UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-09373
OPPENHEIMER SENIOR FLOATING RATE FUND
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: July 31
Date of reporting period: August 1, 2002 - July 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS July 31, 2003
Principal Market Value
Amount See Note 1
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Corporate Loans--108.1%
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Consumer Discretionary--31.7%
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Auto Components--5.8%
Collins & Aikman Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.25%, 12/21/05 1 $ 1,921,453 $ 1,914,248
Tranche B, 7.25%, 12/31/05 1,2 4,889 4,871
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Federal Mogul Corp., Sr. Sec. Credit Facilities Term Loan,
Debtor in Possession, Tranche B, 4.60%, 11/1/03 1,2 1,636,572 1,631,458
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Goodyear Tire & Rubber Co., Sr. Sec. Credit Facilities Term Loan,
5.11%, 3/28/05 1,2 2,000,000 1,990,000
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Hayes Lemmerz International, Inc., Sr. Sec. Credit Facilities Term Loan,
5.86%-6.04%, 6/3/09 1,2 1,999,999 2,012,499
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JL French Automotive Castings, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7%, 10/21/06 1,2 660,597 624,884
Tranche C, 10.603%, 4/21/07 1,2 1,000,000 995,000
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Mark IV Industries, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 4.25%-4.51%, 5/1/07 1,2 3,000,000 2,980,501
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Meridian Automotive Systems, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 4.35%-6.658%, 7/14/06 1,2 1,319,286 1,223,638
Tranche B, 5.35%, 7/14/07 1,2 1,362,139 1,256,573
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Metaldyne Co. LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche D, 5.625%, 12/31/09 1,2 996,252 952,167
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Progressive Group of Cos., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.625%-4.813%, 8/11/07 1,2 2,867,925 2,877,784
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Tenneco, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 5.30%, 12/30/07 1,2 403,384 403,348
Tranche C, 5.55%, 6/30/08 1,2 403,384 403,924
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TRW Automotive, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C1, 4.13%, 2/28/11 1,2 3,500,000 3,517,864
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United Components, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.37%, 6/20/10 1,2 1,000,000 1,008,958
------------
23,797,717
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Distributors--1.2%
Oriental Trading Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.671%, 7/9/09 1,2 3,000,000 3,000,000
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United Rentals North America, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.13%, 8/31/07 1,2 1,826,203 1,836,618
------------
4,836,618
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Hotels, Restaurants & Leisure--4.9%
Ameristar Casinos, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.875%, 12/20/06 1,2 2,710,028 2,725,949
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AMF Bowling Worldwide, Inc., Sr. Sec. Credit Facilities Term Loan,
5.438%-5.688%, 3/15/08 1,2 1,722,296 1,725,883
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Domino's, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.125%, 6/25/10 1,2 3,803,279 3,843,689
7 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
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Hotels, Restaurants & Leisure Continued
Metro-Goldwyn-Mayer Studios, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.10%, 6/30/08 1,2 $ 3,000,000 $ 3,004,689
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Penn National Gaming, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5%-5.28%, 9/1/07 1,2 2,992,500 3,004,470
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Pinnacle Entertainment, Inc., Sr. Sec. Credit Facilities Term Loan,
5.725%, 5/15/08 1,2 1,000,000 1,007,500
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Scientific Games Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.60%, 12/19/08 1,2 1,990,000 1,997,462
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Vail Resorts, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.86%, 12/10/08 1,2 698,250 704,360
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Wyndam International, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.875%, 6/30/06 1,2 2,548,489 2,155,066
------------
20,169,068
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Household Durables--0.6%
Simmons Co., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 4.75%, 10/29/06 1,2 2,500,000 2,511,875
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Media--16.3%
Adams Outdoor Advertising LP, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.578%-6.164%, 2/1/08 1 2,213,133 2,223,508
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AMC Entertainment, Inc., Sr. Sec. Credit Facilities Revolving Credit Loan,
4/10/04 1,2,5 2,875,000 2,839,062
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CanWest Global Communications Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 4.79%, 5/15/08 1,2 2,095,596 2,113,408
Tranche C, 5.04%, 5/15/09 1,2 1,309,229 1,320,358
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Carmike Cinemas, Inc., Sr. Sec. Credit Facilities Term Loan,
7.644%, 3/30/05 1,2 3,331,099 3,351,225
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CBD Media, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.37%-4.38%, 6/13/10 1,2 1,500,000 1,515,000
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CC VI Operating Co. LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.60%, 11/12/08 1 2,985,000 2,680,282
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Century Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.918%, 6/30/09 1,2 2,500,000 2,116,965
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Century-TCI California LP, Sr. Sec. Credit Facilities Revolving Credit Loan,
3.945%, 12/31/07 1,2 1,000,000 945,417
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Century-TCI California LP, Sr. Sec. Credit Facilities Term Loan,
12/31/07 1,2,5 1,000,000 946,000
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Charter Bresnan Cable Communication VIII LLC, Sr. Sec. Credit Facilities
Term Loan, Tranche A, 6/30/07 1,2,5 2,000,000 1,851,876
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Charter Falcon Cable Communication VII LLC, Sr. Sec. Credit Facilities
Term Loan, Tranche C, 12/31/07 1,2,5 997,396 910,747
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Cinemark USA, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.78%-4.13%, 2/14/09 1,2 498,750 502,646
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Citadel Broadcasting Co., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 3.35%-3.375%, 4/3/08 1,2 1,848,889 1,848,889
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Citadel Communications Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.625%, 4/3/09 1,2 1,848,889 1,856,053
8 | OPPENHEIMER SENIOR FLOATING RATE FUND
Principal Market Value
Amount See Note 1
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Media Continued
DirecTV Holdings LLC, Sr. Sec. Credit Facilities Term Loan:
Tranche A, 3/6/08 1,5 $ 1,066,667 $ 1,073,534
Tranche A, 4.75%, 3/6/08 1 4,333,333 4,361,231
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F&W Publications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.05%, 1/31/10 1,2 1,950,000 1,950,000
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Fisher Broadcasting, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.60%, 2/28/10 1,2 1,995,000 1,993,753
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Frontiervision Operating Partners LP, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.525%, 3/31/06 1,2 3,500,000 3,330,834
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GT Brands LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche A, 8.877%-9%, 9/6/07 1,2 1,857,955 1,802,216
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Insight Communication Co., Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.063%, 12/31/09 1 1,500,000 1,506,294
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Loews Cineplex Entertainment Corp., Sr. Sec. Credit Facilities Term Loan,
4.688%, 3/31/07 1 4,806,570 4,794,554
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Mediacom Communications Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.62%, 9/30/10 1,2 1,500,000 1,512,396
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Primedia, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4%-4.125%, 6/30/09 1,2 1,763,853 1,722,514
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R.H. Donnelley Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.10%-5.28%, 6/30/10 1,2 2,487,501 2,508,023
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RCN Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7%, 6/30/07 1,2 744,000 672,700
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Regal Cinemas Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche C, 3.875%, 12/31/07 1,2 1,387,500 1,404,844
Tranche D, 3.625%, 6/30/09 1,2 1,500,000 1,516,875
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Sun Media Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.61%, 2/7/09 1,2 2,400,543 2,408,420
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United Pan-Europe Communications NV, Sr. Sec. Credit Facilities
Term Loan, Tranche C-2, 6.61%, 3/31/09 1,2,3 5,600,000 4,935,000
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Univision Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
2.36%, 7/18/06 1,2 2,000,000 1,980,000
------------
66,494,624
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Specialty Retail--1.5%
Blockbuster, Inc., Sr. Unsec. Credit Facilities Term Loan,
Tranche B, 2.35%-2.49%, 7/1/04 1,2 2,055,555 2,045,829
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Hines Nurseries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.125%, 2/28/05 1,2 511,354 511,354
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Hollywood Entertainment Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 4.60%, 1/20/08 1,2 800,000 804,000
Tranche B, 4.60%, 1/20/08 1 2,500,000 2,512,500
------------
5,873,683
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Textiles, Apparel & Luxury Goods--1.4%
Joan Fabrics Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 5.031%, 8/28/05 1,2 962,422 933,550
Tranche C, 5.281%, 8/28/06 1,2 496,307 481,418
9 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
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Textiles, Apparel & Luxury Goods Continued
Willian Carter Co. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche C, 3.60%, 9/30/08 1,2 $ 4,304,139 $ 4,304,139
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5,719,107
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Consumer Staples--10.9%
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Beverages--0.1%
Cott Corp., Sr. Sec. Credit Facilities Term Loan,
4.07%-4.10%, 12/31/06 1,2 367,500 368,878
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Food & Staples Retailing--1.1%
Pantry, Inc. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6%, 4/14/07 1 2,970,356 3,014,911
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Pathmark Stores, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.625%, 7/15/07 1,2 1,372,161 1,371,303
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4,386,214
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Food Products--7.2%
American Seafoods Group LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.35%, 3/31/09 1 3,204,468 3,210,476
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Birds Eye Foods, Inc., Sr, Sec. Credit Facilities Term Loan,
Tranche B, 3.85%, 6/30/08 1 2,977,500 2,987,424
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Buffets, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.60%, 6/28/09 1 2,225,991 2,219,870
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Del Monte Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.85%-4.86%, 12/20/10 1 2,779,274 2,802,898
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Dole Food Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.938%-6.164%, 9/28/08 1,2 1,278,261 1,290,244
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International Multifoods Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.07%-5.918%, 2/28/08 1,2 2,112,329 2,124,047
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Land O'Lakes, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.67%, 10/11/08 1,2 1,600,279 1,570,274
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Merisant Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.86%, 12/17/09 1,2 3,000,000 3,022,500
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Michael Foods, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.10%-5.918%, 4/10/08 1,2 1,009,239 1,015,231
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NBTY, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.60%, 7/24/09 1,2 2,000,000 2,022,500
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Nellson Nutraceutical, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.11%, 10/4/09 1,2 3,000,000 3,026,250
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Pinnacle Foods, Inc., Sr. Sec. Credit Facilities
Term Loan, 4.13%, 6/20/08 1,2 2,763,158 2,766,612
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Reddy Ice, Inc., Sr. Sec. Credit Facilities Term Loan,
4.11%, 7/8/09 1,2 1,500,000 1,517,812
------------
29,576,138
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Household Products--1.5%
Playpower, Inc., Sr. Sec. Credit Facilities Term Loan, 5.53%, 2/1/10 1,2 1,950,000 1,947,563
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Playtex Products, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 4.09%-4.88%, 5/31/09 1,2 3,000,000 3,002,187
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SC Johnson Commercial Markets, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.80%, 11/3/09 1,2 1,327,716 1,334,117
------------
6,283,867
10 | OPPENHEIMER SENIOR FLOATING RATE FUND
Principal Market Value
Amount See Note 1
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Personal Products--1.0%
Jostens, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.60%, 7/8/10 1,2 $ 2,000,000 $ 2,018,750
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Norwood Promotional Products, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 6.50%, 2/28/05 1,2 859,715 778,042
Tranche B, 2.665%, 2/28/05 1,2 3,939,041 1,043,846
Tranche C, 2/28/05 1,2,5 182,832 13,712
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3,854,350
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Energy--5.1%
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Energy Equipment & Services--0.8%
Southern California Edison, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.375%, 3/1/05 1 3,000,000 3,012,189
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Oil & Gas--4.3%
Aquila Networks Canada Corp., Sr. Sec. Credit Facilities Term Loan,
7.151%, 7/20/04 1,2 5,000,000 5,037,500
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Aquila, Inc., Sr. Sec. Credit Facilities Term Loan,
8.75%, 5/15/06 1,2 2,047,619 2,062,976
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Citgo Petroleum Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.25%, 2/27/06 1,2 2,000,000 2,065,000
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Ferrell Cos., Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.179%, 6/17/06 1,2 3,505,451 3,487,924
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Tesoro Pertoleum Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.53%-6.606%, 4/15/08 1,2 1,995,000 2,009,250
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Veritas DGC, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7%, 2/14/07 1,2 2,980,000 2,960,445
------------
17,623,095
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Financials--1.5%
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Insurance--1.0%
Conseco, Inc., Sr. Sec. Credit Facilities Term Loan, 8%,
12/31/03 2,3,4 3,000,000 3,030,000
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Infinity Property & Casualty Corp., Sr. Sec. Credit Facilities Term Loan,
3.60%, 7/17/10 1,2 1,000,000 1,008,125
------------
4,038,125
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Real Estate--0.5%
CB Richard Ellis Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.35%-5.36%, 5/1/08 1,2 2,000,000 2,015,000
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Health Care--6.8%
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Health Care Equipment & Supplies--1.5%
Dade Behring Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
5.375%, 9/30/08 1,2 2,388,184 2,421,021
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Medex, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.85%, 5/21/09 1,2 1,000,000 1,006,667
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Perkinelmer, Inc., Sr. Sec. Credit Facilities Term Loan,
5.10%, 12/28/08 1,2 2,707,500 2,738,807
------------
6,166,495
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Health Care Providers & Services--4.9%
Accredo Health, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.85%, 3/31/09 1,2 1,476,288 1,481,824
11 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
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Health Care Providers & Services Continued
Davita, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 3.603%-3.66%, 6/23/09 1,2 $ 2,000,000 $ 2,010,624
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Genesis Health Ventures, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.60%, 3/30/07 1,2 732,741 732,970
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Genesis Health Ventures, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, Tranche B, 4.60%, 3/30/07 1,2 1,718,285 1,713,990
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Iasis Healthcare Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.36%-5.364%, 2/7/09 1,2 1,850,000 1,863,875
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Insight Health Services Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.60%-4.731%, 9/19/08 1,2 1,662,434 1,669,706
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Insight Health Services Corp., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, Tranche B, 2%-6.411%, 9/19/08 1,2 833,333 836,979
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Magellan Health Services, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.151%, 2/12/05 1,2 500,000 491,667
Tranche C, 7.397%, 2/12/06 1,2 500,000 491,667
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Oxford Health Plans, Inc., Sr. Sec. Credit Facilities Term Loan,
4.06%-4.07%, 4/1/09 1,2 2,992,500 3,018,685
- ------------------------------------------------------------------------------------------------------------
PacifiCare Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.61%, 6/3/08 1 3,500,000 3,524,063
- ------------------------------------------------------------------------------------------------------------
Team Health, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.531%, 9/27/08 1,2 2,284,556 2,259,569
------------
20,095,619
- ------------------------------------------------------------------------------------------------------------
Pharmaceuticals--0.4%
Alpharma, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.35%-4.60%, 10/5/08 1,2 1,689,551 1,694,479
- ------------------------------------------------------------------------------------------------------------
Industrials--16.3%
- ------------------------------------------------------------------------------------------------------------
Aerospace & Defense--3.8%
DRS Technologies, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.10%-4.34%, 9/30/08 1,2 2,210,684 2,230,029
- ------------------------------------------------------------------------------------------------------------
Gencorp, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.938%, 3/28/07 1,2 1,989,975 1,987,487
- ------------------------------------------------------------------------------------------------------------
Titan Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.38%-5.918%, 6/30/09 1 2,965,025 2,973,054
- ------------------------------------------------------------------------------------------------------------
TransDigm, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.10%, 7/1/10 1,2 1,000,000 1,010,938
- ------------------------------------------------------------------------------------------------------------
United Defense Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B Add-On, 3.10%, 7/1/09 1 2,266,014 2,274,106
- ------------------------------------------------------------------------------------------------------------
Veridian Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.35%, 6/30/08 1 2,923,254 2,942,913
- ------------------------------------------------------------------------------------------------------------
Worldspan LP, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.875%, 6/30/07 1,2 2,000,000 2,013,750
------------
15,432,277
12 | OPPENHEIMER SENIOR FLOATING RATE FUND
Principal Market Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------
Building Products--1.6%
Formica Corp., Sr. Sec. Credit Facilities Revolving Credit Loan,
Tranche A, 5/1/04 1,2,5 $ 3,760,000 $ 3,647,200
- ------------------------------------------------------------------------------------------------------------
Formica Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche A1, 4/30/06 1,2,5 590,000 572,300
- ------------------------------------------------------------------------------------------------------------
Masonite International Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 3.75%-4.063%, 8/31/08 1,2 2,402,820 2,408,327
------------
6,627,827
- ------------------------------------------------------------------------------------------------------------
Commercial Services & Supplies--5.1%
Allied Waste Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.37%-4.54%, 4/29/10 1 2,859,999 2,887,776
- ------------------------------------------------------------------------------------------------------------
Corrections Corp. of America, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.60%-4.78%, 3/31/08 1,2 2,169,156 2,182,376
- ------------------------------------------------------------------------------------------------------------
Global Imaging Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.03%-4.10%, 6/18/09 1,2 1,000,000 1,012,500
- ------------------------------------------------------------------------------------------------------------
Moore Wallace, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.25%-4.313%, 3/15/10 1,2 2,000,000 2,006,561
- ------------------------------------------------------------------------------------------------------------
Safelite Glass Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 4.60%, 12/17/07 1,2 740,382 729,276
Tranche B, 5.10%, 12/17/07 1,2 1,190,868 1,173,005
- ------------------------------------------------------------------------------------------------------------
Transaction Network Services, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 4.938%-6.658%, 3/30/05 1,2 1,387,114 1,381,045
Tranche B, 5.438%-7.151%, 3/30/07 1,2 1,843,750 1,835,683
- ------------------------------------------------------------------------------------------------------------
U.S. Investigations Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.07%-5.26%, 1/10/09 1,2 2,706,475 2,715,780
- ------------------------------------------------------------------------------------------------------------
Wackenhut Corrections Corp. Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.10%-4.12%, 7/9/09 1,2 1,000,000 1,005,000
- ------------------------------------------------------------------------------------------------------------
Washington Group International, Inc., Sr. Sec. Credit Linked CD,
6.881%, 12/1/04 1,2 4,000,000 3,990,000
------------
20,919,002
- ------------------------------------------------------------------------------------------------------------
Construction & Engineering--0.7%
Walter Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.35%-5.518%, 4/15/10 1 2,925,000 2,925,000
- ------------------------------------------------------------------------------------------------------------
Electrical Equipment--0.7%
General Cable Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.10%-6.875%, 5/27/07 1,2 3,111,498 2,847,020
- ------------------------------------------------------------------------------------------------------------
Industrial Conglomerates--0.7%
Thermadyne Holdings Corp., Sr. Sec. Credit Facilities Term Loan,
7.397%, 3/31/08 1,2 3,000,000 2,985,000
- ------------------------------------------------------------------------------------------------------------
Machinery--1.2%
Trinity Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.375%-4.563%, 6/4/07 1 4,950,000 4,968,563
13 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------
Road & Rail--2.5%
Dakota, Minnesota & Eastern Railroad Corp., Sr. Sec. Credit
Facilities Term Loan, 8%, 12/31/07 1,2 $ 3,450,000 $ 3,484,500
- ------------------------------------------------------------------------------------------------------------
Helm Holding Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.86%-5.03%, 10/20/06 1,2 2,288,846 2,134,349
- ------------------------------------------------------------------------------------------------------------
Pacer International, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.375%-6.164%, 6/10/10 1,2 1,898,039 1,914,647
- ------------------------------------------------------------------------------------------------------------
RailAmerica, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.813%, 12/31/06 1 2,475,000 2,482,735
------------
10,016,231
- ------------------------------------------------------------------------------------------------------------
Information Technology--1.6%
- ------------------------------------------------------------------------------------------------------------
Computers & Peripherals--0.8%
Sanmina-SCI Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.30%, 12/23/07 1,2 2,961,310 2,994,008
- ------------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments--0.8%
Amkor Technology, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.10%, 1/31/06 1,2 997,500 1,011,528
- ------------------------------------------------------------------------------------------------------------
Transcore, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.85%-6.25%, 10/10/06 1,2 2,381,210 2,390,140
------------
3,401,668
- ------------------------------------------------------------------------------------------------------------
Materials--12.2%
- ------------------------------------------------------------------------------------------------------------
Chemicals--5.1%
Equistar Chemicals LP, Sr. Sec. Credit Facilities Term Loan,
4.60%, 8/24/07 1 2,456,509 2,470,187
- ------------------------------------------------------------------------------------------------------------
FMC Corp., Sr. Sec. Credit Facilities Term Loan,
5.85%, 10/21/07 1,2 1,990,000 2,016,865
- ------------------------------------------------------------------------------------------------------------
Hercules, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.35%-4.49%, 5/15/07 1 2,985,000 3,001,170
- ------------------------------------------------------------------------------------------------------------
Huntsman Co. LLC, Sr. Sec. Credit Facilities Term Loan:
Tranche A, 5.938%-6.188%, 3/31/07 1,2 3,891,146 3,595,143
Tranche B, 8.438%, 3/31/07 1,2 1,903,953 1,759,797
- ------------------------------------------------------------------------------------------------------------
Huntsman ICI Chemicals LLC, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 5.188%-5.313%, 6/30/07 1 2,101,050 2,112,738
Tranche C, 5.375%-5.50%, 6/30/08 1 2,101,050 2,113,305
- ------------------------------------------------------------------------------------------------------------
Messer Griesheim Holding AG, Sr. Sec. Credit Facilities Term Loan:
Tranche B2, 4.10%, 4/28/09 1,2 360,713 363,794
Tranche C, 4.60%, 4/28/10 1,2 883,698 891,246
- ------------------------------------------------------------------------------------------------------------
Rockwood Specialties, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.61%, 7/23/10 1,2 1,500,000 1,518,750
- ------------------------------------------------------------------------------------------------------------
Westlake Chemical Corp., Sr. Sec. Credit Facilities
Term Loan, 7/25/10 1,2,5 1,000,000 1,011,250
------------
20,854,245
- ------------------------------------------------------------------------------------------------------------
Containers & Packaging--3.2%
Consolidated Container Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.625%, 6/30/07 1,2 1,862,033 1,716,175
- ------------------------------------------------------------------------------------------------------------
Crown Cork & Seal Americas, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.10%, 8/26/08 1,2 3,500,000 3,516,408
- ------------------------------------------------------------------------------------------------------------
Owens-Illinois, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.36%, 5/21/08 1,2 4,000,000 4,015,000
14 | OPPENHEIMER SENIOR FLOATING RATE FUND
Principal Market Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------
Containers & Packaging Continued
Riverwood International Corp., Sr. Sec. Credit Facilities Revolving
Credit Loan, 0.05%-6.658%, 12/31/06 1,2 $ 3,000,000 $ 2,990,624
- ------------------------------------------------------------------------------------------------------------
Tekni-Plex, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.625%, 6/21/08 1,2 997,430 983,404
------------
13,221,611
- ------------------------------------------------------------------------------------------------------------
Metals & Mining--1.8%
Citation Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 5.313%, 9/30/05 1,2 754,008 614,516
Tranche B, 6.063%, 9/30/07 1,2 3,298,767 2,680,248
- ------------------------------------------------------------------------------------------------------------
International Steel Group, Sr. Sec. Credit Facilities Term Loan:
Tranche A, 4.37%, 5/7/05 1,2 750,000 750,000
Tranche B, 4.62%, 5/7/07 1,2 750,000 750,469
- ------------------------------------------------------------------------------------------------------------
Ispat Inland LP, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 4.85%, 7/16/05 1,2 1,987,294 1,376,201
Tranche C, 4.85%, 7/16/06 1,2 1,987,294 1,376,201
------------
7,547,635
- ------------------------------------------------------------------------------------------------------------
Paper & Forest Products--2.1%
Berry Plastics Corp., Sr. Sec. Credit Facilities Term Loan,
4.29%, 6/30/10 1 3,465,000 3,489,255
- -------------------------------------------------------------------------------------------------------------
Berry Plastics Corp., Sr. Sec. Credit Facilities Term Loan,
6.658%, 6/30/10 1,2 1,000,000 1,007,000
- ------------------------------------------------------------------------------------------------------------
Grant Forest Products Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.10%-4.34%, 10/12/08 1,2 1,931,688 1,938,932
- ------------------------------------------------------------------------------------------------------------
Printpack Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.875%, 3/31/09 1,2 1,971,288 1,978,680
------------
8,413,867
- ------------------------------------------------------------------------------------------------------------
Telecommunication Services--13.6%
- ------------------------------------------------------------------------------------------------------------
Diversified Telecommunication Services--6.6%
360 Americas, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche D, 9/30/05 2,3,4 5,000,000 375,000
- ------------------------------------------------------------------------------------------------------------
Broadwing, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 4.85%-5.04%, 11/9/04 1 1,062,734 1,073,361
Tranche B, 12/30/06 1,2,5 1,945,669 1,963,909
Tranche C, 4.75%, 6/28/07 1,2 11,513 11,609
Tranche C, 4.77%-4.85%, 6/28/07 1 781,673 788,220
- ------------------------------------------------------------------------------------------------------------
IPC Information System, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.50%, 12/31/06 1,2 1,235,906 1,223,547
- ------------------------------------------------------------------------------------------------------------
Level 3 Communications, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 5.37%, 1/15/08 1 1,500,000 1,404,375
Tranche C, 5.60%, 1/30/08 1 5,000,000 4,725,000
- ------------------------------------------------------------------------------------------------------------
NTELOS, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
5.12%, 7/25/08 1,2 1,928,333 1,653,545
- ------------------------------------------------------------------------------------------------------------
Qwest Corp., Sr. Sec. Credit Facilities Term Loan, Tranche A,
6.50%, 6/30/07 1,2 3,500,000 3,528,875
- ------------------------------------------------------------------------------------------------------------
Qwest Dex, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche A,
12.575%, 8/30/04 1,2 2,000,000 2,025,000
- ------------------------------------------------------------------------------------------------------------
Valor Communications LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.85%-5.04%, 6/26/07 1,2 2,343,079 2,324,042
15 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------
Diversified Telecommunication Services Continued
Worldcom, Inc., Sr. Sec. Credit Facilities Revolving
Credit Loan, 6/7/04 2,3 $15,000,000 $ 4,481,250
- ------------------------------------------------------------------------------------------------------------
XO Communications, Inc., Sr. Sec. Credit Facilities
Term Loan, 7/15/09 1,2,5 1,504,562 1,504,562
------------
27,082,295
- ------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services--7.0%
Alamosa Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 5.125%-5.375%, 2/14/08 1 3,568,098 3,350,442
- ------------------------------------------------------------------------------------------------------------
American Tower Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.60%-4.61%, 12/31/07 1 2,124,656 2,143,368
- ------------------------------------------------------------------------------------------------------------
Centennial Cellular Operating Co., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 3.35%-3.54%, 11/30/06 1,2 1,218,618 1,180,755
Tranche B, 4.53%-4.60%, 5/31/07 1,2 739,438 718,872
Tranche C, 4.76%-4.84%, 11/30/07 1,2 614,533 597,441
- ------------------------------------------------------------------------------------------------------------
Crown Castle International Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.85%, 3/15/08 1 2,992,500 3,000,517
- ------------------------------------------------------------------------------------------------------------
Dobson Operating Co. LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.02%, 12/31/07 1,2 2,190,878 2,164,314
- ------------------------------------------------------------------------------------------------------------
Dobson Sygnet Operating Co., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 5.01%, 12/23/07 1,2 4,674,513 4,557,650
- ------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche D, 4.313%, 3/31/09 1 5,472,500 5,455,924
- ------------------------------------------------------------------------------------------------------------
SpectraSite Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.27%-5.33%, 12/31/07 1,2 2,341,450 2,365,351
- ------------------------------------------------------------------------------------------------------------
TSI Telecommunication Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.60%-5.84%, 12/31/06 1,2 2,858,257 2,861,830
------------
28,396,464
- ------------------------------------------------------------------------------------------------------------
Utilities--8.4%
- ------------------------------------------------------------------------------------------------------------
Electric Utilities--6.6%
AES Corp., Sr. Sec. Credit Facilities Term Loan, 5.13%,
4/30/08 1,2 4,000,000 3,979,168
- ------------------------------------------------------------------------------------------------------------
Allegheny Energy Supply Co. LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche 2, 1%-8%, 6/25/05 1,2 2,859,909 2,861,339
- ------------------------------------------------------------------------------------------------------------
Calpine Corp., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 6.86%, 7/15/07 1,2 3,500,000 3,288,751
- ------------------------------------------------------------------------------------------------------------
Calpine Corp., Sr. Sec. Credit Facilities Revolving
Credit Loan, 11/16/04 1,2,5 2,000,000 1,827,500
- ------------------------------------------------------------------------------------------------------------
Centerpoint Energy, Inc., Sr. Sec. Credit Facilities Term Loan,
5.516%-5.734%, 6/30/05 1,2 1,000,000 998,125
- ------------------------------------------------------------------------------------------------------------
Consumers Energy Co., Sr. Sec. Credit Facilities
Term Loan, 5.839%, 9/25/04 1,2 333,333 335,625
- ------------------------------------------------------------------------------------------------------------
Mirant Americas Generation, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 10/20/04 1,2,5 1,666,667 1,316,667
Tranche C, 10/20/04 1,2,5 333,333 263,333
- ------------------------------------------------------------------------------------------------------------
Reliant Resources, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 5.27%, 3/15/07 1,2 5,000,000 4,656,250
- ------------------------------------------------------------------------------------------------------------
Tucson Electric Power Co., Sr. Sec. Credit Facilities Term Loan
(Letter of Credit), Tranche B, 6.60%, 11/14/06 1,2 2,000,000 2,017,500
- ------------------------------------------------------------------------------------------------------------
United American Energy, Inc., Sr. Sec. Credit Facilities Term Loan,
4.28%, 4/30/05 1 2,480,000 2,442,800
16 | OPPENHEIMER SENIOR FLOATING RATE FUND
Principal Market Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------
Electric Utilities Continued
Williams Production RMT Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.90%, 5/30/07 1,2 $ 3,000,000 $ 3,022,500
------------
27,009,558
- ------------------------------------------------------------------------------------------------------------
Gas Utilities--1.1%
Dynegy Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 5.87%, 2/15/05 1,2 2,307,692 2,281,731
- ------------------------------------------------------------------------------------------------------------
El Paso Energy Partners LP, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.75%, 9/30/09 1,2 1,968,750 1,968,750
------------
4,250,481
- ------------------------------------------------------------------------------------------------------------
Multi-Utilities & Unregulated Power--0.7%
Massey Energy Co., Sr. Sec. Credit Facilities Term Loan,
6.411%, 6/30/08 1,2,5 3,000,000 2,998,125
------------
Total Corporate Loans (Cost $441,479,127) 441,408,018
- ------------------------------------------------------------------------------------------------------------
Corporate Bonds and Notes--0.2%
Tenet Healthcare Corp., 5% Sr. Nts., 7/1/07 (Cost $935,000) 1,000,000 930,000
- ------------------------------------------------------------------------------------------------------------
Repurchase Agreements--7.3%
Repurchase agreement with DB Alex Brown LLC, 1.04%, dated
7/31/03, to be repurchased at $29,929,865 on 8/1/03,
collateralized by U.S. Treasury Bonds, 9.125%, 5/15/18,
with a value of $30,746,450 (Cost $29,929,000) 29,929,000 29,929,000
- ------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $472,343,127) 115.6% 472,267,018
- ------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (15.6) (63,749,420)
---------------------------------
Net Assets 100.0% $408,517,598
=================================
Footnotes to Statement of Investments
1. Represents the current interest rate for a variable or increasing rate
security.
2. Identifies issues considered to be illiquid. See Note 5 of Notes to Financial
Statements.
3. Issuer is in default. See Note 1 of Notes to Financial Statements.
4. Non-income producing security.
5. This Senior Loan will settle after August 31, 2003, at which time the
interest rate will be determined.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2003
- --------------------------------------------------------------------------------
Assets
Investments, at value (cost $472,343,127)--see
accompanying statement $472,267,018
- --------------------------------------------------------------------------------
Cash 1,128,362
- --------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 13,949,896
Interest and principal paydowns 1,711,880
Other 2,577
--------------
Total assets 489,059,733
- --------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Investments purchased 66,902,553
Shares of beneficial interest redeemed 13,079,005
Shareholder reports 124,762
Distribution and service plan fees 86,332
Dividends 41,876
Transfer and shareholder servicing agent fees 37,407
Other 270,200
--------------
Total liabilities 80,542,135
- --------------------------------------------------------------------------------
Net Assets $408,517,598
==============
- --------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of beneficial interest $ 44,178
- --------------------------------------------------------------------------------
Additional paid-in capital 459,237,810
- --------------------------------------------------------------------------------
Overdistributed net investment income (41,873)
- --------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (50,646,408)
- --------------------------------------------------------------------------------
Net unrealized depreciation on investments (76,109)
- --------------------------------------------------------------------------------
Net Assets $408,517,598
==============
18 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share
(based on net assets of $44,027,914 and 4,764,820
shares of beneficial interest outstanding) $9.24
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes
applicable contingent deferred sales charge)
and offering price per share (based on net
assets of $157,057,088 and 16,989,938 shares
of beneficial interest outstanding) $9.24
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes
applicable contingent deferred sales charge)
and offering price per share (based on net
assets of $207,432,596 and 22,423,648 shares
of beneficial interest outstanding) $9.25
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF OPERATIONS For the Year Ended July 31, 2003
- --------------------------------------------------------------------------------
Investment Income
Interest $ 30,463,585
- --------------------------------------------------------------------------------
Expenses
Management fees 3,005,772
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 87,094
Class B 1,224,902
Class C 1,583,434
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 26,758
Class B 195,272
Class C 210,278
- --------------------------------------------------------------------------------
Legal, auditing and other professional fees 592,458
- --------------------------------------------------------------------------------
Interest expense 293,541
- --------------------------------------------------------------------------------
Shareholder reports 227,019
- --------------------------------------------------------------------------------
Custodian fees and expenses 140,000
- --------------------------------------------------------------------------------
Trustees' compensation 13,202
- --------------------------------------------------------------------------------
Other 89,039
--------------
Total expenses 7,688,769
Less voluntary waiver of management fees (819,450)
--------------
Net expenses 6,869,319
- --------------------------------------------------------------------------------
Net Investment Income 23,594,266
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized loss on investments (16,344,678)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 20,205,808
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 27,455,396
==============
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended July 31, 2003 2002
- -----------------------------------------------------------------------------------------------
Operations
Net investment income $ 23,594,266 $ 29,691,010
- -----------------------------------------------------------------------------------------------
Net realized loss (16,344,678) (30,550,004)
- -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) 20,205,808 (350,259)
------------------------------------
Net increase (decrease) in net assets
resulting from operations 27,455,396 (1,209,253)
- -----------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (1,876,986) (2,328,510)
Class B (7,813,161) (10,630,739)
Class C (10,146,654) (15,688,803)
- -----------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting
from beneficial interest transactions:
Class A 9,320,515 (8,831,399)
Class B (22,819,466) (32,640,692)
Class C (32,377,906) (97,334,747)
- -----------------------------------------------------------------------------------------------
Net Assets
Total decrease (38,258,262) (168,664,143)
- -----------------------------------------------------------------------------------------------
Beginning of period 446,775,860 615,440,003
------------------------------------
End of period [including overdistributed
net investment income of $41,873 and
$63,456, respectively] $408,517,598 $446,775,860
====================================
See accompanying Notes to Financial Statements.
21 | OPPENHEIMER SENIOR FLOATING RATE FUND
FINANCIAL HIGHLIGHTS
Class A Year Ended July 31 2003 2002 2001 2000 1
- ---------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $9.03 $9.51 $9.96 $10.00
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .55 .54 .80 .71
Net realized and unrealized gain (loss) .14 (.50) (.46) (.04)
---------------------------------------------------
Total from investment operations .69 .04 .34 .67
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.48) (.52) (.79) (.71)
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.24 $9.03 $9.51 $9.96
===================================================
- ---------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 7.91% 0.44% 3.52% 6.94%
- ---------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $44,028 $33,905 $44,985 $22,421
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $35,298 $41,195 $41,457 $ 6,600
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 6.23% 5.84% 8.11% 8.30%
Expenses, gross 1.39% 1.42% 1.20% 1.26%
Expenses, net 1.19% 5 1.22% 4,5 1.00% 4,5 0.87% 5,6
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 9% 92% 47% 62%
1. For the period from September 8, 1999 (commencement of operations) to July
31, 2000.
2. Assumes an investment on the business day before the first day of the fiscal
period (or commencement of operations), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and repurchase at the
net asset value calculated on the last business day of the fiscal period. Total
returns are not annualized for periods of less than one full year. Returns do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of management fees.
6. Net of reduction to custodian expenses.
See accompanying Notes to Financial Statements.
22 | OPPENHEIMER SENIOR FLOATING RATE FUND
Class B Year Ended July 31 2003 2002 2001 2000 1
- ---------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $9.04 $ 9.51 $ 9.97 $10.00
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .52 .49 .76 .67
Net realized and unrealized gain (loss) .11 (.49) (.47) (.03)
---------------------------------------------------
Total from investment operations .63 -- .29 .64
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.43) (.47) (.75) (.67)
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.24 $9.04 $9.51 $9.97
===================================================
- ---------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 7.21% 0.05% 2.96% 6.56%
- ---------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $157,057 $176,760 $220,328 $98,343
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $163,238 $206,869 $177,025 $49,122
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.70% 5.33% 7.56% 7.80%
Expenses, gross 1.93% 1.92% 1.64% 1.76%
Expenses, net 1.73% 5 1.72% 4,5 1.44% 4,5 1.37% 5,6
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 9% 92% 47% 62%
1. For the period from September 8, 1999 (commencement of operations) to July
31, 2000.
2. Assumes an investment on the business day before the first day of the fiscal
period (or commencement of operations), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and repurchase at the
net asset value calculated on the last business day of the fiscal period. Total
returns are not annualized for periods of less than one full year. Returns do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of management fees.
6. Net of reduction to custodian expenses.
See accompanying Notes to Financial Statements.
23 | OPPENHEIMER SENIOR FLOATING RATE FUND
FINANCIAL HIGHLIGHTS Continued
Class C Year Ended July 31 2003 2002 2001 2000 1
- ---------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 9.04 $ 9.51 $ 9.97 $10.00
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .52 .50 .76 .67
Net realized and unrealized gain (loss) .12 (.50) (.47) (.04)
---------------------------------------------------
Total from investment operations .64 -- .29 .63
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.43) (.47) (.75) (.66)
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.25 $9.04 $9.51 $9.97
===================================================
- ---------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 7.35% 0.05% 2.96% 6.51%
- ---------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $207,433 $236,111 $350,126 $194,933
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $210,987 $303,123 $323,725 $ 82,761
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.73% 5.37% 7.60% 7.79%
Expenses, gross 1.91% 1.92% 1.65% 1.77%
Expenses, net 1.71% 5 1.72% 4,5 1.45% 4,5 1.38% 5,6
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 9% 92% 47% 62%
1. For the period from September 8, 1999 (commencement of operations) to July
31, 2000.
2. Assumes an investment on the business day before the first day of the fiscal
period (or commencement of operations), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and repurchase at the
net asset value calculated on the last business day of the fiscal period. Total
returns are not annualized for periods of less than one full year. Returns do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of management fees.
6. Net of reduction to custodian expenses.
See accompanying Notes to Financial Statements.
24 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Senior Floating Rate Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a closed-end management
investment company. The Fund seeks as high a level of current income and
preservation of capital as is consistent with investing primarily in senior
floating rate loans and other debt securities. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are not
available for direct purchase and are available only upon automatic conversion
of Class B shares or exchange of shares of certain other Oppenheimer funds, and
by purchase through "wrap" programs of financial advisors that have special
agreements with the Distributor for that purpose. Class B and Class C shares
are sold without an initial sales charge but may be subject to an Early
Withdrawal Charge. All classes of shares have identical rights and voting
privileges. Earnings, net assets and net asset value per share may differ by
minor amounts due to each class having its own expenses directly attributable
to that class. Classes A, B and C shares have separate distribution and/or
service plans. Class B shares will automatically convert to Class A shares 72
months after the end of the month in which you purchase them.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale price
of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued.
In the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing bid and asked
prices, and if not, at the closing bid price. Securities (including restricted
securities) for which quotations are not readily available are valued primarily
using dealer-supplied valuations, a portfolio pricing service authorized by the
Board of Trustees, or at their fair value. Fair value is determined in good
faith using consistently applied procedures under the supervision of the Board
of Trustees. Short-term "money market type" debt securities with remaining
maturities of sixty days or less are valued at amortized cost (which
approximates market value).
- --------------------------------------------------------------------------------
When-Issued and Delayed Delivery Security Transactions. The Fund purchases and
sells interests in Senior Loans and other portfolio securities on a "when
issued" and "delayed delivery" basis. No income accrues to the Fund on such
interests or securities in connection with such purchase transactions prior to
the date the Fund actually takes delivery of such interest or securities. These
transactions are subject to market fluctuation; the value of the interests in
Senior Loans and other portfolio debt securities at delivery may be more or
less than their purchase prices, and yields generally available on such
interests or securities when delivery occurs may be higher or lower than yields
on the interest or securities obtained pursuant to such transactions. Because
the Fund relies
25 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
on the buyer or seller to consummate the transaction, failure by the other
party to complete the transaction may result in the Fund missing the
opportunity of obtaining a price or yield considered to be advantageous.When
the Fund is the buyer in such a transaction, it will maintain, in a segregated
account with its custodian, cash or liquid securities having an aggregate value
equal to the amount of such purchase commitments until payment is made. To the
extent the Fund engages in "when issued" and "delayed delivery" purchases, it
will do so for the purpose of acquiring interest or securities for the Fund's
portfolio consistent with the Fund's investment objective and policies and not
for the purpose of investment leverage.
- --------------------------------------------------------------------------------
Senior Loans. Under normal market conditions, the Fund will invest at least 80%
of its net assets (plus borrowings for investment purposes) in floating rate
Senior Loans made to U.S. and foreign borrowers that are corporations,
partnerships or other business entities. The Fund will do so either as an
original lender or as a purchaser of a loan assignment or a participation
interest in a loan. While most of these loans will be collateralized, the Fund
can also under normal market conditions invest up to 10% of its net assets
(plus borrowings for investment purposes) in uncollateralized floating rate
Senior Loans.
Senior Loans generally are not listed on any national securities exchange or
automated quotation system and no active trading market exists for many Senior
Loans. As a result, many Senior Loans are illiquid, meaning the Fund may not be
able to sell them quickly at a fair price. To the extent that a secondary
market does exist for certain Senior Loans, the market may be subject to
irregular trading activity, wide bid/ask spreads and extended trade settlement
periods.
As of July 31, 2003, securities with an aggregate market value of
$441,408,018, representing 108.1% of the Fund's net assets were comprised of
Senior Loans, of which $340,545,227, representing 83.36% of net assets, were
illiquid.
- --------------------------------------------------------------------------------
Security Credit Risk. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of July 31, 2003, securities with an aggregate
market value of $12,821,250, representing 3.14% of the Fund's net assets, were
in default.
- --------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires its custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral declines,
or if the seller enters an insolvency proceeding, realization of the value of
the collateral by the Fund may be delayed or limited.
26 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years
and unrealized appreciation or depreciation of investment for federal income
tax purposes.
Net Unrealized
Undistributed Depreciation Based
Net Undistributed Accumulated on Cost of Securities
Investment Long-Term Loss for Federal Income
Income Gain Carryforward 1,2,3 Tax Purposes
- --------------------------------------------------------------------------------------------------
$-- $-- $50,555,394 $167,124
1. As of July 31, 2003, the Fund had $40,899,356 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of July 31, 2003, details
of the capital loss carryforwards were as follows:
Expiring
----------------------
2009 $ 2,975
2010 14,893,083
2011 26,003,298
-----------
Total $40,899,356
===========
2. During the fiscal years ended July 31, 2003 and July 31, 2002, the Fund did
not utilize any capital loss carryforwards.
3. As of July 31, 2003, the Fund had $9,656,038 of post-October losses
available to offset future capital gains, if any. Such losses, if unutilized,
will expire in 2012.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly,
the following amounts have been reclassified for July 31, 2003. Net assets of
the Fund were unaffected by the reclassifications.
From To Net
Ordinary Capital Tax Return Investment
Loss Loss of Capital Loss
--------------------------------------------------------------------
$3,735,882 $3,746,161 $-- $--
27 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
The tax character of distributions paid during the years ended July 31, 2003
and July 31, 2002 was as follows:
Year Ended Year Ended
July 31, 2003 July 31, 2002
-----------------------------------------------------------------
Distributions paid from:
Ordinary income $19,836,801 $28,648,052
The aggregate cost of investments and the composition of unrealized
appreciation and depreciation of investments for federal income tax purposes as
of July 31, 2003 are noted below. The primary difference between book and tax
appreciation or depreciation of investments, if applicable, is attributable to
the tax deferral of losses or tax realization of financial statement unrealized
gain or loss.
Federal Tax Cost $472,434,141
============
Gross unrealized appreciation $ 6,649,508
Gross unrealized depreciation (6,816,632)
------------
Net unrealized depreciation $ (167,124)
============
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are
declared daily and paid monthly. Capital gain distributions, if any, are
declared and paid annually.
- --------------------------------------------------------------------------------
Investment Income. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Security Transactions. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
Other. 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 and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
28 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has adopted the following fundamental policies concerning periodic
repurchase offers:
o The Fund will make periodic Repurchase Offers, pursuant to Rule 23c-3 under
the Investment Company Act of 1940 (as that rule may be amended from time to
time).
o Repurchase offers shall be made at periodic intervals of three months
between Repurchase Request Deadlines. The Deadlines will be at the time on a
regular business day (normally the last regular business day) in the months
of January, April, July and October to be determined by the Fund's Board of
Trustees.
o The Repurchase Pricing Date for a particular Repurchase Offer shall be not
more than 14 days after the Repurchase Request Deadline for the Repurchase
Offer. If that day is not a normal business day, then the Repurchase Pricing
Date will be the following regular business day.
Each quarter, the Fund's Board will determine the number of shares that the
Fund will offer to repurchase in a particular Repurchase Offer. The Repurchase
Offer Amount will be at least 5% but not more than 25% of the total number of
shares of all classes of the Fund (in the aggregate) outstanding on the
Repurchase Request Deadline. If shareholders tender more than the Repurchase
Offer Amount for a particular Repurchase Offer, the Fund may repurchase up to
an additional 2% of the shares outstanding on the Repurchase Request Deadline.
For the year ended July 31, 2003, the Fund extended four Repurchase Offers:
Percentage of
Outstanding Shares Amount of Shares Number of
Repurchase the Fund Offered the Fund Offered Shares Tendered
Request Deadline to Repurchase to Repurchase (all classes)
-------------------------------------------------------------------------------------
October 31, 2002 20% 10,117,625 5,497,855
January 31, 2003 20 8,583,932 3,330,141
April 30, 2003 20 8,341,273 2,637,363
July 31, 2003 20 8,835,681 1,790,056
The Fund is authorized to issue an unlimited number of shares of each class and
at the date of this report has registered 105 million shares, par value $0.001
each. Class A shares are not available for direct purchase except by exchange
of shares of certain other Oppenheimer funds, by purchase through "wrap"
programs of financial advisors that have special agreements with the
Distributor for that purpose, or by automatic conversion of
29 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest Continued
Class B shares. The Fund sells Class B and Class C shares continuously at the
respective offering price for each class of shares. Transactions in shares of
beneficial interest were as follows:
Year Ended July 31, 2003 Year Ended July 31, 2002
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------
Class A
Converted and exchanges 2,133,732 $ 19,355,973 831,509 $ 7,861,328
Dividends and/or
distributions reinvested 134,239 1,208,043 161,641 1,493,016
Repurchased (1,255,972) (11,243,501) (1,970,989) (18,185,743)
--------------------------------------------------------------------
Net increase (decrease) 1,011,999 $ 9,320,515 (977,839) $ (8,831,399)
====================================================================
- -----------------------------------------------------------------------------------------------------------
Class B
Sold 2,286,292 $ 20,672,656 2,121,683 $ 20,100,762
Dividends and/or
distributions reinvested 531,738 4,784,062 673,955 6,228,099
Repurchased (5,385,598) (48,276,184) (6,404,715) (58,969,553)
--------------------------------------------------------------------
Net decrease (2,567,568) $(22,819,466) (3,609,077) $ (32,640,692)
====================================================================
- -----------------------------------------------------------------------------------------------------------
Class C
Sold 4,345,531 $ 39,484,371 4,144,208 $ 39,161,436
Dividends and/or
distributions reinvested 778,076 7,002,451 1,147,042 10,610,827
Repurchased (8,805,619) (78,864,728) (15,983,278) (147,107,010)
--------------------------------------------------------------------
Net decrease (3,682,012) $(32,377,906) (10,692,028) $ (97,334,747)
====================================================================
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended July 31, 2003, were $1,659,438
and $29,280,196, respectively.
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets of
the Fund, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66%
of the next $200 million, and 0.60% of average annual net assets in excess of
$800 million. The management fee is based upon a percentage of the Fund's
average annual net assets and is shown without giving effect to a voluntary
reduction by the Manager of 0.20% of the management fee annually. As a result
of this agreement the Fund was reimbursed $819,450 for the year ended July 31,
2003. That voluntary reduction and waiver may be withdrawn or amended at any
time.
30 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the year ended July 31, 2003, the Fund
paid $472,319 to OFS for services to the Fund.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes, up to an annual rate of 0.35% of average net assets per
class. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) Fees. Under its General Distributor's
Agreement with the Manager, OppenheimerFunds Distributor, Inc. (the
Distributor) acts as the Fund's principal underwriter in the continuous public
offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
Concessions Concessions
on Class B on Class C
Shares Advanced Shares Advanced
Year Ended by Distributor 1 by Distributor 1
--------------------------------------------------------------------
July 31, 2003 $283,962 $273,673
1. The Distributor advances concession on payments to dealers for sales of
Class B and Class C shares from its own resources at the time of sale.
Class A Early Class B Early Class C Early
Withdrawal Withdrawal Withdrawal
Charge (Retained Charge (Retained Charge (Retained
Year Ended by Distributor) by Distributor) by Distributor)
--------------------------------------------------------------------------------------
July 31, 2003 $1,986 $509,271 $26,687
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares. Because the Fund is a closed-end
fund and is not able to rely on the provisions of Rule 12b-1 of the Investment
Company Act of 1940 (the Act), the Fund has requested and obtained from the
Securities and Exchange Commission (the SEC) exemptive relief from certain
provisions of the Act. The operation of those plans is contingent upon the
continued availability of that exemptive relief from the SEC. Under those plans
the Fund pays the Distributor for all or a portion of its costs incurred in
connection with the distribution and/or servicing of the shares of the
particular class.
- --------------------------------------------------------------------------------
Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class
A shares. The Class A Service Plan permits reimbursements to the Distributor at
a rate of up to 0.25% of average annual net assets of Class A shares purchased.
While the plan permits the Board of Trustees to authorize payments to the
Distributor to reimburse itself for services under the plan, the Board has not
yet done so. The Distributor makes payments to plan recipients quarterly at an
annual rate not to exceed 0.25% of the average annual net assets consisting of
Class A shares of the Fund. For the year ended July 31, 2003, payments under
the Class A Plan totaled $87,094, all of which were paid by the
31 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
Distributor to recipients, which included $2 retained by the Distributor and
$11,794 which was paid to an affiliate of the Manager. Any unreimbursed
expenses the Distributor incurs with respect to Class A shares in any fiscal
year cannot be recovered in subsequent years.
- --------------------------------------------------------------------------------
Distribution and Service Plans for Class B and Class C Shares. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares. Under
the plans, the Fund pays the Distributor an annual asset-based sales charge of
0.75% per year on Class B shares and on Class C shares. The Board of Trustees
has currently set that fee rate at 0.50% of average annual net assets of the
respective class per year under each plan but may increase it up to 0.75% in
the future. The Distributor also receives a service fee of 0.25% per year under
each plan.
Distribution fees paid to the Distributor for the year ended July 31, 2003,
were as follows:
Distributor's
Distributor's Aggregate
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- ------------------------------------------------------------------------------------------------
Class B Plan $1,224,902 $840,944 $4,973,056 3.17%
Class C Plan 1,583,434 158,838 7,794,487 3.76
- --------------------------------------------------------------------------------
5. Illiquid Securities
As of July 31, 2003, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. Most
Senior Loans and many of the Fund's other investments are illiquid. The
aggregate value of illiquid securities subject to this limitation as of July
31, 2003 was $340,545,227, which represents 83.36% of the Fund's net assets.
- --------------------------------------------------------------------------------
6. Loan Commitments
Pursuant to the terms of certain credit agreements, the Fund has unfunded loan
commitments of $7,280,726 at July 31, 2003. These unfunded loan commitments
must be funded by the Fund upon the borrower's discretion. The Fund is
obligated to fund these commitments at the time of the request by the borrower.
The Fund generally will maintain with its custodian, short-term investments
having an aggregate value at least equal to the amount of unfunded loan
commitments.
32 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
7. Bank Borrowings
The Fund may borrow up to 33 1/3% of its total assets from a bank to purchase
portfolio securities, or for temporary and emergency purposes. The Fund may
borrow up to a certain percentage of its total assets from a bank to purchase
portfolio securities (a technique referred to as "leverage"), to finance share
repurchases during Repurchase Offers, and to fund additional loan commitments
or for cash management purposes. The Fund has entered into an agreement which
enables it to participate with certain other Oppenheimer funds in a committed,
unsecured line of credit with a bank, which permits borrowings up to $350
million, collectively. Interest is charged to each fund, based on its
borrowings, at a rate equal to the Federal Funds Rate plus 0.625%. The Fund
also pays a commitment fee equal to its pro rata share of the average
unutilized amount of the credit facility at a rate of 0.09% per annum.
The Fund had no borrowings outstanding at July 31, 2003. For the year ended
July 31, 2003, the average monthly loan balance was $6,847,728 at an average
daily interest rate of 2.044%. The Fund had gross borrowings and gross loan
repayments of $212,700,000 and $213,300,000, respectively, during the year
ended July 31, 2003. The maximum amount of borrowings outstanding at any
month-end was $16,700,000. The Fund paid $65,531 in commitment fees during the
year ended July 31, 2003.
33 | OPPENHEIMER SENIOR FLOATING RATE FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
Oppenheimer Senior Floating Rate Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Senior Floating Rate Fund, including the statement of investments,
as of July 31, 2003, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for the periods indicated.
These financial statements and financial highlights are the responsibility of
the Fund'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 owned as of July 31, 2003, by
correspondence with the custodian and brokers; where replies were not received
from brokers, 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, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Senior Floating Rate Fund as of July 31, 2003, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for the
periods indicated, in conformity with accounting principles generally accepted
in the United States of America.
Deloitte & Touche LLP
Denver, Colorado
September 3, 2003
34 | OPPENHEIMER SENIOR FLOATING RATE FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2003. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the year ended July 31, 2003
are eligible for the corporate dividend-received deduction.
Dividends paid by the Fund during the fiscal year ended July 31, 2003 which
are not designated as capital gain distribution, may be eligible for lower
individual income tax rates to the extent that the Fund has received qualified
dividend income as stipulated by recent tax legislation. In early 2004,
shareholders of record will receive information regarding the percentage of
distributions that are eligible for lower individual income tax rates. The
amount will be the maximum amount allowed.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES Unaudited
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and
Procedures is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, (ii) on the Fund's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Fund will be required to file new Form N-PX, with its complete
proxy voting record for the 12 months ended June 30th, no later than August
31st of each year. The first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
35 | OPPENHEIMER SENIOR FLOATING RATE FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
Name, Position(s) Held Principal Occupation(s) During Past 5 Years; Other
with Fund, Length Trusteeships/Directorships Held by Trustee; Number of
of Service, Age Portfolios in Fund Complex Currently Overseen by
Trustee
INDEPENDENT TRUSTEES The address of each Trustee in the chart below is
6803 S. Tucson Way, Centennial, CO 80112-3924. Each
Trustee serves for an indefinite term, until his or
her resignation, retirement, death or removal.
James C. Swain, Formerly, Chief Executive Officer (until August 27,
Chairman and Trustee 2002) of the Board II Funds, Vice Chairman (until
(since 1999) January 2, 2002) of OppenheimerFunds, Inc. (the
Age: 69 Manager) and President and a director (until 1997) of
Centennial Asset Management Corporation (a
wholly-owned investment advisory subsidiary of the
Manager). Oversees 43 portfolios in the
OppenheimerFunds complex.
William L. Armstrong, Chairman of the following private mortgage banking
Vice Chairman (since 2003) companies: Cherry Creek Mortgage Company (since
and Trustee (since 1999) 1991), Centennial State Mortgage Company (since
Age: 66 1994), The El Paso Mortgage Company (since 1993),
Transland Financial Services, Inc. (since 1997);
Chairman of the following private companies: Great
Frontier Insurance (insurance agency) (since 1995),
Ambassador Media Corporation and Broadway Ventures
(since 1984); a director of the following public
companies: Helmerich & Payne, Inc. (oil and gas
drilling/production company) (since 1992) and
UNUMProvident (insurance company) (since 1991). Mr.
Armstrong is also a Director/Trustee of Campus
Crusade for Christ and the Bradley Foundation.
Formerly a director of the following: Storage
Technology Corporation (a publicly-held computer
equipment company) (1991-February 2003), and
International Family Entertainment (television
channel) (1992-1997), Frontier Real Estate, Inc.
(residential real estate brokerage) (1994-1999), and
Frontier Title (title insurance agency) (1995-June
1999); a U.S. Senator (January 1979-January 1991).
Oversees 43 portfolios in the OppenheimerFunds
complex.
Robert G. Avis, Formerly, Director and President of A.G. Edwards
Trustee (since 1999) Capital, Inc. (General Partner of private equity
Age: 72 funds) (until February 2001); Chairman, President and
Chief Executive Officer of A.G. Edwards Capital, Inc.
(until March 2000); Vice Chairman and Director of
A.G. Edwards, Inc. and Vice Chairman of A.G. Edwards
& Sons, Inc. (its brokerage company subsidiary)
(until March 1999); Chairman of A.G. Edwards Trust
Company and A.G.E. Asset Management (investment
advisor) (until March 1999); and a Director (until
March 2000) of A.G. Edwards & Sons and A.G. Edwards
Trust Company. Oversees 43 portfolios in the
OppenheimerFunds complex.
George C. Bowen, Formerly (until April 1999): Senior Vice President
Trustee (since 1999) (from September 1987) and Treasurer (from March 1985)
Age: 66 of the Manager; Vice President (from June 1983) and
Treasurer (since March 1985) of OppenheimerFunds
Distributor, Inc. (a subsidiary of the Manager);
Senior Vice President (since February 1992),
Treasurer (since July 1991) Assistant Secretary and a
director (since December 1991) of Centennial Asset
Management Corporation; Vice President (since October
1989) and Treasurer (since April 1986) of HarbourView
Asset Management Corporation (an investment advisory
subsidiary of the Manager); President, Treasurer and
a director (June 1989-January 1990) of Centennial
Capital Corporation (an investment advisory
subsidiary of the Manager); Vice President and
Treasurer (since August 1978) and Secretary (since
April 1981) of Shareholder Services, Inc. (a transfer
agent subsidiary of the Manager); Vice President,
Treasurer and Secretary (since November 1989) of
Shareholder Financial Services, Inc. (a transfer
agent subsidiary of the Manager); Assistant Treasurer
(since March 1998) of Oppenheimer Acquisition Corp.
(the Manager's parent corporation); Treasurer (since
November 1989) of Oppenheimer Partnership Holdings,
Inc. (a holding company subsidiary of the Manager);
36 | OPPENHEIMER SENIOR FLOATING RATE FUND
George C. Bowen, Vice President and Treasurer (since July 1996) of
Continued Oppenheimer Real Asset Management, Inc. (an
investment advisory subsidiary of the Manager); Chief
Executive Officer and director (since March 1996) of
MultiSource Services, Inc. (a broker-dealer
subsidiary of the Manager); Treasurer (since October
1997) of OppenheimerFunds International Ltd. and
OppenheimerFunds plc (offshore fund management
subsidiaries of the Manager). Oversees 43 portfolios
in the OppenheimerFunds complex.
Edward L. Cameron, A member of The Life Guard of Mount Vernon, George
Trustee (since 1999) Washington's home (since June 2000). Formerly (March
Age: 64 2001 - May 2002) Director of Genetic ID, Inc. and its
subsidiaries (a privately held biotech company); a
partner with PricewaterhouseCoopers LLP (from
1974-1999) (an accounting firm) and Chairman (from
1994-1998), Price Waterhouse LLP Global Investment
Management Industry Services Group. Oversees 43
portfolios in the OppenheimerFunds complex.
Jon S. Fossel, Chairman and Director (since 1998) of Rocky Mountain
Trustee (since 1999) Elk Foundation (a not-for-profit foundation); and a
Age: 61 director (since October 1999) of P.R. Pharmaceuticals
(a privately held company) and UNUMProvident (an
insurance company) (since June 1, 2002). Formerly
Chairman and a director (until October 1996) and
President and Chief Executive Officer (until October
1995) of the Manager; President, Chief Executive
Officer and a director of Oppenheimer Acquisition
Corp., Shareholders Services Inc. and Shareholder
Financials Services, Inc. (until October 1995).
Oversees 43 portfolios in the OppenheimerFunds
complex.
Sam Freedman, Director of Colorado Uplift (a non-profit charity)
Trustee (since 1999) (since September 1984). Formerly (until October 1994)
Age: 62 Mr. Freedman held several positions in subsidiary or
affiliated companies of the Manager. Oversees 43
portfolios in the OppenheimerFunds complex.
F. William Marshall, Jr., Trustee (since 1996) of MassMutual Institutional
Trustee (since 2000) Funds and of MML Series Investment Fund (open-end
Age: 61 investment companies); Trustee (since 1987), Chairman
of the Board (since 2003) and Chairman of the
investment committee (since 1994) for the Worcester
Polytech Institute; President and Treasurer (since
January 1999) of the SIS Fund (a private not for
profit charitable fund); Trustee (since 1995) of the
Springfield Library and Museum Association; Trustee
(since 1996) of the Community Music School of
Springfield. Formerly, member of the investment
committee of the Community Foundation of Western
Massachusetts (1998 - 2003); Chairman (January
1999-July 1999) of SIS & Family Bank, F.S.B.
(formerly SIS Bank); President, Chief Executive
Officer and Director (May 1993-December 1998) of SIS
Bankcorp, Inc. and SIS Bank (formerly Springfield
Institution for Savings) and Executive Vice President
(January 1999-July 1999) of Peoples Heritage
Financial Group, Inc. Oversees 43 portfolios in the
OppenheimerFunds complex.
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is 498
AND OFFICER Seventh Avenue, New York, NY 10018. Mr. Murphy serves
for an indefinite term, until his resignation, death
or removal.
John V. Murphy, Chairman, Chief Executive Officer and director (since
President and Trustee June 2001) and President (since September 2000) of
(since 2001) the Manager; President and a director or trustee of
Age: 54 other Oppenheimer funds; President and a director
(since July 2001) of Oppenheimer Acquisition Corp.
and of Oppenheimer Partnership Holdings, Inc.; a
director (since November 2001) of OppenheimerFunds
Distributor, Inc.;
37 | OPPENHEIMER SENIOR FLOATING RATE FUND
TRUSTEES AND OFFICERS Unaudited / Continued
John V. Murphy, Chairman and a director (since July 2001) of
Continued Shareholder Services, Inc. and of Shareholder
Financial Services, Inc.; President and a director
(since July 2001) of OppenheimerFunds Legacy Program
(a charitable trust program established by the
Manager); a director of the following investment
advisory subsidiaries of OppenheimerFunds, Inc.: OFI
Institutional Asset Management, Inc. and Centennial
Asset Management Corporation (since November 2001),
HarbourView Asset Management Corporation and OFI
Private Investments, Inc. (since July 2001);
President (since November 1, 2001) and a director
(since July 2001) of Oppenheimer Real Asset
Management, Inc.; a director (since November 2001) of
Trinity Investment Management Corp. and Tremont
Advisers, Inc. (investment advisory affiliates of the
Manager); Executive Vice President (since February
1997) of Massachusetts Mutual Life Insurance Company
(the Manager's parent company); a director (since
June 1995) of DLB Acquisition Corporation (a holding
company that owns shares of David L. Babson &
Company, Inc.); formerly, Chief Operating Officer
(September 2000-June 2001) of the Manager; President
and trustee (November 1999-November 2001) of MML
Series Investment Fund and MassMutual Institutional
Funds (open-end investment companies); a director
(September 1999-August 2000) of C.M. Life Insurance
Company; President, Chief Executive Officer and
director (September 1999-August 2000) of MML Bay
State Life Insurance Company; a director (June
1989-June 1998) of Emerald Isle Bancorp and Hibernia
Savings Bank (a wholly-owned subsidiary of Emerald
Isle Bancorp). Oversees 73 portfolios in the
OppenheimerFunds complex.
- --------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below is as
follows: for Mr. Zack, 498 Seventh Avenue, New York,
NY 10018, for Messrs. Welsh, Wixted and Zimmer and
Ms. Hui, 6803 S. Tucson Way, Centennial, CO
80112-3924. Each Officer serves for an annual term or
until his or her earlier resignation, death or
removal.
Arthur J. Zimmer, Senior Vice President of the Manager (since June
Vice President 1997) and of HarbourView Asset Management Corporation
(since 1999) (since April 1999); an officer of 1 portfolio in the
Age: 56 OppenheimerFunds complex; formerly Vice President of
the Manager (October 1990 - June 1997); Vice
President of Centennial Asset Management Corporation
(June 1997 - November 2001).
Margaret Hui, Assistant Vice President of the Manager (since
Assistant Vice President October 1999); an officer of 1 portfolio in the
(since 1999) OppenheimerFunds complex; before joining the Manager,
Age: 44 she was Vice President - Syndications of Sanwa Bank
California (January 1998 - September 1999), prior to
which she was a Vice President of Banque Nationale de
Paris (May 1990 - January 1998).
Joseph Welsh, Vice President (since December 2000) of the Manager;
Assistant Vice President a high yield bond analyst for the Manager (since
(since 1999) January 1995); an officer of 1 portfolio in the
Age: 39 OppenheimerFunds complex; formerly, Assistant Vice
President of the Manager (December 1996-November
2000).
Brian W. Wixted, Senior Vice President and Treasurer (since March
Treasurer (since 1999) 1999) of the Manager; Treasurer (since March 1999) of
Age: 43 HarbourView Asset Management Corporation, Shareholder
Services, Inc., Oppenheimer Real Asset Management
Corporation, Shareholder Financial Services, Inc.,
Oppenheimer Partnership Holdings, Inc., OFI Private
Investments, Inc. (since March 2000),
OppenheimerFunds International Ltd. and
OppenheimerFunds plc (offshore fund management
subsidiary of the Manager) (since May 2000) and OFI
Institutional Asset Management, Inc. (since November
2000); Treasurer and Chief Financial Officer (since
May 2000) of Oppenheimer Trust Company (a trust
company subsidiary of the Manager);
38 | OPPENHEIMER SENIOR FLOATING RATE FUND
Brian W. Wixted, Assistant Treasurer (since March 1999) of Oppenheimer
Continued Acquisition Corp. and OppenheimerFunds Legacy Program
(since April 2000); formerly Principal and Chief
Operating Officer (March 1995-March 1999), Bankers
Trust Company-Mutual Fund Services Division. An
officer of 89 portfolios in the OppenheimerFunds
complex.
Robert G. Zack, Senior Vice President (since May 1985) and General
Vice President & Counsel (since February 2002) of the Manager; General
Secretary (since 2001) Counsel and a director (since November 2001) of
Age: 54 OppenheimerFunds Distributor, Inc.; Senior Vice
President and General Counsel (since November 2001)
of HarbourView Asset Management Corporation; Vice
President and a director (since November 2000) of
Oppenheimer Partnership Holdings, Inc.; Senior Vice
President, General Counsel and a director (since
November 2001) of Shareholder Services, Inc.,
Shareholder Financial Services, Inc., OFI Private
Investments, Inc., Oppenheimer Trust Company and OFI
Institutional Asset Management, Inc.; General Counsel
(since November 2001) of Centennial Asset Management
Corporation; a director (since November 2001) of
Oppenheimer Real Asset Management, Inc.; Assistant
Secretary and a director (since November 2001) of
OppenheimerFunds International Ltd.; Vice President
(since November 2001) of OppenheimerFunds Legacy
Program; Secretary (since November 2001) of
Oppenheimer Acquisition Corp.; formerly Acting
General Counsel (November 2001-February 2002) and
Associate General Counsel (May 1981-October 2001) of
the Manager; Assistant Secretary of Shareholder
Services, Inc. (May 1985-November 2001), Shareholder
Financial Services, Inc. (November 1989-November
2001); OppenheimerFunds International Ltd. And
OppenheimerFunds plc (October 1997-November 2001). An
officer of 89 portfolios in the OppenheimerFunds
complex.
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustee's and is available without charge upon request.
39 | OPPENHEIMER SENIOR FLOATING RATE FUND
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Fund has determined that Edward L.
Cameron, the Chairman of the Board's Audit Committee, possesses the technical
attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as
an "audit committee financial expert," and has designated Mr. Cameron as the
Audit Committee's financial expert. Mr. Cameron is an "independent" Trustee
pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of July 31, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to be appropriately
designed to ensure that information required to be disclosed by
registrant in the reports that it files under the Securities Exchange
Act of 1934 (a) is accumulated and communicated to registrant's
management, including its principal executive officer and principal
financial officer, to allow timely decisions regarding required
disclosure, and (b) is recorded, processed, summarized and reported,
within the time periods specified in the rules and forms adopted by the
U.S. Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)