First Trust Senior Floating Rate 2022 Target Term Fund (FIV)
Portfolio of Investments
August 31, 2021 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (c) – 108.5% | ||||||||
Aerospace & Defense – 3.4% | ||||||||
$12,083,225 | Transdigm, Inc., Tranche G Refinancing TL, 1 Mo. LIBOR + 2.25%, 0.00% Floor | 2.33% | 08/22/24 | $11,909,589 | ||||
Application Software – 15.3% | ||||||||
3,920,276 | CCC Information Services, Inc. (Cypress), Term Loan B, 1 Mo. LIBOR + 3.00%, 1.00% Floor | 4.00% | 04/26/24 | 3,918,629 | ||||
9,213,201 | Hyland Software, Inc., Term Loan B, 1 Mo. LIBOR + 3.50%, 0.75% Floor | 4.25% | 07/01/24 | 9,214,214 | ||||
1,570,756 | Inmar, Inc., Term Loan B, 3 Mo. LIBOR + 4.00%, 1.00% Floor | 5.00% | 05/01/24 | 1,568,793 | ||||
3,958,088 | Internet Brands, Inc. (Web MD/MH Sub I, LLC), 2020 June New Term Loan, 1 Mo. LIBOR + 3.75%, 1.00% Floor | 4.75% | 09/15/24 | 3,962,323 | ||||
12,514,012 | Internet Brands, Inc. (Web MD/MH Sub I, LLC), Initial Term Loan, 1 Mo. LIBOR + 3.50%, 0.00% Floor | 3.58% | 09/13/24 | 12,434,423 | ||||
3,003,335 | McAfee, LLC, Term Loan B, 1 Mo. LIBOR + 3.75%, 0.00% Floor | 3.83% | 09/30/24 | 3,002,974 | ||||
19,083,824 | SolarWinds Holdings, Inc., Initial Term Loan, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.83% | 02/05/24 | 18,817,414 | ||||
52,918,770 | ||||||||
Broadcasting – 9.0% | ||||||||
763,206 | Cumulus Media Holdings, Inc., Term Loan B, 3 Mo. LIBOR + 3.75%, 1.00% Floor | 4.75% | 03/31/26 | 760,481 | ||||
13,038,352 | Nexstar Broadcasting, Inc., Nexstar Term Loan B-3, 1 Mo. LIBOR + 2.25%, 0.00% Floor | 2.33% | 01/17/24 | 12,987,111 | ||||
6,282,373 | Sinclair Television Group, Inc., Term Loan B-2, 1 Mo. LIBOR + 2.25%, 0.00% Floor | 2.34% | 01/03/24 | 6,146,234 | ||||
11,284,968 | Univision Communications, Inc., 2017 Replacement Repriced First Lien Term Loan C-5, 1 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 03/15/24 | 11,236,556 | ||||
31,130,382 | ||||||||
Cable & Satellite – 2.0% | ||||||||
2,219,440 | Cablevision (aka CSC Holdings, LLC), March 2017 Term Loan B-1, 1 Mo. LIBOR + 2.25%, 0.00% Floor | 2.35% | 07/17/25 | 2,185,350 | ||||
4,753,860 | WideOpenWest Finance, LLC, Term Loan B, 1 Mo. LIBOR + 3.25%, 1.00% Floor | 4.25% | 08/19/23 | 4,743,686 | ||||
6,929,036 | ||||||||
Casinos & Gaming – 18.2% | ||||||||
3,000,000 | Aristocrat Technologies, Inc., Term B-3 Loan, 3 Mo. LIBOR + 1.75%, 0.00% Floor | 1.88% | 10/19/24 | 2,971,890 | ||||
438,509 | Caesars Resort Collection, LLC, Term B-1 Loans, 1 Mo. LIBOR + 4.50%, 0.00% Floor | 4.58% | 06/30/25 | 439,101 | ||||
17,868,734 | Caesars Resort Collection, LLC, Term Loan B, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.83% | 12/22/24 | 17,708,273 | ||||
15,956,720 | CityCenter Holdings, LLC, Term Loan B, 1 Mo. LIBOR + 2.25%, 0.75% Floor | 3.00% | 04/18/24 | 15,915,552 | ||||
11,313,901 | Golden Nugget, Inc., Term Loan B, 2 Mo. LIBOR + 2.50%, 0.75% Floor | 3.25% | 10/04/23 | 11,233,346 | ||||
15,145,569 | Scientific Games International, Inc., Term Loan B5, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.83% | 08/14/24 | 15,000,928 | ||||
63,269,090 | ||||||||
Coal & Consumable Fuels – 1.0% | ||||||||
3,874,339 | Arch Coal, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 03/07/24 | 3,603,135 |
First Trust Senior Floating Rate 2022 Target Term Fund (FIV)
Portfolio of Investments (Continued)
August 31, 2021 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (c) (Continued) | ||||||||
Communications Equipment – 0.2% | ||||||||
$846,915 | Commscope, Inc., Term Loan B, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.33% | 04/06/26 | $836,540 | ||||
Electric Utilities – 0.5% | ||||||||
1,805,045 | PG&E Corp., Term Loan B, 3 Mo. LIBOR + 3.00%, 0.50% Floor | 3.50% | 06/23/25 | 1,726,833 | ||||
Food Distributors – 2.0% | ||||||||
6,954,032 | US Foods, Inc., Term Loan B, 1 Mo. LIBOR + 1.75%, 0.00% Floor | 1.83% | 06/27/23 | 6,869,610 | ||||
Health Care Facilities – 1.3% | ||||||||
4,697,055 | Select Medical Corporation, Term Loan B, 1 Mo. LIBOR + 2.25%, 0.00% Floor | 2.34% | 03/06/25 | 4,661,827 | ||||
Health Care Services – 14.4% | ||||||||
2,152,153 | Air Methods Corp., Term Loan B, 3 Mo. LIBOR + 3.50%, 1.00% Floor | 4.50% | 04/21/24 | 2,113,587 | ||||
13,388 | athenahealth, Inc. (VVC Holding Corp.), Term Loan B-1, 2 Mo. LIBOR + 4.25%, 0.00% Floor | 4.35% | 02/11/26 | 13,421 | ||||
5,328,390 | athenahealth, Inc. (VVC Holding Corp.), Term Loan B-1, 3 Mo. LIBOR + 4.25%, 0.00% Floor | 4.38% | 02/11/26 | 5,341,711 | ||||
15,920,696 | CHG Healthcare Services, Inc., Term Loan, 3 Mo. LIBOR + 3.00%, 1.00% Floor | 4.00% | 06/07/23 | 15,896,337 | ||||
3,871,466 | Envision Healthcare Corporation, Initial Term Loan, 1 Mo. LIBOR + 3.75%, 0.00% Floor | 3.83% | 10/10/25 | 3,394,811 | ||||
16,263,923 | Exam Works (Gold Merger Co., Inc.), Term B-1 Loan, 1 Mo. LIBOR + 3.25%, 1.00% Floor | 4.25% | 07/27/23 | 16,248,635 | ||||
3,066,106 | Team Health, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 02/06/24 | 2,977,526 | ||||
3,979,274 | U.S. Anesthesia Partners Intermediate Holdings, Inc., Term Loan B, 3 Mo. LIBOR + 3.00%, 1.00% Floor | 4.00% | 06/23/24 | 3,942,784 | ||||
49,928,812 | ||||||||
Health Care Technology – 6.3% | ||||||||
315,292 | Change Healthcare Holdings, LLC, Closing Date Term Loan, 1 Mo. LIBOR + 2.50%, 1.00% Floor | 3.50% | 03/01/24 | 314,504 | ||||
15,148,670 | Change Healthcare Holdings, LLC, Closing Date Term Loan, 3 Mo. LIBOR + 2.50%, 1.00% Floor | 3.50% | 03/01/24 | 15,110,799 | ||||
1,701 | Press Ganey (Azalea TopCo, Inc.), Term Loan B, 1 Mo. LIBOR + 3.50%, 0.00% Floor | 3.58% | 07/25/26 | 1,682 | ||||
666,724 | Press Ganey (Azalea TopCo, Inc.), Term Loan B, 3 Mo. LIBOR + 3.50%, 0.00% Floor | 3.63% | 07/25/26 | 659,389 | ||||
5,735,982 | Verscend Technologies, Inc. (Cotiviti), New Term Loan B-1, 1 Mo. LIBOR + 4.00%, 0.00% Floor | 4.08% | 08/27/25 | 5,723,076 | ||||
21,809,450 | ||||||||
Hotels, Resorts & Cruise Lines – 2.3% | ||||||||
8,084,144 | Four Seasons Holdings, Inc., Term Loan B, 1 Mo. LIBOR + 2.00%, 0.00% Floor | 2.08% | 11/30/23 | 8,022,219 | ||||
Insurance Brokers – 5.8% | ||||||||
2,062,383 | Alliant Holdings I, LLC, 2019 New Term Loan, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.33% | 05/10/25 | 2,038,026 | ||||
3,248,663 | Alliant Holdings I, LLC, Initial Term Loan, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.33% | 05/09/25 | 3,212,116 | ||||
16,338 | HUB International Limited, Initial Term Loan B, 2 Mo. LIBOR + 2.75%, 0.00% Floor | 2.86% | 04/25/25 | 16,144 |
First Trust Senior Floating Rate 2022 Target Term Fund (FIV)
Portfolio of Investments (Continued)
August 31, 2021 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (c) (Continued) | ||||||||
Insurance Brokers (Continued) | ||||||||
$6,322,899 | HUB International Limited, Initial Term Loan B, 3 Mo. LIBOR + 2.75%, 0.00% Floor | 2.88% | 04/25/25 | $6,247,530 | ||||
2,030,181 | HUB International Limited, New Term Loan B-3, 3 Mo. LIBOR + 3.25%, 0.75% Floor | 4.00% | 04/25/25 | 2,027,481 | ||||
6,688,392 | USI, Inc. (fka Compass Investors, Inc.), Term Loan B, 3 Mo. LIBOR + 3.00%, 0.00% Floor | 3.15% | 05/15/24 | 6,626,524 | ||||
20,167,821 | ||||||||
Integrated Telecommunication Services – 0.2% | ||||||||
716,055 | Numericable (Altice France SA or SFR), Term Loan B-11, 3 Mo. LIBOR + 2.75%, 0.00% Floor | 2.94% | 07/31/25 | 703,524 | ||||
Movies & Entertainment – 2.0% | ||||||||
541,855 | Cineworld Group PLC (Crown), New Priority Term Loan, 3 Mo. LIBOR + 8.25%, 1.00% Floor | 9.25% | 05/23/24 | 577,753 | ||||
935,353 | Cineworld Group PLC (Crown), Priority Term Loan B-1, Fixed Rate at 15.25% (d) | 15.25% | 05/23/24 | 1,149,259 | ||||
6,674,786 | Cineworld Group PLC (Crown), Term Loan B, 3 Mo. LIBOR + 2.50%, 1.00% Floor | 3.50% | 02/28/25 | 5,193,450 | ||||
6,920,462 | ||||||||
Packaged Foods & Meats – 3.3% | ||||||||
3,005,216 | Hostess Brands, LLC (HB Holdings), Term Loan B, 1 Mo. LIBOR + 2.25%, 0.75% Floor | 3.00% | 08/03/25 | 2,986,433 | ||||
27,967 | Hostess Brands, LLC (HB Holdings), Term Loan B, 2 Mo. LIBOR + 2.25%, 0.75% Floor | 3.00% | 08/03/25 | 27,792 | ||||
7,957,691 | Hostess Brands, LLC (HB Holdings), Term Loan B, 3 Mo. LIBOR + 2.25%, 0.75% Floor | 3.00% | 08/03/25 | 7,907,956 | ||||
530,226 | Simply Good Foods (Atkins Nutritionals, Inc.), Term Loan B, 1 Mo. LIBOR + 3.75%, 1.00% Floor | 4.75% | 07/07/24 | 531,329 | ||||
11,453,510 | ||||||||
Paper Packaging – 5.0% | ||||||||
17,342,206 | Pactiv LLC/Evergreen Packaging, LLC (fka Reynolds Group Holdings), Tranche B-1 U.S. Term Loan, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.83% | 02/05/23 | 17,231,043 | ||||
Pharmaceuticals – 6.8% | ||||||||
1,194,429 | Akorn, Inc., Exit Take Back Term Loan, 3 Mo. LIBOR + 7.50%, 1.00% Floor (e) | 8.50% | 09/30/25 | 1,211,223 | ||||
4,817,267 | Bausch Health Companies, Inc. (Valeant), First Incremental Term Loan, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.83% | 06/01/25 | 4,787,159 | ||||
6,090,530 | Bausch Health Companies, Inc. (Valeant), Initial Term Loan B, 1 Mo. LIBOR + 3.00%, 0.00% Floor | 3.08% | 06/01/25 | 6,066,716 | ||||
2,430,124 | GoodRX, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.83% | 10/15/25 | 2,417,463 | ||||
8,242,120 | Mallinckrodt International Finance S.A., 2017 Term Loan B, 6 Mo. LIBOR + 5.25%, 0.75% Floor (f) | 6.00% | 09/24/24 | 7,992,961 | ||||
1,091,445 | Mallinckrodt International Finance S.A., 2018 Incremental Term Loan, 3 Mo. LIBOR + 5.50%, 0.75% Floor (f) | 6.25% | 02/24/25 | 1,058,931 | ||||
23,534,453 | ||||||||
Restaurants – 1.5% | ||||||||
5,306,572 | IRB Holding Corp. (Arby’s/Inspire Brands), Term Loan B, 3 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 02/05/25 | 5,285,027 |
First Trust Senior Floating Rate 2022 Target Term Fund (FIV)
Portfolio of Investments (Continued)
August 31, 2021 (Unaudited)
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (c) (Continued) | ||||||||
Specialized Consumer Services – 4.6% | ||||||||
$16,030,334 | Asurion, LLC, Term Loan B6, 1 Mo. LIBOR + 3.13%, 0.00% Floor | 3.21% | 11/03/23 | $15,853,360 | ||||
Systems Software – 3.4% | ||||||||
5,569,573 | Applied Systems, Inc., 1st Lien Term Loan, 3 Mo. LIBOR + 3.25%, 0.50% Floor | 3.75% | 09/19/24 | 5,560,272 | ||||
3,892,437 | BMC Software Finance, Inc. (Boxer Parent), Term Loan B, 1 Mo. LIBOR + 3.75%, 0.00% Floor | 3.83% | 10/02/25 | 3,865,268 | ||||
348,411 | Misys Financial Software Ltd. (Almonde, Inc.) (Finastra), Term Loan B, 3 Mo. LIBOR + 3.50%, 1.00% Floor | 4.50% | 06/13/24 | 344,014 | ||||
891,766 | Misys Financial Software Ltd. (Almonde, Inc.) (Finastra), Term Loan B, 6 Mo. LIBOR + 3.50%, 1.00% Floor | 4.50% | 06/13/24 | 880,512 | ||||
1,257,876 | SUSE (Marcel Lux IV SARL), Facility B1 USD, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.33% | 03/15/26 | 1,251,058 | ||||
11,901,124 | ||||||||
Total Senior Floating-Rate Loan Interests | 376,665,617 | |||||||
(Cost $378,686,508) | ||||||||
Principal Value | Description | Stated Coupon | Stated Maturity | Value | ||||
CORPORATE BONDS AND NOTES (c) – 0.3% | ||||||||
Broadcasting – 0.2% | ||||||||
1,290,000 | Diamond Sports Group, LLC/Diamond Sports Finance Co. (g) | 5.38% | 08/15/26 | 857,141 | ||||
Coal & Consumable Fuels – 0.1% | ||||||||
280,000 | Peabody Energy Corp. (g) | 6.38% | 03/31/25 | 222,950 | ||||
Total Corporate Bonds and Notes | 1,080,091 | |||||||
(Cost $1,076,001) |
Shares | Description | Value | ||
COMMON STOCKS (c) – 0.4% | ||||
Pharmaceuticals – 0.4% | ||||
101,688 | Akorn, Inc. (h) (i) | 1,296,522 | ||
(Cost $1,166,044) | ||||
WARRANTS (c) – 0.0% | ||||
Movies & Entertainment – 0.0% | ||||
286,831 | Cineworld Group PLC (Crown), expiring 12/10/25 (i) (j) | 141,966 | ||
(Cost $0) | ||||
MONEY MARKET FUNDS (c) – 0.7% | ||||
2,350,558 | Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (k) | 2,350,558 | ||
(Cost $2,350,558) | ||||
Total Investments – 109.9% | 381,534,754 | |||
(Cost $383,279,111) (l) | ||||
Outstanding Loans – (19.3)% | (67,000,000) | |||
Net Other Assets and Liabilities – 9.4% | 32,550,927 | |||
Net Assets – 100.0% | $347,085,681 |
First Trust Senior Floating Rate 2022 Target Term Fund (FIV)
Portfolio of Investments (Continued)
August 31, 2021 (Unaudited)
(a) | Senior Floating-Rate Loan Interests (“Senior Loans”) in which the Fund invests pay interest at rates which are periodically predetermined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as the LIBOR, (ii) the prime rate offered by one or more United States banks or (iii) the certificate of deposit rate. Certain Senior Loans are subject to a LIBOR floor that establishes a minimum LIBOR rate. When a range of rates is disclosed, the Fund holds more than one contract within the same tranche with identical LIBOR period, spread and floor, but different LIBOR reset dates. |
(b) | Senior Loans generally are subject to mandatory and/or optional prepayment. As a result, the actual remaining maturity of Senior Loans may be substantially less than the stated maturities shown. |
(c) | All of these securities are available to serve as collateral for the outstanding loans. |
(d) | The issuer will pay interest on the loans in cash and in Payment-In-Kind (“PIK”) interest. Interest paid in cash will accrue at the rate of 7.00% per annum (“Cash Interest Rate”) and PIK interest will accrue on the loan at the rate of 8.25% per annum. For the fiscal year-to-date period (June 1, 2021 through August 31, 2021), the Fund received a portion of the interest in cash and PIK interest with a principal value of $19,108 for Cineworld Group PLC (Crown). |
(e) | The issuer may pay interest on the loans (1) entirely in cash or (2) in the event that both the PIK Toggle Condition has been satisfied and the issuer elects to exercise the PIK interest, 2.50% payable in cash and 7.00% payable as PIK interest. For the fiscal year-to-date period (June 1, 2021 to August 31, 2021), this security paid all of its interest in cash. |
(f) | This issuer has filed for protection in bankruptcy court. |
(g) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A under the Securities Act of 1933, as amended (the “1933 Act”), and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Fund’s Board of Trustees, this security has been determined to be liquid by First Trust Advisors L.P. (the “Advisor”). Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and assumptions, which require subjective judgment. At August 31, 2021, securities noted as such amounted to $1,080,091 or 0.3% of net assets. |
(h) | Security received in a transaction exempt from registration under the 1933 Act. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. Pursuant to procedures adopted by the Trust’s Board of Trustees, this security has been determined to be illiquid by the Advisor. Although market instability can result in periods of increased overall market illiquidity, liquidity for the security is determined based on security-specific factors and assumptions, which require subjective judgment. At August 31, 2021, securities noted as such amounted to $1,296,522 or 0.4% of net assets. |
(i) | Non-income producing security. |
(j) | Pursuant to procedures adopted by the Fund’s Board of Trustees, this security has been determined to be illiquid by the Advisor. |
(k) | Rate shown reflects yield as of August 31, 2021. |
(l) | Aggregate cost for financial reporting purposes approximates the aggregate cost for federal income tax purposes. As of August 31, 2021, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $1,610,253 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $3,354,610. The net unrealized depreciation was $1,744,357. |
LIBOR | London Interbank Offered Rate |
USD | United States Dollar |
Valuation Inputs
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
• | Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. |
• | Level 2 – Level 2 inputs are observable inputs, either directly or indirectly. (Quoted prices for similar investments, valuations based on interest rates and yield curves, or valuations derived from observable market data.) |
• | Level 3 – Level 3 inputs are unobservable inputs that may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment. |
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
First Trust Senior Floating Rate 2022 Target Term Fund (FIV)
Portfolio of Investments (Continued)
August 31, 2021 (Unaudited)
A summary of the inputs used to value the Fund’s investments as of August 31, 2021 is as follows:
Total Value at 8/31/2021 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Senior Floating-Rate Loan Interests* | $ 376,665,617 | $ — | $ 376,665,617 | $ — |
Corporate Bonds and Notes* | 1,080,091 | — | 1,080,091 | — |
Common Stocks* | 1,296,522 | — | 1,296,522 | — |
Warrants* | 141,966 | — | 141,966 | — |
Money Market Funds | 2,350,558 | 2,350,558 | — | — |
Total Investments | $ 381,534,754 | $ 2,350,558 | $ 379,184,196 | $— |
* | See Portfolio of Investments for industry breakout. |