "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 investment 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 then 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 anyway, 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., Transfer Agent for MassMutual Corporate Investors' Dividend Reinvestment and Share Purchase Plan, P.O. Box 173673, Denver, CO 80217-3673. MASSMUTUAL CORPORATE INVESTORS CI5233 ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to 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 to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. There have been no changes in any of the Portfolio Managers identified in the Registrant's most recent annual report on Form N-CSR. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable for this filing. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable for this filing. ITEM 11. CONTROLS AND PROCEDURES. (a) The principal executive officer and principal financial officer of the Registrant evaluated the effectiveness of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as of a date within 90 days of the filing date of this report and based on that evaluation have concluded that such disclosure controls and procedures are effective to provide reasonable assurance that material information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the Registrant's second fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) ANY CODE OF ETHICS, OR AMENDMENTS THERETO, THAT IS THE SUBJECT OF DISCLOSURE REQUIRED BY ITEM 2, TO THE EXTENT THAT THE REGISTRANT INTENDS TO SATISFY THE ITEM 2 REQUIREMENTS THROUGH THE FILING OF AN EXHIBIT. None. (a)(2) A SEPARATE CERTIFICATION FOR EACH PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER OF THE REGISTRANT AS REQUIRED BY RULE 30a-2 UNDER THE ACT. Attached hereto as EX-99.31.1 Attached hereto as EX-99.31.2 (a)(3) ANY WRITTEN SOLICITATION TO PURCHASE SECURITIES UNDER RULE 23c-1 UNDER THE ACT (17 CFR 270.23c-1) SENT OR GIVEN DURING THE PERIOD COVERED BY THE REPORT BY OR ON BEHALF OF THE REGISTRANT TO 10 OR MORE PERSONS. Not applicable for this filing. (b) CERTIFICATIONS PURSUANT TO RULE 30a-2(b) UNDER THE ACT. Attached hereto as EX-99.32 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant): MassMutual Corporate Investors ---------------------------------- By: /s/ Michael L. Klofas ---------------------------------- Michael L. Klofas, President ---------------------------------- Date: September 8, 2010 ---------------------------------- 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/ Michael L. Klofas ---------------------------------- Michael L. Klofas, President ---------------------------------- Date: September 8, 2010 ---------------------------------- By: /s/ James M. Roy ---------------------------------- James M. Roy, Vice President and Chief Financial Officer ---------------------------------- Date: September 8, 2010 ------------------------------ EX-99.CERT 2 exh99-311_16879.txt EXECUTIVE OFFICER CERTIFICATION EXHIBIT-99.31.1 --------------- CERTIFICATION ------------- ITEM 12(a)(2) PRINCIPAL EXECUTIVE OFFICER CERTIFICATION I, Michael L. Klofas, certify that: 1. I have reviewed this report on Form N-CSR of MassMutual Corporate Investors; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 8, 2010 /s/ Michael L. Klofas - -------------------------------- Michael L. Klofas President MassMutual Corporate Investors EXHIBIT-99.31.2 --------------- CERTIFICATION ------------- ITEM 12(a)(2) PRINCIPAL FINANCIAL OFFICER CERTIFICATION I, James M. Roy, certify that: 1. I have reviewed this report on Form N-CSR of MassMutual Corporate Investors; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 8, 2010 /s/ James M. Roy - -------------------------------- James M. Roy Vice President and Chief Financial Officer MassMutual Corporate Investors EX-99.906 CERT 3 exh99-32_16879.txt EXECUTIVE OFFICER CERTIFICATION EXHIBIT-99.32 ------------- ITEM 12(b) To my knowledge, this periodic report containing the financial statements fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the issuer. /s/ Michael L. Klofas - -------------------------------- Michael L. Klofas President MassMutual Corporate Investors /s/ James M. Roy - -------------------------------- James M. Roy Vice President and Chief Financial Officer MassMutual Corporate Investors September 8, 2010 -----END PRIVACY-ENHANCED MESSAGE-----