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MASSMUTUAL
CORPORATE
INVESTORS
[LOGO]
REPORT FOR THE SIX
MONTHS ENDED 6/30/01
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MassMutual Corporate Investors Adviser
1295 State Street David L. Babson & Company Inc.
Springfield, Massachusetts 01111 Auditor
(413) 744-8480 Deloitte & Touche, LLP
New York, New York 10281
Custodian
The Chase Manhattan Bank, N.A.
Transfer Agent & Registrar
Shareholder Financial Services, Inc.
P.O. Box 173673
Denver, Colorado 80217-3673
1-800-647-7374
Internet website: www.massmutual.com/mci
INVESTMENT OBJECTIVE AND POLICY
MassMutual Corporate Investors, a closed-end investment company, was offered to
the public in September 1971 and its shares are listed on the New York Stock
Exchange. The share price of Corporate Investors can be found in the financial
section of most newspapers as "MassCp" or "MassMuInv" under the New York Stock
Exchange listings. The trading symbol is "MCI".
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 principal investments are long-term corporate debt obligations and
occasionally preferred stocks purchased directly from issuers. These provide a
fixed yield and potential capital gains through warrants, conversion rights, or
other equity features which are a prerequisite to every private placement
purchased.
Corporate Investors' current portfolio is characterized by broad industrial
diversification. The entire portfolio is shown in the Schedule of Investments in
the Financial Section of this Report.
The Trust holds investments in a number of companies that are not publicly
traded at this time. Capital gains may be realized on holdings of private
companies through various methods, including directly negotiated sales, put
options and initial public offerings of stock.
The Trust pays quarterly dividends and intends to distribute substantially all
of its net income to shareholders each year. All distributions are paid in cash
unless the shareholder elects to participate in the Dividend Reinvestment and
Share Purchase Plan.
Dividends are distributed in January, May, August, and November.
TO OUR SHAREHOLDERS JULY 31, 2001
We are pleased to present the June 30, 2001 Quarterly Report of MassMutual
Corporate Investors. The Board of Trustees declared a quarterly dividend of 47
cents per share payable on August 14, 2001 to shareholders of record on August
3, 2001. A dividend of 47 cents per share was paid in the previous quarter.
The equity markets showed signs of improvement in the second quarter of 2001.
The S&P 500 was up 5.86%, the Dow Jones was up 6.76%, and the Russell 2000 was
up 14.41% for the quarter. The bond market, in contrast, was more sluggish
during the second quarter. The Lehman Government/Corporate Intermediate Bond
Index was up a mere .67% and the Merrill Lynch High Yield declined 2.27% for
this quarter.
For the quarter ended June 30, 2001, the Trust earned 44 cents per share
compared to 43 cents per share in the previous quarter. During the quarter, net
assets of the Trust increased to $184,455,869 or $21.25 per share from
$181,697,729 or $20.99 per share on March 31, 2001. This translated into a 3.51%
return for the quarter, based on change in net assets with reinvestment of
dividends. Long term, the Trust had average annualized total returns of 13.85%,
15.91%, and 14.96% for the 5-, 10- and 25- year periods ended June 30, 2001,
respectively, based on change in net assets with reinvestment of dividends.
The Trust continues to be very active in the private placement market. We have
added three new securities totaling approximately $6.7 million. The Trust
invested in Coining Corporation of America, Grand Expeditions, Inc. and Kenan-
Advantage Transport Company. The weighted average coupon of these investments
was 12.1%. (A brief description of these investments can be found in the
Schedule of Investments.)
During the second quarter, the Trust realized $5.9 million in net capital gains.
This brought our net realized gains for the six months ended June 30, 2001 to
$14.1 million ($1.63 per share). Of the gains realized in the past six months,
$0.20 per share represents short-term gains which, if not offset during the
year, will be distributed to shareholders.
Thank you for your continued interest in, and support of, MassMutual Corporate
Investors.
Sincerely,
/s/ Robert E. Joyal
Robert E. Joyal
President
1
CONSOLIDATED STATEMENT OF MASSMUTUAL CORPORATE INVESTORS
ASSETS AND LIABILITIES
June 30, 2001 and 2000
(Unaudited)
2001 2000
------------- -------------
ASSETS:
Investments
(See Consolidated Schedule of Investments)
Corporate restricted securities at fair value
(Cost 2001 - $200,768,667; 2000 - $203,050,169) $ 168,613,735 $ 192,661,176
Corporate public securities at market value
(Cost 2001 - $29,872,884; 2000 - $30,107,063) 20,376,467 26,158,824
Short-term securities at cost plus earned discount
which approximates market value 964,887 8,000,497
------------- -------------
189,955,089 226,820,497
Cash 455,475 1,996,776
Interest and dividends receivable, net 4,357,314 4,626,146
Receivable for investments sold 10,604,292 1,619,579
Other assets 628,073 8,085
------------- -------------
TOTAL ASSETS $ 206,000,243 $ 235,071,083
============= =============
LIABILITIES:
Payable for investments purchased $ 581,576 $ 746,365
Management fee payable 694,313 795,615
Note payable 20,000,000 20,000,000
Interest payable 187,711 136,211
Accrued expenses 80,774 93,526
Accounts payable -- 1,905,269
------------- -------------
TOTAL LIABILITIES 21,544,374 23,676,986
============= =============
NET ASSETS:
Common shares, par value $1.00 per share;
an unlimited number authorized 8,680,878 8,587,495
Additional paid-in capital 98,028,145 96,064,219
Retained net realized gain on investments,
prior years 100,353,354 98,556,100
Undistributed net investment income 4,929,740 5,434,721
Undistributed net realized gain on investments 14,115,101 17,088,794
Net unrealized depreciation of investments (41,651,349) (14,337,232)
------------- -------------
TOTAL NET ASSETS 184,455,869 211,394,097
============= =============
TOTAL LIABILITIES AND NET ASSETS $ 206,000,243 $ 235,071,083
============= =============
COMMON SHARES ISSUED AND OUTSTANDING 8,680,878 8,587,495
============= =============
NET ASSET VALUE PER SHARE $ 21.25 $ 24.62
============= =============
See Notes to Financial Statements.
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2
CONSOLIDATED STATEMENT OF OPERATIONS MASSMUTUAL CORPORATE INVESTORS
For the six months ended June 30, 2001 and 2000
(Unaudited)
2001 2000
------------ ------------
INVESTMENT INCOME:
Interest $ 9,611,022 $ 10,070,230
Dividends 342,002 253,946
------------ ------------
TOTAL INCOME 9,953,024 10,324,176
------------ ------------
EXPENSES:
Management fees 1,378,244 1,308,340
Trustees' fees and expenses 74,663 73,186
Transfer Agent/Registrar's expenses 34,000 47,250
Interest 757,596 533,000
Reports to shareholders 57,000 24,000
Audit and legal 26,250 27,333
Other 51,208 35,200
------------ ------------
TOTAL EXPENSES 2,378,961 2,048,309
------------ ------------
NET INVESTMENT INCOME (2001 - $.87 PER SHARE;
2000 - $.96 PER SHARE) 7,574,063 8,275,867
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments 14,115,101 17,088,794
Net change in unrealized depreciation of investments (13,351,918) 933,049
------------ ------------
Net gain on investments 763,183 18,021,843
------------ ------------
Net increase in net assets resulting from operations $ 8,337,246 $ 26,297,710
============ ============
See Notes to Financial Statements.
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3
CONSOLIDATED STATEMENT OF CASH FLOWS MASSMUTUAL CORPORATE INVESTORS
For the six months ended June 30, 2001 and 2000
(Unaudited)
2001 2000
------------ ------------
NET (DECREASE) INCREASE IN CASH:
Cash flows from operating activities:
Interest and dividends received $ 8,835,520 $ 8,631,408
Interest expense paid (757,596) (533,000)
Operating expenses paid (1,910,026) 724,607
Federal income tax paid (1,160,120) (7,499,999)
------------ ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 5,007,778 1,323,016
------------ ------------
Cash flows from investing activities:
Change in short-term portfolio securities, net 6,157,422 6,397,337
Purchase of portfolio securities (24,221,887) (77,541,272)
Proceeds from disposition of portfolio securities 26,211,205 88,010,626
------------ ------------
NET CASH PROVIDED BY INVESTING ACTIVITIES 8,146,740 16,866,691
------------ ------------
NET CASH PROVIDED BY OPERATING AND INVESTING ACTIVITIES 13,154,518 18,189,707
------------ ------------
Cash flows from financing activities:
Increase in receipts for shares issued on reinvestment of dividends 2,057,307 --
Cash dividends paid from net investment income (8,954,607) (7,785,994)
Cash dividends paid from net realized gain on investments (6,879,442) (8,616,121)
------------ ------------
NET CASH USED FOR FINANCING ACTIVITIES (13,776,742) (16,402,115)
------------ ------------
NET (DECREASE) INCREASE IN CASH (622,224) 1,787,592
Cash - beginning of year 1,077,699 209,184
------------ ------------
CASH - END OF PERIOD $ 455,475 $ 1,996,776
============ ============
RECONCILIATION OF NET INCREASE IN NET ASSETS TO
NET CASH FROM OPERATING AND INVESTING ACTIVITIES:
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8,337,246 $ 26,297,710
------------ ------------
Decrease (increase) in investments 16,157,174 (1,226,029)
Decrease (increase) in interest and dividends receivable, net 244,049 (958,173)
Increase in receivable for investments sold (9,362,884) (1,402,167)
Increase in other assets (628,073) (8,085)
Increase in payable for investments purchased (144,213) 746,365
Increase in management fee payable 97,208 322,029
(Decrease) increase in accounts payable (353,515) 1,905,269
Decrease (increase) in accrued expenses (32,354) 12,787
Decrease in accrued taxes (1,160,120) (7,499,999)
------------ ------------
Total adjustments to net assets from operations 4,817,272 (8,108,003)
------------ ------------
Net cash provided by operating and investing activities $ 13,154,518 $ 18,189,707
============ ============
See Notes to Financial Statements.
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4
CONSOLIDATED STATEMENT OF MASSMUTUAL CORPORATE INVESTORS
CHANGES IN NET ASSETS
For the six months ended June 30, 2001 and 2000
(Unaudited)
2001 2000
------------ ------------
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income $ 7,574,063 $ 8,275,867
Net realized gain on investments 14,115,101 17,088,794
Net change in unrealized depreciation of investments (13,351,918) 933,049
------------ ------------
Net increase in net assets resulting from operations 8,337,246 26,297,710
Net increase in shares of beneficial interest transactions 2,057,307 --
------------ ------------
Dividends to shareholders from:
Net investment income (2001 - $.47 per share; 2000 - $.45 per share) (4,069,181) (3,864,373)
------------ ------------
TOTAL INCREASE 6,325,372 22,433,337
NET ASSETS, BEGINNING OF YEAR 178,130,497 188,960,760
------------ ------------
NET ASSETS, END OF PERIOD (INCLUDING UNDISTRIBUTED NET
INVESTMENT INCOME IN 2001 - $4,929,740; 2000 - $5,434,721) $184,455,869 $211,394,097
============ ============
See Notes to Financial Statements.
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5
CONSOLIDATED SELECTED PER SHARE DATA MASSMUTUAL CORPORATE INVESTORS
Selected data for each share of beneficial
interest outstanding for the periods ended:
For the six
months ended For the
6/30/2001 year ended
(Unaudited) 12/31/2000
---------- ----------
Net asset value:
Beginning of year $ 20.74 $ 22.00
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Net investment income 0.87 1.96
Net realized and unrealized gain (loss) on investments 0.11 (0.46)
---------- ----------
Total from investment operations 0.98 1.50
---------- ----------
Dividends from net investment income to common
shareholders (0.47) (1.96)
Distributions from net realized gain on investments
to common shareholders -- (0.80)
---------- ----------
Total distributions (0.47) (2.76)
---------- ----------
Net asset value:
End of period $ 21.25 $ 20.74
========== ==========
Per share market value:
End of period $ 24.70 $ 22.00
========== ==========
Total investment return:
Market value 14.47%* 17.55%
Net asset value 4.75%* 7.28%
Net assets (in millions):
End of period $ 184.46 $ 178.13
Ratio of operating expenses to average net assets 0.89%* 1.47%
Ratio of interest expenses to average net assets 0.41%* 0.58%
Ratio of total expenses to average net assets 1.30%* 2.05%
Ratio of net investment income to average net assets 4.14%* 8.56%
Portfolio turnover 12.41%* 59.75%
* Percentages represent results for the period and are not annualized.
See Notes to Financial Statements.
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6
CONSOLIDATED SCHEDULE OF INVESTMENTS MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES - 91.41%: (A)
PRIVATE PLACEMENT INVESTMENTS - 88.23%
ADORN, INC
A manufacturer of wall panels, cabinets, moldings and
countertops for houses and recreational vehicles
12.5% Subordinated Note due 2010 $2,125,000 2/29/00 $1,840,315 $2,071,450
Warrant, exercisable until 2010, to purchase
common stock at $.02 per share (B) 364 shs. 2/29/00 307,759 37,119
---------- ----------
2,148,074 2,108,569
ADVENTURE ENTERTAINMENT CORPORATION ---------- ----------
An owner and operator of themed family entertainment
centers
19% Senior Subordinated Note due 2004 (B) $ 207,048 12/9/99 207,048 51,762
7% Redeemable Series B Preferred Stock (B) 2,114 shs. 10/31/97 2,002,235 197,817
Warrant, exercisable until 2005, to purchase
Class A common stock at $.01 per share (B) 6,447 shs. 10/31/97 25,005 64
---------- ----------
2,234,288 249,643
---------- ----------
ALPHA SHIRT COMPANY
A domestic distributor of imprintable apparel and other
related items
12% Senior Subordinated Note due 2007 $3,181,500 4/30/99 2,811,313 3,205,043
Common Stock (B) 1,060 shs. 4/30/99 1,059,950 465,482
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share (B) 576 shs. 4/30/99 445,410 253,119
---------- ----------
4,316,673 3,923,644
---------- ----------
AMERICA'S BODY CO./LCP HOLDING CO
A designer and manufacturer of commercial work vehicles
12% Senior Subordinated note Due 2007 $3,500,000 11/2/98 3,084,667 3,371,900
Warrant, exercisable until 2007, to
purchase common stock at $.01 per share (B) 58 shs. 11/2/98 513,333 96,556
---------- ----------
3,598,000 3,468,456
---------- ----------
BETA BRANDS, INC. - T.S.E
A manufacturer of hard candy and chocolate-coated
products sold primarily to the Canadian market
Senior Secured Revolving Credit Note due 2005 $ 610,695 12/23/97 610,695 305,348
Senior Secured Tranche A Floating Rate Note due 2004 $2,408,778 * 2,408,778 1,204,389
17.75% Senior Secured Tranche B Note due 2005 $ 794,620 12/23/97 794,620 397,310
Limited Partnership Interests of CM Equity
Partners (B) 6.27% int. 12/22/97 783,881 7,868
Warrant, exercisable until 2005, to purchase common
stock at $.81 per share (B) 214,419 shs. 12/23/97 -- 2,144
---------- ----------
4,597,974 1,917,059
---------- ----------
* 12/23/97 and 1/31/99.
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7
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
BETTER MINERALS & AGGREGATES
A producer of high grade industrial and specialty silica
sands.
14% Redeemable Preferred Stock 784 shs. 9/30/99 $ 531,734 $ 502,952
Redeemable Preferred Stock Series A (B) 42,001 shs. 12/19/96 388,898 330,565
Convertible Preferred Stock Series B, convertible
into Series B common stock at $9.26 per share (B) 84,002 shs. 12/19/96 777,802 661,129
Common Stock (B) 20,027 shs. 9/30/99 799,068 679,208
Warrants, exercisable until 2005 and 2010, to
purchase Series A and B preferred stock and
common stock at $.01 per unit (B) 11,399 shs. * 128,502 114
---------- ---------- ---------- ----------
2,626,004 2,173,968
---------- ---------- ---------- ----------
C & K MANUFACTURING AND SALES COMPANY
A manufacturer and distributor of branded packaging and
supply products.
Senior Secured Floating Rate Revolving Credit
Facility due 2002 $ 652,244 8/29/96 652,244 130,449
Senior Secured Series A Floating Rate Term Note
due 2002 $2,159,798 8/29/96 2,159,798 431,960
12% Series B Term Note due 2004 $ 529,521 8/29/96 515,833 105,904
Membership Interests (B) 5.63% int. 8/29/96 125,750 --
Warrant, exercisable until 2004, to purchase
membership interests at $.01 per interest (B) 36 int. 8/29/96 26,650 --
---------- ---------- ---------- ----------
3,480,275 668,313
---------- ---------- ---------- ----------
CAINS FOODS, L.P.
A producer of mayonnaise, sauce and pickle products for
both the retail and food service markets.
8% Junior Subordinated Convertible Note due 2004,
convertible into partnership points at $1,388.89
per point $ 108,108 9/29/95 108,108 527,016
Warrant, exercisable until 2006, to purchase
partnership points at $.01 per point (B) 39 pts. 9/29/95 50,261 296,453
---------- ---------- ---------- ----------
158,369 823,469
---------- ---------- ---------- ----------
CAPESUCCESS LLC
A provider of diversified staffing services.
Preferred Membership Interests 1,882 int. 3/31/98 8,396 7,556
Common Membership Interests 24,318 int. 3/31/98 108,486 97,640
---------- ---------- ---------- ----------
116,882 105,196
---------- ---------- ---------- ----------
CAPITOL SPECIALTY PLASTICS, INC.
A producer of desiccant strips used for packaging
pharmaceuticals products.
Common Stock (B) 109 shs. ** 503 403
---------- ---------- ---------- ----------
* 12/19/96 and 9/30/99.
**12/30/97 and 5/29/99.
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8
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
CHAPARRAL RESOURCES, INC. - O.T.C.
An international oil and gas exploration and production
company.
Common Stock (B) 164 shs. 12/3/97 $ 6,395 $ 295
---------- ----------
COINING CORPORATION OF AMERICA
A manufacturer of close tolerance parts and metal stampings.
Senior Secured Floating Rate Tranche A Note due 2008 $1,490,741 6/26/01 1,490,741 1,480,157
12% Senior Secured Tranche B Note due 2008 $ 648,148 6/26/01 648,148 644,842
Limited Partnership Interest 324 shs. 6/26/01 324,074 259,259
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 107,036 shs. 6/26/01 79,398 1,070
---------- ----------
2,542,361 2,385,328
---------- ----------
COLIBRI HOLDINGS CORPORATION
A manufacturer and distributor of wild bird feeders and
accessories.
12.5% Senior Subordinated Note due 2008 $1,593,750 9/22/00 1,341,664 1,471,669
Common Stock (B) 1,429 shs. 9/22/00 531,250 478,120
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 843 shs. 9/22/00 265,625 8
---------- ----------
2,138,539 1,949,797
---------- ----------
CONSUMER PRODUCT ENTERPRISES, INC.
A manufacturer of colored acrylic felt for consumer use.
Senior Secured Floating Rate Revolving Credit
Notes due 2000 $ 665,185 12/8/95 665,185 332,592
10.75% Senior Secured Term Note due 2003 $ 613,774 12/8/95 613,774 306,887
12% Senior Subordinated Note due 2005 $ 800,575 12/8/95 772,090 200,144
Common Stock (B) 184,560 shs. 12/8/95 184,560 --
Warrant, exercisable until 2005, to purchase common
stock at $.01 per share (B) 138,420 shs. 12/8/95 50,853 --
---------- ----------
2,288,462 839,623
---------- ----------
CORVEST PROMOTIONAL PRODUCTS, INC.
A manufacturer and distributor of promotional products.
12% Senior Subordinated Note due 2007 $3,863,636 * 3,620,137 3,771,681
Common Stock (B) 56 shs. * 96,591 10,526
Limited Partnership Interest 19.32% int. * 287,805 218,808
Warrant, exercisable until 2007, to purchase common
stock at $.01 per share (B) 183 shs. * 297,203 34,392
---------- ----------
4,301,736 4,035,407
---------- ----------
DHD HEALTHCARE, INC.
A designer, manufacturer and distributor of plastic,
noninvasive medical devices used for respiratory care.
Senior Secured Floating Rate Tranche A Note due 2008 $1,394,530 2/8/01 1,394,530 1,373,891
12% Senior Secured Tranche B Note due 2009 $ 574,220 2/8/01 492,190 553,893
Limited Partnership Interests of Riverside Capital
Appreciation Fund (B) 163,896 shs. 2/8/01 163,896 131,117
Warrants, exercisable until 2008, to purchase common
stock at $.01 per share (B) 927 shs. 2/8/01 82,030 9
---------- ----------
2,132,646 2,058,910
---------- ----------
*3/5/99 and 3/24/99.
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9
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
DIRECTED ELECTRONICS, INC.
A designer and distributor of brand name automotive security
systems, audio products and installation accessories.
12% Senior Subordinated Note due 2007 $3,355,267 12/22/99 $2,989,963 $3,415,327
8% Convertible Class B Subordinated Promissory
Note due 2008 $ 74,562 12/22/99 74,562 73,600
Class B common stock (B) 26,097 shs. 12/22/99 260,965 234,869
Limited Partnership Interests 8.85% int. 12/22/99 530,046 477,044
Warrants, exercisable until 2007, to purchase common
stock at $.01 per share (B) 45,255 shs. 12/22/99 413,816 453
---------- ----------
4,269,352 4,201,293
---------- ----------
DIVERSCO, INC./DHI HOLDINGS, INC.
A contract provider of janitorial and equipment maintenance
services and temporary production labor to industrial customers.
12% Senior Subordinated Note due 2006 $2,985,373 8/28/98 2,784,133 1,492,686
Membership Interests of MM/Lincap Diversco
Investments Ltd., LLC (B) 3.48% int. 8/27/98 734,090 --
Warrant, exercisable until 2003 & 2006, to purchase
common stock of DHI Holdings, Inc. at $.01 per share 3,627 shs. * 403,427 --
---------- ----------
3,921,650 1,492,686
---------- ----------
EAST RIVER VENTURES LP
An acquirer of controlling or substantial interests in
other entities.
Limited Partnership Interest 32,191 int. 1/1/01 32,191 28,972
---------- ----------
ENZYMATIC THERAPY, INC.
A manufacturer and distributor of branded natural
medicines and nutritional supplements.
12% Senior Note due 2009 $1,593,750 3/30/00 1,334,587 1,543,388
Limited Partnership Interest 1.37% int. 3/30/00 531,250 478,125
Warrant, exercisable until 2009, to purchase common
stock at $.01 per share (B) 478 shs. 3/30/00 255,000 5
---------- ----------
2,120,837 2,021,518
---------- ----------
EVANS CONSOLES, INC.
A designer and manufacturer of consoles and control
center systems.
Senior Secured Tranche A Floating Rate Note due 2005 $1,155,800 3/2/98 1,155,800 1,145,167
8.85% Senior Secured Tranche A Note due 2005 $1,155,800 3/2/98 1,155,800 1,094,080
11.75% Senior Secured Tranche B Note due 2006 $ 700,000 3/2/98 620,793 705,670
Common Stock (B) 26,906 shs. 2/11/98 94,880 75,905
Limited Partnership Interests of CM Equity Partners(B) 126,445 int. 2/11/98 126,445 101,156
Warrant, exercisable until 2006, to purchase common
stock at $.01 per share (B) 34,783 shs. 3/2/98 112,000 348
---------- ----------
3,265,718 3,122,326
---------- ----------
*10/24/96 and 8/28/98.
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10
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
EVOLVE SOFTWARE, INC.
A provider of Internet-based end-to-end solutions for
automating professional services organizations.
Common Stock (B) 175 shs. 4/20/01 $ 735 $ 735
---------- ----------
EXAMINATION MANAGEMENT SERVICES, INC.
A national full-service evidence provider to the insurance
industry and a provider of occupational health testing.
12% Senior Subordinated Note due 2007 $2,109,637 3/16/99 1,966,474 1,955,844
Limited Partnership Interest (B) 5.27% int. 3/1/99 2,140,363 1,926,327
Warrants, exercisable until 2007, to purchase common
stock at $.01 per share (B) 77,233 shs. 3/16/99 175,803 77,233
---------- ----------
4,282,640 3,959,404
---------- ----------
FAIRMARKET INC.
A developer and deliverer of e-business selling and marketing
solutions for retailers, distributors and manufacturers.
Common Stock (B) 217 shs. 4/20/01 371 371
---------- ----------
FASTENERS FOR RETAIL, INC.
A designer and marketer of low-cost fasteners for point of
purchase displays and signage in retail environments.
12.5% Senior Subordinated Note due 2007 $3,650,000 12/22/99 3,239,755 3,796,000
Class B Common Stock (B) 600 shs. 12/22/99 600,000 480,000
Warrant, exercisable until 2007, to purchase common
stock at $.02 per share (B) 589 shs. 12/22/99 462,927 6
---------- ----------
4,302,682 4,276,006
---------- ----------
FLEMING ACQUISITION CORPORATION
A supplier of high-quality, premium printed labels for
distilled spirits, wine, food and household products.
Common Stock (B) 545 shs. 4/28/95 272,500 101,214
Warrant, exercisable until 2005, to purchase common
stock at $.01 per share (B) 380 shs. 4/28/95 170,455 70,517
Incentive Warrant, exercisable until 2005, to purchase
common stock at $.01 per share (B) 19 shs. 4/28/95 2,273 --
---------- ----------
445,228 171,731
---------- ----------
G C-SUN HOLDINGS, LP
A value-added national distributor of maintenance, repair
and operating supplies such as fasteners, electrical
components and tools.
12% Senior Subordinated Note due 2008 $1,725,000 3/2/00 1,409,532 1,711,890
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 880 shs. 3/2/00 347,288 85,304
---------- ----------
1,756,820 1,797,194
---------- ----------
--------------------------------------------------------------------------------
11
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
GOLDEN BEAR OIL SPECIALTIES
A manufacturer of asphalt and specialty lubricating and
processing oils.
17% Senior Subordinated Note due 2005 (B) $3,434,795 7/18/97 $3,364,798 $ --
18% Bridge Preferred Stock (B) 295 shs. 5/30/00 288,540 --
12% Preferred Stock (B) 393 shs. 7/18/97 311,111 --
Common Stock (B) 27,073 shs. 7/18/97 77,841 --
Warrant, exercisable until 2005, to purchase common
stock at $.001 per share (B) 23,333 shs. 7/18/97 69,999 --
Warrant, exercisable until 2010, to purchase common
stock at $.001 per share (B) 17,111 shs. 7/18/97 -- --
---------- ----------
4,112,289 --
---------- ----------
GRAND EXPEDITIONS, INC.
A luxury travel tour operation provider.
15% Senior Subordinated Note due 2010 $2,125,000 6/21/01 1,117,635 2,029,800
Warrant, exercisable until 2010, to purchase common
stock at $.01 per share (B) 10,018 shs. 6/21/01 1,007,533 100
---------- ----------
2,125,168 2,029,900
---------- ----------
HAMILTON FUNERAL SERVICES
The largest privately held owner and operator of funeral
homes in the United States.
16.5% Senior Subordinated Note due 2007 $3,391,040 * 3,391,040 2,373,728
Warrant, exercisable until 2007, to purchase common
stock at $1 per share (B) 338,280 shs. * 48,447 3,383
---------- ----------
3,439,487 2,377,111
---------- ----------
HIGHGATE CAPITAL, LLC
An acquirer of controlling or substantial interests in
manufacturing and marketing entities.
Series A Preferred Units (B) 100,000 uts. 7/21/94 513,209 700,000
---------- ----------
HUSSEY SEATING COMPANY
A manufacturer of spectator seating products.
Senior Secured Floating Rate Revolving Note due 2003 $1,701,000 6/12/96 1,701,000 1,020,600
Senior Secured Floating Rate Note due 2003 $1,327,500 ** 1,327,500 796,500
10% Senior Secured Note due 2003 $ 337,501 6/12/96 337,501 202,501
12% Subordinated Secured Note due 2006 $1,350,000 6/12/96 1,220,952 405,000
Warrant, exercisable until 2006, to purchase common
stock at $.01 per share (B) 4,189 shs. 6/12/96 225,000 --
---------- ----------
4,811,953 2,424,601
---------- ----------
IBEAM BROADCASTING CORPORATION
A provider of an Internet broadcast network that delivers
streaming media with viewing and listening quality.
Common Stock (B) 461 shs. 4/20/01 2,360 2,360
---------- ----------
* 1/25/99 and 7/16/99.
**6/12/96 and 6/11/99.
--------------------------------------------------------------------------------
12
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
IMMEDIENT CORPORATION
A provider of diversified staffing services.
Common Stock (B) 6,855 shs. 3/31/98 $ 37,702 $ 33,932
---------- ----------
INTEGRATION TECHNOLOGY SYSTEMS, INC.
A manufacturer of steel protective computer and network
systems for the industrial and office environments.
Senior Secured Floating Rate Revolving Note due 2007 $ 40,283 6/1/00 40,283 39,437
11% Senior Secured Note due 2007 $2,014,135 6/1/00 2,014,135 1,980,499
Common Stock (B) 228 shs. 6/1/00 262,200 209,760
---------- ----------
2,316,618 2,229,696
---------- ----------
JACKSON PRODUCTS, INC.
A manufacturer and distributor of a variety of industrial
and highway safety products.
Common Stock (B) 226 shs. 8/16/95 22,634 164,662
Warrant, exercisable until 2005, to purchase common
stock at $.01 per share (B) 1,042 shs. 8/16/95 95,627 757,186
---------- ----------
118,261 921,848
---------- ----------
JASON, INC.
A diversified manufacturing company serving various
industrial markets.
13% Senior Subordinated Note due 2008 $ 963,687 8/4/00 855,059 939,980
14% Cumulative Redeemable Preferred Stock Series A 289 shs. 8/4/00 289,224 278,374
Limited Partnership Interests of Saw Mill Capital
Fund II L.P. (B) 2.40% int. 8/3/00 886,896 709,506
Warrant, exercisable until 2009, to purchase common
stock at $.01 per share (B) 50,870 shs. 8/4/00 115,412 21,518
---------- ----------
2,146,591 1,949,378
---------- ----------
KAPPLER SAFETY GROUP, INC.
A manufacturer of protective apparel for the
industrial/safety, clean room and healthcare markets.
13% Senior Subordinated Note due 2004 $2,666,400 12/2/96 2,543,475 2,558,144
Warrant, exercisable until 2004, to purchase common
stock at $.01 per share (B) 57,418 shs. 12/2/96 333,300 574
---------- ----------
2,876,775 2,558,718
---------- ----------
KEEPSAKE QUILTING, INC.
A seller of quilting fabrics, books, patterns, kits and
notions to consumers.
Senior Secured Floating Rate Tranche A Note due 2007 $1,284,247 6/16/00 1,284,247 1,269,992
12% Senior Secured Tranche B Note due 2008 $ 550,392 6/16/00 508,088 543,842
Limited Partnership Interests of Riverside XVI
Holding Company L.P. (B) 5.90% int. 6/12/00 416,018 374,407
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 1,108 shs. 6/12/00 45,866 11
---------- ----------
2,254,219 2,188,252
---------- ----------
--------------------------------------------------------------------------------
13
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
KENAN-ADVANTAGE TRANSPORT COMPANY
A transporter of light petroleum, petrochemicals,
lubricants and residual fuels.
12.5% Senior Subordinated Note due 2009 $1,817,435 4/30/01 $1,817,435 $1,790,900
Preferred Stock 289 shs. 4/30/01 307,000 245,600
Warrant, exercisable until 2009, to purchase common
stock at $.01 per share (B) 50,870 shs. 4/30/01 14 269
---------- ----------
2,124,449 2,036,769
---------- ----------
LANCASTER LABORATORIES, INC.
One of the largest laboratory testing operations in the
United States.
12% Senior Subordinated Note due 2007 $1,669,643 9/25/00 1,342,631 1,667,472
Common Stock (B) 455,357 shs. 9/25/00 455,357 409,821
Warrant, exercisable until 2007, to purchase common
stock at $.01 per share (B) 405,485 shs. 9/25/00 348,348 4,055
---------- ----------
2,146,336 2,081,348
---------- ----------
LIH INVESTORS, L.P.
A manufacturer and marketer of a broad line of external
accessories for new and used sport utility vehicles, trucks
and vans.
12.5% Senior Subordinated Note due 2006 $3,845,000 * 3,342,578 3,497,028
Common Stock (B) 58,001 shs. * 406,003 11,600
Warrant, exercisable until 2006, to purchase common
stock at $.11 per share (B) 108,404 shs. * 602,127 12,141
---------- ----------
4,350,708 3,520,769
---------- ----------
MAGNETIC DATA TECHNOLOGIES, INC./MDT HOLDINGS LLC
A provider of post-sales and warranty repair services to
electronic component manufacturers.
12% Senior Subordinated Note due 2007 $2,700,000 4/9/99 2,194,264 1,979,100
Limited Partnership Interests of MDT Holdings LLC (B) 5.70% int. 4/9/99 1,099,500 109,950
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share (B) 665,776 shs. 4/9/99 603,257 6,658
---------- ----------
3,897,021 2,095,708
---------- ----------
MAXTEC INTERNATIONAL CORP.
A manufacturer and distributor of remote control operating
systems for overhead cranes.
Senior Floating Rate Revolving Credit Facility due 2001 $ 461,536 6/28/95 461,536 461,121
Common Stock (B) 76,923 shs. 6/28/95 230,769 207,692
Warrant, exercisable until 2005, to purchase common
stock at $.01 per share (B) 39,563 shs. 6/28/95 171,429 396
---------- ----------
863,734 669,209
---------- ----------
* 12/23/98 and 1/28/99.
--------------------------------------------------------------------------------
14
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
MERIT INDUSTRIES, INC.
A designer and manufacturer of coin-operated video and
dart games.
12% Senior Subordinated Note due 2006 $2,750,290 8/19/98 $2,613,171 $1,375,145
Limited Partnership Interests of Riverside X
Holding Company L.P. (B) 7.51% int. * 1,575,033 393,801
Warrants, exercisable until 2006, to purchase limited
partnership interests at $.01 per share (B) 1,855 int. 8/19/98 185,411 19
---------- ----------
4,373,615 1,768,965
---------- ----------
MOSS, INC.
A manufacturer and distributor of large display and
exhibit structures.
Senior Secured Floating Rate Revolving Note due 2005 $ 134,480 9/21/00 134,480 130,069
Senior Secured Tranche A Floating Rate Note due 2007 $1,344,800 9/21/00 1,344,800 1,322,611
12% Senior Secured Tranche B Note due 2008 $ 420,250 9/21/00 382,189 407,727
Limited Partnership Interests of Riverside Capital
Appreciation Fund L.P. (B) 6.23% int. 9/20/00 186,899 149,512
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 463 shs. 9/21/00 40,344 5
---------- ----------
2,088,712 2,009,924
---------- ----------
NEXELL THERAPEUTICS
A provider of cell therapy technology to the medical
community.
3% Cumulative Convertible Preferred Stock Series B,
due 2008, convertible into common stock at $11 per share 969 shs. 11/24/99 3,875,000 3,835,088
Warrant, exercisable until 2008, to purchase common
stock at $12 per share (B) 46,131 shs. 11/24/99 -- 461
---------- ----------
3,875,000 3,835,549
---------- ----------
NPC, INC.
A manufacturer of flexible connectors and equipment used
in the installation of sewers and storm drain pipelines.
Senior Secured Floating Rate Revolving Note due 2006 $ 213,559 6/25/99 302,542 294,071
Senior Secured Floating Rate Note due 2006 $3,020,975 6/25/99 3,020,975 2,963,878
12% Senior Secured Tranche B Note due 2007 $ 978,814 6/25/99 858,171 935,746
Limited Partnership Interests of Riverside XIII
Holding Company L.P. 4.25% int. 6/11/99 343,870 275,083
Warrant, exercisable until 2007, to purchase common
stock at $.01 per share (B) 201 shs. 6/25/99 142,373 26,340
---------- ----------
4,667,931 4,495,118
---------- ----------
* 8/12/98, 8/11/99 and 3/3/00.
--------------------------------------------------------------------------------
15
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
OLYMPIC BOAT CENTERS, INC.
An operator of boat dealerships in Washington state,
Wisconsin, Minnesota, and British Columbia.
12% Senior Subordinated Note due 2006 $2,774,000 8/7/98 $2,516,521 $2,676,355
12% Senior Subordinated Note due 2008 $ 307,071 2/9/00 272,553 303,570
Limited Partnership Interest of Riverside VIII
Holding Company L.P. (B) 9.87% int. * 1,012,429 910,952
Warrant, exercisable until 2007, to purchase common
stock at $.01 per share (B) 28,648 shs. ** 389,188 196,985
---------- ----------
4,190,691 4,087,862
---------- ----------
PAR ACQUISITION CORP.
A manufacturer of fuel handling systems for nuclear
power plants and hazardous waste.
8% Convertible Preferred Stock due 2001,
convertible into common stock at $2 per share 83,333 shs. 2/5/93 166,667 513,333
Common Stock (B) 133,333 shs. 2/5/93 333,333 821,333
---------- ----------
500,000 1,334,666
---------- ----------
PARADIGM PACKAGING, INC.
A manufacturer of plastic bottles and closures for the
nutritional, pharmaceutical, personal care and food
packaging markets.
12% Senior Subordinated Note due 2008 $ 2,125,000 12/19/00 1,870,032 2,117,775
Membership Interests of MM/Lincap PPI
Investments, Inc., LLC (B) 265,625 int. 12/21/00 265,625 212,500
---------- ----------
2,135,657 2,330,275
---------- ----------
PGT INDUSTRIES, INC.
A manufacturer of residential windows and patio doors and
a provider of custom patio rooms and porch enclosures.
12.2% Senior Subordinated Notes due 2009 $1,965,000 1/29/01 1,714,236 1,930,023
Common Stock (B) 115 shs. 1/29/01 115,000 92,000
Warrant, exercisable until 2009, to purchase common
stock at $.01 per share (B) 325 shs. 1/29/01 264,519 3
---------- ----------
2,093,755 2,022,026
---------- ----------
PHARMACEUTICAL BUYERS, INC.
A group purchasing organization which specializes in
arranging and negotiating contracts for the purchase of
pharmaceutical goods and medical equipment.
10.5% Senior Secured Note due 2005 $ 449,196 11/30/95 449,196 455,620
10.5% Senior Secured Convertible Note due 2005,
convertible into common stock at $50,000 per share $ 195,000 11/30/95 195,000 212,004
Common Stock 6 shs. 11/30/95 337,500 288,483
---------- ----------
981,696 956,107
---------- ----------
* 8/7/98, 2/23/99 and 12/22/99.
**8/7/98 and 2/9/00.
--------------------------------------------------------------------------------
16
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
PLASSEIN PACKAGING, INC.
A manufacturer of flexible packaging products.
13% Senior Subordinated Note due 2007 $ 716,293 8/15/00 $ 627,739 $ 698,457
12% Junior Subordinated Note due 2008 $ 602,992 8/15/00 416,532 528,402
Convertible Preferred Stock, convertible into common
stock at $1 per share (B) 288,256 shs. 8/15/00 288,256 259,430
Common Stock (B) 446,960 shs. 8/15/00 289,552 260,578
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 299,447 shs. 8/15/00 95,840 2,995
---------- ----------
1,717,919 1,749,862
---------- ----------
POLYMER TECHNOLOGIES, INC./POLI-TWINE WESTERN, INC.
A leading manufacturer of polypropylene twine for the hay
bailing marketplace.
11% Senior Subordinated Note due 2010 $1,806,250 3/1/00 1,717,433 1,678,729
10% Junior Subordinated Note due 2010 $ 239,062 3/1/00 239,062 194,955
Common Stock (B) 159,375 shs. 3/1/00 79,688 71,719
Warrant, exercisable until 2010, to purchase common
stock at $.01 per share (B) 159,000 shs. 3/1/00 103,541 1,590
---------- ----------
2,139,724 1,946,993
---------- ----------
PRECISION DYNAMICS, INC.
A manufacturer of custom-designed solenoid valves and controls.
Senior Secured Floating Rate Revolving Credit
Facility due 2003 $ 652,000 7/22/96 652,000 637,526
Senior Secured Floating Rate Term Note due 2003 $2,070,100 7/22/96 2,070,100 2,031,803
12% Senior Secured Term Note due 2004 $ 489,000 7/22/96 440,007 477,900
8% Preferred Stock 339 shs. 7/22/96 231,929 192,710
Common Stock (B) 599 shs. 7/22/96 28,978 14,489
Warrant, exercisable until 2004, to purchase common
stock at $.01 per share (B) 322 shs. 7/22/96 97,800 3
---------- ----------
3,520,814 3,354,431
---------- ----------
PREMIUM FOODS GROUP
A manufacturer and distributor of branded meat products.
12% Senior Subordinated Note due 2008 $1,366,000 8/29/00 1,144,943 1,356,984
Limited Partnership Interests of MHD Holdings, LLC 1.77% int. 8/29/00 759,000 683,100
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 5,566 shs. 8/29/00 233,738 56
---------- ----------
2,137,681 2,040,140
---------- ----------
PROCESS CHEMICALS, LLC
A specialty chemical company that manufactures process
chemicals for the fertilizer, asphalt and concrete industries.
6% Redeemable Preferred Membership Interests 2,525 int. * 2,780,992 2,469,521
Common Membership Interests 9,863 int. * 13,049 38,802
---------- ----------
2,794,041 2,508,323
---------- ----------
* 7/31/97 and 1/4/99.
--------------------------------------------------------------------------------
17
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
PROTEIN GENETICS, INC.
A producer of bovine artificial insemination products, related
breeding and healthcare products and specialty genetics sold
to the dairy and beef industries.
11.67% Senior Secured Note due 2004 $ 450,155 8/12/94 $ 450,155 $ 270,093
9.8% Redeemable Exchangeable Preferred Stock 1,004 shs. 8/12/94 100,350 20,070
Common Stock (B) 1,492 shs. 8/12/94 -- --
---------- ----------
550,505 290,163
---------- ----------
PW EAGLE, INC. - O.T.C.
An extruder of small and medium diameter plastic pipe
and tubing in the United States.
14% Senior Subordinated Note due 2007 $3,400,244 9/16/99 3,400,244 3,634,181
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share (B) 197,040 shs. 9/16/99 1 1,159,777
---------- ----------
3,400,245 4,793,958
---------- ----------
RENT-WAY, INC. - O.T.C.
An operator of rent-to-own stores across the United States.
Warrant, exercisable until 2002, to purchase
common stock at $9.94 per share (B) 20,000 shs. 7/18/95 -- 27,090
---------- ----------
RK POLYMERS, LLC
A producer of styrenic block copolymers and highly
engineered synthetic elastomers.
13% Senior Subordinated Notes due 2011 $2,125,000 2/28/01 1,919,531 2,066,350
Warrant, exercisable until 2011, to purchase common
stock at $.01 per share (B) 205 shs. 2/28/01 205,469 2
---------- ----------
2,125,000 2,066,352
---------- ----------
SAFETY SPEED CUT MANUFACTURING
A manufacturer of vertical panel saws and routers for the
wood working industry.
Senior Secured Floating Rate Tranche A Note due 2007 $2,826,630 6/2/99 2,826,630 2,826,630
12% Senior Secured Tranche B Note due 2007 $1,130,652 6/2/99 1,130,652 1,128,278
Class B common stock (B) 1,480 shs. 6/2/99 256,212 219,277
---------- ----------
4,213,494 4,174,185
---------- ----------
SNYDER INDUSTRIES, INC.
A manufacturer of proprietary rotationally molded
polyethylene containers.
12.5% Senior Subordinated Note due 2007 $3,125,000 12/6/99 2,747,649 3,116,875
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share (B) 513 shs. 12/6/99 426,136 5
---------- ----------
3,173,785 3,116,880
---------- ----------
--------------------------------------------------------------------------------
18
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
SPECTAGUARD ACQUISITION LLC
The tenth largest provider of security officers in the
United States.
14% Senior Subordinated Note due 2008 $2,027,930 3/1/00 $1,991,950 $2,013,328
14% Preferred Stock 109 shs. 3/1/00 108,854 94,071
Common Stock (B) 100,179 shs. 3/1/00 14,844 11,871
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 257,000 shs. 3/1/00 35,980 2,570
---------- ----------
2,151,628 2,121,840
---------- ----------
STAR INTERNATIONAL INC.
A manufacturer of commercial cooking appliances.
11% Senior Secured Note due 2004 $2,498,350 1/25/00 2,380,122 2,426,148
9.65% Senior Secured Note due 2004 $ 703,81 5/27/94 703,881 674,385
10.5% Subordinated Note due 2004 $ 716,418 5/27/94 716,418 659,893
Common Stock (B) 4,310 shs. 5/27/94 259,735 137,874
Warrant, exercisable until 2004, to purchase common
stock at $.01 per share (B) 4,621 shs. * 171,830 147,780
---------- ----------
4,231,986 4,046,080
---------- ----------
STRATEGIC EQUIPMENT & SUPPLY PARTNERS, INC.
A provider of kitchen and restaurant design, equipment
fabrication and installation services.
12% Senior Subordinated Note due 2008 $3,875,000 1/14/00 3,283,789 3,783,550
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 34,162 shs. 1/14/00 658,750 342
---------- ----------
3,942,539 3,783,892
---------- ----------
SUPREME INDUSTRIES, INC. - A.S.E.
A manufacturer of specialized truck bodies.
Common Stock (B) 105,202 shs. ** 267,325 435,536
Common Stock of TGC Industries, Inc. (B) 6,361 shs. 9/30/86 9,497 4,675
---------- ----------
276,822 440,211
---------- ----------
THE TRANZONIC COMPANIES
A producer of commercial and industrial supplies, such as
safety products, janitorial supplies, work apparel, washroom
and restroom supplies and sanitary care products.
12.5% Senior Subordinated Note due 2007 $2,712,000 2/5/98 2,427,350 2,718,509
Common Stock (B) 630 shs. 2/4/98 630,000 567,000
Warrants, exercisable until 2006, to purchase shares of
Class B common stock at $.01 per share (B) 444 shs. 2/5/98 368,832 4
---------- ----------
3,426,182 3,285,513
---------- ----------
* 5/27/94 and 1/25/00.
**5/23/79, 12/15/95 and 6/9/96.
--------------------------------------------------------------------------------
19
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
THERMA-TRU CORPORATION
A manufacturer of residential exterior entry door systems.
12.25% Senior Subordinated Note due 2009 $1,236,000 5/9/00 $ 967,539 $1,242,551
Limited Partnership Interest of KT Holding
Company L.P. (B) 0.52% int. 5/5/00 772,700 695,430
Warrant, exercisable until 2009, to purchase common
stock at $.01 per share (B) 739 shs. 5/9/00 287,370 7
---------- ----------
2,027,609 1,937,988
---------- ----------
TIDEWATER HOLDINGS, INC.
An operator of a barge transportation line on the
Columbia/Snake River system.
Convertible Preferred Stock, convertible into common 1,120 shs. 7/25/96 1,120,000 784,000
stock at $1,000 per share (B)
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 474 shs. 7/25/96 48,216 331,632
---------- ----------
1,168,216 1,115,632
---------- ----------
TRANSMONTAIGNE OIL COMPANY - A.S.E.
An independent petroleum products marketing company.
Common Stock (B) 333,326 shs. * 1,109,177 1,739,961
---------- ----------
TREND TECHNOLOGIES, INC.
A manufacturer and assembler of plastic injection molded
and stamped metal parts.
Limited Partnership Interests of Riverside V
Holding Company L.P. 8.28% int. ** 198,167 138,713
Limited Partnership Interests of Riverside V-A
Holding Company L.P. 8.28% int. ** 541,133 351,733
---------- ----------
739,300 490,446
---------- ----------
TRIDEX CORP. - O.T.C.
A designer and manufacturer of point-of-sale monitors and
keyboards used by retailers and restaurants.
12% Senior Subordinated Note due 2005 (B) $3,000,000 4/17/98 3,000,000 300,000
Common Stock (B) 71,429 shs. 4/17/98 500,003 --
Warrant, exercisable until 2005, to purchase common
stock at $2.03 per share (B) 218,182 shs. 5/26/98 1 --
---------- ----------
3,500,004 300,000
---------- ----------
* 3/28/91, 12/18/91, 9/30/92, 9/30/93, 9/30/94, 3/31/95 and 5/9/95.
**3/21/97, 10/16/97, 11/19/97 and 3/12/99.
--------------------------------------------------------------------------------
20
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
TRONAIR, INC.
A designer, engineer and manufacturer of ground support
equipment for the business, commuter and commercial
aviation markets.
10.5% Senior Secured Term Note due 2008 $2,368,750 1/20/00 $2,368,750 $2,312,137
12% Senior Subordinated Note due 2010 $1,326,500 1/20/00 1,236,167 1,275,032
Common Stock (B) 227,400 shs. 1/20/00 227,400 181,920
Warrant, exercisable until 2010, to purchase
common stock at $.01 per share (B) 260,563 shs. 1/20/00 98,540 2,606
---------- ----------
3,930,857 3,771,695
---------- ----------
TRUSEAL TECHNOLOGIES, INC.
A manufacturer of sealant systems for the North American
window and door market.
12.25% Senior Subordinated Note due 2006 $2,675,000 6/23/97 2,426,847 2,650,122
Limited Partnership Interests (B) 3.05% int. 6/17/97 824,600 742,140
Warrant, exercisable until 2006, to purchase limited
partnership interests at $.01 per unit (B) 1,258 uts. 6/23/97 376,932 294
---------- ----------
3,628,379 3,392,556
---------- ----------
TVI, INC.
A retailer of used clothing in the United States, Canada
and Australia.
15.971% Subordinated Note due 2008 $1,918,873 5/2/00 1,836,806 1,901,028
Common Stock (B) 354,167 shs. 5/2/00 354,167 318,750
---------- ----------
2,190,973 2,219,778
---------- ----------
U.S. NETTING, INC.
A manufacturer of plastic netting for a wide variety of
industries.
Senior Secured Revolving Credit Facility due 2005 $ 279,450 5/3/95 279,450 142,324
11% Senior Secured Note due 2005 $ 959,443 5/3/95 959,443 639,661
12% Subordinated Note due 2005 $ 652,050 5/3/95 632,840 394,621
Common Stock (B) 4,911 shs. 5/3/95 391,230 4,911
Warrant, exercisable until 2005, to purchase common
stock at $.01 per share (B) 2,795 shs. 5/3/95 35,923 28
---------- ----------
2,298,886 1,181,545
---------- ----------
USFLOW CORPORATION
A distributor of industrial pipes, valves and fittings.
12.5% Senior Subordinated Note due 2007 $3,463,000 12/14/99 3,053,514 3,346,643
Class B Common Stock (B) 664 shs. 12/14/99 664,200 531,360
Warrant, exercisable until 2007, to purchase common
stock at $.01 per share (B) 565 shs. 12/14/99 461,733 6
---------- ----------
4,179,447 3,878,009
---------- ----------
--------------------------------------------------------------------------------
21
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares, Units,
Warrants,
Ownership or
Principal Acquisition Fair Value
Amount Date Cost at 6/30/01
---------- ---------- ---------- ----------
CORPORATE RESTRICTED SECURITIES (A) (CONTINUED)
VICTORY VENTURES, LLC
An acquirer of controlling or substantial interests in other
entities.
Series A Preferred Units (B) 1 uts. 12/2/96 $ 1 $ 2
---------- ----------
VITEX PACKAGING, INC.
A manufacturer of specialty packaging, primarily
envelopes and tags used on tea bags.
12% Senior Secured Tranche B Note due 2008 $2,045,265 12/18/00 1,884,064 2,028,494
Limited Partnership Interests of Riverside VI
Holding Company L.P. 4.80% int. * 351,315 281,043
Limited Partnership Interests of Riverside Capital
Appreciation Fund (B) 0.75% int. 12/18/00 79,735 63,804
Warrant, exercisable until 2007, to purchase common
stock at $.01 per share (B) 308 shs. ** 227,729 3
---------- ----------
2,542,843 2,373,344
---------- ----------
WASHINGTON INVENTORY SERVICES, INC.
A provider of physical inventory taking and other related
services to retailers.
12.5% Senior Subordinated Note due 2008 $1,646,881 11/3/00 1,599,165 1,680,477
Senior Preferred Stock (B) 4,692 shs. 11/1/00 469,160 462,123
Class B Common Stock (B) 8,959 shs. 11/1/00 8,959 8,063
Warrant, exercisable until 2008, to purchase common
stock at $.01 per share (B) 3,979 shs. 11/3/00 49,804 40
---------- ----------
2,127,088 2,150,703
---------- ----------
TOTAL PRIVATE PLACEMENT INVESTMENTS 193,374,487 162,737,979
========== ==========
*12/30/97 and 9/9/99.
** 1/2/98 and 12/18/00.
--------------------------------------------------------------------------------
22
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares or
Interest Due Principal Fair Value
CORPORATE RESTRICTED SECURITIES (A) (Continued) Rate Date Amount Cost at 6/30/01
-------- -------- ----------- ----------- -----------
RULE 144A SECURITIES - 3.18%: (A)
BONDS - 0.16%
Climachem, Inc. 10.750% 12/01/07 $ 175,000 $ 168,000 $ 67,375
Cuddy International Corp. (B) 10.750 12/01/07 525,000 517,157 231,000
----------- ----------- -----------
TOTAL BONDS $ 700,000 685,157 298,375
CONVERTIBLE BONDS - 2.46%
Commscope, Inc. 4.000 12/15/06 $ 250,000 250,000 212,712
Echostar Communications, Inc. 4.875 01/01/07 400,000 400,000 375,924
First American Financial Company 4.500 04/15/08 220,000 220,000 217,518
Home Depot Exchangeable Trust 1.000 02/14/06 1,315,000 1,162,953 1,185,144
Hyperion Solutions Corp. 4.500 03/15/05 200,000 200,000 161,188
Sanmina Corporation 0.000 09/12/20 2,300,000 957,375 833,244
Telewest Finance 6.000 07/07/05 405,000 280,462 287,432
Triquint Semiconductor, Inc. 4.000 03/01/07 225,000 168,442 158,062
Viropharma, Inc. 6.000 03/01/07 215,000 147,282 112,606
Vitesse Semiconductor Corp. 4.000 03/15/05 1,215,000 908,500 987,151
----------- ----------- -----------
TOTAL CONVERTIBLE BONDS $ 6,745,000 4,695,014 4,530,981
CONVERTIBLE PREFERRED STOCK - 0.54%
D T Industries, Inc. (B) 40,000 2,000,000 1,000,000
----------- -----------
TOTAL CONVERTIBLE PREFERRED STOCK 2,000,000 1,000,000
----------- -----------
COMMON STOCK - 0.00%
Jordan Telecom Products (B) 70 14,000 1,400
----------- -----------
TOTAL COMMON STOCK 14,000 1,400
----------- -----------
WARRANTS - 0.02%
Winsloew Escrow Corporation (B) 900 9 45,000
----------- -----------
TOTAL WARRANTS 9 45,000
----------- -----------
TOTAL RULE 144A SECURITIES 7,394,180 5,875,756
----------- -----------
TOTAL CORPORATE RESTRICTED SECURITIES 200,768,667 168,613,735
----------- -----------
--------------------------------------------------------------------------------
23
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares or
Interest Due Principal Cost Fair Value
CORPORATE PUBLIC SECURITIES - 11.05%: (A) Rate Date Amount (Note 2B) at 6/30/01
-------- -------- ----------- ----------- -----------
BONDS - 2.79%
360 Networks, Inc. 12.000% 08/01/09 $ 1,200,000 $ 885,000 $ 15,000
Central Tractor 10.625 04/01/07 600,000 586,500 30,000
Derby Cycle Corp. 10.000 05/15/08 460,000 460,000 184,000
EV International, Inc. 11.000 03/15/07 750,000 450,000 277,500
GFSI, Inc. 9.625 03/01/07 145,000 121,289 110,200
Haynes International, Inc. 11.625 09/01/04 640,000 577,000 342,400
LLS Corp. 11.625 08/01/09 500,000 445,000 375,000
MCMS, Inc. 9.750 03/01/08 600,000 600,000 90,000
Neff Corp. 10.250 06/01/08 230,000 227,688 126,500
Numatics, Inc. 9.625 04/01/08 820,000 788,748 516,600
Remington Products Co. 11.000 05/15/06 600,000 595,506 583,500
Sports Club Co. 11.375 03/15/06 600,000 582,000 540,000
United Refining Co. 10.750 06/15/07 1,365,000 1,365,000 1,037,400
Winsloew Escrow Corp. 12.750 08/15/07 900,000 879,472 834,750
Woods Equipment Co., Inc. 12.000 07/15/09 800,000 800,000 80,000
----------- ----------- -----------
TOTAL BONDS $10,210,000 9,363,203 5,142,850
=========== =========== ===========
COMMON STOCK - 3.83%
American Country Holdings Inc. (B) 101,397 760,886 197,724
Budget Group, Inc. (B) 95,456 1,996,621 229,094
Computer Horizons Corp. (B) 32,068 301,942 99,731
Convera Corp. (B) 38,950 1,427,283 194,750
Dreamlife, Inc. (B) 73,125 813,719 69,469
Florist Transworld Delivery, Inc. (B) 29,374 41,258 212,961
HCI Direct, Inc. (B) 1,000 -- --
Kraft Foods Inc. (B) 42,550 1,319,050 1,319,050
Mediacom Communications (B) 22,750 346,255 318,500
PepsiAmericas, Inc. 92,145 2,006,365 1,225,529
Proton Energy Systems, Inc. (B) 26,000 328,859 312,000
Rent-Way, Inc. (B) 60,363 600,009 657,957
Swiss Army Brands, Inc. (B) 39,000 393,825 261,300
Titan Corporation (B) 58,052 173,221 1,329,391
Tycom LTD (B) 32,500 1,040,000 559,000
Vina Technologies, Inc. 572 1,687 801
Willis Group Holdings Limited 3,800 51,300 67,450
----------- -----------
TOTAL COMMON STOCK 11,602,280 7,054,707
----------- -----------
--------------------------------------------------------------------------------
24
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
Shares or
Interest Due Principal Fair Value
CORPORATE PUBLIC SECURITIES (A) (Continued) Rate Date Amount Cost at 6/30/01
-------- -------- ----------- ----------- -----------
CONVERTIBLE BONDS - 4.42%
Charter Communications, Inc. 4.750% 06/01/06 $ 660,000 $ 660,000 $ 697,125
Commscope, Inc. 4.000 12/15/06 105,000 90,694 89,339
Corning, Inc. 0.000 11/08/15 795,000 589,829 448,833
Cox Communications, Inc. 0.426 04/19/20 3,260,000 1,320,923 1,348,825
Cypress Semiconductor Corp. 4.000 02/01/05 210,000 210,000 190,166
Echostar Communications 4.875 01/01/07 1,000,000 805,000 939,810
Hyperion Solutions, Inc. 4.500 03/15/05 50,000 35,500 40,297
ITC/Deltacom, Inc. 4.500 05/15/06 870,000 421,950 412,162
Kellstorm Industries, Inc. 5.500 06/15/03 975,000 833,150 245,125
Mediacom Communications 5.250 07/01/06 1,400,000 1,400,000 1,566,110
Nextel Communications 5.250 01/15/01 1,425,000 1,052,625 816,625
SCI Systems, Inc. 3.000 03/15/07 800,000 727,037 636,128
Sanmina Corp. 0.000 09/12/20 2,000,000 714,914 724,560
----------- ----------- -----------
TOTAL CONVERTIBLE BONDS $13,550,000 8,861,622 8,155,105
=========== =========== ===========
WARRANTS - 0.01%
American Country Holdings, Inc. (B) 183,117 45,779 23,805
----------- -----------
TOTAL WARRANTS 45,779 23,805
----------- -----------
TOTAL CORPORATE PUBLIC SECURITIES 29,872,884 20,376,467
----------- -----------
Interest Due Principal Fair Value
SHORT-TERM SECURITIES Rate/Yield Date Amount Cost at 6/30/01
-------- -------- ----------- ----------- -----------
COMMERCIAL PAPER - 0.52%
V F Corporation 4.200% 07/02/01 $ 965,000 $ 964,887 $ 964,887
----------- ------------ ------------
TOTAL SHORT-TERM SECURITIES $ 965,000 964,887 964,887
=========== ============ ============
TOTAL INVESTMENTS 102.98% $231,606,438 $189,955,089
============ ============
Other Assets 8.70 16,045,154
Liabilities (11.68) (21,544,374)
------ ------------
TOTAL NET ASSETS 100.00% $184,455,869
====== ============
(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.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
25
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 2001
(Unaudited)
INDUSTRY CLASSIFICATION
CORPORATE RESTRICTED SECURITIES: FAIR VALUE
AT 6/30/01
-------------
AUTOMOBILE - 3.79%
America's Body Co./LCP Holding Co. $ 3,468,456
LIH Investors, L.P. 3,520,769
-------------
6,989,225
-------------
BEVERAGE, FOOD &
TOBACCO - 2.59%
Beta Brands, Inc. 1,917,059
Cains Foods, L.P. 823,469
Premium Foods Group 2,040,140
-------------
4,780,668
-------------
BROADCASTING &
ENTERTAINMENT - 0.20%
Echostar Communications, Inc. 375,924
-------------
BUILDINGS & REAL ESTATE - 7.42%
Adorn, Inc. 2,108,569
PGT Industries, Inc. 2,022,026
Strategic Equipment & Supply Partners, Inc 3,783,892
Supreme Industries, Inc. 440,211
Therma-Tru Corporation 1,937,988
Truseal Technologies, Inc. 3,392,556
-------------
13,685,242
-------------
CARGO TRANSPORT - 1.71%
Kenan Advantage Group, Inc. 2,036,769
Tidewater Holdings, Inc. 1,115,632
-------------
3,152,401
-------------
CHEMICAL, PLASTICS &
RUBBER - 3.39%
Process Chemicals, LLC 2,508,323
RK Polymers, LLC 2,066,352
Trend Technologies, Inc. 490,446
U.S. Netting, Inc. 1,181,545
-------------
6,246,666
-------------
CONSUMER PRODUCTS - 9.77%
Alpha Shirt Company 3,923,644
Colibri Holdings Corporation 1,949,797
Consumer Product Enterprises, Inc. 839,623
Corvest Promotional Products, Inc. 4,035,407
G C-Sun Holdings, LP 1,797,194
Keepsake Quilting, Inc. 2,188,252
The Tranzonic Companies 3,285,513
-------------
18,019,430
-------------
CORPORATE RESTRICTED SECURITIES: (CONT.) FAIR VALUE
AT 6/30/01
-------------
CONTAINERS, PACKAGING &
GLASS - 5.64%
C & K Manufacturing and Sales Company $ 668,313
Capitol Specialty Plastics, Inc. 403
Fleming Acquisition Corporation 171,731
Plassein Packaging, Inc. 1,749,862
PPI Holdings Company 2,330,275
Snyder Industries, Inc. 3,116,880
Vitex Packaging, Inc. 2,373,344
-------------
10,410,808
-------------
DIVERSIFIED/CONGLOMERATE,
MANUFACTURING - 13.87%
D T Industries, Inc. 1,000,000
Evans Consoles, Inc. 3,122,326
Highgate Capital, LLC 700,000
Hussey Seating Company 2,424,601
Jackson Products, Inc. 921,848
Jason, Inc. 1,949,378
Maxtec International Corp. 669,209
NPC, Inc. 4,495,118
PAR Acquisition Corp. 1,334,666
PW Eagle, Inc. 4,793,958
Safety Speed Cut Manufacturing 4,174,185
-------------
25,585,289
-------------
DIVERSIFIED/CONGLOMERATE,
SERVICE - 9.34%
Diversco, Inc./DHI Holdings, Inc. 1,492,686
Examination Management Services, Inc. 3,959,404
Hamilton Funeral Services 2,377,111
Lancaster Laboratories, Inc. 2,081,348
Magnetic Data Technologies, Inc./
MDT Holdings LLC 2,095,708
Pharmaceutical Buyers, Inc. 956,107
SpectaGuard Acquisition LLC 2,121,840
Washington Inventory Services, Inc. 2,150,703
-------------
17,234,907
-------------
ELECTRONICS - 7.50%
Coining Operations of America 2,385,328
Commscope, Inc. 212,712
Directed Electronics, Inc. 4,201,293
Evolve Software, Inc. 735
Fairmarket, Inc. 371
Hyperion Solutions Corp. 161,188
iBEAM Broadcasting Corp., Inc. 2,360
Integration Technology Systems, Inc. 2,229,696
Precision Dynamics, Inc. 3,354,431
Sanmina Corporation 833,244
Tridex Corp. 300,000
Triquint Semiconductor, Inc. 158,062
-------------
13,839,420
-------------
--------------------------------------------------------------------------------
26
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
INDUSTRY CLASSIFICATION (CONTINUED)
CORPORATE RESTRICTED SECURITIES: (CONT.) FAIR VALUE
AT 6/30/01
-------------
FARMING & AGRICULTURE - 1.34%
Cuddy International Corp. $ 231,000
Polymer Technologies, Inc./Poli-Twine
Western, Inc. 1,946,993
Protein Genetics, Inc. 290,163
-------------
2,468,156
-------------
FINANCE - 0.27%
First American Financial Corp. 217,518
Telewest Finance 287,432
-------------
504,950
-------------
HEALTHCARE, EDUCATION &
CHILDCARE - 4.35%
DHD Healthcare, Inc. 2,058,910
Enzymatic Therapy, Inc. 2,021,518
Nexell Therapeutics 3,835,549
Viropharma, Inc. 112,606
-------------
8,028,583
-------------
HOME & OFFICE FURNISHINGS,
HOUSEWARES, AND DURABLE
CONSUMER PRODUCTS - 5.60%
Fasteners for Retail, Inc. 4,276,006
Moss, Inc. 2,009,924
Star International Holdings, Inc. 4,046,080
-------------
10,332,010
-------------
LEISURE, AMUSEMENT,
ENTERTAINMENT - 4.41%
Adventure Entertainment Corporation 249,643
Grand Expeditions, Inc. 2,029,900
Merit Industries, Inc. 1,768,965
Olympic Boat Centers, Inc. 4,087,862
-------------
8,136,370
-------------
MINING, STEEL, IRON & NON
PRECIOUS METALS - 1.18%
Better Minerals & Aggregates 2,173,968
-------------
CORPORATE RESTRICTED SECURITIES: (CONT.) FAIR VALUE
AT 6/30/01
-------------
MISCELLANEOUS - 2.26%
CapeSuccess LLC $ 105,196
Climachem, Inc. 67,375
East River Ventures LP 28,972
Immedient Corporation 33,932
USFlow Corporation 3,878,009
Victory Ventures, LLC 2
Winsloew Escrow Corporation 45,000
-------------
4,158,486
-------------
OIL AND GAS - 0.94%
Chaparral Resources, Inc. 295
Golden Bear Oil Specialties --
TransMontaigne Oil Company 1,739,961
-------------
1,740,256
-------------
PERSONAL TRANSPORTATION - 2.05%
Tronair, Inc. 3,771,695
RETAIL STORES - 1.86%
Home Depot Exchangeable Trust 1,185,144
Rent-Way, Inc. 27,090
TVI, Inc. 2,219,778
-------------
3,432,012
-------------
TELECOMMUNICATIONS - 0.54%
Jordan Telecom Products 1,400
Vitesse Semiconductor Corp. 987,151
-------------
988,551
-------------
TEXTILES - 1.39%
Kappler Safety Group, Inc. 2,558,718
-------------
TOTAL CORPORATE RESTRICTED
SECURITIES - 91.41% $ 168,613,735
=============
--------------------------------------------------------------------------------
27
NOTES TOFINANCIAL STATEMENTS MASSMUTUAL CORPORATE INVESTORS
(Unaudited)
1. HISTORY
MassMutual Corporate Investors (the "Trust") is a closed-end, non-diversified
investment company. David L. Babson & Company Inc. ("Babson") acts as its
investment adviser.
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 organized as a Massachusetts business trust under
the laws of the Commonwealth of Massachusetts, effective November 28, 1985.
On January 27, 1998, the Board of Trustees authorized the formation of a
wholly-owned subsidiary ("MMCI Subsidiary Trust") for the purpose of holding
certain investments. The results of MMCI Subsidiary Trust have been consolidated
in the accompanying financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
consistently by the Trust in the preparation of the financial statements in
conformity with accounting principles generally accepted in the United States.
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 directly negotiated
transaction to a limited number of purchasers or in a public offering for which
a registration statement is in effect under the Securities Act of 1933.
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 Board of Trustees of the Trust (the "Trustees"). Each restricted security is
valued by the Trustees at the time of the acquisition thereof and at least
quarterly thereafter. The Trustees have established guidelines to aid in the
valuation of each security. Generally, restricted securities are initially
valued at cost at the time of acquisition by the Trust. Values greater or less
than cost are used thereafter for restricted securities in appropriate
circumstances. Among the factors ordinarily considered are the existence of
restrictions upon the sale of the security by the Trust; an estimate of the
existence and extent of a market for the security; the extent of any discount at
which the security was acquired; the estimated period of time during which the
security will not be freely marketable; the estimated expenses of registering or
otherwise qualifying the security for public sale; estimated underwriting
commissions if underwriting would be required to effect a sale; in the case of a
convertible security, whether or not it would trade on the basis of its stock
equivalent; in the case of a debt obligation which would trade independently of
any equity equivalent, the current yields on comparable securities; the
estimated amount of the floating supply of such securities available; 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. 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.
--------------------------------------------------------------------------------
28
NOTES TO FINANCIAL STATEMENTS (CONTINUED) MASSMUTUAL CORPORATE INVESTORS
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 Securities Act of 1933 and
any other developments which are likely to increase the probability that the
securities may be publicly sold by the Trust without restriction.
The Board of Trustees of the Trust meets at least once in each quarter to value
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 (otherwise than as Trustees) or of
Babson. In making valuations, the Trustees will consider reports by Babson
analyzing each portfolio security in accordance with the relevant factors
referred to above. Babson has agreed to provide such reports to the Trust at
least quarterly.
The financial statements include restricted securities valued at $168,613,735
(91.41% of net assets) as of June 30, 2001 ($192,661,176 at June 30, 2000) whose
values have been estimated by the Board of 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 corporate public securities are stated at the last reported sales
price or at prices based upon quotations obtained from brokers and dealers as of
June 30, 2001, subject to discount where appropriate, and are approved by the
Trustees.
Short-term securities with more than sixty days to maturity are valued at fair
value and short-term securities having a maturity of sixty days or less are
valued at amortized cost which approximates market value.
B. ACCOUNTING FOR INVESTMENTS:
Investment transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis.
The cost basis of debt securities is not adjusted for amortization of premium
since the Trust does not generally intend to hold such investments until
maturity; however, the Trust has elected to accrue, for financial reporting
purposes, certain discounts which are required to be accrued for federal income
tax purposes.
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.
The Trust does not accrue income when payment is delinquent and when management
believes payment is questionable.
C. USE OF ESTIMATES:
The preparation of financial statements in conformity with generally accepted
accounting principles 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.
--------------------------------------------------------------------------------
29
NOTES TO FINANCIAL STATEMENTS (CONTINUED) MASSMUTUAL CORPORATE INVESTORS
D. FEDERAL INCOME TAXES:
No provision for federal taxes on net investment income and short-term capital
gains is considered necessary because the Trust has elected to be taxed as a
"regulated investment company" under the Internal Revenue Code, and intends to
maintain this qualification and to distribute substantially all of its net
taxable income to its shareholders. In any year when net long-term capital gains
are realized by the Trust, management, after evaluating the prevailing economic
conditions, will recommend to the Trustees either to designate the net realized
long-term gains as undistributed and to pay the federal capital gains taxes
thereon or to distribute all or a portion of such net gains.
3. MANAGEMENT FEE
Under an investment services contract, Babson has agreed to invest for
MassMutual Life Insurance Company's ("MassMutual") general account concurrently
with the Trust in each restricted security purchased by the Trust. Babson, in
addition to originating and sharing in the purchase of such securities,
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. Babson provides a continuing review of the investment
operations of the Trust. Babson also provides the Trust with office space and
office equipment, safekeeping facilities, accounting and bookkeeping services,
and necessary executive, clerical and secretarial personnel for the performance
of the foregoing services.
Under the investment services contract, as amended July 1, 1988, the Trust pays
Babson a quarterly base rate (the "Base Fee Rate") of 5/16 of 1% of the value of
the Trust's net assets as of the end of each fiscal quarter, approximately
equivalent to 1.25% of the net asset value of the Trust on an annual basis, plus
or minus a quarterly performance adjustment (the "Performance Adjustment") of up
to 1/16 of 1% approximately equivalent to .25% on an annual basis. The
Performance Adjustment is based on the Trust's performance as compared to a
benchmark rate of return (the "Target Rate") equal to 5.0 percentage points plus
an unweighted, arithmetic average of the rates of return on the Standard &
Poor's Industrial Stock Price Index and the Lehman Brothers Intermediate
Corporate Bond Index over a rolling three-year period (the "Measurement Period")
comprising the twelve quarters ending on the last day of each quarter (the
"Valuation Date"). The Performance Adjustment is equal to 5% of the difference
between the Trust's actual rate of return over the Measurement Period and the
Target Rate. If the Trust's actual rate of return exceeds the Target Rate, the
Base Fee Rate is increased by an amount equal to the Performance Adjustment; if
the Trust's actual rate of return is less than the Target Rate, the Base Fee
Rate is reduced by the Performance Adjustment. The advisory fee payable by the
Trust is equal to the Base Fee Rate (as adjusted by the Performance Adjustment)
times the net asset value of the Trust as of the Valuation Date. The Performance
Adjustment for the quarters ended March 31 and June 30, 2001 was:
PERFORMANCE
ADJUSTMENT AMOUNT
---------- ------
March 31, 2001 0.0625% $113,989
June 30, 2001 0.0625% $115,719
--------------------------------------------------------------------------------
30
NOTES TO FINANCIAL STATEMENTS (CONTINUED) MASSMUTUAL CORPORATE INVESTORS
4. SENIOR SECURED INDEBTEDNESS
A. NOTE PAYABLE
On November 5, 1993, the Trust sold to MassMutual at par a $20,000,000 Senior
Fixed Rate Convertible Note due November 15, 2000 (the "Note") which accrues at
5.33% per annum. The Note holder, 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.
In agreement with MassMutual, the Note's maturity has been extended for an
additional seven years from November 15, 2000. The Note is due November 15, 2007
and will accrue at 7.39% per annum. For each of the periods ended June 30, 2001
and 2000, the Trust incurred total interest expense on the Note of $739,000 and
$533,000, respectively.
B. REVOLVING CREDIT AGREEMENT
The Trust entered into a Revolving Credit Agreement with Fleet National Bank as
of June 29, 2000, in the principal amount of $25,000,000, maturing on May 31,
2005. The interest rate on the outstanding revolving loan is determined for
periods of one, three or six months (as selected by the Trust) and is set at an
annual rate equal to LIBOR (London Interbank Offered Rate) plus 0.37%. The Trust
also agreed to pay an up-front fee equal to 0.10% on the total commitment. The
facility fee is 0.15% per annum of the total commitment.
As of June 30, 2001 and 2001, there were no outstanding loans drawn against the
revolving credit facility. For the period ended June 30, 2001 and 2000, the
Trust incurred $18,596 and $0 in expense related to the undrawn portion.
5. PURCHASES AND SALES OF INVESTMENTS
FOR THE FOR THE
SIX MONTHS SIX MONTHS
ENDED 6/30/2001 ENDED 6/30/2000
------------ ------------
COST OF INVESTMENTS ACQUIRED
-----------------------------------
Corporate restricted securities $ 15,248,269 $ 58,387,854
Corporate public securities 8,829,406 19,899,783
Short-term securities 294,515,627 315,506,911
PROCEEDS FROM SALES OR MATURITIES
-----------------------------------
Corporate restricted securities $ 25,544,763 $ 55,997,040
Corporate public securities 10,029,326 32,415,884
Short-term securities 300,673,049 321,904,249
The aggregate cost of investments was the same for financial reporting and
federal income tax purposes as of June 30, 2001. The net unrealized depreciation
of investments for financial reporting and federal tax purposes as of June 30,
2001 is $41,651,349 and consists of $15,026,434 appreciation and $56,677,783
depreciation.
The aggregate cost of investments was the same for financial reporting and
federal income tax purposes as of June 30, 2000. The net unrealized depreciation
of investments for financial reporting and federal tax purposes as of June 30,
2000 is $14,337,232 and consists of $23,441,407 appreciation and $37,778,639
depreciation.
--------------------------------------------------------------------------------
31
NOTES TO FINANCIAL STATEMENTS (CONTINUED) MASSMUTUAL CORPORATE INVESTORS
6. Quarterly Results of Investment Operations
PER PER
AMOUNT SHARE AMOUNT SHARE
------ ----- ------ -----
MARCH 31, 2001 MARCH 31, 2000
-------------- --------------
Investment income $ 4,901,147 $ 4,958,909
Net investment income 3,729,498 $ 0.43 4,063,971 $ 0.47
Net realized and unrealized
gain (loss)on investments (1,686,474) (0.18) 11,553,274 1.35
JUNE 30, 2001 JUNE 30, 2000
------------- -------------
Investment income 5,051,877 5,365,267
Net investment income 3,844,565 0.44 4,211,896 0.49
Net realized and unrealized
gain on investments 2,449,657 0.29 6,468,569 0.76
--------------------------------------------------------------------------------
32
TRUSTEES OFFICERS
Donald E. Benson* Stuart H. Reese, Chairman
Milton Cooper Richard G. Dooley, Vice Chairman
Richard G. Dooley Robert E. Joyal, President
Donald Glickman Charles C. McCobb, Jr., Vice President &
Martin T. Hart* Chief Financial
Jack A. Laughery Officer
Corine T. Norgaard* Stephen L. Kuhn, Vice President &
Stuart H. Reese Secretary
Michael P. Hermsen, Vice President
Mary Wilson Kibbe, Vice President
Michael L. Klofas, Vice President
Richard C. Morrison, Vice President
Clifford M. Noreen, Vice President
Mark B. Ackerman, Treasurer
John P. Davitt, Jr., Comptroller
*Member of the Audit Committee
DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN
MassMutual Corporate Investors offers a Dividend Reinvestment and Share Purchase
Plan. The Plan provides a simple way for shareholders to add to their holdings
in the Trust through the receipt of dividend shares issued by the Trust or
through the reinvestment of cash dividends in Trust shares purchased in the open
market. A shareholder may join the Plan by filling out and mailing an
authorization card to Shareholder Financial Services, Inc., the Transfer Agent.
Participating shareholders will continue to participate until they notify the
Transfer Agent, in writing, of their desire to terminate participation. Unless a
shareholder elects to participate in the Plan, he or she will, in effect, have
elected to receive dividends and distributions in cash.
Participating shareholders may also make additional contributions to the Plan
from their own funds. Such contributions may be made by personal check or other
means in an amount not less than $10 nor more than $5,000 per quarter.
Whenever the Trust declares a dividend payable in cash or shares, the Transfer
Agent, acting on behalf of each participating shareholder, will take the
dividend in shares only if the net asset value is lower than the market price
plus an estimated brokerage commission as of the close of business on the
valuation day. The valuation day is the last day preceding the day of dividend
payment. When the dividend is to be taken in shares, the number of shares to be
received is determined by dividing the cash dividend by the net asset value as
of the close of business on the valuation date or, if greater than net asset
value, 95% of the closing share price. If the net asset value of the shares is
higher than the market value plus an estimated commission, the Transfer Agent,
consistent with obtaining the best price and execution, will buy shares on the
open market at current prices promptly after the dividend payment date.
The reinvestment of dividends does not, in any way, relieve participating
shareholders of any federal, state or local tax. For federal income tax
purposes, the amount reportable in respect of a dividend received in
newly-issued shares of the Trust will be the fair market value of the shares
received, which will be reportable as ordinary income and/or capital gains.
As compensation for its services, the Transfer Agent receives a fee of 5% of any
dividend and cash contribution (in no event in excess of $2.50 per distribution
per shareholder.)
Any questions regarding the Plan should be addressed to Shareholder Financial
Services, Inc., Agent for MassMutual Corporate Investors' Dividend Reinvestment
and Share Purchase Plan, P.O. Box 173673, Denver CO 80217-3673.