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 |
811-08985 | |||||||
|
| ||||||||
|
LMP Corporate Loan Fund Inc. | ||||||||
|
(Exact name of registrant as specified in charter) | ||||||||
|
| ||||||||
|
620 Eighth Avenue, 49th Floor, New York, NY |
|
10018 | ||||||
|
(Address of principal executive offices) |
|
(Zip code) | ||||||
|
| ||||||||
|
Robert I. Frenkel, Esq. Legg Mason & Co., LLC 100 First Stamford Place Stamford, CT 06902 | ||||||||
|
(Name and address of agent for service) | ||||||||
|
| ||||||||
|
Registrant’s telephone number, including area code: |
(888)777-0102 |
| ||||||
|
| ||||||||
|
Date of fiscal year end: |
September 30 |
| ||||||
|
| ||||||||
|
Date of reporting period: |
June 30, 2013 |
| ||||||
ITEM 1. SCHEDULE OF INVESTMENTS.
LMP Corporate Loan Fund Inc. (TLI)
FORM N-Q
June 30, 2013
LMP CORPORATE LOAN FUND INC.
Schedule of investments (unaudited)
June 30, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
SENIOR LOANS (a) — 142.1% |
|
|
|
|
|
|
|
|
| ||
|
Basic Industry — 8.3% |
|
|
|
|
|
|
|
|
| ||
|
Alpha Natural Resources LLC, Term Loan B |
|
3.500 - 5.000% |
|
5/22/20 |
|
$ |
710,000 |
|
$ |
688,256 |
|
|
Arch Coal Inc., Term Loan B |
|
5.750% |
|
5/16/18 |
|
1,117,180 |
|
1,113,340 |
| ||
|
Atlas Iron Ltd., Term Loan B |
|
8.750% |
|
12/7/17 |
|
1,492,500 |
|
1,473,844 |
| ||
|
Constellium Holdco B.V., New Term Loan B |
|
6.000% |
|
3/25/20 |
|
957,600 |
|
983,934 |
| ||
|
Eagle Spinco Inc., Term Loan 2 |
|
2.695% |
|
1/27/17 |
|
139,024 |
|
140,761 |
| ||
|
Essar Steel Algoma Inc., ABL Term Loan |
|
— |
|
9/19/14 |
|
1,000,000 |
|
1,016,667 |
(b) | ||
|
Expera Specialty Solutions LLC, Term Loan B |
|
— |
|
12/21/18 |
|
300,000 |
|
297,750 |
(b) | ||
|
FMG America Finance Inc., Term Loan |
|
5.250% |
|
10/18/17 |
|
1,984,987 |
|
1,976,855 |
| ||
|
SunCoke Energy Inc., Term Loan B |
|
4.000% |
|
7/26/18 |
|
343,814 |
|
342,955 |
| ||
|
Univar Inc., Term Loan B |
|
5.000% |
|
6/30/17 |
|
1,492,373 |
|
1,463,225 |
| ||
|
Walter Energy Inc., Term Loan B |
|
5.750% |
|
4/2/18 |
|
1,079,495 |
|
1,063,603 |
| ||
|
Total Basic Industry |
|
|
|
|
|
|
|
10,561,190 |
| ||
|
Capital Goods — 6.3% |
|
|
|
|
|
|
|
|
| ||
|
ABC Supply Co. Inc., Term Loan |
|
3.500% |
|
4/16/20 |
|
520,000 |
|
517,214 |
| ||
|
ADS Waste Holdings Inc., New Term Loan B |
|
4.250% |
|
10/9/19 |
|
1,393,000 |
|
1,390,388 |
| ||
|
BakerCorp International Inc., New Term Loan |
|
4.250% |
|
2/14/20 |
|
1,405,061 |
|
1,399,207 |
| ||
|
Clondalkin Acquisitions BV, Term Loan B |
|
5.750% |
|
5/29/20 |
|
240,000 |
|
240,600 |
| ||
|
Reynolds Group Holdings Inc., New Dollar Term Loan |
|
4.750% |
|
9/28/18 |
|
1,379,991 |
|
1,385,453 |
| ||
|
Waste Industries U.S.A. Inc., Term Loan B |
|
4.000% |
|
3/17/17 |
|
1,565,796 |
|
1,566,774 |
| ||
|
WP CPP Holdings LLC, First Lien Term Loan |
|
4.750% |
|
12/27/19 |
|
737,046 |
|
747,181 |
| ||
|
WP CPP Holdings LLC, Second Lien Term Loan |
|
10.500% |
|
6/29/20 |
|
750,000 |
|
776,250 |
| ||
|
Total Capital Goods |
|
|
|
|
|
|
|
8,023,067 |
| ||
|
Communications — 17.6% |
|
|
|
|
|
|
|
|
| ||
|
Alaska Communications Systems Holdings Inc., USD Term Loan B |
|
6.000% |
|
10/21/16 |
|
1,560,227 |
|
1,539,242 |
| ||
|
Ancestry.com Inc., Term Loan |
|
5.250% |
|
12/28/18 |
|
655,959 |
|
655,467 |
| ||
|
Charter Communications Operating LLC, Term Loan E |
|
— |
|
4/10/20 |
|
1,380,000 |
|
1,370,190 |
(b) | ||
|
Cricket Communications Inc., Term Loan C |
|
4.750% |
|
3/9/20 |
|
1,300,000 |
|
1,290,520 |
| ||
|
Crown Castle International Corp., New Term Loan |
|
3.250% |
|
1/31/19 |
|
311,681 |
|
311,356 |
| ||
|
CSC Holdings Inc., New Term Loan B |
|
2.695% |
|
4/17/20 |
|
750,000 |
|
743,438 |
| ||
|
Entercom Radio LLC, Term Loan B |
|
5.000 - 6.000% |
|
11/23/18 |
|
691,403 |
|
699,469 |
| ||
|
Getty Images Inc., Term Loan B |
|
4.750% |
|
10/18/19 |
|
1,492,500 |
|
1,480,747 |
| ||
|
Kabel Deutschland GMBH, USD Term Loan F1 |
|
3.250% |
|
2/1/19 |
|
1,000,000 |
|
999,500 |
| ||
|
Lamar Media Corp., Term Loan B |
|
4.000% |
|
12/30/16 |
|
64,860 |
|
65,266 |
| ||
|
Level 3 Financing Inc., 2019 Term Loan B |
|
5.250% |
|
8/1/19 |
|
1,000,000 |
|
1,002,083 |
| ||
|
McGraw-Hill Global Education Holdings LLC, Term Loan |
|
9.000% |
|
3/22/19 |
|
1,246,875 |
|
1,231,601 |
| ||
|
NEP Supershooters LP, New Term Loan |
|
4.750% |
|
1/18/20 |
|
1,004,950 |
|
1,011,546 |
| ||
|
Nine Entertainmant Group Ltd., Term Loan B |
|
3.500% |
|
2/5/20 |
|
750,000 |
|
748,438 |
| ||
|
NTELOS Inc., New Term Loan B |
|
5.750% |
|
11/8/19 |
|
1,542,250 |
|
1,531,326 |
| ||
|
Sinclair Television Group Inc., New Term Loan B |
|
3.000% |
|
4/9/20 |
|
428,925 |
|
429,863 |
| ||
|
Southern Graphics Inc., Term Loan |
|
5.000% |
|
10/17/19 |
|
1,394,895 |
|
1,400,126 |
| ||
|
Telesat LLC, Term Loan B |
|
3.500% |
|
3/28/19 |
|
1,344,732 |
|
1,346,833 |
| ||
|
Univision Communications Inc., Converted Extended Term Loan |
|
4.500% |
|
3/2/20 |
|
541,311 |
|
537,348 |
| ||
|
Univision Communications Inc., Term Loan C3 |
|
4.000% |
|
3/2/20 |
|
1,955,100 |
|
1,921,934 |
| ||
|
UPC Financing Partnership, USD Term Loan AH |
|
3.250% |
|
6/30/21 |
|
1,000,000 |
|
996,563 |
| ||
|
Village Roadshow Films (BVI) Ltd., Term Loan B |
|
4.750% |
|
11/21/17 |
|
180,000 |
|
184,608 |
| ||
|
Weather Channel, REFI Term Loan B |
|
3.500% |
|
2/13/17 |
|
749,257 |
|
751,833 |
| ||
|
Windstream Corp., Term Loan B4 |
|
3.500% |
|
1/23/20 |
|
299,250 |
|
300,060 |
| ||
|
Total Communications |
|
|
|
|
|
|
|
22,549,357 |
| ||
See Notes to Schedule of Investments.
LMP CORPORATE LOAN FUND INC.
Schedule of investments (unaudited) (cont’d)
June 30, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Consumer Cyclical — 27.5% |
|
|
|
|
|
|
|
|
| ||
|
Advantage Sales & Marketing Inc., New First Lien Term Loan |
|
4.250% |
|
12/18/17 |
|
$ |
945,982 |
|
$ |
948,150 |
|
|
Ameristar Casinos Inc., Term Loan B |
|
4.000% |
|
4/16/18 |
|
1,089,162 |
|
1,092,565 |
| ||
|
Aramark Corp., USD Term Loan D |
|
4.000% |
|
9/9/19 |
|
730,000 |
|
733,285 |
| ||
|
Autoparts Holdings Ltd., First Lien Term Loan |
|
6.500% |
|
7/28/17 |
|
192,897 |
|
190,486 |
| ||
|
Autoparts Holdings Ltd., Second Lien Term Loan |
|
10.500% |
|
1/29/18 |
|
900,000 |
|
875,250 |
| ||
|
Caesars Entertainment Operating Co., Extended Term Loan B6 |
|
5.443% |
|
1/26/18 |
|
2,197,583 |
|
1,946,783 |
| ||
|
Cannery Casino Resorts LLC, New Second Lien Term Loan |
|
10.000% |
|
10/2/19 |
|
500,000 |
|
478,750 |
| ||
|
Cannery Casino Resorts LLC, New Term Loan B |
|
6.000% |
|
10/2/18 |
|
248,125 |
|
248,590 |
| ||
|
CCM Merger Inc., New Term Loan B |
|
5.000% |
|
3/1/17 |
|
479,108 |
|
479,108 |
| ||
|
CKX Inc., Term Loan B |
|
9.000% |
|
6/21/17 |
|
300,000 |
|
271,500 |
| ||
|
Container Store Inc., New Term Loan B |
|
5.500% |
|
4/5/19 |
|
1,357,847 |
|
1,361,242 |
| ||
|
Crossmark Holdings Inc., New Term Loan |
|
4.500% |
|
12/20/19 |
|
517,400 |
|
516,430 |
| ||
|
Dunkin Brands Inc., Term Loan B3 |
|
3.750 - 5.000% |
|
2/14/20 |
|
771,233 |
|
770,690 |
| ||
|
Equinox Holdings Inc., First Lien Term Loan |
|
4.500 - 6.500% |
|
1/31/20 |
|
1,800,000 |
|
1,801,125 |
| ||
|
Four Seasons Holdings Inc., First Lien Term Loan |
|
— |
|
6/30/20 |
|
240,000 |
|
240,900 |
(b) | ||
|
Gymboree Corp., Initial Term Loan |
|
5.000% |
|
2/23/18 |
|
1,000,000 |
|
967,917 |
| ||
|
J. Crew Group Inc., Term Loan B1 |
|
4.000% |
|
3/7/18 |
|
1,496,183 |
|
1,491,196 |
| ||
|
Las Vegas Sands LLC, Extended Term Loan B |
|
— |
|
11/23/16 |
|
920,000 |
|
919,178 |
(b) | ||
|
Laureate Education Inc., Extended Term Loan |
|
5.250% |
|
6/18/18 |
|
1,375,490 |
|
1,376,350 |
| ||
|
Live Nation Entertainment Inc., Term Loan B |
|
4.500% |
|
11/7/16 |
|
989,796 |
|
997,417 |
| ||
|
MGM Resorts International, Term Loan B |
|
3.500% |
|
12/20/19 |
|
995,000 |
|
1,008,759 |
| ||
|
Michaels Stores Inc., New Term Loan |
|
3.750% |
|
1/28/20 |
|
1,090,000 |
|
1,088,070 |
| ||
|
Milk Specialties Co., New Term Loan B |
|
7.000% |
|
11/7/18 |
|
523,688 |
|
528,924 |
| ||
|
Monitronics International Inc., New Term Loan B |
|
4.250% |
|
3/23/18 |
|
994,984 |
|
999,337 |
| ||
|
Neiman Marcus Group Inc., Extended Term Loan |
|
4.000% |
|
5/16/18 |
|
1,570,000 |
|
1,566,934 |
| ||
|
Oceania Cruises Inc., Extended Term Loan B |
|
5.000% |
|
4/27/15 |
|
90,000 |
|
89,025 |
| ||
|
Oceania Cruises Inc., New Term Loan B |
|
— |
|
6/29/20 |
|
1,170,000 |
|
1,158,300 |
(b) | ||
|
OSI Restaurant Partners LLC, New Term Loan |
|
3.500% |
|
10/25/19 |
|
1,000,000 |
|
997,813 |
| ||
|
Peninsula Gaming LLC, Term Loan |
|
4.250% |
|
11/20/17 |
|
930,325 |
|
934,686 |
| ||
|
Peppermill Casinos Inc., Term Loan B |
|
7.250% |
|
10/17/19 |
|
995,000 |
|
1,011,791 |
| ||
|
Petco Animal Supplies Inc., New Term Loan |
|
4.000% |
|
11/24/17 |
|
997,442 |
|
998,845 |
| ||
|
Pilot Travel Centers LLC, Term Loan B2 |
|
4.250% |
|
8/7/19 |
|
992,500 |
|
981,025 |
| ||
|
Pinnacle Entertainment Inc., Series A Incremental Term Loan |
|
4.000% |
|
3/19/19 |
|
987,500 |
|
990,278 |
| ||
|
Realogy Corp., Extended Term Loan |
|
4.500% |
|
3/5/20 |
|
997,500 |
|
1,003,111 |
| ||
|
Regent Seven Seas Cruises Inc., REFI Term Loan B |
|
4.750% |
|
12/21/18 |
|
1,000,000 |
|
1,006,813 |
| ||
|
Schaeffler AG, USD Term Loan C |
|
4.250% |
|
1/27/17 |
|
880,000 |
|
882,200 |
| ||
|
Station Casinos Inc., New Term Loan B |
|
5.000% |
|
3/1/20 |
|
648,375 |
|
649,672 |
| ||
|
Wendy’s International Inc., New Term Loan B |
|
— |
|
5/15/19 |
|
1,560,000 |
|
1,558,538 |
(b) | ||
|
Total Consumer Cyclical |
|
|
|
|
|
|
|
35,161,033 |
| ||
|
Consumer Non-Cyclical — 40.3% |
|
|
|
|
|
|
|
|
| ||
|
AdvancePierre Foods Inc., Second Lien Term Loan |
|
9.500% |
|
10/10/17 |
|
1,160,000 |
|
1,185,134 |
| ||
|
Alvogen Pharma U.S. Inc., New Term Loan B |
|
7.000% |
|
5/15/18 |
|
1,000,000 |
|
992,500 |
| ||
|
Anchor Hocking LLC, New Term Loan |
|
7.500% |
|
5/6/20 |
|
1,610,000 |
|
1,622,075 |
| ||
|
Aptalis Pharma Inc., Term Loan B |
|
5.500% |
|
2/10/17 |
|
971,186 |
|
971,793 |
| ||
|
Bass Pro Group LLC, New Term Loan |
|
4.000% |
|
11/20/19 |
|
1,466,062 |
|
1,467,125 |
| ||
|
Bausch & Lomb Inc., Term Loan B |
|
4.000% |
|
5/17/19 |
|
1,243,742 |
|
1,255,108 |
| ||
|
Biomet Inc., Extended Term Loan B |
|
3.943 - 4.023% |
|
7/25/17 |
|
1,803,938 |
|
1,799,588 |
| ||
|
Capsugel Holdings U.S. Inc., New Term Loan B |
|
4.250% |
|
8/1/18 |
|
1,156,199 |
|
1,167,761 |
| ||
|
Catalent Pharma Solutions Inc., Dollar Term Loan B2 |
|
4.250% |
|
9/15/17 |
|
197,508 |
|
197,014 |
| ||
See Notes to Schedule of Investments.
LMP CORPORATE LOAN FUND INC.
Schedule of investments (unaudited) (cont’d)
June 30, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Consumer Non-Cyclical — continued |
|
|
|
|
|
|
|
|
|
|
|
|
Catalent Pharma Solutions Inc., Extended Term Loan B |
|
3.698% |
|
9/15/16 |
|
$ |
678,140 |
|
$ |
675,879 |
|
|
CRC Health Corp., Extended Term Loan |
|
4.695% |
|
11/16/15 |
|
987,592 |
|
990,061 |
| ||
|
Del Monte Foods Co., Term Loan |
|
4.000% |
|
3/8/18 |
|
1,025,565 |
|
1,023,531 |
| ||
|
DJO Finance LLC, Term Loan B3 |
|
4.750% |
|
9/15/17 |
|
1,033,217 |
|
1,042,258 |
| ||
|
Dole Food Co. Inc., New Term Loan |
|
3.750 - 5.000% |
|
4/1/20 |
|
498,125 |
|
496,983 |
| ||
|
Emergency Medical Services Corp., Term Loan |
|
4.000% |
|
5/25/18 |
|
1,211,772 |
|
1,211,339 |
| ||
|
FGI Operating Co. LLC, Term Loan |
|
5.500% |
|
4/19/19 |
|
997,482 |
|
1,001,223 |
| ||
|
General Nutrition Centers Inc., New Term Loan |
|
3.750% |
|
3/2/18 |
|
1,124,688 |
|
1,124,219 |
| ||
|
Grifols Inc., New Term Loan B |
|
4.250% |
|
6/1/17 |
|
1,829,662 |
|
1,841,587 |
| ||
|
H.J. Heinz Co., Term Loan B2 |
|
3.500% |
|
6/5/20 |
|
1,000,000 |
|
1,001,185 |
| ||
|
HCA Inc., Extended Term Loan B3 |
|
2.948% |
|
5/1/18 |
|
2,231,309 |
|
2,237,235 |
| ||
|
Healogics Inc., First Lien Term Loan |
|
5.250% |
|
2/5/19 |
|
149,625 |
|
150,654 |
| ||
|
Healogics Inc., Second Lien Term Loan |
|
9.250% |
|
2/5/20 |
|
500,000 |
|
511,875 |
| ||
|
Hostess Brands Inc., Term Loan |
|
6.750% |
|
3/6/20 |
|
1,100,000 |
|
1,120,625 |
| ||
|
Language Line LLC, New Term Loan B |
|
6.250% |
|
6/20/16 |
|
1,250,286 |
|
1,240,596 |
| ||
|
Merge Healthcare Inc., Term Loan B |
|
6.000% |
|
4/23/19 |
|
960,000 |
|
964,800 |
| ||
|
Michael Foods Group Inc., Term Loan |
|
4.250% |
|
2/23/18 |
|
1,780,794 |
|
1,800,086 |
| ||
|
Mill U.S. Acquisition LLC, First Lien Term Loan |
|
— |
|
5/22/20 |
|
1,030,000 |
|
1,025,494 |
(b) | ||
|
Mill U.S. Acquisition LLC, Second Lien Term Loan |
|
— |
|
5/21/21 |
|
330,000 |
|
328,350 |
(b) | ||
|
Par Pharmaceutical Cos. Inc., REFI Term Loan B |
|
4.250% |
|
9/30/19 |
|
1,990,000 |
|
1,980,938 |
| ||
|
Party City Holdings Inc., REFI Term Loan B |
|
4.250% |
|
7/29/19 |
|
1,352,026 |
|
1,350,759 |
| ||
|
Pharmaceutical Product Development Inc., New Term Loan B |
|
4.250% |
|
12/5/18 |
|
855,700 |
|
858,731 |
| ||
|
Quintiles Transnational Corp., New Term Loan B |
|
4.500% |
|
6/8/18 |
|
1,266,450 |
|
1,269,616 |
| ||
|
Radnet Management Inc., New Term Loan B |
|
4.250 - 5.500% |
|
10/10/18 |
|
840,000 |
|
841,575 |
| ||
|
Regionalcare Hospital Partners Inc., REFI Term Loan |
|
7.000% |
|
11/4/18 |
|
1,691,511 |
|
1,702,083 |
| ||
|
ServiceMaster Co., New Term Loan |
|
4.250% |
|
1/31/17 |
|
995,000 |
|
986,791 |
| ||
|
Sheridan Holdings Inc., New Second Lien Term Loan |
|
9.000% |
|
7/1/19 |
|
1,000,000 |
|
1,009,583 |
| ||
|
Sun Products Corp., New Term Loan |
|
5.500% |
|
3/23/20 |
|
638,400 |
|
632,548 |
| ||
|
Sun Products Corp., Second Lien Term Loan |
|
5.500% |
|
10/26/14 |
|
360,000 |
|
355,500 |
| ||
|
Supervalu Inc., New Term Loan B |
|
5.000% |
|
3/21/19 |
|
699,399 |
|
708,229 |
| ||
|
Tempur-Pedic International Inc., New Term Loan B |
|
3.500% |
|
12/12/19 |
|
853,822 |
|
866,540 |
| ||
|
Universal Health Services Inc., Term Loan B |
|
2.443% |
|
11/15/16 |
|
862,447 |
|
868,732 |
| ||
|
Valeant Pharmaceuticals International Inc., Series D Tranche B |
|
3.500% |
|
2/13/19 |
|
1,191,015 |
|
1,183,447 |
| ||
|
ValleyCrest Cos., LLC, New Term Loan |
|
5.500% |
|
6/13/19 |
|
1,230,000 |
|
1,229,616 |
| ||
|
Vanguard Health Holdings Co. II LLC, REFI Term Loan B |
|
3.750% |
|
1/29/16 |
|
495,274 |
|
497,874 |
| ||
|
Visant Holding Corp., Term Loan B |
|
5.250% |
|
12/22/16 |
|
1,489,587 |
|
1,426,546 |
| ||
|
Warner Chilcott Co. LLC, New Term Loan B2 |
|
4.250% |
|
3/15/18 |
|
90,478 |
|
90,693 |
| ||
|
Warner Chilcott Corp., Incremental Term Loan B1 |
|
4.250% |
|
3/15/18 |
|
292,881 |
|
293,577 |
| ||
|
Warner Chilcott Corp., New Term Loan B1 |
|
4.250% |
|
3/15/18 |
|
672,789 |
|
674,387 |
| ||
|
WC Luxco S.a.r.l., New Term Loan B3 |
|
4.250% |
|
3/15/18 |
|
530,169 |
|
531,429 |
| ||
|
WNA Holdings Inc., USD Second Lien Term Loan |
|
8.500% |
|
11/30/20 |
|
1,000,000 |
|
1,000,000 |
| ||
|
Wolverine Worldwide Inc., Term Loan B |
|
4.000% |
|
7/31/19 |
|
779,286 |
|
784,150 |
| ||
|
Total Consumer Non-Cyclical |
|
|
|
|
|
|
|
51,589,422 |
| ||
|
Electric — 5.1% |
|
|
|
|
|
|
|
|
| ||
|
Astoria Generating Co. Acquisitions LLC, New Term Loan |
|
8.500% |
|
10/26/17 |
|
1,000,000 |
|
1,034,167 |
| ||
|
Dynegy Holdings Inc., Term Loan B2 |
|
4.000% |
|
4/23/20 |
|
393,846 |
|
392,370 |
| ||
|
Equipower Resources Holdings LLC, Term Loan C |
|
— |
|
12/15/20 |
|
1,800,000 |
|
1,791,000 |
(b) | ||
|
La Frontera Generation LLC, Term Loan |
|
4.500% |
|
9/30/20 |
|
320,000 |
|
318,700 |
| ||
|
Star West Generation LLC, Term Loan B |
|
5.000% |
|
3/13/20 |
|
1,070,000 |
|
1,086,050 |
| ||
|
Topaz Power Holdings LLC, Term Loan |
|
5.250% |
|
2/26/20 |
|
1,495,000 |
|
1,502,708 |
| ||
See Notes to Schedule of Investments.
LMP CORPORATE LOAN FUND INC.
Schedule of investments (unaudited) (cont’d)
June 30, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Electric — continued |
|
|
|
|
|
|
|
|
|
|
|
|
Windsor Financing LLC, Term Loan B |
|
6.250% |
|
12/5/17 |
|
$ |
455,529 |
|
$ |
466,917 |
|
|
Total Electric |
|
|
|
|
|
|
|
6,591,912 |
| ||
|
Energy — 8.1% |
|
|
|
|
|
|
|
|
| ||
|
BBTS Borrower LP, Term Loan B |
|
8.750% |
|
5/31/19 |
|
1,000,000 |
|
998,125 |
| ||
|
EP Energy LLC, Term Loan B3 |
|
3.500% |
|
5/24/18 |
|
1,500,000 |
|
1,493,672 |
| ||
|
Frac Tech International LLC, Term Loan B |
|
8.500% |
|
5/6/16 |
|
1,000,000 |
|
967,857 |
| ||
|
GIM Channelview Cogeneration LLC, Term Loan B |
|
— |
|
5/4/20 |
|
340,000 |
|
342,833 |
(b) | ||
|
Pacific Drilling SA, Term Loan B |
|
4.500% |
|
6/4/18 |
|
1,000,000 |
|
997,875 |
| ||
|
Panda Temple Power II LLC, New Term Loan B |
|
7.250% |
|
4/3/19 |
|
250,000 |
|
255,000 |
| ||
|
Philadelphia Energy Solutions LLC, Term Loan B |
|
6.250% |
|
4/4/18 |
|
430,000 |
|
429,463 |
| ||
|
Quicksilver Resources Inc., New Second Lien Term Loan |
|
7.000% |
|
6/21/19 |
|
600,000 |
|
582,000 |
| ||
|
Rice Energy LLC, Second Lien Term Loan |
|
8.500% |
|
10/25/18 |
|
1,137,150 |
|
1,128,621 |
| ||
|
Samson Investment Co., Second Lien Term Loan |
|
6.000% |
|
9/25/18 |
|
1,000,000 |
|
1,000,000 |
| ||
|
Teine Energy Ltd., Second Lien Term Loan |
|
7.500% |
|
5/9/19 |
|
1,995,250 |
|
1,965,321 |
| ||
|
Tesoro Corp., Term Loan B |
|
2.523% |
|
1/29/16 |
|
160,000 |
|
160,248 |
| ||
|
Total Energy |
|
|
|
|
|
|
|
10,321,015 |
| ||
|
Financial Other — 3.8% |
|
|
|
|
|
|
|
|
| ||
|
Cunningham Lindsey U.S. Inc., First Lien Term Loan |
|
5.000% |
|
12/10/19 |
|
1,099,475 |
|
1,103,598 |
| ||
|
Cunningham Lindsey U.S. Inc., Second Lien Term Loan |
|
9.250% |
|
6/10/20 |
|
779,545 |
|
789,290 |
| ||
|
Flying Fortress Inc., First Lien Term Loan |
|
5.000% |
|
6/30/17 |
|
900,000 |
|
903,375 |
| ||
|
Wall Street Systems Inc., New Second Lien Term Loan |
|
9.250% |
|
4/24/20 |
|
2,000,000 |
|
2,030,000 |
| ||
|
Total Financial Other |
|
|
|
|
|
|
|
4,826,263 |
| ||
|
Industrial Other — 6.2% |
|
|
|
|
|
|
|
|
| ||
|
Allflex Holdings II Inc., New First Lien Term Loan |
|
— |
|
6/11/20 |
|
390,000 |
|
390,812 |
(b) | ||
|
Allflex Holdings II Inc., New Second Lien Term Loan |
|
— |
|
6/11/21 |
|
490,000 |
|
494,287 |
(b) | ||
|
Generac Power Systems Inc., New Term Loan B |
|
— |
|
5/29/20 |
|
1,500,000 |
|
1,491,094 |
(b) | ||
|
Intelligrated Inc., First Lien Term Loan |
|
4.500% |
|
7/30/18 |
|
488,769 |
|
489,380 |
| ||
|
JMC Steel Group Inc., Term Loan |
|
4.750% |
|
4/3/17 |
|
1,587,434 |
|
1,584,128 |
| ||
|
Lineage Logistics Holdings, LLC, Term Loan |
|
4.500% |
|
4/26/19 |
|
500,000 |
|
499,844 |
| ||
|
Mirror Bidco Ltd., Term Loan B |
|
— |
|
12/18/19 |
|
1,741,250 |
|
1,747,508 |
(b) | ||
|
Silver II U.S. Holdings LLC, Term Loan |
|
4.000% |
|
12/13/19 |
|
1,194,000 |
|
1,187,191 |
| ||
|
Total Industrial Other |
|
|
|
|
|
|
|
7,884,244 |
| ||
|
Insurance — 0.9% |
|
|
|
|
|
|
|
|
| ||
|
Multiplan Inc., New Term Loan B |
|
4.000% |
|
8/25/17 |
|
1,128,763 |
|
1,133,801 |
| ||
|
Natural Gas — 0.6% |
|
|
|
|
|
|
|
|
| ||
|
Energy Transfer Equity LP, New Term Loan B |
|
3.750% |
|
3/24/17 |
|
815,583 |
|
819,724 |
| ||
|
Technology — 11.5% |
|
|
|
|
|
|
|
|
| ||
|
Attachmate Corp., New First Lien Term Loan |
|
7.250 - 8.000% |
|
11/22/17 |
|
629,000 |
|
631,920 |
| ||
|
CompuCom Systems Inc., REFI Term Loan B |
|
4.250% |
|
5/8/20 |
|
1,060,000 |
|
1,053,707 |
| ||
|
Eagle Parent Inc., New Term Loan |
|
4.500% |
|
5/16/18 |
|
1,038,859 |
|
1,042,106 |
| ||
|
Expert Global Solutions Inc., Term Loan B |
|
8.500% |
|
4/3/18 |
|
881,477 |
|
893,597 |
| ||
|
First Data Corp., Extended 2018 Term Loan B |
|
4.193% |
|
3/23/18 |
|
1,250,000 |
|
1,221,094 |
| ||
|
Freescale Semiconductor Inc., Term Loan B4 |
|
5.000% |
|
3/2/20 |
|
120,000 |
|
119,212 |
| ||
|
InfoGroup Inc., New Term Loan |
|
7.500% |
|
5/25/18 |
|
942,287 |
|
858,659 |
| ||
|
Infor (U.S.) Inc., USD Term Loan B2 |
|
5.250% |
|
4/5/18 |
|
1,216,444 |
|
1,225,568 |
| ||
|
Intralinks Inc., Term Loan |
|
5.750% |
|
6/15/14 |
|
597,635 |
|
599,129 |
| ||
|
Kronos Inc., First Lien Term Loan |
|
4.500% |
|
10/30/19 |
|
1,217,500 |
|
1,225,870 |
| ||
|
Magic Newco LLC, First Lien Term Loan |
|
7.250% |
|
12/12/18 |
|
898,213 |
|
904,669 |
| ||
See Notes to Schedule of Investments.
LMP CORPORATE LOAN FUND INC.
Schedule of investments (unaudited) (cont’d)
June 30, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
Technology — continued |
|
|
|
|
|
|
|
|
|
|
|
|
NXP B.V., Term Loan C |
|
4.750% |
|
1/11/20 |
|
$ |
497,500 |
|
$ |
505,170 |
|
|
Sophia LP, New Term Loan B |
|
4.500% |
|
7/19/18 |
|
738,423 |
|
741,192 |
| ||
|
SumTotal Systems Inc., First Lien Term Loan |
|
6.250 - 7.250% |
|
11/16/18 |
|
698,250 |
|
697,814 |
| ||
|
SunGard Data Systems Inc., Term Loan D |
|
4.500% |
|
1/31/20 |
|
997,500 |
|
1,001,864 |
| ||
|
Syniverse Holdings Inc., Term Loan |
|
5.000% |
|
4/23/19 |
|
1,212,750 |
|
1,218,435 |
| ||
|
Vertafore Inc., Second Lien Term Loan |
|
9.750% |
|
10/27/17 |
|
800,000 |
|
816,500 |
| ||
|
Total Technology |
|
|
|
|
|
|
|
14,756,506 |
| ||
|
Transportation — 5.9% |
|
|
|
|
|
|
|
|
| ||
|
AMR Corp., DIP Term Loan B |
|
— |
|
6/21/19 |
|
1,390,000 |
|
1,391,085 |
(b) | ||
|
AWAS Finance Luxembourg 2012 SA, New Term Loan |
|
3.500% |
|
7/16/18 |
|
735,921 |
|
745,120 |
| ||
|
Commercial Barge Line Co., First Lien Term Loan |
|
7.500% |
|
9/23/19 |
|
927,675 |
|
899,845 |
| ||
|
Commercial Barge Line Co., Second Lien Term Loan |
|
10.750% |
|
3/22/20 |
|
540,000 |
|
521,100 |
| ||
|
Delta Air Lines Inc., New Term Loan B |
|
— |
|
4/20/17 |
|
2,000,000 |
|
2,006,990 |
(b) | ||
|
Hertz Corp., Term Loan B2 |
|
3.000% |
|
3/11/18 |
|
1,077,300 |
|
1,073,709 |
| ||
|
U.S. Airways Group Inc., Term Loan B1 |
|
4.250% |
|
5/23/19 |
|
560,000 |
|
553,700 |
| ||
|
United Airlines Inc., New Term Loan B |
|
4.000% |
|
3/22/19 |
|
310,000 |
|
312,325 |
| ||
|
Total Transportation |
|
|
|
|
|
|
|
7,503,874 |
| ||
|
TOTAL SENIOR LOANS (Cost — $180,737,465) |
|
|
|
181,721,408 |
| ||||||
|
CORPORATE BONDS & NOTES — 6.1% |
|
|
|
|
|
|
|
|
| ||
|
CONSUMER DISCRETIONARY — 2.0% |
|
|
|
|
|
|
|
|
| ||
|
Media — 2.0% |
|
|
|
|
|
|
|
|
| ||
|
Carmike Cinemas Inc., Secured Notes |
|
7.375% |
|
5/15/19 |
|
500,000 |
|
540,000 |
| ||
|
DISH DBS Corp., Senior Notes |
|
6.750% |
|
6/1/21 |
|
190,000 |
|
202,825 |
| ||
|
Lynx I Corp., Senior Secured Notes |
|
5.375% |
|
4/15/21 |
|
670,000 |
|
676,700 |
(c) | ||
|
National CineMedia LLC, Senior Notes |
|
7.875% |
|
7/15/21 |
|
1,000,000 |
|
1,090,000 |
| ||
|
TOTAL CONSUMER DISCRETIONARY |
|
|
|
|
|
|
|
2,509,525 |
| ||
|
ENERGY — 1.2% |
|
|
|
|
|
|
|
|
| ||
|
Energy Equipment & Services — 0.2% |
|
|
|
|
|
|
|
|
| ||
|
Atwood Oceanics Inc., Senior Notes |
|
6.500% |
|
2/1/20 |
|
220,000 |
|
229,350 |
| ||
|
Oil, Gas & Consumable Fuels — 1.0% |
|
|
|
|
|
|
|
|
| ||
|
Globe Luxembourg SCA, Senior Secured Notes |
|
9.625% |
|
5/1/18 |
|
490,000 |
|
479,881 |
(c) | ||
|
MarkWest Energy Partners LP/MarkWest Energy Finance Corp., Senior Notes |
|
4.500% |
|
7/15/23 |
|
100,000 |
|
92,000 |
| ||
|
Stallion Oilfield Holdings Ltd., Senior Secured Notes |
|
10.500% |
|
2/15/15 |
|
684,000 |
|
725,724 |
| ||
|
Total Oil, Gas & Consumable Fuels |
|
|
|
|
|
|
|
1,297,605 |
| ||
|
TOTAL ENERGY |
|
|
|
|
|
|
|
1,526,955 |
| ||
|
HEALTH CARE — 0.2% |
|
|
|
|
|
|
|
|
| ||
|
Health Care Providers & Services — 0.2% |
|
|
|
|
|
|
|
|
| ||
|
Fresenius Medical Care U.S. Finance II Inc., Senior Notes |
|
5.875% |
|
1/31/22 |
|
240,000 |
|
253,800 |
(c) | ||
|
INDUSTRIALS — 0.9% |
|
|
|
|
|
|
|
|
| ||
|
Machinery — 0.9% |
|
|
|
|
|
|
|
|
| ||
|
Briggs & Stratton Corp. |
|
6.875% |
|
12/15/20 |
|
1,050,000 |
|
1,160,250 |
| ||
|
MATERIALS — 0.3% |
|
|
|
|
|
|
|
|
| ||
|
Chemicals — 0.1% |
|
|
|
|
|
|
|
|
| ||
|
Omnova Solutions Inc., Senior Notes |
|
7.875% |
|
11/1/18 |
|
188,000 |
|
196,460 |
| ||
|
Metals & Mining — 0.2% |
|
|
|
|
|
|
|
|
| ||
|
St. Barbara Ltd., Senior Secured Notes |
|
8.875% |
|
4/15/18 |
|
270,000 |
|
249,750 |
(c) | ||
|
TOTAL MATERIALS |
|
|
|
|
|
|
|
446,210 |
| ||
See Notes to Schedule of Investments.
LMP CORPORATE LOAN FUND INC.
Schedule of investments (unaudited) (cont’d)
June 30, 2013
|
SECURITY |
|
RATE |
|
MATURITY |
|
FACE |
|
VALUE |
| ||
|
TELECOMMUNICATION SERVICES — 1.5% |
|
|
|
|
|
|
|
|
| ||
|
Diversified Telecommunication Services — 1.1% |
|
|
|
|
|
|
|
|
| ||
|
Intelsat Jackson Holdings SA, Senior Notes |
|
7.250% |
|
10/15/20 |
|
$ |
500,000 |
|
$ |
527,500 |
|
|
Wind Acquisition Finance SA, Senior Secured Notes |
|
6.500% |
|
4/30/20 |
|
870,000 |
|
867,825 |
(c) | ||
|
Total Diversified Telecommunication Services |
|
|
|
|
|
|
|
1,395,325 |
| ||
|
Wireless Telecommunication Services — 0.4% |
|
|
|
|
|
|
|
|
| ||
|
Softbank Corp., Senior Notes |
|
4.500% |
|
4/15/20 |
|
550,000 |
|
530,200 |
(c) | ||
|
TOTAL TELECOMMUNICATION SERVICES |
|
|
|
|
|
|
|
1,925,525 |
| ||
|
TOTAL CORPORATE BONDS & NOTES (Cost — $7,532,997) |
|
|
|
|
|
7,822,265 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
SHARES |
|
|
| ||
|
COMMON STOCKS — 1.2% |
|
|
|
|
|
|
|
|
| ||
|
CONSUMER DISCRETIONARY — 0.1% |
|
|
|
|
|
|
|
|
| ||
|
Automobiles — 0.1% |
|
|
|
|
|
|
|
|
| ||
|
Dayco Products LLC |
|
|
|
|
|
4,912 |
|
170,692 |
* | ||
|
ENERGY — 1.1% |
|
|
|
|
|
|
|
|
| ||
|
Oil, Gas & Consumable Fuels — 1.1% |
|
|
|
|
|
|
|
|
| ||
|
SemGroup Corp., Class A Shares |
|
|
|
|
|
24,938 |
|
1,343,161 |
| ||
|
TOTAL COMMON STOCKS (Cost — $687,306) |
|
|
|
|
|
1,513,853 |
| ||||
|
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $188,957,768) |
|
191,057,526 |
| ||||||||
|
|
|
|
|
|
|
FACE |
|
|
| |
|
SHORT-TERM INVESTMENTS — 9.9% |
|
|
|
|
|
|
|
|
| |
|
Repurchase Agreements — 9.9% |
|
|
|
|
|
|
|
|
| |
|
State Street Bank & Trust Co. repurchase agreement dated 6/28/13; Proceeds at maturity - $12,650,011; (Fully collateralized by U.S. government agency obligations, 2.110% due 11/7/22; Market value - $12,907,641) (Cost - $12,650,000) |
|
0.010% |
|
7/1/13 |
|
12,650,000 |
|
12,650,000 |
| |
|
TOTAL INVESTMENTS — 159.3% (Cost — $201,607,768#) |
|
|
|
|
|
203,707,526 |
| |||
|
Auction Rate Cumulative Preferred Stock, at Liquidation Value — (27.4)% |
|
|
|
(35,000,000 |
) | |||||
|
Liabilities in Excess of Other Assets — (31.9)% |
|
|
|
|
|
|
(40,795,154 |
) | ||
|
TOTAL NET ASSETS — 100.0% |
|
|
|
|
|
|
|
$ |
127,912,372 |
|
|
* Non-income producing security. |
|
(a) Interest rates disclosed represent the effective rates on collateralized and uncollateralized senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan. |
|
(b) All or a portion of this loan is unfunded as of June 30, 2013. The interest rate for fully unfunded term loans is to be determined. |
|
(c) Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted. |
|
# Aggregate cost for federal income tax purposes is substantially the same. |
|
Abbreviations used in this schedule: | |
|
REFI |
- Refinancing |
|
Second Lien |
- Subordinate Lien to First Lien |
|
Term |
- Term loan typically with a First Lien on specified assets |
See Notes to Schedule of Investments.
Notes to schedule of investments (unaudited)
1. Organization and significant accounting policies
LMP Corporate Loan Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s investment objective is to maximize current income consistent with prudent efforts to preserve capital.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).
(a) Investment valuation. The valuations for fixed income securities are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.
The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North American Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Directors quarterly.
The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.
GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:
· Level 1—quoted prices in active markets for identical investments
· Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
· Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
Notes to schedule of investments (unaudited) (continued)
The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:
|
ASSETS | ||||||||||||
|
Description |
|
Quoted Prices |
|
Other Significant |
|
Significant |
|
Total |
| |||
|
Long-term investments†: |
|
|
|
|
|
|
|
|
| |||
|
Collateralized senior loans |
|
— |
|
$ |
181,721,408 |
|
— |
|
$ |
181,721,408 |
| |
|
Corporate bonds & notes |
|
— |
|
7,822,265 |
|
— |
|
7,822,265 |
| |||
|
Common stocks: |
|
|
|
|
|
|
|
|
| |||
|
Consumer discretionary |
|
— |
|
170,692 |
|
— |
|
170,692 |
| |||
|
Energy |
|
$ |
1,343,161 |
|
— |
|
— |
|
1,343,161 |
| ||
|
Total long-term investments |
|
$ |
1,343,161 |
|
$ |
189,714,365 |
|
— |
|
$ |
191,057,526 |
|
|
Short-term investments† |
|
— |
|
12,650,000 |
|
— |
|
12,650,000 |
| |||
|
Total investments |
|
$ |
1,343,161 |
|
$ |
202,364,365 |
|
— |
|
$ |
203,707,526 |
|
†See Schedule of Investments for additional detailed categorizations.
(b) Repurchase agreements. The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Fund’s holding period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked-to-market and measured against the value of the agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.
(c) Senior loans. Senior Loans generally are arranged through private negotiations between a borrower and several financial institutions (“Lenders”) represented in each case by one or more such Lenders acting as agent of the Lenders. On behalf of the Lenders, the agent will be primarily responsible for negotiating the loan agreement that establishes the relative terms and conditions of the Senior Loan and rights of the borrower and the Lenders. Also, an agent typically administers the terms of the loan agreement and is responsible for the monitoring of collateral and collection of principal and interest and fee payments from the borrower and the apportionment of these payments to the credit of all investors which are parties to the loan agreement. The Fund may act as one of the group of Lenders in a Senior Loan, and purchase assignments and participations in Senior Loans from third parties. Senior Loans are subject to credit risks, including the risk of nonpayment of scheduled interest or loan payments.
The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.
(d) Security transactions. Security transactions are accounted for on a trade date basis.
2. Investments
At June 30, 2013, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
|
Gross unrealized appreciation |
|
$ |
2,868,609 |
|
|
Gross unrealized depreciation |
|
(768,851 |
) | |
|
Net unrealized appreciation |
|
$ |
2,099,758 |
|
Notes to schedule of investments (unaudited) (continued)
3. Derivative instruments and hedging activities
GAAP requires enhanced disclosure about an entity’s derivative and hedging activities.
During the period ended June 30, 2013, the Fund did not invest in any derivative instruments.
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.
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.
LMP Corporate Loan Fund Inc..
|
By |
/s/ Kenneth D. Fuller |
|
|
|
Kenneth D. Fuller |
|
|
|
Chief Executive Officer |
|
|
|
|
|
|
Date: August 23, 2013 |
| |
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/Kenneth D. Fuller |
|
|
|
Kenneth D. Fuller |
|
|
|
Chief Executive Officer |
|
|
|
|
|
|
Date: August 23, 2013 |
| |
|
|
| |
|
By |
/s/ Richard F. Sennett |
|
|
|
Richard F. Sennett |
|
|
|
Principal Financial Officer |
|
|
|
|
|
|
Date: August 23, 2013 |
| |