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
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(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
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(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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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, 2003 - JULY 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
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FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? Below is a discussion by OppenheimerFunds, Inc., of
the Fund's performance during its fiscal year ended July 31, 2004.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
The Fund's performance during the reporting period was driven primarily by
improving business conditions for most issuers of senior floating-rate debt, as
well as rising demand for this asset class. Lower default rates also added to
investor confidence. At the same time, in the wake of the highly publicized
accounting scandals of 2001 and 2002, many U.S. corporations took steps to
strengthen their balance sheets by paying down debt and cutting expenses. As
investor confidence improved, demand for senior floating-rate loans increased,
benefiting their prices.
Although short-term interest rates remained near historical lows for much of
the reporting period, the London Interbank Offer Rate (LIBOR) began to rise
during the second quarter of 2004 as investors began to anticipate a less
accommodative monetary policy from the U.S. Federal Reserve Board. The emergence
of potential inflationary pressures--including greater job growth and higher
energy prices--prompted the Fed to raise the overnight federal funds rate from
1% to 1.25% on June 30, 2004. Because shorter-term LIBOR rates tend to
anticipate changes in the federal funds rate, yields of senior floating-rate
loans began to rise well before the Fed actually implemented its June 30 rate
hike.
In this improving market environment, the Fund received especially strong
contributions to its performance from its investments in the energy, wireless
telecommunications and transportation sectors, all of which represented
overweighted positions in the Fund and contributed positively to the Fund's
performance. On the other hand, the broadcasting, health care and cable
television industry groups generally failed to keep pace with other market
sectors. While these sectors produced disappointing results relative to other
areas of the floating-rate senior loan market and hindered the Fund's returns
somewhat, they nonetheless produced positive absolute returns over the reporting
period. In addition, because we maintained a lower level of exposure than the
benchmark to most of the market's lagging sectors, their adverse impact on the
Fund's performance was relatively limited.
9 | OPPENHEIMER SENIOR FLOATING RATE FUND
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FUND PERFORMANCE DISCUSSION
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As market conditions improved, we became more comfortable with loans carrying
lower credit ratings and therefore took explicit steps to shift the Fund into
loans that passed our stringent review process. We also placed slightly greater
emphasis on market sectors that we considered to be economically sensitive,
including the energy, automobile, transportation, chemicals and metals industry
groups.
As of end of the reporting period, we remain optimistic about the prospects
for senior floating-rate loans for the remainder of 2004. Although loan spreads
have started to fall, a rising short-term interest rate environment, caused by
further increases in the Fed Funds rate, will likely be positive for the asset
class.
10 | OPPENHEIMER SENIOR FLOATING RATE FUND
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NOTES
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TOTAL RETURNS INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS DISTRIBUTIONS IN A HYPOTHETICAL INVESTMENT FOR THE PERIODS SHOWN.
THE FUND'S TOTAL RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF INCOME TAXES ON
AN INDIVIDUAL'S INVESTMENT. TAXES MAY REDUCE YOUR ACTUAL INVESTMENT RETURNS ON
INCOME OR GAINS PAID BY THE FUND OR ANY GAINS YOU MAY REALIZE IF YOU SELL YOUR
SHARES.THE FUND'S INVESTMENT ADVISOR HAS VOLUNTARILY UNDERTAKEN TO WAIVE THE
FIRST 0.20% OF ITS MANAGEMENT FEE. THIS WAIVER CAN BE MODIFIED OR TERMINATED AT
ANY TIME BY THE ADVISOR. THIS WAIVER INCREASES THE FUND'S INCOME AND YIELD.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
THE FUND'S INVESTMENT STRATEGY AND FOCUS CAN CHANGE OVER TIME. THE MENTION OF
SPECIFIC FUND HOLDINGS DOES NOT CONSTITUTE A RECOMMENDATION BY OPPENHEIMERFUNDS,
INC.
Oppenheimer Senior Floating Rate Fund is a continuously offered closed-end fund
whose shares are not listed on any stock exchange or national quotation service.
The Fund's shares are not redeemable for cash daily but the Fund seeks to
provide a degree of liquidity to shareholder by making quarterly offers to
repurchase a portion of the Fund's shares. However, there can be no assurance
that the Fund will be able to repurchase all shares tendered in a particular
repurchase offer. Shares of the Fund are not deposits or obligations of any
bank, are not guaranteed by any bank, are not insured by the FDIC or any other
agency, and involve investment risks, including the possible loss of the
principal amount invested. Shares of the Fund will fluctuate and the Fund is not
a money market fund.
Please note that Oppenheimer Senior Floating Rate Fund has a limited operating
history. The inception date of all classes is 9/8/99. Therefore you should not
consider the performance shown to be indicative of long-term results. The Fund
is not intended as an investor's only investment, but to complement other
holdings.
CLASS A shares of the Fund were first publicly offered on 9/8/99. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 3.50%.
CLASS B shares of the Fund were first publicly offered on 9/8/99. Class B total
returns are shown net of the applicable early withdrawal charge of 3% (one-year)
or 1% (since inception). Class B shares are subject to an annual 0.50%
asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 9/8/99. Class C shares
are shown net of the applicable 1% early withdrawal charge for the one-year
period. Class C shares are subject to an annual 0.50% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
11 | OPPENHEIMER SENIOR FLOATING RATE FUND
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FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchase payments,
reinvested dividends, or other distributions; redemption fees; and exchange
fees; and (2) ongoing costs, including management fees; distribution and service
fees; and other Fund expenses. These examples are intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended July 31, 2004.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), or a $12.00 fee imposed annually
on accounts valued at less than $500.00 (subject to exceptions described in
12 | OPPENHEIMER SENIOR FLOATING RATE FUND
the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
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BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING 6 MONTHS
VALUE (2/1/04) VALUE (7/31/04) ENDED 7/31/04
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Class A Actual $1,000.00 $1,034.10 $4.80
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Class A Hypothetical 1,000.00 1,020.14 4.77
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Class B Actual 1,000.00 1,030.10 7.77
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Class B Hypothetical 1,000.00 1,017.21 7.72
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Class C Actual 1,000.00 1,030.30 7.47
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Class C Hypothetical 1,000.00 1,017.50 7.42
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 182/366
(to reflect the one-half year period). Those expense ratios for the 6-month
period ended July 31, 2004 are as follows:
CLASS EXPENSE RATIOS
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Class A 0.95%
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Class B 1.54
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Class C 1.48
The expense ratios reflect voluntary reimbursements of expenses by the Fund's
Manager that can be terminated at any time, without advance notice. The
"Financial Highlights" tables in the Fund's financial statements, included in
this report, also show the gross expense ratios, without such reimbursements.
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13 | OPPENHEIMER SENIOR FLOATING RATE FUND
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STATEMENT OF INVESTMENTS July 31, 2004
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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CORPORATE LOANS--111.0%
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CONSUMER DISCRETIONARY--34.0%
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AUTO COMPONENTS--8.2%
Collins & Aikman Corp., Sr. Sec. Credit Facilities Letter of Credit
Term Loan, 6%, 12/31/05 1,2 $ 2,456,140 $ 2,480,702
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Collins & Aikman Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche A1, 6%, 12/31/05 1,2 1,488,036 1,490,826
Tranche B, 7.75%, 12/21/05 1,2 1,348,383 1,362,541
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Exide Technologies, Sr. Sec. Credit Facilities Term Loan:
Tranche US, 4.813%, 12/31/08 1,2 3,000,000 3,026,250
Tranche EU, 4.813%, 12/31/08 1,2 3,000,000 3,013,125
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Federal Mogul Corp., Sr. Sec. Credit Facilities Pre-petition Revolving
Credit Loan, Tranche B, 2/24/05 1,2,4 5,353,185 4,976,792
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Federal Mogul Corp., Sr. Sec. Credit Facilities Term Loan, Debtor in
Possession, Tranche B, 4.313%-4.50%, 2/6/05 1,2 3,838,162 3,871,746
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Goodyear Tire & Rubber Co. (The), Sr. Sec. Credit Facilities 1st Lien
Asset-Backed Loan, 5.179%, 3/31/06 1,2 2,000,000 2,014,376
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Goodyear Tire & Rubber Co. (The), Sr. Sec. Credit Facilities 2nd Lien
Asset-Backed Loan, 6.059%, 3/31/06 1,2 5,000,000 5,064,065
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Goodyear Tire & Rubber Co. (The), Sr. Sec. Credit Facilities Revolving
Credit Loan, 1%, 4/30/05 1,2 5,000,000 4,987,500
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Grand Vehicle Works Holdings Corp., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 7/30/11 1,2,4 10,000,000 9,987,500
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Mark IV Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.57%-4.87%, 6/23/11 1,2 10,000,000 10,165,630
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Meridian Automotive Systems, Inc., Sr. Sec. Credit Facilities
1st Lien Term Loan:
Tranche B, 3/23/10 1,2,4 2,000,000 1,997,500
Tranche B, 6%-6.086%, 3/23/10 2 7,481,250 7,471,898
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Metaldyne Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche D, 5.875%, 12/31/09 2 7,129,963 7,143,332
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Progressive Group of Cos., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.639%, 8/11/07 1,2 2,547,564 2,565,079
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Safelite Glass Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 4.98%, 12/17/07 1,2 1,315,954 1,266,606
Tranche B, 5.48%, 12/17/07 1,2 2,115,296 2,035,972
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Tenneco Automotive, Inc., Sr. Sec. Credit Facilities Letter of
Credit Term Loan, Tranche B, 4.36%, 12/12/08 1,2 1,551,724 1,583,728
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Tenneco Automotive, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.253%, 12/12/10 1,2 3,431,034 3,498,942
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TI Automotive Ltd., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 4.838%, 6/7/11 2 10,130,000 10,186,981
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Tower Automotive, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 5.82%, 5/24/09 2 8,000,000 8,026,664
14 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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AUTO COMPONENTS Continued
Transportation Technologies Industry, Inc., Sr. Sec. Credit Facilities
1st Lien Term Loan, 4.985%-5.36%, 3/14/09 1,2 $ 1,995,000 $ 2,009,962
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Transportation Technologies Industry, Inc., Sr. Sec. Credit Facilities
2nd Lien Term Loan, Tranche B, 8.75%, 3/14/09 1,2 4,000,000 4,072,500
----------------
104,300,217
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HOTELS, RESTAURANTS & LEISURE--5.4%
Aladdin Gaming LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche C, 2.946%, 2/26/08 1,2 4,000,000 4,020,000
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AMF Bowling Worldwide, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.15%-4.67%, 8/5/09 1,2 2,743,125 2,769,700
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Buffets, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 4.59%, 2/24/11 2 7,573,771 7,709,864
Tranche B, 4.98%, 2/24/11 1,2 2,621,861 2,668,974
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Caribbean Restaurants LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.617%, 5/25/09 2 9,000,000 9,123,750
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CKE Restaurants, Inc., Sr. Sec. Credit Facilities Term Loan, 4.375%, 5/28/10 1,2 6,605,487 6,729,340
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Felcor Lodging LP, Sr. Sec. Credit Facilities Floating Rate Nts., 5.84%, 6/1/11 1,2 12,000,000 12,030,000
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Global Cash Access LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B, 4.23%, 3/10/10 1,2 2,962,500 3,012,492
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Green Valley Gaming Enterprises, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche B, 4.336%, 12/22/10 1,2 1,492,500 1,511,156
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Metro-Goldwyn-Mayer Studios, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche B, 3.98%, 4/26/11 1,2 2,000,000 2,012,000
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Pinnacle Entertainment, Inc., Sr. Sec. Credit Facilities Term Loan,
1.25%-4.98%, 12/15/09 1,2 1,751,702 1,777,614
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Scientific Games Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche D, 3.98%-4.08%, 11/1/09 1,2 4,775,005 4,842,652
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Wyndam International, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche I, 6.125%, 6/30/06 1,2 6,167,984 6,127,781
Tranche II, 7.125%, 4/1/06 1,2 3,858,887 3,848,897
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68,184,220
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HOUSEHOLD DURABLES--0.7%
Sealy Mattress Co., Sr. Unsec. Credit Facilities Floating Rate Nts.,
5.973%, 4/5/13 1,2 2,000,000 2,045,000
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Simmons Co., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.125%-4.688%, 12/15/11 1,2 2,937,777 2,987,352
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Springs Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.625%, 9/5/08 1,2 3,952,997 4,003,232
----------------
9,035,584
15 | OPPENHEIMER SENIOR FLOATING RATE FUND
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STATEMENT OF INVESTMENTS Continued
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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LEISURE EQUIPMENT & PRODUCTS--0.4%
24 Hour Fitness, Inc., Sr. Sec. Credit Facilities Term Loan,
5.125%-5.375%, 11/4/09 1,2 $ 5,472,500 $ 5,540,906
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MEDIA--15.9%
Adams Outdoor Advertising, Inc., Sr. Sec. Credit Facilities
2nd Lien Term Loan, 5.13%, 4/15/12 1,2 3,000,000 3,046,875
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American Reprographics Co., Sr. Sec. Credit Facilities
2nd Lien Term Loan, 8.625%, 12/18/09 1,2 9,000,000 9,360,000
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Atlantic Broadband LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.61%, 9/1/11 1,2 4,000,000 4,064,376
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Baker & Taylor Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
8.39%, 5/10/11 1,2 6,000,000 6,000,000
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Carmike Cinemas, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
4.41%, 2/4/09 1,2 5,806,660 5,948,198
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Cebridge Connections Holding LLC, Sr. Sec. Credit Facilities
2nd Lien Term Loan, Tranche C, 8%-9.098%, 2/23/10 1,2 16,459,999 16,336,550
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Century-TCI California LP, Sr. Sec. Credit Facilities Revolving
Credit Loan, 4.18%, 12/31/07 1,2 5,337,500 5,280,314
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Century-TCI California LP, Sr. Sec. Credit Facilities Term Loan,
4.18%, 12/31/07 1,2 6,662,500 6,591,118
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Charter Communications Operating LLC, Sr. Sec. Credit Facilities Term Loan:
Tranche A, 4.67%, 4/27/10 2 10,000,000 9,763,190
Tranche B, 4.92%, 4/27/11 2 11,500,000 11,358,412
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Cinemark, Inc., Sr. Sec. Credit Facilities Term Loan, 3.43%-3.63%, 3/31/11 1,2 997,500 1,011,839
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Cinram International, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche C, 7.09%, 4/10/10 2 9,448,093 9,563,246
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Cygnus Business Media, Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.131%, 6/30/10 1,2 5,000,000 4,987,500
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F&W Publications, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche C, 7.68%, 12/6/10 1,2 3,000,000 3,028,125
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F&W Publications, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.93%, 1/31/10 1,2 4,118,175 4,161,931
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Fisher Broadcasting, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
5.47%, 2/28/10 1,2 1,271,673 1,274,852
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Frontiervision Operating Partners LP, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.775%, 3/31/06 1,2 8,997,894 9,011,013
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GT Brands LLC, Sr. Sec. Credit Facilities Term Loan, Tranche A,
9.098%, 9/6/07 1,2 3,413,352 3,413,352
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Herald Media, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 4.05%, 7/31/11 1,2 3,500,000 3,543,750
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Insight Communications Co., Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 3.938%, 12/31/09 1,2 1,492,500 1,516,856
Tranche B Add-On, 3.938%, 12/31/09 1,2 1,492,500 1,516,856
16 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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MEDIA Continued
Loews Cineplex Entertainment Corp., Sr. Sec. Credit Facilities Term Loan,
5.656%, 7/8/11 1,2 $ 8,000,000 $ 8,016,248
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Mitchell International, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
6.393%, 7/20/11 1,2 4,000,000 4,042,500
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Mitchell International, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
7/20/12 1,2,4 2,500,000 2,506,250
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Nep, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B,
5.70%, 12/31/10 1,2 1,500,000 1,515,938
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Network Commerce, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
5.37%-5.47%, 6/22/11 1,2 4,000,000 4,045,000
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Regal Cinemas, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
3.49%-3.696%, 10/19/10 2 13,057,159 13,228,534
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TransWestern Publishing Company LLC, Sr. Sec. Credit Facilities
2nd Lien Term Loan, 4.90%-5.23%, 2/25/12 1,2 12,978,750 13,169,382
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United Pan-Europe Communications NV, Sr. Sec. Credit Facilities Term Loan,
Tranche C-2, 6.65%-7.381%, 3/31/09 1,2 15,547,000 15,697,619
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Vutek, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 6.639%, 6/24/11 1,2 7,000,000 7,065,625
- ------------------------------------------------------------------------------------------------------------------------------------
XM Satellite Radio, Inc., Sr. Sec. Credit Facilities Term Loan, 6.65%, 5/1/09 1,2 9,000,000 9,135,000
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Yankee Holdings LP, Sr. Sec. Credit Facilities Term Loan, 3.86%-4.15%, 6/4/07 1,2 2,000,001 2,024,999
----------------
201,225,448
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SPECIALTY RETAIL--3.0%
Bear Creek Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 9.08%, 6/15/10 1,2 3,500,000 3,552,500
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Getty Petroleum Marketing, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.84%, 5/19/10 2 7,500,000 7,626,563
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Harbor Freight Tools, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 6/24/10 1,2,4 3,000,000 3,036,564
Tranche B, 4.16%, 6/24/10 1,2 2,500,000 2,530,470
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Hollywood Entertainment Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.97%-6.639%, 1/20/08 2 5,000,000 5,029,165
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Oriental Trading Co., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.375%, 7/9/09 2 8,533,985 8,624,658
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Savers, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B,
7.377%, 7/15/09 1,2 7,000,000 7,043,750
----------------
37,443,670
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TEXTILES, APPAREL & LUXURY GOODS--0.4%
Levi Strauss & Co., Sr. Sec. Credit Facilities Term Loan, Tranche A,
8.875%, 9/29/09 1,2 1,990,000 2,139,250
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Maidenform, Inc., Sr. Sec. Credit Facilities Term Loan, 4.639%, 5/21/10 1,2 3,000,000 3,056,250
----------------
5,195,500
17 | OPPENHEIMER SENIOR FLOATING RATE FUND
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STATEMENT OF INVESTMENTS Continued
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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CONSUMER STAPLES--10.8%
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BEVERAGES--0.3%
Le*Nature's, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
5.375%-5.875%, 5/20/10 1,2 $ 3,984,999 $ 4,039,794
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FOOD & STAPLES RETAILING--1.0%
Jean Coutu Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.75%, 6/30/11 1,2 6,000,000 6,069,114
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The Pantry, Inc., Sr. Sec. Credit Facilities Term Loan, 4.23%, 2/18/11 2 5,930,435 6,019,391
----------------
12,088,505
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FOOD PRODUCTS--5.2%
American Seafoods Group LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.73%, 3/31/09 1,2 5,052,714 5,074,819
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Atkins Nutritionals, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
7.34%, 12/1/09 1,2 8,000,000 7,820,000
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Atkins Nutritionals, Inc., Sr. Sec. Credit Facilities Term Loan, 4.84%, 11/26/09 2 3,842,812 3,775,563
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B&G Foods, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
6.393%, 8/26/09 1,2 1,488,750 1,499,916
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EAS, Inc., Sr. Sec. Credit Facilities Term Loan, 5.758%, 5/13/09 2 6,000,000 5,985,000
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Interstate Bakeries Corp., Sr. Sec. Credit Facilities Revolving Credit Loan,
0.50%-4.625%, 7/19/06 1,2 4,391,171 4,230,159
- ------------------------------------------------------------------------------------------------------------------------------------
Interstate Bakeries Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 4.258%-4.56%, 7/19/06 1,2 4,091,645 4,002,991
Tranche B, 4.67%-4.836%, 7/19/07 1,2 1,785,143 1,748,324
- ------------------------------------------------------------------------------------------------------------------------------------
Land O'Lakes, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.73%, 10/11/08 1,2 2,628,204 2,674,744
- ------------------------------------------------------------------------------------------------------------------------------------
Leiner Health Products, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.59%-4.89%, 5/26/11 1,2 4,000,000 4,070,000
- ------------------------------------------------------------------------------------------------------------------------------------
Luigino's, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 4/2/11 1,2,4 1,995,000 2,027,419
Tranche B, 4.313%-4.50%, 4/2/11 1,2 4,488,750 4,561,692
- ------------------------------------------------------------------------------------------------------------------------------------
Meow Mix, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
5.84%-6.12%, 10/10/09 1,2 4,983,530 4,971,071
- ------------------------------------------------------------------------------------------------------------------------------------
Meow Mix, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
8.84%, 10/10/09 1,2 4,000,000 3,947,500
- ------------------------------------------------------------------------------------------------------------------------------------
Michael Foods, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche C,
5.214%, 11/21/11 1,2 2,300,000 2,367,563
- ------------------------------------------------------------------------------------------------------------------------------------
Nellson Nutraceutical, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
7.09%, 4/11/10 1,2 3,500,000 3,482,500
- ------------------------------------------------------------------------------------------------------------------------------------
Nellson Nutraceutical, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.59%, 10/4/09 1,2 3,820,025 3,820,025
----------------
66,059,286
18 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.9%
Amscan Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
4.13%-4.591%, 4/30/12 1,2 $ 2,000,000 $ 2,032,500
- ------------------------------------------------------------------------------------------------------------------------------------
Holmes Group, Inc. (The), Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 4.49%-4.719%, 5/10/10 1,2 6,500,000 6,565,000
- ------------------------------------------------------------------------------------------------------------------------------------
Playpower, Inc., Sr. Sec. Credit Facilities Term Loan, 6.11%, 2/1/10 1,2 8,297,009 8,338,494
- ------------------------------------------------------------------------------------------------------------------------------------
Savage Sports Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
5.36%, 3/10/10 2 7,481,250 7,499,953
----------------
24,435,947
- ------------------------------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS--2.4%
American Safety Razor Co., Sr. Sec. Credit Facilities 1st Lien Term Loan,
4.55%-4.84%, 4/29/11 1,2 4,488,750 4,542,054
- ------------------------------------------------------------------------------------------------------------------------------------
American Safety Razor Co., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
9.11%, 10/29/11 1,2 2,000,000 2,010,000
- ------------------------------------------------------------------------------------------------------------------------------------
Bombardier Recreational Products, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.18%, 12/18/10 2 4,975,000 5,051,183
- ------------------------------------------------------------------------------------------------------------------------------------
Nice-Pak Products, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.926%, 6/18/10 1,2 5,000,000 5,059,375
- ------------------------------------------------------------------------------------------------------------------------------------
Norwood Promotional Products, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 6.75%, 2/28/05 1,2 6,738,401 6,502,557
Tranche B, 3.80%, 2/28/05 1,2 4,258,540 1,394,672
Tranche C, 2/28/05 1,2,4 182,832 4,571
- ------------------------------------------------------------------------------------------------------------------------------------
Pure Fishing, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.57%-4.85%, 3/23/10 1,2 3,990,000 4,054,837
- ------------------------------------------------------------------------------------------------------------------------------------
Revlon Consumer Products Corp., Sr. Sec. Credit Facilities Term Loan,
7.60%-7.86%, 7/31/10 1,2 2,000,000 2,040,312
----------------
30,659,561
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY--7.2%
- ------------------------------------------------------------------------------------------------------------------------------------
OIL & GAS--7.2%
Alon USA, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 10/3/10 2,4 3,000,000 3,030,000
Tranche B, 10%, 10/3/10 2 6,000,000 6,060,000
- ------------------------------------------------------------------------------------------------------------------------------------
Aquila, Inc., Sr. Sec. Credit Facilities Term Loan, 5/15/06 1,2,4 3,000,000 3,098,751
- ------------------------------------------------------------------------------------------------------------------------------------
Aquila, Inc., Sr. Sec. Credit Facilities Term Loan, 8%, 5/15/06 1,2 2,047,619 2,115,021
- ------------------------------------------------------------------------------------------------------------------------------------
ATP Oil & Gas Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 10.50%, 3/15/09 2 7,892,917 8,090,240
Tranche B, 10.50%, 3/15/09 1,2 1,583,333 1,622,917
- ------------------------------------------------------------------------------------------------------------------------------------
Basic Energy Services, Inc., Sr. Sec. Credit Facilities Term Loan,
4.78%-5.09%, 10/29/09 2 9,964,286 10,088,841
- ------------------------------------------------------------------------------------------------------------------------------------
Coffeyville Resources, Sr. Sec. Credit Facilities Term Loan, 6.45%-8.25%,
4/16/10 2 11,970,000 11,970,000
- ------------------------------------------------------------------------------------------------------------------------------------
Coleto Creek WLE LP, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 5.41%, 7/1/11 1,2 6,000,000 6,096,252
19 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
OIL & GAS Continued
Coleto Creek WLE LP, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche C, 6.639%, 7/1/12 1,2 $ 5,000,000 $ 5,076,040
- ------------------------------------------------------------------------------------------------------------------------------------
Dynegy, Inc., Sr. Sec. Credit Facilities Term Loan, 5.36%, 5/10/10 1,2 5,000,000 5,098,440
- ------------------------------------------------------------------------------------------------------------------------------------
Ferrell Cos., Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 5.601%, 6/17/06 1,2 6,777,735 6,794,679
Tranche C, 5.601%, 6/17/06 1,2 1,377,083 1,380,526
- ------------------------------------------------------------------------------------------------------------------------------------
Quest Cherokee LLC, Sr. Sec. Credit Facilities Term Loan, 7.131%, 7/8/10 1,2 10,000,000 10,075,000
- ------------------------------------------------------------------------------------------------------------------------------------
Tesoro Petroleum Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.88%-6.91%, 4/15/08 2 3,950,000 4,075,907
- ------------------------------------------------------------------------------------------------------------------------------------
Transwestern Pipeline Co., Sr. Sec. Credit Facilities Term Loan, 3.43%, 5/3/09 1,2 5,000,000 5,044,790
- ------------------------------------------------------------------------------------------------------------------------------------
Western Refining Co., Sr. Sec. Credit Facilities Term Loan, 4.946%, 8/29/08 1,2 2,100,000 2,131,500
----------------
91,848,904
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS--3.0%
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS--0.9%
Refco Group Ltd., LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.23%, 7/30/11 1,2 12,000,000 12,015,000
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--0.4%
Metris Cos, Inc., Sr. Sec. Credit Facilities Term Loan, 10.86%, 5/6/07 1,2 5,000,000 5,175,000
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE--1.7%
Conseco, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 5.426%, 6/22/10 2 14,000,000 14,214,382
- ------------------------------------------------------------------------------------------------------------------------------------
Vertafore, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 4.73%, 3/9/08 2 6,825,000 6,884,719
----------------
21,099,101
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE--5.2%
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--0.3%
UTI Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.48%-4.68%, 6/3/10 1,2 4,000,000 4,060,000
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--4.7%
Beverly Enterprises, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.59%-4.43%, 10/22/08 1,2 992,499 1,007,388
- ------------------------------------------------------------------------------------------------------------------------------------
CompBenefits Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 5.30%-5.48%, 8/27/09 1,2 3,800,000 3,802,376
Tranche C, 8.75%, 2/27/10 1,2 997,500 998,123
- ------------------------------------------------------------------------------------------------------------------------------------
Concentra Operating Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 4.93%-4.97%, 6/30/09 1,2 3,012,978 3,056,289
Tranche C, 4.05%, 6/30/09 1,2 1,995,000 2,023,678
- ------------------------------------------------------------------------------------------------------------------------------------
ConnectiCare, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
5.196%-8.196%, 10/30/09 1,2 2,281,250 2,298,360
- ------------------------------------------------------------------------------------------------------------------------------------
FHC Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.31%, 11/15/09 1,2 5,380,367 5,434,170
20 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
FHC Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, Tranche B, 9.31%, 11/15/09 1,2 $ 2,080,196 $ 2,098,398
- ------------------------------------------------------------------------------------------------------------------------------------
Genesis Health Ventures, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.73%-3.84%, 12/1/10 1,2 864,526 876,414
- ------------------------------------------------------------------------------------------------------------------------------------
HealthSouth Corp., Sr. Sec. Sub. Credit Facilities Term Loan, 10.375%, 1/16/11 1 8,000,000 8,240,000
- ------------------------------------------------------------------------------------------------------------------------------------
InSight Health Services Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.086%, 9/19/08 2 7,364,522 7,410,551
- ------------------------------------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., Sr. Sec. Credit Facilities Letter of
Credit Term Loan, 4.861%, 8/15/08 1,2 2,000,000 2,030,000
- ------------------------------------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., Sr. Sec. Credit Facilities Term Loan,
5%, 8/15/08 1,2 925,000 938,875
- ------------------------------------------------------------------------------------------------------------------------------------
MedCath Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.581%, 6/30/10 1,2 4,000,000 4,058,752
- ------------------------------------------------------------------------------------------------------------------------------------
MultiPlan, Inc., Sr. Sec. Credit Facilities Term Loan, 4.34%, 3/4/09 1,2 2,992,500 3,022,425
- ------------------------------------------------------------------------------------------------------------------------------------
Sheridan Healthcare, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.929%-4.23%, 2/25/10 1,2 2,962,502 2,999,531
- ------------------------------------------------------------------------------------------------------------------------------------
Skilled Healthcare Group, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 4.20%, 6/28/10 1,2 3,000,000 3,032,814
- ------------------------------------------------------------------------------------------------------------------------------------
Skilled Healthcare Group, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 8.45%, 6/28/11 1,2 2,000,000 2,046,250
- ------------------------------------------------------------------------------------------------------------------------------------
Team Health, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.84%, 3/23/11 2 3,990,000 4,037,381
----------------
59,411,775
- ------------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS--0.2%
Alpharma, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.63%-5.12%, 10/5/08 1,2 2,025,985 2,045,398
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS--16.5%
- ------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--2.6%
CACI International, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.18%, 5/3/11 2 4,987,500 5,012,438
- ------------------------------------------------------------------------------------------------------------------------------------
Communications & Power Industries, Inc., Sr. Sec. Credit Facilities
Term Loan, 4.43%-4.48%, 7/23/10 1,2 2,992,500 3,046,740
- ------------------------------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 15%, 6/30/08 1 6,105,500 6,166,555
- ------------------------------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 6.86%, 3/31/06 1,2 1,500,000 1,515,000
Tranche B, 7.11%, 3/31/07 1,2 1,000,000 1,010,000
Tranche D, 7.61%, 12/31/07 1,2 1,206,076 1,218,890
- ------------------------------------------------------------------------------------------------------------------------------------
Gate Gourmet International, Sr. Sec. Credit Facilities Term Loan,
Tranche B1, 9.50%, 12/20/08 1,2 4,455,000 4,544,100
21 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE Continued
Gencorp, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
5.25%-5.375%, 3/28/07 1,2 $ 1,969,925 $ 1,983,878
- ------------------------------------------------------------------------------------------------------------------------------------
Titan Corp. (The), Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.62%-4.70%, 6/30/09 2 4,932,531 4,958,219
- ------------------------------------------------------------------------------------------------------------------------------------
United Airlines, Inc., Sr. Sec Credit Facilities Term Loan, Debtor in
Possession, 8.50%, 12/31/04 1,2 2,816,727 2,848,416
----------------
32,304,236
- ------------------------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS--3.3%
Comp Polymer, Sr. Sec. Credit Facilities 1st Lien Term Loan, 4.55%, 3/9/10 1,2 2,992,500 3,009,333
- ------------------------------------------------------------------------------------------------------------------------------------
Comp Polymer, Sr. Sec. Credit Facilities 2nd Lien Term Loan, 7.30%, 9/9/10 1,2 5,000,000 5,031,250
- ------------------------------------------------------------------------------------------------------------------------------------
Formica Corp. (Canada), Sr. Sec. Credit Facilities Term Loan,
6.55%-6.871%, 6/15/10 1,2 1,303,232 1,322,781
- ------------------------------------------------------------------------------------------------------------------------------------
Formica Corp. (Spain), Sr. Sec. Credit Facilities Term Loan,
6.55%-6.871%, 6/15/10 1,2 3,185,427 3,233,209
- ------------------------------------------------------------------------------------------------------------------------------------
Formica Corp. (UK), Sr. Sec. Credit Facilities Term Loan,
6.55%-6.871%, 6/15/10 1,2 1,629,041 1,653,477
- ------------------------------------------------------------------------------------------------------------------------------------
Formica Corp., Sr. Sec. Credit Facilities Term Loan, 6.55%-6.871%, 6/15/10 1,2 4,745,281 4,816,460
- ------------------------------------------------------------------------------------------------------------------------------------
Juno Lighting, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
4.34%-5.902%, 11/24/10 1,2 5,300,000 5,379,500
- ------------------------------------------------------------------------------------------------------------------------------------
Juno Lighting, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
6.78%, 5/24/11 1,2 3,000,000 3,037,500
- ------------------------------------------------------------------------------------------------------------------------------------
MAAX, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.036%-4.331%, 6/4/11 1,2 2,999,999 3,037,501
- ------------------------------------------------------------------------------------------------------------------------------------
Masonite International Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 4.063%, 8/31/08 2 5,221,518 5,277,811
- ------------------------------------------------------------------------------------------------------------------------------------
PGT Industries, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
4.67%, 1/14/10 1,2 2,485,006 2,522,281
- ------------------------------------------------------------------------------------------------------------------------------------
PGT Industries, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
7.92%, 6/14/10 1,2 4,000,000 4,010,000
----------------
42,331,103
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--5.0%
Allied Security, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.377%, 8/6/10 1,2 6,000,000 6,045,000
- ------------------------------------------------------------------------------------------------------------------------------------
Allied Waste Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.93%-4.27%, 1/15/10 1,2 2,824,249 2,865,801
- ------------------------------------------------------------------------------------------------------------------------------------
Global eXchange Services, Inc., Sr. Sec. Credit Facilities Term Loan,
8.50%, 3/21/07 1,2 1,000,000 1,012,500
- ------------------------------------------------------------------------------------------------------------------------------------
IESI Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.438%-4.625%, 9/30/10 1,2 3,970,000 4,040,718
- ------------------------------------------------------------------------------------------------------------------------------------
Ionics, Inc., Sr. Sec. Credit Facilities Term Loan, 4.35%, 1/6/11 1,2 4,317,429 4,387,587
22 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES Continued
National Equipment Services, Inc., Sr. Sec. Credit Facilities Floating Rate
Termed-Out Revolving Loan, 4.40%-7.33%, 5/15/07 1,2 $ 3,483,893 $ 3,449,055
- ------------------------------------------------------------------------------------------------------------------------------------
National Equipment Services, Inc., Sr. Sec. Credit Facilities
Revolving Credit Loan, 1%-7.21%, 5/15/07 1,2 3,041,725 2,950,473
- ------------------------------------------------------------------------------------------------------------------------------------
National Equipment Services, Inc., Sr. Sec. Credit Facilities Term Loan,
5.77%-7.50%, 5/15/07 1,2 1,911,389 1,892,276
- ------------------------------------------------------------------------------------------------------------------------------------
Outsourcing Solutions, Inc., Sr. Sec. Credit Facilities 3rd Lien Term Loan,
6.18%, 2/9/09 1,2 4,741,826 4,718,117
- ------------------------------------------------------------------------------------------------------------------------------------
Outsourcing Solutions, Inc., Sr. Sec. Credit Facilities Revolving Credit Loan,
Tranche B, 2.50%-5%, 2/9/09 1,2 91,116 89,293
- ------------------------------------------------------------------------------------------------------------------------------------
Outsourcing Solutions, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A2, 7.623%, 2/9/09 1,2 9,655 9,461
- ------------------------------------------------------------------------------------------------------------------------------------
Relizon Co. (The), Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.26%, 2/23/11 1,2 4,587,500 4,613,305
- ------------------------------------------------------------------------------------------------------------------------------------
TransFirst Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche A, 4.68%, 6/11/10 1,2 7,000,000 7,061,250
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Investigation Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 5.04%, 1/10/09 2 11,319,263 11,333,412
- ------------------------------------------------------------------------------------------------------------------------------------
Washington Group International, Inc., Sr. Sec. Revolving Credit Linked
Certificate of Deposit, Tranche B, 4.98%, 9/10/07 1,2 9,250,000 9,319,375
----------------
63,787,623
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.2%
Magnequench, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.87%, 9/30/09 1,2 15,000,000 15,075,000
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--3.1%
EnerSys, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, Tranche C,
6.361%, 3/17/12 1,2 2,000,000 2,032,084
- ------------------------------------------------------------------------------------------------------------------------------------
Hillman Group, Inc. (The), Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.625%-6.393%, 3/31/11 1,2 3,990,000 4,034,888
- ------------------------------------------------------------------------------------------------------------------------------------
Joan Fabrics Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 5.625%, 8/28/05 1,2 431,939 414,661
Tranche C, 5.875%, 8/28/06 1,2 440,944 423,306
- ------------------------------------------------------------------------------------------------------------------------------------
Metokote Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
4.42%-4.73%, 8/12/10 1,2 4,974,999 5,049,625
- ------------------------------------------------------------------------------------------------------------------------------------
Metokote Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
6.92%-7.23%, 2/12/11 1,2 2,500,000 2,531,250
- ------------------------------------------------------------------------------------------------------------------------------------
Polypore, Inc., Sr. Sec. Credit Facilities Term Loan, 3.97%, 11/12/11 2 7,000,000 7,126,875
- ------------------------------------------------------------------------------------------------------------------------------------
Roller Bearing Co. of America, Inc., Sr. Sec. Credit Facilities
Term Loan, 6.75%, 12/22/10 1,2 10,000,000 10,075,000
- ------------------------------------------------------------------------------------------------------------------------------------
Sensus Metering System, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B1, 4.17%-4.891%, 12/17/10 1,2 6,921,739 7,006,821
Tranche B2, 4.17%-4.891%, 12/17/10 1,2 1,038,261 1,051,023
----------------
39,745,533
23 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
MACHINERY--0.3%
Gleason Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, 4.20%, 7/23/11 1,2 $ 4,000,000 $ 4,050,000
- ------------------------------------------------------------------------------------------------------------------------------------
MARINE--0.2%
American Commercial Lines LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche C, 5.938%, 6/30/07 1,2 3,000,000 2,916,000
- ------------------------------------------------------------------------------------------------------------------------------------
ROAD & RAIL--0.4%
Amerco, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche A, 5.34%, 2/27/09 1,2 4,706,212 4,820,926
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE--0.4%
Environmental Systems Products, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 5.80%-6.18%, 11/6/08 1,2 2,584,885 2,602,656
- ------------------------------------------------------------------------------------------------------------------------------------
Environmental Systems Products, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 11.30%-11.68%, 11/6/10 1,2 2,000,000 2,065,000
----------------
4,667,656
- ------------------------------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--1.8%
- ------------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.4%
VeriFone, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 4.18%, 6/30/11 1,2 3,000,000 3,043,125
- ------------------------------------------------------------------------------------------------------------------------------------
VeriFone, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 7.68%, 12/31/11 1,2 2,000,000 2,048,750
----------------
5,091,875
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.4%
ON Semiconductor Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche F, 4.375%, 8/4/09 1,2 3,000,000 3,030,624
- ------------------------------------------------------------------------------------------------------------------------------------
Transcore, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 4.828%-6%, 1/5/08 1,2 1,366,709 1,383,793
Tranche C, 4.828%-6%, 1/5/08 1,2 2,977,500 3,014,719
- ------------------------------------------------------------------------------------------------------------------------------------
Viasystems Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.15%, 9/30/08 1,2 9,565,239 9,666,870
----------------
17,096,006
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS--11.5%
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--5.7%
Brenntag AG, Sr. Sec. Credit Facilities Term Loan, Tranche B, 3.881%, 2/27/12 1,2 5,000,000 5,082,815
- ------------------------------------------------------------------------------------------------------------------------------------
Celanese AG, Sr. Sec. Credit Facilities Term Loan, Tranche C, 5.73%, 4/6/11 1,2 8,000,000 8,270,000
- ------------------------------------------------------------------------------------------------------------------------------------
Cognis Deutschland GmbH & Co. KG, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, Tranche C, 6.311%, 4/21/13 1,2 3,000,000 2,992,500
- ------------------------------------------------------------------------------------------------------------------------------------
Huntsman Corp. LLC, Sr. Sec. Credit Facilities Term Loan:
Tranche A, 5.438%, 3/31/07 1,2 6,774,739 6,811,634
Tranche B, 11.188%, 3/31/07 1,2 1,074,321 1,080,172
- ------------------------------------------------------------------------------------------------------------------------------------
Huntsman ICI Chemicals LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.688%, 9/30/08 1,2 12,000,000 12,196,500
- ------------------------------------------------------------------------------------------------------------------------------------
Invista, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B1, 4.563%, 4/27/11 1,2 6,941,177 7,049,633
Tranche B2, 4.563%, 4/27/11 1,2 3,058,823 3,106,617
24 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS Continued
Polymer Group, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 4.84%, 4/27/10 1,2 $ 3,000,000 $ 3,024,375
- ------------------------------------------------------------------------------------------------------------------------------------
Polymer Group, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche C, 7.84%, 4/27/11 1,2 2,000,000 2,007,500
- ------------------------------------------------------------------------------------------------------------------------------------
Ripplewood Phosphorus Chemicals, Sr. Sec. Credit Facilities Term Loan,
4.53%, 6/21/11 1,2 3,000,000 3,037,500
- ------------------------------------------------------------------------------------------------------------------------------------
Rockwood Specialties Group, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 3.98%, 6/15/12 1,2 7,500,000 7,567,635
Tranche C, 4.183%, 7/23/10 1,2 1,485,000 1,485,000
- ------------------------------------------------------------------------------------------------------------------------------------
Rockwood Specialties Group, Inc., Sr. Sec. Sub. Credit Facilities
Bridge Loan, 9.48%, 5/11/11 1,2 3,000,000 3,007,500
- ------------------------------------------------------------------------------------------------------------------------------------
Wellman, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 6%, 1/31/09 1,2 1,000,000 1,017,917
- ------------------------------------------------------------------------------------------------------------------------------------
Wellman, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 8.75%, 1/31/10 1,2 3,000,000 2,947,500
- ------------------------------------------------------------------------------------------------------------------------------------
Westlake Chemical Corp., Sr. Sec. Credit Facilities Term Loan,
4.951%-6.885%, 7/31/10 1,2 990,001 1,004,851
----------------
71,689,649
- ------------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--1.2%
Builders FirstSource, Sr. Sec. Credit Facilities 1st Lien Term Loan,
4.53%-4.59%, 3/4/10 1,2 5,486,250 5,534,254
- ------------------------------------------------------------------------------------------------------------------------------------
Builders FirstSource, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
10.50%, 9/4/10 1,2 7,000,000 7,008,750
- ------------------------------------------------------------------------------------------------------------------------------------
Building Materials Holding Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.375%, 8/13/10 1,2 2,475,000 2,484,281
----------------
15,027,285
- ------------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING--3.0%
BWAY Corp., Sr. Sec. Credit Facilities Term Loan, 3.688%, 7/6/11 1,2 2,000,000 2,034,376
- ------------------------------------------------------------------------------------------------------------------------------------
Consolidated Container Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.688%-5.125%, 12/31/08 1,2 3,000,000 3,037,501
- ------------------------------------------------------------------------------------------------------------------------------------
Crown Cork & Seal Co., Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.586%, 8/26/08 2 4,750,000 4,826,447
- ------------------------------------------------------------------------------------------------------------------------------------
Graphic Packaging International Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.35%, 8/8/10 1,2 2,970,000 3,020,428
- ------------------------------------------------------------------------------------------------------------------------------------
Intertape Polymer Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.656%, 7/28/11 1,2 2,000,000 2,017,500
- ------------------------------------------------------------------------------------------------------------------------------------
Kerr Group, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
5.09%-6.393%, 8/13/10 2 5,755,814 5,814,091
- ------------------------------------------------------------------------------------------------------------------------------------
Owens-Illinois, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.48%, 5/21/08 2 9,500,000 9,646,462
- ------------------------------------------------------------------------------------------------------------------------------------
Precise Technology Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
4.625%, 3/22/11 2 7,481,250 7,537,359
25 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING Continued
Tekni-Plex, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
5.578%-5.68%, 6/21/08 1,2 $ 348,295 $ 350,835
----------------
38,284,999
- ------------------------------------------------------------------------------------------------------------------------------------
METALS & MINING--1.1%
Foundation Coal Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.68%, 6/23/11 1,2 3,000,000 3,034,500
- ------------------------------------------------------------------------------------------------------------------------------------
Ispat Sidbec, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.25%, 1/31/06 1,2 2,649,212 2,637,070
Tranche C, 7.25%, 1/31/06 1,2 3,091,309 3,077,142
- ------------------------------------------------------------------------------------------------------------------------------------
James River Group, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
9%, 5/31/11 1 5,735,282 5,778,297
----------------
14,527,009
- ------------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.5%
SP Newsprint Co., Sr. Sec. Credit Facilities Letter of Credit Term Loan,
Tranche B2, 4.363%, 1/9/11 2 3,866,667 3,924,667
- ------------------------------------------------------------------------------------------------------------------------------------
SP Newsprint Co., Sr. Sec. Credit Facilities Term Loan, Tranche B1,
4.42%, 1/9/11 2 2,103,333 2,136,198
----------------
6,060,865
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--8.8%
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--3.5%
360 Americas, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche D, 9/30/05 1,3,5 4,477,271 257,443
- ------------------------------------------------------------------------------------------------------------------------------------
360networks (USA), Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 6.39%, 11/30/07 1,2 10,000,000 9,800,000
- ------------------------------------------------------------------------------------------------------------------------------------
IPC Acquisition Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
4.98%, 8/29/08 1,2 1,985,000 2,011,053
- ------------------------------------------------------------------------------------------------------------------------------------
McLeodUSA, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
5.23%-5.40%, 5/30/08 1,2 4,607,994 2,280,957
- ------------------------------------------------------------------------------------------------------------------------------------
NTL Investment Holdings Ltd., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.704%, 4/13/12 2 10,000,000 9,933,330
- ------------------------------------------------------------------------------------------------------------------------------------
Qwest Corp., Sr. Sec. Credit Facilities Term Loan, Tranche A, 6.50%, 6/30/07 2 13,500,000 14,027,351
- ------------------------------------------------------------------------------------------------------------------------------------
XO Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
7.667%, 7/15/09 1,2 6,132,015 6,135,847
----------------
44,445,981
- ------------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--5.3%
AAT Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.14%, 1/13/12 1,2 8,500,000 8,606,250
- ------------------------------------------------------------------------------------------------------------------------------------
Centennial Communications Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.866%-4.338%, 1/20/11 2 10,972,500 11,040,102
- ------------------------------------------------------------------------------------------------------------------------------------
Crown Castle International Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.09%, 9/30/10 2 5,725,071 5,749,322
26 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES Continued
Dobson Communications Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.91%-4.92%, 3/31/10 2 $ 8,468,675 $ 8,496,460
- ------------------------------------------------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche A, 5.586%, 1/26/11 1,2 1,975,000 1,985,699
- ------------------------------------------------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, Tranche B, 9%, 6/26/11 1,2 15,960,000 16,359,000
- ------------------------------------------------------------------------------------------------------------------------------------
Nextel Partners, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche C,
4%, 5/31/11 2 5,000,000 5,086,875
- ------------------------------------------------------------------------------------------------------------------------------------
SBA Communications Corp., Sr. Sec. Credit Facilities Term Loan, 1%,
10/30/08 1,2 269,231 271,629
- ------------------------------------------------------------------------------------------------------------------------------------
SBA Communications Corp., Sr. Sec. Credit Facilities Term Loan,
1%-5.37%, 10/30/08 2 9,230,770 9,312,978
----------------
66,908,315
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES--12.2%
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--10.3%
Allegheny Energy Supply Co. LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 4.18%-4.58%, 3/8/11 1,2 4,987,499 5,069,793
- ------------------------------------------------------------------------------------------------------------------------------------
Allegheny Energy Supply Co. LLC, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, Tranche C, 5.43%-5.83%, 6/8/11 1,2 5,985,000 6,102,833
- ------------------------------------------------------------------------------------------------------------------------------------
Astoria Energy LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
6.836%-6.86%, 3/26/12 2 10,000,000 10,135,420
- ------------------------------------------------------------------------------------------------------------------------------------
Calpine Construction Finance Co. LP, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.50%, 8/26/09 1,2 5,985,000 6,388,988
- ------------------------------------------------------------------------------------------------------------------------------------
Calpine Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B,
5.125%, 7/15/07 1,2 1,470,038 1,476,469
- ------------------------------------------------------------------------------------------------------------------------------------
CenterPoint Energy, Inc., Sr. Sec. Credit Facilities Term Loan,
4.723%, 10/7/06 2 6,447,297 6,534,607
- ------------------------------------------------------------------------------------------------------------------------------------
Edison International, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7%, 11/19/06 2 8,000,000 8,040,000
- ------------------------------------------------------------------------------------------------------------------------------------
KGen Partners LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
5.563%, 5/25/11 1,2 8,000,000 8,100,000
- ------------------------------------------------------------------------------------------------------------------------------------
Midwest Generation LLC, Sr. Sec. Credit Facilities Term Loan,
4.57%-4.85%, 4/5/11 1,2 6,982,500 7,082,874
- ------------------------------------------------------------------------------------------------------------------------------------
Mirant Americas Generation LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 1.139%, 10/20/04 1,3,5 2,000,000 1,578,334
- ------------------------------------------------------------------------------------------------------------------------------------
NRG Energy, Inc., Sr. Sec. Credit Facilities Term Loan, 5.559%, 6/23/10 1,2 6,943,971 7,202,203
- ------------------------------------------------------------------------------------------------------------------------------------
NRG Energy, Inc., Sr. Sec. Credit Linked Certificate of Deposit,
5.50%, 6/23/10 1,2 3,918,565 4,064,288
- ------------------------------------------------------------------------------------------------------------------------------------
Orion Power MidWest LP, Sr. Sec. Credit Facilities Term Loan,
4.61%-4.73%, 10/28/05 1,2 3,541,163 3,543,376
- ------------------------------------------------------------------------------------------------------------------------------------
Orion Power New York GP, Inc., Sr. Sec. Credit Facilities Term Loan,
4.62%-4.84%, 10/28/05 1,2 1,427,870 1,431,439
27 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES Continued
Quachita Power LLC, Sr. Sec. Credit Facilities Term Loan, 3.98%, 8/30/07 1,2 $ 5,000,000 $ 4,650,000
- ------------------------------------------------------------------------------------------------------------------------------------
Quanta Services, Inc., Sr. Sec. Credit Facilities Term Loan, 4.54%-4.55%, 1/1/05 2 10,000,000 10,037,500
- ------------------------------------------------------------------------------------------------------------------------------------
Reliant Resources, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 3/15/07 1,2,4 5,000,000 5,002,605
Tranche A, 5.35%-5.88%, 3/15/07 1,2 3,912,298 3,914,337
- ------------------------------------------------------------------------------------------------------------------------------------
Reliant Resources, Inc., Sr. Sec. Credit Facilities Term Loan,
5.35%-5.88%, 3/15/07 1,2 5,192,690 5,191,760
- ------------------------------------------------------------------------------------------------------------------------------------
Riverside Energy Center LLC/Rocky Mountain Energy Center LLC, Sr. Sec.
Credit Facilities Term Loan, 6.02%, 6/22/11 1,2 25,000,000 25,250,000
----------------
130,796,826
- ------------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--1.0%
La Grange Acquisition LP, Sr. Sec. Credit Facilities Term Loan,
4.41%-4.48%, 1/31/08 1,2 5,000,000 5,079,690
- ------------------------------------------------------------------------------------------------------------------------------------
Nui Corp., Sr. Sec. Credit Facilities Term Loan, 7%-8%, 11/22/04 1,2 7,500,000 7,514,063
----------------
12,593,753
- ------------------------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--0.9%
Calpine Generating Co. LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 5.23%, 4/1/09 2 9,000,000 9,034,875
- ------------------------------------------------------------------------------------------------------------------------------------
Calpine Generating Co. LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche B, 7.23%, 4/1/10 1,2 2,500,000 2,377,070
----------------
11,411,945
----------------
Total Corporate Loans (Cost $1,396,932,021) 1,407,496,401
- ------------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--1.0%
Advanstar Communications, Inc., 10.75% Sr. Sec. Nts., 8/15/10 2,000,000 2,220,000
- ------------------------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 5% Sr. Nts., 7/1/07 3,000,000 3,030,000
- ------------------------------------------------------------------------------------------------------------------------------------
Unova, Inc.:
6.875% Unsec. Nts., 3/15/05 1 2,500,000 2,546,875
7% Unsec. Nts., 3/15/08 1 5,000,000 5,025,000
----------------
Total Corporate Bonds and Notes (Cost $12,611,985) 12,821,875
SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--0.0%
Superior TeleCom, Inc., 9.50% Cv., Series A, Non-Vtg. 1,5 (Cost $60,318) 60,318 42,825
28 | OPPENHEIMER SENIOR FLOATING RATE FUND
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--0.4%
360networks, Inc. 1,5 112,326 $ 598,698
- ------------------------------------------------------------------------------------------------------------------------------------
MCI, Inc. 5 214,750 3,281,380
- ------------------------------------------------------------------------------------------------------------------------------------
Outsourcing Solutions, Inc. 1,5 39,009 1,365,315
----------------
Total Common Stocks (Cost $4,362,684) 5,245,393
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,413,967,008) 112.4% 1,425,606,494
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (12.4) (156,818,329)
----------------------------
NET ASSETS 100.0% $1,268,788,165
============================
<FN>
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Illiquid security. See Notes 1 and 5 of Notes to Financial Statements.
2. Represents the current interest rate for a variable or increasing rate
security.
3. Issue is in default. See Note 1 of Notes to Financial Statements.
4. This Senior Loan will settle after August 31, 2004, at which time the
interest rate will be determined.
5. Non-income producing security.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES July 31, 2004
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,413,967,008)--see accompanying statement of investments $ 1,425,606,494
- ------------------------------------------------------------------------------------------------------------------------------------
Cash 12,514,355
- ------------------------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 32,659,522
Shares of beneficial interest sold 13,540,209
Interest, dividends and principal paydowns 7,291,061
Other 3,277
--------------------
Total assets 1,491,614,918
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Investments purchased 188,979,029
Shares of beneficial interest redeemed 19,823,380
Notes payable to bank (interest rate 2.1200% at July 31, 2004) 12,800,000
Dividends 328,027
Distribution and service plan fees 253,460
Shareholder communications 113,251
Transfer and shareholder servicing agent fees 77,354
Other 452,252
--------------------
Total liabilities 222,826,753
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,268,788,165
====================
- ------------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of beneficial interest $ 132,663
- ------------------------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,297,396,531
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss (41,687)
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (40,338,828)
- ------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 11,639,486
--------------------
NET ASSETS $ 1,268,788,165
====================
30 | 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
$376,000,810 and 39,337,865 shares of beneficial interest outstanding) $9.56
Maximum offering price per share (net asset value plus sales charge of 3.50% of
offering price) $9.91
- ------------------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $277,043,180
and 28,975,065 shares of beneficial interest outstanding) $9.56
- ------------------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $615,744,175
and 64,350,120 shares of beneficial interest outstanding) $9.57
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended July 31, 2004
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $44,158,236
- ------------------------------------------------------------------------------------------------------------------------------------
Other income 1,405,230
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends 1,361
---------------
Total investment income 45,564,827
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,877,584
- ------------------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 358,035
Class B 1,507,603
Class C 2,590,912
- ------------------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 106,417
Class B 238,370
Class C 291,330
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 22,996
Class B 52,172
Class C 60,035
- ------------------------------------------------------------------------------------------------------------------------------------
Interest expense 361,391
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 139,702
- ------------------------------------------------------------------------------------------------------------------------------------
Trustees' compensation 15,643
- ------------------------------------------------------------------------------------------------------------------------------------
Other 555,943
---------------
Total expenses 11,178,133
Less payments and waivers of expenses (1,385,791)
---------------
Net expenses 9,792,342
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 35,772,485
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain on investments 6,317,694
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 11,715,595
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $53,805,774
===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2004 2003
- ------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 35,772,485 $ 23,594,266
- ------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 6,317,694 (16,344,678)
- ------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 11,715,595 20,205,808
------------------------------------
Net increase in net assets resulting from operations 53,805,774 27,455,396
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (7,286,019) (1,876,986)
Class B (8,982,134) (7,813,161)
Class C (15,514,260) (10,146,654)
- ------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 327,604,102 9,320,515
Class B 113,330,151 (22,819,466)
Class C 397,312,953 (32,377,906)
- ------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) 860,270,567 (38,258,262)
- ------------------------------------------------------------------------------------------------------------
Beginning of period 408,517,598 446,775,860
------------------------------------
End of period (including accumulated net investment loss
of $41,687 and $41,873, respectively) $1,268,788,165 $ 408,517,598
=====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS For the Year Ended July 31, 2004
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets from operations $ 53,805,774
- ---------------------------------------------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from operations
to net cash used in operating activities:
Purchase of investment securities (2,039,583,684)
Proceeds from disposition of investment securities and paydowns 1,106,499,430
Increase in interest, dividends and paydowns receivable (5,579,181)
Increase in receivable for securities sold (18,709,626)
Increase in other assets (700)
Increase in payable for securities purchased 122,076,476
Increase in accrued expenses 377,616
Premium amortization 402,708
Discount accretion (2,624,641)
Net realized gain on securities (6,317,694)
Net change in unrealized appreciation on securities (11,715,595)
-----------------
Net cash used in operating activities (801,369,117)
- ---------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of debt 512,500,000
Payment on outstanding debt (499,700,000)
Proceeds from shares sold 899,744,578
Payment on shares redeemed (89,516,430)
Cash distributions paid (10,273,038)
-----------------
Net cash provided by financing activities 812,755,110
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in cash 11,385,993
- ---------------------------------------------------------------------------------------------------------------------------
Cash, beginning balance 1,128,362
-----------------
Cash, ending balance $ 12,514,355
=================
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $21,223,224.
Cash paid for interest on bank borrowings--$213,483.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED JULY 31, 2004 2003 2002 2001 2000 1
- --------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 9.24 $ 9.03 $ 9.51 $ 9.96 $10.00
- --------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .49 .55 .54 .80 .71
Net realized and unrealized gain (loss) .30 .14 (.50) (.46) (.04)
-------------------------------------------------
Total from investment operations .79 .69 .04 .34 .67
- --------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.47) (.48) (.52) (.79) (.71)
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $9.56 $9.24 $9.03 $9.51 $9.96
=================================================
- --------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 8.78% 7.91% 0.44% 3.52% 6.94%
- --------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $376,001 $44,028 $33,905 $44,985 $22,421
- --------------------------------------------------------------------------------------------------
Average net assets (in thousands) $146,224 $35,298 $41,195 $41,457 $ 6,600
- --------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.56% 6.23% 5.84% 8.11% 8.30%
Total expenses 1.19% 1.39% 1.42% 1.20% 1.26%
Expenses after payments and waivers and
reduction to custodian expenses 0.99% 1.19% 1.22% 1.00% 0.87%
- --------------------------------------------------------------------------------------------------
Portfolio turnover rate 155% 9% 92% 47% 62%
<FN>
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, 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.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED JULY 31, 2004 2003 2002 2001 2000 1
- ---------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 9.24 $ 9.04 $ 9.51 $ 9.97 $10.00
- ---------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .46 .52 .49 .76 .67
Net realized and unrealized gain (loss) .28 .11 (.49) (.47) (.03)
--------------------------------------------------
Total from investment operations .74 .63 -- .29 .64
- ---------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.42) (.43) (.47) (.75) (.67)
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $9.56 $9.24 $9.04 $9.51 $9.97
=================================================
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 8.18% 7.21% 0.05% 2.96% 6.56%
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $277,043 $157,057 $176,760 $220,328 $98,343
- ---------------------------------------------------------------------------------------------------
Average net assets (in thousands) $201,260 $163,238 $206,869 $177,025 $49,122
- ---------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.04% 5.70% 5.33% 7.56% 7.80%
Total expenses 1.76% 1.93% 1.92% 1.64% 1.76%
Expenses after payments and waivers and
reduction to custodian expenses 1.56% 1.73% 1.72% 1.44% 1.37%
- ---------------------------------------------------------------------------------------------------
Portfolio turnover rate 155% 9% 92% 47% 62%
<FN>
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, 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.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER SENIOR FLOATING RATE FUND
CLASS C YEAR ENDED JULY 31, 2004 2003 2002 2001 2000 1
- ----------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 9.25 $ 9.04 $ 9.51 $ 9.97 $10.00
- ----------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .45 .52 .50 .76 .67
Net realized and unrealized gain (loss) .29 .12 (.50) (.47) (.04)
----------------------------------------------------
Total from investment operations .74 .64 -- .29 .63
- ----------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.42) (.43) (.47) (.75) (.66)
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $9.57 $9.25 $9.04 $9.51 $ 9.97
====================================================
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 8.21% 7.35% 0.05% 2.96% 6.51%
- ----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $615,744 $207,433 $236,111 $350,126 $194,933
- ----------------------------------------------------------------------------------------------------
Average net assets (in thousands) $346,347 $210,987 $303,123 $323,725 $ 82,761
- ----------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.05% 5.73% 5.37% 7.60% 7.79%
Total expenses 1.71% 1.91% 1.92% 1.65% 1.77%
Expenses after payments and waivers and
reduction to custodian expenses 1.51% 1.71% 1.72% 1.45% 1.38%
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate 155% 9% 92% 47% 62%
<FN>
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, 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.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | 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 sold
at their offering price, which is normally net asset value plus a front-end
sales charge. 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 with respect to the Fund in general
and exclusive voting rights on matters that affect that class alone. Earnings,
net assets and net asset value per share may differ due to each class having
its own expenses, such as transfer and shareholder servicing agent fees and
shareholder communications, directly attributable to that class. Class 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 beginning of the
month in which you purchase them.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. 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. Corporate, government and municipal debt instruments having a remaining
maturity in excess of 60 days and all mortgage-backed securities will be valued
at the mean between the "bid" and "asked" prices. Securities may be valued
primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities (including restricted
securities) for which market quotations are not readily available are valued at
their fair value. Foreign and domestic securities whose values have been
materially affected by what the Manager identifies as a significant event
occurring before the Fund's assets are valued but after the close of their
respective exchanges will be fair valued. 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).
38 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
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 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 value them accurately or 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, 2004, securities with an aggregate market value of
$1,407,496,401, representing 111.0% of the Fund's net assets were comprised of
Senior Loans, of which $1,013,424,234 representing 79.87% of net assets, were
illiquid.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. Senior Loans are subject to credit risk. Credit risk
relates to the ability of the borrower under a Senior Loan to make interest and
principal payments as they become due. The Fund's investments in Senior Loans
are subject to risk of default. As of July 31, 2004, securities with an
aggregate market value of $1,835,777, representing 0.14% of the Fund's net
assets, were in default.
39 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint
trading accounts on a daily basis. These balances are invested in one or more
repurchase agreements. Securities pledged as collateral for repurchase
agreements are held by a custodian bank until the agreements mature. Each
agreement requires that the market value of the collateral be sufficient to
cover payments of interest and principal. In the event of default by the other
party to the agreement, retention of the collateral may be subject to legal
proceedings.
- --------------------------------------------------------------------------------
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 securities and other investments
for federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3,4 TAX PURPOSES
- --------------------------------------------------------------------------------
$286,337 $-- $40,319,218 $11,619,877
1. As of July 31, 2004, the Fund had $39,834,742 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, 2004, details
of the capital loss carryforwards were as follows:
EXPIRING
----------------------
2010 $ 13,831,444
2011 26,003,298
-------------
Total $ 39,834,742
=============
2. As of July 31, 2004, the Fund had $484,476 of post-October losses available
to offset future realized capital gains, if any. Such losses, if unutilized,
will expire in 2013.
3. During the fiscal year ended July 31, 2004, the Fund utilized $1,064,614 of
capital loss carryforward to offset capital gains realized in that fiscal year.
4. During the fiscal year ended July 31, 2003, the Fund did not utilize any
capital loss carryforward.
40 | OPPENHEIMER SENIOR FLOATING RATE FUND
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, 2004. Net assets of
the Fund were unaffected by the reclassifications.
REDUCTION TO
REDUCTION TO ACCUMULATED NET
ACCUMULATED NET REALIZED LOSS ON
INVESTMENT INCOME INVESTMENTS
------------------------------------
$3,989,886 $3,989,886
The tax character of distributions paid during the years ended July 31, 2004
and July 31, 2003 was as follows:
YEAR ENDED YEAR ENDED
JULY 31, 2004 JULY 31, 2003
------------------------------------------------------
Distributions paid from:
Ordinary income $31,782,413 $19,836,801
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments
for federal income tax purposes as of July 31, 2004 are noted below. The
primary difference between book and tax appreciation or depreciation of
securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
Federal tax cost of securities $1,413,986,617
==============
Gross unrealized appreciation $ 16,936,704
Gross unrealized depreciation (5,316,827)
--------------
Net unrealized appreciation $ 11,619,877
==============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Board of Trustees has adopted a deferred
compensation plan for independent trustees that enables trustees to elect to
defer receipt of all or a portion of the annual compensation they are entitled
to receive from the Fund. For purposes of determining the amount owed to the
Trustee under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or in other Oppenheimer funds
selected by the Trustee. The Fund purchases shares of the funds selected for
deferral by the Trustee in amounts equal to his or her deemed investment,
resulting in a Fund asset equal to the deferred compensation liability. Such
assets are included as a component of "Other" within the asset section of the
Statement of Assets and Liabilities. Deferral of trustees' fees under the plan
will not affect the net assets of the Fund, and will not materially affect the
Fund's assets, liabilities or net investment income per share. Amounts will be
deferred until distributed in accordance to the Plan.
41 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned. 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. Other income is comprised primarily of
amendment fees which are recorded when received. Amendment fees are earned as
compensation for agreeing to changes in loan agreements.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENT. The reduction of custodian fees, if applicable,
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 U.S.
generally accepted accounting principles 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.
- --------------------------------------------------------------------------------
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
42 | OPPENHEIMER SENIOR FLOATING RATE FUND
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, 2004, the Fund extended four Repurchase Offers:
PERCENTAGE OF
OUTSTANDING NUMBER OF
REPURCHASE SHARES THE SHARES THE NUMBER OF
REQUEST FUND OFFERED FUND OFFERED SHARES TENDERED
DEADLINES TO REPURCHASE TO REPURCHASE (ALL CLASSES)
- --------------------------------------------------------------------------------
October 31, 2003 20% 10,677,075 1,922,057
January 31, 2004 20 12,900,575 2,183,639
April 30, 2004 20 17,057,147 2,436,404
July 31, 2004 20 26,532,610 3,319,374
The Fund is authorized to issue an unlimited number of shares of each class and
at the date of this report has registered 200 million shares, par value $0.001
each. Transactions in shares of beneficial interest were as follows:
YEAR ENDED JULY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
CLASS A
Sold 36,589,676 $346,722,635 2,133,732 $ 19,355,973
Dividends and/or
distributions reinvested 559,316 5,301,678 134,239 1,208,043
Repurchased (2,575,947) (24,420,211) (1,255,972) (11,243,501)
-----------------------------------------------------------------
Net increase 34,573,045 $327,604,102 1,011,999 $ 9,320,515
=================================================================
- ---------------------------------------------------------------------------------------------
CLASS B
Sold 14,652,433 $138,541,892 2,286,292 $ 20,672,656
Dividends and/or
distributions reinvested 597,692 5,649,211 531,738 4,784,062
Repurchased (3,264,998) (30,860,952) (5,385,598) (48,276,184)
-----------------------------------------------------------------
Net increase (decrease) 11,985,127 $113,330,151 (2,567,568) $ (22,819,466)
=================================================================
- ---------------------------------------------------------------------------------------------
CLASS C
Sold 45,179,360 $428,020,260 4,345,531 $ 39,484,371
Dividends and/or
distributions reinvested 1,084,497 10,272,335 778,076 7,002,451
Repurchased (4,337,385) (40,979,642) (8,805,619) (78,864,728)
-----------------------------------------------------------------
Net increase (decrease) 41,926,472 $397,312,953 (3,682,012) $ (32,377,906)
=================================================================
- --------------------------------------------------------------------------------
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, 2004, were
$2,096,063,552 and $1,143,326,588, respectively.
43 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICES. The Fund pays the Manager a fee of $1,500 per year for
preparing and filing the Fund's tax returns.
- --------------------------------------------------------------------------------
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, 2004, the Fund
paid $594,432 to OFS for services to the Fund.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class
A shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years. Fees incurred by the Fund under the Plan are detailed in the Statement
of Operations.
- --------------------------------------------------------------------------------
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 to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of up to 0.75% per year on Class
B and 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 up to 0.25% per year under each plan. If either the
Class B or Class C plan is terminated by the Fund or by the shareholders of a
class, the Board of Trustees and its independent trustees must determine
whether the Distributor shall be entitled to payment from the Fund of all or a
portion of the service fee and/or asset-based sales charge in respect to shares
sold prior to the effective date of such termination. The Distributor's
aggregate uncompensated expenses under the plan at July 31, 2004 for Class B
and Class C shares were $6,342,639 and $13,111,372, respectively. Fees incurred
by the Fund under the plans are detailed in the Statement of Operations.
44 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption
proceeds prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------------
July 31, 2004 $504,323 $2,355 $261,669 $51,818
- --------------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. 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 Fund's average annual net
assets. As a result of this agreement the Fund was reimbursed $1,384,053 for
the year ended July 31, 2004. That voluntary reduction and waiver may be
withdrawn or amended at any time.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes to 0.35% of average annual net assets per class. During
the year ended July 31, 2004, OFS waived $48, $1,099 and $591 for Class A,
Class B and Class C shares, respectively. This undertaking may be amended or
withdrawn at any time.
- --------------------------------------------------------------------------------
5. ILLIQUID SECURITIES
As of July 31, 2004, 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, 2004 was $1,023,002,947, which represents 80.63% of the Fund's net assets.
- --------------------------------------------------------------------------------
6. LOAN COMMITMENTS
Pursuant to the terms of certain credit agreements, the Fund has unfunded loan
commitments of $8,063,854 at July 31, 2004. These commitments are subject to
funding based on 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.
45 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. BANK BORROWINGS
The Fund may borrow up to 33 1/3% of its total assets from a bank to purchase
portfolio securities, to meet repurchase obligations 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 $540 million, collectively, of which commitment $80
million is allocated to the Fund. Interest is charged to each fund, based on
its borrowings, at a rate equal to the Federal Funds Rate plus 0.75%. 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 borrowings outstanding of $12,800,000 at July 31, 2004 at an
interest rate of 2.12%. For the year ended July 31, 2004, the average monthly
loan balance was $11,058,392 at an average daily interest rate of 1.778%. The
Fund had gross borrowings and gross loan repayments of $512,500,000 and
$499,700,000, respectively, during the year ended July 31, 2004. The maximum
amount of borrowings outstanding at any month-end was $47,500,000. The Fund
paid $26,923 in commitment fees and interest of $213,483 during the year ended
July 31, 2004.
- --------------------------------------------------------------------------------
8. SUBSEQUENT EVENTS - LITIGATION
Three complaints have been filed as putative derivative and class actions
against the Manager, OFS and the Distributor (collectively, "OppenheimerFunds"),
as well as 51 of the Oppenheimer funds (collectively, the "Funds") including
this Fund, and nine directors/trustees of certain of the Funds (collectively,
the "Directors/Trustees"). The complaints allege that the Manager charged
excessive fees for distribution and other costs, improperly used assets of the
Funds in the form of directed brokerage commissions and 12b-1 fees to pay
brokers to promote sales of the Funds, and failed to properly disclose the use
of Fund assets to make those payments in violation of the Investment Company Act
of 1940 and the Investment Advisers Act of 1940. The complaints further allege
that by permitting and/or participating in those actions, the Directors/Trustees
breached their fiduciary duties to Fund shareholders under the Investment
Company Act of 1940 and at common law.
OppenheimerFunds believes that it is premature to render any opinion as to the
likelihood of an outcome unfavorable to them, the Funds or the
Directors/Trustees and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss. However,
OppenheimerFunds, the Funds and the Directors/Trustees believe that the
allegations contained in the complaints are without merit and intend to defend
these lawsuits vigorously.
46 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 2004, 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 presented.
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 the standards of the Public
Company Accounting Oversight Board (United States). 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, 2004, 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, 2004, 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 presented, in conformity with accounting principles generally accepted
in the United States of America.
DELOITTE & TOUCHE LLP
Denver, Colorado
September 21, 2004
47 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2005, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2004. 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, 2004
are eligible for the corporate dividend-received deduction.
Dividends, if any, paid by the Fund during the fiscal year ended July 31,
2004 which are not designated as capital gain distributions, 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
2005, 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 1.800.525.7048, (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 is 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 Fund's Form N-PX filing is available (i) without charge, upon
request, by calling the Fund toll-free at 1.800.525.7048, and (ii) on the SEC's
website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC for
the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied and the SEC's Public
Reference Room in Washington D.C. and information on the operation of the
Public Reference Room may be obtained by calling 1-800-SEC-0330.
48 | OPPENHEIMER SENIOR FLOATING RATE FUND
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TRUSTEES AND OFFICERS Unaudited
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NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD BY TRUSTEE;
FUND, LENGTH OF SERVICE, AGE NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL, CO
TRUSTEES 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
WILLIAM L. ARMSTRONG, Chairman of the following private mortgage banking companies: Cherry Creek Mortgage Company
Vice Chairman (since 2003) (since 1991), Centennial State Mortgage Company (since 1994), The El Paso Mortgage Company
and Trustee (since 1999) (since 1993), Transland Financial Services, Inc. (since 1997); Chairman of the following
Age: 67 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 38
portfolios in the OppenheimerFunds complex.
ROBERT G. AVIS, Formerly, Director and President of A.G. Edwards Capital, Inc. (General Partner of private
Trustee (since 1999) equity funds) (until February 2001); Chairman, President and Chief Executive Officer of A.G.
Age: 73 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 38 portfolios in the OppenheimerFunds complex.
GEORGE C. BOWEN, Formerly Assistant Secretary and a director (December 1991-April 1999) of Centennial Asset
Trustee (since 1999) Management Corporation; President, Treasurer and a director (June 1989-April 1999) of
Age: 67 Centennial Capital Corporation; Chief Executive Officer and a director of MultiSource Services,
Inc. (March 1996-April 1999). Until April 1999 Mr. Bowen held several positions in subsidiary
or affiliated companies of the Manager. Oversees 38 portfolios in the OppenheimerFunds complex.
EDWARD L. CAMERON, A member of The Life Guard of Mount Vernon, George Washington's home (since June 2000).
Trustee (since 1999) Formerly Director (March 2001-May 2002) of Genetic ID, Inc. and its subsidiaries (a privately
Age: 65 held biotech company); a partner (July 1974-June 1999) with PricewaterhouseCoopers LLP (an
accounting firm); and Chairman (July 1994-June 1998) of Price Waterhouse LLP Global Investment
Management Industry Services Group. Oversees 38 portfolios in the OppenheimerFunds complex.
JON S. FOSSEL, Director (since February 1998) of Rocky Mountain Elk Foundation (a not-for-profit foundation);
Trustee (since 1999) a director (since 1997) of Putnam Lovell Finance (finance company); a director (since June
Age: 62 2002) of UNUMProvident (an insurance company). Formerly a director (October 1999-October 2003)
of P.R. Pharmaceuticals (a privately held company); 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 (until October 1995) of Oppenheimer Acquisition Corp.,
Shareholders Services Inc. and Shareholder Financial Services, Inc. Oversees 38 portfolios in
the OppenheimerFunds complex.
49 | OPPENHEIMER SENIOR FLOATING RATE FUND
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TRUSTEES AND OFFICERS Unaudited / Continued
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SAM FREEDMAN, Director of Colorado Uplift (a non-profit charity) (since September 1984). Formerly (until
Trustee (since 1999) October 1994) Mr. Freedman held several positions in subsidiary or affiliated companies of the
Age: 63 Manager. Oversees 38 portfolios in the OppenheimerFunds complex.
F. WILLIAM MARSHALL, JR., Trustee of MassMutual Institutional Funds (since 1996) and MML Series Investment Fund (since
Trustee (since 2000) 1987) (both open-end investment companies) and the Springfield Library and Museum Association
Age: 62 (since 1995) (museums) and the Community Music School of Springfield (music school) (since
1996); Trustee (since 1987), Chairman of the Board (since 2003) and Chairman of the investment
committee (since 1994) for the Worcester Polytech Institute (private university); and President
and Treasurer (since January 1999) of the SIS Fund (a private not for profit charitable fund).
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) (commercial bank); and Executive Vice President (January 1999-July 1999) of
Peoples Heritage Financial Group, Inc. (commercial bank). Oversees 38 portfolios in the
OppenheimerFunds complex.
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INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET,
AND OFFICER 11TH FLOOR, NEW YORK, NY 10281-1008. MR. MURPHY SERVES FOR AN INDEFINITE TERM, UNTIL HIS
RESIGNATION, DEATH OR REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and director (since June 2001) and President (since September
President and Trustee (since 2000) of the Manager; President and a director or trustee of other Oppenheimer funds; President
2001) and a director (since July 2001) of Oppenheimer Acquisition Corp. (the Manager's parent holding
Age: 55 company) and of Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the
Manager); a director (since November 2001) of OppenheimerFunds Distributor, Inc. (a subsidiary
of the Manager); Chairman and a director (since July 2001) of Shareholder Services, Inc. and of
Shareholder Financial Services, Inc. (transfer agent subsidiaries of the Manager); 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
the Manager: OFI Institutional Asset Management, Inc., Centennial Asset Management Corporation,
Trinity Investment Management Corporation and Tremont Capital Management, Inc. (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.; 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 the shares of Babson Capital Management
LLC); a member of the Investment Company Institute's Board of Governors (elected to serve from
October 3, 2003 through September 30, 2006). 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 as Trustee/ Director
and 10 portfolios as Officer in the OppenheimerFunds complex.Officers
50 | OPPENHEIMER SENIOR FLOATING RATE FUND
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OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS AS FOLLOWS: FOR MR. ZACK, TWO WORLD FINANCIAL
CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008, FOR MESSRS. VANDEHEY, WELSH,
WIXTED, 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 ZIMMER, Senior Vice President of the Manager (since June 1997) and of HarbourView Asset Management
Vice President (since 1999) Corporation (since April 1999); an officer of 1 portfolio in the OppenheimerFunds complex.
Age: 58 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 October 1999); an officer of 1 portfolio in the
Assistant Vice President OppenheimerFunds complex; before joining the Manager, she was Vice President - Syndications of
(since 1999) Sanwa Bank California (January 1998 - September 1999), prior to which she was a Vice President
Age: 44 of Banque Nationale de Paris (May 1990 - January 1998).
JOSEPH WELSH, Vice President (since December 2000) of the Manager; a high yield bond analyst for the Manager
Assistant Vice President (since January 1995); an officer of 1 portfolio in the OppenheimerFunds complex; formerly,
(since 1999) Assistant Vice President of the Manager (December 1996-November 2000).
Age: 39
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer of HarbourView
Treasurer (since 1999) Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder Services, Inc.,
Age: 44 Oppenheimer Real Asset Management Corporation, and Oppenheimer Partnership Holdings, Inc.
(since March 1999), of OFI Private Investments, Inc. (since March 2000), of OppenheimerFunds
International Ltd. and OppenheimerFunds plc (since May 2000), of OFI Institutional Asset
Management, Inc. (since November 2000), and of OppenheimerFunds Legacy Program (a Colorado
non-profit corporation) (since June 2003); Treasurer and Chief Financial Officer (since May
2000) of OFI Trust Company (a trust company subsidiary of the Manager); Assistant Treasurer
(since March 1999) of Oppenheimer Acquisition Corp. Formerly Assistant Treasurer of Centennial
Asset Management Corporation (March 1999-October 2003) and OppenheimerFunds Legacy Program
(April 2000-June 2003); Principal and Chief Operating Officer (March 1995-March 1999) at
Bankers Trust Company-Mutual Fund Services Division. An officer of 83 portfolios in the
OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since February 2002) of the
Vice President and Secretary Manager; General Counsel and a director (since November 2001) of the Distributor; General
(since 2001) Counsel (since November 2001) of Centennial Asset Management Corporation; Senior Vice President
Age: 56 and General Counsel (since November 2001) of HarbourView Asset Management Corporation;
Secretary and General Counsel (since November 2001) of Oppenheimer Acquisition Corp.; Assistant
Secretary and a director (since October 1997) of OppenheimerFunds International Ltd. and
OppenheimerFunds plc; Vice President and a director (since November 2001) of Oppenheimer
Partnership Holdings, Inc.; a director (since November 2001) of Oppenheimer Real Asset
Management, Inc.; Senior Vice President, General Counsel and a director (since November 2001)
of Shareholder Financial Services, Inc., Shareholder Services, Inc., OFI Private Investments,
Inc. and OFI Trust Company; Vice President (since November 2001) of OppenheimerFunds Legacy
Program; Senior Vice President and General Counsel (since November 2001) of OFI Institutional
Asset Management, Inc.; a director (since June 2003) of OppenheimerFunds (Asia) Limited.
Formerly Senior Vice President (May 1985-December 2003), Acting General Counsel (November
51 | OPPENHEIMER SENIOR FLOATING RATE FUND
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TRUSTEES AND OFFICERS Unaudited / Continued
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ROBERT G. ZACK, 2001-February 2002) and Associate General Counsel (May 1981-October 2001) of the Manager; Assistant
Continued Secretary of Shareholder Services, Inc. (May 1985-November 2001), Shareholder Financial Services, Inc.
(November 1989-November 2001); and OppenheimerFunds International Ltd. (October 1997-November 2001). An
officer of 83 portfolios in the OppenheimerFunds complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer (since March 2004) of the Manager; Vice President
Vice President and Chief (since June 1983) of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and
Compliance Officer Shareholder Services, Inc. Formerly (until February 2004) Vice President and Director of Internal Audit
(since 2004) of OppenheimerFunds, Inc. An officer of 83 portfolios in the Oppenheimer funds complex.
Age: 53
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST.
52 | OPPENHEIMER SENIOR FLOATING RATE FUND
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the registrant has determined that Edward L.
Cameron, the Chairman of the Board's Audit Committee, and George C. Bowen, a
member of the Board's Audit Committee, possess the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as "audit
committee financial experts," and has designated Messrs. Cameron and Bowen as
the Audit Committee's financial experts. Messrs. Cameron and Bowen are
"independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) Audit Fees
The principal accountant for the audit of the registrant's
annual financial statements billed $21,000 in fiscal 2004 and
$19,500 in fiscal 2003.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees to the
registrant during the last two fiscal years.
The principal accountant for the audit of the registrant's
annual financial statements billed $5,525 in fiscal 2004 and
$34,734 in fiscal 2003 to the registrant's investment adviser
or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
registrant.
Such fees would include, among others: due diligence related
to mergers and acquisitions, accounting consultations and
audits in connection with acquisitions, internal control
reviews and consultation concerning financial accounting and
reporting standards.
(c) Tax Fees
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees to the
registrant during the last two fiscal years.
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees in fiscal
2004 and $10,448 in fiscal 2003 to the registrant's
investment adviser or any entity controlling, controlled
by, or under common control with the adviser that provides
ongoing services to the registrant.
Such fees would include, among others: tax compliance, tax
planning and tax advice. Tax compliance generally involves
preparation of original and amended tax returns, claims for a
refund and tax payment-planning services. Tax planning and tax
advice includes assistance with tax audits and appeals, tax
advice related to mergers and acquisitions and requests for
rulings or technical advice from taxing authorities.
(d) All Other Fees
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees to the
registrant during the last two fiscal years.
The principal accountant for the audit of the registrant's
annual financial statements billed no such fees in fiscal 2004
and $3,500 in fiscal 2003 to the registrant's investment
adviser or any entity controlling, controlled by, or under
common control with the adviser that provides ongoing services
to the registrant.
Such fees would include services provided to the registrant's
Board of Trustees with respect to the annual renewal of the
registrant's investment advisory agreement.
(e)(1) During its regularly scheduled periodic meetings, the
registrant's audit committee will pre-approve all audit,
audit-related, tax and other services to be provided by the
principal accountants of the registrant.
The audit committee has delegated pre-approval authority to
its Chairman for any subsequent new engagements that arise
between regularly scheduled meeting dates provided that any
fees such pre-approved are presented to the audit committee at
its next regularly scheduled meeting.
Pre-approval of non-audit services is waived provided that: 1)
the aggregate amount of all such services provided constitutes
no more than five percent of the total amount of fees paid by
the registrant to it principal accountant during the fiscal
year in which services are provided 2) such services were not
recognized by the registrant at the time of engagement as
non-audit services and 3) such services are promptly brought
to the attention of the audit committee of the registrant and
approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's
annual financial statements billed $5,525 in fiscal 2004 and
$48,682 in fiscal 2003 to the registrant and the registrant's
investment adviser or any entity controlling, controlled by,
or under common control with the adviser that provides ongoing
services to the registrant related to non-audit fees. Those
billings did not include any prohibited non-audit services as
defined by the Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of trustees has
considered whether the provision of non-audit services that
were rendered to the registrant's investment adviser, and any
entity controlling, controlled by, or under common control
with the investment adviser that provides ongoing services to
the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal account's
independence. No such services were rendered.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Board is responsible for approving nominees for election as
trustees. To assist in this task, the Board has designated the Audit Committee
as the nominating committee for the Board. It reviews and recommends nominees to
the Board. The Committee is comprised entirely of disinterested trustees as
defined in Section 2(a)(19) of the Investment Company Act of 1940.
The Audit Committee charter describes the responsibilities of the
Committee in nominating candidates for election as independent Trustees of the
Registrant. The Registrant's Board has adopted a written charter for the
Committee. A current copy of the Audit Committee charter is available to
shareholders on the OppenheimerFunds website at WWW.OPPENHEIMERFUNDS.COM.
Under the current policy, if the Board determines that a vacancy exists
or is likely to exist on the Board, the Audit Committee of the Board will
consider candidates for Board membership including recommended by Registrant
shareholders. The Audit Committee will consider nominees recommended by
independent Board members or recommended by any other Board members including
Board members affiliated with the Registrant's investment advisors. The
Committee may, upon Board approval, retain an executive search firm to assist in
screening potential candidates. Upon Board approval, the Audit Committee may
also use the services of legal, financial, or other external counsel that it
deems necessary or desirable in the screening process. Shareholders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., 6803 South Tucson Way, Centennial, CO
80112, to the attention of the Board of Trustees of the named Registrant, c/o
the Secretary of the Registrant.
The Committee's process for identifying and evaluating nominees for
trustees includes a number of factors. In screening candidates for board
membership, whether the candidate is suggested by Board members, shareholders or
others, the Committee considers the candidate's professional experience,
soundness of judgment, integrity, ability to make independent, analytical
inquiries, collegiality, willingness and ability to devote the time required to
perform Board activities adequately, ability to represent the interests of all
shareholders of the Registrant, and diversity relative to the board's
composition. Candidates are expected to provide a mix of attributes, experience,
perspective and skills necessary to effectively advance the interests of
shareholders.
ITEM 10. 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, 2004, registrant's principal executive officer and
principal financial officer found registrant's disclosure
controls and procedures to provide reasonable assurances 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 over financial reporting that occurred
during the registrant's last fiscal half-year that has
materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial
reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS
EXHIBIT)(NOT APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)