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EATON VANCE(R)
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MANAGED INVESTMENTS
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SEMIANNUAL REPORT DECEMBER 31, 2001
[graphic omitted] EATON VANCE
SENIOR
INCOME
TRUST
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Eaton Vance Senior Income Trust as of December 31, 2001
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INVESTMENT UPDATE
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Investment Environment
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The Loan Market
o In the six months ended December 31, 2001, the weak economy produced
deteriorating credit conditions, with default rates rising to their highest
level since 1991. The impact was especially severe within the telecom and
technology sectors, which suffered from lower spending on computers and
network-related equipment.
o The Federal Reserve reduced its Federal Funds rate - a key short-term interest
rate barometer - 11 times during the year for a total of 475 basis points
(4.75%). Those rate reductions were followed by similar cuts in LIBOR, which
is used to determine interest rates on floating-rate loans. As a result,
returns on floating-rate loans declined significantly.
o In response to credit conditions, lending practices have tightened in recent
months, with lenders demanding stricter covenants and better capital
structures. That trend represents a potential benefit to investors in the loan
market, as prices and terms on new loans should improve. In addition, credit
quality is likely to improve as the economy recovers. And finally, with
interest rates at or near their historical lows, floating-rate loans are
poised to benefit if there is an uptick in rates.
The Trust
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PERFORMANCE
o Based on the Trust's December 2001 monthly dividend of $0.05 and a closing
share price of $7.86, the Trust had a market yield of 7.63%.1 The Trust's
market yield represented a yield advantage over many other income-producing
vehicles.
THE TRUST'S INVESTMENTS
o The Trust`s broad diversification - including many companies with defensive
characteristics - was helpful in the slow economy. At December 31, 2001 the
number of borrowers in the Trust was 225, encompassing 50 industries.
Meanwhile, the average loan as a percentage of the Trust's total net assets
was just 0.68%. At December 31, 2001, 8.0% of the Trust's total investments
were invested in high-yield corporate bonds. The Trust had leverage (borrowing
and auction preferred shares) of $205 million at December 31, 2001. That
represented 40.1% of the Trust's total assets.
o Cable television was the Trust's largest sector weighting. Insight Midwest
Holdings is among the nation's most technologically-advanced cable providers.
The company, 50%-owned by AT&T Broadband, provides cable service primarily in
Kentucky, Indiana and Illinois. In addition to its high quality digital
television services, Insight offers a range of telephony-related services,
including data services and video-on-demand.
o In another defensive sector, Rite-Aid Corp. is the second largest retail
drugstore chain in the U.S., with nearly 3,700 stores in 30 states. In
addition to prescription drugs, the company has expanded its "front-end"
offerings, such as seasonal merchandise and photo processing. We are
comfortable with this loan in a weak economy because it is well-secured with a
borrowing base of the company's very high quality inventory.
o In a cyclical area, Jefferson Smurfit is one of the nation's largest producers
of paperboard and packaging products. While the paper industry is highly
cyclical, Smurfit has benefited in the weak economy by its size and vertical
integration and, most importantly, by its ability to impose discipline by
reducing capacity. This move gave Smurfit a distinct edge in its commodity
markets, allowing the company to remain a price leader and gain market share
in a slow economy.
o We are pleased to announce that, effective November 29, 2001, John P. Redding
assumed responsibilities as co-portfolio manager of Eaton Vance Senior Income
Trust. Mr. Redding is a Vice President of Eaton Vance Management, where he has
worked as a senior credit analyst since 1998.
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Shares of the Trust are not insured by the FDIC and are not deposits or other
obligations of, or guaranteed by, any depository institution. Shares are subject
to investment risks, including possible loss of principal invested. Yield will
change.
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FUND INFORMATION
AS OF DECEMBER 31, 2001
Performance(2)
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Average Annual Total Return (by share price, NYSE)
One Year 2.32%
Life of Fund (10/30/98) 1.35
Average Annual Total Return (at net asset value)
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One Year 1.26%
Life of Fund (10/30/98) 3.83
Five Largest Sector Weightings(3)
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CABLE TELEVISION 9.8%
MANUFACTURING 7.7%
CHEMICALS 7.5%
BROADCAST MEDIA 5.5%
REAL ESTATE 5.3%
(1) The Trust's market yield is calculated by dividing the most recent dividend
per share by the share market price at the end of the period and annualizing
the result. (2) Returns are historical and are calculated by determining the
percentage change in market value or net asset value with all distributions
reinvested. (3) Five largest sector weightings account for 35.8% of the
Trust's total investments, determined by dividing the total market value of
the holdings by the total investments of the Trust. Five Largest Sector
Weightings refer only to senior, secured floating-rate loan portion of the
Trust and are subject to change
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when sold, may be worth more
or less than their original cost.
Eaton Vance Senior Income Trust as of December 31, 2001
PORTFOLIO OF INVESTMENTS
Senior, Floating Rate Loan
Interests -- 107.8%(2)
Principal
Amount Borrower/Tranche Description Value
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Advertising -- 0.6%
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Lamar Media Corp.
$ 1,986,241 Term loan, maturing March 1, 2006 $ 1,987,069
Trader.com
278,596 Term loan, maturing December 31, 2006 268,845
201,315 Term loan, maturing December 31, 2007 194,269
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$ 2,450,183
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Aerospace & Defense -- 2.8%
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Aircraft Braking Systems Corp.
$ 588,449 Term loan, maturing September 30, 2005 $ 578,886
Alliant Techsystems, Inc.
2,987,475 Term loan, maturing April 20, 2009 3,016,418
Dyncorp
769,000 Term loan, maturing December 9, 2006 771,884
EG&G Technical Services, Inc.
882,682 Term loan, maturing August 20, 2007 865,029
Fairchild Holdings Corporation
2,137,694 Term loan, maturing April 30, 2006 1,973,592
Hexcel Corporation
2,108,335 Term loan, maturing August 25, 2005 1,876,419
Transdigm Holding Company
279,844 Term loan, maturing May 15, 2006 273,314
715,156 Term loan, maturing May 15, 2007 698,470
United Defense Industries, Inc.
1,442,859 Term loan, maturing June 30, 2009 1,446,691
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$ 11,500,703
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Air Freight & Couriers -- 0.3%
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Evergreen International Aviation, Inc.
$ 104,218 Term loan, maturing April 30, 2002 $ 93,275
1,191,822 Term loan, maturing April 30, 2003 1,066,681
183,637 Term loan, maturing May 31, 2003 157,928
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$ 1,317,884
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Auto Components -- 1.9%
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Accuride Corporation
$ 1,940,000 Term loan, maturing January 21, 2007 $ 1,653,850
Exide Corporation
1,670,738 Term loan, maturing March 18, 2005 1,227,993
Federal Mogul Corp DIP (First Lien)
2,500,000 Term loan, maturing November 30, 2003 2,509,375
Federal-Mogul Corporation
763,183 Term loan, maturing February 24, 2004 721,208
Metaldyne, Inc.
955,800 Term loan, maturing May 31, 2007 879,336
Stanadyne Automotive Corporation
1,120,072 Term loan, maturing December 10, 2004 1,054,026
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$ 8,045,788
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Broadcast Media -- 5.5%
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CanWest Media, Inc.
$ 2,137,225 Term loan, maturing May 15, 2008 $ 2,138,828
1,335,237 Term loan, maturing May 15, 2009 1,336,239
Citadel Communications Corp.
1,000,000 Term loan, maturing December 31, 2008 995,938
Corus Entertainment
980,000 Term loan, maturing August 31, 2007 982,450
Lin Television Corp.
1,018,935 Term loan, maturing March 31, 2007 1,016,388
1,684,805 Term loan, maturing September 30, 2007 1,684,805
Mediacom Broadband, LLC
2,000,000 Term loan, maturing September 30, 2010 2,001,458
Nexstar Finance, LLC
866,071 Term loan, maturing July 12, 2007 853,351
Paxson Communications Corporation
2,985,000 Term loan, maturing June 30, 2006 2,977,538
Sinclair Broadcast Group, Inc.
3,000,000 Term loan, maturing September 15, 2005 3,008,907
Susquehanna Media Co.
2,000,000 Term loan, maturing June 30, 2007 1,930,000
Telemundo
4,000,000 Term loan, maturing May 15, 2008 4,003,500
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$ 22,929,402
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Cable Television -- 9.8%
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Century Cable Holdings, LLC
$ 8,500,000 Term loan, maturing December 31, 2009 $ 8,384,715
Charter Communications Operating, LLC.
9,000,000 Term loan, maturing March 18, 2008 8,857,764
Charter Communications VIII
5,000,000 Term loan, maturing February 2, 2008 4,926,875
Classic Cable, Inc.
865,616 Term loan, maturing October 31, 2007 775,268
Hilton Head Communications
2,500,000 Term loan, maturing May 15, 2007 2,503,125
Insight Midwest Holdings, LLC
9,000,000 Term loan, maturing December 31, 2009 8,997,750
Mediacom Southeast
1,000,000 Revolving loan, maturing September 30, 2008 999,063
RCN Corporation
2,500,000 Term loan, maturing June 30, 2007 1,950,000
Videotron LTEE
3,000,000 Term loan, maturing December 1, 2009 2,991,564
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$ 40,386,123
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Casinos & Gaming -- 3.7%
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Alliance Gaming Corporation
$ 3,000,000 Term loan, maturing November 30, 2006 $ 3,001,875
Argosy Gaming Company
995,000 Term loan, maturing June 30, 2008 1,003,396
Aztar Corporation
2,474,619 Term loan, maturing June 30, 2005 2,468,433
Boyd Gaming Corporation
1,265,584 Term loan, maturing June 15, 2003 1,264,002
Isle of Capri Casinos
1,421,899 Term loan, maturing March 2, 2006 1,417,329
1,244,161 Term loan, maturing March 2, 2007 1,240,163
Penn National Gaming, Inc.
4,954,736 Term loan, maturing July 31, 2006 4,946,684
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$ 15,341,882
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Chemicals -- 7.5%
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Arteva B.V. (Kosa)
$ 2,825,014 Term loan, maturing December 31, 2006 $ 2,759,685
Avecia Investments Limited
498,736 Term loan, maturing June 30, 2007 493,749
451,238 Term loan, maturing June 30, 2008 446,725
CP Kelco U.S., Inc.
1,665,704 Term loan, maturing March 31, 2008 1,565,761
556,630 Term loan, maturing March 31, 2009 523,232
Equistar Chemicals, L.P.
1,496,250 Term loan, maturing August 31, 2007 1,501,113
GEO Specialty Chemicals, Inc.
2,000,000 Term loan, maturing December 31, 2007 1,925,000
Georgia Gulf Corporation
964,266 Term loan, maturing December 31, 2006 960,409
Huntsman Corporation
1,000,000 Term loan, maturing December 31, 2002 990,108
3,407,665 Term loan, maturing September 30, 2003 2,427,961
Huntsman Int'l
2,057,370 Term loan, maturing June 3, 2006 1,973,361
975,000 Term loan, maturing June 30, 2007 953,605
975,000 Term loan, maturing June 30, 2008 953,605
IMC Global, Inc
2,984,645 Term loan, maturing November 17, 2006 2,985,889
Lyondell Petrochemical Company
3,893,036 Term loan, maturing June 30, 2007 3,912,723
Messer Griesham GmbH
1,867,095 Term loan, maturing April 30, 2009 1,877,986
1,110,600 Term loan, maturing April 30, 2010 1,117,078
Millenium Chemicals inc.
1,000,000 Term loan, maturing June 30, 2006 996,667
NOVEON
1,492,500 Term loan, maturing September 30, 2008 1,485,038
Polymer Group, Inc.
1,410,325 Term loan, maturing December 20, 2005 1,201,597
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$ 31,051,292
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Coal -- 0.4%
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Arch Western Resources, LLC.
$ 1,500,000 Term loan, maturing May 31, 2003 $ 1,485,000
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$ 1,485,000
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Commercial Services -- 3.6%
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Advanstar Communications Inc.
$ 1,782,857 Term loan, maturing November 17, 2007 $ 1,571,886
American Marketing Industries, Inc.
1,329,600 Term loan, maturing November 30, 2002* 664,800
614,066 Term loan, maturing November 30, 2004* 307,033
Anthony Crane Rental, L.P.
994,898 Term loan, maturing July 20, 2006 736,224
Brickman Holdings Corp
990,991 Term loan, maturing January 14, 2006 986,036
Coinmach Laundry Corporation
2,884,049 Term loan, maturing June 30, 2005 2,875,939
Corrections Corporation of America
1,300,958 Term loan, maturing December 31, 2002 1,291,200
436,055 Term loan, maturing January 1, 2003 432,058
961,236 Term loan, maturing January 1, 2004 952,424
Environmental Systems Products Hldgs, Inc.
1,195,147 Term loan, maturing December 31, 2004 1,006,911
532,072 Term loan, maturing December 31, 2004 324,564
Metokote Corporation
980,000 Term loan, maturing November 2, 2005 938,840
MSX International, Inc.
980,000 Term loan, maturing December 31, 2006 950,047
Volume Services, Inc.
1,925,870 Term loan, maturing December 31, 2002 1,909,019
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$ 14,946,981
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Communications Equipment -- 1.5%
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Amphenol Corporation
$ 667,506 Term loan, maturing May 19, 2004 $ 655,157
3,879,137 Term loan, maturing May 19, 2005 3,857,014
CII Technologies
959,720 Term loan, maturing March 15, 2004 959,121
Superior Telecom, Inc.
1,331,451 Term loan, maturing November 27, 2005 899,205
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$ 6,370,497
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Computer Software & Services -- 0.7%
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Titan Corporation
$ 1,769,009 Term loan, maturing March 31, 2006 $ 1,762,375
1,189,659 Term loan, maturing March 31, 2007 1,185,198
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$ 2,947,573
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Construction & Engineering -- 0.2%
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URS Corporation
$ 466,490 Term loan, maturing June 9, 2006 $ 458,909
466,490 Term loan, maturing June 9, 2007 458,909
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$ 917,818
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Construction Materials -- 0.6%
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Formica Corporation
$ 788,379 Term loan, maturing April 30, 2006 $ 632,674
Tapco International Corporation
1,555 Term loan, maturing June 23, 2007 1,492
933 Term loan, maturing June 23, 2008 895
Trussway Industries, Inc.
881,477 Term loan, maturing December 31, 2006 691,960
U.S. Aggregates, Inc.
97,488 Term loan, maturing January 31, 2002* 94,563
1,654,218 Term loan, maturing March 31, 2006* 1,157,952
------------
$ 2,579,536
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Containers & Packaging - Metal & Glass -- 1.6%
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Ball Corporation
$ 3,433,121 Term loan, maturing March 10, 2006 $ 3,426,148
Impress Metal Packaging Holdings B.V.
841,500 Term loan, maturing December 31, 2006 807,840
Silgan Holdings Inc.
127,093 Term loan, maturing December 31, 2003 124,233
280,892 Revolving loan, maturing December 31, 2003 273,256
1,958,974 Term loan, maturing June 30, 2005 1,929,590
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$ 6,561,067
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Containers & Packaging - Paper -- 3.8%
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Blue Ridge Paper Products, Inc.
$ 881,610 Term loan, maturing March 31, 2006 $ 881,610
Gaylord Container Corporation
1,689,899 Term loan, maturing June 19, 2004 1,666,663
Greif Bros. Corporation
918,598 Term loan, maturing February 28, 2008 918,827
Impaxx, Inc.
960,000 Term loan, maturing December 31, 2005 835,200
Jefferson Smurfit Corporation
5,000,000 Term loan, maturing March 31, 2007 4,986,110
Port Townsend Paper Corporation
988,701 Term loan, maturing March 16, 2007 966,456
Riverwood International Corporation
3,000,000 Term loan, maturing December 31, 2006 3,010,314
Stone Container Corporation
1,592,752 Term loan, maturing October 1, 2003 1,591,575
491,692 Term loan, maturing October 1, 2004 490,975
499,552 Term loan, maturing December 31, 2006 497,241
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$ 15,844,971
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Containers & Packaging - Plastics -- 1.8%
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Crown Cork & Seal Company, Inc.
$ 3,000,000 Term loan, maturing February 4, 2002 $ 2,971,875
IPC aka Ivex Packaging Corp, Inc.
1,288,196 Revolving loan, maturing September 30, 2003 1,217,345
366,425 Term loan, maturing September 30, 2003 346,272
IPC, Inc.
2,000,000 Term loan, maturing September 30, 2004 1,955,000
Tekni-Plex, Inc.
982,531 Term loan, maturing March 31, 2006 951,418
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$ 7,441,910
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Educational Services -- 0.9%
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Kindercare Learning Centers, Inc
$ 3,064,618 Term loan, maturing February 13, 2006 $ 2,984,172
Weekly Reader Corporation
977,500 Term loan, maturing September 30, 2007 940,844
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$ 3,925,016
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Electronic Equipment & Instruments -- 0.2%
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Knowles Electronics, Inc.
$ 985,000 Term loan, maturing June 29, 2007 $ 913,588
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$ 913,588
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Entertainment -- 3.1%
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Blockbuster Entertainment Corp.
$ 500,000 Term loan, maturing July 1, 2006 $ 487,032
Dreamworks Film Trust
2,000,000 Term loan, maturing December 31, 2006 2,012,500
Interval
605,779 Term loan, maturing December 16, 2005 597,449
943,915 Term loan, maturing December 15, 2006 930,936
KSL Recreation Group, Inc.
480,000 Term loan, maturing April 30, 2005 469,600
480,000 Term loan, maturing April 30, 2006 470,800
990,000 Term loan, maturing April 30, 2007 970,200
Metro-Goldwyn-Mayer Studios Inc.
4,980,000 Term loan, maturing March 31, 2004 4,937,670
Six Flags Theme Parks Inc.
1,995,000 Term loan, maturing September 30, 2005 2,002,232
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$ 12,878,419
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Environmental Services -- 1.0%
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Allied Waste Industries, Inc.
$ 518,411 Term loan, maturing July 30, 2005 $ 506,284
1,021,113 Term loan, maturing July 30, 2006 1,013,079
1,225,335 Term loan, maturing July 30, 2007 1,215,694
International Technology Corporation
970,000 Term loan, maturing June 11, 2004* 412,250
Stericycle, Inc.
1,000,000 Term loan, maturing November 10, 2006 1,005,625
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$ 4,152,931
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Food Services -- 0.5%
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Buffets, Inc
$ 1,975,000 Term loan, maturing March 31, 2007 $ 1,979,114
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$ 1,979,114
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Food, Beverages & Tobacco -- 3.3%
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Cott Corporation
$ 965,000 Term loan, maturing December 31, 2006 $ 969,825
Del Monte Corporation
3,970,000 Term loan, maturing March 31, 2008 4,008,461
Eagle Family Foods, Inc
311,953 Term loan, maturing December 31, 2005 295,984
Flowers Foods, Inc.
1,492,500 Term loan, maturing June 30, 2006 1,499,030
Interstate Brands Corporations
2,987,494 Term loan, maturing July 19, 2007 3,002,431
Michael Foods, Inc.
1,966,877 Term loan, maturing March 30, 2008 1,979,990
Nutra Sweet
1,500,000 Term loan, maturing June 30, 2008 1,492,970
Pabst Brewing Company
393,482 Term loan, maturing April 30, 2004 354,134
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$ 13,602,825
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Health Care - Equipment & Supplies -- 2.0%
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Charles River Laboratories, Inc.
$ 1,342,500 Term loan, maturing October 13, 2007 $ 1,352,569
Conmed Corporation
1,965,707 Term loan, maturing December 31, 2005 1,941,135
Fisher Scientific International Inc
1,697,227 Term loan, maturing January 21, 2007 1,699,349
1,240,178 Term loan, maturing January 21, 2008 1,241,728
Sybron Dental Management
932,991 Term loan, maturing November 28, 2007 935,323
933,333 Term loan, maturing November 28, 2007 935,667
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$ 8,105,771
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Health Care - Providers & Services -- 3.9%
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Alliance Imaging, Inc.
$ 542,910 Term loan, maturing December 18, 2004 $ 545,116
524,254 Term loan, maturing December 18, 2005 526,384
Amerisource Bergen Corporation
3,000,000 Term loan, maturing March 31, 2005 2,970,000
Community Health Systems, Inc.
2,353,280 Term loan, maturing December 31, 2005 2,366,333
Concentra Managed Care, Inc.
1,786,789 Term loan, maturing December 31, 2005 1,785,672
893,395 Term loan, maturing December 31, 2006 892,836
DaVita, Inc.
791,985 Term loan, maturing March 31, 2006 797,005
FHC Health Systems, Inc.
934,100 Term loan, maturing April 30, 2005 922,424
934,100 Term loan, maturing April 30, 2006 922,424
Magellan Health Services, Inc.
38,400 Term loan, maturing February 12, 2005 38,391
38,400 Term loan, maturing February 12, 2006 38,391
Team Health
1,430,077 Term loan, maturing March 12, 2006 1,422,926
Triad Hospitals Holdings, Inc.
2,991,818 Term loan, maturing March 31, 2008 3,022,110
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$ 16,250,012
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Hotels -- 1.7%
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Extended Stay America
$ 2,500,000 Term loan, maturing December 31, 2007 $ 2,492,500
Mandalay Resort Group
1,000,000 Term loan, maturing August 18, 2006 995,000
Starwood Hotels & Resorts
1,325,000 Term loan, maturing February 23, 2003 1,327,981
Wyndham International, Inc.
2,477,116 Term loan, maturing June 30, 2006 2,149,783
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$ 6,965,264
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Household Furnish & Appliances -- 0.9%
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Sealy Mattress Company
$ 358,332 Term loan, maturing December 15, 2004 $ 357,474
258,208 Term loan, maturing December 15, 2005 257,589
330,004 Term loan, maturing December 15, 2006 329,213
Simmons Company
678,279 Term loan, maturing October 30, 2005 678,449
1,206,745 Term loan, maturing October 30, 2006 1,208,253
Sleepmaster, LLC
1,155,051 Term loan, maturing December 31, 2006 981,793
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$ 3,812,771
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Household Products -- 2.4%
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Church & Dwight Co. Inc.
$ 2,500,000 Term loan, maturing September 30, 2007 $ 2,518,360
Samsonite Corporation
1,959,391 Term loan, maturing June 24, 2006 1,856,523
The Imperial Decor Home Group, Inc.
250,119 Medium Term note, maturing April 4, 2006 175,084
The Scotts Company
3,490,864 Term loan, maturing December 31, 2007 3,505,411
Werner Holding Co.
1,925,085 Term loan, maturing November 30, 2004 1,909,685
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$ 9,965,062
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Insurance -- 0.6%
-------------------------------------------------------------------------------
Willis Corroon Corporation
$ 930,000 Term loan, maturing February 19, 2007 $ 921,088
944,381 Term loan, maturing February 19, 2008 936,118
568,660 Term loan, maturing August 19, 2008 564,158
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$ 2,421,364
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Leisure -- 0.1%
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Blount International Inc.
$ 219,872 Term loan, maturing July 31, 2006 $ 213,275
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$ 213,275
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Leisure Equipment & Products -- 0.2%
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Bell Sports, Inc.
$ 954,936 Term loan, maturing March 30, 2007 $ 830,794
-------------------------------------------------------------------------------
$ 830,794
-------------------------------------------------------------------------------
Machinery -- 1.2%
-------------------------------------------------------------------------------
Flowserve Corporation
$ 2,466,740 Term loan, maturing June 30, 2008 $ 2,475,477
The Manitowoc Company
2,487,381 Term loan, maturing June 30, 2007 2,504,170
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$ 4,979,647
-------------------------------------------------------------------------------
Manufacturing -- 7.7%
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Advanced Glassfiber Yarns LLC
$ 1,524,149 Term loan, maturing September 30, 2005 $ 1,440,321
Citation Corporation
955,230 Term loan, maturing December 1, 2007 917,530
Dayton Superior Corporation
1,625,000 Term loan, maturing September 29, 2005 1,616,875
Dresser, Inc.
3,482,500 Term loan, maturing March 31, 2007 3,504,266
Gentek, Inc.
975,000 Term loan, maturing April 30, 2007 799,500
2,962,500 Term loan, maturing April 30, 2008 2,429,250
Joy Global, Inc.
3,000,000 Term loan, maturing April 30, 2005 3,000,000
Mueller Group, Inc.
988,750 Term loan, maturing August 17, 2006 972,271
988,750 Term loan, maturing August 17, 2007 972,271
Oshkosh Truck Corporation
1,492,500 Term loan, maturing January 31, 2007 1,501,518
Panavision International, L.P.
4,696,081 Term loan, maturing March 31, 2005 3,858,615
Panolam Industries, Inc.
864,175 Term loan, maturing December 31, 2006 795,041
Polypore Incorporated
1,691,633 Term loan, maturing December 31, 2006 1,699,034
SPX Corporation
3,954,911 Term loan, maturing December 31, 2006 3,940,697
Synthetic Industries, Inc.
495,318 Term loan, maturing December 30, 2007 391,301
Tokheim Corporation
1,425,980 Term loan, maturing December 5, 2005 1,283,382
739,586 Term loan, maturing December 5, 2005 684,117
1,951,043 Term loan (PIK), maturing December 5, 2005* 0
461,292 Revolving loan, maturing December 5, 2005 461,292
UCAR Finance, Inc.
1,595,463 Term loan, maturing December 31, 2007 1,544,939
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$ 31,812,220
-------------------------------------------------------------------------------
Metals & Mining -- 1.6%
-------------------------------------------------------------------------------
Compass Minerals Group, Inc
$ 3,000,000 Term loan, maturing November 28, 2009 $ 3,040,314
Handy & Harman
923,964 Term loan, maturing July 30, 2006 916,168
Neenah Foundry Company
1,813,782 Term loan, maturing September 30, 2005 1,723,093
Stillwater Mining Company
992,500 Term loan, maturing June 30, 2007 972,650
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$ 6,652,225
-------------------------------------------------------------------------------
Miscellaneous -- 0.9%
-------------------------------------------------------------------------------
AMSCAN Holdings, Inc.
$ 994,819 Term loan, maturing December 31, 2004 $ 917,720
Sotheby's Holdings, Inc.
3,000,000 Term loan, maturing August 11, 2002 2,932,500
-------------------------------------------------------------------------------
$ 3,850,220
-------------------------------------------------------------------------------
Office Equipment & Supplies -- 0.8%
-------------------------------------------------------------------------------
Buhrmann, Inc.
$ 1,245,921 Term loan, maturing December 31, 2007 $ 1,196,863
Iron Mountain, Inc.
1,987,500 Term loan, maturing February 28, 2006 2,003,338
-------------------------------------------------------------------------------
$ 3,200,201
-------------------------------------------------------------------------------
Oil & Gas -- 1.3%
-------------------------------------------------------------------------------
Tesoro Petroleum Corp
$ 3,000,000 Term loan, maturing December 31, 2007 $ 3,005,250
The Premcor Refining Group, Inc.
2,500,000 Term loan, maturing August 23, 2003 2,490,625
-------------------------------------------------------------------------------
$ 5,495,875
-------------------------------------------------------------------------------
Paper & Forest Products -- 1.2%
-------------------------------------------------------------------------------
Bear Island Paper Company, LLC
$ 1,233,457 Term loan, maturing December 31, 2005 $ 1,214,955
Norske Skog Canada LTD
2,738,744 Term loan, maturing August 10, 2007 2,755,861
Potlatch Corporation
995,000 Term loan, maturing June 29, 2005 998,316
-------------------------------------------------------------------------------
$ 4,969,132
-------------------------------------------------------------------------------
Personal Products -- 1.7%
-------------------------------------------------------------------------------
Mary Kay Cosmetics, Inc.
$ 1,500,000 Term loan, maturing December 6, 2002 $ 1,490,625
Playtex Products, Inc.
3,958,000 Term loan, maturing May 31, 2009 3,987,068
Revlon Consumer Products Corporation
1,500,000 Term loan, maturing May 30, 2005 1,464,375
-------------------------------------------------------------------------------
$ 6,942,068
-------------------------------------------------------------------------------
Pharmaceuticals & Biotechnology -- 0.1%
-------------------------------------------------------------------------------
Advance Paradigm, Inc.
$ 566,877 Term loan, maturing September 30, 2007 $ 568,294
-------------------------------------------------------------------------------
$ 568,294
-------------------------------------------------------------------------------
Publishing & Printing -- 3.6%
-------------------------------------------------------------------------------
American Media Operations Inc.
$ 972,577 Term loan, maturing April 1, 2007 $ 976,224
Journal Register Company
2,778,757 Term loan, maturing September 30, 2006 2,716,235
Liberty Group Operating, Inc.
1,970,000 Term loan, maturing April 30, 2007 1,871,500
Merrill Corporation
886,966 Term loan, maturing November 15, 2007 665,224
Morris Communications Corporation
3,000,000 Term loan, maturing September 30, 2009 3,005,625
R.H. Donnelley Inc.
941,415 Term loan, maturing December 5, 2005 939,062
753,132 Term loan, maturing December 5, 2006 751,249
Reiman Publications
1,831,513 Term loan, maturing November 30, 2005 1,828,079
The Sheridan Group, Inc.
975,347 Term loan, maturing January 30, 2005 975,263
Transwestern Publishing Company LLC
995,000 Term loan, maturing June 27, 2008 997,073
-------------------------------------------------------------------------------
$ 14,725,534
-------------------------------------------------------------------------------
Real Estate -- 5.3%
-------------------------------------------------------------------------------
125 West 55th Street
$ 1,990,476 Term loan, maturing June 9, 2004 $ 1,990,476
622 Third Ave Company LLC
2,000,000 Term loan, maturing September 30, 2004 2,000,000
AGBRI Octagon
2,000,000 Term loan, maturing May 31, 2004 1,990,754
American Skiing Company Resort Properties, Inc.
912,857 Term loan, maturing December 31, 2002 912,857
AP-Knight LP
2,500,000 Term loan, maturing December 31, 2004 2,487,702
Crescent Real Estate Equities, L.P.
3,000,000 Term loan, maturing May 31, 2005 2,988,750
FFD Development Company, LLC
80,000 Revolving loan, maturing April 2, 2004 79,600
Heritage Property Investment Trust, Inc
2,000,000 Term loan, maturing March 18, 2004 2,000,000
HQ Global Workplaces, Inc.
1,365,421 Term loan, maturing December 31, 2005 873,870
iStar Preferred Holdings LLC
1,000,000 Term loan, maturing July 20, 2006 970,000
iStar Walden
3,500,000 Term loan, maturing June 30, 2003 3,395,000
MeriStar Investment Partners, L.P.
500,000 Term loan, maturing March 31, 2002 472,500
OLY Hightop Parent
1,902,857 Term loan, maturing March 31, 2006 1,902,857
-------------------------------------------------------------------------------
$ 22,064,366
-------------------------------------------------------------------------------
Restaurants -- 0.4%
-------------------------------------------------------------------------------
AFC Enterprises Inc
$ 1,779,844 Term loan, maturing June 30, 2004 $ 1,779,288
-------------------------------------------------------------------------------
$ 1,779,288
-------------------------------------------------------------------------------
Retail - Food & Drug -- 4.6%
-------------------------------------------------------------------------------
Domino's Inc.
$ 505,489 Term loan, maturing December 21, 2006 $ 509,556
507,086 Term loan, maturing December 21, 2007 511,166
Duane Reade Inc.
2,487,500 Term loan, maturing February 15, 2007 2,482,060
Fleming Companies, Inc.
3,077,092 Term loan, maturing July 25, 2004 3,077,092
Pathmark Stores, Inc.
1,000,000 Term loan, maturing July 15, 2007 1,001,125
Rite Aid Corporation
$ 6,500,000 Term loan, maturing June 27, 2005 $ 6,456,125
SDM Corporation
969,956 Term loan, maturing March 30, 2008 972,911
969,956 Term loan, maturing March 30, 2009 972,911
Winn-Dixie Stores
2,977,500 Term loan, maturing March 28, 2007 2,981,686
-------------------------------------------------------------------------------
$ 18,964,632
-------------------------------------------------------------------------------
Retail - Specialty -- 2.6%
-------------------------------------------------------------------------------
Advance Stores Company, Inc.
$ 3,500,000 Term loan, maturing November 30, 2007 $ 3,497,085
CSK Auto, Inc.
3,000,000 Term loan, maturing December 21, 2004 2,992,500
Joan Fabrics Corporation
352,677 Term loan, maturing June 30, 2005 313,001
526,191 Term loan, maturing June 30, 2006 466,994
Travelcenters of America, Inc.
3,500,000 Term loan, maturing November 8, 2008 3,505,835
-------------------------------------------------------------------------------
$ 10,775,414
-------------------------------------------------------------------------------
Retail Stores - General Merchandise -- 2.1%
-------------------------------------------------------------------------------
Ames Merchandising Corporation
$ 3,500,000 Term loan, maturing March 31, 2004 $ 3,495,625
Service Merchandise
2,500,000 Term loan, maturing April 14, 2004 2,500,000
Shopko Stores, Inc.
2,500,000 Term loan, maturing March 12, 2004 2,503,125
-------------------------------------------------------------------------------
$ 8,498,750
-------------------------------------------------------------------------------
Telecommunications - Wireline -- 2.3%
-------------------------------------------------------------------------------
Alec Holdings, Inc.
$ 750,000 Term loan, maturing November 30, 2006 $ 733,125
750,000 Term loan, maturing November 30, 2007 733,125
Broadwing Inc.
4,250,000 Term loan, maturing December 31, 2005 4,092,903
1,000,000 Term loan, maturing December 31, 2006 970,938
Fairpoint Communications, Inc.
2,931,472 Term loan, maturing March 31, 2006 2,850,857
-------------------------------------------------------------------------------
$ 9,380,948
-------------------------------------------------------------------------------
Telecommunications - Wireless -- 2.3%
-------------------------------------------------------------------------------
Centennial Cellular Corp.
$ 1,200,337 Term loan, maturing November 30, 2006 $ 1,097,708
1,200,253 Term loan, maturing November 30, 2007 1,097,631
Nextel Communications, Inc.
1,000,000 Term loan, maturing March 31, 2009 885,795
Rural Cellular Corporation
710,847 Term loan, maturing April 6, 2008 690,854
710,846 Term loan, maturing April 6, 2009 690,854
Sygnet Operating Company (Dobson)
437,569 Term loan, maturing March 31, 2007 423,130
312,548 Term loan, maturing December 23, 2007 301,056
Western Wireless
4,500,000 Term loan, maturing September 30, 2008 4,396,406
Winstar Communications, Inc.
348,148 DIP loan, maturing January 31, 2002* 121,852
-------------------------------------------------------------------------------
$ 9,705,286
-------------------------------------------------------------------------------
Textiles & Apparel -- 0.6%
-------------------------------------------------------------------------------
Jo-Ann Stores, Inc.
$ 2,500,000 Term loan, maturing April 30, 2005 $ 2,487,500
-------------------------------------------------------------------------------
$ 2,487,500
-------------------------------------------------------------------------------
Theaters -- 0.4%
-------------------------------------------------------------------------------
Edwards Megaplex Holdings, LLC
$ 954,907 Term loan, maturing August 25, 2006 $ 929,443
Hollywood Theater Holdings, Inc.
917,509 Term loan, maturing March 31, 2006 816,583
-------------------------------------------------------------------------------
$ 1,746,026
-------------------------------------------------------------------------------
Total Senior, Floating-Rate Loan Interests
(identified cost $461,015,364) $446,732,442
-------------------------------------------------------------------------------
Corporate Bonds & Notes -- 9.6%
Principal
Amount
(000's Omitted) Security Value
-------------------------------------------------------------------------------
Aerospace and Defense -- 0.1%
-------------------------------------------------------------------------------
Alliant Techsystems, Inc.
$ 190 8.50%, 5/15/11 $ 198,550
Sequa Corp., Sr. Notes
45 9.00%, 8/1/09 42,750
-------------------------------------------------------------------------------
$ 241,300
-------------------------------------------------------------------------------
Airlines -- 0.6%
-------------------------------------------------------------------------------
American Airlines
$ 895 7.80%, 10/1/06 $ 877,100
Dunlop Stand Aero Holdings, Sr. Notes
1,000 11.875%, 5/15/09 1,015,000
Northwest Airlines, Inc.
540 8.875%, 6/1/06 445,497
-------------------------------------------------------------------------------
$ 2,337,597
-------------------------------------------------------------------------------
Apparel -- 0.1%
-------------------------------------------------------------------------------
GAP, Inc.
$ 315 8.80%, 12/15/08 $ 275,960
William Carter Co., Sr. Sub. Notes
45 10.875%, 8/15/11(1) 48,375
-------------------------------------------------------------------------------
$ 324,335
-------------------------------------------------------------------------------
Auto and Parts -- 0.2%
-------------------------------------------------------------------------------
Advance Stores Co., Inc., Sr. Sub Notes
$ 85 10.25%, 4/15/08 $ 86,700
Collins and Aikman Products, Sr. Notes
240 10.75%, 12/31/11 241,800
CSK Auto, Inc., Sr. Notes
420 12.00%, 6/15/06 425,250
Key Plastics, LLC, Jr. Sub Notes
44 4.00%, 4/26/07 44,008
Key Plastics, LLC Sr. Sub Notes
118 7.00%, 4/26/07 118,465
-------------------------------------------------------------------------------
$ 916,223
-------------------------------------------------------------------------------
Broadcasting and Cable -- 1.6%
-------------------------------------------------------------------------------
Adelphia Communications Corp., Sr. Notes
$ 35 9.25%, 10/1/02 $ 35,394
390 10.25%, 11/1/06 399,750
Belo Corp., Sr. Unsub. Notes
345 8.00%, 11/1/08 352,823
Charter Communication Holdings, Sr. Notes
1,500 10.75%, 10/1/09 1,590,000
Echostar Broadband Corp., Sr. Notes
15 10.375%, 10/1/07 15,787
Echostar DBS Corp., Sr. Notes
450 9.125%, 1/15/09 453,375
Mediacom Broadband LLC, Sr. Notes
180 11.00%, 7/15/13 198,450
Mediacom LLC/Capital Corp., Sr. Notes
960 9.50%, 1/15/13 1,000,800
Pegasus Commerce
1,000 9.75%, 12/1/06 905,000
Pegasus Sattelite, Sr. Notes
820 12.375%, 8/1/06 807,700
Sinclair Broadcast Group
150 9.00%, 7/15/07 151,500
Telewest PLC
1,000 11.25%, 11/1/08 735,000
-------------------------------------------------------------------------------
$ 6,645,579
-------------------------------------------------------------------------------
Building Materials -- 0.3%
-------------------------------------------------------------------------------
Resolution Performance, Sr. Sub. Notes
$ 110 13.50%, 11/15/10 $ 120,450
Ryland Group, Sr. Sub Note
1,025 9.125%, 6/15/11 1,066,000
-------------------------------------------------------------------------------
$ 1,186,450
-------------------------------------------------------------------------------
Business Services - Miscellaneous -- 0.1%
-------------------------------------------------------------------------------
Anthony Crane Rentals, Sr. Notes
$ 500 10.375%, 8/1/08 $ 87,500
Coinmach Corp., Sr. Notes
500 11.75%, 11/15/05 515,000
-------------------------------------------------------------------------------
$ 602,500
-------------------------------------------------------------------------------
Chemicals -- 0.4%
-------------------------------------------------------------------------------
Avecia Group, PLC
$ 750 11.00%, 7/1/09 $ 720,000
Ferro Corp., Sr. Notes
150 9.125%, 1/1/09 154,428
Hercules, Inc.
30 11.125%, 11/15/07 31,500
Lyondell Chemical Co.
60 9.50%, 12/15/08 59,700
Olin Corp., Sr. Notes
480 9.125%, 12/15/11 486,282
OM Group, Inc., Sr. Sub. Notes
60 9.25%, 12/15/11 61,500
-------------------------------------------------------------------------------
$ 1,513,410
-------------------------------------------------------------------------------
Coal -- 0.1%
-------------------------------------------------------------------------------
Luscar Coal Ltd., Sr. Notes
$ 300 9.75%, 10/15/11 $ 312,000
-------------------------------------------------------------------------------
$ 312,000
-------------------------------------------------------------------------------
Consumer Products -- 0.0%
-------------------------------------------------------------------------------
Fedders North America
$ 45 9.375%, 8/15/07 $ 33,187
Revlon Consumer Products, Sr. Notes
180 12.00%, 12/1/05 179,775
-------------------------------------------------------------------------------
$ 212,962
-------------------------------------------------------------------------------
Consumer Services -- 0.2%
-------------------------------------------------------------------------------
Stewart Enterprises
$ 600 10.75%, 7/1/08 $ 657,000
-------------------------------------------------------------------------------
$ 657,000
-------------------------------------------------------------------------------
Drugs -- 0.1%
-------------------------------------------------------------------------------
Alaris Medical Systems
$ 240 11.625%, 12/1/06 $ 260,400
-------------------------------------------------------------------------------
$ 260,400
-------------------------------------------------------------------------------
Electronic Components - Semiconductors -- 0.2%
-------------------------------------------------------------------------------
Chippac International Ltd.
$ 30 12.75%, 8/1/09 $ 27,750
Fairchild Semiconductor, Sr. Sub Notes
610 10.50%, 2/1/09 651,175
-------------------------------------------------------------------------------
$ 678,925
-------------------------------------------------------------------------------
Engines -- 0.1%
-------------------------------------------------------------------------------
Briggs and Stratton Corp.
$ 250 8.875%, 3/15/11(1) $ 262,500
-------------------------------------------------------------------------------
$ 262,500
-------------------------------------------------------------------------------
Entertainment -- 0.3%
-------------------------------------------------------------------------------
Premier Parks, Inc.
$ 1,150 9.75%, 6/15/07 $ 1,173,000
Premier Parks, Inc., Sr. Notes
60 9.25%, 4/1/06 60,600
Six Flags, Inc., Sr. Notes
30 9.50%, 2/1/09 30,337
-------------------------------------------------------------------------------
$ 1,263,937
-------------------------------------------------------------------------------
Environmental Services -- 0.0%
-------------------------------------------------------------------------------
Allied Waste Industries, Inc.
$ 115 10.00%, 8/1/09(1) $ 119,025
-------------------------------------------------------------------------------
$ 119,025
-------------------------------------------------------------------------------
Foods -- 0.2%
-------------------------------------------------------------------------------
Dean Foods Co., Sr. Notes
$ 445 8.15%, 8/1/07 $ 457,058
Ingles Markets, Inc., Sr. Sub. Notes
105 8.875%, 12/1/11 103,687
Smithfield Foods, Inc., Sr. Notes
180 8.00%, 10/15/09 186,300
-------------------------------------------------------------------------------
$ 747,045
-------------------------------------------------------------------------------
Furniture and Appliances -- 0.1%
-------------------------------------------------------------------------------
Fedders North America
$ 515 9.375%, 8/15/07 $ 379,813
-------------------------------------------------------------------------------
$ 379,813
-------------------------------------------------------------------------------
Gaming -- 0.7%
-------------------------------------------------------------------------------
Anchor Gaming
$ 1,500 9.875%, 10/15/08 $ 1,650,000
Penn National Gaming, Inc., Sr. Sub Notes
920 11.125%, 3/1/08 975,200
Wheeling Island Gaming, Sr. Notes
400 10.125%, 12/15/09 408,000
-------------------------------------------------------------------------------
$ 3,033,200
-------------------------------------------------------------------------------
Household Products -- 0.1%
-------------------------------------------------------------------------------
Playtex Products, Inc.
$ 250 9.375%, 6/1/11 $ 265,000
-------------------------------------------------------------------------------
$ 265,000
-------------------------------------------------------------------------------
Instruments - Controls -- 0.2%
-------------------------------------------------------------------------------
Wesco Distribution, Inc.
$ 1,000 9.125%, 6/1/08 $ 935,000
-------------------------------------------------------------------------------
$ 935,000
-------------------------------------------------------------------------------
Instruments - Scientific -- 0.1%
-------------------------------------------------------------------------------
Fisher Scientific International, Sr. Sub. Notes
$ 600 9.00%, 2/1/08 $ 618,000
-------------------------------------------------------------------------------
$ 618,000
-------------------------------------------------------------------------------
Lodging and Gaming -- 0.8%
-------------------------------------------------------------------------------
Ameristar Casinos, Inc.
$ 150 10.75%, 2/15/09 $ 162,750
Boyd Gaming Corp.
70 9.25%, 10/1/03 71,750
Hollywood Casino Shreveport, 1st Mtg. Notes
475 13.00%, 8/1/06 451,250
Hollywood Casino, Sr. Sub. Notes
290 11.25%, 5/1/07 315,013
Majestic Star Casino, LLC
740 10.875%, 7/1/06 721,500
Mandalay Resort Group, Sr. Sub. Notes
60 10.25%, 8/1/07 62,550
MGM Mirage, Inc.
500 9.75%, 6/1/07 526,250
Sun International Hotels, Sr. Sub. Notes
1,000 9.00%, 3/15/07 967,500
-------------------------------------------------------------------------------
$ 3,278,563
-------------------------------------------------------------------------------
Machinery -- 0.0%
-------------------------------------------------------------------------------
Terex Corp., Sr. Sub. Notes
$ 150 9.25%, 7/15/11 $ 150,750
-------------------------------------------------------------------------------
$ 150,750
-------------------------------------------------------------------------------
Manufacturing -- 0.3%
-------------------------------------------------------------------------------
Grey Wolf, Inc., Sr. Notes
$ 60 8.875%, 7/1/07 $ 58,800
Insilco Corp.
1,000 12.00%, 8/15/07 155,000
Transdigm Inc.
930 10.375%, 12/1/08 906,750
-------------------------------------------------------------------------------
$ 1,120,550
-------------------------------------------------------------------------------
Medical Services -- 0.1%
-------------------------------------------------------------------------------
Insight Health Services, Sr. Sub. Notes
$ 90 9.875%, 11/1/11 $ 93,600
Magellan Health Services, Sr. Notes
100 9.375%, 11/15/07(1) 102,000
Magellan Health Services, Sr. Sub. Notes
240 9.00%, 2/15/08 214,800
-------------------------------------------------------------------------------
$ 410,400
-------------------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 0.3%
-------------------------------------------------------------------------------
Hanover Equipment Trust
$ 190 8.75%, 9/1/11(1) $ 197,600
R&B Falcon Corp.
500 9.50%, 12/15/08 565,169
SESI, LLC
555 8.875%, 5/15/11(1) 524,475
-------------------------------------------------------------------------------
$ 1,287,244
-------------------------------------------------------------------------------
Oil and Gas - Exploration and Production -- 0.7%
-------------------------------------------------------------------------------
Chesapeake Energy Corp.
$ 1,000 8.375%, 11/1/08 $ 992,500
Comstock Resources, Inc.
480 11.25%, 5/1/07 477,600
Plains Resources, Inc., Series B
200 10.25%, 3/15/06 203,000
Western Natural Gas
1,000 10.00%, 6/15/09 1,065,000
-------------------------------------------------------------------------------
$ 2,738,100
-------------------------------------------------------------------------------
Oil Companies - Integrated -- 0.0%
-------------------------------------------------------------------------------
Pennzoil-Quaker State, Sr. Notes
$ 120 10.00%, 11/1/08 $ 126,000
-------------------------------------------------------------------------------
$ 126,000
-------------------------------------------------------------------------------
Paper and Forest Products -- 0.1%
-------------------------------------------------------------------------------
Bowater Canada Finance
$ 300 7.95%, 11/15/11 $ 308,157
-------------------------------------------------------------------------------
$ 308,157
-------------------------------------------------------------------------------
Printing and Business Products -- 0.2%
-------------------------------------------------------------------------------
MDC Communications Corp., Sr. Sub. Notes
$ 1,250 10.50%, 12/1/06 $ 918,750
-------------------------------------------------------------------------------
$ 918,750
-------------------------------------------------------------------------------
Printing or Publishing - Diversification -- 0.2%
-------------------------------------------------------------------------------
Von Hoffman Press, Inc., Sr. Sub. Notes
$ 750 10.875%, 5/15/07 $ 678,750
-------------------------------------------------------------------------------
$ 678,750
-------------------------------------------------------------------------------
Publishing -- 0.0%
-------------------------------------------------------------------------------
Hollinger International Publications, Inc.
$ 85 9.25%, 3/15/07 $ 84,681
-------------------------------------------------------------------------------
$ 84,681
-------------------------------------------------------------------------------
REITS -- 0.1%
-------------------------------------------------------------------------------
Felcor Lodging L.P., Sr. Sub Notes
$ 187 8.50%, 6/1/11 $ 180,455
Host Marriott L.P., Sr. Notes
375 9.50%, 1/15/07 377,344
-------------------------------------------------------------------------------
$ 557,799
-------------------------------------------------------------------------------
Restaurants -- 0.1%
-------------------------------------------------------------------------------
AFC Enterprises, Inc., Sr. Sub Notes
$ 510 10.25%, 5/15/07 $ 540,600
Sbarro, Inc.
30 11.00%, 9/15/09 28,950
-------------------------------------------------------------------------------
$ 569,550
-------------------------------------------------------------------------------
Retail - Food and Drug -- 0.1%
-------------------------------------------------------------------------------
Pantry, Inc., Sr. Sub. Notes
$ 600 10.25%, 10/15/07 $ 592,500
-------------------------------------------------------------------------------
$ 592,500
-------------------------------------------------------------------------------
Retail - General -- 0.2%
-------------------------------------------------------------------------------
Kindercare Learning Centers, Inc., Sr. Sub. Notes
$ 1,000 9.50%, 2/15/09 $ 960,000
-------------------------------------------------------------------------------
$ 960,000
-------------------------------------------------------------------------------
Semiconductor Equipment & Products -- 0.1%
-------------------------------------------------------------------------------
Amkor Technologies, Inc., Sr. Notes
$ 165 9.25%, 5/1/06 $ 158,400
225 9.25%, 2/15/08(1) 213,750
-------------------------------------------------------------------------------
$ 372,150
-------------------------------------------------------------------------------
Telecommunications - Services -- 0.0%
-------------------------------------------------------------------------------
Telewest Communication PLC, Debs.
$ 225 11.00%, 10/1/07 $ 163,125
-------------------------------------------------------------------------------
$ 163,125
-------------------------------------------------------------------------------
Transportation -- 0.1%
-------------------------------------------------------------------------------
Pacer International, Inc.
$ 555 11.75%, 6/1/07 $ 446,775
-------------------------------------------------------------------------------
$ 446,775
-------------------------------------------------------------------------------
Utilities -- 0.0%
-------------------------------------------------------------------------------
AES Corp., Sr. Notes
$ 205 8.75%, 12/15/02 $ 202,950
-------------------------------------------------------------------------------
$ 202,950
-------------------------------------------------------------------------------
Wireless Communication Services -- 0.2%
-------------------------------------------------------------------------------
Dobson/Signet Communications Corp.
$ 625 12.25%, 12/15/08 $ 671,875
Ubiquitel Operating Co.
150 14.00%, 4/15/10 81,000
-------------------------------------------------------------------------------
$ 752,875
-------------------------------------------------------------------------------
Wireless Equipment -- 0.1%
-------------------------------------------------------------------------------
SBA Communication Corp., Sr. Note
$ 265 10.25%, 2/1/09 $ 227,900
Spectrasite Holdings, Inc., Sr. Notes
30 10.75%, 3/15/10 14,850
-------------------------------------------------------------------------------
$ 242,750
-------------------------------------------------------------------------------
Wireline Communication Services -
North America -- 0.1%
-------------------------------------------------------------------------------
Metromedia Fiber Network, Sr. Notes
$ 500 10.00%, 11/15/08 $ 147,500
500 10.00%, 12/15/09 147,500
-------------------------------------------------------------------------------
$ 295,000
-------------------------------------------------------------------------------
Total Corporate Bonds & Notes
(identified cost $42,045,164) $ 39,769,620
-------------------------------------------------------------------------------
Stocks and Warrants -- 1.6%
Shares/Rights Security Value
-------------------------------------------------------------------------------
11,403 American Marketing Industries Holdings, Inc.* $ 0
4,887 American Marketing Industries Holdings, Inc.* 0
11,403 American Marketing Industries Holdings, Inc.* 0
32,537 Carlyle-Key Partners* 32,537
2,992 Enviromental Systems Products Common Stock* 0
509 Enviromental Systems Products Preferred Stock* 5,770
3,144 Exide Corp., Warrants* 0
90,043 IHDG Realty, Inc.* 0
90,043 Imperial Home Decor Group* 0
9 Kac Mezz Holdings, Class A, Warrants* 0
8 Kac Mezz Holdings, Class B, Warrants* 0
15 Key Plastics Holdings, Inc.* 15,231
163 Tokheim Corp.* 0
11,086 Tokheim Corp. Warrants* 0
925,000 Van Kampen Senior Income Trust 6,549,000
-------------------------------------------------------------------------------
Total Common Stocks and Warrants
(identified cost, $7,127,545) $ 6,602,538
-------------------------------------------------------------------------------
Commercial Paper -- 1.4%
Principal
Amount
(000's Omitted) Security Value
-------------------------------------------------------------------------------
General Electric Capital Corp.
$ 5,768 1.78%, 1/2/02 $ 5,767,715
-------------------------------------------------------------------------------
$ 5,767,715
-------------------------------------------------------------------------------
Total Commercial Paper
(identified cost $5,767,715) $ 5,767,715
-------------------------------------------------------------------------------
Total Investments -- 120.4%
(identified cost $515,955,788) $498,872,315
-------------------------------------------------------------------------------
Other Assets, Less Liabilities -- (20.4%) $(84,652,091)
-------------------------------------------------------------------------------
Net Assets -- 100% $414,220,224
-------------------------------------------------------------------------------
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Senior floating rate interests often require prepayments from excess cash
flows or permit the borrower to repay at its election. The degree to which
borrowers repay, whether as a contractual requirement or at their election,
cannot be predicted with accuracy. As a result, the actual remaining
maturity may be substantially less than the stated maturities shown.
However, it is anticipated that the senior floating rate interests will
have an expected average life of approximately two to four years.
* Non-income producing security.
Note: At December 31, 2001, the Trust had unfunded commitments amounting to
$7,038,097 under various credit agreements.
See notes to financial statements
Eaton Vance Senior Income Trust as of December 31, 2001
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2001
ASSETS
-------------------------------------------------------------------------------
Investments, at value
(identified cost, $515,955,788) $498,872,315
Cash 9,203,552
Receivable for investments sold 90,334
Dividends and interest receivable 3,298,268
Prepaid expenses 57,376
-------------------------------------------------------------------------------
Total assets $511,521,845
-------------------------------------------------------------------------------
LIABILITIES
-------------------------------------------------------------------------------
Amounts due under commercial paper program $ 95,000,000
Dividends payable 1,797,399
Miscellaneous liabilities 153,316
Payable to affiliate for Trustees' fees 5,290
Accrued expenses:
Interest 178,664
Operating expenses 166,952
-------------------------------------------------------------------------------
Total liabilities $ 97,301,621
-------------------------------------------------------------------------------
Net Assets $414,220,224
-------------------------------------------------------------------------------
SOURCES OF NET ASSETS
-------------------------------------------------------------------------------
Auction Preferred Shares, $0.01 par value; unlimited
number of shares authorized, 4,400 shares issued and
outstanding at $25,000 per share $110,000,000
Common Shares, $0.01 par value; unlimited number of
shares authorized, 35,948,079 shares issued and outstanding 359,481
Additional paid-in capital 356,878,145
Accumulated net realized loss (computed on the basis of
identified cost) (36,150,357
Accumulated undistributed net investment income 216,428
Net unrealized depreciation (computed on the basis of
identified cost) (17,083,473)
-------------------------------------------------------------------------------
Net Assets $414,220,224
-------------------------------------------------------------------------------
Net assets applicable to preferred shareholders --
Auction Preferred Shares at liquidation value $110,000,000
Cumulative undeclared dividends 31,040
-------------------------------------------------------------------------------
Total net assets $110,031,040
-------------------------------------------------------------------------------
Net assets applicable to common shareholders $304,189,184
-------------------------------------------------------------------------------
Total net assets $414,220,224
-------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE
-------------------------------------------------------------------------------
($304,189,184 / 35,948,079 common shares
issued and outstanding) $ 8.46
-------------------------------------------------------------------------------
See notes to financial statements
Eaton Vance Senior Income Trust as of December 31, 2001
FINANCIAL STATEMENTS
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2001
INVESTMENT INCOME
-------------------------------------------------------------------------------
Interest $ 18,687,686
Dividends 244,873
Facility fees earned 33,973
Miscellaneous 41,551
-------------------------------------------------------------------------------
Total investment income $ 19,008,083
-------------------------------------------------------------------------------
EXPENSES
-------------------------------------------------------------------------------
Investment adviser fee $ 2,225,300
Administration fee 654,033
Trustees' fees and expenses 10,436
Interest 1,637,062
Preferred shares remarketing agent fee 138,629
Legal and accounting services 104,012
Custodian fee 69,839
Printing and postage 54,133
Loan program structuring expense 44,407
Transfer and dividend disbursing agent fees 28,042
Registration fees 20,590
Miscellaneous 187,207
-------------------------------------------------------------------------------
Total expenses $ 5,173,690
-------------------------------------------------------------------------------
Net investment income $ 13,834,393
-------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS)
-------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $(16,114,219)
-------------------------------------------------------------------------------
Net realized loss $(16,114,219)
-------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 4,075,804
-------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 4,075,804
-------------------------------------------------------------------------------
Net realized and unrealized loss $(12,038,415
-------------------------------------------------------------------------------
Net increase in net assets from operations $ 1,795,978
-------------------------------------------------------------------------------
See notes to financial statements
Eaton Vance Senior Income Trust as of December 31, 2001
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
INCREASE (DECREASE) SIX MONTHS ENDED YEAR ENDED
IN NET ASSETS DECEMBER 31, 2001 JUNE 30, 2001
---------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 13,834,393 $ 31,119,007
Net realized loss (16,114,219) (18,671,667)
Net change in unrealized appreciation (depreciation) 4,075,804 (13,758,281)
---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 1,795,978 $ (1,310,941)
---------------------------------------------------------------------------------------------------------
Distributions to shareholders --
Preferred Shareholders --
From net investment income $ (1,713,602) $ --
Common Shareholders --
From net investment income (14,227,842) (31,484,729)
---------------------------------------------------------------------------------------------------------
Total distributions to shareholders $(15,941,444) $(31,484,729)
---------------------------------------------------------------------------------------------------------
Capital share transactions --
Proceeds from sale of preferred shares $ -- $110,000,000
Reinvestment of distributions to shareholders 721,050 1,875,187
Offering costs and preferred shares underwriting
discounts -- (1,237,500)
---------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions $ 721,050 $110,637,687
---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(13,424,416) $ 77,842,017
---------------------------------------------------------------------------------------------------------
NET ASSETS
---------------------------------------------------------------------------------------------------------
At beginning of period $427,644,640 $349,802,623
---------------------------------------------------------------------------------------------------------
At end of period $414,220,224 $427,644,640
---------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME
INCLUDED IN NET ASSETS
---------------------------------------------------------------------------------------------------------
At end of period $ 216,428 $ 2,390,529
---------------------------------------------------------------------------------------------------------
See notes to financial statements
Eaton Vance Senior Income Trust as of December 31, 2001
FINANCIAL STATEMENTS CONT'D
STATEMENT OF CASH FLOWS
Six Months Ended
Increase (Decrease) in Cash December 31, 2001
--------------------------------------------------------------------------------
Cash Flows From (Used For) Operating Activities --
Purchases of loan interests and corporate bonds $(158,797,288)
Proceeds from sales and principal repayments 139,055,222
Interest and dividends received 18,792,418
Miscellaneous income received 41,551
Interest paid (1,944,054)
Operating expenses paid (3,703,721)
Net increase in short-term investments (5,767,715)
--------------------------------------------------------------------------------
Net cash used for operating activities $ (12,323,587)
--------------------------------------------------------------------------------
Cash Flows From (Used For) Financing Activities --
Cash distributions paid (excluding reinvestments of $721,050) $ (13,422,995)
Net increase in amounts due under commercial paper program 24,000,000
--------------------------------------------------------------------------------
Net cash from financing activities $ 10,577,005
--------------------------------------------------------------------------------
Net decrease in cash $ (1,746,582)
--------------------------------------------------------------------------------
Cash at beginning of period $ 10,950,134
--------------------------------------------------------------------------------
Cash at end of period $ 9,203,552
--------------------------------------------------------------------------------
RECONCILIATION OF NET INCREASE IN NET ASSETS
FROM OPERATIONS TO NET CASH USED FOR
OPERATING ACTIVITIES
--------------------------------------------------------------------------------
Net increase in net assets from operations $ 1,795,978
Increase in receivable for investments sold (81,486)
Decrease in dividends and interest receivable 361,521
Decrease in prepaid expenses 6,659
Increase in deferred facility fee income (33,973)
Increase in miscellaneous liability 3,750
Decrease in payable to affiliate (145)
Decrease in accrued expenses (480,599)
Net increase in investments (13,895,292)
--------------------------------------------------------------------------------
Net cash used for operating activities $ (12,323,587)
--------------------------------------------------------------------------------
See notes to financial statements
Eaton Vance Senior Income Trust as of December 31, 2001
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
Selected data for a common share outstanding during periods stated
Year Ended June 30,
Six Months Ended --------------------------------------------------------
December 31, 2001(1)(2) 2001 2000 1999(1)(3)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of
period (Common Shares) $ 8.860 $ 9.810 $ 10.090 $ 10.000
--------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
--------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.385 $ 0.872 $ 0.868 $ 0.539
Net realized and unrealized gain (loss) (0.341) (0.908) (0.271) 0.036
--------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from operations $ 0.044 $ (0.036) $ 0.597 $ 0.575
--------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
--------------------------------------------------------------------------------------------------------------------------------
Preferred Shareholders --
From net investment income $ (0.048) $ -- $ -- $ --
Common Shareholders --
From net investment income (0.396) (0.882) (0.877) (0.465)
--------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.444) $ (0.882) $ (0.877) $ (0.465)
--------------------------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering
costs charged to paid-in capital $ -- $ (0.001) $ -- $ (0.020)
--------------------------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ -- $ (0.031) $ -- $ --
--------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period
(Common Shares) $ 8.460 $ 8.860 $ 9.810 $ 10.090
--------------------------------------------------------------------------------------------------------------------------------
Market value -- End of period (Common
Shares) $ 7.860 $ 8.940 $ 9.313 $ 10.000
--------------------------------------------------------------------------------------------------------------------------------
Total Return(4) (7.72)% 5.65% 2.00% 4.93%
--------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+,++
--------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $414,220 $427,645 $349,803 $359,705
Ratios (As a percentage of net assets
attributable to common shares):
Net expenses(5) 2.26%(6) 1.89% 1.84% 1.65%(6)
Interest expense 1.04%(6) 2.50% 2.41% 2.02%(6)
Total expenses(5) 3.30%(6) 4.39% 4.25% 3.67%(6)
Net investment income(5) 8.82%(6) 9.37% 8.73% 8.17%(6)
Portfolio Turnover 28% 37% 63% 27%
--------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Trust may reflect a reduction of the investment adviser fee and the administration fee. Had
such actions not been taken, the ratios and net investment income per share would have been as follows:
Ratios (As a percentage of net assets
attributable to common shares):
Expenses 1.97%(6)
Interest expense 2.02%(6)
Net investment income 7.85%(6)
Net investment income per share $ 0.518
++ The ratios reported above are based on net assets attributable solely to common shares. The ratios based on net assets,
including amounts related to preferred shares since the initial offering of the preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses(5) 1.67% 1.88%
Interest expense 0.77% 2.50%
Total expenses(5) 2.44% 4.38%
Net investment income(5) 6.52% 9.33%
--------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding $ 4,400 $ 4,400
Asset coverage per preferred shares(7) $ 94,141 $ 97,192
Involuntary liquidation preferred
per preferred share(8) $ 25,000 $ 25,000
Approximate market value per
preferred share(8) $ 25,000 $ 25,000
--------------------------------------------------------------------------------------------
(1) Net investment income per share was computed using average common shares outstanding.
(2) The Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began using the
interest method to amortize premiums on fixed-income securities. The effect of this change for the six months ended December
31, 2001 was to increase net investment income per share by $.001, increase net realized and unrealized losses per share by
$.001, and increase the ratio of net investment income to total average net assets from 6.51% to 6.52%. Per share data and
ratios for periods prior to July 1, 2001 have not been restated to reflect this change in presentation.
(3) For the period from the start of business, October 30, 1998, to June 30, 1999.
(4) Total return is calculated assuming a purchase at market value on the first day and a sale at the market value on the last day
of the period reported. Dividends and distributions, if any, are assumed reinvested on the reinvestment date. Total return is
not computed on an annualized basis.
(5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets attributable to
common shares reflect the Trust's leverage capital structure.
(6) Annualized.
(7) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's total assets,
and dividing this by the number of preferred shares outstanding.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
Eaton Vance Senior Income Trust as of December 31, 2001
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
-------------------------------------------------------------------------------
Eaton Vance Senior Income Trust (the Trust) is an entity commonly known as a
Massachusetts business trust and is registered under the Investment Company
Act of 1940 as a non-diversified closed-end management investment company.
The Trust's investment objective is to provide a high level of current
income consistent with the preservation of capital, by investing primarily
in senior, secured floating rate loans. The following is a summary of
significant accounting policies consistently followed by the Trust in the
preparation of its financial statements. The policies are in conformity with
accounting principles generally accepted in the United States of America.
Certain prior year amounts have been reclassified for presentation purposes.
A Investment Valuation -- The Trust's investments are primarily in interests
in senior floating rate loans (Senior Loans). Certain Senior Loans are
deemed liquid because reliable market quotations are readily available for
them. Liquid loans are valued on the basis of prices furnished by a pricing
service. Other Senior Loans are valued at fair value by the Trust's
investment adviser, Eaton Vance Management (EVM), under procedures
established by the Trustees as permitted by Section 2(a)(41) of the
Investment Company Act of 1940. Such procedures include the consideration of
relevant factors, data and information relating to fair value, including (i)
the characteristics of and fundamental analytical data relating to the
Senior Loan, including the cost, size, current interest rate, period until
next interest rate reset, maturity and base lending rate of the Senior Loan,
the terms and conditions of the Senior Loan and any related agreements and
the position of the loan in the borrower's debt structure; (ii) the nature,
adequacy and value of the collateral, including the Trust's rights, remedies
and interests with respect to the collateral; (iii) the creditworthiness of
the Borrower, based on evaluations of its financial condition, financial
statements and information about the Borrower's business, cash flows,
capital structure and future prospects; (iv) information relating to the
market for the Senior Loan including price quotations for and trading in the
Senior Loan and interests in similar loans and the market environment and
investor attitudes towards the Senior Loan and interests in similar loans;
(v) the reputation and financial condition of the agent and any intermediate
participant in the loan; and (vi) general economic and market conditions
affecting the fair value of the Senior Loan. Other portfolio securities
(other than short-term obligations, but including listed issues) may be
valued on the basis of prices furnished by one or more pricing services
which determine prices for normal, institutional-size trading units of such
securities using market information, transactions for comparable securities
and various relationships between securities which are generally recognized
by institutional traders. In certain circumstances, portfolio securities
will be valued at the last sales price on the exchange that is the primary
market for such securities, or the last quoted bid price for those
securities for which the over-the-counter market is the primary market or
for listed securities in which there were no sales during the day. The value
of interest rate swaps is determined by changes in the relationship between
two rates of interest. Short-term obligations which mature in sixty days or
less are valued at amortized cost, if their original term to maturity when
acquired by the Trust was 60 days or less or are valued at amortized cost
using their value on the 61st day prior to maturity, if their original term
to maturity when acquired by the Trust was more then 60 days, unless in each
case this is determined not to represent fair value. Repurchase agreements
are valued at cost plus accrued interest. Other portfolio securities for
which there are no quotations or valuations are valued at fair value as
determined in good faith by or on behalf of the Trustees.
B Income -- Interest income from Senior Loans is recorded on the accrual
basis at the then-current interest rate, while all other interest income is
determined on the basis of interest accrued, adjusted for amortization of
premium or discount. Facility fees received are recognized as income over
the expected term of the loan. Dividend income is recorded on the ex-
dividend date for dividends received in cash and/or securities. Effective
July 1, 2001 the Trust adopted the provision of the AICPA Audit and
Accounting Guide for Investment Companies, as revised, effective for fiscal
years beginning after December 15, 2000. As required, the Trust began
accreting market discounts and premiums on debt securities effective July 1,
2001. The cumulative effect of this accounting change had no impact on the
total net assets, but resulted in a $67,050 reduction in cost of securities
and a corresponding $67,050 increase in unrealized appreciation, based on
securities held by the Trust on December 31, 2001.
The effect of this change for the six months ended December 31, 2001 was to
increase net investment income by $17,041, increase net realized gain by
$35,292 and decrease net unrealized appreciation by $52,333.
The statement of changes in net assets and financial highlights for prior
periods have not been restated to reflect these changes in policy.
C Federal Taxes -- The Trust's policy is to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and
to distribute to shareholders each year all of its taxable income, including
any net realized gain on investments. Accordingly, no provision for federal
income or excise tax is necessary. At June 30, 2001, the Trust, for federal
income tax purposes, had a capital loss carryover of $1,925,241, which will
reduce the Trust's taxable income arising from future net realized gain on
investments, if any, to the extent permitted by the Internal Revenue Code
and thus will reduce the amount of distributions to shareholders that would
otherwise be necessary to relieve the Trust of any liability for federal
income or excise tax. Such capital loss carryover will expire on
June 30, 2009.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Trust. Pursuant to the custodian agreement, IBT receives a
fee reduced by credits which are determined based on the average daily cash
balances the Trust maintains with IBT. All significant credit balances used
to reduce the Trust's custodian fees are reported as a reduction of expenses
on the Statement of Operations.
E Use of Estimates -- The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
F Offering Costs -- Costs incurred by the Trust in connection with the
initial offering of Trust shares were recorded as a reduction of paid-in
capital.
G Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Gains and losses on securities sold are
determined on the basis of identified cost.
2 Auction Preferred Shares (APS)
-------------------------------------------------------------------------------
The Trust issued 2,200 shares of Auction Preferred Shares Series A and 2,200
shares of Auction Preferred Shares Series B on June 27, 2001 in a public
offering. The underwriting discount and other offering costs were recorded
as a reduction to paid in capital. Dividends on the APS, which accrue daily,
are paid cumulative at a rate which was established at the offering of the
APS and have been reset every 7 days thereafter by an auction. Dividend
rates at December 31, 2001 were 1.94% and 2.17% for Series A and Series B
Shares, respectively. Series A and Series B are identical in all respects
except for the dates of reset for the dividend rates.
The APS are redeemable at the option of the Trust, at a redemption price
equal to $25,000 per share, plus accumulated and unpaid dividends on any
dividend payment date. The APS are also subject to mandatory redemption at a
redemption price equal to $25,000 per share, plus accumulated and unpaid
dividends, if the Trust is in default on its asset maintenance requirements
with respect to the APS. If the dividends on the APS shall remain unpaid in
an amount equal to two full years' dividends, the holders of the APS as a
class have the right to elect a majority of the Board of Trustees. In
general, the holders of the APS and the common shares have equal voting
rights of one vote per share, except that the holders of the APS, as a
separate class, have the right to elect at least two members of the Board of
Trustees. The APS have a liquidation preference of $25,000 per share, plus
accumulated and unpaid dividends. The Trust is required to maintain certain
asset coverage with respect to the APS as defined in the Trust's By-Laws.
The Trust pays annual fees equivalent to 0.25% of the preferred shares'
liquidation value for the remarketing efforts associated with the preferred
auctions.
3 Distributions to Shareholders
-------------------------------------------------------------------------------
The Trust intends to make monthly distributions to common shareholders of
net investment income, after payment of any dividends on any outstanding
preferred shares. Distributions are recorded on the ex-dividend date.
Distributions to preferred shareholders are recorded daily and are payable
at the end of each dividend period. Each dividend payment period for the
Auction Preferred Shares is generally seven days. The applicable dividend
rate for the Auction Preferred Shares on December 31, 2001 was 1.94% and
2.17%, for Series A and Series B Shares, respectively. For the six months
ended December 31, 2001, the Trust paid dividends to Auction Preferred
shareholders amounting to $856,988 and $856,614 for Series A and Series B
Shares, respectively, representing an average APS dividend rate for such
period of 3.02% and 2.99%, respectively.
4 Common Shares of Beneficial Interest
-------------------------------------------------------------------------------
The agreement and Declaration of Trust permits the Trustees to issue an
unlimited number of full and fractional $0.01 par value common shares of
beneficial interest. Transactions in common shares were as follows:
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2001 JUNE 30, 2001
-------------------------------------------------------------------------
Issued to shareholders electing to
receive payments of distributions
in Fund common shares 81,797 206,282
-------------------------------------------------------------------------
Net increase 81,797 206,282
-------------------------------------------------------------------------
5 Investment Adviser Fee and Other Transactions with Affiliates
-------------------------------------------------------------------------------
The investment adviser fee, computed at a monthly rate of 17/240 of 1% (0.85%
annually) of the Trust's average weekly gross assets, was earned by EVM as
compensation for management and investment advisory services rendered to the
Trust. For the six months ended December 31, 2001, the fee was equivalent to
0.85% of the Trust's average daily gross assets and amounted to $2,225,300.
Except for Trustees of the Trust who are not members of EVM's organization,
officers and Trustees receive remuneration for their services to the Trust
out of such investment adviser fee. EVM also serves as the administrator of
the Trust. An administration fee, computed at the monthly rate of 1/48 of 1%
(0.25% annually) of the average weekly gross assets of the Trust, is paid to
EVM for managing and administering business affairs of the Trust. For the
six months ended December 31, 2001, the fee was equivalent to 0.25% of the
Trust's average daily gross assets for such period and amounted to $654,033.
Certain officers and Trustees of the Trust are officers of the above
organization.
During the six months ended December 31, 2001, the Trust engaged in purchase
transactions with other funds that also utilize EVM, or an affiliate of EVM,
as an investment adviser. These purchase transactions complied with Rule 17-
a7 under the Investment Company Act of 1940 and amounted to $10,000,000.
6 Investment Transactions
-------------------------------------------------------------------------------
The Trust invests primarily in Senior Loans. The ability of the issuers of
the Senior Loans held by the Trust to meet their obligations may be affected
by economic developments in a specific industry. The cost of purchases and
the proceeds from principal repayments and sales of Senior Loans and
corporate bonds aggregated $158,797,288 and $139,136,709, respectively, for
the six months ended December 31, 2001.
7 Short-Term Debt and Credit Agreements
-------------------------------------------------------------------------------
The Trust has entered into a revolving credit agreement that will allow the
Trust to borrow $120 million (reduced from $178 million on June 27, 2001) to
support the issuance of commercial paper and to permit the Trust to invest
in accordance with its investment practices. Interest is charged under the
revolving credit agreement at the bank's base rate or at an amount above
either the bank's adjusted certificate of deposit rate or federal funds
effective rate. Interest expense includes a commitment fee of approximately
$93,000 which is computed at the annual rate of 0.15% on the unused portion
of the revolving credit agreement. There were no significant borrowings
under this agreement during the period. As of December 31, 2001, the Trust
had commercial paper outstanding of $95,000,000, at an interest rate of
2.01%. Maximum and average borrowings for the six months ended December 31,
2001 were $110,000,000 and $99,000,000, respectively, and the average
interest rate was 3.15%.
8 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)
-------------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investment securities at December 31, 2001, as computed on a federal income
tax basis, were as follows:
Aggregate cost $515,955,788
--------------------------------------------------------------------------
Gross unrealized appreciation $ 1,881,080
Gross unrealized depreciation (18,964,553)
--------------------------------------------------------------------------
Net unrealized depreciation $(17,083,473)
--------------------------------------------------------------------------
9 Annual Meeting of Shareholders (Unaudited)
--------------------------------------------------------------------------------
The Trust held its Annual Meeting of Shareholders on October 26, 2001.
35,948,079 common shares and 4,400 Auction Preferred Shares (APS) were
outstanding on August 29, 2001, the record date for the shares eligible to
vote at the meeting. 33,324,729 common shares (92.702% of the record date
common shares) and 4,071 APS shares (92.522% of the record date APS shares)
were represented at the meeting. The following action was taken by the
shareholders:
Item 1: The election of Lynn A. Stout and Jack L. Treynor as Trustees of the
Trust:
Number of Shares
----------------------------
Nominees for Trustee For Withheld
-------------------------------------------------------------------
Lynn A. Stout 33,002,344 326,456
Jack L. Treynor 32,989,127 339,673
Eaton Vance Senior Income Trust as of December 31, 2001
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of
Eaton Vance Senior Income Trust
-------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Eaton Vance Senior Income Trust
(the Trust) as of December 31, 2001, and the related statements of operations
and cash flows for the six months then ended, the statements of changes in net
assets for the six months then ended and for the year ended June 30, 2001, and
the financial highlights for the six months then ended, for each of the two
years ended June 30, 2001 and for the period from October 30, 1998 (start of
business) to June 30, 1999. These financial statements and financial
highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities and Senior Loans owned at
December 31, 2001 by correspondence with the custodian, brokers and selling or
agent banks; where replies were not received from brokers and selling or agent
banks, we performed other auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights, referred
to above, present fairly, in all material respects, the financial position of
Eaton Vance Senior Income Trust as of December 31, 2001, the results of its
operations and its cash flows for the six months then ended, the changes in
its net assets for the six months then ended and for the year ended June 30,
2001 and its financial highlights for the six months then ended, for each of
the two years ended June 30, 2001 and for the period from October 30, 1998
(start of business) to June 30, 1999, in conformity with accounting principles
generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 15, 2002
Eaton Vance Senior Income Trust
DIVIDEND REINVESTMENT PLAN
The Trust offers a dividend reinvestment plan (the Plan) pursuant to which
shareholders automatically have dividends and capital gains distributions
reinvested in common shares (the Shares) of the Trust unless they elect
otherwise through their investment dealer. On the distribution payment date,
if the net asset value per Share is equal to or less than the market price per
Share plus estimated brokerage commissions then new Shares will be issued. The
number of Shares shall be determined by the greater of the net asset value per
Share or 95% of the market price. Otherwise, Shares generally will be
purchased on the open market by the Plan Agent. Distributions subject to
income tax (if any) are taxable whether or not shares are reinvested.
If your shares are in the name of a brokerage firm, bank, or other nominee,
you can ask the firm or nominee to participate in the Plan on your behalf. If
the nominee does not offer the Plan, you will need to request that your shares
be re-registered in your name with the Trust's transfer agent, PFPC Global
Fund Services or you will not be able to participate.
The Plan Agent's service fee for handling distributions will be paid by the
Trust. Each participant will be charged their pro rata share of brokerage
commissions on all open-market purchases.
Plan participants may withdraw from the Plan at any time by writing to the
Plan Agent at the address noted on the following page. If you withdraw, you
will receive shares in your name for all Shares credited to your account under
the Plan. If a participant elects by written notice to the Plan Agent to have
the Plan Agent sell part or all of his or her Shares and remit the proceeds,
the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions
from the proceeds.
If you wish to participate in the Plan and your shares are held in your own
name, you may complete the form on the following page and deliver it to the
Plan Agent.
Any inquires regarding the Plan can be directed to the Plan Agent, PFPC Global
Fund Services, at 1-800-331-1710.
Eaton Vance Senior Income Trust
APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN
-------------------------------------------------------------------------------
This form is for shareholders who hold their common shares in their own names.
If your common shares are held in the name of a brokerage firm, bank, or other
nominee, you should contact your nominee to see if it will participate in the
Plan on your behalf. If you wish to participate in the Plan, but your brokerage
firm, bank or nominee is unable to participate on your behalf, you should
request that your common shares be re-registered in your own name which will
enable your participation in the Plan.
-------------------------------------------------------------------------------
The following authorization and appointment is given with the understanding that
I may terminate it at any time by terminating my participation in the Plan as
provided in the terms and conditions of the Plan.
--------------------------------------
Please print exact name on account:
--------------------------------------
Shareholder signature Date
--------------------------------------
Shareholder signature Date
Please sign exactly as your common
shares are registered. All persons
whose names appear on the share
certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND
DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
THE AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING
ADDRESS:
Eaton Vance Senior Income Trust
c/o PFPC Global Fund Services
P.O. Box 8030
Boston, MA 02266-8030
800-331-1710
-------------------------------------------------------------------------------
NUMBER OF EMPLOYEES
The Trust is organized as a Massachusetts business trust and is registered
under the Investment Company Act of 1940, as amended, as a closed-end,
nondiversified, management investment company and has no employees.
NUMBER OF SHAREHOLDERS
As of December 31, 2001, our records indicate that there were 333 registered
shareholders for and approximately 16,682 shareholders owning the Trust shares
in street name, such as through brokers, banks, and financial intermediaries.
If you are a street name shareholder and wish to receive our reports directly,
which contain important information about the Trust, please write or call:
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265
NEW YORK STOCK EXHANGE SYMBOL
The New York Stock Exchange Symbol is EVF
Eaton Vance Senior Income Trust as of December 31, 2001
INVESTMENT MANAGEMENT
Eaton Vance Senior Income Trust
Officers Trustees
JAMES B. HAWKES JESSICA M. BIBLIOWICZ
President, Chief Executive President and Chief Executive Officer,
Officer and Trustee National Financial Partners
SCOTT H. PAGE DONALD R. DWIGHT
Vice President and President, Dwight Partners, Inc.
Co-Portfolio Manager
SAMUEL L. HAYES, III
PAYSON F. SWAFFIELD Jacob H. Schiff Professor of Investment
Vice President and Banking Emeritus, Harvard University
Co-Portfolio Manager Graduate School of Business Administration
JOHN P. REDDING NORTON H. REAMER
Vice President and Chairman and Chief Operating Officer,
Co-Portfolio Manager Hellman, Jordan Management Co., Inc.
President, Unicorn Corporation
MICHAEL W. WEILHEIMER
Vice President LYNN A. STOUT
Professor of Law,
UCLA School of Law
JAMES L. O'CONNOR
Treasurer
JACK L. TREYNOR
Investment Adviser and Consultant
ALAN R. DYNNER
Secretary
INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE SENIOR INCOME TRUST
EATON VANCE MANAGEMENT
THE EATON VANCE BUILDING
255 State Street
Boston, MA 02109
CUSTODIAN
INVESTORS BANK & Trust Company
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
PFPC, INC.
Attn: Eaton Vance Senior Income Trust
P.O. Box 8030
Boston, MA 02266-8030
(800) 331-1710
INDEPENDENT AUDITORS
DELOITTE & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
-------------------------------------------------------------------------------
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTON MANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial privacy.
This notice is being sent to comply with privacy regulations of the
Securities and Exchange Commission. Each of the above financial institutions
has in effect the following policy with respect to nonpublic personal
information about its customers:
o Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will be
collected.
o None of such information about you (or former customers) will be disclosed
to anyone, except as permitted by law (which includes disclosure to
employees necessary to service your account).
o Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality of
such information.
For more information about Eaton Vance's privacy policies, call:
1-800-262-1122
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EATON VANCE SENIOR INCOME TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
171-2/02 SITSRC