MassMutual
Corporate Investors
Report for the
Nine Months Ended September 30, 2010
LOGO
ADVISER
Babson Capital Management LLC *
1500 Main Street, P.O. Box 15189
Springfield, Massachusetts 01115-5189
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
Boston, Massachusetts 02110
COUNSEL TO THE TRUST
Ropes & Gray LLP
Boston, Massachusetts 02110
CUSTODIAN
Citibank, N.A.
New York, New York 10043
TRANSFER AGENT & REGISTRAR
Shareholder Financial Services, Inc. *
P.O. Box 173673
Denver, Colorado 80217-3673
1-800-647-7374
INTERNET WEBSITE
www.babsoncapital.com/mci
MassMutual Corporate Investors
c/o Babson Capital Management LLC
LOGO 1500 Main Street, Suite 2200
Springfield, Massachusetts 01115
(413) 226-1516
*Member of the MassMutual Financial Group
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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
"MassMuInv" under either the New York Stock Exchange listings or Closed-End Fund
Listings.
The Trust's investment objective is to maintain a portfolio of securities
providing a fixed yield and at the same time offering an opportunity for capital
gains. The Trust's principal investments are privately placed, below-investment
grade, long-term debt obligations with equity features such as common stock,
warrants, conversion rights, or other equity features and, occasionally,
preferred stocks. The Trust typically purchases these investments, which are not
publicly tradable, directly from their issuers in private placement
transactions. These investments are typically mezzanine debt instruments with
accompanying private equity securities made to small or middle market companies.
In addition, the Trust may temporarily invest, subject to certain limitations,
in marketable investment grade debt securities, other marketable debt securities
(including high yield securities) and marketable common stocks. Below-investment
grade or high yield securities have predominantly speculative characteristics
with respect to the capacity of the issuer to pay interest and repay principal.
Babson Capital Management LLC ("Babson Capital") manages the Trust on a total
return basis. The Trust distributes substantially all of its net income to
shareholders each year. Accordingly, the Trust pays dividends to shareholders in
January, May, August, and November. The Trust pays dividends to its shareholders
in cash, unless the shareholder elects to participate in the Dividend
Reinvestment and Share Purchase Plan.
FORM N-Q
The Trust files its complete schedule of portfolio holdings with the U.S.
Securities and Exchange Commission ("SEC") for the first and third quarters of
each fiscal year on Form N-Q. This information is available (i) on the SEC's
website at http:// www.sec.gov; and (ii) at the SEC's Public Reference Room in
Washington, DC (which information on their operation may be obtained by calling
1-800-SEC-0330). A complete schedule of portfolio holdings as of each
quarter-end is available upon request by calling, toll-free, 866-399-1516.
PROXY VOTING POLICIES & PROCEDURES; PROXY VOTING RECORD
The Trustees of the Trust have delegated proxy voting responsibilities relating
to the voting of securities held by the Trust to Babson Capital. A description
of Babson Capital's proxy voting policies and procedures is available (1)
without charge, upon request, by calling, toll-free 866-399-1516; (2) on the
Trust's website: http://www.babsoncapital.com/mci; and (3) on the SEC's website
at http://www.sec.gov. Information regarding how the Trust voted proxies
relating to portfolio securities during the most recent 12-month period ended
June 30 is available (1) on the Trust's website: http://www.babsoncapital.
com/mci; and (2) on the SEC's website at http://www.sec.gov.
MCI
LISTED
NYSE
THE NEW YORK STOCK EXCHANGE
MassMutual Corporate Investors
TO OUR SHAREHOLDERS
October 31, 2010
We are pleased to present the September 30, 2010 Quarterly Report of MassMutual
Corporate Investors (the "Trust").
The Board of Trustees declared a quarterly dividend of 54 cents per share,
payable on November 12, 2010 to shareholders of record on November 1, 2010. The
Trust paid a 54 cent per share dividend for the preceding quarter. The Trust
earned 56 cents per share of net investment income for the third quarter of
2010, compared to 54 cents per share in the previous quarter.
During the third quarter, the net assets of the Trust increased to $237,659,696
or $25.19 per share compared to $226,229,994 or $24.03 per share on June 30,
2010. This translates into a 7.2% total return for the quarter, based on the
change in the Trust's net assets assuming the reinvestment of all dividends.
Longer term, the Trust returned 17.9%, 5.5%, 9.7%, 11.2%, and 13.9% for the 1-,
3-, 5-, 10-, and 25-year time periods, respectively, based on the change in the
Trust's net assets assuming the reinvestment of all dividends.
The Trust's share price increased 10.5% during the quarter, from $26.85 per
share as of June 30, 2010 to $29.66 per share as of September 30, 2010. The
Trust's market price of $29.66 per share equates to a 17.8% premium over the
September 30, 2010 net asset value per share of $25.19. The Trust's average
quarter-end premium for the 3, 5 and 10- year periods was 4.0%, 9.5% and 8.7%,
respectively. U.S. equity markets, as approximated by the Russell 2000 Index,
increased 11.3% for the quarter. U.S. fixed income markets, as approximated by
the Barclays Capital U.S. Corporate High Yield Index, increased 6.7% for the
quarter.
The Trust closed four new private placement investments and two "follow-on"
investments in existing portfolio companies during the third quarter. The four
new investments were in Associated Diversified Services, Barcodes Group, Inc., F
F C Holding Corporation and MBWS Ultimate Holdco, Inc., while the two follow-on
investments were in Northwest Mailing Services, Inc. and Pacific Consolidated
Holdings LLC. A brief description of these investments can be found in the
Consolidated Schedule of Investments. The total amount invested by the Trust in
these six transactions was $10,727,000.
As evidenced by the increased level of new investment activity, our deal flow
during the third quarter was very robust, and has remained so as we moved into
the fourth quarter. A variety of factors, including upcoming possible tax law
changes, renewed vigor from private equity buyers after 12-18 months of limited
activity, and the presence of cash-rich strategic buyers, have contributed to
the high level of transaction volume. Of course, without an adequate supply of
debt and equity capital, strong deal flow does not translate into new
investments. Fortunately, there currently is a plentiful supply of equity
capital. The availability of debt capital, particularly senior debt, has
continued to improve and is adequate to meet the needs of the market. As a
result, we currently are very busy processing new transactions and expect that
our efforts will result in a number of attractive new investments for the Trust
in the fourth quarter of 2010. Barring any external shocks, we expect our
investment activity to remain strong into 2011. Leverage multiples continued to
increase during the quarter, but not to what we would view as excessive levels.
Pricing and return expectations for new investments were stable during the
quarter, and remain relatively favorable in our view. All in all, conditions are
favorable for new investment activity.
The condition of our existing portfolio continued to improve in the third
quarter. Sales and earnings for most of our portfolio companies have trended
upward so far in 2010, after showing a deteriorating trend for all of 2009. It
continues to be particularly refreshing to see some of our companies which had
underperformed expectations begin to show improved results. Patience and, in
certain cases, additional equity support from the equity sponsor group sometimes
coupled with the deferral of interest on our debt obligations, has proven to be
the right approach to helping these companies rebound. We had several more
instances during the quarter in which companies which had stopped
(Continued)
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1
paying cash interest on our debt obligations resumed payment due to their
improved operating results and liquidity position. Realization activity, which
generally correlates highly with improved performance, also remained strong
during the quarter. There were three companies in the Trust's portfolio,
Diversco, Inc., K-Tek Holding Corporation, and Waggin' Train Holdings LLC, which
were successfully sold during the quarter. One additional company, PAS Holdco
LLC, was also sold for a nice gain in the first week of October. There continues
to be a significant number of portfolio companies that are in various stages of
a sale process and we are hopeful that many of these will turn into successful
realizations in the upcoming quarters.
Certainly market conditions are constantly changing. As I have stated in prior
quarters though, we will not waver in our approach to investing - we will
continue to maintain the same discipline and investment philosophy that has
served the Trust's shareholders well for so many years. Thank you for your
continued interest in and support of MassMutual Corporate Investors.
Sincerely,
/s/ Michael L. Klofas
Michael L. Klofas
President
PORTFOLIO COMPOSITION AS OF 9/30/10*
[PIE CHART APPEARS HERE]
PRIVATE / 144A HIGH PUBLIC HIGH YIELD
YIELD DEBT DEBT
69.4% 14.0%
PRIVATE / RESTRICTED PUBLIC EQUITY
EQUITY 0.5%
12.2%
CASH & SHORT TERM
INVESTMENTS
3.9%
* Based on market value of total investments (including cash)
Cautionary Notice: Certain statements contained in this report may be "forward
looking" statements. Investors are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on which they are
made and which reflect management's current estimates, projections, expectations
or beliefs, and which are subject to risks and uncertainties that may cause
actual results to differ materially. These statements are subject to change at
any time based upon economic, market or other conditions and may not be relied
upon as investment advice or an indication of the Trust's trading intent.
References to specific securities are not recommendations of such securities,
and may not be representative of the Trust's current or future investments. We
undertake no obligation to publicly update forward looking statements, whether
as a result of new information, future events, or otherwise.
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2
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES MassMutual Corporate Investors
SEPTEMBER 30, 2010
(UNAUDITED)
ASSETS:
Investments
(See Consolidated Schedule of Investments)
Corporate restricted securities at fair value
(Cost - $223,370,201) $ 201,158,838
Corporate restricted securities at market value
(Cost - $12,416,379) 12,377,562
Corporate public securities at market value
(Cost - $39,942,066) 37,832,468
Short-term securities at amortized cost 5,899,845
-------------
257,268,713
Cash 4,354,524
Interest receivable 6,497,650
Receivable for investments sold 1,273,011
Other assets 6,285
-------------
TOTAL ASSETS 269,400,183
-------------
LIABILITIES:
Investment advisory fee payable 742,687
Note payable 30,000,000
Interest payable 202,105
Accrued taxes payable 642,488
Accrued expenses 119,271
Other payables 33,936
-------------
TOTAL LIABILITIES 31,740,487
-------------
TOTAL NET ASSETS $ 237,659,696
=============
NET ASSETS:
Common shares, par value $1.00 per share; an unlimited
number authorized 9,436,429
Additional paid-in capital 115,517,047
Retained net realized gain on investments, prior years 127,688,004
Undistributed net investment income 7,337,131
Accumulated net realized gain on investments 2,040,863
Net unrealized depreciation of investments (24,359,778)
-------------
Total net assets $ 237,659,696
=============
Common shares issued and outstanding 9,436,429
=============
Net asset value per share $ 25.19
=============
See Notes to Consolidated Financial Statements
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3
CONSOLIDATED STATEMENT OF Operations
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010
(UNAUDITED)
INVESTMENT INCOME:
Interest $ 18,731,193
Dividends 157,828
Other 71,572
-------------
TOTAL INVESTMENT INCOME 18,960,593
-------------
EXPENSES:
Investment advisory fees 2,139,455
Interest 1,188,000
Trustees' fees and expenses 188,200
Professional fees 111,600
Reports to shareholders 90,000
Custodian fees 20,000
Transfer agent/registrar's expenses 14,100
Other 21,454
-------------
TOTAL EXPENSES 3,772,809
-------------
INVESTMENT INCOME - NET 15,187,784
-------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments before taxes 3,556,455
Income tax expense (646,067)
-------------
Net realized gain on investments after taxes 2,910,388
Net change in unrealized depreciation of investments before taxes 13,392,943
Net change in deferred income tax expense 165,290
-------------
Net change in unrealized depreciation of investments after taxes 13,558,233
-------------
NET GAIN ON INVESTMENTS 16,468,621
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 31,656,405
=============
See Notes to Consolidated Financial Statements
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4
CONSOLIDATED STATEMENT OF CASH FLOWS MassMutual Corporate Investors
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010
(UNAUDITED)
NET DECREASE IN CASH:
Cash flows from operating activities:
Purchases/Proceeds/Maturities from short-term portfolio
securities, net $ (5,887,698)
Purchases of portfolio securities (55,701,849)
Proceeds from disposition of portfolio securities 51,319,185
Interest, dividends and other income received 14,678,125
Interest expense paid (1,188,000)
Operating expenses paid (2,530,263)
Income taxes paid (59,579)
-------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 629,921
-------------
Cash flows from financing activities:
Cash dividends paid from net investment income (15,214,217)
Receipts for shares issued on reinvestment of dividends 1,722,041
-------------
NET CASH USED FOR FINANCING ACTIVITIES (13,492,176)
-------------
NET DECREASE IN CASH (12,862,255)
Cash - beginning of year 17,216,779
-------------
CASH - END OF PERIOD $ 4,354,524
=============
RECONCILIATION OF NET INCREASE IN NET ASSETS TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 31,656,405
-------------
Increase in investments (26,709,065)
Increase in interest receivable (3,341,582)
Increase in receivable for investments sold (1,225,709)
Increase in other assets (6,285)
Increase in investment advisory fee payable 72,572
Decrease in accrued expenses (45,676)
Increase in accrued taxes payable 421,198
Decrease in other payables (191,937)
-------------
TOTAL ADJUSTMENTS TO NET ASSETS FROM OPERATIONS (31,026,484)
-------------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 629,921
=============
See Notes to Consolidated Financial Statements
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5
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
For the nine
months ended For the
09/30/10 year ended
(Unaudited) 12/31/09
------------- -------------
INCREASE IN NET ASSETS:
Operations:
Investment income - net $ 15,187,784 $ 19,170,412
Net realized gain on investments 2,910,388 868,412
Net change in unrealized depreciation of investments 13,558,233 5,285,777
------------- -------------
Net increase in net assets resulting from operations 31,656,405 25,324,601
Increase from common shares issued on reinvestment of dividends
Common shares issued (2010 - 68,813; 2009 - 48,107) 1,722,041 1,137,714
Dividends to shareholders from:
Net investment income (2010 - $1.08 per share; 2009 -
$2.16 per share) (10,155,704) (20,168,880)
------------- -------------
Total increase in net assets 23,222,742 6,293,435
Net assets, beginning of year 214,436,954 208,143,519
------------- -------------
Net assets, end of period/year (including undistributed net
investment income of $7,337,131 and $2,305,051, respectively) $ 237,659,696 $ 214,436,954
============= =============
See Notes to Consolidated Financial Statements
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6
CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS MassMutual Corporate Investors
SELECTED DATA FOR EACH SHARE OF BENEFICIAL INTEREST OUTSTANDING:
For the nine
months ended For the years ended December 31,
09/30/2010 -------------------------------------------------------------
(Unaudited) 2009 2008 2007 2006 2005
--------- --------- --------- --------- --------- ---------
Net asset value:
Beginning of year $ 22.89 $ 22.33 $ 27.19 $ 27.51 $ 26.06 $ 24.34
--------- --------- --------- --------- --------- ---------
Net investment income (a) 1.62 2.05 2.31 2.56 2.27 2.03
Net realized and unrealized
gain (loss) on investments 1.75 0.66 (5.02) (0.35) 1.62 1.96(b)
--------- --------- --------- --------- --------- ---------
Total from investment operations 3.37 2.71 (2.71) 2.21 3.89 3.99
--------- --------- --------- --------- --------- ---------
Dividends from net investment
income to common shareholders (1.08) (2.16) (2.16) (2.57) (2.47) (2.11)
Dividends from net realized gain
on investments to common shareholders -- -- -- -- (0.01) (0.18)
Increase from dividends reinvested 0.01 0.01 0.01 0.04 0.04 0.02
--------- --------- --------- --------- --------- ---------
Total dividends (1.07) (2.15) (2.15) (2.53) (2.44) (2.27)
--------- --------- --------- --------- --------- ---------
Net asset value: End of period/year $ 25.19 $ 22.89 $ 22.33 $ 27.19 $ 27.51 $ 26.06
========= ========= ========= ========= ========= =========
Per share market value:
End of period/year $ 29.66 $ 25.10 $ 19.25 $ 30.20 $ 34.89 $ 30.05
Total investment return
Net asset value (c) 15.14% 12.64% (10.34%) 8.72% 18.06% 20.04%
Market value 23.19% 39.89% (30.44%) (8.78%) 29.04% 16.95%
Net assets (in millions):
End of period/year $ 237.66 $ 214.44 $ 208.14 $ 251.16 $ 251.69 $ 236.28
Ratio of operating expenses
to average net assets 1.55%(d) 1.58% 1.49% 1.55% 1.43% 1.78%
Ratio of interest expense
to average net assets 0.72%(d) 0.75% 0.67% 0.59% 0.60% 0.73%
Ratio of income tax expense
to average net assets (e) 0.39%(d) 0.00% 0.00% 0.35% 2.46% 2.84%
Ratio of total expenses before custodian fee
reduction to average net assets (e) 2.66%(d) 2.33% 2.16% 2.49% 4.53% 5.36%
Ratio of net expenses after custodian fee
reduction to average net assets (e) 2.66%(d) 2.33% 2.16% 2.49% 4.49% 5.35%
Ratio of net investment income
to average net assets 9.13%(d) 9.06% 9.01% 9.17% 8.19% 7.98%
Portfolio turnover 22% 23% 32% 44% 35% 35%
(a) Calculated using average shares.
(b) Amount includes $0.19 per share in litigation proceeds.
(c) Net asset value return represents portfolio returns based on change in the Trust's net asset value assuming the reinvestment
of all dividends and distributions which differs from the total investment return based on the Trust's market value due to
the difference between the Trust's net asset value and the market value of its shares outstanding; past performance is no
guarantee of future results.
(d) Annualized
(e) As additional information, this ratio is included to reflect the taxes paid on retained long-term gains. These taxes paid
are netted against realized capital gains in the Statement of Operations. The taxes paid are treated as deemed distributions
and a credit for the taxes paid is passed on to the shareholders.
Senior borrowings:
Total principal amount (in millions) $ 30 $ 30 $ 30 $ 30 $ 20 $ 20
Asset coverage per $1,000
of indebtedness $ 8,922 $ 8,148 $ 7,938 $ 9,372 $ 13,584 $ 12,814
See Notes to Consolidated Financial Statements
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7
CONSOLIDATED SCHEDULE OF INVESTMENTS
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES - 89.85%:(A) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
PRIVATE PLACEMENT INVESTMENTS - 84.64%
A E COMPANY, INC.
A designer and manufacturer of machined parts and assembly structures for the commercial and military aerospace industries.
11% Senior Secured Note due 2015 $ 1,413,462 * $ 1,385,193 $ 1,455,392
13% Senior Subordinated Note due 2016 $ 1,413,461 11/10/09 1,265,201 1,468,279
Common Stock (B) 323,077 shs. 11/10/09 323,077 306,923
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B) 161,538 shs. 11/10/09 119,991 1,615
------------ -----------
* 11/10/09 and 11/18/09. 3,093,462 3,232,209
------------ -----------
A H C HOLDING COMPANY, INC.
A designer and manufacturer of boilers and water heaters for the commercial sector.
15% Senior Subordinated Note due 2015 $ 2,535,741 11/21/07 2,484,598 2,561,099
Limited Partnership Interest (B) 23.16% int. 11/21/07 224,795 399,425
------------ -----------
2,709,393 2,960,524
------------ -----------
A S A P INDUSTRIES LLC
A designer and manufacturer of components used on oil and natural gas wells.
12.5% Senior Subordinated Note due 2015 $ 850,946 12/31/08 739,153 867,964
Limited Liability Company Unit Class A-2 (B) 1,276 uts. 12/31/08 140,406 216,880
Limited Liability Company Unit Class A-3 (B) 1,149 uts. 12/31/08 126,365 195,193
------------ -----------
1,005,924 1,280,037
------------ -----------
A S C GROUP, INC.
A designer and manufacturer of high reliability encryption equipment, communications products, computing systems and electronic
components primarily for the military and aerospace sectors.
12.75% Senior Subordinated Note due 2016 $ 2,318,182 10/09/09 1,986,875 2,387,727
Limited Liability Company Unit Class A (B) 2,359 uts. 10/09/09 231,818 220,215
Limited Liability Company Unit Class B (B) 2,782 uts. 10/09/09 273,352 28
------------ -----------
2,492,045 2,607,970
------------ -----------
A W X HOLDINGS CORPORATION
A provider of aerial equipment rental, sales and repair services to non-residential construction and maintenance contractors
operating in the State of Indiana.
10.5% Senior Secured Term Note due 2014 (D) $ 735,000 05/15/08 720,300 551,250
13% Senior Subordinated Note due 2015 (D) $ 735,000 05/15/08 657,905 --
Common Stock (B) 105,000 shs. 05/15/08 105,000 --
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 36,923 shs. 05/15/08 62,395 --
------------ -----------
1,545,600 551,250
------------ -----------
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8
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
ADVANCED TECHNOLOGIES HOLDINGS
A provider of factory maintenance services to industrial companies.
15% Senior Subordinated Note due 2013 $ 2,215,488 12/27/07 $ 2,173,039 $ 2,237,643
Preferred Stock (B) 1,031 shs. 12/27/07 510,000 512,860
------------ -----------
2,683,039 2,750,503
------------ -----------
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 1,627,500
14% Senior Subordinated Note due 2015 $ 1,260,000 03/09/07 1,161,382 1,260,000
Common Stock (B) 262,500 shs. 03/09/07 262,500 448,875
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 66,116 shs. 03/09/07 111,527 113,058
------------ -----------
3,138,497 3,449,433
------------ -----------
ALL CURRENT HOLDING COMPANY
A specialty re-seller of essential electrical parts and components primarily serving wholesale distributors.
12% Senior Subordinated Note due 2015 $ 1,140,317 09/26/08 1,053,128 1,151,720
Common Stock (B) 1,347 shs. 09/26/08 134,683 103,201
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 958 shs. 09/26/08 87,993 73,398
------------ -----------
1,275,804 1,328,319
------------ -----------
AMERICAN HOSPICE MANAGEMENT HOLDING LLC
A for-profit hospice care provider in the United States.
12% Senior Subordinated Note due 2013 $ 3,187,495 * 3,033,665 3,187,495
Preferred Class A Unit (B) 3,223 uts. ** 322,300 540,630
Preferred Class B Unit (B) 1,526 uts. 06/09/08 152,626 218,189
Common Class B Unit (B) 30,420 uts. 01/22/04 1 96,824
Common Class D Unit (B) 6,980 uts. 09/12/06 1 22,217
------------ -----------
* 01/22/04 and 06/09/08. ** 01/22/04 and 09/12/06. 3,508,593 4,065,355
------------ -----------
APEX ANALYTIX HOLDING CORPORATION
A provider of audit recovery and fraud detection services and software to commercial and retail businesses in the U.S. and Europe.
12.5% Senior Subordinated Note due 2016 $ 1,912,500 04/28/09 1,627,036 1,950,750
Preferred Stock Series B (B) 3,065 shs. 04/28/09 306,507 481,150
Common Stock (B) 1,366 shs. 04/28/09 1,366 214,443
------------ -----------
1,934,909 2,646,343
------------ -----------
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9
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
ARROW TRU-LINE HOLDINGS, INC.
A manufacturer of hardware for residential and commercial overhead garage doors in North America.
12% Senior Subordinated Note due 2012 $ 1,859,060 05/18/05 $ 1,667,348 $ 1,580,201
Preferred Stock (B) 63 shs. 10/16/09 62,756 31,380
Common Stock (B) 497 shs. 05/18/05 497,340 --
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 130 shs. 05/18/05 112,128 --
------------ -----------
2,339,572 1,611,581
------------ -----------
ASSOCIATED DIVERSIFIED SERVICES
A provider of routine maintenance and repair services primarily to electric utility companies predominantly on electric power
distribution lines.
10% Senior Secured Term Note due 2016 (C) $ 853,714 09/30/10 832,371 852,451
13% Senior Subordinated Note due 2017 $ 853,714 09/30/10 761,606 844,547
Limited Liability Company Unit Class B (B) 92,571 uts. 09/30/10 92,571 87,942
Limited Liability Company Unit Class B OID (B) 70,765 uts. 09/30/10 70,765 708
------------ -----------
1,757,313 1,785,648
------------ -----------
BARCODES GROUP, INC.
A distibutor and reseller of automatic identification and data capture equipment, including mobile computers, scanners,
point-of-sale systems, labels, and accessories.
13.5% Senior Subordinated Note due 2016 $ 1,915,953 07/27/10 1,819,259 1,962,059
Preferred Stock (B) 39 shs. 07/27/10 394,487 374,775
Common Stock Class A (B) 131 shs. 07/27/10 1,310 1,245
Warrant, exercisable until 2020, to purchase
common stock at $.01 per share (B) 23 shs. 07/27/10 227 --
------------ -----------
2,215,283 2,338,079
------------ -----------
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 2,180,614 2,281,593
Preferred Stock Class A (B) 879 shs. 06/30/06 268,121 159,473
Common Stock (B) 1 sh. 06/30/06 286 --
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 309 shs. 06/30/06 92,102 56,046
------------ -----------
2,541,123 2,497,112
------------ -----------
C D N T, INC.
A value-added converter and distributor of specialty pressure sensitive adhesives, foams, films, and foils.
10.5% Senior Secured Term Note due 2014 $ 659,946 08/07/08 652,782 628,871
12.5% Senior Subordinated Note due 2015 $ 750,872 08/07/08 692,484 682,935
Common Stock (B) 73,256 shs. 08/07/08 73,256 33,742
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 57,600 shs. 08/07/08 57,689 26,531
------------ -----------
1,476,211 1,372,079
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
10
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
CAPITAL SPECIALTY PLASTICS, INC.
A producer of desiccant strips used for packaging pharmaceutical products.
Common Stock (B) 109 shs. * $ 503 $ 1,174,109
------------ -----------
*12/30/97 and 05/29/99.
CLOUGH, HARBOUR AND ASSOCIATES
An engineering service firm that is located in Albany, NY.
12.25% Senior Subordinated Note due 2015 $ 2,400,000 12/02/08 2,225,100 2,448,000
Preferred Stock (B) 277 shs. 12/02/08 276,900 274,856
------------ -----------
2,502,000 2,722,856
------------ -----------
COEUR, INC.
A producer of proprietary, disposable power injection syringes.
12% Senior Subordinated Note due 2016 $ 1,214,286 10/10/08 1,098,929 1,238,572
Common Stock (B) 607 shs. 10/10/08 60,714 38,384
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 934 shs. 10/10/08 91,071 59,053
------------ -----------
1,250,714 1,336,009
------------ -----------
CONNECTICUT ELECTRIC, INC.
A supplier and distributor of electrical products sold into the retail and wholesale markets.
10% Senior Subordinated Note due 2014 (D) $ 1,456,429 01/12/07 1,358,631 728,215
Limited Liability Company Unit Class A (B) 156,046 uts. 01/12/07 156,046 --
Limited Liability Company Unit Class C (B) 112,873 uts. 01/12/07 112,873 --
Limited Liability Company Unit Class D (B) 1,268,437 uts. 05/03/10 -- --
Limited Liability Company Unit Class E (B) 2,081 uts. 05/03/10 -- --
------------ -----------
1,627,550 728,215
------------ -----------
CONNOR SPORT COURT INTERNATIONAL, INC.
A designer and manufacturer of outdoor and indoor synthetic sports flooring and other temporary flooring products.
Preferred Stock Series B-2 (B) 17,152 shs. 07/05/07 700,392 1,715,247
Preferred Stock Series C (B) 8,986 shs. 07/05/07 300,168 898,560
Common Stock (B) 718 shs. 07/05/07 7 513
Limited Partnership Interest (B) 12.64% int. * 189,586 --
------------ -----------
*08/12/04 and 01/14/05. 1,190,153 2,614,320
------------ -----------
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 2,477,623 2,550,000
Warrant, exercisable until 2013, to purchase
common stock at $.001 per share (B) 20 shs. 08/04/05 137,166 240,935
------------ -----------
2,614,789 2,790,935
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
11
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
CRANE RENTAL CORPORATION
A crane rental company.
13% Senior Subordinated Note due 2015 $ 2,295,000 08/21/08 $ 2,096,329 $ 2,289,755
Common Stock (B) 255,000 shs. 08/21/08 255,000 --
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 136,070 shs. 08/21/08 194,826 --
------------ -----------
2,546,155 2,289,755
------------ -----------
CUSTOM ENGINEERED WHEELS, INC.
A manufacturer of custom engineered, non-pneumatic plastic wheels and plastic tread cap tires used primarily for lawn and garden
products and wheelchairs.
12.5% Senior Subordinated Note due 2016 $ 2,182,212 10/27/09 1,892,808 2,247,678
Preferred Stock PIK (B) 296 shs. 10/27/09 295,550 280,773
Preferred Stock Series A (B) 216 shs. 10/27/09 197,152 2
Common Stock (B) 72 shs. 10/27/09 72,238 68,628
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 53 shs. 10/27/09 48,608 1
------------ -----------
2,506,356 2,597,082
------------ -----------
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 1,760,714 1,822,383
Limited Partnership Interest (B) 1.82% int. 10/30/06 702,174 760,901
Warrant, exercisable until 2014, to purchase
preferred stock at $.01 per share (B) 50 shs. 10/30/06 49,830 71,919
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 34 shs. 10/30/06 34,000 24,609
------------ -----------
2,546,718 2,679,812
------------ -----------
DIVERSCO, INC./DHI HOLDINGS, INC.
A contract provider of janitorial and equipment maintenance services and temporary production labor to industrial customers.
Membership Interests of MM/Lincap
Diversco Investments Ltd. LLC (B) 27.20% int. 08/27/98 734,090 --
Warrants, exercisable until 2011, to purchase common
stock of DHI Holdings, Inc. at $.01 per share (B) 13,352 shs. * 403,427 473,000
------------ -----------
*10/24/96 and 08/28/98. 1,137,517 473,000
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
12
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
DUNCAN SYSTEMS, INC.
A distributor of windshields and side glass for the recreational vehicle market.
10% Senior Secured Term Note due 2013 $ 405,000 11/01/06 $ 398,925 $ 414,394
13% Senior Subordinated Note due 2014 $ 855,000 11/01/06 789,267 855,000
Common Stock (B) 180,000 shs. 11/01/06 180,000 156,615
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 56,514 shs. 11/01/06 78,160 49,172
------------ -----------
1,446,352 1,475,181
------------ -----------
DWYER GROUP, INC.
A franchiser of a variety of home repair services.
Common Stock (B) 6,906 shs. * 690,600 1,211,250
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 2,034 shs. 10/30/03 186,469 356,673
------------ -----------
*10/30/03 and 01/02/04. 877,069 1,567,923
------------ -----------
E S P HOLDCO, INC.
A manufacturer of power protection technology for commercial office equipment, primarily supplying the office equipment dealer
network.
14% Senior Subordinated Note due 2015 $ 2,344,431 01/08/08 2,300,293 2,319,888
Common Stock (B) 660 shs. 01/08/08 329,990 105,988
------------ -----------
2,630,283 2,425,876
------------ -----------
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 76,657
------------ -----------
EATEM HOLDING COMPANY
A developer and manufacturer of savory flavor systems for soups, sauces, gravies, and other products produced by food manufacturers
for retail and foodservice end products.
12.5% Senior Subordinated Note due 2018 $ 2,850,000 02/01/10 2,471,700 2,926,563
Common Stock (B) 150 shs. 02/01/10 150,000 142,500
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 358 shs. 02/01/10 321,300 4
------------ -----------
2,943,000 3,069,067
------------ -----------
F C X HOLDINGS CORPORATION
A distributor of specialty/technical valves, actuators, accessories, and process instrumentation supplying a number of industrial,
high purity, and energy end markets in North America.
15% Senior Subordinated Note due 2015 $ 2,242,079 10/06/08 2,198,899 2,314,579
Preferred Stock (B) 4,341 shs. 10/06/08 434,074 212,665
Common Stock (B) 3,069 shs. 10/06/08 3,069 --
------------ -----------
2,636,042 2,527,244
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
13
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
F F C HOLDING CORPORATION
A leading U.S. manufacturer of private label frozen novelty and ice cream products.
16% Senior Subordinated Note due 2014 $ 2,487,805 09/27/10 $ 2,438,049 $ 2,483,710
Limited Liability Company Units Preferred (B) 512 uts. 09/27/10 460,976 437,931
Limited Liability Company Units (B) 512 uts. 09/27/10 51,220 48,659
------------ -----------
2,950,245 2,970,300
------------ -----------
F H S HOLDINGS LLC
A national provider of customized disease management services to large self-insured employers.
12% Senior Subordinated Note due 2014 (D) $ 2,390,625 06/01/06 2,220,452 --
Limited Liability Company Units of Linden/FHS Holdings LLC (B) 159 uts. 06/01/06 159,362 --
Common Unit Class B (B) 1,386 uts. 06/01/06 122,361 --
------------ -----------
2,502,175 --
------------ -----------
FLUTES, INC.
An independent manufacturer of micro fluted corrugated sheet material for the food and consumer products packaging industries.
10% Senior Secured Term Note due 2013 (D) $ 918,385 04/13/06 904,609 459,193
14% Senior Subordinated Note due 2014 (D) $ 555,059 04/13/06 495,635 --
------------ -----------
1,400,244 459,193
------------ -----------
GOLDEN COUNTY FOODS HOLDING, INC.
A manufacturer of frozen appetizers and snacks.
16% Senior Subordinated Note due 2015 $ 1,912,500 11/01/07 1,727,592 1,816,875
16% PIK Note due 2015 $ 472,711 12/31/08 399,004 449,076
8% Series A Convertible Preferred Stock, convertible into
fully diluted common shares (B) 146,658 shs. 11/01/07 146,658 14,272
------------ -----------
2,273,254 2,280,223
------------ -----------
H M HOLDING COMPANY
A designer, manufacturer, and importer of promotional and wood furniture.
7.5% Senior Subordinated Note due 2013 (D) $ 685,100 10/15/09 512,231 513,825
Preferred Stock (B) 40 shs. * 40,476 --
Preferred Stock Series B (B) 2,055 shs. 10/15/09 1,536,694
Common Stock (B) 340 shs. 02/10/06 340,000 --
Common Stock Class C (B) 560 shs. 10/15/09 -- --
Warrant, exercisable until 2013, to purchase
common stock at $.02 per share (B) 126 shs. 02/10/06 116,875 --
------------ -----------
* 09/18/07 and 06/27/08. 2,546,276 513,825
------------ -----------
HIGHGATE CAPITAL LLC
An acquirer of controlling or substantial interests in manufacturing and marketing entities.
Series A Preferred Units (B) 1.19% int. 07/21/94 367,440 --
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
14
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
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 * $ 1,926,884 $ 2,043,269
Common Stock (B) 63 shs. * 62,742 99,613
Warrant, exercisable until 2012, to purchase
common stock at $.02 per share (B) 200 shs. * 199,501 316,748
------------ -----------
* 06/30/04 and 08/19/04. 2,189,127 2,459,630
------------ -----------
HOSPITALITY MINTS HOLDING COMPANY
A manufacturer of individually-wrapped imprinted promotional mints.
12% Senior Subordinated Note due 2016 $ 2,075,581 08/19/08 1,920,297 1,971,802
Common Stock (B) 474 shs. 08/19/08 474,419 113,041
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 123 shs. 08/19/08 113,773 29,217
------------ -----------
2,508,489 2,114,060
------------ -----------
INSURANCE CLAIMS MANAGEMENT, INC.
A third party administrator providing auto and property claim administration services for insurance companies.
Common Stock (B) 69 shs. 02/27/07 2,077 264,968
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 20 shs. 02/27/07 612 78,040
------------ -----------
2,689 343,008
------------ -----------
INTERNATIONAL OFFSHORE SERVICES LLC
A leading provider of marine transportation services, platform decommissioning, and salvage services to oil and gas producers in the
shallow waters of the Gulf of Mexico.
14.25% Senior Subordinated Secured Note due 2017 $ 2,550,000 07/07/09 2,299,566 2,569,633
Limited Liability Company Unit (B) 3,112 uts. 07/07/09 186,684 --
------------ -----------
2,486,250 2,569,633
------------ -----------
JASON, INC.
A diversified manufacturing company serving various industrial markets.
13% Senior Subordinated Note due 2010 (D) $ 963,687 08/04/00 848,275 48,184
Limited Partnership Interest of
Saw Mill Capital Fund II, L.P. (B) 2.50% int. 08/03/00 886,470 --
------------ -----------
1,734,745 48,184
------------ -----------
JUSTRITE MANUFACTURING ACQUISITION CO.
A manufacturer of safety products such as storage cabinets and containers.
12% Senior Subordinated Note due 2011 $ 1,593,750 12/15/04 1,564,212 1,593,750
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 1,121 shs. 12/15/04 101,109 210,253
------------ -----------
1,665,321 1,804,003
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
15
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
K H O F HOLDINGS, INC.
A manufacturer of premium disposable tableware products serving both the foodservice and consumer channels.
Common Stock (B) 220,673 shs. 10/15/07 $ 135,084 $ 187,965
------------ -----------
K N B HOLDINGS CORPORATION
A designer, manufacturer and marketer of products for the custom framing market.
15.5% Senior Subordinated Note due 2013 (D) $ 3,012,887 05/25/06 2,641,395 2,862,243
Common Stock (B) 134,210 shs. 05/25/06 134,210 --
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 82,357 shs. 05/25/06 71,534 --
------------ -----------
2,847,139 2,862,243
------------ -----------
K P I HOLDINGS, INC.
The largest player in the U.S. non-automotive, non-ferrous die casting segment.
18% Senior Subordinated Note due 2014 (D) $ 2,106,522 07/16/08 1,968,368 2,001,196
Convertible Preferred Stock Series C (B) 55 shs. 06/30/09 55,435 --
Convertible Preferred Stock Series D (B) 24 shs. 09/17/09 24,476 --
Common Stock (B) 443 shs. 07/15/08 443,478 --
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 734 shs. * 96,024 --
------------ -----------
* 07/16/08 and 09/17/09. 2,587,781 2,001,196
------------ -----------
K W P I HOLDINGS CORPORATION
A manufacturer and distributor of vinyl windows and patio doors throughout the northwestern United States.
18% Senior Subordinated Note due 2014 (D) $ 2,938,407 03/14/07 2,674,368 2,350,726
Common Stock (B) 232 shs. 03/13/07 232,000 --
Warrant, exercisable until 2019, to purchase
preferred stock at $.01 per share (B) 134 shs. 07/07/09 -- --
Warrant, exercisable until 2017, to purchase
common stock at $.01 per share (B) 167 shs. 03/14/07 162,260 --
------------ -----------
3,068,628 2,350,726
------------ -----------
L H D EUROPE HOLDING, INC.
A non-carbonated beverage dispensing company focused on the foodservice industry.
Common Stock (B) 85 shs. 12/28/09 7,916 24,225
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
16
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
M V I HOLDING, INC.
A manufacturer of large precision machined metal components used in equipment which services a variety of industries, including
the oil and gas, mining, and defense markets.
13% Senior Subordinated Note due 2016 $ 1,239,403 09/12/08 $ 1,148,989 $ 1,199,056
Common Stock (B) 61 shs. 09/12/08 60,714 --
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 66 shs. 09/12/08 65,571 --
------------ -----------
1,275,274 1,199,056
------------ -----------
MAIL COMMUNICATIONS GROUP, INC.
A provider of mail processing and handling services, lettershop services, and commercial printing services.
12.5% Senior Subordinated Note due 2014 $ 975,000 05/04/07 912,469 975,000
Limited Liability Company Unit (B) 24,109 uts. * 314,464 321,494
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 3,375 shs. 05/04/07 43,031 45,006
------------ -----------
* 05/04/07 and 01/02/08. 1,269,964 1,341,500
------------ -----------
MANHATTAN BEACHWEAR HOLDING COMPANY
A designer and distributor of women's swimwear.
12.5% Senior Subordinated Note due 2018 $ 2,647,059 01/15/10 2,325,462 2,700,000
Common Stock (B) 353 shs. 01/15/10 352,941 335,293
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B) 312 shs. 01/15/10 283,738 3
------------ -----------
2,962,141 3,035,296
------------ -----------
MAVERICK ACQUISITION COMPANY
A manufacturer of capsules that cover the cork and neck of wine bottles.
6.79% Senior Secured Tranche A Note due 2011 (C) $ 153,259 09/03/04 153,259 153,259
12.5% Senior Secured Tranche B Note due 2011 $ 313,433 09/03/04 305,092 313,433
6.79% Senior Secured Revolver due 2011 (C) $ 78,358 09/03/04 78,357 78,357
Limited Partnership Interest (B) 7.84% int. 09/03/04 58,769 20,963
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 425 shs. 09/03/04 39,473 15,146
------------ -----------
634,950 581,158
------------ -----------
MBWS ULTIMATE HOLDCO, INC.
A provider of services throughout North Dakota that address the fluid management and related transportation needs of an oil well.
12% Senior Subordinated Note due 2016 $ 2,651,163 09/07/10 2,368,870 2,640,158
Preferred Stock Series A (B) 4,164 shs. 09/07/10 416,392 395,580
Common Stock (B) 458 shs. 09/07/10 45,845 43,510
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 1,158 shs. 09/07/10 115,870 12
------------ -----------
2,946,977 3,079,260
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
17
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
MEDSYSTEMS HOLDINGS LLC
A manufacturer of enteral feeding products, such as feeding tubes and other products related to assisted feeding.
13% Senior Subordinated Note due 2015 $ 1,172,388 08/29/08 $ 1,052,228 $ 1,184,112
Preferred Unit (B) 126 uts. 08/29/08 125,519 143,365
Common Unit Class A (B) 1,268 uts. 08/29/08 1,268 --
Common Unit Class B (B) 472 uts. 08/29/08 120,064 --
------------ -----------
1,299,079 1,327,477
------------ -----------
MEGTEC HOLDINGS, INC.
A supplier of industrial and environmental products and services to a broad array of industries.
12% Senior Subordinated Note due 2016 $ 2,161,017 09/24/08 1,981,274 2,134,105
Preferred Stock (B) 107 shs. 09/24/08 103,255 --
Limited Partnership Interest (B) 1.40% int. 09/16/08 388,983 --
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 35 shs. 09/24/08 33,268 --
------------ -----------
2,506,780 2,134,105
------------ -----------
MICROGROUP, INC.
A manufacturer of precision parts and assemblies, and a value-added supplier of metal tubing and bars.
12% Senior Subordinated Note due 2013 (D) $ 2,685,614 * 2,594,539 2,282,772
Common Stock (B) 450 shs. * 450,000 --
Warrant, exercisable until 2013, to purchase
common stock at $.02 per share (B) 164 shs. * 162,974 --
------------ -----------
* 08/12/05 and 09/11/06. 3,207,513 2,282,772
------------ -----------
MILWAUKEE GEAR COMPANY
A manufacturer of high-precision custom gears and gear drives used by original equipment manufacturers operating in a number of
industries.
13% Senior Subordinated Note due 2014 $ 2,353,846 07/21/08 2,236,587 2,118,461
Preferred Stock (B) 263 shs. 07/21/08 261,830 --
Common Stock (B) 18 shs. 07/21/08 20,000 --
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 10 shs. 07/21/08 11,285 --
------------ -----------
2,529,702 2,118,461
------------ -----------
MOMENTUM HOLDING CO.
A designer and supplier of upholstery fabric to commercial furniture manufacturers and architectural and design firms.
Limited Partnership Interest (B) 21.23% int. 08/04/06 106,153 262,088
Warrant, exercisable until 2014, to purchase
common stock at $.02 per share (B) 1,107 shs. 08/04/06 107,109 273,196
------------ -----------
213,262 535,284
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
18
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
MONESSEN HOLDING CORPORATION
A designer and manufacturer of a broad line of gas, wood, and electric hearth products and accessories.
14% Senior Subordinated Note due 2014 (D) $ 2,550,000 07/25/08 $ 2,416,568 $ 1,275,000
14% PIK Note due 2014 (D) $ 792,791 07/25/08 646,821 396,395
Warrant, exercisable until 2014, to purchase
common stock at $.02 per share (B) 152 shs. 03/31/06 138,125 --
------------ -----------
3,201,514 1,671,395
------------ -----------
NABCO, INC.
A producer of explosive containment vessels in the United States.
14% Senior Subordinated Note due 2014 (D) $ 625,000 02/24/06 575,313 --
Limited Liability Company Unit (B) 825 uts. * 825,410 --
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 129 shs. 02/24/06 37,188 --
------------ -----------
* 02/24/06 and 06/22/07. 1,437,911 --
------------ -----------
NAVIS GLOBAL
A designer, manufacturer, seller and servicer of finishing machinery for the knit and woven segments of the global textile industry.
10.75% Senior Secured Note due 2011 (D) $ 695,588 05/28/04 689,460 660,809
14% Senior Subordinated Note due 2014 (D) $ 1,365,385 05/28/04 1,162,487 341,346
------------ -----------
1,851,947 1,002,155
------------ -----------
NESCO HOLDINGS CORPORATION
A sales and leasing company that provides equipment to the electric utility, telecommunications, and various other industries.
12% Senior Secured Subordinated Note due 2015 $ 2,125,000 08/02/07 1,888,243 2,125,000
Common Stock (B) 425,000 shs. 08/02/07 425,000 666,674
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 119,360 shs. 08/02/07 194,257 187,234
------------ -----------
2,507,500 2,978,908
------------ -----------
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 1,071,000
Limited Partnership Interest of
Saw Mill PCG Partners LLC (B) 2.73% int. 02/01/07 1,019,980 --
Limited Liability Company Unit Class D of
Saw Mill PCG Partners LLC (B) 15 uts. * 15,389 --
Limited Liability Company Unit Class D-1 of
Saw Mill PCG Partners LLC (B) 123 uts. 09/30/09 122,664 --
Preferred Stock Class A (B) 1 sh. 12/18/08 1,370 --
Preferred Stock Class A-1 (B) 11 shs. 09/30/09 10,643 --
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 91 shs. 02/02/07 90,830 --
------------ -----------
* 12/18/08 and 09/30/09. 2,669,446 1,071,000
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
19
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
NORTHWEST MAILING SERVICES, INC.
A producer of promotional materials for companies that use direct mail as part of their customer retention and loyalty programs.
12% Senior Subordinated Note due 2016 $ 2,818,421 * $ 2,307,058 $ 2,886,868
Limited Partnership Interest (B) 3,287 uts. * 328,679 150,167
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B) 4,920 shs. * 492,016 224,792
------------ -----------
* 07/09/09 and 08/09/10 3,127,753 3,261,827
------------ -----------
NYLONCRAFT, INC.
A supplier of engineered plastic components for the automotive industry.
10% Senior Secured Note due 2012 $ 812,500 01/28/02 812,500 771,875
15% Senior Subordinated Note due 2012 (D) $ 500,000 01/28/02 473,642 475,000
Convertible Preferred Stock A (B) 1,000 shs. 01/28/02 961,637 446,129
Common Stock (B) 312,500 shs. 01/28/02 312,500 --
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 243,223 shs. 01/28/02 162,045 --
------------ -----------
2,722,324 1,693,004
------------ -----------
O E C HOLDING CORPORATION
A provider of elevator maintenance, repair and modernization services.
13% Senior Subordinated Note due 2017 $ 1,333,333 06/04/10 1,216,016 1,360,888
Preferred Stock Series A (B) 1,661 shs. 06/04/10 166,062 157,759
Preferred Stock Series B (B) 934 shs. 06/04/10 93,376 9
Common Stock (B) 1,032 shs. 06/04/10 1,032 981
------------ -----------
1,476,486 1,519,637
------------ -----------
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 $ 80,468 01/03/06 79,261 80,468
13% Senior Subordinated Note due 2013 $ 687,241 01/03/06 641,561 687,241
Common Stock (B) 322,307 shs. 01/03/06 322,307 241,369
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 75,378 shs. 01/03/06 62,824 56,449
------------ -----------
1,105,953 1,065,527
------------ -----------
OLYMPIC SALES, INC.
A boat retailer in Washington state, Oregon, California and British Columbia.
12% Senior Subordinated Note due 2010 (D) $ 1,022,000 08/07/98 1,022,000 153,300
12% Senior Subordinated Note due 2010 (D) $ 307,071 02/09/00 268,283 46,061
------------ -----------
1,290,283 199,361
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
20
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
ONTARIO DRIVE & GEAR LTD.
A manufacturer of all-wheel drive, off-road amphibious vehicles and related accessories.
Limited Liability Company Unit (B) 3,667 uts. 01/17/06 $ 572,115 $ 678,798
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 619 shs. 01/17/06 170,801 114,605
------------ -----------
742,916 793,403
------------ -----------
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 $ 2,359,281 07/03/06 2,271,474 2,359,281
Preferred Unit (B) 382 uts. 07/03/06 382,150 598,554
Preferred Unit (B) 69 uts. 07/03/06 68,790 107,744
Common Unit Class I (B) 148 uts. 07/03/06 -- 1,367,320
Common Unit Class L (B) 31 uts. 07/03/06 -- 288,951
------------ -----------
2,722,414 4,721,850
------------ -----------
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 2,199,496 2,295,000
Preferred Stock (B) 36 shs. 03/31/06 329,596 464,393
Common Stock (B) 23 shs. 03/31/06 25,500 222,019
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 13 shs. 03/31/06 11,122 129,148
------------ -----------
2,565,714 3,110,560
------------ -----------
PACIFIC CONSOLIDATED HOLDINGS LLC
A manufacturer of rugged, mobile liquid and gaseous oxygen and nitrogen generating systems used in the global defense, oil and gas,
and medical sectors.
14% Senior Subordinated Note due 2012 $ 1,358,188 04/27/07 1,290,841 1,263,595
5% Senior Subordinated Note due 2012 $ 79,688 07/21/10 79,688 79,999
Preferred Shares Series E (B) 79,688 shs. 07/21/10 -- --
Limited Liability Company Unit (B) 1,754,707 uts. 04/27/07 63,233 --
------------ -----------
1,433,762 1,343,594
------------ -----------
PARADIGM PACKAGING, INC.
A manufacturer of plastic bottles and closures for the nutritional, pharmaceutical, personal care, and food packaging markets.
12% Senior Subordinated Note due 2011 $ 2,125,000 12/19/00 2,081,906 2,125,000
Membership Interests of MM/Lincap
PPI Investments, Inc., LLC (B) 2.42% int. 12/21/00 265,625 263,942
------------ -----------
2,347,531 2,388,942
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
21
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
PEARLMAN ENTERPRISES, INC.
A developer and distributor of tools, equipment, and supplies to the natural and engineered stone industry.
Preferred Stock Series A (B) 2,334 shs. 05/22/09 $ 111,508 $ --
Preferred Stock Series B (B) 13,334 shs. 05/22/09 547,872 --
Common Stock (B) 40,540 shs. 05/22/09 1,877,208 --
------------ -----------
2,536,588 --
------------ -----------
POSTLE ALUMINUM COMPANY LLC
A manufacturer and distributor of aluminum extruded products.
15% Senior Subordinated Note due 2013 $ 1,545,072 06/03/10 1,514,505 1,548,493
3% Senior Subordinated PIK Note due 2014 (D) $ 2,283,699 10/02/06 2,014,226 2,169,514
Limited Liability Company Unit Class A (B) 1,384 uts. 10/02/06 510,000 --
Limited Liability Company Unit (B) 143 uts. 05/22/09 642 --
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 8,595 shs. 10/02/06 124,644 --
------------ -----------
4,164,017 3,718,007
------------ -----------
POWER SERVICES HOLDING COMPANY
A provider of industrial motor repair services, predictive and preventative maintenance, and performance improvement consulting
serving the petrochemical, mining, power generation, metals, and paper industries.
12% Senior Subordinated Note due 2016 $ 2,372,093 02/11/08 2,193,362 2,312,423
Limited Partnership Interest (B) 23.70% int. 02/11/08 177,729 19,475
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 1,322 shs. 02/11/08 167,588 38,383
------------ -----------
2,538,679 2,370,281
------------ -----------
PRECISION WIRE HOLDING COMPANY
A manufacturer of specialty medical wires that are used in non-elective minimally invasive surgical procedures.
14.25% Senior Subordinated Note due 2016 $ 2,584,168 11/12/09 2,323,130 2,655,677
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B) 206 shs. 11/12/09 203,944 2
------------ -----------
2,527,074 2,655,679
------------ -----------
QUALIS AUTOMOTIVE LLC
A distributor of aftermarket automotive brake and chassis products.
13% Senior Subordinated Note due 2013 $ 1,742,711 05/28/04 1,598,853 1,742,711
Common Stock (B) 354,167 shs. 05/28/04 354,166 484,463
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 377,719 shs. 05/28/04 377,719 516,680
------------ -----------
2,330,738 2,743,854
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
22
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
R A J MANUFACTURING HOLDINGS LLC
A designer and manufacturer of women's swimwear sold under a variety of licensed brand names.
14.5% Senior Subordinated Note due 2014 $ 2,614,243 12/15/06 $ 2,415,863 $ 2,483,531
Limited Liability Company Unit (B) 2,828 uts. 12/15/06 282,810 109,096
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 3 shs. 12/15/06 131,483 51,448
------------ -----------
2,830,156 2,644,075
------------ -----------
R E I DELAWARE HOLDING, INC.
An engineer and manufacturer of highly complex, close tolerance components, assemblies, tooling and custom automation
equipment primarily for aerospace, medical and defense/radar markets.
12% Senior Subordinated Note due 2016 $ 2,550,000 01/18/08 2,467,911 2,565,813
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 6 shs. 01/18/08 31,089 8,916
------------ -----------
2,499,000 2,574,729
------------ -----------
ROYAL BATHS MANUFACTURING COMPANY
A manufacturer and distributor of acrylic and cultured marble bathroom products.
12.5% Senior Subordinated Note due 2011 $ 1,062,500 11/14/03 1,037,930 1,060,654
Warrant, exercisable until 2011, to purchase
common stock at $.01 per share (B) 140 shs. 11/14/03 122,946 153,909
------------ -----------
1,160,876 1,214,563
------------ -----------
SAFETY SPEED CUT MANUFACTURING COMPANY, INC.
A manufacturer of vertical panel saws and routers for the woodworking industry.
Class B Common Stock (B) 1,480 shs. 06/02/99 256,212 287,345
------------ -----------
SAVAGE SPORTS HOLDING, INC.
A manufacturer of sporting firearms.
12% Senior Subordinated Note due 2012 $ 1,538,793 09/10/04 1,491,348 1,538,793
Preferred Stock Series A (B) 66,185 shs. 05/28/10 66,185 62,871
Common Stock (B) 612 shs. * 642,937 827,551
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 134 shs. 09/10/04 113,578 180,682
------------ -----------
* 09/10/04 and 10/05/07. 2,314,048 2,609,897
------------ -----------
SENCORE HOLDING COMPANY
A designer, manufacturer, and marketer of decoders, receivers and modulators sold to broadcasters, satellite, cable and telecom
operators for encoding/decoding analog and digital transmission video signals.
12.5% Senior Subordinated Note due 2014 $ 1,765,385 01/15/09 1,571,983 1,500,577
Common Stock (B) 131 shs. 01/15/09 130,769 --
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B) 282 shs. 01/15/09 281,604 --
------------ -----------
1,984,356 1,500,577
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
23
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
SMART SOURCE HOLDINGS LLC
A short-term computer rental company.
12% Senior Subordinated Note due 2015 $ 2,223,076 * $ 2,055,232 $ 2,194,207
Limited Liability Company Unit (B) 619 uts. * 631,592 416,810
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 157 shs. * 164,769 105,592
------------ -----------
* 08/31/07 and 03/06/08. 2,851,593 2,716,609
------------ -----------
SPARTAN FOODS HOLDING COMPANY
A manufacturer of branded pizza crusts and pancakes.
12.25% Senior Subordinated Note due 2017 $ 1,912,500 12/15/09 1,659,708 1,930,591
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 257 shs. 12/15/09 227,109 3
------------ -----------
1,886,817 1,930,594
------------ -----------
SPECIALTY COMMODITIES, INC.
A distributor of specialty food ingredients.
13.25% Senior Subordinated Note due 2016 $ 2,305,033 10/23/08 2,173,111 2,351,133
Common Stock (B) 30,000 shs. 10/23/08 300,000 213,551
Warrant, excercisable until 2018, to purchase
common stock at $.01 per share (B) 11,054 shs. 10/23/08 100,650 78,686
------------ -----------
2,573,761 2,643,370
------------ -----------
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 2,136,843 2,182,899
Common Stock (B) 311 shs. 08/01/06 310,976 98,977
Warrant, exercisable until 2014, to purchase
common stock at $.02 per share (B) 104 shs. 08/01/06 93,293 32,964
------------ -----------
2,541,112 2,314,840
------------ -----------
SUNDANCE INVESTCO LLC
A provider of post-production services to producers of movies and television shows.
Limited Liability Company Unit Class A (B) 6,429 shs. 03/31/10 -- --
------------ -----------
SYNTERACT HOLDINGS CORPORATION
A provider of outsourced clinical trial management services to pharmaceutical and biotechnology companies.
14.5% Senior Subordinated Note due 2016 $ 2,609,066 09/02/08 2,452,263 2,635,156
Redeemable Preferred Stock Series A (B) 1,280 shs. 09/02/08 12,523 273
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 12,803 shs. 09/02/08 112,693 --
------------ -----------
2,577,479 2,635,429
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
24
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
T H I ACQUISITION, INC.
A machine servicing company providing value-added steel services to long steel products.
12% Senior Subordinated Note due 2016 $ 2,550,000 01/14/08 $ 2,410,946 $ 2,040,000
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 9 shs. 01/14/08 88,054 --
------------ -----------
2,499,000 2,040,000
------------ -----------
TELECORPS HOLDINGS, INC.
A provider of equipment and services to producers of television shows and motion pictures.
12.75% Senior Subordinated Note due 2016 $ 3,176,506 * 2,785,539 2,700,030
Common Stock (B) 270 shs. 09/02/09 10,994 --
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B) 7,906 shs. * 327,437 --
------------ -----------
* 05/20/09 and 09/02/09. 3,123,970 2,700,030
------------ -----------
TERRA RENEWAL LLC
A provider of wastewater residual management and required environmental reporting, permitting, nutrient management planning
and record keeping to companies involved in poultry and food processing.
12% Senior Subordinated Note due 2014 $ 1,162,110 * 1,119,886 949,128
6.79% Term Note due 2012 (C) $ 1,364,712 * 1,360,262 1,277,882
8.75% Term Note due 2012 (C) $ 1,453 * 1,453 1,360
Limited Partnership Interest of
Saw Mill Capital Fund V, LLC (B) 3.97% int. ** 149,176 --
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B) 72 shs. 04/28/06 59,041 --
------------ -----------
* 04/28/06 and 09/13/06. ** 03/01/05 and 10/10/08. 2,689,818 2,228,370
------------ -----------
TORRENT GROUP HOLDINGS, INC.
A contractor specializing in the sales and installation of engineered drywells for the retention and filtration of stormwater and
nuisance water flow.
14.5% Senior Subordinated Note due 2013 (D) $ 2,455,561 10/26/07 2,102,363 --
Series B Preferred Stock (B) 182 shs. 03/31/10 -- --
Common Stock (B) 515 shs. 03/31/10 414,051 --
------------ -----------
2,516,414 --
------------ -----------
TOTAL E & S, INC.
A manufacturer of a wide variety of equipment used in the oil and gas industry.
10.5% Senior Secured Term Note due 2013 $ 851,351 03/02/07 838,581 808,783
13% Senior Subordinated Note due 2014 (D) $ 598,450 03/02/07 490,608 299,225
------------ -----------
1,329,189 1,108,008
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
25
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
TRANSPAC HOLDING COMPANY
A designer, importer and wholesaler of home decor and seasonal gift products.
14% Senior Subordinated Note due 2015 (D) $ 1,773,006 10/31/07 $ 1,649,939 $ 1,684,356
Common Stock (B) 209 shs. 10/31/07 208,589 11,780
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B) 94 shs. 10/31/07 87,607 5,319
------------ -----------
1,946,135 1,701,455
------------ -----------
TRANSTAR HOLDING COMPANY
A distributor of aftermarket automotive transmission parts.
12% Senior Subordinated Note due 2014 $ 1,734,000 08/31/05 1,688,654 1,734,000
Common Stock (B) 1,078 shs. * 1,078,450 1,584,150
Warrant, exercisable until 2013, to purchase
common stock at $.02 per share (B) 86 shs. 08/31/05 77,485 126,238
------------ -----------
* 08/31/05 and 04/30/07. 2,844,589 3,444,388
------------ -----------
TRANZONIC COMPANIES (THE)
A producer of commercial and industrial supplies, such as safety products, janitorial supplies, work apparel, washroom and restroom
supplies and sanitary care products.
13% Senior Subordinated Note due 2010 $ 2,712,000 02/05/98 2,681,582 2,712,000
Common Stock (B) 630 shs. 02/04/98 630,000 726,199
Warrant, exercisable until 2010, to purchase
common stock at $.01 per share (B) 444 shs. 02/05/98 368,832 511,797
------------ -----------
3,680,414 3,949,996
------------ -----------
TRUCK BODIES & EQUIPMENT INTERNATIONAL
A designer and manufacturer of accessories for heavy and medium duty trucks, primarily dump bodies, hoists, various forms of flatbed
bodies, landscape bodies and other accessories.
8% Senior Subordinated Note due 2011 (D) $ 2,309,541 * 2,141,949 2,078,587
Preferred Stock Series B (B) 241 shs. 10/20/08 241,172 --
Common Stock (B) 742 shs. * 800,860 --
Warrant, exercisable until 2013, to purchase
common stock at $.02 per share (B) 153 shs. * 159,894 --
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B) 1,054 shs. 10/20/08 -- --
------------ -----------
* 07/19/05 and 12/22/05. 3,343,875 2,078,587
------------ -----------
TRUSTILE DOORS, INC.
A manufacturer and distributor of interior doors.
Warrant, exercisable until 2013, to purchase
common stock at $.01 per share (B) 5,781 shs. 04/11/03 68,059 1,092
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
26
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
U M A ENTERPRISES, INC.
An importer and wholesaler of home decor products.
15% Senior Subordinated Note due 2015 $ 1,799,982 02/08/08 $ 1,761,079 $ 1,798,860
Convertible Preferred Stock (B) 887 shs. 02/08/08 886,956 525,116
------------ -----------
2,648,035 2,323,976
------------ -----------
U-LINE CORPORATION
A manufacturer of high-end, built-in, undercounter ice making, wine storage and refrigeration appliances.
14.5% Senior Subordinated Note due 2012 $ 1,882,100 04/30/04 1,813,789 1,787,995
14.5% PIK Note due 2012 $ 418,614 10/06/09 371,407 397,684
Common Stock (B) 182 shs. 04/30/04 182,200 56,290
Warrant, exercisable until 2012, to purchase
common stock at $.01 per share (B) 230 shs. 04/30/04 211,736 71,188
------------ -----------
2,579,132 2,313,157
------------ -----------
VISIONEERING, INC.
A designer and manufacturer of tooling and fixtures for the aerospace industry.
10.5% Senior Secured Term Loan due 2013 $ 802,941 05/17/07 790,897 796,872
13% Senior Subordinated Note due 2014 $ 648,530 05/17/07 595,643 640,716
18% PIK Convertible Preferred Stock (B) 37,381 shs. 03/13/09 72,519 --
Common Stock (B) 123,529 shs. 05/17/07 123,529 --
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 35,006 shs. 05/17/07 55,055 --
------------ -----------
1,637,643 1,437,588
------------ -----------
VITEX PACKAGING GROUP, INC.
A manufacturer of specialty packaging, primarily envelopes and tags used on tea bags.
10% Senior Subordinated PIK Note due 2011 $ 169,294 10/29/09 156,927 160,830
5% Senior Subordinated PIK Note due 2011 (D) $ 850,000 06/30/07 741,532 807,500
Class B Unit (B) 767,881 uts. 10/29/09 348,058 --
Class C Unit (B) 850,000 uts. 10/29/09 780,572 393,155
Limited Liability Company Unit Class A (B) 723,465 uts. * 433,222 --
Limited Liability Company Unit Class B (B) 182,935 uts. 07/19/04 182,935 --
------------ -----------
* 07/19/04 and 10/29/09. 2,643,246 1,361,485
------------ -----------
WELLBORN FOREST HOLDING CO.
A manufacturer of semi-custom kitchen and bath cabinetry.
14.13% Senior Subordinated Note due 2014 $ 1,721,250 11/30/06 1,621,114 1,635,188
Common Stock (B) 191 shs. 11/30/06 191,250 57,997
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B) 95 shs. 11/30/06 86,493 28,954
------------ -----------
1,898,857 1,722,139
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
27
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Principal Amount
Shares, Units
or Ownership Acquisition
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Percentage Date Cost Fair Value
------------ -------- ------------ ------------
WHEATON HOLDING CORPORATION
A distributor and manufacturer of laboratory supply products and packaging.
13% Senior Subordinated Note due 2017 $ 3,000,000 06/08/10 $ 2,734,772 $ 3,050,545
Preferred Stock Series B (B) 2,109 shs. 06/08/10 210,924 21
Common Stock (B) 1,058 shs. 06/08/10 1,058 11
------------ -----------
2,946,754 3,050,577
------------ -----------
WORKPLACE MEDIA HOLDING CO.
A direct marketer specializing in providing advertisers with access to consumers in the workplace.
13% Senior Subordinated Note due 2015 (D) $ 1,159,196 05/14/07 1,076,003 811,437
Limited Partnership Interest (B) 23.16% int. 05/14/07 115,804 --
Warrant, exercisable until 2015, to purchase
common stock at $.02 per share (B) 88 shs. 05/14/07 83,462 --
------------ -----------
1,275,269 811,437
------------ -----------
XALOY SUPERIOR HOLDINGS, INC.
A provider of melt processing components and ancillary equipment for both plastic injection molding and extrusion applications.
15.5% Senior Subordinated Note due 2015 (D) $ 2,322,844 09/08/08 2,272,887 1,858,275
Common Stock (B) 283 shs. 09/08/08 283,333 --
------------ -----------
2,556,220 1,858,275
------------ -----------
Total Private Placement Investments (E) 223,370,201 201,158,838
------------ -----------
--------------------------------------------------------------------------------------------------------------------------------
28
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Interest Due Principal Market
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Rate Date Amount Cost Value
------- -------- ------------ ------------ ------------
RULE 144A SECURITIES - 5.21%:
BONDS - 4.91%
Appleton Papers, Inc. 11.250% 12/15/15 $ 303,000 $ 300,000 $ 227,250
Cemex Finance LLC 9.500 12/14/16 375,000 391,758 377,361
Cenveo Corporation 10.500 08/15/16 100,000 100,000 102,250
Coffeyville Resources LLC 9.000 04/01/15 140,000 139,315 147,700
CompuCom Systems, Inc. 12.500 10/01/15 1,330,000 1,296,156 1,426,425
Dae Aviation Holdings, Inc. 11.250 08/01/15 200,000 195,166 201,520
Energy Future Holdings 10.000 01/15/20 400,000 402,960 401,000
Evertec, Inc. 11.000 10/01/18 375,000 375,000 376,875
Fidelity National Information 7.625 07/15/17 100,000 100,000 106,750
Fidelity National Information 7.875 07/15/20 125,000 125,000 134,688
G F S I, Inc. (C) 10.500 06/01/11 715,000 685,658 715,000
Gannett Company, Inc. 9.375 11/15/17 125,000 123,228 136,875
Georgia Gulf Corporation 9.000 01/15/17 190,000 194,968 199,025
Hertz Corporation 7.500 10/15/18 75,000 75,000 74,719
Inergy, L.P. 7.000 10/01/18 200,000 200,000 205,000
International Lease Finance Corporation 8.625 09/15/15 140,000 137,938 149,800
Landry's Restaurants, Inc. 11.625 12/01/15 125,000 133,887 131,875
Libbey Glass, Inc. 10.000 02/15/15 125,000 130,868 134,375
LIN Television Corporation 8.375 04/15/18 190,000 192,514 199,975
Lyondell Chemical Co. 8.000 11/01/17 195,000 195,000 212,794
Magnachip Semiconductor 10.500 04/15/18 180,000 180,623 186,750
Michael Foods, Inc. 9.750 07/15/18 75,000 75,000 80,250
Nexstar Broadcasting Group, Inc. 8.875 04/15/17 175,000 173,887 182,438
Packaging Dynamics Corporation of America 10.000 05/01/16 1,200,000 1,194,678 1,134,000
Pinafore LLC 9.000 10/01/18 330,000 330,000 345,675
SandRidge Energy, Inc. 8.000 06/01/18 360,000 363,791 351,000
SandRidge Energy, Inc. 8.750 01/15/20 750,000 744,973 742,500
Sinclair Television Group, Inc. 9.250 11/01/17 425,000 414,311 455,813
Spectrum Brands, Inc. 9.500 06/15/18 125,000 123,293 135,625
Trimas Corporation 9.750 12/15/17 75,000 73,586 79,313
Tunica-Biloxi Gaming Authority 9.000 11/15/15 1,075,000 1,097,000 971,531
Univision Communications, Inc. 12.000 07/01/14 200,000 213,284 218,750
Valeant Pharmaceuticals International 6.750 10/01/17 70,000 69,650 71,575
Valeant Pharmaceuticals International 7.000 10/01/20 130,000 129,188 132,925
ViaSystems, Inc. 12.000 01/15/15 175,000 169,387 192,500
--------------------------------------------------------------------------------------------------------------------------------
29
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Shares or
Interest Due Principal Market
CORPORATE RESTRICTED SECURITIES:(A)(Continued) Rate Date Amount Cost Value
------- -------- ------------ ------------ ------------
Visant Corporation 10.000% 10/01/17 $ 75,000 $ 75,000 $ 78,563
Warner Chilcott Co. LLC 7.750 09/15/18 475,000 484,496 488,063
West Corporation 11.000 10/15/16 150,000 158,842 159,370
------------ ------------
TOTAL BONDS 11,565,405 11,667,898
------------ ------------
CONVERTIBLE PREFERRED STOCK - 0.00%
ETEX Corporation (B) 777 716 --
------------ ------------
TOTAL CONVERTIBLE PREFERRED STOCK 716 --
------------ ------------
PREFERRED STOCK - 0.06%
General Motors Acceptance Corporation, Inc. 143 45,009 131,203
TherOX, Inc. (B) 103 4,131 --
------------ ------------
TOTAL PREFERRED STOCK 49,140 131,203
------------ ------------
COMMON STOCK - 0.24%
Newark Group, Inc. (B) 134,520 796,863 571,627
Nortek, Inc. (B) 175 1 6,834
Touchstone Health Partnership (B) 1,168 4,254 --
------------ ------------
TOTAL COMMON STOCK 801,118 578,461
------------ ------------
TOTAL RULE 144A SECURITIES 12,416,379 12,377,562
------------ ------------
TOTAL CORPORATE RESTRICTED SECURITIES $235,786,580 $213,536,400
------------ ------------
--------------------------------------------------------------------------------------------------------------------------------
30
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Interest Due Principal Market
CORPORATE PUBLIC SECURITIES - 15.92%: (A) Rate Date Amount Cost Value
------- -------- ------------ ------------ ------------
BONDS - 15.37%
A M C Entertainment, Inc. 11.000% 02/01/16 $ 1,000,000 $ 1,003,180 $ 1,067,500
ACCO Brands Corporation 10.625 03/15/15 100,000 98,734 111,750
Affinia Group, Inc. 9.000 11/30/14 50,000 48,500 51,500
American Axle & Manufacturing Holding, Inc. 7.875 03/01/17 750,000 608,625 743,438
American General Finance Corporation 6.500 09/15/17 375,000 322,500 296,250
Atlas Pipeline Partners 8.125 12/15/15 750,000 663,750 757,500
B E Aerospace, Inc. 6.875 10/01/20 100,000 99,104 102,000
Berry Plastics Corporation 5.276 02/15/15 500,000 479,632 471,250
Berry Plastics Corporation (C) 8.875 09/15/14 750,000 705,000 729,375
Boyd Gaming Corporation 7.125 02/01/16 700,000 630,500 585,375
Boyd Gaming Corporation 6.750 04/15/14 150,000 137,250 133,500
C I T Group, Inc. 7.000 05/01/15 415,000 386,988 411,888
Cenveo Corporation 7.875 12/01/13 1,300,000 1,192,500 1,254,500
Chaparral Energy, Inc. 8.875 02/01/17 1,000,000 991,780 972,500
Clear Channel Worldwide Holdings, Inc. 9.250 12/15/17 750,000 750,000 800,625
Crosstex Energy L.P. 8.875 02/15/18 225,000 220,445 235,688
Diversey, Inc. 8.250 11/15/19 100,000 99,170 107,000
Easton-Bell Sports, Inc. 9.750 12/01/16 320,000 327,803 347,600
Energy Transfer Equity LP 7.500 10/15/20 100,000 100,000 105,250
Exide Corporation 10.500 03/15/13 430,000 431,914 439,675
Ford Motor Credit Co. 7.450 07/16/31 500,000 441,500 521,250
Ford Motor Credit Co. 8.000 06/01/14 125,000 107,232 136,250
Gencorp, Inc. 9.500 08/15/13 259,000 259,000 263,533
Geoeye, Inc. 9.625 10/01/15 750,000 775,909 818,438
Goodyear Tire & Rubber Co. 10.500 05/15/16 100,000 96,439 113,250
Gray Television, Inc. 10.500 06/29/15 500,000 476,223 499,375
Great Lakes Dredge & Dock Corporation 7.750 12/15/13 1,000,000 948,750 1,005,000
Harrah's Operating Co. 11.250 06/01/17 325,000 314,031 355,875
Hawker Beechcraft Acquisition Co. 9.750 04/01/17 1,000,000 1,006,288 592,500
Headwaters, Inc. 11.375 11/01/14 500,000 517,525 532,500
Intelsat Bermuda Ltd. 9.250 06/15/16 1,365,000 1,404,066 1,450,313
Interline Brands, Inc. 8.125 06/15/14 1,000,000 992,541 1,032,500
International Coal Group, Inc. 9.125 04/01/18 625,000 626,623 662,500
International Lease Finance Corporation 5.875 05/01/13 750,000 672,250 750,000
J.C. Penney Company, Inc. 7.950 04/01/17 500,000 554,735 561,250
Kar Holdings, Inc. 8.750 05/01/14 50,000 50,000 52,063
Lamar Media Corporation 7.875 04/15/18 125,000 125,000 131,250
Landry's Restaurants, Inc. 11.625 12/01/15 40,000 42,661 42,200
Level 3 Financing, Inc. 10.000 02/01/18 750,000 745,646 675,000
--------------------------------------------------------------------------------------------------------------------------------
31
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Interest Due Principal Market
CORPORATE PUBLIC SECURITIES: (A)(Continued) Rate Date Amount Cost Value
------- -------- ------------ ------------ ------------
Liberty Media Corporation 5.700% 05/15/13 $ 1,000,000 $ 951,610 $ 1,017,500
Manitowoc Company, Inc. 7.125 11/01/13 200,000 200,000 199,500
Markwest Energy Operating Co. 8.750 04/15/18 125,000 123,979 135,000
Markwest Energy Operating Co. 6.875 11/01/14 70,000 55,578 70,788
McClatchy Co. 11.500 02/15/17 275,000 271,766 292,531
Nebraska Book Company, Inc. 8.625 03/15/12 750,000 676,875 716,250
Nortek, Inc. 11.000 12/01/13 175,778 173,174 186,764
NXP Funding LLC 9.500 10/15/15 750,000 738,750 768,750
Omnicare, Inc. 7.750 06/01/20 75,000 75,000 76,688
Owens Corning, Inc. 9.000 06/15/19 55,000 54,112 65,313
Pinnacle Foods Finance LLC 9.250 04/01/15 300,000 308,003 312,000
Polypore, Inc. 8.750 05/15/12 1,000,000 965,000 1,002,500
Pregis Corporation 12.375 10/15/13 1,000,000 981,490 1,005,000
Quebecor Media, Inc. 7.750 03/15/16 1,050,000 978,235 1,082,813
Quiksilver, Inc. 6.875 04/15/15 315,000 290,463 298,463
RailAmerica, Inc. 9.250 07/01/17 240,000 230,589 263,100
Reddy Ice Corporation 13.250 11/01/15 150,000 153,893 140,250
Rental Service Corporation 9.500 12/01/14 750,000 728,490 777,188
Rite Aid Corporation 10.250 10/15/19 175,000 190,073 182,219
Sabre Holdings Corporation 8.350 03/15/16 500,000 455,000 510,000
Sanmina-SCI Corporation 8.125 03/01/16 375,000 374,063 384,375
Sheridan Acquisition Corporation 10.250 08/15/11 375,000 370,001 371,719
Sprint Capital Corporation 6.900 05/01/19 625,000 575,531 628,125
Stanadyne Corporation 10.000 08/15/14 1,000,000 1,000,000 945,000
Teck Resources Ltd. 10.750 05/15/19 65,000 61,977 81,855
Tekni-Plex, Inc. 8.750 11/15/13 650,000 653,141 510,250
Thermadyne Holdings Corporation 10.500 02/01/14 115,000 115,585 116,725
Ticketmaster Entertainment, Inc. 10.750 07/28/16 500,000 500,000 547,500
Titan International, Inc. 8.000 01/15/12 1,070,000 1,062,100 1,150,250
Tube City IMS Corporation 9.750 02/01/15 1,000,000 966,039 1,020,000
United Components, Inc. 9.375 06/15/13 1,080,000 1,079,565 1,098,900
United Rentals, Inc. 10.875 06/15/16 125,000 121,477 141,094
Verso Paper Holdings LLC 9.125 08/01/14 350,000 340,375 350,875
Verso Paper Holdings LLC 11.375 08/01/16 175,000 170,250 157,273
------------ ------------
TOTAL BONDS 35,445,978 36,525,769
------------ ------------
----------------------------------------------------------------------------------------------------------------
32
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Market
CORPORATE PUBLIC SECURITIES:(A)(Continued Shares Cost Value
------------ ------------ ------------
COMMON STOCK - 0.55%
Bally Total Fitness Holding Corporation (B) 29 $ 2 $ --
Chase Packaging Corporation (B) 9,541 -- 668
CKX, Inc. (B) 97,500 784,875 477,750
Directed Electronics, Inc. (B) 368,560 1,856,534 276,420
Intrepid Potash, Inc. (B) 365 11,680 9,516
ITC^DeltaCom, Inc. (B) 178,666 1,563,328 246,559
Rue21, Inc. (B) 650 12,350 16,777
Supreme Industries, Inc. 125,116 267,319 279,009
------------ ------------
TOTAL COMMON STOCK 4,496,088 1,306,699
------------ ------------
TOTAL CORPORATE PUBLIC SECURITIES $ 39,942,066 $ 37,832,468
------------ ------------
Interest Due Principal Market
SHORT-TERM SECURITIES: Rate/Yield^ Date Amount Cost Value
------- -------- ------------ ------------ ------------
COMMERCIAL PAPER - 2.48%
Citigroup Funding, Inc. 0.330% 10/05/10 $ 2,400,000 $ 2,399,912 $ 2,399,912
Wisconsin Electric Power Co. 0.230 10/04/10 3,500,000 3,499,933 3,499,933
------------ ------------
TOTAL SHORT-TERM SECURITIES $ 5,899,845 $ 5,899,845
------------ ------------
TOTAL INVESTMENTS 108.25% $281,628,491 $257,268,713
============ ------------
Other Assets 5.10 12,131,470
Liabilities (13.35) (31,740,487)
------ ------------
TOTAL NET ASSETS 100.00% $237,659,696
====== ============
(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 09/30/10.
(D) Defaulted security; interest not accrued.
(E) Illiquid securities. As of September 30, 2010, the value of these securities amounted to $201,158,838 or
84.64% of net assets.
^ Effective yield at purchase
PIK - Payment-in-kind
----------------------------------------------------------------------------------------------------------------
33
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION: Market Value Market Value
-------------- --------------
AEROSPACE - 4.44% BROADCASTING & ENTERTAINMENT - 2.36%
A E Company, Inc. $ 3,232,209 CKX, Inc. $ 477,750
B E Aerospace, Inc. 102,000 Clear Channel Worldwide Holdings, Inc. 800,625
Dae Aviation Holdings, Inc. 201,520 Geoeye, Inc. 818,438
Gencorp, Inc. 263,533 Gray Television, Inc. 499,375
Hawker Beechcraft Acquisition Co. 592,500 Lamar Media Corporation 131,250
P A S Holdco LLC 4,721,850 Liberty Media Corporation 1,017,500
Visioneering, Inc. 1,437,588 LIN Television Corporation 199,975
-------------- Nexstar Broadcasting Group, Inc. 182,438
10,551,200 Sinclair Television Group, Inc. 455,813
-------------- Univision Communications, Inc. 218,750
AUTOMOBILE - 5.16% Workplace Media Holding Co. 811,437
American Axle & Manufacturing Holding, Inc. 743,438 --------------
Exide Corporation 439,675 5,613,351
Goodyear Tire & Rubber Co. 113,250 --------------
Jason, Inc. 48,184 BUILDINGS & REAL ESTATE - 1.02%
Nyloncraft, Inc. 1,693,004 K W P I Holdings Corporation 2,350,726
Ontario Drive & Gear Ltd. 793,403 Owens Corning, Inc. 65,313
Qualis Automotive LLC 2,743,854 TruStile Doors, Inc. 1,092
Titan International, Inc. 1,150,250 --------------
Transtar Holding Company 3,444,388 2,417,131
United Components, Inc. 1,098,900 --------------
-------------- CHEMICAL, PLASTICS & RUBBER - 0.49%
12,268,346 Capital Specialty Plastics, Inc. 1,174,109
-------------- --------------
BEVERAGE, DRUG & FOOD - 6.43% CONSUMER PRODUCTS - 10.28%
Eatem Holding Company 3,069,067 Aero Holdings, Inc. 3,449,433
F F C Holding Corporation 2,970,300 Bravo Sports Holding Corporation 2,497,112
Golden County Foods Holding, Inc. 2,280,223 Custom Engineered Wheels, Inc. 2,597,082
Hospitality Mints Holding Company 2,114,060 Diversey, Inc. 107,000
Landry's Restaurants, Inc. 174,075 Easton-Bell Sports, Inc. 347,600
L H D Europe Holding, Inc. 24,225 G F S I, Inc. 715,000
Michael Foods, Inc. 80,250 K N B Holdings Corporation 2,862,243
Spartan Foods Holding Company 1,930,594 Kar Holdings, Inc. 52,063
Specialty Commodities, Inc. 2,643,370 Lyondell Chemical Co. 212,794
-------------- Manhattan Beachwear Holding Company 3,035,296
15,286,164 Momentum Holding Co. 535,284
-------------- R A J Manufacturing Holdings LLC 2,644,075
Reddy Ice Corporation 140,250
Royal Baths Manufacturing Company 1,214,563
The Tranzonic Companies 3,949,996
Visant Corporation 78,563
--------------
24,438,354
--------------
------------------------------------------------------------------------------------------------------------------------------------
34
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION: Market Value Market Value
-------------- --------------
CONTAINERS, PACKAGING & GLASS - 4.94% DIVERSIFIED/CONGLOMERATE, SERVICE - 11.37%
Berry Plastics Corporation $ 1,200,625 A S C Group, Inc. $ 2,607,970
Chase Packaging Corporation 668 A W X Holdings Corporation 551,250
Flutes, Inc. 459,193 ACCO Brands Corporation 111,750
Maverick Acquisition Company 581,158 Advanced Technologies Holdings 2,750,503
P I I Holding Corporation 3,110,560 Affinia Group, Inc. 51,500
Packaging Dynamics Corporation of America 1,134,000 Apex Analytix Holding Corporation 2,646,343
Paradigm Packaging, Inc. 2,388,942 Associated Diversified Services 1,785,648
Pregis Corporation 1,005,000 Clough, Harbour, and Associates 2,722,856
Tekni-Plex, Inc. 510,250 Crane Rental Corporation 2,289,755
Vitex Packaging Group, Inc. 1,361,485 Diversco, Inc./DHI Holdings, Inc. 473,000
-------------- Dwyer Group, Inc. 1,567,923
11,751,881 Insurance Claims Management, Inc. 343,008
-------------- Interline Brands, Inc. 1,032,500
DISTRIBUTION - 1.68% Mail Communications Group, Inc. 1,341,500
Duncan Systems, Inc. 1,475,181 Nesco Holdings Corporation 2,978,908
F C X Holdings Corporation 2,527,244 Northwest Mailing Services, Inc. 3,261,827
-------------- Pearlman Enterprises, Inc. --
4,002,425 Sabre Holdings Corporation 510,000
-------------- --------------
DIVERSIFIED/CONGLOMERATE, 27,026,241
MANUFACTURING - 10.23% --------------
A H C Holding Company, Inc. 2,960,524 ELECTRONICS - 1.57%
Arrow Tru-Line Holdings, Inc. 1,611,581 Barcodes Group, Inc. 2,338,079
C D N T, Inc. 1,372,079 Connecticut Electric, Inc. 728,215
Great Lakes Dredge & Dock Corporation 1,005,000 Directed Electronics, Inc. 276,420
Headwaters, Inc. 532,500 Sanmina-SCI Corporation 384,375
K P I Holdings, Inc. 2,001,196 --------------
MEGTEC Holdings, Inc. 2,134,105 3,727,089
Milwaukee Gear Company 2,118,461 --------------
Nortek, Inc. 193,598 FINANCIAL SERVICES - 3.95%
Polypore, Inc. 1,002,500 American General Finance Corporation 296,250
O E C Holding Corporation 1,519,637 C I T Group, Inc. 411,888
Postle Aluminum Company LLC 3,718,007 Cemex Finance LLC 377,361
Thermadyne Holdings Corporation 116,725 Evertec, Inc. 376,875
Trimas Corporation 79,313 Ford Motor Credit Co. 657,500
Truck Bodies & Equipment International 2,078,587 General Motors Acceptance Corporation, Inc. 131,203
Xaloy Superior Holdings, Inc. 1,858,275 Highgate Capital LLC --
-------------- International Lease Finance Corporation 899,800
24,302,088 Pinafore LLC 345,675
-------------- Ryder System, Inc. 2,399,912
Societe Generale NA 3,499,933
--------------
9,396,397
--------------
------------------------------------------------------------------------------------------------------------------------------------
35
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION: Market Value Market Value
-------------- --------------
HEALTHCARE, EDUCATION & CHILDCARE - 4.10% MACHINERY - 7.43%
American Hospice Management A S A P Industries LLC $ 1,280,037
Holding LLC $ 4,065,355 Davis-Standard LLC 2,679,812
F H S Holdings LLC -- E S P Holdco, Inc. 2,425,876
Synteract Holdings Corporation 2,635,429 M V I Holding, Inc. 1,199,056
Touchstone Health Partnership -- Manitowoc Company, Inc. 199,500
Wheaton Holding Corporation 3,050,577 Navis Global 1,002,155
-------------- NetShape Technologies, Inc. 1,071,000
9,751,361 Pacific Consolidated Holdings LLC 1,343,594
-------------- Power Services Holding Company 2,370,281
HOME & OFFICE FURNISHINGS, HOUSEWARES R E I Delaware Holding, Inc. 2,574,729
& DURABLE CONSUMER PRODUCTS - 8.50% Safety Speed Cut Manufacturing Company, Inc. 287,345
Connor Sport Court International, Inc. 2,614,320 Stanadyne Corporation 945,000
H M Holding Company 513,825 Supreme Industries, Inc. 279,009
Home Decor Holding Company 2,459,630 --------------
Justrite Manufacturing Acquisition Co. 1,804,003 17,657,394
K H O F Holdings, Inc. 187,965 --------------
Libbey Glass, Inc. 134,375 MEDICAL DEVICES/BIOTECH - 3.71%
Monessen Holding Corporation 1,671,395 Coeur, Inc. 1,336,009
Quiksilver, Inc. 298,463 E X C Acquisition Corporation 76,657
Spectrum Brands, Inc. 135,625 ETEX Corporation --
Stanton Carpet Holding Co. 2,314,840 MedSystems Holdings LLC 1,327,477
Transpac Holding Company 1,701,455 MicroGroup, Inc. 2,282,772
U M A Enterprises, Inc. 2,323,976 OakRiver Technology, Inc. 1,065,527
U-Line Corporation 2,313,157 Omnicare, Inc. 76,688
Wellborn Forest Holding Co. 1,722,139 Precision Wire Holding Company 2,655,679
-------------- TherOX, Inc. --
20,195,168 --------------
-------------- 8,820,809
LEISURE, AMUSEMENT & ENTERTAINMENT - 2.64% --------------
A M C Entertainment, Inc. 1,067,500 MINING, STEEL, IRON & NON-PRECIOUS
Bally Total Fitness Holding Corporation -- METALS - 1.32%
Boyd Gaming Corporation 718,875 T H I Acquisition, Inc. 2,040,000
Harrah's Operating Co. 355,875 Teck Resources Ltd. 81,855
Savage Sports Holding, Inc. 2,609,897 Tube City IMS Corporation 1,020,000
Ticketmaster Entertainment, Inc. 547,500 --------------
Tunica-Biloxi Gaming Authority 971,531 3,141,855
-------------- --------------
6,271,178
--------------
------------------------------------------------------------------------------------------------------------------------------------
36
MassMutual Corporate Investors
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Fair Value/ Fair Value/
INDUSTRY CLASSIFICATION: Market Value Market Value
-------------- --------------
NATURAL RESOURCES - 1.71% RETAIL STORES - 1.22%
Appleton Papers, Inc. $ 227,250 J.C. Penney Company, Inc. $ 561,250
Cenveo Corporation 1,356,750 Nebraska Book Company, Inc. 716,250
Georgia Culf Corporation 199,025 Olympic Sales, Inc. 199,361
International Coal Group, Inc. 662,500 Pinnacle Foods Finance LLC 312,000
Intrepid Potash, Inc. 9,516 Rental Service Corporation 777,188
SandRidge Energy, Inc. 1,093,500 Rite Aid Corporation 182,219
Verso Paper Holdings LLC 508,148 Rue21, Inc. 16,777
-------------- United Rentals, Inc. 141,094
4,056,689 --------------
-------------- 2,906,139
OIL & GAS - 3.68% --------------
Atlas Pipeline Partners 757,500 TECHNOLOGY - 2.97%
Coffeyville Resources LLC 147,700 Compucom Systems, Inc. 1,426,425
Chaparral Energy, Inc. 972,500 Fidelity National Information 241,438
Energy Transfer Equity LP 105,250 Magnachip Semiconductor 186,750
International Offshore Services LLC 2,569,633 NXP Funding LLC 768,750
MBWS Ultimate Holdco, Inc. 3,079,260 Sencore Holding Company 1,500,577
Total E & S, Inc. 1,108,008 Smart Source Holdings LLC 2,716,609
-------------- ViaSystems, Inc. 192,500
8,739,851 --------------
-------------- 7,033,049
PHARMACEUTICALS - 1.47% --------------
CorePharma LLC 2,790,935 TELECOMMUNICATIONS - 3.03%
Valeant Pharmaceuticals International 204,500 All Current Holding Company 1,328,319
Warner Chilcott Co. LLC 488,063 Intelsat Bermuda Ltd. 1,450,313
-------------- ITC^DeltaCom, Inc. 246,559
3,483,498 Level 3 Financing, Inc. 675,000
-------------- Sprint Capital Corporation 628,125
PUBLISHING/PRINTING - 1.03% Sundance Investco LLC --
Gannett Company, Inc. 136,875 Telecorps Holdings, Inc. 2,700,030
McClatchy Co. 292,531 West Corporation 159,370
Newark Group, Inc. 571,627 --------------
Quebecor Media, Inc. 1,082,813 7,187,716
Sheridan Acquisition Corporation 371,719 --------------
-------------- TRANSPORTATION - 0.14%
2,455,565 Hertz Corporation 74,719
-------------- NABCO, Inc. --
RailAmerica, Inc. 263,100
--------------
337,819
--------------
------------------------------------------------------------------------------------------------------------------------------------
37
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)
September 30, 2010
(Unaudited)
Fair Value/
INDUSTRY CLASSIFICATION: Market Value
--------------
UTILITIES - 0.44%
Crosstex Energy, L.P. $ 235,688
Energy Future Holdings 401,000
Inergy, L.P. 205,000
Markwest Energy Operating Co. 205,788
--------------
1,047,476
--------------
WASTE MANAGEMENT/POLLUTION - 0.94%
Terra Renewal LLC 2,228,370
Torrent Group Holdings, Inc. --
--------------
2,228,370
--------------
Total Investments - 108.25% $ 257,268,713
==============
See Notes to Consolidated Financial Statements
------------------------------------------------------------------------------------------------------------------------------------
38
MassMutual Corporate Investors
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. HISTORY
MassMutual Corporate Investors (the "Trust") commenced operations in 1971 as
a Delaware corporation. Pursuant to an Agreement and Plan of Reorganization
dated November 14, 1985, approved by shareholders, the Trust was reorganized
as a Massachusetts business trust under the laws of the Commonwealth of
Massachusetts, effective November 28, 1985.
The Trust is a diversified closed-end management investment company. Babson
Capital Management LLC ("Babson Capital"), a wholly-owned indirect subsidiary
of Massachusetts Mutual Life Insurance Company ("MassMutual"), acts as its
investment adviser. The Trust's investment objective is to maintain a
portfolio of securities providing a fixed yield and at the same time offering
an opportunity for capital gains. The Trust's principal investments are
privately placed, below-investment grade, long-term debt obligations with
equity features such as common stock, warrants, conversion rights, or other
equity features and, occasionally, preferred stocks. The Trust typically
purchases these investments, which are not publicly tradable, directly from
their issuers in private placement transactions. These investments are
typically mezzanine debt instruments with accompanying private equity
securities made to small or middle market companies. In addition, the Trust
may temporarily invest, subject to certain limitations, in marketable
investment grade debt securities, other marketable debt securities (including
high yield securities) and marketable common stocks. Below-investment grade
or high yield securities have predominantly speculative characteristics with
respect to the capacity of the issuer to pay interest and repay capital.
On January 27, 1998, the Board of Trustees authorized the formation of a
wholly-owned subsidiary of the Trust ("MMCI Subsidiary Trust") for the
purpose of holding certain investments. The results of MMCI Subsidiary Trust
are consolidated in the accompanying financial statements. Footnote 2.D below
discusses the federal tax consequences of the MMCI Subsidiary Trust.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
consistently by the Trust in the preparation of its consolidated financial
statements in conformity with accounting principles generally accepted in the
United States of America.
A. VALUATION OF INVESTMENTS:
Valuation of a security in the Trust's portfolio is made on the basis of
market price whenever market quotations are readily available and all
securities of the same class held by the Trust can be readily sold in such
market.
Nearly all securities which are acquired by the Trust directly from the
issuers and shares into which such securities may be converted or which may
be purchased on the exercise of warrants attached to such securities will be
subject to legal or contractual delays in, or restrictions on, resale and
will therefore be "restricted securities." Generally speaking, as contrasted
with open-market sales of unrestricted securities which may be effected
immediately if the market is adequate, restricted securities can be sold only
in a public offering for which a registration statement is in effect under
the Securities Act of 1933, as amended (the "1933 Act"), or pursuant to a
transaction that is exempt from registration under the 1933 Act.
The value of restricted securities, and of any other assets for which there
are no reliable market quotations, is the fair value as determined in good
faith by the Trust's Board of Trustees (the "Trustees"). Each restricted
security is valued by the Trustees at the time of its acquisition and at
least quarterly thereafter. The Trustees have established guidelines to aid
in the valuation of each security. Generally, restricted securities are
initially valued at cost or less at the time of acquisition by the Trust.
Values greater or less than cost are used thereafter for restricted
securities in appropriate circumstances. Among the factors ordinarily
considered are the existence of restrictions upon the sale of a security held
by the Trust; an estimate of the existence and the extent of a market for the
security; the extent of any discount at which the security was acquired; the
estimated period of time during which the security will not be freely
marketable; the estimated expenses of registering or otherwise qualifying the
security for public sale; estimated underwriting commissions if underwriting
would be required to effect a sale; in the case of a convertible security,
whether or not it would trade on the basis of its stock equivalent; in the
case of a debt obligation which would trade independently of any equity
equivalent, the current yields on comparable securities; the estimated amount
of the floating supply of such securities available for purchase; the
proportion of the issue held by the Trust; changes in the financial condition
and prospects of the issuer; the existence of merger proposals or tender
offers affecting the issuer; and any other factors affecting fair value, all
in accordance with the Investment Company Act of 1940, as amended (the "1940
Act"). In making valuations, opinions of counsel may be relied upon as to
whether or not securities are restricted securities and as to the legal
requirements for public sale.
When market quotations are readily available for unrestricted securities of
an issuer, restricted securities of the same class are generally valued at a
discount from the market price of such unrestricted securities. The Trustees,
however, consider all factors in fixing any discount, including the filing of
a registration statement for such securities under the 1933 Act and any other
developments which are likely to increase the probability that the securities
may be publicly sold by the Trust without restriction.
The Trustees meet at least once each quarter to approve the value of the
Trust's portfolio securities as of the close of business on the last business
day of the preceding quarter. This valuation requires the approval of a
majority of the Trustees of the Trust, including a majority of the Trustees
who are not interested persons of the Trust or of Babson Capital. In making
valuations, the Trustees will consider reports by Babson Capital analyzing
--------------------------------------------------------------------------------
39
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)
(Unaudited)
each portfolio security in accordance with the relevant factors referred to
above. Babson Capital has agreed to provide such reports to the Trust at
least quarterly.
The consolidated financial statements include private placement restricted
securities valued at $201,158,838 (84.64% of net assets) as of September 30,
2010 whose values have been estimated by the Trustees in the absence of
readily ascertainable market values. Due to the inherent uncertainty of
valuation, those estimated values may differ significantly from the values
that would have been used had a ready market for the securities existed, and
the differences could be material.
The values for Rule 144A restricted securities and corporate public
securities are stated at the last reported sales price or at prices based
upon quotations obtained from brokers and dealers as of September 30, 2010,
subject to discount where appropriate, and are approved by the Trustees.
Short-term securities with more than sixty days to maturity are valued at
fair value and short-term securities having a maturity of sixty days or less
are valued at amortized cost, which approximates market value.
In accordance with the authoritative guidance on fair value measurements and
disclosures under accounting principles generally accepted in the United
States of America ("U.S. GAAP'), the Trust discloses the fair value of its
investments in a hierarchy that prioritizes the inputs to valuation
techniques used to measure the fair value. The hierarchy gives the highest
priority to valuations based upon unadjusted quoted prices in active markets
for identical assets or liabilities (level 1 measurement) and the lowest
priority to valuations based upon unobservable inputs that are significant to
the valuation (level 3 measurements). The guidance establishes three levels
of the fair value hierarchy as follows:
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices
for similar securities, interest rates, prepayment speeds,
credit risk, etc.)
Level 3 - significant unobservable inputs (including the Trust's own
assumptions in determining the fair value of investments)
The inputs and methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Trust's net assets as
of September 30, 2010:
ASSETS: TOTAL LEVEL 1 LEVEL 2 LEVEL 3
--------------------------------------------------------------------------------
Restricted Securities
Corporate Bonds $181,662,149 $ -- $11,667,898 $169,994,251
Common Stock - U.S. 16,611,164 -- 6,834 16,604,330
Preferred Stock 7,139,367 -- 131,203 7,008,164
Partnerships and LLCs 8,123,720 -- -- 8,123,720
Public Securities
Corporate Bonds 36,525,769 -- 36,525,769 --
Common Stock - U.S. 1,306,699 1,306,699 -- --
Preferred Stock -- -- -- --
Short-term Securities 5,899,845 -- 5,899,845 --
--------------------------------------------------------------------------------
TOTAL $257,268,713 $1,306,699 $54,231,549 $201,730,465
Following is a reconciliation of Level 3 assets for which significant
unobservable inputs were used to determine fair value:
UNREALIZED
TOTAL GAINS PURCHASES, GAINS & LOSSES
BEGINNING OR LOSSES SALES, ISSUANCES TRANSFERS IN ENDING IN NET INCOME
BALANCE (REALIZED/ & SETTLEMENTS AND/OR BALANCE AT FROM ASSETS
ASSETS: AT 12/31/2009 UNREALIZED) (NET) OUT OF LEVEL 3 09/30/2010 STILL HELD
------------------------------------------------------------------------------------------------------------------------------------
Restricted Securities
Corporate Bonds $152,772,751 $6,884,600 $10,336,900 $ -- $169,994,251 $4,729,903
Common Stock - U.S. 14,693,318 1,647,206 263,806 -- 16,604,330 1,063,228
Preferred Stock 6,638,626 2,381,932 (2,012,394) -- 7,008,164 1,078,181
Partnerships and LLCs 6,678,496 2,751,705 (1,306,481) -- 8,123,720 1,716,253
Public Securities
Corporate Bonds 10 (8) (2) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
$180,783,201 $13,665,435 $7,281,829 $ -- $201,730,465 $8,587,565
====================================================================================================================================
40
MassMutual Corporate Investors
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
B. ACCOUNTING FOR INVESTMENTS:
Investment transactions are accounted for on the trade date. Dividend income
is recorded on the ex-dividend date. Interest income is recorded on the
accrual basis, including the amortization of premiums and accretion of
discounts on bonds held using the yield-to-maturity method. The Trust does
not accrue income when payment is delinquent and when management believes
payment is questionable.
Realized gains and losses on investment transactions and unrealized
appreciation and depreciation of investments are reported for financial
statement and Federal income tax purposes on the identified cost method.
C. USE OF ESTIMATES:
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from
those estimates.
D. FEDERAL INCOME TAXES:
The Trust has elected to be taxed as a "regulated investment company" under
the Internal Revenue Code, and intends to maintain this qualification and to
distribute substantially all of its net taxable income to its shareholders.
In any year when net long-term capital gains are realized by the Trust,
management, after evaluating the prevailing economic conditions, will
recommend that the Trustees either designate the net realized long-term gains
as undistributed and pay the Federal capital gains taxes thereon or
distribute all or a portion of such net gains.
The Trust is taxed as a regulated investment company and is therefore limited
as to the amount of non-qualified income that it may receive as the result of
operating a trade or business, e.g. the Trust's pro rata share of income
allocable to the Trust by a partnership operating company. The Trust's
violation of this limitation could result in the loss of its status as a
regulated investment company, thereby subjecting all of its net income and
capital gains to corporate taxes prior to distribution to its shareholders.
The Trust, from time-to-time, identifies investment opportunities in the
securities of entities that could cause such trade or business income to be
allocable to the Trust. The MMCI Subsidiary Trust (described in Footnote 1
above) was formed in order to allow investment in such securities without
adversely affecting the Trust's status as a regulated investment company.
The MMCI Subsidiary Trust is not taxed as a regulated investment company.
Accordingly, prior to the Trust receiving any distributions from the MMCI
Subsidiary Trust, all of the MMCI Subsidiary Trust's taxable income and
realized gains, including non-qualified income and realized gains, is subject
to taxation at prevailing corporate tax rates. For the nine months ended
September 30, 2010, the MMCI Subsidiary Trust has accrued income tax expense
of $646,067.
Beginning with the 2009 annual financial statements, the Trust recognizes a
tax benefit from an uncertain position only if it is more likely than not
that the position is sustainable, based solely on its technical merits and
consideration of the relevant taxing authority's widely understood
administrative practices and precedents. If this threshold is met, the Trust
measures the tax benefit as the largest amount of benefit that is greater
than fifty percent likely of being realized upon ultimate settlement. The
Trust has evaluated and determined that the tax positions did not have a
material effect on the Trust's financial position and results of operations
for the nine months ended September 30, 2010.
E. DISTRIBUTIONS TO SHAREHOLDERS:
The Trust records distributions to shareholders from net investment income
and net realized gains, if any, on the exdividend date. The Trust's net
investment income dividend is declared four times per year, in April, July,
October, and December. The Trust's net realized capital gain distribution, if
any, is declared in December.
F. EXPENSE REDUCTION:
Citibank, N.A. ("Citibank") serves as custodian to the Trust. Pursuant to the
custodian agreement, Citibank receives a fee reduced by credits on cash
balances the Trust maintains with Citibank. All credit balances, if any, used
to reduce the Trust's custodian fees are reported as fees paid indirectly on
the Statement of Operations. For the nine months ended September 30, 2010,
there were no credit balances used to reduce custodian fees.
3. INVESTMENT SERVICES CONTRACT
A. SERVICES:
Under an Investment Services Contract (the "Contract") with the Trust, Babson
Capital agrees to use its best efforts to present to the Trust a continuing
and suitable investment program consistent with the investment objectives and
policies of the Trust. Babson Capital represents the Trust in any
negotiations with issuers, investment banking firms, securities brokers or
dealers and other institutions or investors relating to the Trust's
investments. Under the Contract, Babson Capital also provides administration
of the day-to-day operations of the Trust and provides the Trust with office
space and office equipment, accounting and bookkeeping services, and
necessary executive, clerical and secretarial personnel for the performance
of the foregoing services.
B. FEE:
For its services under the Contract, Babson Capital is paid a quarterly
investment advisory fee of 0.3125% of the net asset value of the Trust as of
the last business day of each fiscal quarter, which is approximately equal to
1.25% annually. A majority of the Trustees, including a majority of the
Trustees who are not
--------------------------------------------------------------------------------
41
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED)
(Unaudited)
interested persons of the Trust or of Babson Capital, approve the valuation
of the Trust's net assets as of such day.
4. SENIOR SECURED INDEBTEDNESS
MassMutual holds the Trust's $30,000,000 Senior Fixed Rate Convertible Note
(the "Note") issued by the Trust on November 15, 2007. The Note is due
November 15, 2017 and accrues interest at 5.28% per annum. MassMutual, at its
option, can convert the principal amount of the Note into common shares. The
dollar amount of principal would be converted into an equivalent dollar
amount of common shares based upon the average price of the common shares for
ten business days prior to the notice of conversion. For the nine months
ended September 30, 2010, the Trust incurred total interest expense on the
Note of $1,188,000.
The Trust may redeem the Note, in whole or in part, at the principal amount
proposed to be redeemed together with the accrued and unpaid interest thereon
through the redemption date plus a Make Whole Premium. The Make Whole Premium
equals the excess of (i) the present value of the scheduled payments of
principal and interest which the Trust would have paid but for the proposed
redemption, discounted at the rate of interest of U.S. Treasury obligations
whose maturity approximates that of the Note plus 0.50% over (ii) the
principal of the Note proposed to be redeemed.
5. PURCHASES AND SALES OF INVESTMENTS
FOR THE NINE
MONTHS ENDED
09/30/2010
----------
PROCEEDS
COST OF FROM
INVESTMENTS SALES OR
ACQUIRED MATURITIES
-------- ----------
Corporate restricted securities $36,879,149 $31,964,467
Corporate public securities 18,822,701 20,580,427
The aggregate cost of investments is substantially the same for financial
reporting and Federal income tax purposes as of September 30, 2010. The net
unrealized depreciation of investments for financial reporting and Federal
tax purposes as of September 30, 2010 is $24,359,778 and consists of
$22,289,105 appreciation and $46,648,883 depreciation.
6. QUARTERLY RESULTS OF INVESTMENT OPERATIONS
MARCH 31, 2010
AMOUNT PER SHARE
------ ---------
Investment income $6,096,825
Net investment income 4,871,657 $ 0.52
Net realized and unrealized
gain on investments (net of taxes) 850,850 0.09
JUNE 30, 2010
AMOUNT PER SHARE
------ ---------
Investment income $6,319,951
Net investment income 5,070,723 $ 0.54
Net realized and unrealized
gain on investments (net of taxes) 4,922,366 0.52
SEPTEMBER 30, 2010
AMOUNT PER SHARE
------ ---------
Investment income $6,543,817
Net investment income 5,245,404 $ 0.56
Net realized and unrealized
gain on investments (net of taxes) 10,695,405 1.14
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42
MassMutual Corporate Investors
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43
MassMutual Corporate Investors
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44
MassMutual Corporate Investors
MEMBERS OF THE BOARD OF TRUSTEES
Donald Glickman
Robert E. Joyal
William J. Barrett
Michael H. Brown*
Donald E. Benson*
Dr. Corine T. Norgaard*
Clifford M. Noreen
Martin T. Hart
Maleyne M. Syracuse
*Member of the Audit Committee
OFFICERS
Clifford M. Noreen
Chairman
Michael L. Klofas
President
James M. Roy
Vice President & Chief
Financial Officer
Patricia J. Walsh
Vice President, Secretary
& Chief Legal Officer
Jill A. Fields
Vice President
Michael P. Hermsen
Vice President
Mary Wilson Kibbe
Vice President
Richard E. Spencer, II
Vice President
Daniel J. Florence
Treasurer
John T. Davitt, Jr.
Comptroller
Melissa M. LaGrant
Chief Compliance Officer
DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN
MassMutual Corporate Investors offers a Dividend Reinvestment and Share Purchase
Plan (the "Plan"). The Plan provides a simple way for shareholders to add to
their holdings in the Trust through the receipt of dividend shares issued by the
Trust or through the investment of cash dividends in Trust shares purchased in
the open market. A shareholder may join the Plan by filling out and mailing an
authorization card to Shareholder Financial Services, Inc., the Transfer Agent.
Participating shareholders will continue to participate until they notify the
Transfer Agent, in writing, of their desire to terminate participation. Unless a
shareholder elects to participate in the Plan, he or she will, in effect, have
elected to receive dividends and distributions in cash. Participating
shareholders may also make additional contributions to the Plan from their own
funds. Such contributions may be made by personal check or other means in an
amount not less than $10 nor more than $5,000 per quarter. Cash contributions
must be received by the Transfer Agent at least five days (but no more then 30
days) before the payment date of a dividend or distributions.
Whenever the Trust declares a dividend payable in cash or shares, the Transfer
Agent, acting on behalf of each participating shareholder, will take the
dividend in shares only if the net asset value is lower than the market price
plus an estimated brokerage commission as of the close of business on the
valuation day. The valuation day is the last day preceding the day of dividend
payment.
When the dividend is to be taken in shares, the number of shares to be received
is determined by dividing the cash dividend by the net asset value as of the
close of business on the valuation date or, if greater than net asset value, 95%
of the closing share price. If the net asset value of the shares is higher than
the market value plus an estimated commission, the Transfer Agent, consistent
with obtaining the best price and execution, will buy shares on the open market
at current prices promptly after the dividend payment date.
The reinvestment of dividends does not, in anyway, relieve participating
shareholders of any Federal, state or local tax. For Federal income tax
purposes, the amount reportable in respect of a dividend received in
newly-issued shares of the Trust will be the fair market value of the shares
received, which will be reportable as ordinary income and/or capital gains.
As compensation for its services, the Transfer Agent receives a fee of 5% of any
dividend and cash contribution (in no event in excess of $2.50 per distribution
per shareholder.)
Any questions regarding the Plan should be addressed to Shareholder Financial
Services, Inc., Transfer Agent for MassMutual Corporate Investors' Dividend
Reinvestment and Share Purchase Plan, P.O. Box 173673, Denver, CO 80217-3673.
MASSMUTUAL
CORPORATE INVESTORS
CI5233