-----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, DGvBBoz9k13s4XE/yDs/y1mG3GWVGnymHiSFFtaghJwwx4uxVi3SHqa7iYROuyCO D+qkh0iZYSRgEemIZZbmvw== 0000950124-07-005448.txt : 20071030 0000950124-07-005448.hdr.sgml : 20071030 20071030134022 ACCESSION NUMBER: 0000950124-07-005448 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070831 FILED AS OF DATE: 20071030 DATE AS OF CHANGE: 20071030 EFFECTIVENESS DATE: 20071030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVERSOURCE HIGH YIELD INCOME SERIES, INC. CENTRAL INDEX KEY: 0000728374 IRS NUMBER: 411458705 STATE OF INCORPORATION: MN FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-03848 FILM NUMBER: 071198830 BUSINESS ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5228 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 6126714321 MAIL ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5228 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: AXP HIGH YIELD INCOME SERIES INC DATE OF NAME CHANGE: 20021118 FORMER COMPANY: FORMER CONFORMED NAME: AXP EXTRA INCOME FUND INC/MN DATE OF NAME CHANGE: 20000825 FORMER COMPANY: FORMER CONFORMED NAME: IDS EXTRA INCOME FUND INC DATE OF NAME CHANGE: 19920703 0000728374 S000003310 RiverSource High Yield Bond Fund C000008855 RiverSource High Yield Bond Fund Class I RSHIX C000008857 RiverSource High Yield Bond Fund Class A INEAX C000008858 RiverSource High Yield Bond Fund Class B IEIBX C000008859 RiverSource High Yield Bond Fund Class C APECX C000042972 RiverSource High Yield Bond Fund Class R2 C000042973 RiverSource High Yield Bond Fund Class R3 C000042974 RiverSource High Yield Bond Fund Class R4 RSHYX C000042975 RiverSource High Yield Bond Fund Class R5 C000042976 RiverSource High Yield Bond Fund Class W RHYWX N-Q 1 c18863nvq.txt QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number 811-3848 RIVERSOURCE HIGH YIELD INCOME SERIES, INC. (Exact name of registrant as specified in charter) 50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474 (Address of principal executive offices) (Zip code)
Scott R. Plummer - 5228 Ameriprise Financial Center, Minneapolis, MN 55474 (Name and address of agent for service) Registrant's telephone number, including area code: (612) 671-1947 Date of fiscal year end: 05/31 Date of reporting period: 08/31 PORTFOLIO HOLDINGS FOR RIVERSOURCE HIGH YIELD BOND FUND AT AUG. 31, 2007 INVESTMENTS IN SECURITIES AUG. 31, 2007 (UNAUDITED) (Percentages represent value of investments compared to net assets)
BONDS (82.6%) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MORTGAGE-BACKED (0.5%) Countrywide Alternative Loan Trust Collateralized Mtge Obligation Series 2007-OH3 Cl A3 09-25-47 6.01% $9,979,869(i,o) $9,148,606 - -------------------------------------------------------------------------------------- AEROSPACE & DEFENSE (3.0%) Alion Science and Technology 02-01-15 10.25 9,605,000 9,172,775 Communications & Power Inds 02-01-12 8.00 11,210,000 11,266,050 CPI Intl Sr Unsecured 02-01-15 11.06 4,521,000(i) 4,656,630 DRS Technologies 11-01-13 6.88 4,295,000 4,209,100 02-01-16 6.63 2,315,000 2,257,125 02-01-18 7.63 4,020,000 3,939,600 L-3 Communications 06-15-12 7.63 6,955,000 7,059,325 07-15-13 6.13 1,035,000 1,001,363 L-3 Communications Series B 10-15-15 6.38 10,100,000 9,771,750 --------------- Total 53,333,718 - -------------------------------------------------------------------------------------- AUTOMOTIVE (1.0%) Ford Motor Credit LLC Sr Nts 08-10-11 9.88 5,908,000 5,820,621 GMAC 04-15-16 7.70 13,540,000 11,441,300 --------------- Total 17,261,921 - -------------------------------------------------------------------------------------- BROKERAGE (0.5%) LaBranche & Co Sr Nts 05-15-12 11.00 9,254,000 9,161,460 - -------------------------------------------------------------------------------------- BUILDING MATERIALS (1.3%) Gibraltar Inds Series B 12-01-15 8.00 8,942,000 8,427,835 Interline Brands Sr Sub Nts 06-15-14 8.13 3,119,000 3,056,620
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE (A) BUILDING MATERIALS (CONT.) Norcraft Companies LP/Finance 11-01-11 9.00% $3,778,000 $3,778,000 Norcraft Holdings LP/Capital Sr Disc Nts (Zero coupon through 09-01-08, thereafter 9.75%) 09-01-12 8.17 8,620,000(l) 7,628,700 --------------- Total 22,891,155 - -------------------------------------------------------------------------------------- CHEMICALS (5.7%) Chemtura 06-01-16 6.88 14,465,000 13,199,313 Georgia Gulf 12-15-13 7.13 7,977,000 7,179,300 10-15-16 10.75 11,243,000 10,062,485 Hexion US Finance/Nova Scotia Finance 11-15-14 9.75 7,881,000 8,511,480 INVISTA 05-01-12 9.25 18,351,000(d) 19,291,488 MacDermid Sr Sub Nts 04-15-17 9.50 17,960,000(d) 16,657,899 Momentive Performance Materials 12-01-16 11.50 2,255,000(d) 2,153,525 Momentive Performance Materials Pay-in-kind 12-01-14 10.13 12,400,000(d,m) 11,532,000 NALCO Sr Sub Nts 11-15-13 8.88 6,155,000 6,293,488 NALCO Sr Unsecured 11-15-11 7.75 3,980,000 4,049,650 NewMarket 12-15-16 7.13 3,156,000 2,998,200 --------------- Total 101,928,828 - --------------------------------------------------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE (A) CONSTRUCTION MACHINERY (0.9%) Chart Inds Sr Sub Nts 10-15-15 9.13% $9,185,000 $9,506,475 United Rentals North America Sr Sub Nts 02-15-14 7.00 5,905,000 6,023,100 --------------- Total 15,529,575 - -------------------------------------------------------------------------------------- CONSUMER PRODUCTS (3.1%) AAC Group Holding Sr Disc Nts (Zero coupon through 10-01-08, thereafter 10.25%) 10-01-12 10.07 7,165,000(l) 6,161,900 AAC Group Holding Sr Unsecured Pay-in-kind 10-01-12 14.75 1,316,270(m) 1,319,561 Jarden 05-01-17 7.50 13,635,000 12,748,725 Sealy Mattress 06-15-14 8.25 6,152,000 6,013,580 Visant Holding Sr Disc Nts (Zero coupon through 12-01-08, thereafter 10.25%) 12-01-13 9.70 5,815,000(l) 5,320,725 Visant Holding Sr Nts 12-01-13 8.75 8,725,000 8,725,000 Vitro Sr Unsecured 02-01-17 9.13 14,865,000(c,d) 14,381,887 --------------- Total 54,671,378 - -------------------------------------------------------------------------------------- DIVERSIFIED MANUFACTURING (0.6%) ALH Finance LLC 01-15-13 8.50 2,246,000 2,189,850 Baldor Electric 02-15-17 8.63 5,000,000 5,162,500 RBS Global & Rexnord 08-01-14 9.50 3,191,000 3,222,910 --------------- Total 10,575,260 - --------------------------------------------------------------------------------------
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 1 RIVERSOURCE HIGH YIELD BOND FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007 RiverSource High Yield Bond Fund
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) ELECTRIC (3.9%) Dynegy Holdings Sr Unsecured 05-01-16 8.38% $7,610,000 $7,476,825 05-15-18 7.13 8,125,000 7,231,250 Edison Mission Energy Sr Nts 05-15-17 7.00 7,615,000(d) 7,234,250 Edison Mission Energy Sr Unsecured 06-15-16 7.75 2,887,000 2,908,653 Midwest Generation LLC Pass-Through Ctfs Series B 01-02-16 8.56 5,858,628 6,232,115 Mirant Americas Generation LLC Sr Unsecured 05-01-11 8.30 6,935,000 6,848,313 Mirant North America LLC 12-31-13 7.38 7,905,000 7,865,475 NRG Energy 02-01-14 7.25 5,441,000 5,386,590 01-15-17 7.38 9,550,000 9,382,874 Reliant Energy 12-15-14 6.75 1,660,000 1,643,400 Reliant Energy Sr Nts 06-15-17 7.88 6,900,000 6,762,000 --------------- Total 68,971,745 - -------------------------------------------------------------------------------------- ENTERTAINMENT (1.0%) AMC Entertainment 02-01-16 11.00 7,298,000 7,589,920 United Artists Theatre Circuit Pass-Through Ctfs Series BB5 07-01-15 9.30 6,975,934(k) 7,254,971 United Artists Theatre Circuit Pass-Through Ctfs Series BC3 07-01-15 9.30 2,242,764(k) 2,332,474 --------------- Total 17,177,365 - -------------------------------------------------------------------------------------- ENVIRONMENTAL (0.9%) Allied Waste North America Series B 04-15-14 7.38 965,000 940,875 05-15-16 7.13 4,255,000 4,233,725 Clean Harbors 07-15-12 11.25 5,435,000 5,924,150 WCA Waste 06-15-14 9.25 5,510,000 5,537,550 --------------- Total 16,636,300 - -------------------------------------------------------------------------------------- FOOD AND BEVERAGE (4.3%) Aramark 02-01-15 8.86 2,800,000(i) 2,786,000 Aramark Sr Nts 02-01-15 8.50 6,850,000 6,824,313 ASG Consolidated LLC/Finance Sr Disc Nts (Zero coupon through 11-01-08, thereafter 11.50%) 11-01-11 11.35 19,195,000(l) 17,659,400
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) FOOD AND BEVERAGE (CONT.) Constellation Brands 09-01-16 7.25% $6,305,000 $6,115,850 Constellation Brands Sr Nts 05-15-17 7.25 6,195,000(d) 6,009,150 Cott Beverages USA 12-15-11 8.00 17,225,000 17,052,750 Del Monte 02-15-15 6.75 1,010,000 959,500 Pinnacle Foods Finance LLC Sr Sub Nts 04-01-17 10.63 15,300,000(d) 13,923,000 Smithfield Foods Sr Unsecured 07-01-17 7.75 5,418,000 5,445,090 --------------- Total 76,775,053 - -------------------------------------------------------------------------------------- GAMING (6.0%) Buffalo Thunder Development Authority Secured 12-15-14 9.38 6,302,000(d) 5,955,390 Circus & Eldorado Jt Venture/Silver Legacy Capital 1st Mtge 03-01-12 10.13 6,190,000 6,468,550 Fontainebleau Las Vegas Holdings LLC/Capital 2nd Mtge 06-15-15 10.25 15,260,000(d) 13,085,449 Harrah's Operating 06-01-16 6.50 7,342,000 5,781,825 10-01-17 5.75 9,910,000 7,432,500 Majestic Star Casino LLC/Capital 10-15-10 9.50 10,223,000 10,018,540 MGM Mirage 06-01-16 7.50 9,900,000 9,776,250 Pokagon Gaming Authority Sr Nts 06-15-14 10.38 10,250,000(d) 10,967,500 Shingle Springs Tribal Gaming Authority Sr Nts 06-15-15 9.38 8,790,000(d) 8,680,125 Station Casinos Sr Sub Nts 02-01-14 6.50 6,075,000 5,148,563 03-01-16 6.88 3,902,000 3,267,925 03-15-18 6.63 1,845,000 1,485,225 Tunica-Biloxi Gaming Authority Sr Unsecured 11-15-15 9.00 11,245,000(d) 11,188,775 Wheeling Island Gaming 12-15-09 10.13 1,210,000 1,197,900 Wynn Las Vegas LLC/Capital 1st Mtge 12-01-14 6.63 6,914,000 6,689,295 --------------- Total 107,143,812 - -------------------------------------------------------------------------------------- GAS PIPELINES (1.9%) Southern Star Central Sr Nts 03-01-16 6.75 7,040,000 6,758,400
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) GAS PIPELINES (CONT.) Williams Companies Sr Nts 07-15-19 7.63% $20,515,000 $21,797,188 Williams Partners LP/Finance 02-01-17 7.25 5,835,000 5,776,650 --------------- Total 34,332,238 - -------------------------------------------------------------------------------------- HEALTH CARE (6.8%) Community Health Systems Sr Nts 07-15-15 8.88 11,842,000(d) 11,827,198 DaVita 03-15-13 6.63 9,346,000 9,042,255 03-15-15 7.25 7,525,000 7,374,500 HCA Secured 11-15-16 9.25 5,956,000(d) 6,119,790 HCA Sr Unsecured 02-15-16 6.50 13,190,000 10,716,875 IASIS Healthcare LLC/Capital Bank Guaranteed 06-15-14 8.75 7,209,000 7,028,775 MedCath Holdings 07-15-12 9.88 13,576,000 14,254,799 NMH Holdings Sr Unsecured Pay-in-kind 06-15-14 12.49 5,170,000(d,m) 4,808,100 Omnicare 12-15-13 6.75 9,065,000 8,430,450 12-15-15 6.88 4,438,000 4,138,435 Omnicare Sr Sub Nts 06-01-13 6.13 6,655,000 6,139,238 Select Medical 02-01-15 7.63 2,883,000 2,501,003 Select Medical Sr Unsecured 09-15-15 11.08 20,414,000(i) 17,760,179 United Surgical Partners Intl Sr Sub Nts Pay-in-kind 05-01-17 9.25 2,360,000(d,g,m) 2,242,000 Vanguard Health Holding I LLC Sr Disc Nts (Zero coupon through 10-01-09, thereafter 11.25%) 10-01-15 9.61 4,850,000(l) 3,516,250 Vanguard Health Holding II LLC Sr Sub Nts 10-01-14 9.00 5,707,000 5,336,045 --------------- Total 121,235,892 - -------------------------------------------------------------------------------------- HOME CONSTRUCTION (1.8%) K Hovnanian Enterprises 04-01-12 8.88 9,510,000 7,608,000 05-15-13 7.75 1,555,000 1,139,038 05-15-16 7.50 9,855,000 7,588,350 Standard Pacific Sr Nts 03-15-13 7.75 1,665,000 1,265,400
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 2 RIVERSOURCE HIGH YIELD BOND FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007 RiverSource High Yield Bond Fund
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) HOME CONSTRUCTION (CONT.) Standard Pacific Sr Sub Nts 04-15-12 9.25% $4,545,000 $3,295,125 Standard Pacific Sr Unsecured 10-01-08 6.50 2,625,000 2,401,875 William Lyon Homes 02-15-14 7.50 12,380,000 8,913,600 --------------- Total 32,211,388 - -------------------------------------------------------------------------------------- INDEPENDENT ENERGY (4.8%) Chaparral Energy 12-01-15 8.50 2,122,000 1,899,190 Chaparral Energy Sr Nts 02-01-17 8.88 11,465,000(d) 10,318,500 Chesapeake Energy 08-15-14 7.00 6,722,000 6,688,390 01-15-16 6.63 6,892,000 6,668,010 01-15-18 6.25 2,520,000 2,359,350 Compton Petroleum Finance 12-01-13 7.63 9,826,000(c) 9,334,700 Denbury Resources Sr Sub Nts 12-15-15 7.50 6,465,000 6,432,675 EXCO Resources Secured 01-15-11 7.25 12,662,000 12,756,965 Forest Oil Sr Nts 06-15-19 7.25 7,375,000(d) 7,098,438 Hilcorp Energy I LP/Finance Sr Unsecured 11-01-15 7.75 7,390,000(d) 7,075,925 KCS Energy 04-01-12 7.13 6,645,000 6,379,200 PetroHawk Energy 07-15-13 9.13 5,980,000 6,234,150 Range Resources 05-15-16 7.50 3,250,000 3,282,500 --------------- Total 86,527,993 - -------------------------------------------------------------------------------------- MEDIA CABLE (4.9%) Charter Communications Holdings I LLC/Capital Secured 10-01-15 11.00 5,525,000 5,414,500 Charter Communications Holdings II LLC/Capital 10-01-13 10.25 4,200,000 4,242,000 Charter Communications Holdings II LLC/Capital Sr Unsecured Series B 09-15-10 10.25 9,425,000 9,448,563 CSC Holdings Sr Unsecured 04-15-12 6.75 4,551,000 4,300,695 DIRECTV Holdings LLC/Finance 06-15-15 6.38 11,360,000 10,621,600 EchoStar DBS 02-01-16 7.13 16,494,000 16,122,884
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MEDIA CABLE (CONT.) Quebecor Media Sr Nts 03-15-16 7.75% $7,420,000(c) $7,058,275 Univision Communications Sr Nts Pay-in-kind 03-15-15 9.75 13,753,000(d,m) 13,099,732 Videotron Ltee 01-15-14 6.88 9,629,000(c) 9,171,623 Virgin Media Finance 04-15-14 8.75 5,770,000(c) 5,842,125 08-15-16 9.13 2,595,000(c) 2,624,194 --------------- Total 87,946,191 - -------------------------------------------------------------------------------------- MEDIA NON CABLE (7.0%) Clear Channel Communications Sr Unsub 12-15-16 5.50 14,855,000 11,141,250 Idearc 11-15-16 8.00 5,473,000 5,404,588 Intelsat Bermuda 06-15-16 9.25 3,635,000(c) 3,744,050 Intelsat Bermuda Sr Unsecured 06-15-13 11.41 5,540,000(c,i) 5,692,350 Lamar Media 01-01-13 7.25 1,491,000 1,483,545 Lamar Media Series B 08-15-15 6.63 6,030,000 5,758,650 Lamar Media Sr Unsecured 08-15-15 6.63 5,332,000 5,092,060 LBI Media Sr Sub Nts 08-01-17 8.50 12,815,000(d) 12,622,774 Liberty Media LLC Sr Nts 05-15-13 5.70 11,026,000 10,193,636 Liberty Media LLC Sr Unsecured 02-01-30 8.25 9,248,000 8,970,560 Radio One 02-15-13 6.38 10,930,000 9,536,425 Rainbow Natl Services LLC Sr Nts 09-01-12 8.75 12,485,000(d) 12,781,518 Rainbow Natl Services LLC Sr Sub Deb 09-01-14 10.38 4,003,000(d) 4,358,266 RH Donnelley Sr Disc Nts Series A-1 01-15-13 6.88 2,420,000 2,280,850 RH Donnelley Sr Disc Nts Series A-2 01-15-13 6.88 8,167,000 7,697,398 RH Donnelley Sr Unsecured 01-15-13 6.88 12,215,000 11,512,637
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) MEDIA NON CABLE (CONT.) Sun Media 02-15-13 7.63% $5,321,000(c) $5,201,278 --------------- Total 123,471,835 - -------------------------------------------------------------------------------------- METALS (1.1%) Freeport-McMoRan Copper & Gold Sr Unsecured 04-01-15 8.25 8,965,000 9,502,900 04-01-17 8.38 1,350,000 1,437,750 Noranda Aluminium Acquisition Sr Unsecured Pay-in-kind 05-15-15 9.36 5,000,000(d,i,m) 4,700,000 Peabody Energy 11-01-16 7.38 3,500,000 3,526,250 --------------- Total 19,166,900 - -------------------------------------------------------------------------------------- OIL FIELD SERVICES (1.0%) OPTI Canada 12-15-14 8.25 4,815,000(c,d) 4,887,225 OPTI Canada Secured 12-15-14 7.88 4,665,000(c,d) 4,688,325 Quicksilver Resources 04-01-16 7.13 8,850,000 8,451,750 --------------- Total 18,027,300 - -------------------------------------------------------------------------------------- OTHER FINANCIAL INSTITUTIONS (2.0%) Cardtronics 08-15-13 9.25 15,966,000 15,167,700 Cardtronics Sr Sub Nts 08-15-13 9.25 6,715,000(d) 6,379,250 Triad Acquisition Sr Unsecured Series B 05-01-13 11.13 17,150,000 14,663,250 --------------- Total 36,210,200 - -------------------------------------------------------------------------------------- OTHER INDUSTRY (0.5%) Rental Service 12-01-14 9.50 9,085,000(d) 8,891,944 - -------------------------------------------------------------------------------------- PACKAGING (1.2%) Crown Americas LLC/Capital 11-15-15 7.75 12,517,000 12,642,170 Owens-Brockway Glass Container 05-15-13 8.25 8,975,000 9,199,375 --------------- Total 21,841,545 - -------------------------------------------------------------------------------------- PAPER (4.1%) Abitibi-Consolidated Co of Canada 04-01-15 8.38 6,205,000(c) 4,870,925 Boise Cascade LLC 10-15-14 7.13 9,825,000 9,039,000 Cascades Sr Nts 02-15-13 7.25 5,890,000(c) 5,624,950 Georgia-Pacific 06-15-15 7.70 5,421,000 5,258,370 01-15-17 7.13 11,888,000(d) 11,174,720
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 3 RIVERSOURCE HIGH YIELD BOND FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007 RiverSource High Yield Bond Fund
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) PAPER (CONT.) Jefferson Smurfit US 06-01-13 7.50% $9,335,000 $8,868,250 NewPage 05-01-12 10.00 12,273,000 12,702,554 Norampac 06-01-13 6.75 7,045,000(c) 6,604,688 Smurfit-Stone Container Enterprises Sr Unsecured 03-15-17 8.00 9,770,000 9,318,138 --------------- Total 73,461,595 - -------------------------------------------------------------------------------------- PHARMACEUTICALS (0.6%) Warner Chilcott 02-01-15 8.75 10,902,000 10,874,745 - -------------------------------------------------------------------------------------- RAILROADS (0.2%) Kansas City Southern de Mexico Sr Nts 06-01-14 7.38 4,263,000(c,d) 4,097,809 - -------------------------------------------------------------------------------------- REITS (1.1%) Realogy Sr Sub Nts 04-15-15 12.38 26,820,000(d) 19,746,225 - -------------------------------------------------------------------------------------- RETAILERS (1.5%) Claire's Stores 06-01-17 10.50 18,745,000(d) 13,871,300 Michaels Stores Sr Sub Nts 11-01-16 11.38 7,119,000(d) 6,887,633 Toys "R" Us Sr Unsecured 04-15-13 7.88 7,509,000 6,345,105 --------------- Total 27,104,038 - -------------------------------------------------------------------------------------- TECHNOLOGY (2.3%) Freescale Semiconductor Sr Unsecured Pay-in-kind 12-15-14 9.13 10,827,000(m) 9,690,165 NXP Funding LLC Secured 10-15-13 8.11 5,606,000(c,i) 5,080,438 SS&C Technologies 12-01-13 11.75 3,789,000 3,997,395 Sungard Data Systems 08-15-15 10.25 13,320,000 13,719,600 West Corp 10-15-16 11.00 8,990,000 9,124,850 --------------- Total 41,612,448 - -------------------------------------------------------------------------------------- TRANSPORTATION SERVICES (0.8%) Avis Budget Car Rental LLC/Finance 05-15-16 7.75 5,015,000 4,864,550 Hertz 01-01-16 10.50 4,363,000 4,712,040 Quality Distribution LLC/Capital 01-15-12 9.86 4,239,000(i) 4,260,195 --------------- Total 13,836,785 - --------------------------------------------------------------------------------------
BONDS (CONTINUED) COUPON PRINCIPAL ISSUER RATE AMOUNT VALUE(A) WIRELESS (2.8%) American Tower Sr Nts 10-15-12 7.13% $13,405,000 $13,405,000 Centennial Communications Sr Nts 01-01-13 10.00 7,655,000 7,999,475 Cricket Communications 11-01-14 9.38 6,865,000 6,727,700 MetroPCS Wireless Sr Nts 11-01-14 9.25 10,855,000(d) 10,692,175 Nextel Communications Series D 08-01-15 7.38 10,855,000 10,927,403 --------------- Total 49,751,753 - -------------------------------------------------------------------------------------- WIRELINES (3.5%) Citizens Communications Sr Unsecured 03-15-19 7.13 5,475,000 5,214,938 GCI Sr Unsecured 02-15-14 7.25 9,632,000 8,909,600 Level 3 Financing 03-15-13 12.25 4,775,000 5,204,750 11-01-14 9.25 7,440,000 7,161,000 02-15-17 8.75 865,000 813,100 Qwest Sr Nts 06-15-15 7.63 8,140,000 8,384,200 Windstream 08-01-16 8.63 18,757,000 19,601,064 03-15-19 7.00 7,705,000 7,261,963 --------------- Total 62,550,615 - -------------------------------------------------------------------------------------- TOTAL BONDS (Cost: $1,519,885,867) $1,474,105,615 - --------------------------------------------------------------------------------------
SENIOR LOANS (11.3%)(h) COUPON PRINCIPAL BORROWER RATE AMOUNT VALUE(A) AUTOMOTIVE (0.4%) Ford Motor Tranche B Term Loan 12-15-13 8.36% $6,833,273 $6,399,770 - ----------------------------------------------------------------------------------- CHEMICALS (0.5%) Celanese Tranche B Term Loan 04-06-14 7.11 9,221,888(c) 8,906,776 - ----------------------------------------------------------------------------------- CONSUMER PRODUCTS (0.5%) Spectrum Brands Letter of Credit 04-04-13 5.17 236,589 230,083 Spectrum Brands Tranche B1 Term Loan 04-04-13 9.34-9.53 3,915,000(g) 3,792,656 04-04-13 9.34-9.53 4,786,201 4,636,632
SENIOR LOANS (CONTINUED) COUPON PRINCIPAL BORROWER RATE AMOUNT VALUE(A) CONSUMER PRODUCTS (CONT.) Spectrum Brands Tranche B2 Term Loan 04-04-13 9.57% $851,721 $800,618 --------------- Total 9,459,989 - ----------------------------------------------------------------------------------- ENTERTAINMENT (0.3%) AMC Entertainment Term Loan 06-13-12 10.36 5,255,000 5,044,800 - ----------------------------------------------------------------------------------- GAMING (1.3%) Fontainebleau Las Vegas Delayed Draw Term Loan 06-05-14 0.00 4,848,883(g,n) 4,497,339 Fontainebleau Las Vegas Term Loan 06-05-14 8.61 1,710,000(g) 1,586,025 06-05-14 8.61 7,987,765 7,408,652 Great Lakes Gaming of Michigan Term Loan 09-15-12 9.00 10,000,000(k) 9,800,000 --------------- Total 23,292,016 - ----------------------------------------------------------------------------------- HEALTH CARE (1.9%) HCA Tranche B Term Loan 01-21-13 7.61 15,094,150 14,506,837 IASIS Healthcare LLC Term Loan 06-15-14 10.61 18,754,440 17,254,086 --------------- Total 31,760,923 - ----------------------------------------------------------------------------------- INDEPENDENT ENERGY (0.5%) Sandridge Energy Term Loan 04-01-15 8.63 9,400,000 9,212,000 - ----------------------------------------------------------------------------------- LIFE INSURANCE (0.6%) Asurion 2nd Lien Term Loan 11.86- 07-02-15 12.17 11,625,000(g) 10,927,500 - ----------------------------------------------------------------------------------- MEDIA CABLE (0.9%) Charter Communications Term Loan 03-06-14 7.36 16,920,000 15,989,400 - ----------------------------------------------------------------------------------- MEDIA NON CABLE (1.2%) Intelsat Bermuda Term Loan 02-01-14 7.86 3,280,000(c) 3,184,683 VNU Tranche B Term Loan 08-09-13 7.36 19,805,612(c) 18,864,845 --------------- Total 22,049,528 - ----------------------------------------------------------------------------------- OIL FIELD SERVICES (0.8%) Dresser 2nd Lien Term Loan 05-04-15 11.13 7,645,000(g) 7,291,419 05-04-15 11.13 7,980,000 7,610,925 - -----------------------------------------------------------------------------------
See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 4 RIVERSOURCE HIGH YIELD BOND FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007 RiverSource High Yield Bond Fund
SENIOR LOANS (CONTINUED) COUPON PRINCIPAL BORROWER RATE AMOUNT VALUE(A) OTHER FINANCIAL INSTITUTIONS (0.5%) ACE Cash Express Tranche B Term Loan 10-05-13 8.32-8.39% $10,155,576 $9,647,797 - ----------------------------------------------------------------------------------- RETAILERS (0.1%) Michaels Stores Term Loan 10-31-13 7.63-7.69 2,308,701 2,172,095 - ----------------------------------------------------------------------------------- WIRELESS (0.3%) Trilogy Intl Partners Term Loan 06-29-12 8.86 4,940,000 4,754,750 - ----------------------------------------------------------------------------------- WIRELINES (1.5%) Level 3 Communications Tranche B Term Loan 03-13-14 7.61 9,760,000 9,288,299
SENIOR LOANS (CONTINUED) COUPON PRINCIPAL BORROWER RATE AMOUNT VALUE(A) WIRELINES (CONT.) Qwest Tranche B Term Loan 06-30-10 6.95% $18,045,000 $18,202,894 --------------- Total 27,491,193 - ----------------------------------------------------------------------------------- TOTAL SENIOR LOANS (Cost: $210,121,491) $202,010,881 - -----------------------------------------------------------------------------------
COMMON STOCKS (--%) ISSUER SHARES VALUE(A) Arena Brands 111,111(b,k) $68,889 Crown Paper Escrow 29,470,000(b) 29 Link Energy LLC Unit 1,646,684(b,j) 31,287 - ------------------------------------------------------------------------------------ TOTAL COMMON STOCKS (Cost: $18,965,223) $100,205 - ------------------------------------------------------------------------------------
OTHER (0.1%) ISSUER SHARES VALUE(A) Varde Fund V LP 25,000,000(e,k) $1,783,250 - ------------------------------------------------------------------------------------ TOTAL OTHER (Cost: $--) $1,783,250 - ------------------------------------------------------------------------------------
MONEY MARKET FUND (4.9%) SHARES VALUE(A) RiverSource Short-Term Cash Fund 86,682,194(f) $86,682,194 - ------------------------------------------------------------------------------------ TOTAL MONEY MARKET FUND (Cost: $86,682,194) $86,682,194 - ------------------------------------------------------------------------------------ TOTAL INVESTMENTS IN SECURITIES (Cost: $1,835,654,775)(p) $1,764,682,145 ====================================================================================
NOTES TO INVESTMENTS IN SECURITIES (a) Securities are valued by using procedures described in Note 1 to the financial statements in the most recent Annual Report dated May 31, 2007. (b) Non-income producing. For long-term debt securities, item identified is in default as to payment of interest and/or principal. (c) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollar currency unless otherwise noted. At Aug. 31, 2007, the value of foreign securities represented 7.3% of net assets. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Fund's Board of Directors. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At Aug. 31, 2007, the value of these securities amounted to $329,429,285 or 18.5% of net assets. (e) The share amount for Limited Liability Companies (LLC) or Limited Partnerships (LP) represents capital contributions. (f) Affiliated Money Market Fund - The Fund may invest its daily cash balance in RiverSource Short-Term Cash Fund, a money market fund established for the exclusive use of the RiverSource funds and other institutional clients of RiverSource Investments. (g) At Aug. 31, 2007, the cost of securities purchased, including interest purchased, on a when-issued and/or other forward-commitment basis was $31,506,498. (h) Senior loans have rates of interest that float periodically based primarily on the London Interbank Offered Rate ("LIBOR") and other short-term rates. Remaining maturities of senior loans may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. (i) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on Aug. 31, 2007. (j) Investments representing 5% or more of the outstanding voting securities of the issuer. Transactions with companies that are or were affiliates during the three months ended Aug. 31, 2007 are as follows:
BEGINNING PURCHASE SALES ENDING DIVIDEND ISSUER COST COST COST COST INCOME VALUE(A) - --------------------------------------------------------------------------------------------------------------------------------- Link Energy LLC Unit $13,076,335 $-- $-- $13,076,335 $-- $31,287
(k) Identifies issues considered to be illiquid as to their marketability. These securities may be valued at fair value according to procedures approved, in good faith, by the Fund's Board of Directors. Information concerning such security holdings at Aug. 31, 2007, is as follows:
ACQUISITION SECURITY DATES COST - --------------------------------------------------------------------------------------------------------- Arena Brands Common 09-03-92 $5,888,888 Great Lakes Gaming of Michigan 9.00% Term Loan 2012 03-01-07 9,821,681 United Artists Theatre Circuit Pass-Through Ctfs Series BB5 9.30% 2015 12-08-95 thru 04-03-02 6,706,691 United Artists Theatre Circuit Pass-Through Ctfs Series BC3 9.30% 2015 12-06-01 1,801,222 Varde Fund V LP 04-27-00 thru 06-19-00 --*
* The original cost for this position in fiscal year 2004 was $25,000,000. From Sept. 29, 2004 through March 7, 2005, $25,000,000 was returned to the fund in the form of return of capital. (l) For those zero coupon bonds that become coupon paying at a future date, the interest rate disclosed represents the annualized effective yield from the date of acquisition to maturity. (m) Pay-in-kind securities are securities in which the issuer makes interest or dividend payments in cash or in additional securities. The securities usually have the same terms as the original holdings. - -------------------------------------------------------------------------------- 5 RIVERSOURCE HIGH YIELD BOND FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007 RiverSource High Yield Bond Fund NOTES TO INVESTMENTS IN SECURITIES (CONTINUED) (n) At Aug. 31, 2007, the Fund had unfunded senior loan commitments pursuant to the term of the loan agreement. The Fund receives a stated coupon rate until the borrower draws on the loan commitment, at which time the rate will become the stated rate in the loan agreement.
UNFUNDED BORROWER COMMITMENT - ------------------------------------------------------------------------------- Fontainebleau Las Vegas $4,783,345
(o) Mortgage-backed securities represent direct or indirect participations in, or are secured by and payable from, mortgage loans secured by real property, and include single-and multi-class pass-through securities and collateralized mortgage obligations. These securities may be issued or guaranteed by U.S. government agencies or instrumentalities, or by private issuers, generally originators and investors in mortgage loans, including savings associations, mortgage bankers, commercial banks, investment bankers and special purpose entities. The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. Unless otherwise noted, the coupon rates presented are fixed rates. (p) At Aug. 31, 2007, the cost of securities for federal income tax purposes was approximately $1,835,655,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $13,013,000 Unrealized depreciation (83,986,000) - --------------------------------------------------------------------------------- Net unrealized depreciation $(70,973,000) - ---------------------------------------------------------------------------------
HOW TO FIND INFORMATION ABOUT THE FUND'S PORTFOLIO HOLDINGS (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii)The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at riversource.com. - -------------------------------------------------------------------------------- 6 RIVERSOURCE HIGH YIELD BOND FUND -- PORTFOLIO HOLDINGS AT AUG. 31, 2007 Item 2. Control and Procedures. (a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report 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 that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Separate certification for the Registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. 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) RiverSource High Yield Income Series, Inc. By /s/ Patrick T. Bannigan --------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date October 30, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By /s/ Patrick T. Bannigan --------------------------------- Patrick T. Bannigan President and Principal Executive Officer Date October 30, 2007 By /s/ Jeffrey P. Fox --------------------------------- Jeffrey P. Fox Treasurer and Principal Financial Officer Date October 30, 2007 EX-99.CERT 2 c18863exv99wcert.txt CERTIFICATIONS OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Patrick T. Bannigan, certify that: 1. I have reviewed this report on Form N-Q of RiverSource High Yield Income Series, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) 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 principals; 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 registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: October 24, 2007 /s/ Patrick T. Bannigan - ------------------------------------ Name: Patrick T. Bannigan Title: President and Principal Executive Officer Certification Pursuant to 270.30a-2 of the Investment Company Act of 1940 I, Jeffrey P. Fox, certify that: 1. I have reviewed this report on Form N-Q of RiverSource High Yield Income Series, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report, fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) 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 principals; 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 registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: October 24, 2007 /s/ Jeffrey P. Fox - ------------------------------------ Name: Jeffrey P. Fox Title: Treasurer and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----