| NICHOLAS HIGH INCOME FUND, INC. | |||||
| SCHEDULE OF INVESTMENTS (UNAUDITED) | |||||
| AS OF SEPTEMBER 30, 2019 | |||||
| SHARES OR | |||||
| PRINCIPAL | |||||
| AMOUNT | VALUE | ||||
| --------------------- | ----------- | ||||
| NON-CONVERTIBLE BONDS - 91.33% | |||||
| Automotive - Parts & Equipment - 5.33% | |||||
| 1,500,000 | Allison Transmission, Inc. 144A restricted, | ||||
| 5.00%, 10/01/24 | $ 1,532,812 | ||||
| 1,500,000 | American Axle & Manufacturing, Inc. 6.25%, 04/01/25 | 1,456,875 | |||
| 1,000,000 | LKQ Corporation 4.75%, 05/15/23 | 1,012,500 | |||
| 1,500,000 | Panther BF Aggregator 2 LP 144A restricted, | ||||
| 6.25%, 05/15/26 | 1,578,750 | ||||
| ----------- | |||||
| 5,580,937 | |||||
| ----------- | |||||
| Banking - 1.12% | |||||
| 1,100,000 | CIT Group Inc. 5.00%, 08/01/23 | 1,171,500 | |||
| ----------- | |||||
| Basic Industry - Building & Construction - 1.52% | |||||
| 500,000 | KB Home 7.625%, 05/15/23 | 566,250 | |||
| 1,000,000 | Lennar Corporation 4.125%, 01/15/22 | 1,023,750 | |||
| ----------- | |||||
| 1,590,000 | |||||
| ----------- | |||||
| Basic Industry - Building Materials - 4.27% | |||||
| 1,250,000 | American Woodmark Corporation 144A restricted, | ||||
| 4.875%, 03/15/26 | 1,259,375 | ||||
| 1,500,000 | Beacon Roofing Supply, Inc. 6.375%, 10/01/23 | 1,548,750 | |||
| 100,000 | Beacon Roofing Supply, Inc. 144A restricted, | ||||
| 4.50%, 11/15/26 | 101,000 | ||||
| 1,000,000 | HD Supply, Inc. 144A restricted, 5.375%, 10/15/26 | 1,058,750 | |||
| 500,000 | JELD-WEN, Inc. 144A restricted, 4.625%, 12/15/25 | 501,890 | |||
| ----------- | |||||
| 4,469,765 | |||||
| ----------- | |||||
| Basic Industry - Chemicals - 4.88% | |||||
| 1,750,000 | Koppers Inc. 144A restricted, 6.00%, 02/15/25 | 1,751,102 | |||
| 1,500,000 | PolyOne Corporation 5.25%, 03/15/23 | 1,618,125 | |||
| 1,680,000 | Valvoline Inc. 5.50%, 07/15/24 | 1,747,200 | |||
| ----------- | |||||
| 5,116,427 | |||||
| ----------- | |||||
| Basic Industry - Forestry & Paper - 2.91% | |||||
| 1,500,000 | Louisiana-Pacific Corporation 4.875%, 09/15/24 | 1,548,750 | |||
| 1,000,000 | Mercer International Inc. 6.50%, 02/01/24 | 1,025,000 | |||
| 459,000 | Mercer International Inc. 7.75%, 12/01/22 | 476,786 | |||
| ----------- | |||||
| 3,050,536 | |||||
| ----------- | |||||
| Basic Industry - Metal/Mining Excluding Steel - 2.43% | |||||
| 500,000 | Alcoa Nederland Holding B.V. 144A restricted, | ||||
| 6.75%, 09/30/24 | 525,625 | ||||
| 1,000,000 | Arconic Inc. 5.125%, 10/01/24 | 1,065,000 | |||
| 1,000,000 | Grinding Media Inc. 144A restricted, 7.375%, 12/15/23 | 955,000 | |||
| ----------- | |||||
| 2,545,625 | |||||
| ----------- | |||||
| Basic Industry - Steel Producers & Products - 1.20% | |||||
| 1,500,000 | United States Steel Corporation 6.25%, 03/15/26 | 1,260,000 | |||
| ----------- | |||||
| Capital Goods - Diversified - 0.91% | |||||
| 1,000,000 | Park-Ohio Industries, Inc. 6.625%, 04/15/27 | 955,000 | |||
| ------------ | |||||
| Capital Goods - Machinery - 0.98% | |||||
| 1,000,000 | Terex Corporation 144A restricted, 5.625%, 02/01/25 | 1,026,250 | |||
| ------------ | |||||
| Capital Goods - Packaging - 4.03% | |||||
| 1,000,000 | Ball Corporation 5.25%, 07/01/25 | 1,106,250 | |||
| 500,000 | Ball Corporation 4.00%, 11/15/23 | 523,125 | |||
| 500,000 | Crown Americas LLC 4.25%, 09/30/26 | 517,500 | |||
| 1,500,000 | Reynolds Group Holdings Limited 144A restricted, | ||||
| 5.125%, 07/15/23 | 1,535,625 | ||||
| 500,000 | Sealed Air Corporation 144A restricted, 5.50%, 09/15/25 | 538,750 | |||
| ------------ | |||||
| 4,221,250 | |||||
| ------------ | |||||
| Consumer Goods - Food-Wholesale - 4.00% | |||||
| 1,000,000 | JBS USA, LLC/Finance, Inc. 144A restricted, | ||||
| 5.875%, 07/15/24 | 1,030,050 | ||||
| 1,000,000 | Lamb Weston Holdings, Inc. 144A restricted, | ||||
| 4.625%, 11/01/24 | 1,052,400 | ||||
| 1,000,000 | Lamb Weston Holdings, Inc. 144A restricted, | ||||
| 4.875%, 11/01/26 | 1,047,500 | ||||
| 1,000,000 | Post Holdings, Inc. 144A restricted, 5.625%, 01/15/28 | 1,060,000 | |||
| ------------ | |||||
| 4,189,950 | |||||
| ------------ | |||||
| Consumer Goods - Personal & Household Products - 0.49% | |||||
| 500,000 | Tempur Sealy International, Inc. 5.625%, 10/15/23 | 514,375 | |||
| ------------ | |||||
| Energy - Exploration & Production - 0.44% | |||||
| 500,000 | Oasis Petroleum Inc. 6.875%, 03/15/22 | 466,250 | |||
| ------------ | |||||
| Energy - Gas-Distribution - 5.14% | |||||
| 500,000 | Cheniere Corpus Christi Holdings, LLC 5.125%, 06/30/27 | 547,188 | |||
| 500,000 | Cheniere Energy Partners, L.P. 144A restricted, | ||||
| 4.50%, 10/01/29 | 511,875 | ||||
| 1,550,000 | MPLX LP 144A restricted, 5.25%, 01/15/25 | 1,636,118 | |||
| 1,400,000 | Suburban Propane Partners L.P. 5.50%, 06/01/24 | 1,428,000 | |||
| 1,000,000 | Transcontinental Gas Pipe Line Company, LLC | ||||
| 7.85%, 02/01/26 | 1,268,398 | ||||
| - | ------------ | ||||
| 5,391,579 | |||||
| - | ------------ | ||||
| Energy - Oil Field Equipment & Services - 0.49% | |||||
| 500,000 | Transocean Inc. 144A restricted, 9.00%, 07/15/23 | 513,750 | |||
| ------------ | |||||
| Financial Services - Brokerage - 1.98% | |||||
| 2,000,000 | LPL Holdings, Inc. 144A restricted, 5.75%, 09/15/25 | 2,080,000 | |||
| ------------ | |||||
| Financial Services - Consumer, Commercial & Lease | |||||
| Financing - 0.51% | |||||
| 500,000 | Springleaf Finance Corporation 6.125%, 03/15/24 | 538,125 | |||
| ------------ | |||||
| Healthcare - Facilities - 2.76% | |||||
| 1,000,000 | HCA Inc. 5.00%, 03/15/24 | 1,091,948 | |||
| 750,000 | HealthSouth Corporation 5.75%, 09/15/25 | 782,513 | |||
| 1,000,000 | Tenet Healthcare Corporation 5.125%, 05/01/25 | 1,013,800 | |||
| ------------ | |||||
| 2,888,261 | |||||
| ------------ | |||||
| Healthcare - Medical Products - 1.69% | |||||
| 1,725,000 | Teleflex Incorporated 5.25%, 06/15/24 | 1,776,750 | |||
| ------------ | |||||
| Healthcare - Pharmaceuticals - 0.41% | |||||
| 500,000 | Teva Pharmaceutical Finance Netherlands III B.V. | ||||
| 6.00%, 04/15/24 | 430,938 | ||||
| ------------ | |||||
| Healthcare - Services - 4.20% | |||||
| 1,000,000 | DaVita HealthCare Partners Inc. 5.125%, 07/15/24 | 1,016,250 | |||
| 1,750,000 | IQVIA Inc. 144A restricted, 5.00%, 05/15/27 | 1,833,125 | |||
| 1,500,000 | Service Corporation International 5.375%, 05/15/24 | 1,548,060 | |||
| ------------ | |||||
| 4,397,435 | |||||
| ------------ | |||||
| Leisure - Gaming - 1.06% | |||||
| 1,000,000 | International Game Technology PLC 144A restricted, | ||||
| 6.25%, 01/15/27 | 1,107,500 | ||||
| ------------ | |||||
| Leisure - Hotels - 1.50% | |||||
| 1,500,000 | Wyndham Hotels & Resorts, Inc. 144A restricted, | ||||
| 5.375%, 04/15/26 | 1,571,250 | ||||
| ------------ | |||||
| Leisure - Recreation & Travel - 0.49% | |||||
| 500,000 | Viking Ocean Cruises Ltd 144A restricted, | ||||
| 5.00%, 02/15/28 | 516,300 | ||||
| ------------ | |||||
| Leisure - Theaters & Entertainment - 0.97% | |||||
| 1,000,000 | Cinemark USA, Inc. 5.125%, 12/15/22 | 1,012,500 | |||
| ------------ | |||||
| Media - Cable & Satellite TV - 1.98% | |||||
| 500,000 | CCO Holdings, LLC 5.75%, 01/15/24 | 511,250 | |||
| 1,500,000 | CCO Holdings, LLC 144A restricted, 5.125%, 05/01/27 | 1,565,625 | |||
| ------------ | |||||
| 2,076,875 | |||||
| ------------ | |||||
| Media - Content - 1.96% | |||||
| 1,500,000 | AMC Networks Inc. 4.75%, 08/01/25 | 1,546,875 | |||
| 500,000 | Netflix, Inc. 4.375%, 11/15/26 | 506,525 | |||
| ------------ | |||||
| 2,053,400 | |||||
| ------------ | |||||
| Real Estate - REITs - 1.50% | |||||
| 1,000,000 | Brookfield Property REIT Inc. 144A restricted, | ||||
| 5.75%, 05/15/26 | 1,045,000 | ||||
| 500,000 | MPT Operating Partnership, L.P. 5.00%, 10/15/27 | 523,750 | |||
| ------------ | |||||
| 1,568,750 | |||||
| ------------ | |||||
| Retail - Specialty Retail - 2.44% | |||||
| 1,000,000 | Levi Strauss & Co. 5.00%, 05/01/25 | 1,038,560 | |||
| 500,000 | Murphy Oil USA, Inc. 4.75%, 09/15/29 | 511,250 | |||
| 1,000,000 | Wolverine World Wide, Inc. 144A restricted, | ||||
| 5.00%, 09/01/26 | 1,005,000 | ||||
| ------------ | |||||
| 2,554,810 | |||||
| ------------ | |||||
| Services - Environmental - 1.00% | |||||
| 1,000,000 | Covanta Holding Corporation 5.875%, 07/01/25 | 1,042,500 | |||
| ------------ | |||||
| Services - Support-Services - 11.91% | |||||
| 1,500,000 | ADT Corporation (The) 3.50%, 07/15/22 | 1,505,625 | |||
| 1,500,000 | Aramark Services, Inc. 5.125%, 01/15/24 | 1,548,750 | |||
| 500,000 | Hertz Corporation (The) 144A restricted, | ||||
| 7.625%, 06/01/22 | 520,625 | ||||
| 1,500,000 | IHS Markit Ltd. 144A restricted, 4.75%, 02/15/25 | 1,627,500 | |||
| 1,500,000 | Iron Mountain Incorporated 144A restricted, | ||||
| 4.875%, 09/15/27 | 1,534,020 | ||||
| 1,850,000 | KAR Auction Services, Inc. 144A restricted, | ||||
| 5.125%, 06/01/25 | 1,914,750 | ||||
| 1,500,000 | Ritchie Bros. Auctioneers Incorporated 144A restricted, | ||||
| 5.375%, 01/15/25 | 1,565,625 | ||||
| 673,000 | ServiceMaster Company, LLC (The) 144A restricted, | ||||
| 5.125%, 11/15/24 | 698,238 | ||||
| 1,500,000 | United Rentals (North America), Inc. 5.50%, 07/15/25 | 1,560,750 | |||
| ------------ | |||||
| 12,475,883 | |||||
| ------------ | |||||
| Technology & Electronics - Electronics - 1.04% | |||||
| 1,000,000 | Amkor Technology, Inc. 144A restricted, | ||||
| 6.625%, 09/15/27 | 1,090,000 | ||||
| ------------ | |||||
| Technology & Electronics - Hardware & Equipment - 2.95% | |||||
| 500,000 | CDW LLC 4.25%, 04/01/28 | 510,050 | |||
| 725,000 | CDW LLC 5.00%, 09/01/23 | 743,415 | |||
| 750,000 | CDW LLC 5.50%, 12/01/24 | 825,750 | |||
| 1,000,000 | NCR Corporation 5.875%, 12/15/21 | 1,007,500 | |||
| ------------ | |||||
| 3,086,715 | |||||
| ------------ | |||||
| Technology & Electronics - Software & Services - 1.00% | |||||
| 1,000,000 | SS&C Technologies, Inc. 144A restricted, | ||||
| 5.50%, 09/30/27 | 1,045,025 | ||||
| ------------ | |||||
| Telecommunications - Wireless - 1.48% | |||||
| 500,000 | SBA Communications Corporation 4.875%, 09/01/24 | 517,500 | |||
| 1,000,000 | T-Mobile USA, Inc. 4.50%, 02/01/26 | 1,029,300 | |||
| ------------ | |||||
| 1,546,800 | |||||
| ------------ | |||||
| Telecommunications - Wireline Integrated & | |||||
| Services - 5.65% | |||||
| 1,000,000 | Cincinnati Bell Inc. 144A restricted, 7.00%, 07/15/24 | 925,000 | |||
| 1,800,000 | CyrusOne LP 5.00%, 03/15/24 | 1,863,000 | |||
| 1,500,000 | Equinix, Inc. 5.875%, 01/15/26 | 1,595,865 | |||
| 1,500,000 | Zayo Group, LLC 6.00%, 04/01/23 | 1,539,375 | |||
| ------------ | |||||
| 5,923,240 | |||||
| ------------ | |||||
| Transportation - Infrastructure/Services - 1.72% | |||||
| 250,000 | XPO Logistics, Inc. 144A restricted, 6.50%, 06/15/22 | 254,875 | |||
| 1,500,000 | XPO Logistics, Inc. 144A restricted, 6.125%, 09/01/23 | 1,548,750 | |||
| ------------ | |||||
| 1,803,625 | |||||
| ------------ | |||||
| Utility - Electric-Generation - 0.99% | |||||
| 500,000 | Dynegy Inc. 5.875%, 06/01/23 | 510,750 | |||
| 500,000 | Vistra Operations Company LLC 144A restricted, | ||||
| 5.50%, 09/01/26 | 523,100 | ||||
| ------------ | |||||
| 1,033,850 | |||||
| ------------ | ||||||
| TOTAL CORPORATE BONDS (cost $93,491,523) | 95,683,726 | |||||
| ------------ | ||||||
| CONVERTIBLE PREFERRED STOCKS - 0.54% | ||||||
| 21,859 | Digital Realty Trust, Inc. 5.25%, Cumulative, | |||||
| Redeemable, Series J (cost $523,346) | 566,367 | |||||
| ------------ | ||||||
| COMMON STOCKS - 1.36% | ||||||
| Consumer Services - Telecommunications Services - 0.52% | ||||||
| 9,000 | Verizon Communications Inc. | 543,240 | ||||
| ------------ | ||||||
| Other - 0.40% | ||||||
| 32,000 | Eaton Vance Floating-Rate Income Trust | 423,040 | ||||
| ------------ | ||||||
| Real Estate - 0.44% | ||||||
| 16,500 | Weyerhaeuser Company | 457,050 | ||||
| ------------ | ||||||
| TOTAL COMMON STOCKS (cost $1,365,703) | 1,423,330 | |||||
| ------------ | ||||||
| SHORT-TERM INVESTMENTS - 6.27% | ||||||
| U.S. Government Securities - 4.68% | ||||||
| 1,200,000 | U.S. Treasury Bill 10/01/2019 1.984% | 1,200,000 | ||||
| 1,200,000 | U.S. Treasury Bill 10/08/2019, 1.943% | 1,199,554 | ||||
| 1,300,000 | U.S. Treasury Bill 10/15/2019, 1.863% | 1,299,074 | ||||
| 1,200,000 | U.S. Treasury Bill 10/22/2019, 1.751% | 1,198,796 | ||||
| ------------ | ||||||
| 4,897,424 | ||||||
| ------------ | ||||||
| Money Market Fund - 1.59% | ||||||
| 1,665,831 | Morgan Stanley Liquidity Funds Government | |||||
| Portfolio (Institutional Class), | ||||||
| 7-day net yield 1.85% | 1,665,831 | |||||
| ------------ | ||||||
| TOTAL SHORT-TERM INVESTMENTS | 6,563,255 | |||||
| (cost $6,563,255) | ------------ | |||||
| TOTAL INVESTMENTS | ||||||
| (cost $101,943,827) - 99.50% | 104,236,678 | |||||
| ------------ | ||||||
| OTHER ASSETS, NET OF LIABILITIES - 0.50% | 527,696 | |||||
| ------------ | ||||||
| TOTAL NET ASSETS | ||||||
| (basis of percentages disclosed | ||||||
| above) - 100% | $104,764,374 | |||||
| ------------ | ||||||
| ------------ | ||||||
| % of net assets. | ||||||
| As of September 30, 2019, investment cost for federal tax purposes was | ||||||
| $101,970,942 and the tax basis components of unrealized | ||||||
| appreciation/depreciation were as follows: | ||||||
| Unrealized appreciation | $2,965,501 | |||||
| Unrealized depreciation | (699,765 | ) | ||||
| ---------- | ||||||
| Net unrealized appreciation | $2,265,736 | |||||
| ---------- | ||||||
| ---------- | ||||||
For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent Semiannual or Annual Report to Shareholders.
Various inputs are used in determining the value of the Fund's investments relating to Accounting Standards Codification 820-10.
The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of September 30, 2019 in valuing the Fund’s investments carried at value:
| Investments | ||
| Valuation Inputs | in Securities | |
| ---------------- | -------------- | |
| Level 1 - | ||
| Common Stocks(1) | $ 1,423,330 | |
| Money Market Fund | 1,665,831 | |
| Level 2 - | ||
| Corporate Bonds(1) | 95,683,726 | |
| U.S. Government Securities | 4,897,424 | |
| Convertible Preferred Stock(1) | 566,367 | |
| Level 3 - | ||
| None | -- | |
| ------------ | ||
| Total | $104,236,678 | |
| ------------ | ||
| ------------ | ||
| (1) See Schedule above for further detail by industry. | ||
