UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5567
MFS INTERMEDIATE HIGH INCOME FUND
(Exact name of registrant as specified in charter)
500 Boylston Street, Boston, Massachusetts 02116
(Address of principal executive offices) (Zip code)
Susan S. Newton
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116
(Name and address of agents for service)
Registrant’s telephone number, including area code: (617) 954-5000
Date of fiscal year end: November 30
Date of reporting period: August 31, 2008
| ITEM 1. | SCHEDULE OF INVESTMENTS. |
MFS Intermediate High Income Fund
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – 130.8% |
||||||
| Aerospace – 2.7% |
||||||
| Bombardier, Inc., 6.3%, 2014 (n) |
$ | 640,000 | $ | 614,400 | ||
| DRS Technologies, Inc., 6.875%, 2013 |
355,000 | 359,438 | ||||
| Hawker Beechcraft Acquisition Co. LLC, 9.75%, 2017 |
400,000 | 392,000 | ||||
| Vought Aircraft Industries, Inc., 8%, 2011 |
430,000 | 396,675 | ||||
| $ | 1,762,513 | |||||
| Airlines – 0.6% |
||||||
| Continental Airlines, Inc., 7.339%, 2014 |
$ | 524,000 | $ | 391,690 | ||
| Apparel Manufacturers – 0.6% |
||||||
| Broder Brothers Co., 11.25%, 2010 |
$ | 260,000 | $ | 179,400 | ||
| Hanesbrands, Inc., FRN, 6.508%, 2014 |
220,000 | 190,300 | ||||
| $ | 369,700 | |||||
| Asset Backed & Securitized – 6.9% |
||||||
| Banc of America Commercial Mortgage, Inc., 5.39%, 2045 |
$ | 175,928 | $ | 149,876 | ||
| Banc of America Commercial Mortgage, Inc., 6.388%, 2051 (z) |
450,000 | 259,767 | ||||
| Banc of America Commercial Mortgage, Inc., FRN, 6.002%, 2017 |
176,159 | 150,344 | ||||
| Banc of America Commercial Mortgage, Inc., FRN, 5.772%, 2017 |
600,000 | 505,807 | ||||
| Citigroup Commercial Mortgage Trust, FRN, 5.888%, 2017 |
275,000 | 135,138 | ||||
| Credit Suisse Mortgage Capital Certificate, 5.343%, 2039 |
197,320 | 166,566 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., 5.44%, 2045 |
415,000 | 354,455 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.466%, 2047 |
354,818 | 296,537 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.937%, 2049 |
250,617 | 158,302 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.937%, 2049 |
404,598 | 247,543 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.937%, 2049 |
1,169,622 | 675,227 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 6.26%, 2051 |
155,000 | 96,508 | ||||
| Merrill Lynch Mortgage Trust, FRN, 6.022%, 2050 |
155,000 | 95,312 | ||||
| Merrill Lynch/Countrywide Commercial Mortgage Trust, FRN, 5.204%, 2049 |
450,000 | 377,564 | ||||
| Merrill Lynch/Countrywide Commercial Mortgage Trust, FRN, 5.902%, 2050 |
125,000 | 106,445 | ||||
| Wachovia Bank Commercial Mortgage Trust, FRN, 5.883%, 2047 |
250,000 | 152,378 | ||||
| Wachovia Bank Commercial Mortgage Trust, FRN, 5.943%, 2047 |
175,000 | 101,273 | ||||
| Wachovia Bank Commercial Mortgage Trust, FRN, 6.099%, 2051 |
450,000 | 386,085 | ||||
| $ | 4,415,127 | |||||
| Automotive – 4.8% |
||||||
| Accuride Corp., 8.5%, 2015 |
$ | 110,000 | $ | 70,950 | ||
| Allison Transmission, Inc., 11%, 2015 (n) |
690,000 | 634,800 | ||||
| FCE Bank PLC, 7.125%, 2012 |
EUR | 350,000 | 426,120 | |||
| Ford Motor Credit Co. LLC, 9.75%, 2010 |
$ | 205,000 | 178,598 | |||
| Ford Motor Credit Co. LLC, 7.8%, 2012 |
710,000 | 527,292 | ||||
| Ford Motor Credit Co. LLC, 12%, 2015 |
292,000 | 247,001 | ||||
| Ford Motor Credit Co. LLC, 8%, 2016 |
390,000 | 281,008 | ||||
| General Motors Corp., 8.375%, 2033 |
738,000 | 365,310 | ||||
| Goodyear Tire & Rubber Co., 8.625%, 2011 |
107,000 | 110,210 | ||||
| Goodyear Tire & Rubber Co., 9%, 2015 |
244,000 | 250,710 | ||||
| $ | 3,091,999 | |||||
| Broadcasting – 7.5% |
||||||
| Allbritton Communications Co., 7.75%, 2012 |
$ | 685,000 | $ | 613,075 | ||
| CanWest MediaWorks LP, 9.25%, 2015 (n) |
380,000 | 296,400 | ||||
| DIRECTV Holdings LLC, 7.625%, 2016 (n) |
440,000 | 438,900 | ||||
| Inmarsat Finance II PLC, 0% to 2008, 10.375% to 2012 |
460,000 | 468,625 | ||||
| Lamar Media Corp., 6.625%, 2015 |
830,000 | 736,625 | ||||
| Lamar Media Corp., “C”, 6.625%, 2015 |
295,000 | 261,444 | ||||
| LBI Media, Inc., 8.5%, 2017 (n) |
210,000 | 152,512 | ||||
| LIN TV Corp., 6.5%, 2013 |
460,000 | 377,200 | ||||
| Local TV Finance LLC, 9.25%, 2015 (n)(p) |
410,000 | 303,400 | ||||
| Newport Television LLC, 13%, 2017 (n)(p) |
430,000 | 324,650 | ||||
1
MFS Intermediate High Income Fund
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Broadcasting – continued |
||||||
| Nexstar Broadcasting Group, Inc., 7%, 2014 |
$ | 390,000 | $ | 319,800 | ||
| Univision Communications, Inc., 9.75%, 2015 (n)(p) |
665,000 | 475,475 | ||||
| Young Broadcasting, Inc., 8.75%, 2014 |
120,000 | 39,300 | ||||
| $ | 4,807,406 | |||||
| Brokerage & Asset Managers – 0.8% |
||||||
| Nuveen Investments, Inc., 10.5%, 2015 (n) |
$ | 605,000 | $ | 524,837 | ||
| Building – 1.9% |
||||||
| Associated Materials, Inc., 9.75%, 2012 |
$ | 105,000 | $ | 104,738 | ||
| Associated Materials, Inc., 0% to 2009, 11.25% to 2014 |
270,000 | 180,900 | ||||
| Building Materials Corp. of America, 7.75%, 2014 |
370,000 | 305,250 | ||||
| Nortek Holdings, Inc., 10%, 2013 (n) |
210,000 | 196,350 | ||||
| Nortek Holdings, Inc., 8.5%, 2014 |
260,000 | 158,600 | ||||
| Ply Gem Industries, Inc., 9%, 2012 |
360,000 | 198,000 | ||||
| Ply Gem Industries, Inc., 11.75%, 2013 (n) |
120,000 | 109,200 | ||||
| $ | 1,253,038 | |||||
| Business Services – 2.0% |
||||||
| First Data Corp., 9.875%, 2015 (n) |
$ | 645,000 | $ | 556,312 | ||
| SunGard Data Systems, Inc., 9.125%, 2013 |
275,000 | 279,125 | ||||
| SunGard Data Systems, Inc., 10.25%, 2015 |
477,000 | 480,579 | ||||
| $ | 1,316,016 | |||||
| Cable TV – 5.9% |
||||||
| Cablevision Systems Corp., 8%, 2012 |
$ | 325,000 | $ | 321,750 | ||
| CCH I Holdings LLC, 11%, 2015 |
685,000 | 525,738 | ||||
| CCH II Holdings LLC, 10.25%, 2010 |
560,000 | 537,600 | ||||
| CCO Holdings LLC, 8.75%, 2013 |
1,020,000 | 961,350 | ||||
| CSC Holdings, Inc., 7.625%, 2011 |
585,000 | 587,925 | ||||
| Mediacom LLC, 9.5%, 2013 |
370,000 | 357,975 | ||||
| NTL Cable PLC, 9.125%, 2016 |
100,000 | 95,250 | ||||
| Virgin Media Finance PLC, 8.75%, 2014 |
180,000 | 171,900 | ||||
| Virgin Media Finance PLC, 8.75%, 2014 |
EUR | 160,000 | 212,400 | |||
| $ | 3,771,888 | |||||
| Chemicals – 5.2% |
||||||
| Chemtura Corp., 6.875%, 2016 |
$ | 400,000 | $ | 338,000 | ||
| Huntsman International LLC, 6.875%, 2013 |
EUR | 200,000 | 256,699 | |||
| Huntsman International LLC, 7.875%, 2014 |
$ | 370,000 | 344,100 | |||
| Innophos, Inc., 8.875%, 2014 |
735,000 | 753,375 | ||||
| KI Holdings, Inc., 0% to 2009, 9.875% to 2014 |
340,000 | 302,600 | ||||
| Momentive Performance Materials, Inc., 9.75%, 2014 |
110,000 | 99,275 | ||||
| Momentive Performance Materials, Inc., 11.5%, 2016 |
435,000 | 339,300 | ||||
| Nalco Co., 7.75%, 2011 |
330,000 | 334,125 | ||||
| Nalco Co., 8.875%, 2013 |
535,000 | 556,400 | ||||
| $ | 3,323,874 | |||||
| Consumer Goods & Services – 3.6% |
||||||
| Corrections Corp. of America, 6.25%, 2013 |
$ | 175,000 | $ | 171,500 | ||
| GEO Group, Inc., 8.25%, 2013 |
435,000 | 439,350 | ||||
| Jarden Corp., 7.5%, 2017 |
250,000 | 222,500 | ||||
| KAR Holdings, Inc., 10%, 2015 |
375,000 | 315,937 | ||||
| Service Corp. International, 7.375%, 2014 |
50,000 | 48,750 | ||||
| Service Corp. International, 6.75%, 2016 |
205,000 | 188,600 | ||||
| Service Corp. International, 7%, 2017 |
785,000 | 732,012 | ||||
| Ticketmaster, 10.75%, 2016 (z) |
165,000 | 169,125 | ||||
| $ | 2,287,774 | |||||
2
MFS Intermediate High Income Fund
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Containers – 2.8% |
||||||
| Crown Americas LLC, 7.625%, 2013 |
$ | 215,000 | $ | 218,763 | ||
| Crown Americas LLC, 7.75%, 2015 |
530,000 | 543,250 | ||||
| Graham Packaging Co. LP, 9.875%, 2014 |
400,000 | 351,000 | ||||
| Owens-Brockway Glass Container, Inc., 8.25%, 2013 |
650,000 | 669,500 | ||||
| $ | 1,782,513 | |||||
| Defense Electronics – 1.0% |
||||||
| L-3 Communications Corp., 5.875%, 2015 |
$ | 340,000 | $ | 320,450 | ||
| L-3 Communications Corp., 6.375%, 2015 |
310,000 | 296,825 | ||||
| $ | 617,275 | |||||
| Electronics – 1.0% |
||||||
| Flextronics International Ltd., 6.25%, 2014 |
$ | 345,000 | $ | 318,262 | ||
| Spansion LLC, 11.25%, 2016 (n) |
515,000 | 321,875 | ||||
| $ | 640,137 | |||||
| Energy – Independent – 5.9% |
||||||
| Chaparral Energy, Inc., 8.875%, 2017 |
$ | 230,000 | $ | 199,525 | ||
| Chesapeake Energy Corp., 7%, 2014 |
195,000 | 193,050 | ||||
| Chesapeake Energy Corp., 6.375%, 2015 |
410,000 | 381,300 | ||||
| Forest Oil Corp., 7.25%, 2019 (n) |
170,000 | 156,400 | ||||
| Hilcorp Energy I LP, 9%, 2016 (n) |
165,000 | 160,875 | ||||
| Mariner Energy, Inc., 8%, 2017 |
205,000 | 187,575 | ||||
| Newfield Exploration Co., 6.625%, 2014 |
280,000 | 263,550 | ||||
| OPTI Canada, Inc., 8.25%, 2014 |
605,000 | 604,244 | ||||
| Plains Exploration & Production Co., 7%, 2017 |
480,000 | 432,000 | ||||
| Quicksilver Resources, Inc., 7.125%, 2016 |
520,000 | 452,400 | ||||
| SandRidge Energy, Inc., 8%, 2018 (n) |
455,000 | 426,562 | ||||
| Southwestern Energy Co., 7.5%, 2018 (n) |
360,000 | 368,100 | ||||
| $ | 3,825,581 | |||||
| Entertainment – 0.9% |
||||||
| AMC Entertainment, Inc., 11%, 2016 |
$ | 325,000 | $ | 329,875 | ||
| Marquee Holdings, Inc., 9.505%, 2014 |
300,000 | 238,500 | ||||
| $ | 568,375 | |||||
| Financial Institutions – 1.5% |
||||||
| General Motors Acceptance Corp., 6.875%, 2011 |
$ | 1,258,000 | $ | 780,639 | ||
| General Motors Acceptance Corp., 8%, 2031 |
317,000 | 170,974 | ||||
| $ | 951,613 | |||||
| Food & Beverages – 2.4% |
||||||
| ARAMARK Corp., 8.5%, 2015 |
$ | 520,000 | $ | 523,900 | ||
| B&G Foods, Inc., 8%, 2011 |
325,000 | 318,500 | ||||
| Dean Foods Co., 7%, 2016 |
435,000 | 402,375 | ||||
| Del Monte Corp., 6.75%, 2015 |
335,000 | 314,900 | ||||
| $ | 1,559,675 | |||||
| Forest & Paper Products – 2.9% |
||||||
| Abitibi-Consolidated, Inc., 8.375%, 2015 |
$ | 380,000 | $ | 155,800 | ||
| Bowater, Inc., 6.5%, 2013 |
500,000 | 277,500 | ||||
| Georgia-Pacific Corp., 7.125%, 2017 (n) |
190,000 | 176,225 | ||||
| Georgia-Pacific Corp., 8%, 2024 |
425,000 | 388,875 | ||||
| Graphic Packaging International Corp., 9.5%, 2013 |
340,000 | 319,600 | ||||
| Millar Western Forest Products Ltd., 7.75%, 2013 |
375,000 | 228,750 | ||||
| NewPage Holding Corp., 10%, 2012 |
90,000 | 87,300 | ||||
| Smurfit-Stone Container Corp., 8%, 2017 |
315,000 | 252,000 | ||||
| $ | 1,886,050 | |||||
| Gaming & Lodging – 8.6% |
||||||
| Circus & Eldorado Joint Venture, 10.125%, 2012 |
$ | 300,000 | $ | 274,500 | ||
3
MFS Intermediate High Income Fund
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Gaming & Lodging – continued |
||||||
| Firekeepers Development Authority, 13.875%, 2015 (z) |
$ | 335,000 | $ | 309,037 | ||
| Fontainebleau Las Vegas Holdings LLC, 10.25%, 2015 (n) |
900,000 | 425,250 | ||||
| Galaxy Entertainment Finance Co. Ltd., 9.875%, 2012 (n) |
350,000 | 329,000 | ||||
| Harrah’s Operating Co., Inc., 5.5%, 2010 |
205,000 | 172,200 | ||||
| Harrah’s Operating Co., Inc., 10.75%, 2016 (n) |
1,060,000 | 712,850 | ||||
| Harrah’s Operating Co., Inc., 10.75%, 2018 (n)(p) |
310,000 | 186,000 | ||||
| Host Hotels & Resorts, Inc., 7.125%, 2013 |
205,000 | 193,212 | ||||
| Host Hotels & Resorts, Inc., 6.75%, 2016 |
160,000 | 137,600 | ||||
| Jacobs Entertainment, Inc., 9.75%, 2014 |
365,000 | 259,150 | ||||
| MGM Mirage, 8.375%, 2011 |
535,000 | 485,512 | ||||
| MGM Mirage, 5.875%, 2014 |
180,000 | 144,000 | ||||
| Pinnacle Entertainment, Inc., 7.5%, 2015 |
710,000 | 550,250 | ||||
| Station Casinos, Inc., 6%, 2012 |
245,000 | 170,887 | ||||
| Station Casinos, Inc., 6.875%, 2016 |
715,000 | 311,025 | ||||
| Station Casinos, Inc., 6.625%, 2018 |
875,000 | 363,125 | ||||
| Trump Entertainment Resorts Holdings, Inc., 8.5%, 2015 |
1,105,000 | 505,537 | ||||
| $ | 5,529,135 | |||||
| Industrial – 2.5% |
||||||
| Blount, Inc., 8.875%, 2012 |
$ | 335,000 | $ | 341,700 | ||
| JohnsonDiversey Holdings, Inc., 10.67%, 2013 |
450,000 | 452,250 | ||||
| JohnsonDiversey, Inc., 9.625%, 2012 |
EUR | 100,000 | 140,818 | |||
| JohnsonDiversey, Inc., “B”, 9.625%, 2012 |
$ | 675,000 | 686,812 | |||
| $ | 1,621,580 | |||||
| Insurance – Property & Casualty – 0.7% |
||||||
| USI Holdings Corp., 9.75%, 2015 (n) |
$ | 575,000 | $ | 458,562 | ||
| Machinery & Tools – 0.6% |
||||||
| Case New Holland, Inc., 7.125%, 2014 |
$ | 400,000 | $ | 389,000 | ||
| Major Banks – 1.1% |
||||||
| Bank of America Corp., 8% to 2018, FRN to 2049 |
$ | 330,000 | $ | 294,091 | ||
| JPMorgan Chase & Co., 7.9% to 2018, FRN to 2049 |
470,000 | 426,995 | ||||
| $ | 721,086 | |||||
| Market Index Securities – 2.9% |
||||||
| Dow Jones CDX High Yield Index, 7.625%, 2012 (z) |
$ | 1,980,000 | $ | 1,848,825 | ||
| Medical & Health Technology & Services – 10.9% |
||||||
| Biomet, Inc., 10%, 2017 |
$ | 405,000 | $ | 437,400 | ||
| Biomet, Inc., 11.625%, 2017 |
480,000 | 504,600 | ||||
| Community Health Systems, Inc., 8.875%, 2015 |
1,050,000 | 1,060,500 | ||||
| Cooper Cos., Inc., 7.125%, 2015 |
310,000 | 297,600 | ||||
| DaVita, Inc., 7.25%, 2015 |
1,030,000 | 1,013,263 | ||||
| HCA, Inc., 6.375%, 2015 |
520,000 | 429,000 | ||||
| HCA, Inc., 9.25%, 2016 |
1,095,000 | 1,126,481 | ||||
| HCA, Inc., 9.625%, 2016 |
530,000 | 534,637 | ||||
| Psychiatric Solutions, Inc., 7.75%, 2015 |
235,000 | 227,950 | ||||
| U.S. Oncology, Inc., FRN, 7.949%, 2012 (p) |
279,000 | 223,200 | ||||
| U.S. Oncology, Inc., 10.75%, 2014 |
300,000 | 300,750 | ||||
| Universal Hospital Services, Inc., 8.5%, 2015 (p) |
400,000 | 398,000 | ||||
| VWR Funding, Inc., 10.25%, 2015 (p) |
525,000 | 477,750 | ||||
| $ | 7,031,131 | |||||
| Metals & Mining – 5.2% |
||||||
| Arch Western Finance LLC, 6.75%, 2013 |
$ | 255,000 | $ | 254,363 | ||
| FMG Finance Ltd., 10.625%, 2016 (n) |
670,000 | 750,400 | ||||
| Freeport-McMoRan Copper & Gold, Inc., 8.375%, 2017 |
1,230,000 | 1,303,800 | ||||
| Freeport-McMoRan Copper & Gold, Inc., FRN, 5.882%, 2015 |
555,000 | 556,465 | ||||
4
MFS Intermediate High Income Fund
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Metals & Mining – continued |
||||||
| Peabody Energy Corp., 7.375%, 2016 |
$ | 480,000 | $ | 494,400 | ||
| $ | 3,359,428 | |||||
| Municipals – 1.9% |
||||||
| Cabazon Band Mission Indians, CA, Mortgage Notes, 13%, 2011 |
$ | 575,000 | $ | 604,049 | ||
| Regional Transportation Authority, IL, “A”, MBIA, 4.5%, 2035 |
315,000 | 293,615 | ||||
| Virginia Tobacco Settlement Financing Corp., “A-1”, 6.706%, 2046 |
420,000 | 330,834 | ||||
| $ | 1,228,498 | |||||
| Natural Gas – Distribution – 1.1% |
||||||
| AmeriGas Partners LP, 7.125%, 2016 |
$ | 335,000 | $ | 311,550 | ||
| Inergy LP, 6.875%, 2014 |
450,000 | 405,000 | ||||
| $ | 716,550 | |||||
| Natural Gas – Pipeline – 4.7% |
||||||
| Atlas Pipeline Partners LP, 8.125%, 2015 |
$ | 165,000 | $ | 157,575 | ||
| Atlas Pipeline Partners LP, 8.75%, 2018 (n) |
250,000 | 243,750 | ||||
| Colorado Interstate Gas Co., 6.8%, 2015 |
91,000 | 91,945 | ||||
| Deutsche Bank (El Paso Performance-Linked Trust, CLN), 7.75%, 2011 (n) |
115,000 | 116,265 | ||||
| El Paso Corp., 6.875%, 2014 |
325,000 | 321,957 | ||||
| El Paso Corp., 7.25%, 2018 |
295,000 | 289,837 | ||||
| Williams Cos., Inc., 6.375%, 2010 (n) |
935,000 | 949,025 | ||||
| Williams Cos., Inc., 8.125%, 2012 |
140,000 | 148,750 | ||||
| Williams Cos., Inc., 7.75%, 2031 |
215,000 | 220,912 | ||||
| Williams Partners LP, 7.25%, 2017 |
500,000 | 501,250 | ||||
| $ | 3,041,266 | |||||
| Network & Telecom – 6.2% |
||||||
| Cincinnati Bell, Inc., 8.375%, 2014 |
$ | 455,000 | $ | 430,544 | ||
| Cincinnati Bell, Inc., 7%, 2015 |
395,000 | 363,400 | ||||
| Citizens Communications Co., 9.25%, 2011 |
305,000 | 315,675 | ||||
| Citizens Communications Co., 7.875%, 2027 |
325,000 | 279,500 | ||||
| Nordic Telephone Co. Holdings, 8.25%, 2016 (n) |
EUR | 240,000 | 318,600 | |||
| Orascom Telecom Finance S.C.A., 7.875%, 2014 (z) |
$ | 225,000 | 206,145 | |||
| Qwest Capital Funding, Inc., 7.25%, 2011 |
430,000 | 413,337 | ||||
| Qwest Communications International, Inc. “B”, 7.5%, 2014 |
250,000 | 227,500 | ||||
| Qwest Corp., 7.875%, 2011 |
125,000 | 124,062 | ||||
| Qwest Corp., 8.875%, 2012 |
515,000 | 518,862 | ||||
| Qwest Corp., 7.5%, 2014 |
145,000 | 134,487 | ||||
| Windstream Corp., 8.625%, 2016 |
650,000 | 643,500 | ||||
| $ | 3,975,612 | |||||
| Oil Services – 0.8% |
||||||
| Basic Energy Services, Inc., 7.125%, 2016 |
$ | 345,000 | $ | 324,300 | ||
| Seitel, Inc., 9.75%, 2014 |
220,000 | 195,250 | ||||
| $ | 519,550 | |||||
| Pharmaceuticals – 0.3% |
||||||
| Rotavax LLC, FRN, 8.04%, 2014 (z) |
$ | 235,438 | $ | 220,135 | ||
| Pollution Control – 0.5% |
||||||
| Allied Waste North America, Inc., 7.875%, 2013 |
$ | 340,000 | $ | 347,650 | ||
| Printing & Publishing – 4.2% |
||||||
| American Media Operations, Inc., 10.25%, 2009 (z) |
$ | 15,926 | $ | 11,945 | ||
| American Media Operations, Inc., “B”, 10.25%, 2009 |
438,000 | 328,500 | ||||
| Dex Media West LLC, 9.875%, 2013 |
978,000 | 753,060 | ||||
| Dex Media, Inc., 0% to 2008, 9% to 2013 |
250,000 | 145,000 | ||||
| Idearc, Inc., 8%, 2016 |
642,000 | 290,505 | ||||
| Morris Publishing, 7%, 2013 |
310,000 | 148,800 | ||||
| Nielsen Finance LLC, 10%, 2014 |
510,000 | 516,375 | ||||
5
MFS Intermediate High Income Fund
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Printing & Publishing – continued |
||||||
| Nielsen Finance LLC, 0% to 2011, 12.5% to 2016 |
$ | 255,000 | $ | 174,675 | ||
| Quebecor World, Inc., 6.125%, 2013 (d) |
240,000 | 85,800 | ||||
| R.H. Donnelley Corp., 8.875%, 2016 |
515,000 | 270,375 | ||||
| $ | 2,725,035 | |||||
| Railroad & Shipping – 1.0% |
||||||
| American Railcar Industries, Inc., 7.5%, 2014 |
$ | 260,000 | $ | 240,500 | ||
| TFM S.A. de C.V., 9.375%, 2012 |
410,000 | 428,450 | ||||
| $ | 668,950 | |||||
| Retailers – 0.8% |
||||||
| Couche-Tard, Inc., 7.5%, 2013 |
$ | 70,000 | $ | 65,275 | ||
| General Nutrition Centers, Inc., 7.199%, 2014 (p) |
205,000 | 178,094 | ||||
| Sally Beauty Holdings, Inc., 10.5%, 2016 |
260,000 | 261,300 | ||||
| $ | 504,669 | |||||
| Specialty Chemicals – 0.4% |
||||||
| INVISTA, 9.25%, 2012 (n) |
$ | 285,000 | $ | 283,219 | ||
| Specialty Stores – 0.4% |
||||||
| Payless ShoeSource, Inc., 8.25%, 2013 |
$ | 295,000 | $ | 268,450 | ||
| Telecommunications – Wireless – 3.9% |
||||||
| Alltel Corp., 7%, 2012 |
$ | 519,000 | $ | 533,273 | ||
| MetroPCS Wireless, Inc., 9.25%, 2014 |
315,000 | 312,244 | ||||
| Rural Cellular Corp., FRN, 8.55%, 2012 |
320,000 | 326,400 | ||||
| Rural Cellular Corp., FRN, 5.681%, 2013 |
355,000 | 362,100 | ||||
| U.S. Unwired, Inc., 10%, 2012 |
500,000 | 525,000 | ||||
| Wind Acquisition Finance S.A., 10.75%, 2015 (n) |
415,000 | 425,375 | ||||
| $ | 2,484,392 | |||||
| Telephone Services – 0.5% |
||||||
| Embarq Corp., 7.082%, 2016 |
$ | 160,000 | $ | 148,452 | ||
| Embarq Corp., 7.995%, 2036 |
160,000 | 141,196 | ||||
| $ | 289,648 | |||||
| Tobacco – 1.0% |
||||||
| Alliance One International, Inc., 8.5%, 2012 |
$ | 295,000 | $ | 276,563 | ||
| Reynolds American, Inc., 7.625%, 2016 |
345,000 | 357,758 | ||||
| $ | 634,321 | |||||
| Transportation – Services – 1.5% |
||||||
| Eurocar Groupe S.A., FRN, 8.465%, 2013 (n) |
EUR | 300,000 | $ | 316,840 | ||
| Hertz Corp., 8.875%, 2014 |
$ | 535,000 | 500,894 | |||
| Quality Distribution, Inc., 9%, 2010 |
265,000 | 149,725 | ||||
| $ | 967,459 | |||||
| Utilities – Electric Power – 8.2% |
||||||
| AES Corp., 7.75%, 2014 |
$ | 495,000 | $ | 492,525 | ||
| Dynegy Holdings, Inc., 7.5%, 2015 |
130,000 | 122,200 | ||||
| Dynegy Holdings, Inc., 7.125%, 2018 |
540,000 | 469,800 | ||||
| Edison Mission Energy, 7%, 2017 |
550,000 | 526,625 | ||||
| Mirant North America LLC, 7.375%, 2013 |
435,000 | 431,737 | ||||
| NRG Energy, Inc., 7.25%, 2014 |
225,000 | 221,906 | ||||
| NRG Energy, Inc., 7.375%, 2016 |
1,420,000 | 1,402,250 | ||||
| NRG Energy, Inc., 7.375%, 2017 |
245,000 | 239,487 | ||||
| Reliant Energy, Inc., 7.875%, 2017 |
485,000 | 468,025 | ||||
| Texas Competitive Electric Holdings LLC, 10.25%, 2015 (n) |
880,000 | 877,800 | ||||
| $ | 5,252,355 | |||||
| Total Bonds |
$ | 84,233,587 | ||||
6
MFS Intermediate High Income Fund
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Floating Rate Loans – 7.8% (g)(r) |
||||||
| Aerospace – 0.7% |
||||||
| Hawker Beechcraft Acquisition Co., Letter of Credit, 4.8%, 2014 |
$ | 27,154 | $ | 25,283 | ||
| Hawker Beechcraft Acquisition Co., Term Loan, 4.8%, 2014 |
464,786 | 432,759 | ||||
| $ | 458,042 | |||||
| Automotive – 1.1% |
||||||
| Federal-Mogul Corp., Term Loan B, 4.41%, 2014 |
$ | 272,438 | $ | 209,777 | ||
| Ford Motor Co., Term Loan B, 5.47%, 2013 |
500,255 | 387,519 | ||||
| Mark IV Industries, Inc., Second Lien Term Loan, 11.39%, 2011 |
309,983 | 123,993 | ||||
| $ | 721,289 | |||||
| Broadcasting – 0.5% |
||||||
| Young Broadcasting, Inc., Term Loan, 5.31%, 2012 |
$ | 310,217 | $ | 254,378 | ||
| Young Broadcasting, Inc., Term Loan B-1, 5.31%, 2012 |
109,976 | 90,181 | ||||
| $ | 344,559 | |||||
| Business Services – 0.5% |
||||||
| First Data Corp., Term Loan B-1, 5.25%, 2014 |
$ | 374,215 | $ | 342,926 | ||
| Forest & Paper Products – 0.2% |
||||||
| Abitibi-Consolidated, Inc., Term Loan, 11.5%, 2009 |
$ | 97,621 | $ | 97,133 | ||
| Gaming & Lodging – 0.4% |
||||||
| Green Valley Ranch Gaming LLC, Second Lien Term Loan, 5.72%, 2014 (o) |
$ | 525,000 | $ | 263,814 | ||
| Medical & Health Technology & Services – 0.8% |
||||||
| Community Health Systems, Inc., Delayed Draw Term Loan, 1%, 2014 (q) |
$ | 13,640 | $ | 12,892 | ||
| Community Health Systems, Inc., Term Loan B, 4.98%, 2014 |
266,584 | 251,952 | ||||
| HCA, Inc., Term Loan B, 5.05%, 2013 |
241,954 | 226,580 | ||||
| $ | 491,424 | |||||
| Printing & Publishing – 0.5% |
||||||
| Idearc, Inc., Term Loan B, 4.79%, 2014 |
$ | 33,252 | $ | 23,276 | ||
| Tribune Co., Incremental Term Loan, 0%, 2014 (o) |
411,944 | 271,883 | ||||
| $ | 295,159 | |||||
| Retailers – 0.2% |
||||||
| Burlington Coat Factory, Term Loan B, 0%, 2013 (o) |
$ | 116,637 | $ | 90,320 | ||
| Specialty Stores – 0.4% |
||||||
| Michaels Stores, Inc., Term Loan B, 4.75%, 2013 |
$ | 365,028 | $ | 281,414 | ||
| Telecommunications – Wireless – 1.4% |
||||||
| ALLTEL Communications, Inc., Term Loan B-2, 5.06%, 2015 |
$ | 249,372 | $ | 246,442 | ||
| Wind Acquisition Holdings Syndicated Loan, 12.61%, 2011 |
705,171 | 661,097 | ||||
| $ | 907,539 | |||||
| Utilities – Electric Power – 1.1% |
||||||
| Calpine Corp., DIP Term Loan, 5.69%, 2014 |
$ | 290,358 | $ | 269,670 | ||
| Texas Competitive Electric Holdings LLC, Term Loan B-3, 6.27%, 2014 |
474,865 | 441,624 | ||||
| $ | 711,294 | |||||
| Total Floating Rate Loans |
$ | 5,004,913 | ||||
| Common Stocks – 2.5% |
||||||
| Automotive – 0.1% |
||||||
| General Motors Corp. |
4,400 | $ | 44,000 | |||
| Cable TV – 0.9% |
||||||
| Cablevision Systems Corp., “A” |
4,000 | $ | 129,080 | |||
| Comcast Corp., “A” |
16,000 | 338,880 | ||||
| Time Warner Cable, Inc., “A” (a) |
3,900 | 104,325 | ||||
| $ | 572,285 | |||||
| Consumer Goods & Services – 0.0% |
||||||
| Central Garden & Pet Co. (a) |
3,100 | $ | 17,391 | |||
7
MFS Intermediate High Income Fund
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||||||||
| Common Stocks – continued |
||||||||||||
| Electronics – 0.0% |
||||||||||||
| Intel Corp. |
1,200 | $ | 27,444 | |||||||||
| Energy – Integrated – 0.1% |
||||||||||||
| Chevron Corp. |
900 | $ | 77,688 | |||||||||
| Forest & Paper Products – 0.1% |
||||||||||||
| Louisiana-Pacific Corp. |
4,100 | $ | 39,934 | |||||||||
| Gaming & Lodging – 0.4% |
||||||||||||
| MGM Mirage (a) |
1,700 | $ | 59,823 | |||||||||
| Pinnacle Entertainment, Inc. (a) |
15,700 | 174,113 | ||||||||||
| $ | 233,936 | |||||||||||
| Major Banks – 0.2% |
||||||||||||
| Bank of America Corp. |
2,300 | $ | 71,622 | |||||||||
| JPMorgan Chase & Co. |
800 | 30,792 | ||||||||||
| $ | 102,414 | |||||||||||
| Telephone Services – 0.2% |
||||||||||||
| Windstream Corp. |
10,900 | $ | 135,378 | |||||||||
| Trucking – 0.0% |
||||||||||||
| Quality Distribution, Inc. (a)(z) |
2,687 | $ | 12,092 | |||||||||
| Utilities – Electric Power – 0.5% |
||||||||||||
| Reliant Energy, Inc. (a) |
18,800 | $ | 320,164 | |||||||||
| Total Common Stocks |
$ | 1,582,726 | ||||||||||
| Preferred Stocks – 0.7% |
||||||||||||
| Brokerage & Asset Managers – 0.7% |
||||||||||||
| Merrill Lynch Co., Inc., 0%, 0 |
$ | 22,000 | $ | 478,280 | ||||||||
| Strike Price | First Exercise | |||||||||||
| Warrants – 0.0% |
||||||||||||
| Broadcasting – 0.0% |
||||||||||||
| SIRIUS XM Radio, Inc. (1share for 1 warrant) (a) |
$ | 9.83 | 9/16/00 | 600 | $ | 150 | ||||||
| Telephone Services – 0.0% |
||||||||||||
| Jazztel PLC (6 shares for 1 warrant) (a)(z) |
EUR | 204.6 | 7/05/00 | 350 | $ | 0 | ||||||
| Total Warrants |
$ | 150 | ||||||||||
| Issuer |
Shares/Par | Value ($) | ||||||||||
| Repurchase Agreements – 2.6% |
||||||||||||
| Merrill Lynch & Co., 2.13%, dated 8/29/08, due 9/02/08, total to be received $1,642,389 (secured by various U.S. Treasury and Federal Agency obligations and Mortgage Backed securities in a jointly traded account) |
$ | 1,642,000 | $ | 1,642,000 | ||||||||
| Total Investments |
$ | 92,941,656 | ||||||||||
| Other Assets, Less Liabilities – (44.4)% |
(28,563,714 | ) | ||||||||||
| Net Assets – 100.0% |
$ | 64,377,942 | ||||||||||
| (a) | Non-income producing security. |
| (d) | Non-income producing security - in default. |
| (g) | The rate shown represents a weighted average coupon rate on settled positions at period end, unless otherwise indicated. |
| (n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $12,630,209, representing 19.6% of net assets. |
| (o) | All or a portion of this position has not settled. Upon settlement date, interest rates for unsettled amounts will be determined. The rate shown represents the weighted average coupon rate for settled amounts. |
| (p) | Payment-in-kind security. |
| (q) | All or a portion of this position represents an unfunded loan commitment. The rate shown represents a weighted average coupon rate on the full position, including the unfunded loan commitment which has no current coupon rate. |
8
MFS Intermediate High Income Fund
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| (r) | Remaining maturities of floating rate loans may be less than stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions on resale. Floating rate loans generally have rates of interest which are determined periodically by reference to a base lending rate plus a premium. |
| (z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
| Restricted Securities |
Acquisition Date |
Cost | Current Market Value |
||||||
| American Media Operations, Inc., 10.25%, 2009 |
1/22/07 - 11/28/07 | $ | 14,822 | $ | 11,945 | ||||
| Banc of America Commercial Mortgage, Inc., 6.388%, 2051 |
6/19/08 | 325,497 | 259,767 | ||||||
| Dow Jones CDX High Yield Index, 7.625%, 2012 |
5/07/07 | 1,968,863 | 1,848,825 | ||||||
| Firekeepers Development Authority, 13.875%, 2015 |
4/22/08 | 326,833 | 309,037 | ||||||
| Jazztel PLC (Warrants) |
11/29/00 | 602 | — | ||||||
| Orascom Telecom Finance S.C.A., 7.875%, 2014 |
2/01/07 | 225,000 | 206,145 | ||||||
| Quality Distribution, Inc. |
12/28/06 | — | 12,092 | ||||||
| Rotavax LLC, 8.04%, 2014 |
6/06/06 - 2/06/07 | 235,450 | 220,135 | ||||||
| Ticketmaster, 10.75%, 2016 |
7/16/08 - 7/17/08 | 166,500 | 169,125 | ||||||
| Total Restricted Securities |
$ | 3,037,071 | |||||||
| % of Net Assets |
4.7 | % | |||||||
The following abbreviations are used in this report and are defined:
| CLN |
Credit-Linked Note | |
| DIP |
Debtor-in-Possession | |
| FRN |
Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end. | |
| Insurers |
||
| MBIA |
MBIA Insurance Corp. | |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:
EUR Euro
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
9
MFS Intermediate High Income Fund
Supplemental Information (Unaudited) 8/31/08
(1) Fair Value Disclosure
The fund adopted FASB Statement No. 157, Fair Value Measurements (the “Statement”) in this reporting period. This Statement provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value measurements.
Various inputs are used in determining the value of the fund’s assets or liabilities carried at market value. These inputs are categorized into three broad levels. Level 1 includes quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, swap contracts and written options, which are valued at the unrealized appreciation/depreciation on the instrument. The following is a summary of the levels used as of August 31, 2008 in valuing the fund’s assets or liabilities carried at market value:
| Level 1 | Level 2 | Level 3 | Total | |||||||||
| Investments in Securities |
$ | 2,061,006 | $ | 90,880,650 | $ | — | $ | 92,941,656 | ||||
| Other Financial Instruments |
$ | — | $ | 79,478 | $ | — | $ | 79,478 | ||||
Level 3 Reconciliation Disclosure
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of Level 3 securities held at the beginning and the end of the period.
| Investments in Securities |
Other Financial Instruments | ||||||
| Balance as of 12/01/07 |
$ | 679,650 | $ | — | |||
| Accrued discounts/premiums |
— | — | |||||
| Realized gain (loss) |
— | — | |||||
| Change in unrealized appreciation |
(75,601 | ) | — | ||||
| Net purchases (sales) |
— | — | |||||
| Transfers in and/or out of Level 3 |
(604,049 | ) | — | ||||
| Balance as of 8/31/08 |
$ | — | $ | — | |||
(2) Portfolio Securities
The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:
| Aggregate Cost |
$ | 101,552,608 | ||
| Gross unrealized appreciation |
$ | 809,837 | ||
| Gross unrealized depreciation |
(9,420,789 | ) | ||
| Net unrealized appreciation (depreciation) |
$ | (8,610,952 | ) | |
The aggregate cost above includes prior fiscal year end tax adjustments.
10
MFS Intermediate High Income Fund
Supplemental Information (Unaudited) 8/31/08 - continued
(3) Derivative Contracts at 8/31/08
Forward Foreign Currency Exchange Contracts at 8/31/08
| Type |
Currency | Contracts to Deliver/Receive |
Settlement Date Range |
In Exchange For | Contracts at Value |
Net Unrealized Appreciation (Depreciation) | |||||||||
| Appreciation | |||||||||||||||
| SELL |
EUR | 1,250,159 | 10/22/08 | $ | 1,831,482 | $ | 1,828,567 | $ | 2,915 | ||||||
Swap Agreements at 8/31/08
| Expiration |
Notional Amount |
Counterparty |
Cash Flows to Receive |
Cash Flows to Pay |
Value | |||||||||
| Credit Default Swaps |
||||||||||||||
| 6/20/13 |
USD | 1,100,000 | (a) | Morgan Stanley Capital Services, Inc. |
(1) | 5.0% (fixed rate) | $ | 69,577 | ||||||
| 9/20/13 |
USD | 200,000 | JPMorgan Chase Bank |
5.3% (fixed rate) | (2) | 6,986 | ||||||||
| $ | 76,563 | |||||||||||||
| (1) | Fund to receive notional amount upon a defined credit event by a reference obligation specified in the CDX. NA. HY.10 Index. |
| (2) | Fund to pay notional amount upon a defined credit event by Aramark Services, Inc., 8.5%, 2/01/15. |
| (a) | Net unamortized premiums paid by the fund amounted to $71,472. |
At August 31, 2008, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.
11
| ITEM 2. | CONTROLS AND PROCEDURES. |
| (a) | Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this Form N-Q, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. |
| (b) | There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| ITEM 3. | EXHIBITS. |
File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.
Notice
A copy of the Agreement and Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: MFS INTERMEDIATE HIGH INCOME FUND
| By (Signature and Title)* | ROBERT J. MANNING | |
| Robert J. Manning, President |
Date: October 15, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title)* | ROBERT J. MANNING | |
| Robert J. Manning, President (Principal Executive Officer) |
Date: October 15, 2008
| By (Signature and Title)* | MARIA F. DWYER | |
| Maria F. Dwyer, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: October 15, 2008
| * | Print name and title of each signing officer under his or her signature. |