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
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MassMutual Corporate Investors
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(Exact name of registrant as specified in charter)
1500 Main Street, Suite 600, Springfield, MA 01115-5189
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(Address of principal executive offices) (Zip code)
Rodney J. Dillman, Vice President and Secretary
1500 Main Street, Suite 2800, Springfield, MA 01115-5189
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(Name and address of agent for service)
Registrant's telephone number, including area code: 413-226-1000
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Date of fiscal year end: 12/31
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Date of reporting period: 6/30/07
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORT TO STOCKHOLDERS.
Attached hereto is the semi-annual shareholder report transmitted to
shareholders pursuant to Rule 30e-1 of the Investment Company Act of
1940, as amended.
MASSMUTUAL
CORPORATE INVESTORS
Report for the
Six Months Ended June 30, 2007
[LOGO]
ADVISER
Babson Capital Management LLC
1500 Main Street, P.O. Box 15189
Springfield, Massachusetts 01115-5189
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
Boston, Massachusetts 02110
COUNSEL TO THE TRUST
Ropes & Gray LLP
Boston, Massachusetts 02110
CUSTODIAN
Citibank, N.A.
New York, New York 10043
TRANSFER AGENT & REGISTRAR
Shareholder Financial Services, Inc.
P.O. Box 173673
Denver, Colorado 80217-3673
1-800-647-7374
INTERNET WEBSITE
www.babsoncapital.com/mci
[LOGO] MassMutual Corporate Investors
c/o Babson Capital Management LLC
1500 Main Street, P.O. Box 15189
Springfield, Massachusetts 01115-5189
(413) 226-1516
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INVESTMENT OBJECTIVE AND POLICY
MassMutual Corporate Investors (the "Trust") is a closed-end management
investment company, first offered to the public in 1971, whose shares are traded
on the New York Stock Exchange under the trading symbol "MCI." The Trust's share
price can be found in the financial section of most newspapers as "MassCp" or
"MassMulnv" under the New York Stock Exchange listings.
The Trust's investment objective is to maintain a portfolio of securities
providing a fixed yield while providing an opportunity for capital gains. The
Trust's principal investments are privately placed, below-investment grade,
long-term corporate debt obligations with equity features such as common stocks,
warrants, conversion rights, or other equity features and, occasionally,
preferred stocks. The Trust typically purchases these investments, which are not
publicly tradable, directly from their issuers in private placement
transactions. These investments are typically mezzanine debt investments with
accompanying private equity securities made to small or middle market companies.
In addition, the Trust may temporarily invest, subject to certain limitations,
in marketable investment grade debt securities, other marketable debt securities
(including high yield securities) and marketable common stocks.
Babson Capital Management LLC ("Babson Capital") manages the Trust on a total
return basis. The Trust distributes substantially all of its net taxable income
to shareholders each year. Accordingly, the Trust pays dividends to shareholders
quarterly in January, May, August, and November. The Trust pays dividends to its
shareholders in cash, unless the shareholder elects to participate in the
Dividend Reinvestment and Share Purchase Plan.
FORM N-Q
The Trust files its complete schedule of portfolio holdings with the U.S.
Securities and Exchange Commission ("SEC") for the first and third quarters of
each fiscal year on Form N-Q. This information is available (i) on the SEC's
website at HTTP://WWW.SEC.GOV; and (ii) at the SEC's Public Reference Room in
Washington, DC (which information on their operation may be obtained by calling
1-800-SEC-0330). A complete schedule of portfolio holdings as of each
quarter-end is available upon request by calling, toll-free, 866-399-1516.
PROXY VOTING POLICIES & PROCEDURES; PROXY VOTING RECORD
The Trustees of the Trust have delegated proxy voting responsibilities relating
to the voting of securities held by the Trust to Babson Capital. A description
of Babson Capital's proxy voting policies and procedures is available (1)
without charge, upon request, by calling, toll-free 866-399-1516; (2) on the
Trust's website: HTTP://WWW.BABSONCAPITAL.COM/MCI; and (3) on the SEC's website:
HTTP://WWW.SEC.GOV. INFORMATION regarding how the Trust voted proxies relating
to portfolio securities during the most recent 12-month period ended June 30 is
available (1) on the Trust's website: HTTP://WWW.BABSONCAPITAL.COM/MCI and (2)
on the SEC's website: HTTP://WWW.SEC.GOV.
MCI
Listed
NYSE
TO OUR SHAREHOLDERS
July 31, 2007
We are pleased to present the June 30, 2007 Semi-Annual Report of MassMutual
Corporate Investors (the "Trust").
The Board of Trustees declared a quarterly dividend of 54 cents per share,
payable on August 10, 2007 to shareholders of record on July 27, 2007. The Trust
had previously paid a 52 cent per share dividend for the preceding quarter. U.S.
equity markets, as measured by several broad market indices, posted robust
returns for the quarter ended June 30, 2007. Large stocks, as approximated by
the Dow Jones Industrial Average, increased 9.11%. Smaller stocks, as
approximated by the Russell 2000 Index, increased 4.41%. For the six months
ended June 30, 2007, returns were 8.75% and 6.45% for the Dow Jones Industrial
Average and Russell 2000 Index, respectively. U.S. fixed income markets, as
measured by several broad market indices posted weak results during the quarter.
The Lehman Brothers Government/Credit Index decreased 0.49% for the quarter
while the Lehman Brothers U.S. Corporate High Yield Index increased 0.22% for
the quarter ended June 30, 2007. For the six months ended June 30, 2007, returns
were 0.97% and 2.87% for the Lehman Brothers Government/Credit Index and the
Lehman Brothers U.S. Corporate High Yield Index, respectively.
The mezzanine and private equity markets in which the Trust invests continue to
be competitive. Valuations and leverage levels have been at or near their
highest levels since the late 1980's. Merger and acquisition activity has been
very robust and fundraising efforts in the private equity fund space continue to
break records. All of this adds up to a challenging market for providers of
mezzanine and private equity capital such as the Trust. We have been through
these cycles before and we believe that it is particularly important to continue
to employ the same disciplined investment strategy that has served us well over
the years.
During the quarter ended June 30, 2007, the Trust made private placement
investments in five new issuers and two "follow-on" investments, totaling
approximately $7.5 million. The follow-on investments purchased by the Trust
were Transtar Holding Company and NABCO, Inc. The five new issuers were Electra
Bicycle Company, Inc., Mail Communications Group, Inc., Pacific Consolidated
Holdings LLC, Visioneering, Inc. and Workplace Media Holding Co. The weighted
average coupon of these investments was 11.93%. (A brief description of these
investments can be found in the Consolidated Schedule of Investments.)
During the quarter ended June 30, 2007, net assets of the Trust increased to
$259,136,696 or $28.17 per share compared to $257,999,523 or $28.10 per share on
March 31, 2007, which translates into a 2.11% total return for the quarter,
based on the change in the Trust's net assets assuming the reinvestment of all
dividends. Long term, the Trust returned 11.80%, 17.41%, 14.00%, and 15.90% for
the 1-, 5-, 10- and 25-year time periods ended June 30, 2007, respectively,
based on the change in the Trust's net assets assuming the reinvestment of all
dividends. The Trust earned 64 cents per share of net investment income for the
quarter, of which 10 cents per share was from nonrecurring items, compared to 53
cents per share in the previous quarter.
During the quarter ended June 30, 2007, the market price of the Trust declined
12.0% from $36.35 per share to $32.00 per share, which translates into a -10.6%
total return for the quarter, based on the change in the Trust's market value
assuming reinvestment of all dividends. Long term, the Trust returned 12.15%,
18.45%, 16.61%, and 17.90% for the 1-, 5-, 10-, and 25-year time periods ended
June 30, 2007, respectively, based on a change in the Trust's market value
assuming the reinvestment of all dividends. The Trust's market price of $32.00
per share equates to a 13.6% premium over the June 30, 2007 NAV per share. The
Trust's average quarter-end premium for the 1-, 5-, 10- and 25-year periods
ended June 30, 2007, was 22.0%, 11.0%, 5.8% and -1.1%, respectively.
Thank you for your continued interest in and support of MassMutual Corporate
Investors.
Sincerely,
/s/ Clifford M. Noreen
--------------------------
Clifford M. Noreen
President
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Portfolio Composition as of 06/30/07*
[PIE CHART APPEARS HERE]
Public High Yield Debt 24.2%
Private Investment Grade Debt 4.3%
Private/Restricted Equity 16.7%
Cash & Short Term Investments 2.0%
Private High Yield Debt 51.0%
Public Equity 1.8%
*Based on market value of total investments
-------------------------------------------
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1
CONSOLIDATED STATEMENT OF MASSMUTUAL CORPORATE INVESTORS
ASSETS AND LIABILITIES
June 30, 2007
(Unaudited)
ASSETS:
Investments
(See Consolidated Schedule of Investments)
Corporate restricted securities at fair value
(Cost - $199,488,882) $ 197,909,763
Corporate public securities at market value
(Cost - $68,350,482) 71,349,910
Short-term securities at amortized cost 5,463,218
--------------
274,722,891
Interest and dividends receivable 6,229,290
Receivable for investments sold 2,401,374
Other assets 12,729
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TOTAL ASSETS $ 283,366,284
Liabilities:
Payable for investments purchased $ 2,241,522
Investment advisory fee payable 809,802
Note payable 20,000,000
Due to custodian 272,028
Interest payable 188,856
Accrued expenses 136,557
Accounts payable 50,289
Accrued taxes payable 530,534
--------------
TOTAL LIABILITIES 24,229,588
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TOTAL NET ASSETS $ 259,136,696
==============
Net Assets:
Common shares, par value $1.00 per share; an unlimited number authorized 9,198,001
Additional paid-in capital 109,768,206
Retained net realized gain on investments, prior years 126,906,684
Undistributed net investment income 7,810,765
Accumulated net realized gain on investments 4,326,392
Net unrealized appreciation of investments 1,126,648
--------------
TOTAL NET ASSETS $ 259,136,696
--------------
COMMON SHARES ISSUED AND OUTSTANDING 9,198,001
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NET ASSET VALUE PER SHARE $ 28.17
==============
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
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2
CONSOLIDATED STATEMENT OF OPERATIONS MASSMUTUAL CORPORATE INVESTORS
For the six months ended June 30, 2007
(Unaudited)
Investment Income:
Interest $ 12,537,963
Dividends 898,261
Other 57,979
--------------
TOTAL INVESTMENT INCOME 13,494,203
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Expenses:
Investment advisory fees 1,616,051
Interest 757,596
Trustees' fees and expenses 90,000
Professional fees 63,000
Reports to shareholders 54,000
Transfer agent/registrar's expenses 18,000
Other 109,346
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TOTAL EXPENSES 2,707,993
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INVESTMENT INCOME - NET 10,786,210
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NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments before taxes 4,352,410
Income tax expense (117,356)
--------------
Net realized gain on investments 4,235,054
Net change in unrealized appreciation of investments before taxes (4,764,241)
Net change in deferred income tax expense 357,356
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Net change in unrealized appreciation of investments (4,406,885)
NET LOSS ON INVESTMENTS (171,831)
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,614,379
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SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
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3
MASSMUTUAL CORPORATE INVESTORS CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended June 30, 2007
(Unaudited)
NET DECREASE IN CASH:
Cash flows from operating activities:
Interest, dividends, and other received $ 13,100,048
Interest expense paid (757,596)
Operating expenses paid (1,893,528)
Income taxes paid (6,416,485)
--------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 4,032,439
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Cash flows from investing activities:
Purchases/Proceeds/Maturities from short-term portfolio securities, net 1,874,690
Purchase of portfolio securities (43,496,779)
Proceeds from disposition of portfolio securities 44,722,430
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NET CASH PROVIDED BY INVESTING ACTIVITIES 3,100,341
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NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES 7,132,780
--------------
Cash flows from financing activities:
Cash dividends paid from net investment income (13,798,775)
Cash dividends paid from net realized gain on investments (125,491)
Receipts for shares issued on reinvestment of dividends 1,607,018
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NET CASH USED FOR FINANCING ACTIVITIES (12,317,248)
--------------
NET DECREASE IN CASH (5,184,468)
Cash - beginning of year 5,184,468
--------------
CASH - END OF PERIOD $ --
==============
RECONCILIATION OF NET INCREASE IN NET ASSETS TO NET
CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES:
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,614,379
--------------
Decrease in investments 2,625,061
Increase in interest and dividends receivable (94,625)
Increase in receivable for investments sold (1,900,511)
Increase in other assets (12,729)
Increase in payable for investments purchased 2,241,522
Increase in due to custodian 272,028
Increase in investment advisory fee payable 23,272
Decrease in accrued expenses (29,420)
Increase in accounts payable 50,289
Decrease in accrued taxes payable (6,656,486)
--------------
TOTAL ADJUSTMENTS TO NET ASSETS FROM OPERATIONS (3,481,599)
--------------
NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES $ 7,132,780
==============
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
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4
CONSOLIDATED STATEMENTS OF MASSMUTUAL CORPORATE INVESTORS
CHANGES IN NET ASSETS
For the six
months ended For the
06/30/2007 year ended
(Unaudited) 12/31/2006
-------------- --------------
INCREASE IN NET ASSETS:
OPERATIONS:
Investment income - net $ 10,786,210 $ 20,681,143
Net realized gain on investments 4,235,054 12,301,691
Net change in unrealized appreciation of investments (4,406,885) 2,456,052
-------------- --------------
Net increase in net assets resulting from operations 10,614,379 35,438,886
Increase from common shares issued on reinvestment of dividends
Common shares issued (2007 - 48,082; 2006 - 84,966) 1,607,018 2,619,000
Dividends to shareholders from:
Net investment income (2007 - $0.52 per share; 2006 - $2.47 per share) (4,774,347) (22,518,167)
Net realized gains on investments (2006 - $0.01 per share) -- (125,491)
-------------- --------------
TOTAL INCREASE IN NET ASSETS 7,447,050 15,414,228
NET ASSETS, BEGINNING OF YEAR 251,689,646 236,275,418
-------------- --------------
NET ASSETS, END OF PERIOD/YEAR (including undistributed net
investment income of $7,810,765 and $1,798,902, respectively) $ 259,136,696 $ 251,689,646
============== ==============
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
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5
CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS MASSMUTUAL CORPORATE INVESTORS
Selected data for each common share outstanding:
For the three
months ended For the years ended December 31,
03/31/2007 --------------------------------------------------------------------------
(Unaudited) 2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ---------- ----------
Net asset value:
Beginning of year $ 27.51 $ 26.06 $ 24.34 $ 21.84 $ 19.40 $ 20.07
Net investment income (a) 1.17 2.27 2.03 2.00 1.44 1.53
Net realized and unrealized
(loss) gain on investments (0.02) 1.62 1.96(b) 2.64 2.83 (0.59)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 1.15 3.89 3.99 4.64 4.27 0.94
---------- ---------- ---------- ---------- ---------- ----------
Dividends from net investment
income to common shareholders (0.52) (2.47) (2.11) (2.16) (1.84) (1.44)
Dividends from net realized gain on
investments to common shareholders -- (0.01) (0.18) -- -- (0.18)
Increase from dividends reinvested 0.03 0.04 0.02 0.02 0.01 0.01
---------- ---------- ---------- ---------- ---------- ----------
Total dividends (0.49) (2.44) (2.27) (2.14) (1.83) (1.61)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value:
End of period/year $ 28.17 $ 27.51 $ 26.06 $ 24.34 $ 21.84 $ 19.40
---------- ---------- ---------- ---------- ---------- ----------
Per share market value:
End of period/year $ 32.00 $ 34.89 $ 30.05 $ 28.50 $ 22.90 $ 19.49
========== ========== ========== ========== ========== ==========
Total investment return
Market value (6.85%) 29.04% 16.95% 36.10% 27.53% 1.35%
Net asset value (c) 4.30% 18.09% 20.04% 22.76% 22.61% 4.80%
Net assets (in millions):
End of period/year $ 259.14 $ 251.69 $ 236.28 $ 218.51 $ 193.79 $ 171.03
Ratio of operating expenses
to average net assets 1.53%(d) 1.43% 1.78% 1.93% 2.04% 1.82%
Ratio of interest expense
to average net assets 0.60%(d) 0.60% 0.73% 0.77% 0.82% 0.86%
Ratio of total expenses before custodian
reduction to average net assets 2.13%(d) 2.07% 2.52% 2.70% 2.86% 2.68%
Ratio of net expenses after custodian
reduction to average net assets 2.13%(d) 2.03% 2.51% 2.70% 2.86% 2.68%
Ratio of net investment income
to average net assets 8.47%(d) 8.19% 7.98% 8.68% 6.95% 7.65%
Portfolio turnover 14.47% 34.70% 35.22% 53.45% 56.10% 34.02%
(a) Calculated using average shares.
(b) Amount includes $0.19 per share in litigation proceeds.
(c) Net asset value return represents portfolio returns based on change in the Trust's net asset value assuming the reinvestment
of all dividends and distributions which differs from the total investment return based on the Trust's market value due to the
difference between the Trust's net asset value and the market value of its shares outstanding; past performance is no
guarantee of future results.
(d) Annualized.
Senior securities:
Total principal amount (in millions) $ 20 $ 20 $ 20 $ 29 $ 20 $ 20
Asset coverage per $1,000
of indebtedness $ 13,957 $ 13,584 $ 12,814 $ 8,535 $ 10,689 $ 9,551
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
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6
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES - 76.37%:(A) Amount Date Cost Value
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PRIVATE PLACEMENT INVESTMENTS - 69.83%
A T I ACQUISITION COMPANY
A for-profit post-secondary school serving students in
Texas, Florida and Arizona.
12% Senior Subordinated Note due 2012 $ 2,125,000 04/08/04 $ 2,125,000 $ 2,134,831
Warrant, exercisable until 2012, to purchase
common stock at $.02 per share (B) 2,323 shs. 04/08/04 -- 23
Warrant, exercisable until 2012, to purchase
preferred stock at $.01 per share 63,287 shs. 03/23/06 63,958 63,958
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2,188,958 2,198,812
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AERO HOLDINGS, INC.
A provider of geospatial services to corporate and
government clients.
10.5% Senior Secured Term Note due 2014 $ 1,627,500 03/09/07 1,603,088 1,581,664
14% Senior Subordinated Note due 2015 $ 1,260,000 03/09/07 1,126,168 1,220,543
Common Stock (B) 262,500 shs. 03/09/07 262,500 249,375
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 66,116 shs. 03/09/07 111,527 661
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3,103,283 3,052,243
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AMERICAN HOSPICE MANAGEMENT HOLDING LLC
A for-profit hospice care provider in the United States.
12% Senior Subordinated Note due 2010 $ 2,125,000 01/22/04 1,959,961 2,127,974
Preferred Class A Unit (B) 3,223 uts. * 322,300 354,530
Common Class B Unit (B) 30,420 uts. 01/22/04 1 89,811
Common Class D Unit (B) 6,980 uts. 09/12/06 1 20,607
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2,282,263 2,592,922
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ARROW TRU-LINE HOLDINGS, INC.
A manufacturer of hardware for residential and
commercial overhead garage doors in North America.
12% Senior Subordinated Note due 2012 $ 1,627,660 05/18/05 1,539,234 1,630,609
Common Stock (B) 497 shs. 05/18/05 497,340 259,530
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 130 shs. 05/18/05 112,128 68,037
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2,148,702 1,958,176
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AUGUSTA SPORTSWEAR HOLDING CO.
A manufacturer and distributor of athletic apparel,
activewear and team uniforms.
12% Senior Subordinated Note due 2012 $ 1,686,800 12/31/04 1,592,089 1,737,404
Common Stock (B) 520 shs. ** 519,622 1,195,234
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 137 shs. 12/31/04 119,482 316,249
------------- -------------
2,231,193 3,248,887
------------- -------------
BETA BRANDS LTD.
A manufacturer of hard candy and chocolate-coated
products sold primarily to the Canadian market.
5% Promissory Note due 2009 (B) $ 195,498 03/31/04 195,498 --
Warrant, exercisable until 2009, to purchase
common stock at $.01 per share (B) 4,895 shs. 03/31/04 1 --
------------- -------------
195,499 --
------------- -------------
*01/22/04 and 09/12/06.
**12/31/04, 03/31/05, and 05/02/06.
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7
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
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BRAVO SPORTS HOLDING CORPORATION
A designer and marketer of niche branded consumer
products including canopies, trampolines, in-line skates,
skateboards, and urethane wheels.
12.5% Senior Subordinated Note due 2014 $ 2,281,593 06/30/06 $ 2,150,755 $ 2,198,048
Preferred Stock Class A (B) 879 shs. 06/30/06 268,121 241,307
Common Stock (B) 1 sh. 06/30/06 286 258
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 309 shs. 06/30/06 92,102 3
------------- -------------
2,511,264 2,439,616
------------- -------------
CAPESUCCESS LLC
A provider of diversified staffing services.
Preferred Membership Interests (B) 1,882 uts. 04/29/00 8,395 420
Common Membership Interests (B) 24,318 uts. 04/29/00 108,983 5,442
------------- -------------
117,378 5,862
------------- -------------
CAPITAL SPECIALTY PLASTICS, INC.
A producer of desiccant strips used for packaging
pharmaceutical products.
Common Stock (B) 109 shs. * 503 447,145
------------- -------------
COEUR, INC.
A producer of proprietary, disposable power
injection syringes.
8.75% Senior Secured Term Note due 2010 $ 355,072 04/30/03 355,072 359,305
11.5% Senior Subordinated Note due 2011 $ 424,818 04/30/03 399,917 425,076
Common Stock (B) 126,812 shs. 04/30/03 126,812 348,000
Warrant, exercisable until 2010, to purchase
common stock at $.01 per share (B) 87,672 shs. 04/30/03 40,804 240,591
------------- -------------
922,605 1,372,972
------------- -------------
COINING CORPORATION OF AMERICA LLC
A manufacturer of close tolerance parts and
metal stampings.
10.6% Senior Secured Revolving Credit
Facility due 2007 (C) $ 86,420 01/07/02 86,420 86,420
10.6% Senior Secured Tranche A Note due 2007 (C) $ 558,750 06/26/01 558,750 557,173
13% Senior Secured Tranche B Note due 2008 $ 648,148 06/26/01 648,148 648,148
Limited Liability Company Unit 324,074 uts. 06/26/01 324,074 974,101
Warrant, exercisable until 2008, to purchase
common stock at $.01 per share (B) 107,036 shs. 06/26/01 79,398 321,728
------------- -------------
1,696,790 2,587,570
------------- -------------
CONNECTICUT ELECTRIC, INC.
A supplier and distributor of electrical products sold into
the retail and wholesale markets.
12% Senior Subordinated Note due 2014 $ 2,393,954 01/12/07 2,233,202 2,335,601
Limited Liability Company Unit Class A (B) 156,046 uts. 01/12/07 156,046 148,244
Limited Liability Company Unit Class C (B) 112,873 uts. 01/12/07 112,873 107,230
------------- -------------
2,502,121 2,591,075
------------- -------------
*12/30/97 and 05/29/99.
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8
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
CONNOR SPORT COURT INTERNATIONAL, INC.
A designer and manufacturer of outdoor and
indoor synthetic sports flooring and other temporary
flooring products.
12% Senior Subordinated Note due 2012 (D) $ 2,001,121 * $ 1,840,888 $ 1,000,561
Limited Partnership Interest (B) 7.74% int. ** 189,586 --
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 174 shs. * 160,233 --
------------- -------------
2,190,707 1,000,561
------------- -------------
CONSOLIDATED FOUNDRIES HOLDINGS
A manufacturer of engineered cast metal components
for the global aerospace and defense industries.
12% Senior Subordinated Note due 2013 $ 2,185,714 06/15/05 2,101,940 2,207,571
Common Stock (B) 509 shs. *** 526,096 743,049
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 103 shs. 06/15/05 100,668 150,287
------------- -------------
2,728,704 3,100,907
------------- -------------
COREPHARMA LLC
A manufacturer of oral dose generic pharmaceuticals
targeted at niche applications.
12% Senior Subordinated Note due 2013 $ 2,550,000 08/04/05 2,431,943 2,562,147
Warrant, exercisable until 2013, to purchase
common stock at $.001 per share (B) 20 shs. 08/04/05 137,166 59,609
------------- -------------
2,569,109 2,621,756
------------- -------------
DAVIS-STANDARD LLC
A manufacturer, assembler, and installer of a broad
range of capital equipment that is used in the extrusion,
conversion, and processing of plastic materials.
12% Senior Subordinated Note due 2014 $ 1,847,826 10/30/06 1,731,476 1,862,956
Limited Partnership Interest (B) 702,174 uts. 10/30/06 702,174 667,065
Warrant, exercisable until 2014, to purchase
preferred stock at $.01 per share (B) 50 shs. 10/30/06 49,830 1
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 34 shs. 10/30/06 34,000 --
------------- -------------
2,517,480 2,530,022
------------- -------------
DELTACOM
A provider of integrated communications services in the
southeastern United States.
13.88% Senior Secured Note due 2009 (C) $ 2,259,469 07/26/05 2,215,235 2,304,659
17.38% Senior Secured Note due 2009 (C) $ 373,249 07/26/05 330,121 371,383
Warrant, exercisable until 2009, to purchase
convertible preferred stock at $.03 per share (B) 102,884 shs. 07/26/05 34,295 573,064
------------- -------------
2,579,651 3,249,106
------------- -------------
DEXTER MAGNETICS TECHNOLOGIES, INC.
A designer, fabricator, assembler and distributor of
industrial magnets and subassemblies in North America
and Europe.
Common Stock (B) 585 shs. 07/19/01 351,088 1,703,664
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share 297 shs. 07/19/01 131,981 863,493
------------- -------------
483,069 2,567,157
------------- -------------
*08/12/04 and 01/18/05.
**08/12/04 and 01/14/05.
***06/15/05 and 05/22/06.
---------------------------------------------------------------------------------------------------------------------------------
9
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
DIRECTED ELECTRONICS, INC.
A designer and distributor of brand name
automotive security systems, audio products and
installation accessories.
Common Stock (B) 368,560 shs. * $ 1,856,534 $ 3,258,069
------------- -------------
DIVERSCO, INC./DHI HOLDINGS, INC.
A contract provider of janitorial and equipment
maintenance services and temporary production labor to
industrial customers.
Membership Interests of MM/Lincap
Diversco Investments Ltd. LLC (B) 27.19% int. 08/27/98 734,090 --
Preferred Stock (B) 3,278 shs. 12/14/01 2,784,133 --
Warrants, exercisable until 2011, to purchase common
stock of DHI Holdings, Inc. at $.01 per share (B) 13,352 shs. ** 403,427 --
------------- -------------
3,921,650 --
------------- -------------
DUNCAN SYSTEMS, INC.
A distributor of windshields and side glass for the
recreational vehicle market.
10% Senior Secured Term Note due 2013 $ 540,000 11/01/06 531,900 535,148
13% Senior Subordinated Note due 2014 $ 855,000 11/01/06 763,492 845,949
Common Stock (B) 180,000 shs. 11/01/06 180,000 171,000
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 56,514 shs. 11/01/06 78,160 565
------------- -------------
1,553,552 1,552,662
------------- -------------
DWYER GROUP, INC.
A franchiser of a variety of home repair services.
Common Stock (B) 6,906 shs. *** 690,600 814,204
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 2,034 shs. 10/30/03 186,469 239,756
------------- -------------
877,069 1,053,960
------------- -------------
E X C ACQUISITION CORPORATION
A manufacturer of pre-filled syringes and pump systems
used for intravenous drug delivery.
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 22 shs. 06/28/04 77,208 157,801
------------- -------------
EAGLE PACK PET FOODS, INC.
A manufacturer of premium pet food sold through
independent pet stores.
12% Senior Subordinated Note due 2011 $ 1,517,857 **** 1,482,327 1,533,036
Warrant, exercisable until 2011, to purchase
common stock at $.02 per share (B) 4,085 shs. 09/24/04 39,464 101,092
------------- -------------
1,521,791 1,634,128
------------- -------------
ELECTRA BICYCLE COMPANY, INC.
A designer and marketer of branded leisure bicycles.
10.5% Senior Secured Term Note A due 2009 $ 255,061 04/12/07 249,960 252,960
10.5% Senior Secured Term Note B due 2012 $ 765,182 04/12/07 749,878 755,580
12% Senior Secured Term Note C due 2012 $ 510,121 04/12/07 474,967 498,830
Limited Liability Company Unit Series F (B) 64,597 uts. 04/12/07 64,597 61,367
LLC Unit Series G (B) 4,990 uts. 04/12/07 4,990 4,741
------------- -------------
1,544,392 1,573,478
------------- -------------
*12/19/05 and 06/17/06.
**10/24/96 and 08/28/98.
***10/30/03 and 01/02/04.
****09/24/04 and 04/20/06.
---------------------------------------------------------------------------------------------------------------------------------
10
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
ENZYMATIC THERAPY, INC.
A manufacturer and distributor of branded natural
medicines and nutritional supplements.
Limited Partnership Interest (B) 1.32% int. 03/30/00 $ 531,250 $ 63,750
Warrant, exercisable until 2009, to purchase
common stock at $.01 per share (B) 29,117 shs. 03/30/00 255,000 42,500
------------- -------------
786,250 106,250
------------- -------------
EVANS CONSOLES, INC.
A designer and manufacturer of consoles and control
center systems.
Common Stock 90,000 shs. 05/06/04 6 --
------------- -------------
F H S HOLDINGS LLC
A national provider of customized disease management
services to large self-insured employers.
12% Senior Subordinated Note due 2014 $ 2,390,625 06/01/06 2,231,170 2,396,936
Preferred Unit (B) 158 uts. 06/01/06 157,768 142,002
Common Unit (B) 1,594 uts. 06/01/06 1,594 1,434
Common Unit Class B (B) 1,386 uts. 06/01/06 122,361 110,125
------------- -------------
2,512,893 2,650,497
------------- -------------
FLUTES, INC.
An independent manufacturer of micro fluted corrugated
sheet material for the food and consumer products
packaging industries.
10% Senior Secured Term Note due 2013 $ 918,385 04/13/06 904,609 913,643
14% Senior Subordinated Note due 2014 $ 555,059 04/13/06 499,784 552,920
Common Stock (B) 109,436 shs. 04/13/06 109,436 98,492
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 30,940 shs. 04/13/06 48,433 309
------------- -------------
1,562,262 1,565,364
------------- -------------
FOWLER HOLDING, INC.
A provider of site development services to residential
homebuilders and developers in the Raleigh/Durham
region of North Carolina.
12% Senior Subordinated Note due 2013 $ 2,365,217 02/03/06 2,148,685 2,311,256
Common Stock (B) 185 shs. 02/03/06 184,783 66,143
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 254 shs. 02/03/06 208,435 90,928
------------- -------------
2,541,903 2,468,327
------------- -------------
FUEL SYSTEMS HOLDING CORPORATION
An independent North American supplier of fuel tanks for
a wide variety of commercial vehicles.
12% Senior Subordinated Note due 2014 $ 2,337,500 01/31/06 2,184,365 2,294,176
Common Stock (B) 212,500 shs. 01/31/06 212,500 274,331
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 138,408 shs. 01/31/06 119,213 178,680
------------- -------------
2,516,078 2,747,187
------------- -------------
H M HOLDING COMPANY
A designer, manufacturer, and importer of promotional and
wood furniture.
12% Senior Subordinated Note due 2013 $ 2,210,000 02/10/06 2,060,710 2,029,514
Common Stock (B) 340 shs. 02/10/06 340,000 272,000
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 126 shs. 02/10/06 116,875 1
------------- -------------
2,517,585 2,301,515
------------- -------------
---------------------------------------------------------------------------------------------------------------------------------
11
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
HIGHGATE CAPITAL LLC
An acquirer of controlling or substantial interests in
manufacturing and marketing entities.
Series A Preferred Units (B) 1.19% int. 07/21/94 $ 367,440 $ --
------------- -------------
HOME DECOR HOLDING COMPANY
A designer, manufacturer and marketer of framed art and
wall decor products.
12.5% Senior Subordinated Note due 2012 $ 2,043,269 * 1,885,343 2,045,502
Common Stock (B) 63 shs. * 62,742 87,922
Warrant, exercisable until 2012, to purchase
common stock at $.02 per share (B) 200 shs. * 199,501 279,574
------------- -------------
2,147,586 2,412,998
------------- -------------
INTEGRATION TECHNOLOGY SYSTEMS, INC.
A manufacturer of steel protective computer and network
systems for the industrial and office environments.
12% Senior Secured Note due 2008 $ 1,644,444 03/01/04 1,646,101 832,222
Common Stock (B) 228 shs. 06/01/00 262,200 --
------------- -------------
1,908,301 832,222
------------- -------------
JASON, INC.
A diversified manufacturing company serving various
industrial markets.
13% Senior Subordinated Note due 2008 $ 963,687 08/04/00 933,902 954,050
Limited Partnership Interest of
Saw Mill Capital Fund II, L.P. (B) 2.50% int. 08/03/00 886,352 615,109
Warrants, exercisable until 2008 and 2009, to purchase
common stock at $.01 per share (B) 50,870 shs. 08/04/00 115,412 123,530
------------- -------------
1,935,666 1,692,689
------------- -------------
JUSTRITE MANUFACTURING ACQUISITION CO.
A manufacturer of safety products such as storage cabinets
and containers.
12% Senior Subordinated Note due 2011 $ 1,593,750 12/15/04 1,517,399 1,609,590
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 1,121 shs. 12/15/04 101,109 193,778
------------- -------------
1,618,508 1,803,368
------------- -------------
K N B HOLDINGS CORPORATION
A designer, manufacturer and marketer of products for the
custom framing market.
13.5% Senior Subordinated Note due 2013 $ 2,446,734 05/25/06 2,333,985 2,414,846
Common Stock (B) 134,210 shs. 05/25/06 134,210 120,789
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 82,357 shs. 05/25/06 71,534 824
------------- -------------
2,539,729 2,536,459
------------- -------------
K W P I HOLDINGS CORPORATION
A manufacturer and distributor of vinyl windows and patio
doors throughout the northwestern United States.
12% Senior Subordinated Note due 2014 $ 2,318,000 03/14/07 2,114,030 2,262,310
Common Stock (B) 232 shs. 03/13/07 232,000 220,400
Warrant, exercisable until 2017, to purchase
common stock at $.01 per share (B) 167 shs. 03/14/07 162,260 2
------------- -------------
2,508,290 2,482,712
------------- -------------
*06/30/04 and 08/19/04.
---------------------------------------------------------------------------------------------------------------------------------
12
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
KEEPSAKE QUILTING, INC.
A seller of quilting fabrics, books, patterns, kits and
notions to consumers.
8.86% Senior Secured Tranche A Note due 2008 (C) $ 238,503 06/16/00 $ 238,503 $ 236,445
12% Senior Secured Tranche B Note due 2008 $ 550,392 06/16/00 542,268 550,392
Limited Partnership Interest of
Riverside XVI Holding Company, L.P. (B) 5.29% int. 06/12/00 333,490 527,499
Warrant, exercisable until 2008, to purchase
common stock at $.01 per share (B) 1,108 shs. 06/12/00 45,866 176,828
------------- -------------
1,160,127 1,491,164
------------- -------------
KELE AND ASSOCIATES, INC.
A distributor of building automation control products.
12% Senior Subordinated Note due 2012 $ 1,831,548 02/27/04 1,705,068 1,849,863
Common Stock 12 shs. 02/27/04 12,871 314,850
Warrant, exercisable until 2012, to purchase
common stock at $.02 per share 11 shs. 02/27/04 7,793 288,181
------------- -------------
1,725,732 2,452,894
------------- -------------
LIH INVESTORS, L.P.
A manufacturer and marketer of a broad line of external
accessories for new and used sport utility vehicles, trucks
and vans.
12.5% Senior Subordinated Note due 2008 (D) $ 3,845,000 * 3,587,623 --
Common Stock (B) 5,800 shs. * 406,003 --
Warrant, exercisable until 2008, to purchase
common stock at $.11 per share (B) 15,572 shs. * 602,127 --
------------- -------------
4,595,753 --
------------- -------------
MAGNATECH INTERNATIONAL, INC.
A supplier of process equipment and related parts used
in the manufacturing of medium and high-pressure
reinforced hoses.
12% Senior Subordinated Note due 2014 $ 1,168,750 04/05/06 1,090,671 1,177,821
13% Preferred Stock (B) 565 shs. 04/05/06 565,335 638,823
Common Stock (B) 125 shs. 04/05/06 125,048 431,235
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 13 shs. 04/05/06 12,905 44,486
------------- -------------
1,793,959 2,292,365
------------- -------------
MAIL COMMUNICATIONS GROUP, INC.
A provider of mail processing and handling services,
lettershop services, and commercial printing services.
12.5% Senior Subordinated Note due 2014 $ 975,000 05/04/07 912,469 944,414
Limited Liability Company Unit (B) 23,000 uts. 05/04/07 300,000 285,000
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 3,375 shs. 05/04/07 43,031 34
------------- -------------
1,255,500 1,229,448
------------- -------------
MAVERICK ACQUISITION COMPANY
A manufacturer of capsules that cover the cork and neck of
wine bottles.
9.85% Senior Secured Tranche A Note due 2010 (C) $ 596,118 09/03/04 596,118 598,568
12% Senior Secured Tranche B Note due 2011 $ 313,433 09/03/04 285,031 312,211
Limited Partnership Interest (B) 7.84% int. 09/03/04 58,769 48,568
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 425 shs. 09/03/04 39,473 35,091
------------- -------------
979,391 994,438
------------- -------------
*12/23/98 and 01/28/99.
---------------------------------------------------------------------------------------------------------------------------------
13
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
MAXON CORPORATION
A manufacturer of industrial combustion equipment and
related shut-off valves and control valves.
12% Senior Subordinated Note due 2012 $ 962,215 09/30/04 $ 893,472 $ 979,120
8.75% Senior Subordinated Note due 2012 $ 1,155,562 09/30/04 1,155,562 1,178,330
Common Stock (B) 381,672 shs. 09/30/04 381,672 1,320,233
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 153,572 shs. 09/30/04 90,897 531,216
------------- -------------
2,521,603 4,008,899
------------- -------------
MEDASSIST, INC.
A provider of patient eligibility and accounts receivable
management services to hospitals and physician practices.
8% Preferred Stock (B) 84 shs. 10/28/04 83,658 83,066
Common Stock (B) 26,185 shs. 10/28/04 35,088 117,168
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 84,637 shs. 05/01/03 40,675 378,719
------------- -------------
159,421 578,953
------------- -------------
MICROGROUP, INC.
A manufacturer of precision parts and assemblies, and a
value-added supplier of metal tubing and bars.
12% Senior Subordinated Note due 2013 $ 2,685,614 * 2,533,796 2,701,446
Common Stock (B) 450 shs. * 450,000 390,850
Warrant, exercisable until 2013, to purchase
common stock at $.02 per share (B) 164 shs. * 162,974 142,426
------------- -------------
3,146,770 3,234,722
------------- -------------
MOMENTUM HOLDING CO.
A designer and supplier of upholstery fabric to commercial
furniture manufacturers and architectural and design firms.
12% Senior Subordinated Note due 2014 $ 1,168,847 08/04/06 1,045,167 1,168,300
Limited Partnership Interest (B) 106,153 uts. 08/04/06 106,153 95,538
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 1,107 shs. 08/04/06 107,109 11
------------- -------------
1,258,429 1,263,849
------------- -------------
MONESSEN HOLDING CORPORATION
A designer and manufacturer of a broad line of gas, wood,
and electric hearth products and accessories.
12% Senior Subordinated Note due 2014 $ 2,550,000 03/31/06 2,373,166 2,401,939
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 152 shs. 03/31/06 138,125 2
------------- -------------
2,511,291 2,401,941
------------- -------------
MORTON INDUSTRIAL GROUP, INC.
A manufacturer of highly engineered metal
fabricated components.
12% Senior Subordinated Note due 2014 $ 2,440,909 08/25/06 2,251,029 2,362,544
Common Stock (B) 109,091 shs. 08/25/06 109,090 87,273
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 173,633 shs. 08/25/06 149,940 1,736
------------- -------------
2,510,059 2,451,553
------------- -------------
*08/12/05 and 09/11/06.
---------------------------------------------------------------------------------------------------------------------------------
14
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
MOSS, INC.
A manufacturer and distributor of large display and
exhibit structures.
Limited Partnership Interest of
Riverside Capital Appreciation Fund I, L.P. (B) 33.59% int. * $ 348,620 $ 406,235
Warrant, exercisable until 2010, to purchase
common stock at $.01 per share (B) 214 shs. 12/21/05 36,647 24,940
------------- -------------
385,267 431,175
------------- -------------
NABCO, INC.
A producer of explosive containment vessels in the
United States.
12% Senior Subordinated Note due 2014 $ 625,000 02/24/06 579,139 547,703
Limited Liability Company Unit (B) 825 uts. ** 825,410 660,328
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 48 shs. 02/24/06 37,188 --
------------- -------------
1,441,737 1,208,031
------------- -------------
NAVIS GLOBAL
A designer, manufacturer, seller and servicer of finishing
machinery for the knit and woven segments of the global
textile industry.
12% Senior Subordinated Note due 2014 $ 1,234,551 05/28/04 1,131,964 1,211,533
8.75% Senior Secured Note due 2011 $ 716,292 05/28/04 716,292 712,302
Common Stock (B) 674,157 shs. 05/28/04 674,157 573,033
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 203,912 shs. 05/28/04 130,789 2,039
------------- -------------
2,653,202 2,498,907
------------- -------------
NETSHAPE TECHNOLOGIES, INC.
A manufacturer of powder metal and metal injection
molded precision components used in industrial, consumer,
and other applications.
12% Senior Subordinated Note due 2014 $ 1,530,000 02/02/07 1,408,570 1,477,221
Limited Partnership Interest of
Saw Mill PCG Partners LLC (B) 1,020 uts. 02/01/07 1,020,000 969,000
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 91 shs. 02/02/07 90,830 1
------------- -------------
2,519,400 2,446,222
------------- -------------
NONNI'S FOOD COMPANY
A producer and distributor of premium biscotti and bagel
chips in North America.
12.25% Senior Subordinated Note due 2012 $ 1,863,462 03/29/04 1,856,139 1,873,544
10% Preferred Stock (B) 255 shs. 03/29/04 255,083 256,028
Common Stock (B) 6,455 shs. 03/29/04 6,455 146,134
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 8,622 shs. 03/29/04 7,323 195,195
------------- -------------
2,125,000 2,470,901
------------- -------------
NYLONCRAFT, INC.
A supplier of engineered plastic components for the
automotive industry.
9% Senior Secured Note due 2009 $ 812,500 01/28/02 812,500 771,875
11.5% Senior Subordinated Note due 2012 $ 1,500,000 01/28/02 1,405,912 750,000
Common Stock (B) 312,500 shs. 01/28/02 312,500 --
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 243,223 shs. 01/28/02 162,045 --
------------- -------------
2,692,957 1,521,875
------------- -------------
*09/20/00, 05/23/02, and 02/21/07.
**02/24/06 and 06/22/07.
---------------------------------------------------------------------------------------------------------------------------------
15
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
O R S NASCO HOLDING, INC.
A wholesale distributor of industrial supplies in
North America.
13% Senior Subordinated Note due 2013 $ 2,372,732 12/20/05 $ 2,237,450 $ 2,420,187
Common Stock (B) 177,268 shs. 12/20/05 177,268 324,347
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 99,771 shs. 12/20/05 98,773 182,551
------------- -------------
2,513,491 2,927,085
------------- -------------
OAKRIVER TECHNOLOGY, INC.
Designs, engineers and assembles high precision
automated process equipment for the medical device
industry, with a focus on defibrillators and stents.
10% Senior Secured Note due 2012 $ 565,452 01/03/06 556,970 562,715
13% Senior Subordinated Note due 2013 $ 687,241 01/03/06 618,172 683,885
Common Stock (B) 322,307 shs. 01/03/06 322,307 290,076
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 75,378 shs. 01/03/06 62,824 754
------------- -------------
1,560,273 1,537,430
------------- -------------
OLYMPIC SALES, INC.
A boat retailer in Washington state, Oregon, California and
British Columbia.
12% Senior Subordinated Note due 2008 $ 1,241,000 08/07/98 1,241,000 1,213,955
12% Senior Subordinated Note due 2008 $ 307,071 02/09/00 301,894 303,401
Limited Partnership Interest of Riverside VIII,
VIII-A and VIII-B Holding Company, L.P. 20.57% int. * 1,555,992 1,555,626
Warrants, exercisable until 2007 and 2008, to purchase
common stock at $.01 per share (B) 28,648 shs. ** 389,188 59,302
------------- -------------
3,488,074 3,132,284
------------- -------------
ONTARIO DRIVE & GEAR LTD.
A manufacturer of all-wheel drive, off-road amphibious
vehicles and related accessories.
13% Senior Subordinated Note due 2013 $ 1,977,885 01/17/06 1,793,563 1,985,065
Limited Liability Company Unit (B) 3,667 uts. 01/17/06 572,115 716,565
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 619 shs. 01/17/06 170,800 120,981
------------- -------------
2,536,478 2,822,611
------------- -------------
OVERTON'S HOLDING COMPANY
A marketer of marine and water sports accessories in the
United States.
12% Senior Subordinated Note due 2014 $ 1,817,308 04/28/06 1,705,302 1,800,898
Common Stock (B) 95 shs. 04/28/06 95,000 85,500
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 94 shs. 04/28/06 83,720 1
------------- -------------
1,884,022 1,886,399
------------- -------------
P A S HOLDCO LLC
An independent provider of maintenance, repair and
overhaul services to the aerospace gas turbine engine and
airframe markets.
14% Senior Subordinated Note due 2014 $ 2,200,163 07/03/06 2,092,666 2,245,057
Preferred Unit (B) 382 uts. 07/03/06 382,150 363,043
Preferred Unit (B) 69 uts. 07/03/06 68,790 65,351
Common Unit Class I (B) 148 uts. 07/03/06 -- 1
Common Unit Class L (B) 31 uts. 07/03/06 -- --
------------- -------------
2,543,606 2,673,452
------------- -------------
*08/07/98, 02/23/99, 12/22/99 and 02/25/03.
**08/07/98 and 02/09/00.
---------------------------------------------------------------------------------------------------------------------------------
16
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
P I I HOLDING CORPORATION
A manufacturer of plastic film and bags for the general
industrial, medical, and food industries.
12% Senior Subordinated Note due 2013 $ 2,295,000 03/31/06 $ 2,151,549 $ 2,318,538
Preferred Stock (B) 36 shs. 03/31/06 329,596 353,532
Common Stock (B) 23 shs. 03/31/06 25,500 37,502
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 13 shs. 03/31/06 11,122 21,815
------------- -------------
2,517,767 2,731,387
------------- -------------
PACIFIC CONSOLIDATED HOLDINGS LLC
A manufacturer of rugged, mobile liquid and gaseous
oxygen and nitrogen generating systems used in the global
defense, oil & gas and medical sectors.
12% Senior Subordinated Note due 2012 $ 1,304,624 04/27/07 1,188,373 1,286,075
Limited Liability Company Unit (B) 1,754,707 uts. 04/27/07 63,233 60,011
------------- -------------
1,251,606 1,346,086
------------- -------------
PARADIGM PACKAGING, INC.
A manufacturer of plastic bottles and closures for the
nutritional, pharmaceutical, personal care and food
packaging markets.
12% Senior Subordinated Note due 2008 $ 2,125,000 12/19/00 2,050,154 2,118,449
Membership Interests of MM/Lincap
PPI Investments, Inc., LLC (B) 2.42% int. 12/21/00 265,625 421,510
------------- -------------
2,315,779 2,539,959
------------- -------------
POSTLE ALUMINUM COMPANY LLC
A manufacturer and distributor of aluminum
extruded products.
12% Senior Subordinated Note due 2014 $ 2,040,000 10/02/06 1,891,572 2,052,664
Limited Liability Company Unit (B) 1,384 uts. 10/02/06 510,000 484,497
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 344 shs. 10/02/06 124,644 3
------------- -------------
2,526,216 2,537,164
------------- -------------
PROTEIN GENETICS, INC.
A producer of bovine artificial insemination products, related
breeding and healthcare products and specialty genetics sold
to the dairy and beef industries.
9.8% Redeemable Exchangeable Preferred Stock (B) 1,004 shs. 08/12/94 100,350 --
Common Stock (B) 2,600 shs. * 126,865 --
------------- -------------
227,215 --
------------- -------------
QUALIS AUTOMOTIVE LLC
A distributor of aftermarket automotive brake and
chassis products.
12% Senior Subordinated Note due 2012 $ 1,770,833 05/28/04 1,505,478 1,746,283
Common Stock 354,166 shs. 05/28/04 354,166 121,880
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share 377,719 shs. 05/28/04 377,719 129,985
------------- -------------
2,237,363 1,998,148
------------- -------------
QUALSERV CORPORATION
A provider of foodservice equipment and supplies to major
restaurant chains and their franchisees.
14% Senior Subordinated Note due 2012 (D) $ 1,893,563 07/09/04 1,844,035 --
Limited Partnership Interest (B) 9.26% int. 07/09/04 259,146 --
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 528 shs. 07/09/04 49,060 --
------------- -------------
2,152,241 --
------------- -------------
*08/12/94 and 11/14/01.
---------------------------------------------------------------------------------------------------------------------------------
17
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
R A J MANUFACTURING HOLDINGS LLC
A designer and manufacturer of women's swimwear sold
under a variety of licensed brand names.
12.5% Senior Subordinated Note due 2014 $ 2,267,190 12/15/06 $ 2,090,363 $ 2,301,028
Limited Liability Company Unit (B) 2,828 uts. 12/15/06 282,810 268,670
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 3 shs. 12/15/06 131,482 --
------------- -------------
2,504,655 2,569,698
------------- -------------
RADIAC ABRASIVES, INC.
A manufacturer of bonded abrasive and super abrasive
grinding wheels in the United States.
12% Senior Subordinated Note due 2014 $ 2,260,638 02/10/06 2,108,982 2,328,457
Common Stock (B) 289,362 shs. 02/10/06 289,362 260,425
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 131,555 shs. 02/10/06 119,795 1,315
------------- -------------
2,518,139 2,590,197
------------- -------------
RIVER RANCH FRESH FOODS LLC
A supplier of fresh produce to the retail and
foodservice channels.
13% Senior Subordinated Note due 2011 (D) $ 1,841,667 09/29/04 1,683,764 1,473,334
Limited Liability Company Unit (B) 470,176 uts. * 712,899 --
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 23,575 shs. 09/29/04 157,903 --
------------- -------------
2,554,566 1,473,334
------------- -------------
ROYAL BATHS MANUFACTURING COMPANY
A manufacturer and distributor of acrylic and cultured
marble bathroom products.
12.5% Senior Subordinated Notes due 2011 $ 1,062,500 11/14/03 979,090 1,083,750
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 140 shs. 11/14/03 122,946 160,930
------------- -------------
1,102,036 1,244,680
------------- -------------
SAFETY SPEED CUT MANUFACTURING COMPANY, INC.
A manufacturer of vertical panel saws and routers for the
wood working industry.
Class B Common Stock (B) 1,480 shs. 06/02/99 256,212 1,159,152
------------- -------------
SAVAGE SPORTS HOLDING, INC.
A manufacturer of sporting firearms.
12% Senior Subordinated Note due 2012 $ 1,538,793 09/10/04 1,450,650 1,579,089
Common Stock (B) 586 shs. 09/10/04 586,207 812,954
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 134 shs. 09/10/04 113,578 185,304
------------- -------------
2,150,435 2,577,347
------------- -------------
SPECIALTY FOODS GROUP, INC.
A manufacturer and distributor of branded meat products.
Limited Partnership Interest of MHD Holdings LLC 1.43% int. 08/29/00 684,724 --
------------- -------------
STANTON CARPET HOLDING CO.
A designer and marketer of high and mid-priced decorative
carpets and rugs.
12.13% Senior Subordinated Note due 2014 $ 2,239,024 08/01/06 2,106,847 2,218,922
Common Stock (B) 311 shs. 08/01/06 310,976 279,882
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 104 shs. 08/01/06 93,293 1
------------- -------------
2,511,116 2,498,805
------------- -------------
*09/29/04, 06/04/07 and 06/14/07.
---------------------------------------------------------------------------------------------------------------------------------
18
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
STRATEGIC EQUIPMENT & SUPPLY CORPORATION, INC.
A provider of kitchen and restaurant design, equipment
fabrication and installation services.
Warrant, exercisable until 2008, to purchase
common stock at $.01 per share (B) 106,539 shs. 01/14/00 $ 658,751 $ --
------------- -------------
SYNVENTIVE EQUITY LLC
A manufacturer of hot runner systems used in the plastic
injection molding process.
Limited Liability Company Unit (B) 1.99% int. 08/20/03 63,207 14,100
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 86,780 shs. 08/21/03 19,359 19,359
------------- -------------
82,566 33,459
------------- -------------
TANGENT RAIL CORPORATION
A manufacturer of rail ties and provides specialty services
to the North American railroad industry.
13% Senior Subordinated Note due 2013 $ 2,217,385 10/14/05 1,918,512 2,261,733
Common Stock (B) 2,203 shs. 10/14/05 2,203 704,634
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 1,167 shs. 10/14/05 294,403 373,268
------------- -------------
2,215,118 3,339,635
------------- -------------
TERRA RENEWAL SERVICES, INC.
A provider of wastewater residual management and
required environmental reporting, permitting, nutrient
management planning and record keeping to companies
involved in poultry and food processing.
8.61% Senior Secured Tranche B Note due 2012 (C) $ 1,450,043 * 1 ,444,894 1,436,260
10.5% Senior Secured Tranche B Note due 2012 (C) $ 75,986 * 75,986 75,264
12% Senior Subordinated Note due 2014 $ 1,162,110 ** 1,107,665 1,152,219
Limited Partnership Interest of
Saw Mill Capital Fund V, L.P. 2.30% int. 03/01/05 116,285 131,836
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 72 shs. 04/28/06 60,597 32,959
------------- -------------
2,805,427 2,828,538
------------- -------------
TOTAL EQUIPMENT & SERVICE, INC.
A manufacturer of a wide variety of equipment used in the
oil and gas industry.
10.5% Senior Secured Term Note due 2013 $ 851,351 03/02/07 838,580 832,988
13% Senior Subordinated Note due 2014 $ 598,450 03/02/07 490,608 582,077
Common Stock (B) 125,199 shs. 03/02/07 125,199 118,939
Warrant, exercisable until 2014 to purchase
common stock at $.01 per share (B) 34,533 shs. 03/02/07 95,873 345
------------- -------------
1,550,260 1,534,349
------------- -------------
THE TRANZONIC COMPANIES
A producer of commercial and industrial supplies,
such as safety products, janitorial supplies, work
apparel, washroom and restroom supplies and sanitary
care products.
13% Senior Subordinated Note due 2009 $ 2,712,000 02/05/98 2,594,178 2,712,000
Common Stock (B) 630 shs. 02/04/98 630,000 217,510
Warrant, exercisable until 2009, to purchase
common stock at $.01 per share (B) 444 shs. 02/05/98 368,832 153,293
------------- -------------
3,593,010 3,082,803
------------- -------------
*04/28/06 and 12/21/06.
**04/28/06 and 09/13/06.
---------------------------------------------------------------------------------------------------------------------------------
19
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
TRANSTAR HOLDING COMPANY
A distributor of aftermarket automotive transmission parts.
12% Senior Subordinated Note due 2013 $ 1,734,000 08/31/05 $ 1,666,702 $ 1,761,187
Common Stock (B) 1,078 shs. * 1,078,450 1,075,342
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 86 shs. 08/31/05 77,485 85,692
------------- -------------
2,822,637 2,922,221
------------- -------------
TRONAIR, INC.
A designer, engineer and manufacturer of ground support
equipment for the business, commuter and commercial
aviation markets.
10.5% Senior Secured Term Note due 2008 $ 395,108 01/20/00 395,108 397,197
12% Senior Subordinated Note due 2010 $ 1,326,500 01/20/00 1,294,200 1,353,770
Common Stock (B) 227,400 shs. 01/20/00 227,400 941,912
Warrant, exercisable until 2010, to purchase
common stock at $1 per share (B) 260,563 shs. 01/20/00 98,540 1,079,276
------------- -------------
2,015,248 3,772,155
------------- -------------
TRUCK BODIES & EQUIPMENT INTERNATIONAL
A designer and manufacturer of accessories for heavy and
medium duty trucks, primarily dump bodies, hoists,
various forms of flat-bed bodies, landscape bodies and
other accessories.
12% Senior Subordinated Note due 2013 $ 2,309,541 ** 2,163,143 2,311,480
Common Stock (B) 742 shs. ** 800,860 1,268,905
Warrant, exercisable until 2013, to purchase
common stock at $.02 per share (B) 153 shs. ** 159,894 262,075
------------- -------------
3,123,897 3,842,460
------------- -------------
TRUSTILE DOORS, INC.
A manufacturer and distributor of interior doors.
12.5% Senior Subordinated Note due 2010 $ 1,062,500 04/11/03 1,013,169 1,073,125
Warrant, exercisable until 2010, to purchase
common stock at $.01 per share (B) 5,781 shs. 04/11/03 87,438 274,574
------------- -------------
1,100,607 1,347,699
------------- -------------
U S S HOLDINGS, INC.
A producer of high grade industrial and specialty
silica sands.
14% Redeemable Preferred Stock (B) 997 shs. 09/30/99 545,858 933,236
Convertible Preferred Stock Series A and B, convertible
into common stock at $8.02 per share (B) 145,446 shs. 12/19/96 1,166,830 --
Common Stock (B) 20,027 shs. 09/30/99 799,068 --
Warrants, exercisable until 2010 to
purchase common stock at $.01 per share (B) 4,918 shs. *** 128,372 --
------------- -------------
2,640,128 933,236
------------- -------------
U-LINE CORPORATION
A manufacturer of high-end, built-in, undercounter ice
making, wine storage and refrigeration appliances.
12.5% Senior Subordinated Note due 2012 $ 1,882,100 04/30/04 1,724,624 1,882,100
Common Stock (B) 182 shs. 04/30/04 182,200 200,064
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 230 shs. 04/30/04 211,735 253,010
------------- -------------
2,118,559 2,335,174
------------- -------------
*08/31/05 and 04/30/07.
**07/19/05 and 12/22/05.
***12/19/96 and 09/30/99.
---------------------------------------------------------------------------------------------------------------------------------
20
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2007
(Unaudited)
Shares, Units,
Warrants,
Ownership
or Principal Acquisition Fair
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Amount Date Cost Value
---------------------------------------------------------------------------------------------------------------------------------
VICTORY VENTURES LLC
An acquirer of controlling or substantial interests
in other entities.
Series A Preferred Units 0.15% int. 12/02/96 $ 1 $ --
------------- -------------
VISIONEERING, INC.
A designer and manufacturer of tooling and fixtures
for the aerospace industry.
10.5% Senior Secured Term Loan due 2013 $ 802,941 05/17/07 790,897 788,895
13% Senior Subordinated Note due 2014 $ 648,530 05/17/07 581,088 640,182
Common Stock (B) 123,529 shs. 05/17/07 123,529 117,353
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 35,006 shs. 05/17/07 55,055 350
------------- -------------
1,550,569 1,546,780
------------- -------------
VITALITY FOODSERVICE, INC.
A non-carbonated beverage dispensing company focused
on the foodservice industry.
15% Senior Subordinated Note due 2011 $ 2,028,834 09/24/04 1,879,355 1,825,951
Common Stock (B) 26,456 shs. * 264,558 211,648
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 23,787 shs. 09/24/04 186,883 190,295
------------- -------------
2,330,796 2,227,894
------------- -------------
VITEX PACKAGING GROUP, INC.
A manufacturer of specialty packaging, primarily
envelopes and tags used on tea bags.
12.5% Senior Subordinated Note due 2012 $ 1,700,000 07/19/04 1,483,065 1,553,477
Limited Liability Company Unit Class A (B) 1.75% int. 07/19/04 414,375 224,968
Limited Liability Company Unit Class B (B) 0.77% int. 07/19/04 182,935 99,317
------------- -------------
2,080,375 1,877,762
------------- -------------
WALLS INDUSTRIES, INC.
A provider of branded workwear and sporting
goods apparel.
12.36% Senior Subordinated Lien Note due 2009 (C) $ 652,413 07/12/04 652,413 653,258
14% Senior Subordinated Note due 2012 $ 1,085,380 07/12/04 1,082,856 1,107,088
Limited Partnership Interest (B) 0.40% int. 07/12/04 37,280 787,109
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 4,029 shs. 07/12/04 2,833 85,060
------------- -------------
1,775,382 2,632,515
------------- -------------
WELLBORN FOREST HOLDING CO.
A manufacturer of semi-custom kitchen and bath cabinetry.
12.13% Senior Subordinated Note due 2014 $ 1,721,250 11/30/06 1,603,666 1,664,249
Common Stock (B) 191 shs. 11/30/06 191,250 181,688
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 95 shs. 11/30/06 86,493 1
------------- -------------
1,881,409 1,845,938
------------- -------------
WORKPLACE MEDIA HOLDING CO.
A direct marketer specializing in providing advertisers with
access to consumers in the workplace.
13% Senior Subordinated Note due 2015 $ 1,159,196 05/14/07 1,053,084 1,127,813
Limited Partnership Interests (B) 115,804 uts. 05/14/07 115,804 110,014
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 88 shs. 05/14/07 83,462 1
------------- -------------
1,252,350 1,237,828
------------- -------------
TOTAL PRIVATE PLACEMENT INVESTMENTS $ 182,852,674 $ 180,957,476
------------- -------------
*09/24/04 and 12/22/06.
---------------------------------------------------------------------------------------------------------------------------------
21
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2007
(Unaudited)
Shares or
Interest Due Principal
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Rate Date Amount Cost Fair Value
------- -------- ------------ ------------ ------------
RULE 144A SECURITIES - 6.54%:
BONDS - 6.54%
American Tire Distributor (C) 11.600% 04/01/12 $ 1,000,000 $ 950,000 $ 1,010,000
Aramark Corporation 8.500 02/01/15 200,000 200,000 203,000
Aramark Corporation (C) 8.836 02/01/15 200,000 200,000 203,000
Bombardier, Inc. 6.300 05/01/14 1,000,000 890,000 950,000
Bristow Group, Inc. 7.500 09/15/17 150,000 150,000 150,375
Calpine Corporation 8.750 07/15/13 500,000 465,000 540,000
Chaparral Energy, Inc. 8.875 02/01/17 1,500,000 1,491,780 1,481,250
Charter Communications Op LLC 8.000 04/30/12 250,000 249,375 253,125
Community Health Systems 8.875 07/15/15 900,000 893,646 912,375
Douglas Dynamics LLC 7.750 01/15/12 630,000 633,000 598,500
G F S I, Inc. (C) 11.500 06/01/11 750,000 682,541 772,500
H C A, Inc. 9.250 11/15/16 975,000 991,787 1,038,375
Hawker Beechcraft Acquisition Co. 9.750 04/01/17 750,000 778,000 783,750
Kar Holdings, Inc. 8.750 05/01/14 50,000 50,000 49,000
Kar Holdings, Inc. 10.000 05/01/15 100,000 100,000 97,500
Packaging Dynamics Corporation of America 10.000 05/01/16 1,250,000 1,256,607 1,256,250
Rental Service Corporation 9.500 12/01/14 1,000,000 1,013,763 1,020,000
Rite Aid Corporation 9.500 02/01/15 600,000 593,326 576,000
Steel Dynamics, Inc. 6.750 04/01/15 200,000 200,000 194,500
Stewart & Stevenson LLC 10.000 07/15/14 1,500,000 1,539,351 1,567,500
Tenaska Alabama Partners LP 7.000 06/30/21 342,701 342,701 350,662
Tesoro Petroleum Corporation 6.500 06/01/17 500,000 500,000 488,750
Tube City IMS Corporation 9.750 02/01/15 625,000 649,424 640,625
Tunica-Biloxi Gaming Authority 9.000 11/15/15 1,000,000 1,031,048 1,045,000
Valassis Communications, Inc. 8.250 03/01/15 790,000 770,850 770,250
------------ ------------
TOTAL BONDS $ 16,622,199 16,952,287
------------ ------------
COMMON STOCK - 0.00%
Jordan Telecom Products (B) 70 $ 14,000 --
------------ ------------
TOTAL COMMON STOCK 14,000 --
------------ ------------
WARRANTS - 0.00%
Winsloew Furniture, Inc. (B) 900 $ 9 $ --
------------ ------------
TOTAL WARRANTS 9 --
------------ ------------
TOTAL RULE 144A SECURITIES 16,636,208 16,952,287
------------ ------------
TOTAL CORPORATE RESTRICTED SECURITIES $199,488,882 $197,909,763
------------ ------------
---------------------------------------------------------------------------------------------------------------------------------
22
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2007
(Unaudited)
Interest Due Principal
CORPORATE PUBLIC SECURITIES - 27.53%: (A) Rate Date Amount Cost Market Value
------- -------- ------------ ------------ ------------
BONDS - 25.43%
A M C Entertainment, Inc. 11.000% 02/01/16 $ 815,000 $ 817,344 $ 900,575
Activant Solutions, Inc. 9.500 05/01/16 150,000 150,000 147,375
Affinia Group, Inc. 9.000 11/30/14 1,010,000 936,110 989,800
Alamosa Delaware, Inc. 11.000 07/31/10 325,000 328,304 344,328
Alamosa Delaware, Inc. 8.500 01/31/12 400,000 400,000 420,048
ALH Fin LLC / ALH Fin Corporation 8.500 01/15/13 1,550,000 1,519,557 1,538,375
Allied Waste NA 7.875 04/15/13 1,000,000 1,020,744 1,011,250
Appleton Papers, Inc. 8.125 06/15/11 300,000 300,000 309,000
Atlas Pipeline Partners 8.125 12/15/15 200,000 200,000 199,500
Bally Total Fitness Holdings Corporation 9.875 10/15/07 135,000 128,925 132,638
Basic Energy Services 7.125 04/15/16 225,000 225,000 214,875
Blockbuster, Inc. (C) 9.000 09/01/12 475,000 475,848 439,375
Brigham Exploration Co. 9.625 05/01/14 700,000 690,403 694,750
CCH I Holdings LLC 11.125 01/15/14 2,000,000 1,573,688 1,935,000
Cablevision Systems Corporation 8.000 04/15/12 1,000,000 1,012,540 987,500
Cenveo Corporation 7.875 12/01/13 1,100,000 1,100,000 1,078,000
Cincinnati Bell, Inc. 8.375 01/15/14 1,100,000 1,007,500 1,111,000
Clayton Williams Energy, Inc. 7.750 08/01/13 800,000 800,000 736,000
Dave and Buster's, Inc. 11.250 03/15/14 1,500,000 1,536,655 1,537,500
Del Monte Corporation 8.625 12/15/12 225,000 225,000 232,313
Dynegy Holdings, Inc. 6.875 04/01/11 500,000 422,500 491,250
Dynegy Holdings, Inc. 8.375 05/01/16 330,000 330,000 322,575
Edison Mission Energy 7.750 06/15/16 55,000 55,000 54,725
Esterline Technologies 7.750 06/15/13 200,000 200,000 202,000
Flextronics International Ltd. 6.500 05/15/13 400,000 400,000 377,000
Ford Motor Credit Co. 7.375 10/28/09 1,250,000 1,246,875 1,240,820
Ford Motor Credit Co. 8.000 12/15/16 300,000 294,966 286,548
Freeport-McMoran Copper & Gold 8.375 04/01/17 385,000 385,000 410,988
Gencorp, Inc. 9.500 08/15/13 259,000 259,000 277,130
General Motors Acceptance Corporation 7.750 01/19/10 1,250,000 1,286,733 1,265,416
General Motors Corporation 8.250 07/15/23 1,500,000 1,388,750 1,366,875
Goodyear Tire & Rubber Co. 7.857 08/15/11 1,400,000 1,342,750 1,428,000
GulfMark Offshore, Inc. 7.750 07/15/14 565,000 562,599 570,650
Hawaiian Telcom Communication 12.500 05/01/15 1,425,000 1,565,267 1,617,375
Idearc, Inc. 8.000 11/15/16 600,000 600,000 606,000
Inergy LP 8.250 03/01/16 150,000 150,000 154,125
Interline Brands, Inc. 8.125 06/15/14 325,000 322,670 327,438
Iron Mountain, Inc. 8.750 07/15/18 1,065,000 1,099,094 1,096,950
Koppers, Inc. 9.875 10/15/13 477,000 477,000 509,198
Land O'Lakes, Inc. 9.000 12/15/10 750,000 750,000 789,375
Lazard LLC 7.125 05/15/15 750,000 749,408 773,643
Leucadia National Corporation 7.000 08/15/13 650,000 660,353 637,000
Liberty Media Corporation 5.700 05/15/13 1,000,000 951,610 939,915
Mac-Gray Corporation 7.625 08/15/15 600,000 600,000 603,000
Majestic Star Casino LLC 9.500 10/15/10 500,000 500,000 520,000
Manitowoc Company, Inc. 7.125 11/01/13 200,000 200,000 200,500
Mariner Energy, Inc. 8.000 05/15/17 800,000 805,428 794,000
Markwest Energy Operating Co. 6.875 11/01/14 775,000 763,000 732,375
Mediacom Broadband LLC 8.500 10/15/15 1,000,000 1,021,448 1,005,000
Metaldyne Corporation 11.000 06/15/12 750,000 601,250 765,000
Metaldyne Corporation (C) 10.000 11/01/13 510,000 513,309 540,600
N R G Energy, Inc. 7.375 02/01/16 175,000 175,000 175,438
N T L Cable PLC 9.125 08/15/16 980,000 1,002,280 1,026,550
Nalco Co. 7.750 11/15/11 500,000 500,000 503,750
Neiman Marcus Group, Inc. 10.375 10/15/15 1,250,000 1,250,000 1,375,000
Newark Group, Inc. 9.750 03/15/14 850,000 796,863 864,875
North American Energy Partners 8.750 12/01/11 400,000 400,000 404,000
NOVA Chemicals Corporation (C) 8.484 11/15/13 475,000 475,000 475,000
O E D Corp./Diamond Jo Company Guarantee 8.750 04/15/12 1,000,000 985,960 1,000,000
---------------------------------------------------------------------------------------------------------------------------------
23
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2007
(Unaudited)
Interest Due Principal
CORPORATE PUBLIC SECURITIES:(A)(Continued) Rate Date Amount Cost Market Value
------- -------- ------------ ------------ ------------
BONDS, CONTINUED
Offshore Logistics, Inc. 6.125% 06/15/13 $ 450,000 $ 450,000 $ 424,125
P Q Corporation 7.500 02/15/13 1,100,000 1,088,750 1,166,000
Pacific Energy Partners 7.125 06/15/14 500,000 503,526 517,310
Pacific Energy Partners 6.250 09/15/15 150,000 149,316 147,349
Petrohawk Energy Corp. 9.125 07/15/13 1,000,000 997,719 1,057,500
Pliant Corporation 11.125 09/01/09 550,000 539,000 539,000
Pliant Corporation (C) 11.850 06/15/09 882,910 887,491 949,128
Pregis Corporation 12.375 10/15/13 1,000,000 981,490 1,125,000
Primedia, Inc. 8.000 05/15/13 1,000,000 1,021,248 1,052,500
Quality Distribution, Inc. 9.000 11/15/10 1,030,000 1,001,575 999,100
Quality Distribution, Inc. (C) 9.860 01/15/12 545,000 547,688 550,450
Quicksilver Resources, Inc. 7.125 04/01/16 500,000 500,000 482,500
Rent-A-Center, Inc. 7.500 05/01/10 400,000 400,000 406,000
Rock-Tenn Co. 8.200 08/15/11 175,000 176,035 180,250
Sbarro, Inc. 10.375 02/01/15 1,000,000 1,019,529 973,750
Sheridan Acquisition Corporation 10.250 08/15/11 375,000 370,000 393,750
Sierra Pacific Resources 6.750 08/15/17 635,000 638,050 624,243
Stanadyne Corporation 10.000 08/15/14 1,500,000 1,500,000 1,586,250
Stratos Global 9.875 02/15/13 575,000 578,513 610,938
Tekni-Plex, Inc. 12.750 06/15/10 1,000,000 960,125 890,000
Tekni-Plex, Inc. 8.750 11/15/13 650,000 655,483 643,500
Tenet Healthcare Corporation 9.875 07/01/14 500,000 488,370 495,000
Tenneco, Inc. 8.625 11/15/14 1,000,000 1,002,479 1,030,000
Tennessee Gas Pipeline Co. 7.000 03/15/27 500,000 523,506 514,378
Texas Industries, Inc. 7.250 07/15/13 70,000 70,000 70,175
Titan International, Inc. 8.000 01/15/12 150,000 150,000 154,125
Trimas Corporation 9.875 06/15/12 823,000 764,250 845,630
Triton PCS, Inc. 8.500 06/01/13 550,000 550,000 562,375
Unisys Corporation 8.000 10/15/12 190,000 190,000 184,775
United Components, Inc. 9.375 06/15/13 1,080,000 1,081,374 1,115,100
United Rentals, Inc. 7.750 11/15/13 625,000 625,000 625,780
United Rentals, Inc. 7.000 02/15/14 500,000 500,000 487,500
Universal City Florida (C) 10.106 05/01/10 200,000 200,000 204,000
Universal City Florida 8.375 05/01/10 200,000 200,000 204,500
Vought Aircraft Industries 8.000 07/15/11 1,000,000 999,366 995,000
Warner Music Group Corporation 7.375 04/15/14 275,000 275,000 255,750
Waste Services, Inc. 9.500 04/15/14 1,100,000 1,123,024 1,156,375
------------ ------------
TOTAL BONDS $ 64,244,638 $ 65,908,392
------------ ------------
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24
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2007
(Unaudited)
Shares or
Interest Due Principal
CORPORATE PUBLIC SECURITIES:(A)(Continued) Rate Date Amount Cost Market Value
------- -------- ------------ ------------ ------------
COMMON STOCK - 1.87%
Bally Total Fitness Holdings Corporation (B) 600 $ 5,520 $ 288
EnerNOC, Inc. (B) 46,500 1,283,262 1,773,045
PepsiAmericas, Inc. 92,145 2,006,365 2,263,081
Supreme Industries, Inc. 115,721 267,322 803,104
------------ ------------
TOTAL COMMON STOCK 3,562,469 4,839,518
------------ ------------
CONVERTIBLE BONDS - 0.23%
Citadel Broadcasting Corporation 1.875% 02/15/11 $ 700,000 $ 543,375 $ 602,000
------------ ------------
TOTAL CONVERTIBLE BONDS 543,375 602,000
------------ ------------
TOTAL CORPORATE PUBLIC SECURITIES $ 68,350,482 $ 71,349,910
------------ ------------
Interest Due Principal
SHORT-TERM SECURITIES: Rate/Yield* Date Amount Cost Market Value
------- -------- ------------ ------------ ------------
COMMERCIAL PAPER - 2.11%
Lennar Corporation 5.453% 07/03/07 $ 1,500,000 $ 1,499,319 $ 1,499,319
Textron Financial Corporation 5.386 07/06/07 1,523,000 1,521,634 1,521,634
Walt Disney Co. 5.376 07/09/07 2,443,000 2,442,265 2,442,265
------------ ------------
TOTAL SHORT-TERM SECURITIES $ 5,463,218 $ 5,463,218
------------ ------------
TOTAL INVESTMENTS 106.01% $273,302,582 $274,722,891
============ ------------
Other Assets 3.34 8,643,393
Liabilities (9.35) (24,229,588)
------ ------------
TOTAL NET ASSETS 100.00% $259,136,696
====== ============
(A) In each of the convertible note, warrant, convertible preferred and common stock investments, the issuer has agreed to
provide certain registration rights.
(B) Non-income producing security.
(C) Variable rate security; rate indicated is as of 06/30/07.
(D) Defaulted security; interest not accrued.
* Effective yield at purchase
See Notes to Consolidated Financial Statements.
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25
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2007
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION: Market Value Market Value
------------ ------------
AEROSPACE - 3.39% BUILDINGS & REAL ESTATE - 1.50%
Consolidated Foundries Holdings $ 3,100,907 K W P I Holdings Corporation $ 2,482,712
Esterline Technologies 202,000 Texas Industries, Inc. 70,175
Gencorp, Inc. 277,130 TruStile Doors, Inc. 1,347,699
P A S Holdco LLC 2,673,452 ------------
Visioneering, Inc. 1,546,780 3,900,586
Vought Aircraft Industries 995,000 ------------
------------ CHEMICAL, PLASTICS & RUBBER - 1.20%
8,795,269 Capital Specialty Plastics, Inc. 447,145
------------ Koppers, Inc. 509,198
AUTOMOBILE - 9.23% Nalco Co. 503,750
American Tire Distributor 1,010,000 NOVA Chemicals Corporation 475,000
Ford Motor Credit Co. 1,527,368 P Q Corporation 1,166,000
Fuel Systems Holding Corporation 2,747,187 ------------
General Motors Acceptance Corporation 1,265,416 3,101,093
General Motors Corporation 1,366,875 ------------
Goodyear Tire & Rubber Co. 1,428,000 CONSUMER PRODUCTS - 9.47%
Jason, Inc. 1,692,689 Aero Holdings, Inc. 3,052,243
LIH Investors, L.P. -- ALH Fin LLC/ALH Fin Corporation 1,538,375
Metaldyne Corporation 1,305,600 Augusta Sportswear Holding Co. 3,248,887
Nyloncraft, Inc. 1,521,875 Bravo Sports Holding Corporation 2,439,616
Ontario Drive & Gear Ltd. 2,822,611 G F S I, Inc. 772,500
Qualis Automotive LLC 1,998,148 Kar Holdings, Inc. 146,500
Tenneco, Inc. 1,030,000 K N B Holdings Corporation 2,536,459
Titan International, Inc. 154,125 Momentum Holding Co. 1,263,849
Transtar Holding Company 2,922,221 R A J Manufacturing Holdings LLC 2,569,698
United Components, Inc. 1,115,100 Royal Baths Manufacturing Company 1,244,680
------------ The Tranzonic Companies 3,082,803
23,907,215 Walls Industries, Inc. 2,632,515
------------ Winsloew Furniture, Inc. --
BEVERAGE, DRUG & FOOD - 5.63% ------------
Aramark Corporation 406,000 24,528,125
Beta Brands Ltd. -- ------------
Dave and Buster's, Inc. 1,537,500 CONTAINERS, PACKAGING & GLASS - 5.83%
Del Monte Corporation 232,313 Flutes, Inc. 1,565,364
Eagle Pack Pet Foods, Inc. 1,634,128 Maverick Acquisition Company 994,438
Land O'Lakes, Inc. 789,375 P I I Holding Corporation 2,731,387
Nonni's Food Company 2,470,901 Packaging Dynamics Corporation of America 1,256,250
PepsiAmericas, Inc. 2,263,081 Paradigm Packaging, Inc. 2,539,959
Rite Aid Corporation 576,000 Pliant Corporation 1,488,128
River Ranch Fresh Foods LLC 1,473,334 Pregis Corporation 1,125,000
Sbarro, Inc. 973,750 Tekni-Plex, Inc. 1,533,500
Specialty Foods Group, Inc. -- Vitex Packaging Group, Inc. 1,877,762
Vitality Foodservice, Inc. 2,227,894 ------------
------------ 15,111,788
14,584,276 ------------
------------ DISTRIBUTION - 3.94%
BROADCASTING & ENTERTAINMENT - 3.10% Affina Group, Inc. 989,800
CCH I Holdings LLC 1,935,000 Duncan Systems, Inc. 1,552,662
Cablevision Systems Corporation 987,500 Kele and Associates, Inc. 2,452,894
Cenveo Corporation 1,078,000 Magnatech International, Inc. 2,292,365
Charter Communications Op LLC 253,125 O R S Nasco Holding, Inc. 2,927,085
Citadel Broadcasting Corporation 602,000 QualServ Corporation -
Liberty Media Corporation 939,915 Strategic Equipment & Supply Corporation, Inc. --
Mediacom Broadband LLC 1,005,000 ------------
Workplace Media Holding Co. 1,237,828 10,214,806
------------ ------------
8,038,368
------------
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26
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2007
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION:(Cont.) Market Value Market Value
------------ ------------
DIVERSIFIED/CONGLOMERATE, HEALTHCARE, EDUCATION
MANUFACTURING - 7.19% & CHILDCARE - 4.04%
Activant Solutions, Inc. $ 147,375 A T I Acquisition Company $ 2,198,812
Arrow Tru-Line Holdings, Inc. 1,958,176 American Hospice Management Holding LLC 2,592,922
Bombardier, Inc. 950,000 Community Health Systems 912,375
Coining Corporation of America LLC 2,587,570 F H S Holdings LLC 2,650,497
Dexter Magnetics Technologies, Inc. 2,567,157 H C A, Inc. 1,038,375
Douglas Dynamics LLC 598,500 MedAssist, Inc. 578,953
Evans Consoles, Inc. -- Tenet Healthcare Corporation 495,000
Postle Aluminum Company LLC 2,537,164 ------------
Radiac Abrasives, Inc. 2,590,197 10,466,934
Trimas Corporation 845,630 ------------
Truck Bodies & Equipment International 3,842,460 HOME & OFFICE FURNISHINGS,
------------ HOUSEWARES, AND DURABLE
18,624,229 CONSUMER PRODUCTS - 6.41%
------------ Connor Sport Court International, Inc. 1,000,561
DIVERSIFIED/CONGLOMERATE, H M Holding Company 2,301,515
SERVICE - 3.17% Home Decor Holding Company 2,412,998
Allied Waste NA 1,011,250 Justrite Manufacturing Acquisition Co. 1,803,368
CapeSuccess LLC 5,862 Monessen Holding Corporation 2,401,941
Diversco, Inc./DHI Holdings, Inc. -- Stanton Carpet Holding Co. 2,498,805
Dwyer Group, Inc. 1,053,960 U-Line Corporation 2,335,174
Fowler Holding, Inc. 2,468,327 Wellborn Forest Holding Co. 1,845,938
Interline Brands, Inc. 327,438 ------------
Iron Mountain, Inc. 1,096,950 16,600,300
Mac-Gray Corporation 603,000 ------------
Mail Communications Group, Inc. 1,229,448 LEISURE, AMUSEMENT,
Moss, Inc. 431,175 ENTERTAINMENT - 4.55%
------------ A M C Entertainment, Inc. 900,575
8,227,410 Bally Total Fitness Holding Corporation 132,926
------------ Electra Bicycle Company, Inc. 1,573,478
ELECTRONICS - 2.61% Keepsake Quilting, Inc. 1,491,164
Calpine Corporation 540,000 Majestic Star Casino LLC 520,000
Connecticut Electric, Inc. 2,591,075 O E D Corp/Diamond Jo Company Guarantee 1,000,000
Directed Electronics, Inc. 3,258,069 Overton's Holding Company 1,886,399
Flextronics International Ltd. 377,000 Savage Sports Holding, Inc. 2,577,347
------------ Tunica-Biloxi Gaming Authority 1,045,000
6,766,144 Universal City Florida 408,500
------------ Warner Music Group Corporation 255,750
FARMING & AGRICULTURE - 0.00% ------------
Protein Genetics, Inc. -- 11,791,139
------------ ------------
FINANCIAL SERVICES - 0.85% MACHINERY - 9.74%
Hawker Beechcraft Acquisition Co. 783,750 Davis-Standard LLC 2,530,022
Highgate Capital LLC -- Integration Technology Systems, Inc. 832,222
Lazard LLC 773,643 Manitowoc Company, Inc. 200,500
Leucadia National Corporation 637,000 Maxon Corporation 4,008,899
Victory Ventures LLC -- Morton Industrial Group, Inc. 2,451,553
------------ Navis Global 2,498,907
2,194,393 NetShape Technologies, Inc. 2,446,222
------------ Pacific Consolidated Holdings LLC 1,346,086
Safety Speed Cut Manufacturing Company, Inc. 1,159,152
Stanadyne Corporation 1,586,250
Stewart & Stevenson LLC 1,567,500
Supreme Industries, Inc. 803,104
Synventive Equity LLC 33,459
Tronair, Inc. 3,772,155
------------
25,236,031
------------
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27
CONSOLIDATED SCHEDULE OF INVESTMENTS(CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2007
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION:(Cont.) Market Value Market Value
------------ ------------
MEDICAL DEVICES/BIOTECH - 2.43% RETAIL STORES - 2.89%
Coeur, Inc. $ 1,372,972 Blockbuster, Inc. $ 439,375
E X C Acquisition Corporation 157,801 Neiman Marcus Group, Inc. 1,375,000
MicroGroup, Inc. 3,234,722 Olympic Sales, Inc. 3,132,284
OakRiver Technology, Inc. 1,537,430 Rent-A-Center, Inc. 406,000
------------ Rental Service Corporation 1,020,000
6,302,925 United Rentals, Inc. 1,113,280
------------ ------------
MINING, STEEL, IRON & NON PRECIOUS 7,485,939
METALS - 0.84% ------------
Freeport-McMoran Copper & Gold 410,988 TECHNOLOGY - 0.76%
Steel Dynamics, Inc. 194,500 EnerNOC, Inc. 1,773,045
Tube City IMS Corporation 640,625 Unisys Corporation 184,775
U S S Holdings, Inc. 933,236 ------------
------------ 1,957,820
2,179,349 ------------
------------ TELECOMMUNICATIONS - 3.45%
NATURAL RESOURCES - 0.19% Alamosa Delaware, Inc. 764,376
Appleton Papers, Inc. 309,000 Cincinnati Bell, Inc. 1,111,000
Rock-Tenn Co. 180,250 DeltaCom 3,249,106
------------ Hawaiian Telecom Communications 1,617,375
489,250 Jordan Telecom Products --
------------ N T L Cable PLC 1,026,550
OIL AND GAS - 3.35% Stratos Global 610,938
Atlas Pipeline Partners 199,500 Triton P C S, Inc. 562,375
Basic Energy Services 214,875 ------------
Brigham Exploration Co. 694,750 8,941,720
Bristow Group, Inc. 150,375 ------------
Chaparral Energy, Inc. 1,481,250 TRANSPORTATION - 2.35%
Clayton Williams Energy, Inc. 736,000 NABCO, Inc. 1,208,031
GulfMark Offshore, Inc. 570,650 Quality Distribution LLC 1,549,550
Mariner Energy, Inc. 794,000 Tangent Rail Corporation 3,339,635
North American Energy Partners 404,000 ------------
Offshore Logistics, Inc. 424,125 6,097,216
Quicksilver Resources, Inc. 482,500 ------------
Tennessee Gas Pipeline Co. 514,378 UTILITIES - 1.79%
Tesoro Petroleum Corporation 488,750 Dynegy Holdings, Inc. 813,825
Total Equipment & Service, Inc. 1,534,349 Edison Mission Energy 54,725
------------ Inergy LP 154,125
8,689,502 Markwest Energy Operating Co. 732,375
------------ N R G Energy, Inc. 175,438
PHARMACEUTICALS - 1.05% Pacific Energy Partners 664,659
CorePharma LLC 2,621,756 Petrohawk Energy Corporation 1,057,500
Enzymatic Therapy, Inc. 106,250 Sierra Pacific Resources 624,243
------------ Tenaska Alabama Partners LP 350,662
2,728,006 ------------
------------ 4,627,552
PUBLISHING/PRINTING - 1.42% ------------
Idearc, Inc. 606,000 WASTE MANAGEMENT / POLLUTION - 1.54%
Newark Group, Inc. 864,875 Terra Renewal Services, Inc. 2,828,538
Primedia, Inc. 1,052,500 Waste Services, Inc. 1,156,375
Sheridan Acquisition Corporation 393,750 ------------
Valassis Communications, Inc. 770,250 3,984,913
------------ ------------
3,687,375 TOTAL CORPORATE RESTRICTED AND
------------ PUBLIC SECURITIES - 103.91% $269,259,673
============
See Notes to Consolidated Financial Statements.
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28
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS
(Unaudited)
1. HISTORY
MassMutual Corporate Investors (the "Trust") commenced operations in 1971 as
a Delaware corporation. Pursuant to an Agreement and Plan of Reorganization
dated November 14, 1985, approved by shareholders, the Trust was reorganized
as a Massachusetts business trust under the laws of the Commonwealth of
Massachusetts, effective November 28, 1985.
The Trust is a diversified closed-end management investment company. Babson
Capital Management LLC ("Babson Capital"), a wholly-owned indirect subsidiary
of Massachusetts Mutual Life Insurance Company ("MassMutual"), acts as its
investment adviser. The Trust's investment objective is to maintain a
portfolio of securities providing a fixed yield while providing an
opportunity for capital gains by investing primarily in a portfolio of
privately placed below investment grade, long term corporate debt obligations
with equity features, such as common stocks, warrants, conversions rights, or
other equity features and, occasionally, preferred stocks, purchased directly
from their issuers.
On January 27,1998, the Board of Trustees authorized the formation of a
wholly-owned subsidiary ("MMCI Subsidiary Trust") for the purpose of holding
certain investments. The results of MMCI Subsidiary Trust have been included
in the accompanying consolidated financial statements. Footnote 2.D below
discusses the Federal tax consequences of the MMCI Subsidiary Trust.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
consistently by the Trust in the preparation of the consolidated financial
statements in conformity with accounting principles generally accepted in the
United States of America.
A. VALUATION OF INVESTMENTS:
Valuation of a security in the Trust's portfolio is made on the basis of
market price whenever market quotations are readily available and all
securities of the same class held by the Trust can be readily sold in such
market.
Nearly all securities which are acquired by the Trust directly from the
issuers and shares into which such securities may be converted or which may
be purchased on the exercise of warrants attached to such securities will be
subject to legal or contractual delays in, or restrictions on, resale and
will therefore be "restricted securities." Generally speaking, as contrasted
with open-market sales of unrestricted securities which may be effected
immediately if the market is adequate, restricted securities can be sold only
in a public offering for which a registration statement is in effect under
the Securities Act of 1933, as amended (the "1933 Act") or pursuant to a
transaction that is exempt from registration under the 1933 Act.
The value of restricted securities, and of any other assets for which there
are no reliable market quotations, is the fair value as determined in good
faith by the Trust's Board of Trustees (the "Trustees"). Each restricted
security is valued by the Trustees at the time of the acquisition thereof and
at least quarterly thereafter. The Trustees have established guidelines to
aid in the valuation of each security. Generally, restricted securities are
initially valued at cost or less at the time of acquisition by the Trust.
Values greater or less than cost are used thereafter for restricted
securities in appropriate circumstances. Among the factors ordinarily
considered are the existence of restrictions upon the sale of the security
held by the Trust; an estimate of the existence and extent of a market for
the security; the extent of any discount at which the security was acquired;
the estimated period of time during which the security will not be freely
marketable; the estimated expenses of registering or otherwise qualifying the
security for public sale; estimated underwriting commissions if underwriting
would be required to effect a sale; in the case of a convertible security,
whether or not it would trade on the basis of its stock equivalent; in the
case of a debt obligation which would trade independently of any equity
equivalent, the current yields on comparable securities; the estimated amount
of the floating supply of such securities available for purchase; the
proportion of the issue held by the Trust; changes in the financial condition
and prospects of the issuer; the existence of merger proposals or tender
offers affecting the issuer; and any other factors affecting fair value, all
in accordance with the Investment Company Act of 1940, as amended (the "1940
Act"). In making valuations, opinions of counsel may be relied upon as to
whether or not securities are restricted securities and as to the legal
requirements for public sale.
When market quotations are readily available for unrestricted securities of
an issuer, restricted securities of the same class are generally valued at a
discount from the market price of such unrestricted securities. The Trustees,
however, consider all factors in fixing any discount, including the filing of
a registration statement for such securities under the 1933 Act and any other
developments which are likely to increase the probability that the securities
may be publicly sold by the Trust without restriction.
--------------------------------------------------------------------------------
29
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS
(CONTINUED)
The Trustees meet at least once each quarter to approve the value of the
Trust's portfolio securities as of the close of business on the last business
day of the preceding quarter. This valuation requires the approval of a
majority of the Trustees of the Trust, including a majority of the Trustees
who are not interested persons of the Trust or of Babson Capital. In making
valuations, the Trustees will consider reports by Babson Capital analyzing
each portfolio security in accordance with the relevant factors referred to
above. Babson Capital has agreed to provide such reports to the Trust at
least quarterly.
The consolidated financial statements include private placement restricted
securities valued at $180,957,476 (69.83% of net assets) as of June 30, 2007
whose values have been estimated by the Trustees in the absence of readily
ascertainable market values. Due to the inherent uncertainty of valuation,
those estimated values may differ significantly from the values that would
have been used had a ready market for the securities existed, and the
differences could be material.
The values for Rule 144A restricted securities and corporate public
securities are stated at the last reported sales price or at prices based
upon quotations obtained from brokers and dealers as of June 30, 2007,
subject to discount where appropriate, and are approved by the Trustees.
Short-term securities with more than sixty days to maturity are valued at
fair value and short-term securities having a maturity of sixty days or less
are valued at amortized cost, which approximates market value.
B. ACCOUNTING FOR INVESTMENTS:
Investment transactions are accounted for on the trade date. Dividend income
is recorded on the ex-dividend date. Interest income is recorded on the
accrual basis, including the amortization of premiums and accretion of
discounts on bonds held using the yield-to-maturity method. The Trust does
not accrue income when payment is delinquent and when management believes
payment is questionable.
Realized gains and losses on investment transactions and unrealized
appreciation and depreciation of investments are reported for financial
statement and federal income tax purposes on the identified cost method.
C. USE OF ESTIMATES:
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from
those estimates.
D. FEDERAL INCOME TAXES:
The Trust has elected to be taxed as a "regulated investment company" under
the Internal Revenue Code and intends to maintain this qualification and to
distribute substantially all of its net taxable income to its shareholders.
In any year when net long-term capital gains are realized by the Trust,
management, after evaluating the prevailing economic conditions, will
recommend to the Trustees either to designate the net realized long-term
gains as undistributed and pay the federal capital gains taxes thereon or to
distribute all or a portion of such net gains.
The Trust is taxed as a regulated investment company and is therefore limited
as to the amount of non-qualified income that it may receive as the result of
operating a trade or business, e.g. the Trust's pro rata share of income
allocable to the Trust by a partnership operating company. The Trust's
violation of this limitation could result in the loss of its status as a
regulated investment company, thereby subjecting all of its net income and
capital gains to corporate taxes prior to distribution to its shareholders.
The Trust, from time-to-time, identifies investment opportunities in the
securities of entities that could cause such trade or business income to be
allocable to the Trust. The MMCI Subsidiary Trust (described in Footnote 1,
above) was formed in order to allow investment in such securities without
adversely affecting the Trust's status as a regulated investment company.
The MMCI Subsidiary Trust is not taxed as a regulated investment company.
Accordingly, prior to the Trust receiving any distributions from the MMCI
Subsidiary Trust, all of the MMCI Subsidiary Trust's taxable income and
realized gains, including non-qualified income and realized gains, is subject
to taxation at prevailing corporate tax rates. For the six months ended June
30, 2007, the MMCI Subsidiary Trust has accrued income tax expense of
$117,356 on net realized gains and has decreased deferred income tax expense
on net unrealized gains by $357,356.
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an
interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 supplements FASB
109
--------------------------------------------------------------------------------
30
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS
(CONTINUED)
by prescribing a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. The adoption of FIN 48 requires
financial statements to be adjusted to reflect only those tax positions that
are more likely than not to be sustained as of the adoption date. As of June
30, 2007, the Trust has properly recorded all tax liabilities.
E. DISTRIBUTIONS TO SHAREHOLDERS:
The Trust records distributions to shareholders from net investment income
and net realized gains, if any, on the exdividend date. The Trust's net
investment income dividend is declared four times per year, in April, July,
October, and December. The Trust's net realized capital gain distribution, if
any, is declared in December.
F. EXPENSE REDUCTION:
Citibank, N.A. ("Citibank") serves as custodian to the Trust. Pursuant to the
custodian agreements, Citibank receives a fee reduced by credits on cash
balances the Trust maintains with Citibank. All credit balances, if any, used
to reduce the Trust's custodian fees are reported as fees paid indirectly on
the Statement of Operations. For the six months ended June 30, 2007, there
were no credit balances used to reduce custodian fees.
3. INVESTMENT SERVICES CONTRACT
A. NEW INVESTMENT SERVICES CONTRACT:
An Investment Services Contract between the Trust and Babson Capital,
effective October 1, 2005 (the "New Contract"), provides for a quarterly
investment advisory fee of 0.3125% of the net asset value of the Trust each
quarter, which is approximately equal to 1.25% annually, with no performance
adjustment. The New Contract provides that for its first eighteen months, the
investment advisory fee cannot exceed the amount that Babson Capital would
have been paid under the prior Investment Services Contract with the Trust
dated July 1, 1988 (the "Prior Contract"). The eighteen month fee transition
period ended on March 31, 2007.
B. SERVICES:
Under the New Contract with the Trust, Babson Capital agrees to use its best
efforts to present to the Trust a continuing and suitable investment program
consistent with the investment objectives and policies of the Trust. Babson
Capital represents the Trust in any negotiations with issuers, investment
banking firms, securities brokers or dealers and other institutions or
investors relating to the Trust's investments. Under the New Contract, Babson
Capital provides administration of the day-to-day operations of the Trust and
provides the Trust with office space and office equipment, accounting and
bookkeeping services, and necessary executive, clerical and secretarial
personnel for the performance of the foregoing services.
C. PRIOR INVESTMENT SERVICES CONTRACT ADVISORY FEE:
Under the Prior Contract, the Trust paid Babson Capital a quarterly base rate
(the "Base Fee Rate") of 5/16 of 1% of the value of the Trust's net assets as
of the end of each fiscal quarter, approximately equivalent to 1.25% of the
net asset value of the Trust on an annual basis, plus or minus a quarterly
performance adjustment (the "Performance Adjustment") of up to 1/16 of 1% of
net asset value, approximately equivalent to plus or minus 0.25% on an annual
basis.
The Performance Adjustment was based on the Trust's performance as compared
to a benchmark rate of return (the "Target Rate") equal to 5.0 percentage
points plus an unweighted, arithmetic average of the rates of return of the
Standard & Poor's Industrials Composite (formerly called the Standard &
Poor's Industrial Price Index) and the Lehman Brothers Intermediate U.S.
Credit Index (formerly called the Lehman Brothers Corporate Bond Index) over
a rolling three-year period (the "Measurement Period") comprising the twelve
quarters ending on the last day of each quarter (the "Valuation Date"). The
Standard & Poor's Industrials Composite is not readily available to the
public. Babson Capital obtained the information for this index from Factset
Research Systems. The three-year annualized return for the Standard & Poor's
Industrials Composite for the period ended June 30, 2007 was 11.48%. Under
the Prior Contract, the Performance Adjustment was equal to 5% of the
difference between the Trust's actual rate of return over the Measurement
Period and the Target Rate. If the Trust's actual rate of return exceeded the
Target Rate, the Base Fee Rate increased by an amount equal to the
Performance Adjustment; if the Trust's actual rate of return was less than
the Target Rate, the Base Fee Rate was reduced by the Performance Adjustment.
Under the Prior Contract, the investment advisory fee payable by the Trust
was equal to the Base Fee Rate (as adjusted by the Performance Adjustment)
times the net asset value of the Trust as of the Valuation Date.
Additionally, Babson Capital agreed to waive, for each quarter beginning July
1, 2004, the amount, if any, by which the investment advisory fee calculated
in the manner described
--------------------------------------------------------------------------------
31
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS
(CONTINUED)
in the Prior Contract exceeded the sum of (i) 5/16 of 1% times the ending net
asset value for that quarter plus or minus (ii) the Performance Adjustment
applied against the average quarter end net assets for the Trust for the
twelve-quarter period ending on such quarter.
D. BASIS FOR BOARD RENEWAL OF NEW CONTRACT:
At a meeting of the Trustees held on April 27, 2007, the Trustees (including
a majority of the Trustees who are not "interested persons" of the Trust or
Babson Capital) unanimously approved a one year continuance of the New
Contract.
Prior to the meeting, the Trustees requested and received from Ropes & Gray
LLP, counsel to the Trust, a memorandum describing the Trustees' legal
responsibilities in connection with its review and reapproval of the New
Contract. The Trustees also requested and received from Babson Capital
extensive written and oral information regarding among other matters: the
principal terms of the New Contract; the reasons why Babson Capital was
proposing the continuance of the New Contract; Babson Capital and its
personnel; the Trust's investment performance, including comparative
performance information; the nature and quality of the services provided by
Babson Capital to the Trust; financial strength of Babson Capital; the fee
arrangements between Babson Capital and the Trust; fee and expense
information, including comparative fee and expense information; profitability
of the advisory arrangement to Babson Capital; and "fallout" benefits to
Babson Capital resulting from the New Contract.
Among other things, the Trustees discussed and considered with management (i)
the aforementioned guidance provided by Ropes & Gray LLP and the information
provided by Babson Capital prior to the meeting and (ii) the reasons Babson
Capital put forth in support of its recommendation that the Trustees approve
the continuance of the New Contract. These considerations are summarized
below.
NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY BABSON CAPITAL TO
THE TRUST
In evaluating the scope and quality of the services provided by Babson
Capital to the Trust, the Trustees considered, among other factors: (i) the
scope of services required to be provided by Babson Capital under the New
Contract; (ii) Babson Capital's ability to find and negotiate private
placement securities having equity features that are consistent with the
stated investment objectives of the Trust; (iii) the experience and quality
of Babson Capital's staff; (iv) the strength of Babson Capital's financial
condition; (v) the nature of the private placement market compared to public
markets (including the fact that finding, analyzing, negotiating and
servicing private placement securities is more labor-intensive than buying
and selling public securities and the administration of private placement
securities is more extensive, expensive, and requires greater time and
expertise than a portfolio of only public securities); (vi) the potential
advantages afforded to the Trust by its ability to co-invest in negotiated
private placements with MassMutual and its affiliates; and (vii) the
expansion of the scope of services provided by Babson Capital as a result of
recent regulatory and legislative initiatives that have required increased
legal, compliance and business attention and diligence. Based on such
considerations, the Trustees concluded that, overall, they are satisfied with
the nature, extent and quality of services provided by Babson Capital, and
expected to be provided in the future, under the New Contract.
INVESTMENT PERFORMANCE
The Trustees also examined the Trust's short-term, intermediate- term, and
long-term performance as compared against various benchmark indices presented
at the meeting, which showed that the Trust had outperformed such indices for
the 1-, 3-, 5-, and 10-year periods. In addition, the Trustees considered
comparisons of the Trust's performance with the performance of (i) selected
closed-end investment companies and funds that may invest in private
placement securities and/or bank loans; (ii) selected business development
companies with comparable types of investments; and (iii) investment
companies included in the Lipper closed-end bond universe. It was
acknowledged that, while such comparisons are helpful in judging performance,
they are not directly comparable in terms of types of investments due to the
fact that business development companies often report returns based on market
value, which is affected by factors other than the performance of the
underlying portfolio investments. Based on these considerations and the
detailed performance information provided to the Trustees at the regular
Board meetings each quarter, the Trustees concluded that the Trust's absolute
and relative performance over time have been sufficient to warrant renewal of
the New Contract.
ADVISORY FEE/COSTS OF SERVICES PROVIDED AND PROFITABILITY/ MANAGER'S
"FALL-OUT" BENEFITS
In connection with the Trustees' consideration of the advisory fee paid by
the Trust to Babson Capital under the New Contract. Babson Capital noted that
it was unaware of any registered closed-end investment companies that are
directly
--------------------------------------------------------------------------------
32
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS
(CONTINUED)
comparable to the Trust in terms of the types of investments and percentages
invested in private placement securities (which require more extensive
advisory and administrative services than a portfolio of publicly traded
securities, as previously discussed) other than MassMutual Participation
Investors, which also is advised by Babson Capital. Under the terms of its
Investment Advisory and Administrative Services Contract, MassMutual
Participation Investors is charged a quarterly investment advisory fee of
0.225% of net asset value as of the end of each quarter, which is
approximately equal to 0.90% annually. In considering the fee rate provided
in the New Contract, the Trustees noted the advisory fee charged by Babson
Capital to Tower Square Capital Partners, L.P. and Tower Square Capital
Partners II, L.P., both private mezzanine funds also managed by Babson
Capital.
At the request of the Trustees, Babson Capital provided information
concerning the profitability of Babson Capital's advisory relationship with
the Trust. The Trustees also considered the non-economic benefits Babson
Capital and its affiliates derived from its relationship with the Trust,
including the reputational benefits derived from having the Trust listed on
the New York Stock Exchange, and the de minimis amount of commissions
resulting from the Trust's portfolio transactions used by Babson Capital for
third-party soft dollar arrangements (less than $1,000). The Trustees
recognized that Babson Capital should be entitled to earn a reasonable level
of profit for services provided to the Trust and, based on their review,
concluded that they were satisfied that Babson Capital's historical level of
profitability from its relationship with the Trust was not excessive and that
the advisory fee structure under the New Contract is reasonable.
ECONOMIES OF SCALE
The Trustees considered the concept of economies of scale and possible
advisory fee reductions if the Trust were to grow in assets. Given that the
Trust is not continuously offering shares, such growth comes principally from
retained net realized gain on investments and dividend reinvestment. The
Trustees also examined the breakpoint features of selected competitive funds
and noted that the minimum starting point for fee reductions in those funds
was at least $200 million whereas the Trust's current net assets are
approximately $260 million. The Trustees concluded that the absence of
breakpoints in the fee schedule under the New Contract was currently
acceptable given the Trust's current size and closed-end fund structure.
4. SENIOR SECURED INDEBTEDNESS
A. NOTE PAYABLE:
MassMutual holds the Trust's $20,000,000 Senior Fixed Rate Convertible Note
(the "Note") issued by the Trust in 1995. The Note, as amended, is due
November 15, 2007 and accrues at 7.39% per annum. MassMutual, at its option,
can convert the principal amount of the Note into common shares. The dollar
amount of principal would be converted into an equivalent dollar amount of
common shares based upon the average price of the common shares for ten
business days prior to the notice of conversion. For the six months ended
June 30, 2007, the Trust incurred total interest expense on the Note of
$739,000.
The Trust may redeem the Note, in whole or in part, at the principal amount
proposed to be redeemed together with the accrued and unpaid interest thereon
through the redemption date plus the Make Whole Premium. The Make Whole
Premium equals the excess of (i) the present value of the scheduled payments
of principal and interest which the Trust would have paid but for the
proposed redemption, discounted at the rate of interest of U.S. Treasury
obligations whose maturity approximates that of the Note plus 0.50% over (ii)
the principal of the Note proposed to be redeemed.
B. REVOLVING CREDIT AGREEMENT:
The Trust entered into a Revolving Credit Agreement (the "Revolver") with The
Royal Bank of Scotland PLC as of May 31, 2005 (the "Agent Bank"), in the
principal amount of $25,000,000, maturing May 31, 2008. The Revolver bears
interest payable in arrears at a per annum rate that varies depending upon
whether the Trust requests a Base Rate Loan or a London Inter Bank Offered
Rate ("LIBOR") Loan. Interest on Base Rate Loans equals the higher of: (i)
the annual "Base Rate" as set periodically by the Agent Bank and (ii) the
most recent Federal Funds Effective Rate plus .50% per annum. Per annum
interest on LIBOR Rate Loans equals .37% plus the LIBOR rate, divided by 1
minus the LIBOR Reserve Rate. The Trust also incurs expense on the undrawn
portion of the total Revolver at a rate of .15% per annum.
As of June 30, 2007, there was no outstanding amount against the Revolver.
For the six months ended June 30, 2007, the Trust incurred total expense on
the Revolver of $18,596 related to the undrawn portion.
--------------------------------------------------------------------------------
33
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS
(CONTINUED)
5. PURCHASES AND SALES OF INVESTMENTS
For the six months
ended 6/30/2007
Cost of Proceeds from
Investments Sales or
Acquired Maturities
----------- -----------
Corporate restricted securities $30,100,045 $17,547,561
Corporate public securities 15,638,256 29,075,381
The aggregate cost of investments is substantially the same for financial
reporting and federal income tax purposes as of June 30, 2007. The net
unrealized appreciation of investments for financial reporting and federal
tax purposes as of June 30, 2007 is $1,420,309 and consists of $29,211,902
appreciation and $27,791,593 depreciation.
Net unrealized appreciation of investments on the Statement of Assets and
Liabilities reflects the balance net of a deferred tax accrual of $293,661 on
net unrealized gains on the MMCI Subsidiary Trust.
6. QUARTERLY RESULTS OF INVESTMENT OPERATIONS
March 31, 2007
Amount Per Share
----------- -----------
Investment income $ 6,228,449
Net investment income 4,828,999 $ 0.53
Net realized and unrealized 426,925 0.05
gain on investments (net of taxes)
June 30, 2007
Amount Per Share
----------- -----------
Investment income $ 7,265,754
Net investment income 5,957,211 $ 0.64
Net realized and unrealized (598,756) (0.07)
gain (loss) on investments
(net of taxes)
7. AGGREGATE REMUNERATION PAID TO OFFICERS, TRUSTEES AND THEIR AFFILIATED
PERSONS
For the six months ended June 30, 2007, the Trust paid its Trustees aggregate
remuneration of $88,250. The Trust did not pay any compensation to any of its
Trustees who are "interested persons" (as defined by the 1940 Act) of the
Trust. The Trust classifies Messers. Crandall and Joyal as "interested
persons" of the Trust.
All of the Trust's officers are employees of Babson Capital or MassMutual.
Pursuant to the New Contract, the Trust does not compensate its officers who
are employees of Babson Capital or MassMutual (except for the Chief
Compliance Officer of the trust unless assumed by Babson Capital). For the
six months ended June 30, 2007, Babson Capital paid the compensation of the
Chief Compliance Officer of the Trust.
Mr. Crandall, one of the Trust's Trustees, is an "affiliated person" (as
defined by the 1940 Act) of MassMutual and Babson Capital. The Trust did not
make any payments to Babson Capital for the six months ended June 30, 2007
other than amounts payable to Babson Capital pursuant to the New Contract.
For the six months ended June 30, 2007, the Trust paid the following amounts
to MassMutual, exclusive of interest expense on the Note explained in
Footnote 4.A:
Preparation of the Trust's
Quarterly and Annual Reports
to Shareholders $ 6,242
Preparation of Certain of
the Trust's Shareholder
Communications 1,697
Preparation of the Trust's
Annual Proxy Statements 675
-------
$ 8,614
--------------------------------------------------------------------------------
34
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS
(CONTINUED)
8. RESULTS OF SHAREHOLDER MEETING
The Annual Meeting of Shareholders was held on Friday, April 27, 2007. The
Shareholders were asked to vote to reelect Donald E. Benson, Donald Glickman
and Robert E. Joyal as trustees, each for a three-year term; William J.
Barrett as trustee, for a two-year term; and Michael H. Brown as trustee, for
a one-year term. The Shareholders approved all of the proposals. The Trust's
other trustees (Roger W. Crandall, Martin T. Hart and Corine T. Norgaard)
continued to serve their respective terms following the April 27, 2007 Annual
Shareholders Meeting. The results of the Shareholders votes are set forth
below.
% of Shares
Shares for Withheld Total Voted for
------------ ---------- --------- ------------
Donald E. Benson
7,308,406 117,097 7,425,503 98.42%
Donald Glickman
7,299,295 126,208 7,425,503 98.30%
Robert E. Joyal
7,343,400 82,103 7,425,503 98.89%
William J. Barrett
7,323,501 102,002 7,425,503 98.63%
Michael H. Brown
7,343,625 81,878 7,425,503 98.90%
9. NEW ACCOUNTING PRONOUNCEMENTS
In September 2006, FASB issued Statement of Financial Accounting Standards
No. 157, Fair Value Measurements ("FAS 157"). FAS 157 establishes a single
authoritative definition of fair value, establishes a framework for measuring
fair value and expands disclosures about fair value measurements. FAS 157
applies to fair value measurements already required or permitted by existing
standards. The change to current generally accepted accounting principles
from the application of FAS 157 relates to the definition of fair value, the
methods used to measure fair value, and the expanded disclosures about fair
value measurements. Management of the Trust does not believe the adoption of
FAS 157 will materially impact the financial statement amounts, however,
additional disclosures may be required about the inputs used to develop the
measurements and the effect of certain of the measurements on changes in net
assets for the period. FAS 157 is effective for financial statements issued
for fiscal years beginning after November 15, 2007 and interim periods within
those fiscal years.
--------------------------------------------------------------------------------
35
TRUSTEES OFFICERS
William J. Barrett Roger W. Crandall Chairman
Donald E. Benson* Clifford M. Noreen President
Michael H. Brown James M. Roy Vice President &
Chief Financial Officer
Roger W. Crandall
Rodney J. Dillman Vice President &
Donald Glickman Secretary
Chief Legal Officer
Martin T. Hart*
Jill A. Fields Vice President
Robert E. Joyal
Michael P. Hermsen Vice President
Corine T. Norgaard*
Mary Wilson Kibbe Vice President
Michael L. Klofas Vice President
Richard E. Spencer, II Vice President
* MEMBER OF THE AUDIT
COMMITTEE Ronald S. Talala Treasurer
John T. Davitt, Jr. Comptroller
Melissa M. LaGrant Chief Compliance
Officer
--------------------------------------------------------------------------------
DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN
MassMutual Corporate Investors offers a Dividend Reinvestment and Share Purchase
Plan. The Plan provides a simple way for shareholders to add to their holdings
in the Trust through the receipt of dividend shares issued by the Trust or
through the reinvestment of cash dividends in Trust shares purchased in the open
market. A shareholder may join the Plan by filling out and mailing an
authorization card to Shareholder Financial Services, Inc., the Transfer Agent.
Participating shareholders will continue to participate until they notify the
Transfer Agent, in writing, of their desire to terminate participation. Unless a
shareholder elects to participate in the Plan, he or she will, in effect, have
elected to receive dividends and distributions in cash.
Participating shareholders may also make additional contributions to the Plan
from their own funds. Such contributions may be made by personal check or other
means in an amount not less than $10 nor more than $5,000 per quarter. Cash
contributions must be received by the Transfer Agent at least five days (but no
more than 30 days) before the payment date of a dividend or distributions.
Whenever the Trust declares a dividend payable in cash or shares, the Transfer
Agent, acting on behalf of each participating shareholder, will take the
dividend in shares only if the net asset value is lower than the market price
plus an estimated brokerage commission as of the close of business on the
valuation day. The valuation day is the last day preceding the day of dividend
payment. When the dividend is to be taken in shares, the number of shares to be
received is determined by dividing the cash dividend by the net asset value as
of the close of business on the valuation date or, if greater than net asset
value, 95% of the closing share price. If the net asset value of the shares is
higher than the market value plus an estimated commission, the Transfer Agent,
consistent with obtaining the best price and execution, will buy shares on the
open market at current prices promptly after the dividend payment date.
The reinvestment of dividends does not, in any way, relieve participating
shareholders of any federal, state or local tax. For federal income tax
purposes, the amount reportable in respect of a dividend received in
newly-issued shares of the Trust will be the fair market value of the shares
received, which will be reportable as ordinary income and/or capital gains.
As compensation for its services, the Transfer Agent receives a fee of 5% of any
dividend and cash contribution (in no event in excess of $2.50 per distribution
per shareholder.)
Any questions regarding the Plan should be addressed to Shareholder Financial
Services, Inc., Agent for MassMutual Corporate Investors' Dividend Reinvestment
and Share Purchase Plan, P.O. Box 173673, Denver CO 80217-3673.
[LOGO] MassMutual
Corporate Investors
DB1039 707
ITEM 2. CODE OF ETHICS.
Not applicable for this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
A schedule of investments for the Registrant is included as part of
this report to shareholders under item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable for this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable for this filing. There have been no changes in any of
the Portfolio Managers identified in the Registrant's most recent
annual report on Form N-CSR.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not Applicable for this filing.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not Applicable for this filing.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The principal executive officer and principal financial officer
of the Registrant evaluated the effectiveness of the Registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")) as of a
date within 90 days of the filing date of this report and based
on that evaluation have concluded that such disclosure controls
and procedures are effective to provide reasonable assurance that
material information required to be disclosed by the Registrant
on Form N-CSR is recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange
Commission's rules and forms.
(b) There were no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act)
during the Registrant's second fiscal quarter that have
materially affected, or are reasonably likely to materially
affect, the Registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a)(1) ANY CODE OF ETHICS, OR AMENDMENTS THERETO, THAT IS THE SUBJECT OF
DISCLOSURE REQUIRED BY ITEM 2, TO THE EXTENT THAT THE REGISTRANT
INTENDS TO SATISFY THE ITEM 2 REQUIREMENTS THROUGH THE FILING OF
AN EXHIBIT.
None.
(a)(2) A SEPARATE CERTIFICATION FOR EACH PRINCIPAL EXECUTIVE OFFICER AND
PRINCIPAL FINANCIAL OFFICER OF THE REGISTRANT AS REQUIRED BY RULE
30a-2 UNDER THE ACT.
Attached hereto as EX-99.31.1
Attached hereto as EX-99.31.2
(a)(3) ANY WRITTEN SOLICITATION TO PURCHASE SECURITIES UNDER RULE 23c-1
UNDER THE ACT (17 CFR 270.23c-1) SENT OR GIVEN DURING THE PERIOD
COVERED BY THE REPORT BY OR ON BEHALF OF THE REGISTRANT TO 10 OR
MORE PERSONS.
Not Applicable for this filing.
(b) If the report is filed under Section 13(a) or 15(d) of the
Exchange Act, provide the certifications required by Rule
30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or
Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or
240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the
United States Code (18 U.S.C. 1350) as an exhibit. A
certification furnished pursuant to this paragraph will not be
deemed "filed" for purposes of Section 18 of the Exchange Act (15
U.S.C. 78r), or otherwise subject to the liability of that
section. Such certification will not be deemed to be incorporated
by reference into any filing under the Securities Act of 1933 or
the Exchange Act, except to the extent that the registrant
specifically incorporates it by reference.
Attached hereto as EX-99.32
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the Registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant): MassMutual Corporate Investors
----------------------------------
By: /s/ Clifford M. Noreen
----------------------------------
Clifford M. Noreen, President
----------------------------------
Date: September 4, 2007
----------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /s/ Clifford M. Noreen
----------------------------------
Clifford M. Noreen, President
----------------------------------
Date: September 4, 2007
----------------------------------
By: /s/ James M. Roy
----------------------------------
James M. Roy, Vice President, and
Chief Financial Officer
----------------------------------
Date: September 4, 2007
------------------------------