Ivy High Income Opportunties Fund

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-22800

Ivy High Income Opportunities Fund

(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)

Mara D. Herrington

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 913-236-2000

Date of fiscal year end: September 30

Date of reporting period: June 30, 2015

 

 

 

ITEM 1.    SCHEDULE OF INVESTMENTS.

SCHEDULE OF INVESTMENTS

Ivy High Income Opportunities Fund (in thousands)

    JUNE 30, 2015 (UNAUDITED)

 

CORPORATE DEBT SECURITIES    Principal        Value  

Consumer Discretionary

  

Advertising – 0.8%

  

Acosta, Inc.,

        

7.750%, 10–1–22 (A)

    $ 400         $ 403   

Lamar Media Corp.,

        

5.375%, 1–15–24 (B)

      977           990   

Outfront Media Capital LLC and Outfront Media Capital Corp.:

        

5.250%, 2–15–22

      481           487   

5.625%, 2–15–24

      350           358   

5.625%, 2–15–24 (A)

      37           38   
       

 

 

  
          2,276   
       

 

 

  

Apparel Retail – 1.0%

        

Chinos Intermediate Holdings A, Inc.,

  

     

7.750%, 5–1–19 (A)(C)

      276           222   

Gymboree Corp. (The),

        

9.125%, 12–1–18

      413           163   

Hot Topic, Inc.,

        

9.250%, 6–15–21 (A)(B)

      739           776   

HT Intermediate Holdings Corp.,

        

12.000%, 5–15–19 (A)(C)

      325           330   

Nine West Holdings, Inc.,

        

8.250%, 3–15–19 (A)

      2,110           1,414   
       

 

 

  
          2,905   
       

 

 

  

Auto Parts & Equipment – 1.2%

        

Schaeffler Finance B.V.,

        

4.250%, 5–15–21 (A)(B)

      686           669   

Schaeffler Holding Finance B.V.,

        

6.875%, 8–15–18 (A)(C)(D)

    EUR 2,275           2,628   
       

 

 

  
          3,297   
       

 

 

  

Automobile Manufacturers – 0.3%

        

Navistar International Corp.,

        

8.250%, 11–1–21 (B)

    $ 947           900   
       

 

 

  

Automotive Retail – 0.5%

        

Group 1 Automotive, Inc.,

        

5.000%, 6–1–22

      570           567   

Sonic Automotive, Inc.,

        

5.000%, 5–15–23 (B)

      919           899   
       

 

 

  
          1,466   
       

 

 

  

Broadcasting – 5.8%

        

Clear Channel Communications, Inc.,

  

     

10.000%, 1–15–18

      2,330           1,875   

Clear Channel Worldwide Holdings, Inc., Series A,

        

7.625%, 3–15–20 (B)

      119           123   

Clear Channel Worldwide Holdings, Inc., Series B,

        

7.625%, 3–15–20 (B)

      10,000           10,425   

Cumulus Media, Inc.,

        

7.750%, 5–1–19 (B)

      4,500           4,129   
       

 

 

  
          16,552   
       

 

 

  

Cable & Satellite – 20.3%

        

Altice Financing S.A.,

        

6.625%, 2–15–23 (A)

      367           364   

Altice S.A.:

        

7.250%, 5–15–22 (A)(D)

    EUR 152           171   

7.750%, 5–15–22 (A)(B)

    $ 13,835           13,386   

6.250%, 2–15–25 (A)(D)

    EUR 184           195   

7.625%, 2–15–25 (A)(B)

    $ 11,190           10,519   

Cable One, Inc.,

        

5.750%, 6–15–22 (A)

      264           267   

Cablevision Systems Corp.,

        

5.875%, 9–15–22 (B)

      10,000           9,700   

CCO Holdings LLC and CCO Holdings Capital Corp.:

        

5.250%, 3–15–21 (B)

      206           206   

5.250%, 9–30–22 (B)

      276           272   

5.125%, 2–15–23 (B)

      276           269   

5.750%, 9–1–23 (B)

      69           69   

5.750%, 1–15–24 (B)

      276           278   

Columbus International, Inc.,

        

7.375%, 3–30–21 (A)

      268           288   

DISH DBS Corp.:

        

6.750%, 6–1–21 (B)

      7,500           7,819   

5.875%, 7–15–22 (B)

      2,000           1,960   

5.000%, 3–15–23

      250           232   

Sirius XM Radio, Inc.:

        

5.875%, 10–1–20 (A)(B)

      905           928   

5.750%, 8–1–21 (A)(B)

      2,513           2,582   

4.625%, 5–15–23 (A)(B)

      4,586           4,305   

VTR Finance B.V.,

        

6.875%, 1–15–24 (A)(B)

      3,584           3,662   

Wave Holdco LLC and Wave Holdco Corp.,

  

     

8.250%, 7–15–19 (A)(C)

      299           304   

WaveDivision Escrow LLC and WaveDivision Escrow Corp.,

        

8.125%, 9–1–20 (A)

      300           312   
       

 

 

  
          58,088   
       

 

 

  

Casinos & Gaming – 3.6%

        

Gateway Casinos & Entertainment Ltd.,

        

8.500%, 11–26–20 (A)(D)

    CAD 1,243           1,000   

MCE Finance Ltd.,

        

5.000%, 2–15–21 (A)(B)

    $ 1,557           1,479   

Scientific Games Corp.,

        

8.125%, 9–15–18

      206           194   

Studio City Finance Ltd.,

        

8.500%, 12–1–20 (A)(B)

      4,614           4,597   

Wynn Macau Ltd.,

        

5.250%, 10–15–21 (A)(B)

      3,331           3,148   
       

 

 

  
          10,418   
       

 

 

  

Catalog Retail – 0.1%

        

Argos Merger Sub, Inc.,

        

7.125%, 3–15–23 (A)

      220           230   
       

 

 

  

Distributors – 0.9%

        

Pinnacle Operating Corp.,

        

9.000%, 11–15–20 (A)

      2,618           2,598   
       

 

 

  

Hotels, Resorts & Cruise Lines – 0.4%

        

Interval Acquisition Corp.,

        

5.625%, 4–15–23 (A)

      1,045           1,058   
       

 

 

  

Movies & Entertainment – 1.9%

        

AMC Entertainment, Inc.:

        

5.875%, 2–15–22 (B)

      250           254   

5.750%, 6–15–25 (A)

      1,206           1,179   

Cinemark USA, Inc.:

        

5.125%, 12–15–22 (B)

      533           528   

4.875%, 6–1–23 (B)

      1,651           1,587   

WMG Acquisition Corp.:

        

5.625%, 4–15–22 (A)(B)

      161           161   

6.750%, 4–15–22 (A)

      1,972           1,874   
       

 

 

  
          5,583   
       

 

 

  
 

Restaurants – 0.2%

        

Carrols Restaurant Group, Inc.,

        

8.000%, 5–1–22 (A)

      467           490   
       

 

 

  

Specialized Consumer Services – 3.9%

  

     

AA Bond Co. Ltd.,

        

9.500%, 7–31–19 (A)(D)

    GBP 656           1,123   

B-Corp Merger Sub, Inc.,

        

8.250%, 6–1–19

    $ 4,500           3,848   

Carlson Travel Holdings,

        

7.500%, 8–15–19 (A)(C)

      800           812   

Carlson Wagonlit B.V.,

        

6.875%, 6–15–19 (A)(B)

      107           113   

Lansing Trade Group,

        

9.250%, 2–15–19 (A)(B)

      1,170           1,144   

Nielsen Finance,

        

5.500%, 10–1–21 (A)(B)

      1,396           1,410   

Nielsen Finance LLC and Nielsen Finance Co.,

        

5.000%, 4–15–22 (A)(B)

      2,677           2,630   
       

 

 

  
          11,080   
       

 

 

  

Specialty Stores – 1.1%

        

Jo-Ann Stores Holdings, Inc.,

        

9.750%, 10–15–19 (A)(C)

      1,046           936   

Jo-Ann Stores, Inc.,

        

8.125%, 3–15–19 (A)

      81           76   

New Academy Finance Co. LLC,

        

8.000%, 6–15–18 (A)(C)

      2,000           2,020   
       

 

 

  
          3,032   
       

 

 

  

Total Consumer Discretionary – 42.0%

  

        119,973   

Consumer Staples

        

Agricultural Products – 2.0%

        

American Seafoods Group LLC,

        

10.750%, 5–15–16 (A)(B)

      5,787           5,700   
       

 

 

  

Food Distributors – 0.3%

        

Simmons Foods, Inc.,

        

7.875%, 10–1–21 (A)

      1,000           920   
       

 

 

  

Packaged Foods & Meats – 1.3%

        

JBS USA LLC and JBS USA Finance, Inc.:

  

     

5.875%, 7–15–24 (A)(B)

      2,496           2,512   

5.750%, 6–15–25 (A)

      758           750   

Post Holdings, Inc.,

        

7.375%, 2–15–22 (B)

      515           524   
       

 

 

  
          3,786   
       

 

 

  

Tobacco – 0.6%

        

Prestige Brands, Inc.,

        

5.375%, 12–15–21 (A)

      1,630           1,630   
       

 

 

  

Total Consumer Staples – 4.2%

  

        12,036   

Energy

  

Coal & Consumable Fuels – 0.7%

  

Foresight Energy LLC and Foresight Energy Finance Corp.,

        

7.875%, 8-15–21 (A)

      2,427           2,178   
       

 

 

  

Oil & Gas Drilling – 0.2%

        

KCA DEUTAG UK Finance plc,

        

7.250%, 5–15–21 (A)(B)

      617           512   
       

 

 

  

Oil & Gas Equipment & Services – 1.2%

        

Key Energy Services, Inc.,

        

6.750%, 3–1–21

      5,410           3,192   

Seventy Seven Energy, Inc.,

        

6.500%, 7–15–22 (B)

      360           231   
       

 

 

  
          3,423   
       

 

 

  

Oil & Gas Exploration & Production – 3.8%

        

Bellatrix Exploration Ltd.,

        

8.500%, 5–15–20 (A)

      1,127           1,057   

California Resources Corp.,

        

6.000%, 11–15–24

      6,440           5,530   

Chesapeake Energy Corp.:

        

3.525%, 4–15–19 (B)(E)

      338           309   

4.875%, 4–15–22 (B)

      614           534   

Crownrock L.P.,

        

7.750%, 2–15–23 (A)

      369           393   

Endeavor Energy Resources L.P.:

        

7.000%, 8–15–21 (A)

      587           584   

8.125%, 9–15–23 (A)

      378           390   

Midstates Petroleum Co., Inc. and Midstates Petroleum Co. LLC,

        

10.000%, 6–1–20 (A)

      940           900   

Parsley Energy LLC and Parsely Finance Corp.,

        

7.500%, 2–15–22 (A)

      437           444   

Rice Energy, Inc.,

        

7.250%, 5–1–23 (A)

      411           421   

Whiting Petroleum Corp.,

        

5.750%, 3–15–21

      293           288   
       

 

 

  
          10,850   
       

 

 

  

Oil & Gas Refining & Marketing – 1.3%

        

Gulfport Energy Corp.,

        

6.625%, 5–1–23 (A)

      112           114   

Offshore Drilling Holding S.A.,

        

8.375%, 9–20–20 (A)(E)

      2,303           2,061   

Offshore Group Investment Ltd.,

        

7.500%, 11–1–19 (B)

      1,127           693   

Seven Generations Energy Ltd.,

        

6.750%, 5–1–23 (A)

      768           766   
       

 

 

  
          3,634   
       

 

 

  

Total Energy – 7.2%

  

        20,597   

Financials

        

Consumer Finance – 2.7%

        

Creditcorp,

        

12.000%, 7–15–18 (A)(B)

      5,248           4,395   

Quicken Loans, Inc.,

        

5.750%, 5–1–25 (A)

      1,688           1,617   

Speedy Cash Intermediate Holdings Corp.,

        

10.750%, 5–15–18 (A)

      1,851           1,749   
       

 

 

  
          7,761   
       

 

 

  

Diversified Capital Markets – 0.8%

        

Patriot Merger Corp.,

        

9.000%, 7–15–21 (A)

      2,477           2,446   
       

 

 

  

Other Diversified Financial Services – 2.1%

        

AAF Holdings LLC and AAF Finance Co.,

        

12.000%, 7–1–19 (A)(C)

      925           913   

Abengoa Finance SAU,

        

7.750%, 2–1–20 (A)(B)

      2,813           2,785   

Balboa Merger Sub, Inc.,

        

11.375%, 12–1–21 (A)

      237           236   
 

Greektown Holdings LLC and Greektown Mothership Corp.,

        

8.875%, 3–15–19 (A)(B)

      1,625           1,706   

New Cotai LLC and New Cotai Capital Corp.,

        

10.625%, 5–1–19 (A)(B)(C)

      277           238   
       

 

 

  
          5,878   
       

 

 

  

Property & Casualty Insurance – 0.5%

        

Hub International Ltd.,

        

7.875%, 10–1–21 (A)

      1,300           1,326   
       

 

 

  

Real Estate Development – 0.3%

        

Hub Holdings LLC and Hub Holdings Finance, Inc.,

        

8.125%, 7–15–19 (A)(C)

      970           965   
       

 

 

  

Real Estate Services – 0.4%

        

Stearns Holdings, Inc.,

        

9.375%, 8–15–20 (A)(B)

      1,200           1,206   
       

 

 

  

Specialized Finance – 3.3%

        

Consolidated Communications Finance II Co.,

        

6.500%, 10–1–22 (A)

      812           782   

Flexi-Van Leasing, Inc.,

        

7.875%, 8–15–18 (A)(B)

      5,208           5,286   

TMX Finance LLC and TitleMax Finance Corp.,

        

8.500%, 9–15–18 (A)(B)

      3,985           3,268   
       

 

 

  
          9,336   
       

 

 

  

Specialized REITs – 0.9%

        

Aircastle Ltd.:

        

5.125%, 3–15–21

      1,719           1,736   

5.500%, 2–15–22

      803           820   
       

 

 

  
          2,556   
       

 

 

  

Thrifts & Mortgage Finance – 2.5%

        

Provident Funding Associates L.P. and PFG Finance Corp.,

        

6.750%, 6–15–21 (A)(B)

      7,500           7,163   
       

 

 

  

Total Financials – 13.5%

  

        38,637   

Health Care

        

Biotechnology – 0.3%

        

Concordia Healthcare Corp.,

        

7.000%, 4–15–23 (A)

      709           709   
       

 

 

  

Health Care Equipment – 0.2%

        

Mallinckrodt International Finance S.A. and Mallinckrodt CB LLC,

        

5.750%, 8–1–22 (A)(B)

      687           701   
       

 

 

  

Health Care Facilities – 4.3%

        

Acadia Healthcare Co., Inc.,

        

5.625%, 2–15–23 (A)

      149           151   

AmSurg Corp.,

        

5.625%, 11–30–20 (B)

      485           493   

AmSurg Escrow Corp.,

        

5.625%, 7–15–22

      751           758   

Capsugel S.A.,

        

7.000%, 5–15–19 (A)(C)

      991           1,008   

ConvaTec Finance International S.A.,

        

8.250%, 1–15–19 (A)(C)

      1,236           1,214   

DaVita HealthCare Partners, Inc.,

        

5.000%, 5–1–25

      751           723   

ExamWorks Group, Inc.,

        

5.625%, 4–15–23

      150           154   

FWCT-2 Escrow Corp.,

        

6.875%, 2–1–22 (B)

      1,229           1,298   

Tenet Healthcare Corp.:

        

3.786%, 6–15–20 (A)(E)

      189           191   

6.000%, 10–1–20 (B)

      1,042           1,111   

8.125%, 4–1–22 (B)

      4,337           4,749   

THC Escrow Corp. II,

        

6.750%, 6–15–23 (A)

      377           385   
       

 

 

  
          12,235   
       

 

 

  

Health Care Services – 1.8%

        

MedImpact Holdings, Inc.,

        

10.500%, 2–1–18 (A)(B)

      5,000           5,263   
       

 

 

  

Health Care Supplies – 1.6%

        

Universal Hospital Services, Inc.,

        

7.625%, 8–15–20

      5,000           4,600   
       

 

 

  

Pharmaceuticals – 0.7%

        

JLL/Delta Dutch Newco B.V.,

        

8.750%, 5–1–20 (A)(C)

      125           127   

VRX Escrow Corp.:

        

5.375%, 3–15–20 (A)

      736           760   

5.875%, 5–15–23 (A)

      736           753   

6.125%, 4–15–25 (A)

      368           379   
       

 

 

  
          2,019   
       

 

 

  

Total Health Care – 8.9%

  

        25,527   

Industrials

        

Aerospace & Defense – 1.9%

        

Silver II Borrower SCA and Silver II U.S. Holdings,

  

     

7.750%, 12–15–20 (A)(B)

      6,000           5,550   
       

 

 

  

Air Freight & Logistics – 0.6%

        

TRAC Intermodal LLC and TRAC Intermodal Corp.,

  

     

11.000%, 8–15–19 (B)

      979           1,057   

XPO Logistics, Inc.,

        

6.500%, 6–15–22 (A)

      566           554   
       

 

 

  
          1,611   
       

 

 

  

Building Products – 1.5%

        

CPG Merger Sub LLC,

        

8.000%, 10–1–21 (A)

      312           322   

Ply Gem Industries, Inc.,

        

6.500%, 2–1–22

      2,018           1,979   

Roofing Supply Group LLC and Roofing Supply Finance, Inc.,

        

10.000%, 6–1–20 (A)

      1,574           1,609   

USG Corp.,

        

5.500%, 3–1–25 (A)

      366           365   
       

 

 

  
          4,275   
       

 

 

  

Diversified Support Services – 3.7%

  

Algeco Scotsman Global Finance plc,

        

8.500%, 10–15–18 (A)(B)

      10,575           10,205   

Nexeo Solutions LLC,

        

8.375%, 3–1–18

      325           300   
       

 

 

  
          10,505   
       

 

 

  

Environmental & Facilities Services – 0.5%

        

GFL Environmental, Inc.,

        

7.875%, 4–1–20 (A)

      1,468           1,505   
       

 

 

  
 

Railroads – 0.7%

        

Florida East Coast Holdings Corp. and Florida East Coast Industries LLC:

        

6.750%, 5–1–19 (A)

      1,462           1,466   

9.750%, 5–1–20 (A)

      607           575   
       

 

 

  
          2,041   
       

 

 

  

Total Industrials – 8.9%

  

        25,487   

Information Technology

        

Data Processing & Outsourced Services – 2.1%

        

Alliance Data Systems Corp.,

        

5.375%, 8–1–22 (A)

      1,853           1,826   

Italics Merger Sub, Inc.,

        

7.125%, 7–15–23 (A)

      4,225           4,172   
       

 

 

  
          5,998   
       

 

 

  

Electronic Manufacturing Services – 0.5%

        

KEMET Corp.,

        

10.500%, 5–1–18

      1,440           1,458   
       

 

 

  

IT Consulting & Other Services – 0.9%

        

NCR Escrow Corp.:

        

5.875%, 12–15–21 (B)

      1,154           1,189   

6.375%, 12–15–23 (B)

      1,233           1,307   
       

 

 

  
          2,496   
       

 

 

  

Semiconductors – 1.2%

        

Micron Technology, Inc.:

        

5.875%, 2–15–22 (B)

      1,798           1,823   

5.500%, 2–1–25 (A)(B)

      1,577           1,477   
       

 

 

  
          3,300   
       

 

 

  

Technology Distributors – 0.0%

        

Sophia L.P. and Sophia Finance, Inc.,

        

9.625%, 12–1–18 (A)(C)

      107           108   
       

 

 

  

Total Information Technology – 4.7%

  

        13,360   

Materials

        

Aluminum – 1.4%

        

Constellium N.V.:

        

8.000%, 1–15–23 (A)

      1,892           1,939   

5.750%, 5–15–24 (A)(B)

      260           232   

Wise Metals Intermediate Holdings,

        

9.750%, 6–15–19 (A)(C)

      1,774           1,889   
       

 

 

  
          4,060   
       

 

 

  

Construction Materials – 0.4%

        

Hillman Group, Inc. (The),

        

6.375%, 7–15–22 (A)

      1,220           1,153   
       

 

 

  

Diversified Metals & Mining – 4.0%

        

Artsonig Pty Ltd.,

        

11.500%, 4–1–19 (A)(C)

      2,169           824   

Crystal Merger Sub, Inc.,

        

7.625%, 10–15–21 (A)(B)

      391           381   

FMG Resources Pty Ltd.:

        

8.250%, 11–1–19 (A)

      3,959           3,340   

9.750%, 3–1–22 (A)

      187           193   

6.875%, 4–1–22 (A)(B)

      7,615           5,340   

Lundin Mining Corp.:

        

7.500%, 11–1–20 (A)(B)

      715           771   

7.875%, 11–1–22 (A)

      584           625   
       

 

 

  
          11,474   
       

 

 

  

Metal & Glass Containers – 0.6%

        

Ardagh Finance Holdings,

        

8.625%, 6–15–19 (A)(C)

      1,505           1,557   

Ardagh Packaging Finance plc and Ardagh Holdings USA, Inc.,

        

6.000%, 6–30–21 (A)(B)

      200           201   
       

 

 

  
          1,758   
       

 

 

  

Precious Metals & Minerals – 1.0%

        

Prince Mineral Holding Corp.,

        

11.500%, 12–15–19 (A)(B)(E)

      3,000           2,760   
       

 

 

  

Total Materials – 7.4%

  

        21,205   

Telecommunication Services

        

Alternative Carriers – 1.5%

        

Level 3 Communications, Inc.,

        

5.750%, 12–1–22

      2,694           2,674   

Level 3 Escrow II, Inc.,

        

5.375%, 8–15–22

      1,709           1,726   
       

 

 

  
          4,400   
       

 

 

  

Integrated Telecommunication Services – 12.6%

  

     

BCP (Singapore) VI Cayman Financing Co. Ltd.,

  

     

8.000%, 4–15–21 (A)(B)

      403           405   

CenturyLink, Inc.:

        

5.625%, 4–1–20 (B)

      349           356   

5.800%, 3–15–22 (B)

      13,000           12,415   

Frontier Communications Corp.:

        

6.250%, 9–15–21 (B)

      10,811           9,838   

7.125%, 1–15–23 (B)

      682           605   

6.875%, 1–15–25 (B)

      649           543   

GCI, Inc.,

        

6.875%, 4–15–25

      1,497           1,512   

Sprint Corp.:

        

7.250%, 9–15–21 (B)

      9,458           9,310   

7.875%, 9–15–23 (B)

      1,094           1,067   
       

 

 

  
          36,051   
       

 

 

  

Wireless Telecommunication Service – 1.4%

  

     

T-Mobile USA, Inc.:

        

6.464%, 4–28–19 (B)

      728           750   

6.542%, 4–28–20 (B)

      788           825   

6.633%, 4–28–21 (B)

      1,120           1,162   

6.125%, 1–15–22 (B)

      372           384   

6.731%, 4–28–22 (B)

      158           165   

6.000%, 3–1–23 (B)

      597           611   
       

 

 

  
          3,897   
       

 

 

  

Total Telecommunication Services – 15.5%

  

        44,348   

Utilities

        

Renewable Electricity – 0.4%

        

Abengoa Yield plc,

        

7.000%, 11–15–19 (A)

      1,108           1,141   
       

 

 

  

Total Utilities – 0.4%

  

        1,141   

TOTAL CORPORATE DEBT SECURITIES – 112.7%

  

      $ 322,311   

(Cost: $336,609)

        
 

LOANS (E)

                    

Consumer Discretionary

        

Advertising – 0.3%

        

Advantage Sales & Marketing, Inc.,

        

7.500%, 7–25–22

      955           958   
       

 

 

  

Apparel Retail – 4.3%

        

Hoffmaster Group, Inc.,

        

10.000%, 5–9–21

      1,222           1,191   

Talbots, Inc. (The):

        

5.500%, 3–19–20

      1,226           1,196   

9.500%, 3–19–21

      950           931   

True Religion Apparel, Inc.:

        

5.875%, 7–30–19

      10,725           6,704   

5.875%, 7–30–19

      3,750           2,343   
       

 

 

  
          12,365   
       

 

 

  

Auto Parts & Equipment – 2.1%

        

Direct ChassisLink, Inc.,

        

8.250%, 11–7–19

      6,083           5,924   
       

 

 

  

Casinos & Gaming – 0.2%

        

Gateway Casinos & Entertainment Ltd.:

  

     

5.340%, 11–26–19 (D)

    CAD 730           578   

6.185%, 11–26–19 (D)

      2           1   
       

 

 

  
          579   
       

 

 

  

General Merchandise Stores – 2.0%

        

BJ’s Wholesale Club, Inc.,

        

8.500%, 3–31–20

    $ 1,275           1,284   

Orchard Acquisition Co. LLC,

        

7.000%, 2–8–19

      4,641           4,486   
       

 

 

  
          5,770   
       

 

 

  

Housewares & Specialties – 0.5%

        

KIK Custom Products, Inc.:

        

5.500%, 4–29–19

      731           732   

9.500%, 10–29–19

      781           781   
       

 

 

  
          1,513   
       

 

 

  

Movies & Entertainment – 0.2%

        

Formula One Holdings Ltd. and Delta Two S.a.r.l.,

        

7.750%, 7–29–22

      500           499   
       

 

 

  

Specialized Consumer Services – 0.2%

  

     

Wand Intermediate I L.P.,

        

8.250%, 9–17–22

      487           488   
       

 

 

  

Total Consumer Discretionary – 9.8%

  

        28,096   

Consumer Staples

        

Hypermarkets & Super Centers – 0.3%

  

     

GOBP Holdings, Inc.,

        

9.250%, 10–21–22

      979           969   
       

 

 

  

Packaged Foods & Meats – 0.3%

        

Shearer’s Foods LLC,

        

7.750%, 6–30–22

      748           739   
       

 

 

  

Total Consumer Staples – 0.6%

  

        1,708   

Energy

        

Coal & Consumable Fuels – 0.4%

        

Westmoreland Coal Co.,

        

7.500%, 12–16–20

      1,294           1,261   
       

 

 

  

Oil & Gas Drilling – 0.4%

        

KCA Deutag Alpha Ltd.,

        

6.250%, 5–16–20

      1,371           1,176   
       

 

 

  

Oil & Gas Equipment & Services – 0.2%

  

Regent Purchaser Investment, Inc.,

        

6.000%, 8–14–21

      1,135           705   
       

 

 

  

Oil & Gas Exploration & Production – 0.4%

        

Callon Petroleum Co.,

        

8.500%, 10–8–21

      1,148           1,137   
       

 

 

  

Oil & Gas Refining & Marketing – 0.5%

        

Fieldwood Energy LLC,

        

8.375%, 9–30–20

      1,684           1,286   
       

 

 

  

Oil & Gas Storage & Transportation – 1.2%

        

Bowie Resources Holdings LLC:

        

6.750%, 8–12–20

      2,386           2,261   

11.750%, 2–16–21

      1,224           1,157   
       

 

 

  
          3,418   
       

 

 

  

Total Energy – 3.1%

  

        8,983   

Financials

        

Consumer Finance – 0.3%

        

TransFirst, Inc.,

        

9.000%, 11–12–22

      692           693   
       

 

 

  

Other Diversified Financial Services – 0.5%

        

WP Mustang Holdings LLC,

        

8.500%, 5–29–22

      1,500           1,474   
       

 

 

  

Total Financials – 0.8%

  

        2,167   

Health Care

        

Health Care Facilities – 0.6%

        

Surgery Center Holdings, Inc.:

        

5.250%, 11–3–20

      124           124   

8.500%, 11–3–21

      1,553           1,546   
       

 

 

  
          1,670   
       

 

 

  

Life Sciences Tools & Services – 0.5%

        

Atrium Innovations, Inc.,

        

7.750%, 8–10–21

      1,740           1,600   
       

 

 

  

Total Health Care – 1.1%

  

        3,270   

Industrials

        

Air Freight & Logistics – 0.3%

        

DAE Aviation Holdings, Inc.,

        

9.000%, 8–5–19

      904           908   
       

 

 

  

Building Products – 1.4%

        

GYP Holdings III Corp.:

        

4.750%, 4–1–21

      476           458   

7.750%, 4–1–22

      2,012           1,916   

Hampton Rubber Co. & SEI Holding Corp.,

        

9.000%, 3–27–22

      1,719           1,455   
       

 

 

  
          3,829   
       

 

 

  
 

Construction & Engineering – 0.3%

        

Tensar International Corp.:

        

5.750%, 7–10–21

      444           419   

9.500%, 7–10–22

      604           489   
       

 

 

  
          908   
       

 

 

  

Industrial Machinery – 1.7%

        

Accudyne Industries LLC,

        

4.000%, 12–13–19

      89           86   

Capital Safety North America Holdings, Inc.,

        

6.500%, 3–28–22

      1,769           1,782   

Dynacast International LLC,

        

9.500%, 1–30–23

      2,563           2,556   

NN, Inc.,

        

6.000%, 8–29–21

      390           391   
       

 

 

  
          4,815   
       

 

 

  

Research & Consulting Services – 1.5%

        

Larchmont Resources LLC,

        

8.250%, 8–7–19

      5,213           4,275   
       

 

 

  

Total Industrials – 5.2%

  

        14,735   

Information Technology

        

Application Software – 1.5%

        

Misys plc and Magic Newco LLC,

        

12.000%, 6–12–19

      2,400           2,608   

TIBCO Software, Inc.,

        

6.500%, 12–4–20

      1,744           1,741   
       

 

 

  
          4,349   
       

 

 

  

Data Processing & Outsourced Services – 0.5%

        

Sedgwick Claims Management Services, Inc.,

        

6.750%, 2–28–22

      1,412           1,383   
       

 

 

  

IT Consulting & Other Services – 1.7%

        

Active Network, Inc. (The):

        

5.500%, 11–15–20

      1,303           1,284   

9.500%, 11–15–21

      2,147           2,039   

Triple Point Group Holdings, Inc.,

        

5.250%, 7–13–20

      1,536           1,379   
       

 

 

  
          4,702   
       

 

 

  

Total Information Technology – 3.7%

  

        10,434   

Materials

        

Construction Materials – 1.2%

        

Quickrete Holdings, Inc.,

        

7.000%, 3–30–21

      261           262   

U.S. LBM Holdings LLC,

        

8.000%, 5–2–20

      3,133           3,133   
       

 

 

  
          3,395   
       

 

 

  

Diversified Metals & Mining – 0.4%

        

EP Minerals LLC:

        

5.500%, 8–20–20

      551           550   

8.500%, 8–20–21

      545           545   
       

 

 

  
          1,095   
       

 

 

  

Metal & Glass Containers – 0.2%

        

Consolidated Container Co. LLC,

        

7.750%, 1–3–20

      451           419   
       

 

 

  

Paper Packaging – 1.1%

        

FPC Holdings, Inc.,

        

9.250%, 5–27–20

      2,500           2,406   

Ranpak (Rack Merger),

        

8.250%, 10–1–22

      873           870   
       

 

 

  
          3,276   
       

 

 

  

Specialty Chemicals – 1.0%

        

Chemstralia Ltd.,

        

7.250%, 2–26–22

      2,304           2,304   

Chromaflo Technologies Corp.,

        

8.250%, 6–2–20

      706           664   
       

 

 

  
          2,968   
       

 

 

  

Total Materials – 3.9%

  

        11,153   

Telecommunication Services

        

Alternative Carriers – 0.2%

        

Cable & Wireless Communications,

        

6.500%, 3–31–17

      700           702   
       

 

 

  

Total Telecommunication Services – 0.2%

  

        702   

Utilities

        

Independent Power Producers & Energy Traders – 0.4%

  

Alinta Energy Finance PTY Ltd.:

        

0.000%, 8–13–18 (F)

      47           48   

6.375%, 8–13–19

      986           989   
       

 

 

  
          1,037   
       

 

 

  

Total Utilities – 0.4%

  

        1,037   

TOTAL LOANS – 28.8%

               $ 82,285   

(Cost: $90,113)

        

SHORT-TERM SECURITIES

                    

Commercial Paper (G) – 2.1%

        

J.M. Smucker Co. (The),

        

0.350%, 7–1–15

      6,103           6,103   
       

 

 

  

Master Note – 0.4%

        

Toyota Motor Credit Corp.,

        

0.140%, 7–1–15 (H)

      1,026           1,026   
       

 

 

  

TOTAL SHORT-TERM SECURITIES – 2.5%

               $ 7,129   

(Cost: $7,129)

        

TOTAL INVESTMENT SECURITIES – 144.0%

  

      $ 411,725   

(Cost: $433,851)

        

BORROWINGS (I) – (47.0)%

  

        (134,500 ) 

CASH AND OTHER ASSETS, NET OF LIABILITIES – 3.0%

                 8,694   

NET ASSETS – 100.0%

  

      $ 285,919   
       
 

Notes to Schedule of Investments

 

(A) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2015 the total value of these securities amounted to $193,380 or 67.6% of net assets.

 

(B) All or a portion of securities with an aggregate value of $135,513 have been pledged as collateral on open borrowings.

 

(C) Payment-in-kind bonds.

 

(D) Principal amounts are denominated in the indicated foreign currency, where applicable (CAD – Canadian Dollar, EUR – Euro and GBP – British Pound).

 

(E) Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2015.

 

(F) All or a portion of this position has not settled. Full contract rates do not take effect until settlement date.

 

(G) Rate shown is the yield to maturity at June 30, 2015.

 

(H) Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2015. Date shown represents the date that the variable rate resets.

 

(I) Borrowings Payable as a percentage of Total Investments is 32.7%.

The following forward foreign currency contracts were outstanding at June 30, 2015:

 

      Currency to be
Delivered		            Currency to be
Received		    Settlement
Date		    Counterparty    Unrealized
Appreciation		      Unrealized
Depreciation		  

British Pound

   

708

     

U.S. Dollar

    1,083    7-14-15    Morgan Stanley International    $ —       $ 30   

Canadian Dollar

   

1,887

     

U.S. Dollar

    1,530    7-14-15    Morgan Stanley International      19         —   

Euro

   

2,690

     

U.S. Dollar

    3,025    7-14-15    Morgan Stanley International      26         —   
                    $ 45       $ 30   

The Fund’s investments are reported at fair value. Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date.

Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Reoccurring fair value measurements of Level 3 securities shall include a reconciliation of the beginning to ending balances for reported fair market values. A fair value hierarchy and Level 3 reconciliation, if applicable, have been included in the Notes to Schedule of Investments for the Fund.

An individual investment’s fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized as follows:

Level 1 – Observable input such as quoted prices, available in active markets, for identical assets or liabilities.

Level 2 – Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

Level 3 – Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair market value of investments.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of June 30, 2015:

 

     Level 1      Level 2      Level 3  

Assets

        

Investments in Securities

        

Corporate Debt Securities

   $ —       $ 322,311       $ —   

Loans

     —         64,744         17,541   

Short-Term Securities

     —         7,129         —   

Total

   $ —       $ 394,184       $ 17,541   

Forward Foreign Currency Contracts

   $ —       $ 45       $ —   

Liabilities

        

Forward Foreign Currency Contracts

   $ —       $ 30       $ —   

Payable for Borrowing

   $ —       $ 134,500       $ —   

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

 

    

Corporate

Debt
Securities

     Loans  

Beginning Balance 10-1-14

   $ 286      $ 45,648   

Net realized gain (loss)

     —        (2,110 ) 

Net change in unrealized appreciation (depreciation)

     —        1,389   

Purchases

     —        6,709   

Sales

     —        (18,734 ) 

Amortization/Accretion of premium/discount

     —        113   

Transfers into Level 3 during the period

     —        2,431   

Transfers out of Level 3 during the period

     (286 )      (17,905 ) 

Ending Balance 6-30-15

   $ —      $ 17,541   

Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 6-30-15

   $ —      $ (984 ) 

Transfers from Level 2 to Level 3 occurred primarily due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred primarily due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. During the period ended June 30, 2015, there were no transfers between Levels 1 and 2.

Information about Level 3 fair value measurements:

 

    

Fair Value at

6-30-15

      Valuation Technique(s)    Unobservable Input(s)

Assets

        

    Loans

   $ 17,541       Third-party valuation service    Broker quotes

 

The following acronym is used throughout this schedule:

REIT = Real Estate Investment Trust

For Federal income tax purposes, cost of investments owned at June 30, 2015 and the related unrealized appreciation (depreciation) were as follows:

 

Cost

    $ 433,851   
  

 

 

  

Gross unrealized appreciation

      2,889   

Gross unrealized depreciation

      (25,015 ) 
  

 

 

  

Net unrealized depreciation

    $ (22,126 ) 

    

 

ITEM 2.    CONTROLS AND PROCEDURES.

 

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant’s management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

 

(b) There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).

Attached hereto as Exhibit 99.CERT.

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.

 

Ivy High Income Opportunities Fund
(Registrant)
By       /s/ Mara D. Herrington
  Mara D. Herrington, Vice President and Secretary

Date: August 28, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By       /s/ Henry J. Herrmann
  Henry J. Herrmann, Principal Executive Officer

Date: August 28, 2015

 

By       /s/ Joseph W. Kauten
  Joseph W. Kauten, Principal Financial Officer

Date: August 28, 2015