UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-09373
OPPENHEIMER SENIOR FLOATING RATE FUND
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
ROBERT G. ZACK, ESQ.
OPPENHEIMERFUNDS, INC.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(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: JANUARY 31, 2006
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP TEN CORPORATE LOAN INDUSTRIES
- --------------------------------------------------------------------------------
Media 15.0%
- --------------------------------------------------------------------------------
Health Care Providers & Services 8.0
- --------------------------------------------------------------------------------
Auto Components 7.3
- --------------------------------------------------------------------------------
Electric Utilities 6.3
- --------------------------------------------------------------------------------
Oil & Gas 6.1
- --------------------------------------------------------------------------------
Commercial Services & Supplies 6.0
- --------------------------------------------------------------------------------
Industrial Conglomerates 5.2
- --------------------------------------------------------------------------------
Aerospace & Defense 5.1
- --------------------------------------------------------------------------------
Chemicals 4.9
- --------------------------------------------------------------------------------
Hotels, Restaurants & Leisure 4.8
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2006, and are based on net assets.
TOP FIVE HOLDINGS BY ISSUERS
- --------------------------------------------------------------------------------
Adelphia Communications 1.7%
- --------------------------------------------------------------------------------
United Pan-Europe Communications NV 1.6
- --------------------------------------------------------------------------------
Charter Communications Holdings LLC 1.5
- --------------------------------------------------------------------------------
Sungard Data Systems 1.3
- --------------------------------------------------------------------------------
NRG Energy, Inc. 1.2
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2006, and are based on the total market value of investments.
For more current information on Fund holdings, please visit
www.oppenheimerfunds.com.
- --------------------------------------------------------------------------------
CREDIT ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
BBB 2.6%
BB 17.1
B 55.0
CCC 1.5
D 0.6
Not Rated 22.6
Other Securities 0.6
Portfolio holdings and allocations are subject to change. Percentages are as of
January 31, 2006, and are based on the total market value of investments.
- --------------------------------------------------------------------------------
9 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES
- --------------------------------------------------------------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. 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. 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. 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%.
10 | OPPENHEIMER SENIOR FLOATING RATE FUND
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). Because Class B shares convert to Class A shares 72 months after
purchase, the "since inception" return for Class B uses Class A performance for
the period after conversion. 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.
CLASS Y shares of the Fund were first publicly offered on 11/28/05. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
11 | OPPENHEIMER SENIOR FLOATING RATE FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
early withdrawal charges on redemptions; and redemption fees, if any; 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 January 31, 2006.
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 earlt withdrawal charges (loads), or a $12.00 fee imposed annually on
accounts valued at less than $500.00 (subject to exceptions described in the
12 | OPPENHEIMER SENIOR FLOATING RATE FUND
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.
13 | OPPENHEIMER SENIOR FLOATING RATE FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(8/1/05) (1/31/06) JANUARY 31, 2006 1,2
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,034.20 $4.52
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,020.77 4.49
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,032.30 7.51
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,017.85 7.45
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,031.60 7.14
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,018.20 7.10
ENDING EXPENSES
BEGINNING ACCOUNT PAID DURING
ACCOUNT VALUE 6 MONTHS ENDED
VALUE (1/31/06) JANUARY 31, 2006 2,3
- --------------------------------------------------------------------------------
Class Y Actual $1,000.00 $1,013.90 $0.65
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,023.39 1.84
Hypothetical assumes 5% annual return before expenses.
1. Actual expenses paid for Classes A, B and C are equal to the Fund's
annualized expense ratio for that class, multiplied by the average account value
over the period, multiplied by 184/365 (to reflect the one-half year period).
2. Hypothetical expenses paid for all classes are equal to the Fund's annualized
expense ratio for that class, multiplied by the average account value over the
period, multiplied by 184/365 (to reflect the one-half year period).
3. Actual expenses paid for Class Y are equal to the Fund's annualized expense
ratio for that class, multiplied by the average account value over the period,
multiplied by 65/365 [to reflect the period from November 28, 2005 (inception of
offering) to January 31, 2006].
Those annualized expense ratios based on the 6-month period ended January 31,
2006 for Classes A, B and C, and for the period from November 28, 2005
(inception of offering) to January 31, 2006 for Class Y are as follows:
CLASS EXPENSE RATIOS
- ------------------------
Class A 0.88%
- ------------------------
Class B 1.46
- ------------------------
Class C 1.39
- ------------------------
Class Y 0.36
The expense ratios reflect voluntary waivers or 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 waivers or
reimbursements.
- --------------------------------------------------------------------------------
14 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS January 31, 2006 / Unaudited
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
CORPORATE LOANS--107.5%
- --------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--33.1%
- --------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS--7.3%
Collins & Aikman Corp., Sr. Sec. Credit Facilities Term Loan,
Debtor in Possession, 7.50%-7.563%, 5/17/07 1 $10,000,000 $ 10,087,500
- --------------------------------------------------------------------------------------------------------------
Delphi Corp., Sr. Sec. Credit Facilities Revolving Credit Loan:
Tranche B, 6/3/09 1,2 5,000,000 4,998,215
6/18/09 1,2,3 5,000,000 5,170,315
11.343%, 6/18/09 1,3 14,037,015 14,515,157
- --------------------------------------------------------------------------------------------------------------
Federal Mogul Corp., Sr. Sec. Credit Facilities Pre-Petition Revolving
Credit Loan:
Tranche B, 12/30/06 1,2 10,000,000 9,334,380
Tranche B, 6.31%, 12/30/06 1 14,601,461 13,629,559
- --------------------------------------------------------------------------------------------------------------
Federal Mogul Corp., Sr. Sec. Credit Facilities Term Loan,
Debtor in Possession, 6.563%, 12/9/06 1 7,000,000 7,005,831
- --------------------------------------------------------------------------------------------------------------
Goodyear Tire & Rubber Co. (The), Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 7.06%, 4/30/10 1 25,000,000 25,283,850
- --------------------------------------------------------------------------------------------------------------
Hayes Lemmerz International, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.31%-7.97%, 6/3/09 1 14,434,711 14,429,559
- --------------------------------------------------------------------------------------------------------------
Key Plastics LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.38%-9.37%, 6/25/10 1,3 13,769,783 13,769,783
- --------------------------------------------------------------------------------------------------------------
Mark IV Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.18%-7.71%, 6/23/11 1 20,451,269 20,694,128
- --------------------------------------------------------------------------------------------------------------
Plastech Engineered Products, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 9.28%, 2/12/10 1 10,355,732 9,667,076
- --------------------------------------------------------------------------------------------------------------
Tenneco Automotive, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.63%, 12/12/10 1 8,985,011 9,133,264
- --------------------------------------------------------------------------------------------------------------
TI Automotive Ltd., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 7.942%, 6/7/11 1 22,068,967 21,765,519
- --------------------------------------------------------------------------------------------------------------
Tire Rack, Inc. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.78%-6.81%, 6/24/12 1,3 14,596,453 14,778,909
- --------------------------------------------------------------------------------------------------------------
Tower Automotive, Inc., Sr. Sec. Credit Facilities Term Loan,
Debtor in Possession, 7.25%, 2/2/07 1 26,000,000 26,557,154
--------------
220,820,199
- --------------------------------------------------------------------------------------------------------------
AUTOMOBILES--0.3%
AM General LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.869%-10.603%, 8/10/11 1,3 9,900,000 10,229,997
- --------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--4.8%
Aladdin/OpBiz Gaming LLC, Sr. Sec. Credit Facilities Term Loan:
Tranche A, 5.78%, 8/31/10 1 15,967,308 15,757,737
Tranche B, 8.505%, 8/31/10 1 39,950 39,445
15 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE Continued
AMF Bowling Worldwide, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche B, 7.053%-7.66%, 8/27/09 1,3 $ 1,589,092 $ 1,603,494
- --------------------------------------------------------------------------------------------------------------
Arby's LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.656%-6.918%, 7/25/12 1 8,925,024 8,992,757
- --------------------------------------------------------------------------------------------------------------
Buffets, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 8.027%-8.068%, 6/28/09 1 1,423,560 1,437,796
Tranche B, 8.19%, 6/28/09 1,3 12,292,502 12,415,427
- --------------------------------------------------------------------------------------------------------------
Caribbean Restaurants LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4.85%, 6/30/09 1 2,000,000 2,026,250
- --------------------------------------------------------------------------------------------------------------
Denny's Corp., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.303%-7.97%, 9/30/09 1 6,910,181 7,046,947
- --------------------------------------------------------------------------------------------------------------
Denny's Corp., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 9.178%-9.845%, 8/31/10 1,3 4,999,998 5,152,086
- --------------------------------------------------------------------------------------------------------------
Garden Fresh Restaurant Corp., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 9.37%, 6/20/11 1,3 7,000,000 7,017,500
- --------------------------------------------------------------------------------------------------------------
Harmon Koval Partners LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.73%, 12/31/06 1,3 10,000,000 9,950,000
- --------------------------------------------------------------------------------------------------------------
MotorCity Casino LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.39%-6.519%, 7/21/12 1 6,965,007 7,014,633
- --------------------------------------------------------------------------------------------------------------
Penn National Gaming, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.04%-6.39%, 10/3/12 1 6,483,750 6,576,954
- --------------------------------------------------------------------------------------------------------------
Resorts International Hotel & Casino, Inc., Sr. Sec. Credit Facilities
1st Lien Term Loan, Tranche B, 7.53%, 3/22/12 1 19,259,241 18,936,649
- --------------------------------------------------------------------------------------------------------------
Resorts International Hotel & Casino, Inc., Sr. Sec. Credit Facilities
2nd Lien Term Loan, 12.027%, 3/22/13 1 10,201,415 9,242,482
- --------------------------------------------------------------------------------------------------------------
Trump Entertainment Resorts, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B1, 7.17%, 5/20/12 1 3,980,000 4,028,922
Tranche B2, 1%, 5/20/12 1 3,990,000 4,038,004
- --------------------------------------------------------------------------------------------------------------
Turtle Bay Resort, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.318%, 9/13/10 1,3 9,975,000 10,074,750
- --------------------------------------------------------------------------------------------------------------
Wembley plc, Sr. Sec. Credit Facilities 1st Lien Term Loan, 6.08%, 7/25/12 1,3 2,985,000 3,032,575
- --------------------------------------------------------------------------------------------------------------
Wembley plc, Sr. Sec. Credit Facilities 2nd Lien Term Loan, 7.83%, 7/25/13 1,3 4,000,000 4,076,668
- --------------------------------------------------------------------------------------------------------------
Yonkers Racing Corp., Sr. Sec. Credit Facilities
Term Loan, 2.25%-8.04%, 7/25/11 1 8,500,001 8,595,626
--------------
147,056,702
- --------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES--1.0%
Culligan International Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.97%, 9/30/11 1 9,900,000 10,038,184
- --------------------------------------------------------------------------------------------------------------
Springs Window Fashions Division, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.313%, 12/18/12 1,3 10,000,000 10,021,880
- --------------------------------------------------------------------------------------------------------------
Technical Olympic USA, Inc., Sr. Sec. Credit Facilities Term Loan,
7.188%, 7/29/08 1,3 9,000,000 9,078,750
--------------
29,138,814
16 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS--1.0%
24 Hour Fitness, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.54%-7.70%, 6/18/12 1 $20,000,000 $ 20,283,340
- --------------------------------------------------------------------------------------------------------------
Latham International Ltd., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.74%-7.83%, 12/29/10 1,3 9,395,060 9,483,138
--------------
29,766,478
- --------------------------------------------------------------------------------------------------------------
MEDIA--15.0%
Affinion Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.10%-7.233%, 9/19/12 1 12,325,581 12,263,954
- --------------------------------------------------------------------------------------------------------------
ALM Properties, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.027%, 3/4/10 1 15,190,475 15,196,809
- --------------------------------------------------------------------------------------------------------------
Atlantic Broadband LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.20%, 9/1/11 1 10,546,061 10,733,918
- --------------------------------------------------------------------------------------------------------------
Bragg Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.46%, 8/31/11 1,3 9,974,747 10,080,729
- --------------------------------------------------------------------------------------------------------------
Cebridge Connections Holding LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan:
7.246%-7.791%, 2/23/09 1,3 2,456,141 2,471,491
9.616%, 2/23/09 1 6,266 6,305
- --------------------------------------------------------------------------------------------------------------
Cebridge Connections Holding LLC, Sr. Sec. Credit Facilities 2nd Lien
Term Loan:
Tranche C, 10.29%-10.55%, 2/23/10 1,3 15,126,329 15,693,567
Tranche C, 10.29%-12.082%, 2/23/10 1 5,026,151 5,214,632
- --------------------------------------------------------------------------------------------------------------
Century-TCI California LP, Sr. Sec. Credit Facilities Revolving
Credit Loan, 7.397%, 12/31/07 1 24,435,000 24,282,281
- --------------------------------------------------------------------------------------------------------------
Century-TCI California LP, Sr. Sec. Credit Facilities
Term Loan, 7.397%, 12/31/07 1 24,703,475 24,549,078
- --------------------------------------------------------------------------------------------------------------
Charter Communications Operating LLC, Sr. Sec. Credit Facilities
Term Loan, Tranche A, 7.67%, 4/27/10 1 40,744,653 40,961,862
- --------------------------------------------------------------------------------------------------------------
Cygnus Business Media, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 9.10%, 12/31/08 1,3 9,974,747 9,924,874
- --------------------------------------------------------------------------------------------------------------
Deluxe Entertainment Services, Inc., Sr. Sec. Credit Facilities
Term Loan, 8.318%, 1/13/10 1 7,500,000 7,607,813
- --------------------------------------------------------------------------------------------------------------
Endurance Business Media, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.74%, 3/7/12 1,3 7,500,000 7,570,313
- --------------------------------------------------------------------------------------------------------------
Frontiervision Operating Partners LP, Sr. Sec. Credit Facilities
Revolving Credit Loan, 8.90%, 3/31/06 1 9,363,636 9,387,045
- --------------------------------------------------------------------------------------------------------------
Gray Television, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 6.03%, 11/22/12 1 7,500,000 7,560,937
Tranche B, 6.11%, 12/30/12 1 3,000,000 3,024,375
- --------------------------------------------------------------------------------------------------------------
Herald Media, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.28%, 7/22/11 1,3 4,860,089 4,884,390
- --------------------------------------------------------------------------------------------------------------
Hit Entertainment, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 6.86%, 8/5/12 1 15,920,000 15,997,610
17 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
MEDIA Continued
Metro-Goldwyn-Mayer Studios, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 6.78%, 4/8/11 1 $ 4,000,000 $ 4,030,000
Tranche B, 6.78%, 4/8/12 1 6,000,000 6,068,862
- --------------------------------------------------------------------------------------------------------------
Newspaper Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.188%, 8/24/12 1,3 6,296,667 6,339,956
- --------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.777%, 1/15/12 1 25,000,000 25,078,125
- --------------------------------------------------------------------------------------------------------------
PBI Media LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 6.777%-6.918%, 9/30/12 1 7,980,000 7,983,328
- --------------------------------------------------------------------------------------------------------------
PBI Media LLC, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 10.668%, 9/30/13 1,3 12,000,000 11,760,000
- --------------------------------------------------------------------------------------------------------------
Quebecor Media, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.602%, 1/15/13 1 15,000,000 15,221,880
- --------------------------------------------------------------------------------------------------------------
Regal Cinemas, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.527%-8.318%, 11/10/10 1 34,146,601 34,577,701
- --------------------------------------------------------------------------------------------------------------
San Juan Cable & Construction, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 6.44%, 10/1/12 1 10,000,000 10,090,630
- --------------------------------------------------------------------------------------------------------------
SFX Entertainment, Inc., Sr. Sec. Credit Facilities Term
Loan, 6.76%, 7/31/13 1 15,000,000 15,023,445
- --------------------------------------------------------------------------------------------------------------
Spanish Broadcasting System, Inc., Sr. Sec. Credit Facilities 1st
Lien Term Loan, Tranche B, 6.53%, 6/10/12 1 8,432,519 8,553,736
- --------------------------------------------------------------------------------------------------------------
Spanish Broadcasting System, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 8.02%, 6/10/13 1 4,000,000 4,060,832
- --------------------------------------------------------------------------------------------------------------
Triple Crown Media, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.74%, 6/30/10 1,3 8,000,000 8,010,000
- --------------------------------------------------------------------------------------------------------------
United Pan-Europe Communications NV, Sr. Sec. Credit Facilities Term Loan:
Tranche F2, 8.03%, 2/1/12 1 18,000,000 18,258,750
Tranche H2, 7.28%, 9/30/12 1 35,000,000 35,428,120
- --------------------------------------------------------------------------------------------------------------
Young Broadcasting, Inc., Sr. Sec. Credit Facilities Term Loan:
11/3/12 1,2,3 5,000,000 5,011,720
6.563%-6.813%, 11/3/12 1 9,950,000 9,973,323
--------------
452,882,391
- --------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL--0.8%
Dollarama Group LP, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 6.918%, 11/18/11 1,3 6,930,000 7,033,950
Tranche B Add-On, 6.918%, 11/18/11 1,3 2,106,414 2,138,011
- --------------------------------------------------------------------------------------------------------------
General Growth Properties, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.57%, 11/24/08 1 11,451,429 11,485,543
- --------------------------------------------------------------------------------------------------------------
Neiman Marcus Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.947%, 4/6/13 1 2,898,734 2,933,991
--------------
23,591,495
18 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL--2.3%
BCBG Max Azria Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.313%-9.37%, 8/10/11 1 $13,999,999 $ 13,938,750
- --------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.53%-7.80%, 3/1/12 1,3 7,940,001 8,044,213
- --------------------------------------------------------------------------------------------------------------
Harbor Freight Tools, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.94%-7.068%, 7/15/10 1 13,668,000 13,825,181
- --------------------------------------------------------------------------------------------------------------
Movie Gallery, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.28%, 4/27/11 1 3,967,531 3,797,495
- --------------------------------------------------------------------------------------------------------------
Oriental Trading Co., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 9.313%, 2/14/11 1 5,000,000 5,035,415
- --------------------------------------------------------------------------------------------------------------
Oriental Trading Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.813%, 2/14/10 1 11,595,164 11,677,294
- --------------------------------------------------------------------------------------------------------------
Pep Boys (The), Sr. Sec. Credit Facilities Term Loan, 7.31%, 1/27/11 1 4,000,000 4,060,000
- --------------------------------------------------------------------------------------------------------------
Savers, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan:
Tranche B, 7.466%, 7/30/09 1,3 5,478,051 5,536,255
Tranche B, 7.818%, 7/30/09 1 3,589,986 3,628,130
--------------
69,542,733
- --------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--0.6%
Levi Strauss & Co., Sr. Sec. Credit Facilities
Term Loan, 11.185%-11.345%, 8/1/06 1,3 7,731,559 7,898,275
- --------------------------------------------------------------------------------------------------------------
Maidenform, Inc., Sr. Sec. Credit Facilities
Term Loan, 5.764%-6.22%, 6/7/10 1 9,166,667 9,269,792
--------------
17,168,067
- --------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--8.8%
- --------------------------------------------------------------------------------------------------------------
BEVERAGES--0.4%
Le*Nature's, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.26%-9.37%, 5/20/10 1,3 3,925,075 3,983,951
Tranche B Add-On, 7.88%-9.37%, 12/28/12 1 5,094,937 5,171,361
- --------------------------------------------------------------------------------------------------------------
Sunny Delight Beverages Co., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.36%-8.63%, 8/3/10 1 2,426,471 2,408,272
--------------
11,563,584
- --------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--1.9%
Bi-Lo Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.46%-8.57%, 7/29/11 1 40,405,798 40,380,544
- --------------------------------------------------------------------------------------------------------------
MAPCO, Inc., Sr. Sec. Credit Facilities Term Loan, 7.26%-9.123%, 4/28/11 1 6,965,000 7,056,416
- --------------------------------------------------------------------------------------------------------------
Roundy's Supermarkets, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.42%-7.49%, 11/3/11 1 10,000,000 9,975,000
--------------
57,411,960
19 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS--1.5%
American Seafoods Group LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B1, 6.277%, 9/30/12 1,3 $ 2,493,750 $ 2,529,598
- --------------------------------------------------------------------------------------------------------------
American Seafoods Group LLC, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, Tranche B2, 0.50%, 9/30/12 1,3 8,000,000 8,045,000
- --------------------------------------------------------------------------------------------------------------
Bolthouse Farms, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 6.938%, 11/17/12 1 1,500,000 1,522,812
- --------------------------------------------------------------------------------------------------------------
Chiquita Brands International, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 6.56%, 6/28/12 1 14,935,000 15,112,353
- --------------------------------------------------------------------------------------------------------------
Meow Mix, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.74%, 7/13/11 1,3 10,840,351 11,009,731
- --------------------------------------------------------------------------------------------------------------
Windsor Quality Food Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.28%, 12/10/10 1,3 6,440,000 6,456,100
--------------
44,675,594
- --------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.3%
Amscan Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.51%, 12/22/12 1 17,000,000 16,837,089
- --------------------------------------------------------------------------------------------------------------
Jarden Corp., Sr. Sec. Credit Facilities Term Loan, 6.527%, 1/24/12 1 11,659,183 11,760,163
- --------------------------------------------------------------------------------------------------------------
Playpower, Inc., Sr. Sec. Credit Facilities Term Loan, 7.53%, 2/1/10 1,3 10,081,197 10,219,813
--------------
38,817,065
- --------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS--3.1%
American Safety Razor Co., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.15%, 2/1/12 1,3 6,496,389 6,593,835
- --------------------------------------------------------------------------------------------------------------
American Safety Razor Co., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 10.31%, 8/1/12 1,3 7,000,000 7,105,000
- --------------------------------------------------------------------------------------------------------------
Cosmetic Essence, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.438%-8.877%, 12/3/10 1,3 11,496,783 10,864,460
- --------------------------------------------------------------------------------------------------------------
FGX International, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 8.50%, 12/15/12 1 15,000,000 14,887,500
- --------------------------------------------------------------------------------------------------------------
MD Beauty, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.67%-9.50%, 2/18/12 1 14,451,033 14,541,353
- --------------------------------------------------------------------------------------------------------------
MD Beauty, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 11.67%, 2/18/13 1 7,500,000 7,537,500
- --------------------------------------------------------------------------------------------------------------
Natural Products Group, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.78%-7.82%, 8/16/11 1,3 11,328,176 11,384,818
- --------------------------------------------------------------------------------------------------------------
Nice-Pak Products, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 8.149%, 6/18/10 1,3 4,625,000 4,665,469
Tranche B, 9.37%, 6/18/10 1 62,500 63,047
- --------------------------------------------------------------------------------------------------------------
Pure Fishing, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.53%, 3/23/10 1,3 4,461,052 4,497,298
Tranche B, 7.53%-7.70%, 3/23/10 1 13,070,883 13,177,083
--------------
95,317,363
20 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
TOBACCO--0.6%
Commonwealth Brands, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7%, 12/22/12 1 $14,837,500 $ 15,015,550
- --------------------------------------------------------------------------------------------------------------
Mafco, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.50%, 12/15/11 1,3 3,890,909 3,932,250
--------------
18,947,800
- --------------------------------------------------------------------------------------------------------------
ENERGY--6.5%
- --------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--0.4%
Northern Star Generation LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.527%, 12/17/11 1,3 12,835,919 13,008,409
- --------------------------------------------------------------------------------------------------------------
OIL & GAS--6.1%
ATP Oil & Gas Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 9.49%-10.068%, 4/14/10 1 28,812,463 29,586,797
- --------------------------------------------------------------------------------------------------------------
Cheniere Energy, Inc., Sr. Sec. Credit Facilities Term Loan, 6.95%, 9/1/12 1 15,945,000 16,099,475
- --------------------------------------------------------------------------------------------------------------
Coleto Creek WLE LP, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche C, 7.918%, 7/1/12 1,3 19,260,000 19,452,600
- --------------------------------------------------------------------------------------------------------------
El Paso Corp., Sr. Sec. Credit Facilities Term Loan, 7.313%, 11/23/09 1 22,786,290 22,968,261
- --------------------------------------------------------------------------------------------------------------
Ferrell Cos., Inc., Sr. Sec. Credit Facilities
Term Loan, 7.983%-7.997%, 12/17/11 1 21,776,936 22,103,591
- --------------------------------------------------------------------------------------------------------------
Hercules Offshore LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.78%, 6/29/10 1,3 8,419,643 8,535,413
- --------------------------------------------------------------------------------------------------------------
PowerWell Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.30%, 8/19/10 1 23,000,000 23,273,125
- --------------------------------------------------------------------------------------------------------------
Targa Resources, Inc., Sr. Sec. Credit Facilities Bridge
Term Loan, 6.83%, 10/31/07 1,3 16,000,000 16,060,000
- --------------------------------------------------------------------------------------------------------------
Texstar Operating, Inc., Sr. Sec. Credit Facilities
Term Loan, 7.71%, 11/30/11 1,3 10,000,000 10,050,000
- --------------------------------------------------------------------------------------------------------------
TXOK Acquisition, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 9.063%, 9/27/10 1,3 16,000,000 16,200,000
--------------
184,329,262
- --------------------------------------------------------------------------------------------------------------
FINANCIALS--2.4%
- --------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--0.7%
Ameritrade Holding Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.04%, 1/27/13 1 20,000,000 20,127,500
- --------------------------------------------------------------------------------------------------------------
INSURANCE--0.7%
Conseco, Inc., Sr. Sec. Credit Facilities Term Loan, 6.47%, 6/22/10 1 9,807,791 9,893,609
- --------------------------------------------------------------------------------------------------------------
Swett & Crawford Group, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.35%, 11/16/11 1,3 5,000,000 5,062,500
- --------------------------------------------------------------------------------------------------------------
Vertafore, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.144%-7.29%, 11/30/10 1 7,391,444 7,428,401
--------------
22,384,510
21 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
REAL ESTATE--1.0%
Capital Auto REIT, Sr. Sec. Credit Facilities Term Loan, 6.31%, 12/31/10 1 $15,000,000 $ 15,061,875
- --------------------------------------------------------------------------------------------------------------
Gables Realty Ltd., Sr. Sec. Credit Facilities
Term Loan, 6.15%-6.17%, 9/30/06 1 4,686,842 4,717,110
- --------------------------------------------------------------------------------------------------------------
LNR Property Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.26%-7.42%, 2/3/08 1 10,000,000 10,085,940
--------------
29,864,925
- --------------------------------------------------------------------------------------------------------------
HEALTH CARE--8.8%
- --------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--0.8%
Aircast, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 11.45%, 6/7/11 1,3 1,000,000 1,015,000
- --------------------------------------------------------------------------------------------------------------
Aircast, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.20%, 10/28/10 1,3 2,712,454 2,734,492
- --------------------------------------------------------------------------------------------------------------
CCS Medical, Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.78%, 9/30/12 1 22,000,000 21,789,174
--------------
25,538,666
- --------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--8.0%
American Medical Response/EmCare Holdings, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche B, 6.56%-6.78%, 2/10/12 1 9,220,714 9,335,974
- --------------------------------------------------------------------------------------------------------------
Ameripath, Inc., Sr. Sec. Credit Facilities Term Loan, 6.57%, 1/25/13 1 6,000,000 6,076,878
- --------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.03%, 7/27/11 1,3 9,152,381 9,209,583
- --------------------------------------------------------------------------------------------------------------
Benchmark Medical, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.877%, 12/27/12 1,3 5,000,000 5,050,000
- --------------------------------------------------------------------------------------------------------------
CompBenefits Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 8.156%-8.318%, 8/27/09 1,3 4,616,914 4,616,914
Tranche C, 11.318%, 2/27/10 1,3 1,965,000 1,960,088
- --------------------------------------------------------------------------------------------------------------
Concentra Operating Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.53%-6.69%, 9/30/11 1,3 6,982,500 7,077,057
- --------------------------------------------------------------------------------------------------------------
DaVita, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 6.54%-6.94%, 10/5/12 1 10,477,502 10,639,428
Tranche B, 6.85%, 10/5/12 1,3 64,706 65,706
- --------------------------------------------------------------------------------------------------------------
FHC Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 10.41%, 11/15/09 1,3 5,380,367 5,487,974
- --------------------------------------------------------------------------------------------------------------
FHC Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan, Delayed Draw,
Tranche B, 12.41%, 11/15/09 1,3 2,080,196 2,121,800
- --------------------------------------------------------------------------------------------------------------
Genoa Healthcare LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.73%-9.75%, 7/20/12 1,3 9,447,715 9,533,339
- --------------------------------------------------------------------------------------------------------------
Genoa Healthcare LLC, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 12.23%, 12/20/12 1 1,000,000 1,009,375
- --------------------------------------------------------------------------------------------------------------
HealthSouth Corp., Sr. Sec. Credit Facilities Letter of Credit
Term Loan, 7.007%, 3/21/10 1,3 362,620 364,320
- --------------------------------------------------------------------------------------------------------------
HealthSouth Corp., Sr. Sec. Credit Facilities Term Loan, 7.07%, 6/14/07 1,3 6,041,692 6,070,015
- --------------------------------------------------------------------------------------------------------------
HealthSouth Corp., Sr. Sec. Sub. Credit Facilities Term Loan, 10.375%, 1/16/11 10,500,000 11,200,004
- --------------------------------------------------------------------------------------------------------------
HealthSouth Corp., Sr. Unsec. Credit Facilities Term Loan, 9.49%, 6/10/10 1 16,000,000 16,200,000
22 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Matria Healthcare, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 8.63%, 2/10/12 1 $ 8,153,846 $ 8,235,385
Tranche C, 8.63%, 2/10/07 1 3,846,154 3,884,615
- --------------------------------------------------------------------------------------------------------------
Per-Se Technologies, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.791%, 1/6/13 1 19,000,000 19,213,750
- --------------------------------------------------------------------------------------------------------------
Renal Advantage, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.97%, 9/30/12 1,3 3,990,000 4,037,381
- --------------------------------------------------------------------------------------------------------------
Rural/Metro Corp., Sr. Sec. Credit Facilities Letter of Credit
Term Loan, 6.919%, 2/18/12 1,3 2,604,709 2,643,780
- --------------------------------------------------------------------------------------------------------------
Rural/Metro Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.86%-7.101%, 2/18/12 1,3 9,004,851 9,139,924
- --------------------------------------------------------------------------------------------------------------
Sheridan Healthcare, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 5.47%-7.692%, 11/9/10 1,3 11,820,949 11,968,711
- --------------------------------------------------------------------------------------------------------------
Sheridan Healthcare, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, Tranche C, 11.832%, 5/9/11 1,3 1,500,000 1,526,250
- --------------------------------------------------------------------------------------------------------------
SouthernCare, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.698%-7.81%, 12/10/10 1,3 9,405,000 9,510,807
- --------------------------------------------------------------------------------------------------------------
Team Health, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.88%, 11/30/12 1,3 10,000,000 10,093,750
- --------------------------------------------------------------------------------------------------------------
Triumph HealthCare LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.53%, 8/12/12 1,3 6,982,500 6,842,850
- --------------------------------------------------------------------------------------------------------------
Triumph HealthCare LLC, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 13.06%, 1/12/13 1 2,000,000 1,903,334
- --------------------------------------------------------------------------------------------------------------
Vanguard Health Systems, Inc., Sr. Sec. Credit Facilities Acquisition
Term Loan, Tranche B, 6.771%-6.95%, 9/23/11 1 14,860,257 15,067,676
- --------------------------------------------------------------------------------------------------------------
Warner Chilcott plc, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.011%-7.277%, 1/4/12 1 18,591,232 18,694,357
Tranche C, 7.277%, 1/4/12 1 5,513,726 5,544,311
Tranche D, 7.277%, 1/4/12 1 3,537,459 3,557,082
- --------------------------------------------------------------------------------------------------------------
Warner Chilcott plc, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw:
1.375%, 1/14/12 1 344,646 345,335
7.28%-7.44%, 1/14/12 1,3 2,522,072 2,527,116
--------------
240,754,869
- --------------------------------------------------------------------------------------------------------------
INDUSTRIALS--21.6%
- --------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--5.1%
American Airlines, Inc., Sr. Sec. Credit Facilities Revolving
Credit Loan, 9.22%-9.49%, 6/17/09 1,3 8,100,000 8,116,451
- --------------------------------------------------------------------------------------------------------------
Apptis, Inc., Sr. Sec. Credit Facilities Term Loan, 7.81%, 1/5/11 1,3 7,833,770 7,887,627
- --------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 8.777%, 3/31/08 1,3 8,478,750 8,542,341
23 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE Continued
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 11%, 6/30/08 3 $ 8,000,000 $ 8,040,000
- --------------------------------------------------------------------------------------------------------------
Delta Airlines, Inc., Sr. Sec. Credit Facilities Term Loan,
Debtor in Possession:
Tranche A, 9.01%, 3/27/08 1 1,000,000 1,038,875
Tranche B, 11.01%, 3/27/08 1,3 8,000,000 8,320,832
- --------------------------------------------------------------------------------------------------------------
DynCorp International LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.813%-7.438%, 2/1/11 1,3 18,887,500 19,084,252
- --------------------------------------------------------------------------------------------------------------
Federal Information Technology Systems, Inc., Sr. Sec. Credit Facilities
Term Loan, 7.26%-7.48%, 4/1/11 1,3 5,952,512 6,019,479
- --------------------------------------------------------------------------------------------------------------
Gencorp, Inc., Sr. Sec. Credit Facilities Prefunded Letter of Credit
Term Loan, 7.82%, 12/6/09 1 5,744,670 5,805,707
- --------------------------------------------------------------------------------------------------------------
Gencorp, Inc., Sr. Sec. Credit Facilities Term Loan, 6.86%-7.66%, 12/6/09 1 9,772,811 9,876,647
- --------------------------------------------------------------------------------------------------------------
IAP Worldwide Services, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.625%, 12/30/12 1 20,000,000 20,237,500
- --------------------------------------------------------------------------------------------------------------
IAP Worldwide Services, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 12.625%, 6/30/13 1 8,000,000 8,200,000
- --------------------------------------------------------------------------------------------------------------
Mid-Western Aircraft Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.85%, 12/31/11 1 4,975,000 5,048,073
- --------------------------------------------------------------------------------------------------------------
Northwest Airlines, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 9.74%, 11/23/09 1,4 15,000,000 15,176,790
- --------------------------------------------------------------------------------------------------------------
United Airlines, Inc., Sr. Sec. Credit Facilities Term Loan,
Debtor in Possession, 8.62%, 3/31/06 1,3 15,553,891 15,680,267
- --------------------------------------------------------------------------------------------------------------
Wyle Laboratories, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.02%, 1/28/11 1,3 4,466,250 4,537,433
- --------------------------------------------------------------------------------------------------------------
Wyle Laboratories, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 10.77%, 7/28/11 1,3 2,000,000 2,043,126
--------------
153,655,400
- --------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS--3.1%
Acoustical Material Services, Inc., Sr. Sec. Credit Facilities Term Loan,
7.28%-7.32%, 4/13/12 1,3 13,242,785 13,375,212
- --------------------------------------------------------------------------------------------------------------
CHI Overhead Doors, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.95%-9.863%, 4/19/10 1,3 4,372,905 4,422,100
- --------------------------------------------------------------------------------------------------------------
Custom Building Products, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 6.72%-6.777%, 10/20/11 1,3 7,599,873 7,652,122
- --------------------------------------------------------------------------------------------------------------
Custom Building Products, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 9.527%, 4/20/12 1,3 7,000,000 6,954,066
- --------------------------------------------------------------------------------------------------------------
Formica Corp. (Canada), Sr. Sec. Credit Facilities
Term Loan, 9.291%-9.51%, 6/15/10 1,3 1,782,767 1,791,680
- --------------------------------------------------------------------------------------------------------------
Formica Corp. (Spain), Sr. Sec. Credit Facilities
Term Loan, 9.291%-9.51%, 6/15/10 1,3 4,320,081 4,341,681
- --------------------------------------------------------------------------------------------------------------
Formica Corp. (UK), Sr. Sec. Credit Facilities
Term Loan, 9.291%-9.51%, 6/15/10 1,3 2,209,309 2,220,356
24 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS Continued
Formica Corp., Sr. Sec. Credit Facilities Term Loan, 9.51%, 6/15/10 1,3 $ 6,204,502 $ 6,235,524
- --------------------------------------------------------------------------------------------------------------
MAAX, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.40%-7.64%, 6/4/11 1,3 8,435,660 8,182,590
- --------------------------------------------------------------------------------------------------------------
PGT Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A1, 7.38%-7.56%, 1/29/10 1,3 11,401,821 11,430,325
- --------------------------------------------------------------------------------------------------------------
Professional Paint, Inc., Sr. Sec. Credit Facilities
Term Loan, 7.25%-7.313%, 9/30/11 1,3 6,185,064 6,231,454
- --------------------------------------------------------------------------------------------------------------
Quality Home Brands, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.13%-7.28%, 11/4/11 1 4,724,342 4,753,869
- --------------------------------------------------------------------------------------------------------------
United Subcontractors, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 7.70%, 12/27/12 1 15,000,000 15,037,500
--------------
92,628,479
- --------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--6.0%
Allied Security, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.28%, 6/30/10 1,3 10,943,108 11,079,897
- --------------------------------------------------------------------------------------------------------------
Coinmach Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 1.25%-7.063%, 12/22/12 1 7,000,001 7,110,830
- --------------------------------------------------------------------------------------------------------------
Headwaters, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 6.86%, 4/30/11 1 14,430,273 14,562,555
- --------------------------------------------------------------------------------------------------------------
Hertz Corp. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.65%, 12/21/12 1 19,966,667 20,239,831
- --------------------------------------------------------------------------------------------------------------
Hertz Corp. (The), Sr. Sec. Credit Facilities Term Loan,
Delayed Draw:
12/21/12 1,2 2,000,000 2,030,682
1.11%, 12/21/12 1 9,255,556 9,397,545
- --------------------------------------------------------------------------------------------------------------
NES Rentals Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 10.469%-10.473%, 8/13/10 1,3 13,807,531 14,040,533
- --------------------------------------------------------------------------------------------------------------
Norwood Promotional Products, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche A, 10.75%, 8/16/09 1,3 16,989,817 17,074,766
- --------------------------------------------------------------------------------------------------------------
Outsourcing Solutions, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 9.068%, 5/23/12 1,3 10,307,778 10,256,239
- --------------------------------------------------------------------------------------------------------------
Protection One, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.38%-7.56%, 4/18/11 1,3 6,547,018 6,616,581
- --------------------------------------------------------------------------------------------------------------
Safety-Kleen Systems, Inc., Sr. Sec. Credit Facilities Prefunded Letter of
Credit Term Loan, 11.419%, 4/6/11 1,3 4,000,000 4,105,000
- --------------------------------------------------------------------------------------------------------------
Safety-Kleen Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
11.33%-11.56%, 4/6/11 1,3 5,955,000 6,111,319
- --------------------------------------------------------------------------------------------------------------
Synagro Technologies, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.81%, 4/29/12 1,3 8,571,428 8,614,286
- --------------------------------------------------------------------------------------------------------------
Synagro Technologies, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 6.75%, 4/29/12 1,3 1,428,572 1,432,143
25 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES Continued
TransFirst Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche A, 7.563%, 6/16/10 1,3 $ 5,228,927 $ 5,274,680
- --------------------------------------------------------------------------------------------------------------
TransFirst Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche B, 7.563%, 6/16/10 1,3 1,936,276 1,941,116
- --------------------------------------------------------------------------------------------------------------
TRM Corp., Sr. Sec. Credit Facilities Term Loan, 8.47%-8.568%, 11/24/10 1,3 10,370,453 10,318,601
- --------------------------------------------------------------------------------------------------------------
U.S. Investigation Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 7.04%, 12/29/12 1,3 7,000,000 7,048,125
- --------------------------------------------------------------------------------------------------------------
U.S. Investigation Services, Inc., Sr. Sec. Credit Facilities
Term Loan, 7%, 10/21/12 1 12,967,500 13,056,652
- --------------------------------------------------------------------------------------------------------------
Workflow Management, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.66%, 10/17/10 1,3 12,000,000 12,030,000
--------------
182,341,381
- --------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.8%
Rhodes Homes, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.75%, 11/18/10 1 2,437,500 2,458,828
- --------------------------------------------------------------------------------------------------------------
SunCal Master I Cos., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.78%, 1/25/10 1 10,500,000 10,526,250
- --------------------------------------------------------------------------------------------------------------
Walter Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.054%-6.527%, 10/3/12 1,3 9,974,999 10,115,279
--------------
23,100,357
- --------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--5.2%
Amsted Industries, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.885%-7.13%, 8/19/10 1,3 6,032,089 6,125,085
- --------------------------------------------------------------------------------------------------------------
Axia, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.87%, 12/20/12 1,3 10,000,000 10,025,000
- --------------------------------------------------------------------------------------------------------------
Blount International, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.885%-8.25%, 8/9/10 1 9,383,890 9,481,642
- --------------------------------------------------------------------------------------------------------------
Cellnet Technology, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 7.53%, 4/26/12 1 14,925,000 15,148,875
- --------------------------------------------------------------------------------------------------------------
Communications & Power Industries, Inc., Sr. Sec. Credit Facilities
Term Loan, 6.72%, 7/23/10 1 6,850,000 6,915,644
- --------------------------------------------------------------------------------------------------------------
Hillman Group, Inc. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.688%-7.813%, 3/31/11 1,3 16,324,220 16,533,383
- --------------------------------------------------------------------------------------------------------------
Invensys plc, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.791%, 9/5/09 1,3 4,533,856 4,590,529
- --------------------------------------------------------------------------------------------------------------
Joan Fabrics Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 8.781%, 8/28/06 1,3 278,358 226,166
- --------------------------------------------------------------------------------------------------------------
Mueller Group, Inc. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.466%-6.918%, 10/3/12 1 17,954,999 18,190,658
- --------------------------------------------------------------------------------------------------------------
PP Acquisition Corp., Sr. Sec. Credit Facilities Term Loan, 7.53%, 11/12/11 1 13,677,265 13,614,583
26 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES Continued
Roller Bearing Co. of America, Inc., Sr. Sec. Credit Facilities
Term Loan, 7.135%, 7/1/11 1,3 $18,641,850 $ 18,781,664
- --------------------------------------------------------------------------------------------------------------
Sensus Metering System, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B1, 6.54%-7.22%, 12/17/10 1,3 10,631,472 10,747,759
Tranche B2, 6.54%-7.22%, 12/17/10 1,3 1,374,416 1,389,450
- --------------------------------------------------------------------------------------------------------------
Tinnerman Palnut Engineered Products LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.64%-9.75%, 11/5/09 1,3 13,324,051 13,190,811
- --------------------------------------------------------------------------------------------------------------
TriMas Corp., Sr. Sec. Credit Facilities Revolving Credit Loan:
7.938%-8%, 12/31/07 1,3 1,333,333 1,300,000
8.03%, 12/31/07 1 333,333 325,000
- --------------------------------------------------------------------------------------------------------------
TriMas Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 8.375%, 12/31/09 1,3 11,704,280 11,806,693
Tranche B, 8.375%, 12/31/09 1 29,619 29,879
--------------
158,422,821
- --------------------------------------------------------------------------------------------------------------
MACHINERY--0.9%
Babcock & Wilcox Co., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 12/30/10 1,2 16,500,000 16,582,500
- --------------------------------------------------------------------------------------------------------------
Gleason Corp., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 6.894%-7.07%, 7/31/11 1,3 11,200,152 11,340,154
- --------------------------------------------------------------------------------------------------------------
Gleason Corp., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 10.04%, 1/31/12 1,3 995,000 1,012,413
--------------
28,935,067
- --------------------------------------------------------------------------------------------------------------
MARINE--0.5%
Great Lakes Dredge & Dock Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.77%-8.24%, 12/22/10 1,3 14,936,106 15,160,148
- --------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--4.8%
- --------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--0.4%
Aspect Software, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 6.563%, 9/22/10 1,3 13,000,000 13,121,875
- --------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.7%
Amkor Technology, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, Tranche B, 8.88%, 10/27/10 1,3 10,000,000 10,365,630
- --------------------------------------------------------------------------------------------------------------
Viasystems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 8.83%, 9/30/09 1,3 9,895,037 9,969,251
--------------
20,334,881
- --------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--2.3%
DoubleClick, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.79%-8.34%, 6/14/12 1 29,445,000 29,886,675
27 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES Continued
Infor Global Solutions (Luxembourg), Sr. Sec. Credit Facilities 2nd Lien
Term Loan:
11.73%-11.89%, 3/23/12 1 $ 750,000 $ 768,750
12.082%, 3/23/12 1,3 750,000 768,750
- --------------------------------------------------------------------------------------------------------------
Infor Global Solutions (Luxembourg), Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.73%-7.89%, 3/31/11 1 2,693,250 2,699,983
Tranche B, 8.137%, 3/31/11 1,3 1,350,000 1,353,375
- --------------------------------------------------------------------------------------------------------------
Infor Global Solutions, Sr. Sec. Credit Facilities 1st Lien Term Loan:
Tranche B, 7.73%-7.89%, 4/16/11 1 3,291,750 3,299,979
Tranche B, 8.137%, 4/16/11 1,3 1,650,000 1,654,125
- --------------------------------------------------------------------------------------------------------------
Open Solutions, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 0.50%, 3/14/11 1,3 13,500,000 13,635,000
- --------------------------------------------------------------------------------------------------------------
Open Solutions, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 0.50%, 9/14/11 1,3 6,500,000 6,609,688
- --------------------------------------------------------------------------------------------------------------
SS&C Technologies, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.027%-7.03%, 11/4/12 1,3 8,000,000 8,092,504
--------------
68,768,829
- --------------------------------------------------------------------------------------------------------------
IT SERVICES--1.1%
Sungard Data Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.81%, 1/22/13 1 24,825,100 25,109,546
- --------------------------------------------------------------------------------------------------------------
Vertafore, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Delayed Draw, 1/5/12 1,2 888,889 900,000
- --------------------------------------------------------------------------------------------------------------
Vertafore, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.068%, 1/5/12 1 7,111,111 7,146,667
--------------
33,156,213
- --------------------------------------------------------------------------------------------------------------
SOFTWARE--0.3%
Corel Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.76%, 1/27/10 1,3 9,094,391 9,139,863
- --------------------------------------------------------------------------------------------------------------
MATERIALS--7.5%
- --------------------------------------------------------------------------------------------------------------
CHEMICALS--4.9%
Bassell NV, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 6.906%, 9/15/13 1 2,500,000 2,541,408
Tranche C, 7.668%, 9/15/14 1 2,500,000 2,541,408
- --------------------------------------------------------------------------------------------------------------
Brenntag AG, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 6.92%, 12/31/13 1 15,000,001 15,240,736
- --------------------------------------------------------------------------------------------------------------
Brenntag AG, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 10.923%, 6/30/15 1 3,000,000 3,091,500
- --------------------------------------------------------------------------------------------------------------
Celanese Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B Add-On, 6.527%, 4/6/11 1 11,522,288 11,659,115
- --------------------------------------------------------------------------------------------------------------
Cognis Deutschland GmbH & Co. KG, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, Tranche C, 9.308%, 11/13/13 1 6,260,000 6,418,065
28 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
CHEMICALS Continued
Cognis Deutschland GmbH & Co. KG, Sr. Sec. Credit Facilities Term Loan:
Tranche B1, 7.42%, 5/12/12 1 $ 3,778,582 $ 3,812,378
Tranche B4, 7.42%, 4/21/12 1 1,361,808 1,373,988
Tranche C1, 7.92%, 5/12/13 1 8,807,397 8,920,061
- --------------------------------------------------------------------------------------------------------------
Compass Minerals International, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.02%-6.08%, 12/31/12 1 8,000,000 8,056,248
- --------------------------------------------------------------------------------------------------------------
Huntsman International LLC, Sr. Sec. Credit Facilities
Term Loan, 6.233%, 8/16/12 1 33,492,336 33,712,146
- --------------------------------------------------------------------------------------------------------------
Ineos Group Ltd., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 10/7/13 1,2 9,500,000 9,642,500
Tranche C, 10/7/14 1,2 9,500,000 9,642,500
- --------------------------------------------------------------------------------------------------------------
Invista, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B1, 6.375%, 4/27/11 1 3,962,580 4,010,459
Tranche B2, 6.375%, 4/27/11 1 3,122,145 3,159,870
- --------------------------------------------------------------------------------------------------------------
Solutia, Inc., Sr. Sec. Credit Facilities Term Loan, Debtor in Possession,
Tranche B, 8.78%, 6/19/06 1,3 15,000,000 15,262,500
- --------------------------------------------------------------------------------------------------------------
Wellman, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 8.25%, 2/10/09 1 10,000,000 10,150,000
--------------
149,234,882
- --------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.1%
Builders FirstSource, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.03%, 8/11/11 1,3 1,955,556 1,968,593
- --------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING--0.5%
Graham Packaging Co. LP, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 6.75%-6.938%, 9/15/11 1 8,424,950 8,538,535
Tranche C, 8.813%, 4/7/12 1,3 5,500,000 5,635,207
--------------
14,173,742
- --------------------------------------------------------------------------------------------------------------
METALS & MINING--1.4%
International Mill Service, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 7.28%, 12/31/10 1,3 9,965,025 10,089,587
- --------------------------------------------------------------------------------------------------------------
Murray Energy Corp., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.56%, 1/31/10 1 17,383,750 17,438,074
- --------------------------------------------------------------------------------------------------------------
Trout Coal Holdings LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.33%-7.57%, 3/14/11 1 15,163,982 14,983,910
--------------
42,511,571
- --------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.6%
Newpage Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.563%, 5/2/11 1 17,910,000 18,133,875
- --------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--7.1%
- --------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--3.8%
Alaska Communications Systems Group, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche B, 6.527%, 2/1/12 1 10,000,000 10,113,750
29 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES Continued
Conversent Communications LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.40%-8.56%, 5/1/11 1 $15,100,000 $ 15,147,189
- --------------------------------------------------------------------------------------------------------------
Hughes Network Systems, Inc., Sr. Sec. Credit Facilities
Term Loan, 8.375%, 4/22/12 1,3 10,000,000 10,050,000
- --------------------------------------------------------------------------------------------------------------
Level 3 Communications, Inc., Sr. Sec. Credit Facilities
Term Loan, 11.264%, 12/1/11 1 30,074,000 31,983,699
- --------------------------------------------------------------------------------------------------------------
Ntelos, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 5.12%-7.07%, 8/24/11 1 14,963,382 15,120,498
- --------------------------------------------------------------------------------------------------------------
Qwest Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 9.22%, 6/30/07 1 10,100,000 10,354,399
- --------------------------------------------------------------------------------------------------------------
Time Warner Telecom, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.92%-7.11%, 11/30/10 1 10,000,000 10,170,830
- --------------------------------------------------------------------------------------------------------------
WestCom Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan:
Tranche B, 7.359%, 12/17/10 1,3 131,945 132,193
Tranche B, 7.499%-7.541%, 12/17/10 1 4,774,772 4,783,725
- --------------------------------------------------------------------------------------------------------------
XO Communications, Inc., Sr. Sec. Credit Facilities
Term Loan, 10.60%, 7/15/09 1,3 6,985,455 6,985,455
--------------
114,841,738
- --------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--3.3%
AAT Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.16%, 7/11/12 1 20,000,000 20,187,500
- --------------------------------------------------------------------------------------------------------------
Cincinnati Bell, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.89%-6.06%, 8/31/12 1 11,970,000 12,069,124
- --------------------------------------------------------------------------------------------------------------
Intelsat Ltd., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 3.313%, 7/28/11 1 10,000,000 10,109,380
- --------------------------------------------------------------------------------------------------------------
Leap Wireless International, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.027%, 12/1/10 1 19,349,048 19,603,005
- --------------------------------------------------------------------------------------------------------------
MetroPCS, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 9.50%, 5/31/12 1 17,500,000 18,083,328
- --------------------------------------------------------------------------------------------------------------
PanAmSat Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.438%-6.489%, 8/20/11 1 19,975,114 20,234,790
--------------
100,287,127
- --------------------------------------------------------------------------------------------------------------
UTILITIES--6.9%
- --------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--6.3%
Boston Generating LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.777%, 10/11/11 1 15,232,314 15,557,905
- --------------------------------------------------------------------------------------------------------------
Boston Generating LLC, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 10.827%, 10/11/11 1 3,200,000 3,368,000
- --------------------------------------------------------------------------------------------------------------
Calpine Construction Finance Co. LP, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 10.385%, 8/26/09 1 18,754,165 19,879,415
- --------------------------------------------------------------------------------------------------------------
Guadalupe Power Plant, Inc., Sr. Sec. Credit Facilities Term Loan:
6.313%, 12/31/09 1,3 9,698,636 9,310,691
7.89%, 12/31/09 1 23,459 22,521
30 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES Continued
KGen Partners LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.152%, 9/1/11 1 $26,313,687 $ 26,313,687
- --------------------------------------------------------------------------------------------------------------
La Paloma Generating Co. LLC, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 8.027%, 8/16/13 1 24,500,000 24,890,481
- --------------------------------------------------------------------------------------------------------------
NRG Energy, Inc., Sr. Sec. Credit Facilities Term Loan, 6.57%, 2/5/13 1 40,000,000 40,445,840
- --------------------------------------------------------------------------------------------------------------
Quanta Services, Inc., Sr. Sec. Credit Facilities Term Loan, 7.50%, 6/19/08 1 15,630,505 15,806,348
- --------------------------------------------------------------------------------------------------------------
Riverside Energy Center LLC/Rocky Mountain Energy Center LLC,
Sr. Sec. Credit Facilities Term Loan:
6/24/11 1,2 5,000,000 5,050,000
8.918%, 6/24/11 1,3 22,938,841 23,168,229
8.918%, 6/24/11 1 7,605,368 7,681,421
--------------
191,494,538
- --------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--0.6%
Calpine Generating Co. LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.135%, 4/1/09 1 17,500,000 18,205,478
--------------
Total Corporate Loans (Cost $3,236,781,406) 3,252,555,241
- --------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--4.0%
- --------------------------------------------------------------------------------------------------------------
Builders FirstSource, Inc., 8.59% Sr. Sec. Nts., 2/15/12 1 13,000,000 13,357,500
- --------------------------------------------------------------------------------------------------------------
Calpine Generating Co., 8.135% Sec. Nts., Series 1, 4/1/09 1 3,337,000 3,470,466
- --------------------------------------------------------------------------------------------------------------
CCO Holdings LLC/CCO Capital Corp., 8.616% Sr. Unsec. Nts., 12/15/10 1 10,000,000 9,825,000
- --------------------------------------------------------------------------------------------------------------
FelCor Lodging LP, 8.83% Sr. Nts., 6/1/11 1,3 12,000,000 12,540,000
- --------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.243% Nts., 5/18/06 1 10,000,000 9,961,670
- --------------------------------------------------------------------------------------------------------------
Nova Chemicals Corp., 7.561% Nts., 11/15/13 1,3 6,000,000 6,150,000
- --------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 10.777% Sr. Sec. Nts., 1/15/13 1,5 5,000,000 4,825,000
- --------------------------------------------------------------------------------------------------------------
SMART Modular Technologies, Inc., 9.885% Sr. Sec. Nts., 4/1/12 1,3 10,000,000 10,450,000
- --------------------------------------------------------------------------------------------------------------
SunGard Data Systems, Inc., 8.525% Sr. Unsec. Nts., 8/15/13 1,5 17,000,000 17,722,500
- --------------------------------------------------------------------------------------------------------------
Unova, Inc., 7% Unsec. Nts., 3/15/08 3 15,700,000 15,935,500
- --------------------------------------------------------------------------------------------------------------
XM Satellite Radio, Inc., 9.75% Sr. Sec. Nts., 5/1/09 1 14,915,000 15,194,656
--------------
Total Corporate Bonds and Notes (Cost $117,582,420) 119,432,292
UNITS
- --------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- --------------------------------------------------------------------------------------------------------------
Aladdin/OpBiz Gaming LLC Wts., Exp. 12/31/49 6 (Cost $0) 32,265 --
31 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--0.4%
- --------------------------------------------------------------------------------------------------------------
Repurchase agreement (Principal Amount/Value $13,137,000, with a maturity
value of $13,138,584) with DB Alex Brown LLC, 4.34%, dated 1/31/06, to be
repurchased at $13,138,584 on 2/1/06, collateralized by U.S. Treasury Bonds,
2.375%, 8/15/06 with a value of $13,406,146 (Cost $13,137,000) $13,137,000 $ 13,137,000
- ---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $3,367,500,826) 111.9% 3,385,124,533
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (11.9) (359,967,092)
--------------------------------
NET ASSETS 100.0% $3,025,157,441
================================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Represents the current interest rate for a variable or increasing rate
security.
2. This Senior Loan will settle after February 28, 2006, at which time the
interest rate will be determined.
3. Illiquid security. The aggregate value of illiquid securities as of January
31, 2006 was $1,157,806,029, which represents 38.27% of the Fund's net assets.
See Note 6 of Notes to Financial Statements.
4. Issue is in default. Non-income producing. See Note 1 of Notes to
Financial Statements.
5. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $22,547,500 or 0.75% of the Fund's net
assets as of January 31, 2006.
6. Non-income producing security.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
January 31, 2006
- ------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------
Investments, at value (cost $3,367,500,826)--see accompanying statement of
investments $ 3,385,124,533
- ------------------------------------------------------------------------------------------------
Cash 9,939,028
- ------------------------------------------------------------------------------------------------
Unrealized appreciation on unfunded loan commitments 35,013
- ------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 82,453,087
Interest, dividends and principal paydowns 24,618,641
Other 18,113
----------------
Total assets 3,502,188,415
- ------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------
Unrealized depreciation on swap contracts 33,406
- ------------------------------------------------------------------------------------------------
Unrealized depreciation on unfunded loan commitments 96,387
- ------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 293,855,926
Shares of beneficial interest redeemed 181,009,411
Distribution and service plan fees 663,779
Dividends 584,627
Shareholder communications 212,149
Transfer and shareholder servicing agent fees 191,798
Trustees' compensation 6,795
Other 376,696
----------------
Total liabilities 477,030,974
- ------------------------------------------------------------------------------------------------
NET ASSETS $ 3,025,157,441
================
- ------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 316,457
- ------------------------------------------------------------------------------------------------
Additional paid-in capital 3,057,570,416
- ------------------------------------------------------------------------------------------------
Accumulated net investment loss (43,520)
- ------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (50,214,838)
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 17,528,926
- ------------------------------------------------------------------------------------------------
NET ASSETS $ 3,025,157,441
================
33 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,215,918,969 and 127,273,434 shares of beneficial interest outstanding) $9.55
Maximum offering price per share (net asset value plus sales charge of 3.50% of
offering price) $9.90
- -----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable early withdrawal charge)
and offering price per share (based on net assets of $328,035,403 and
34,323,632 shares of beneficial interest outstanding) $9.56
- -----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable early withdrawal charge)
and offering price per share (based on net assets of $1,481,202,066 and
154,859,836 shares of beneficial interest outstanding) $9.56
- -----------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $1,003 and 105 shares of beneficial interest outstanding) $9.55
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2006
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest (net of foreign withholding taxes of $11,725) $ 109,307,402
- ------------------------------------------------------------------------------------------------
Other income 1,108,327
- ------------------------------------------------------------------------------------------------
Dividends 2,865
----------------
Total investment income 110,418,594
- ------------------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------------------
Management fees 9,427,627
- ------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,453,298
Class B 1,302,106
Class C 5,530,148
- ------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 419,615
Class B 227,099
Class C 548,757
- ------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 99,139
Class B 62,728
Class C 131,793
- ------------------------------------------------------------------------------------------------
Interest expense 507,427
- ------------------------------------------------------------------------------------------------
Custodian fees and expenses 340,902
- ------------------------------------------------------------------------------------------------
Trustees' compensation 23,522
- ------------------------------------------------------------------------------------------------
Administration service fees 750
- ------------------------------------------------------------------------------------------------
Other 626,725
----------------
Total expenses 20,701,636
Less waivers and reimbursements of expenses (2,733,707)
----------------
Net expenses 17,967,929
- ------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 92,450,665
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ------------------------------------------------------------------------------------------------
Net realized loss on:
Investments (1,078,636)
Swap contracts (8,342)
----------------
Net realized loss (1,086,978)
- -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 5,561,168
Swap contracts (33,406)
Unfunded loan commitments (81,852)
----------------
Net change in unrealized appreciation 5,445,910
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 96,809,597
================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2006 JULY 31,
(UNAUDITED) 2005
- ------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------
Net investment income $ 92,450,665 $ 114,764,840
- ------------------------------------------------------------------------------------------------
Net realized loss (1,086,978) (10,412,104)
- ------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 5,445,910 443,530
----------------------------------
Net increase in net assets resulting from operations 96,809,597 104,796,266
- ------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (38,181,603) (43,089,683)
Class B (10,238,575) (16,346,208)
Class C (44,029,789) (53,708,395)
Class Y (13) --
- ------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 175,512,396 666,081,728
Class B (16,848,165) 68,117,677
Class C 128,393,188 739,099,855
Class Y 1,000 --
- ------------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------
Total increase 291,418,036 1,464,951,240
- ------------------------------------------------------------------------------------------------
Beginning of period 2,733,739,405 1,268,788,165
----------------------------------
End of period (including accumulated net investment loss
of $43,520 and $44,205, respectively) $ 3,025,157,441 $ 2,733,739,405
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF CASH FLOWS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2006
- ------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
- ------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 96,809,597
- ------------------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from operations
to net cash used in operating activities:
Purchase of investment securities (5,877,102,519)
Proceeds from disposition of investment securities 5,648,465,105
Premium amortization 1,592,420
Discount accretion (239,191)
Net realized loss on investments 1,086,978
Net change in unrealized appreciation on investments, swap contracts
and unfunded loan commitments (5,445,910)
Increase in interest receivable (6,377,190)
Increase in other assets (11,598)
Decrease in payable for accrued expenses (192,651)
----------------
Net cash used in operating activities (141,414,959)
- ------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
- ------------------------------------------------------------------------------------------------
Proceeds from bank borrowing 603,300,000
Payments on bank borrowing (603,300,000)
Proceeds from shares sold 636,548,377
Payment on shares redeemed (457,207,636)
Cash distributions paid (31,840,987)
----------------
Net cash provided by financing activities 147,499,754
- ------------------------------------------------------------------------------------------------
Net increase in cash 6,084,795
- ------------------------------------------------------------------------------------------------
Cash, beginning balance 3,854,233
----------------
Cash, ending balance $ 9,939,028
================
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $61,358,189.
Cash paid for interest on bank borrowings--$507,427.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER SENIOR FLOATING RATE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2006 JULY 31,
CLASS A (UNAUDITED) 2005 2004 2003 2002 2001
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.54 $ 9.56 $ 9.24 $ 9.03 $ 9.51 $ 9.96
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .31 1 .53 1 .49 .55 .54 .80
Net realized and unrealized gain (loss) .01 (.02) .30 .14 (.50) (.46)
----------------------------------------------------------------------------
Total from investment operations .32 .51 .79 .69 .04 .34
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.31) (.53) (.47) (.48) (.52) (.79)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.55 $ 9.54 $ 9.56 $ 9.24 $ 9.03 $ 9.51
============================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 3.42% 5.45% 8.78% 7.91% 0.44% 3.52%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,215,919 $1,038,746 $376,001 $44,028 $33,905 $44,985
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,169,902 $ 776,029 $146,224 $35,298 $41,195 $41,457
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 6.47% 5.63% 5.56% 6.23% 5.84% 8.11%
Total expenses 1.06% 1.09% 1.19% 1.39% 1.42% 1.20%
Expenses after payments and waivers and
reduction to custodian expenses 0.88% 0.89% 0.99% 1.19% 1.22% 1.00%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 50% 114% 155% 121% 4 92% 47%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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.
4. The previously reported portfolio turnover rate of 9% has been restated based
upon a calculation methodology that is consistent with the other periods
presented herein. This methodology includes certain loans that were previously
considered short-term, and therefore excluded from the calculation, due to an
interest rate reset feature.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER SENIOR FLOATING RATE FUND
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2006 JULY 31,
CLASS B (UNAUDITED) 2005 2004 2003 2002 2001
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.54 $ 9.56 $ 9.24 $ 9.04 $ 9.51 $ 9.97
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .28 1 .48 1 .46 .52 .49 .76
Net realized and unrealized gain (loss) .03 (.02) .28 .11 (.49) (.47)
--------------------------------------------------------------------------
Total from investment operations .31 .46 .74 .63 -- .29
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.29) (.48) (.42) (.43) (.47) (.75)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.56 $ 9.54 $ 9.56 $ 9.24 $ 9.04 $ 9.51
==========================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 3.23% 4.86% 8.18% 7.21% 0.05% 2.96%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $328,035 $344,337 $277,043 $157,057 $176,760 $220,328
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $344,526 $327,996 $201,260 $163,238 $206,869 $177,025
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.90% 5.06% 5.04% 5.70% 5.33% 7.56%
Total expenses 1.65% 1.66% 1.76% 1.93% 1.92% 1.64%
Expenses after payments and waivers and
reduction to custodian expenses 1.46% 1.46% 1.56% 1.73% 1.72% 1.44%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 50% 114% 155% 121% 4 92% 47%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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.
4. The previously reported portfolio turnover rate of 9% has been restated based
upon a calculation methodology that is consistent with the other periods
presented herein. This methodology includes certain loans that were previously
considered short-term, and therefore excluded from the calculation, due to an
interest rate reset feature.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39 | OPPENHEIMER SENIOR FLOATING RATE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2006 JULY 31,
CLASS C (UNAUDITED) 2005 2004 2003 2002 2001
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.55 $ 9.57 $ 9.25 $ 9.04 $ 9.51 $ 9.97
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .29 1 .48 1 .45 .52 .50 .76
Net realized and unrealized gain (loss) .01 (.02) .29 .12 (.50) (.47)
--------------------------------------------------------------------------
Total from investment operations .30 .46 .74 .64 -- .29
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.29) (.48) (.42) (.43) (.47) (.75)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.56 $ 9.55 $ 9.57 $ 9.25 $ 9.04 $ 9.51
==========================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 3.16% 4.92% 8.21% 7.35% 0.05% 2.96%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,481,202 $1,350,656 $615,744 $207,433 $236,111 $ 350,126
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,463,840 $1,065,783 $346,347 $210,987 $303,123 $ 323,725
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 5.97% 5.11% 5.05% 5.73% 5.37% 7.60%
Total expenses 1.57% 1.60% 1.71% 1.91% 1.92% 1.65%
Expenses after payments and waivers and
reduction to custodian expenses 1.39% 1.40% 1.51% 1.71% 1.72% 1.45%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 50% 114% 155% 121% 4 92% 47%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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.
4. The previously reported portfolio turnover rate of 9% has been restated based
upon a calculation methodology that is consistent with the other periods
presented herein. This methodology includes certain loans that were previously
considered short-term, and therefore excluded from the calculation, due to an
interest rate reset feature.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
40 | OPPENHEIMER SENIOR FLOATING RATE FUND
PERIOD
ENDED
JANUARY 31, 2006 1
CLASS Y (UNAUDITED)
- --------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.54
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .11 2
Net realized and unrealized gain .02
-----------
Total from investment operations .13
- --------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.12)
- --------------------------------------------------------------------------------
Net asset value, end of period $ 9.55
==========
- --------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 1.39%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1
- --------------------------------------------------------------------------------
Average net assets (in thousands) $ 1
- --------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 7.33%
Total expenses 0.55%
Expenses after waivers and reimbursements and
reduction to custodian expenses 0.36%
- --------------------------------------------------------------------------------
Portfolio turnover rate 50%
1. For the period from November 28, 2005 (inception of offering) to January 31,
2006.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. 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.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, Class C and Class Y 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 (EWC). Class Y
shares are sold to certain institutional investors without either a front-end
sales charge or a EWC, however, the institutional investor may impose charges on
those accounts. 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. No such plan has been adopted for Class Y shares. Class B
shares will automatically convert to Class A shares 72 months after the end of
the month in which you purchase them.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. 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 may be
valued primarily using dealer-supplied valuations or a portfolio pricing
service authorized by the Board of Trustees. Securities listed or traded on
National Stock Exchanges or other domestic exchanges are valued based on the
last sale price of the security traded on that exchange prior to the time when
the Fund's assets are valued. Securities traded on NASDAQ are valued based on
the closing price provided by NASDAQ prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing "bid"
and "asked" prices, and if not, at the closing bid price. Securities traded on
foreign exchanges are valued based on the last sale price on the principal
exchange on which the security is traded, as identified by the portfolio
pricing service, prior to the time when the Fund's assets are valued. In the
absence of a sale, the security is valued at the official closing price on the
principal exchange. Corporate, government and municipal debt instruments having
a remaining maturity in excess of sixty days and all mortgage-backed securities
will be valued at the mean between the "bid" and "asked" prices. Futures
contracts traded on a commodities or futures exchange will be valued at the
final settlement price or official closing price on the principal exchange as
reported by such principal exchange at its trading session ending at, or most
recently prior to, the time when the Fund's assets are
42 | OPPENHEIMER SENIOR FLOATING RATE FUND
valued. 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).
- --------------------------------------------------------------------------------
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.
43 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
As of January 31, 2006, securities with an aggregate market value of
$3,252,555,241, representing 107.52% of the Fund's net assets were comprised of
Senior Loans, of which $1,112,730,529 representing 36.78% of the Fund's 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 January 31, 2006, securities with an
aggregate market value of $15,176,790, representing 0.50% of the Fund's net
assets, were in default.
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. The values of securities denominated in foreign currencies and
amounts related to the purchase and sale of foreign securities and foreign
investment income are translated into U.S. dollars 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. Foreign exchange rates may be valued
primarily using dealer supplied valuations or a portfolio pricing service
authorized by the Board of Trustees.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at fiscal
period end, resulting from changes in exchange rates.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires its custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral declines,
or if the seller enters an insolvency proceeding, realization of the value of
the collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
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.
44 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
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.
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.
As of January 31, 2006, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of $48,866,838 expiring by 2014.
This estimated capital loss carryforward represents carryforward as of the end
of the last fiscal year, increased for losses deferred under tax accounting
rules to the current fiscal year and is increased or decreased by capital losses
or gains realized in the first six months of the current fiscal year. As of
January 31, 2006, it is estimated that the Fund will not utilize any capital
loss carryforward to offset realized capital gains. During the year ended July
31, 2005, the Fund utilized $3,066,072 of capital loss carryforward to offset
capital gains realized in that fiscal year.
As of July 31, 2005, the Fund had available for federal income tax purposes
post-October losses of $11,011,190 and unused capital loss carryforwards as
follows:
Expiring
-------------------------------
2010 $ 10,765,372
2011 26,003,298
-------------
Total $ 36,768,670
=============
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded
45 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations
may include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts to the extent they are not
offset by positive cash balances maintained by the Fund at a rate equal to the
Federal Funds Rate. The "Reduction to custodian expenses" line item, if
applicable, represents earnings on cash balances maintained by the Fund during
the period. At January 31, 2006, the Fund had $3 of such earnings on cash
balances available to offset future custodian fees or interest expenses
incurred during the next fiscal year.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and
former trustees and officers with a limited indemnification against liabilities
arising in connection with the performance of their duties to the Fund. In the
normal course of business, the Fund may also enter into contracts that provide
general indemnifications. The Fund's maximum exposure under these arrangements
is unknown as this would be dependent on future claims that may be made against
the Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
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:
46 | OPPENHEIMER SENIOR FLOATING RATE FUND
o The Fund will make periodic Repurchase Offers, pursuant to Rule
23c-3 under the Investment Company Act of 1940 (as that rule may be
amended from time to time).
o Repurchase offers shall be made at periodic intervals of three
months between Repurchase Request Deadlines. The Deadlines will be
at the time on a regular business day (normally the last regular
business day) in the months of January, April, July and October to
be determined by the Fund's Board of Trustees.
o The Repurchase Pricing Date for a particular Repurchase Offer shall
be not more than 14 days after the Repurchase Request Deadline for
the Repurchase Offer. If that day is not a normal business day, then
the Repurchase Pricing Date will be the following regular business
day.
Each quarter, the Fund's Board will determine the number of shares that the
Fund will offer to repurchase in a particular Repurchase Offer. The Repurchase
Offer Amount will be at least 5% but not more than 25% of the total number of
shares of all classes of the Fund (in the aggregate) outstanding on the
Repurchase Request Deadline. If shareholders tender more than the Repurchase
Offer Amount for a particular Repurchase Offer, the Fund may repurchase up to
an additional 2% of the shares outstanding on the Repurchase Request Deadline.
For the six months ended January 31, 2006, the Fund extended two Repurchase
Offers:
PERCENTAGE OF AMOUNT OF
REPURCHASE OUTSTANDING SHARES SHARES THE NUMBER OF
REQUEST THE FUND OFFERED FUND OFFERED SHARES TENDERED
DEADLINES TO REPURCHASE TO REPURCHASE (ALL CLASSES)
------------------------------------------------------------------------
October 31, 2005 20% 60,858,912 19,544,730
January 31, 2006 20 63,273,202 21,224,327
The Fund is authorized to issue an unlimited number of shares of each class and
at the date of this report has registered 703,615,584 shares, par value $0.001
each. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED JANUARY 31, 2006 1 YEAR ENDED JULY 31, 2005
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------
CLASS A
Sold 35,102,008 $ 335,301,524 88,829,120 $ 850,199,762
Dividends and/or
distributions reinvested 2,576,640 24,615,032 3,041,815 29,063,026
Repurchased (19,311,721) (184,404,160) (22,302,293) (213,181,060)
--------------------------------------------------------------------
Net increase 18,366,927 $ 175,512,396 69,568,642 $ 666,081,728
====================================================================
47 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
SIX MONTHS ENDED JANUARY 31, 2006 1 YEAR ENDED JULY 31, 2005
SHARES AMOUNT SHARES AMOUNT
CLASS B
- -----------------------------------------------------------------------------------------------------
Sold 2,748,852 $ 26,257,870 12,098,323 $ 115,828,765
Dividends and/or
distributions reinvested 737,004 7,043,191 1,132,369 10,829,378
Repurchased (5,247,670) (50,149,226) (6,120,311) (58,540,466)
--------------------------------------------------------------------
Net increase (decrease) (1,761,814) $ (16,848,165) 7,110,381 $ 68,117,677
====================================================================
- -----------------------------------------------------------------------------------------------------
CLASS C
Sold 28,754,565 $ 274,987,983 92,843,309 $ 889,756,237
Dividends and/or
distributions reinvested 3,105,672 29,699,966 3,736,525 35,751,426
Repurchased (18,443,307) (176,294,761) (19,487,048) (186,407,808)
--------------------------------------------------------------------
Net increase 13,416,930 $ 128,393,188 77,092,786 $ 739,099,855
====================================================================
- -----------------------------------------------------------------------------------------------------
CLASS Y
Sold 105 $ 1,000 -- $ --
Dividends and/or
distributions reinvested -- -- -- --
Repurchased -- -- -- --
-------------------------------------------------------------------
Net increase 105 $ 1,000 -- $ --
====================================================================
1. For the six months ended January 31, 2006, for Class A, Class B and Class C
and for the period from November 28, 2005 (inception of offering) to January 31,
2006 for Class Y.
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended January 31, 2006, were as
follows:
PURCHASES SALES
-------------------------------------------------------------------
Investment securities $1,883,890,993 $1,558,498,610
- --------------------------------------------------------------------------------
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 SERVICE FEES. 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
48 | OPPENHEIMER SENIOR FLOATING RATE FUND
account fee. For the six months ended January 31, 2006, the Fund paid $1,196,611
to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum for assets of $10 million or more. The Class Y shares are subject to the
minimum fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
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
periodically 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 periodically 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 0.75% 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% 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 January 31, 2006 for Class B and Class C shares were
$7,169,639 and $22,671,438, respectively. Fees incurred by the Fund under the
plans are detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and early withdrawal charges (EWC) 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 EWC retained by the Distributor on the redemption of shares is
shown in the following table for the period indicated.
49 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
CLASS A CLASS B CLASS C
CLASS A EARLY EARLY EARLY
FRONT-END WITHDRAWAL WITHDRAWAL WITHDRAWAL
SALES CHARGES CHARGES CHARGES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
January 31, 2006 $398,242 $10,721 $135,528 $178,187
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. Effective January 1, 2006, the Manager
reduced its voluntary waiver of management fees from 0.20% of average annual
net assets to 0.10% of average annual net assets. As a result of this
agreement, the Fund was reimbursed $2,733,707 for the six months ended January
31, 2006. The Manager may amend or terminate this voluntary waiver 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. This
undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
5. CREDIT DEFAULT SWAP CONTRACTS
The Fund may enter into a credit default swap contract to seek to maintain a
total return on a particular investment or portion of its portfolio, or for
other non-speculative purposes. Credit default swap contracts are subject to
credit risks (for example if the counterparty fails to meet its obligations).
As a purchaser of a credit default swap contract, the Fund pays a periodic
interest fee on the notional amount to the counterparty. This interest fee is
accrued daily as a component of unrealized appreciation (depreciation) and is
recorded as realized loss upon payment. Upon occurrence of a specific credit
event with respect to the underlying referenced debt obligation, the Fund is
obligated to deliver that security to the counterparty in exchange for receipt
of the notional amount from the counterparty. The difference between the value
of the security delivered and the notional amount received is recorded as
realized gain. Information regarding such credit default swaps as of January 31,
2006 is as follows:
NOTIONAL ANNUAL
AMOUNT INTEREST
REFERENCED RECEIVED BY RATE PAID
DEBT THE FUND UPON BY THE UNREALIZED
COUNTERPARTY OBLIGATION CREDIT EVENT FUND DEPRECIATION
- ----------------------------------------------------------------------------------------------------------
Credit Suisse First The Neiman Marcus Group,
Boston, Inc. (Nassau Branch) Inc. Secured Loan $2,000,000 1.95% $ 33,406
As a seller of a credit default swap contract, the Fund receives a
periodic interest fee on the notional amount from the counterparty. This
interest fee is accrued daily as a component of unrealized appreciation
(depreciation) and is recorded as realized gain upon receipt. Upon occurrence of
a specific credit event with respect to the underlying referenced debt
obligation, the Fund receives that security from the counterparty in exchange
for payment of the notional amount to the counterparty. The difference
50 | OPPENHEIMER SENIOR FLOATING RATE FUND
between the value of the security received and the notional amount paid is
recorded as realized loss. As of January 31, 2006, there were no such credit
default swaps outstanding.
- --------------------------------------------------------------------------------
6. ILLIQUID SECURITIES
As of January 31, 2006, 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.
- --------------------------------------------------------------------------------
7. LOAN COMMITMENTS
Pursuant to the terms of certain credit agreements, the Fund has unfunded loan
commitments of $45,025,913 at January 31, 2006. The Fund generally will
maintain with its custodian, liquid investments having an aggregate value at
least equal to the amount of unfunded loan commitments. Commitments of
$30,651,153 are contractually obligated to fund by a specified date and have
been included as Corporate Loans in the Statement of Investments.
The following 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. These commitments have been excluded from the Statement
of Investments. The unrealized appreciation/depreciation on these commitments is
recorded as an asset/liability on the Statement of Assets and Liabilities.
COMMITMENT
INTEREST TERMINATION UNFUNDED UNREALIZED UNREALIZED
RATE DATES AMOUNT APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
Delphi Corp., Sr. Sec. Credit
Facilities Revolving Credit
Loan 5.00% 6/18/09 $ 758,003 $34,596 $ --
- -----------------------------------------------------------------------------------------------------------------
Federal Mogul Corp., Sr.
Sec. Credit Facilities Pre-
Petition Revolving Credit
Loan, Tranche B 1.75 12/30/06 666,757 417 5,156
- -----------------------------------------------------------------------------------------------------------------
Pinnacle Foods Group, Inc.,
Sr. Sec. Credit Facilities
Revolving Credit Loan 0.67 11/25/09 9,700,000 -- 42,113
- -----------------------------------------------------------------------------------------------------------------
TriMas Corp., Sr. Sec.
Credit Facilities Revolving
Credit Loan 3.50 12/31/07 3,250,000 -- 49,118
------------------------------------------------
$ 14,374,760 $35,013 $ 96,387
================================================
- --------------------------------------------------------------------------------
8. BORROWINGS
The Fund can borrow money in an amount up to 33 1/3% of its total assets (after
counting the assets purchased with the amount borrowed). The Fund may borrow if
necessary to obtain short-term credit to allow it to repurchase shares during
Repurchase Offers, to manage cash flows, and to fund additional purchase
commitments under Senior Loans.
51 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
8. BORROWINGS Continued
The Fund may also borrow to acquire additional investments (a technique
known as "leverage"). Effective January 21, 2005, the Fund entered into a
Revolving Credit and Security Agreement (the "Agreement") with a conduit lender
and a bank which enables it to participate with certain other Oppenheimer funds
in a committed, secured borrowing facility that permits borrowings of up to $800
million, collectively. To secure the loan, the Fund pledges investment
securities in accordance with the terms of the Agreement. Interest is charged to
the Fund, based on its borrowings, at current commercial paper issuance rates.
The Fund pays additional fees of 0.30% per annum on its outstanding borrowings
to manage and administer the facility and is allocated its pro-rata share of a
0.13% per annum commitment fee for a liquidity backstop facility with respect to
the $800 million facility size.
For the six months ended January 31, 2006, the average daily loan balance
was $27,165,824 at an average daily interest rate of 3.676%. The Fund had no
borrowings outstanding at January 31, 2006. The Fund had gross borrowings and
gross loan repayments of $603,300,000 and $603,300,000 respectively, during the
six months ended January 31, 2006. The maximum amount of borrowings outstanding
at any month-end during the six months ended January 31, 2006 was $46,800,000.
The Fund paid $176,130 in fees and $507,427 in interest during the six months
ended January 31, 2006.
- --------------------------------------------------------------------------------
9. LITIGATION
A complaint was filed as a putative class action against the Manager and OFS
(and other defendants) in the U.S. District Court for the Southern District of
New York on January 10, 2005 and was amended on March 4, 2005. Seven of the
eight counts in the complaint, including claims against certain of the
Oppenheimer funds including the Fund, as nominal defendants, and against
certain present and former Directors, Trustees and officers of the funds, and
the Distributor, as defendants, were dismissed with prejudice, under a court
order dated March 10, 2006, in response to a motion to dismiss the suit that
had been filed by the defendants. The remaining count against the Adviser
Defendants alleges, among other things, that the defendants charged excessive
fees in violation of section 36(b) of the Investment Company Act of 1940. The
plaintiffs seek unspecified damages, an accounting of all fees paid, and an
award of attorneys' fees and litigation expenses.
The Adviser Defendants believe that the claims asserted in the remaining
count under this lawsuit are without merit, and intend to defend the suit
vigorously and contest any claimed liability. They believe that it is premature
to render any opinion as to the likelihood of an outcome unfavorable to them and
that no estimate can yet be made with any degree of certainty as to the amount
or range of any potential loss.
52 | OPPENHEIMER SENIOR FLOATING RATE FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS 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 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 voting record is available (i) without charge, upon
request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form
N-PX filing 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 at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
53 | OPPENHEIMER SENIOR FLOATING RATE FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Trustees (the "Board"), including a majority of the
independent Trustees, is required to determine whether to renew the Fund's
investment advisory agreement (the "Agreement"). The Investment Company Act of
1940, as amended, requires that the Board request and evaluate, and that the
Manager provide, such information as may be reasonably necessary to evaluate
the terms of the Agreement. The Board employs an independent consultant to
prepare a report that provides information, including comparative information,
that the Board requests for that purpose. In addition, the Board receives
information throughout the year regarding Fund services, fees, expenses and
performance.
The Manager and the independent consultant provided information to the
Board on the following factors: (i) the nature, quality and extent of the
Manager's services, (ii) the investment performance of the Fund and the Manager,
(iii) the fees and expenses of the Fund, including comparative expense
information, (iv) the profitability of the Manager, including an analysis of the
cost of providing services, (v) whether economies of scale are realized as the
Fund grows and whether fee levels reflect these economies of scale for Fund
investors and (vi) other benefits to the Manager from its relationship with the
Fund. Outlined below is a summary of the principal information considered by the
Board as well as the Board's conclusions.
NATURE, QUALITY, AND EXTENT OF SERVICES. The Board considered information
on the nature and extent of the services provided to the Fund and information
regarding the Manager's key personnel that provide such services. The Manager's
duties include providing the Fund with the services of the portfolio managers
and the Manager's investment team, who provide research, analysis and other
advisory services in regard to the Fund's investments; securities trading
services; oversight of third party service providers; monitoring compliance with
applicable Fund policies and procedures and adherence to the Fund's investment
restrictions. The Manager is responsible for providing certain administrative
services to the Fund as well. Those services include providing and supervising
all administrative and clerical personnel that are necessary in order to provide
effective corporate administration for the Fund; compiling and maintaining
records with respect to the Fund's operations; preparing and filing reports
required by the Securities and Exchange Commission; preparing periodic reports
regarding the operations of the Fund for its shareholders; preparing proxy
materials for shareholder meetings; and preparing the registration statements
required by Federal and state securities laws for the sale of the Fund's shares.
The Manager also provides the Fund with office space, facilities and equipment.
54 | OPPENHEIMER SENIOR FLOATING RATE FUND
The Board also considered the quality of the services provided and the
quality of the Manager's resources that are available to the Fund. The Board
took account of the fact that the Manager has had over forty years of experience
as an investment adviser and that its assets under management rank it among the
top mutual fund managers in the United States. The Board evaluated the Manager's
administrative, accounting, legal and compliance services, and information the
Board has received regarding the experience and professional qualifications of
the Manager's key personnel and the size and functions of its staff providing
investment management services to the Fund. The Board also considered compliance
reports from the Fund's Chief Compliance Officer. In its evaluation of the
quality of the portfolio management services provided, the Board considered the
experience of Arthur J. Zimmer, Joseph Welsh and Margaret Hui and the Manager's
leveraged loan investment team and analysts. Messrs. Zimmer and Welsh and Ms.
Hui have had over 30 years, 14 years and 19 years of experience, respectively,
managing fixed income investments. The Board members also considered the
totality of their experiences with the Manager, as directors or trustees of the
Fund and other funds advised by the Manager. In light of the foregoing, the
Board concluded that the Fund benefits from the services provided under the
Agreement as a result of the Manager's experience, reputation, personnel,
operations, and resources.
INVESTMENT PERFORMANCE OF THE MANAGER AND THE FUND. During the year, the
Manager provided information on the performance of the Fund and the Manager at
each Board meeting, including comparative performance information. The Board
also reviewed information, prepared by the Manager and by the independent
consultant, comparing the Fund's historical performance to relevant market
indices and to the performance of other leveraged closed end loan participation
funds advised by other investment advisers. The Board noted that the Fund's
one-year performance was better than its peer group median. However its
three-year and five-year performance were below its peer group median.
COSTS OF SERVICES AND PROFITS REALIZED BY THE MANAGER. The Board
considered information regarding the Manager's costs in serving as the Fund's
investment adviser, including the costs associated with the personnel and
systems necessary to manage the Fund, and information regarding the Manager's
profitability from its relationship with the Fund. The Board reviewed the fees
paid to the Manager and the other expenses borne by the Fund. The Board also
evaluated the comparability of the fees charged and the services provided to the
Fund to the fees and services for other clients or accounts advised by the
Manager. The independent consultant provided comparative data in regard to the
fees and expenses of the Fund, other leveraged closed end loan participation
funds and other funds with comparable asset levels and distribution features.
The Board noted that
55 | OPPENHEIMER SENIOR FLOATING RATE FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
the Fund's contractual and actual management fees and total expenses are all
lower than its peer group median and average. The Manager had voluntarily
reduced its management fee by 0.20% during the past year but, effective January
1, 2006, the Manager reduced its voluntary waiver to 0.10%. In light of the
improvement in the Fund's performance, the Board concluded that the management
fee was reasonable.
ECONOMIES OF SCALE. The Board reviewed whether the Fund's advisory fee
shares with shareholders economies of scale that the Manager may realize in
managing and supporting the Fund. The Board noted the Fund's breakpoints, which
are intended to share with shareholders economies of scale that may exist as the
Fund grows.
OTHER BENEFITS TO THE MANAGER. In addition to considering the profits
realized by the Manager, the Board considered information that was provided
regarding the direct and indirect benefits the Manager receives as a result of
its relationship with the Fund, including compensation paid to the Manager's
affiliates. The Board also considered that the Manager must be able to pay and
retain experienced professional personnel at competitive rates to provide
services to the Fund and that maintaining the financial viability of the Manager
is important in order for the Manager to continue to provide significant
services to the Fund and its shareholders.
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund and to the independent Trustees. Fund counsel and the independent
Trustees' counsel are both independent of the Manager within the meaning and
intent of the Securities and Exchange Commission Rules.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Trustees,
decided to continue the advisory agreement for another year. In arriving at this
decision, the Board did not single out any factor or factors as being more
important than others, but considered all of the factors together. The Board
judged the terms and conditions of the advisory agreement, including the
management fee, in light of all of the surrounding circumstances.
56 | OPPENHEIMER SENIOR FLOATING RATE FUND
ITEM 2. CODE OF ETHICS.
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to semiannual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to semiannual reports.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to semiannual reports.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to semiannual reports.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by
executive search firms which the Committee may engage from time to time
and may also consider shareholder recommendations. The Committee may
consider the advice and recommendation of the Funds' investment manager
and its affiliates in making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met
by a trustee nominee. In evaluating trustee nominees, the Committee
considers, among other things, an individual's
background, skills, and experience; whether the individual is an
"interested person" as defined in the Investment Company Act of 1940; and
whether the individual would be deemed an "audit committee financial
expert" within the meaning of applicable SEC rules. The Committee also
considers whether the individual's background, skills, and experience will
complement the background, skills, and experience of other nominees and
will contribute to the Board. There are no differences in the manner in
which the Committee evaluates nominees for trustees based on whether the
nominee is recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates
to present to the Board and, in such cases where required, to
shareholders. Recommendations for trustee nominees should, at a minimum,
be accompanied by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person"
as defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in
a proxy statement concerning the person if he or she was nominated;
and
o the name and address of the person submitting the recommendation
and, if that person is a shareholder, the period for which that
person held Fund shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under
the Investment Company Act of 1940. In addition, certain other
relationships with Massachusetts Mutual Life Insurance Company or its
subsidiaries, with registered broker-dealers, or with the Funds' outside
legal counsel may cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving
as a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the registrant's disclosure controls and procedures
(as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR
270.30a-3(c)) as of January 31, 2006, the registrant's principal executive
officer and principal financial officer found the registrant's disclosure
controls and procedures to provide reasonable assurances that information
required to be disclosed by the 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.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable to semiannual reports.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Senior Floating Rate Fund
By: /s/ John V. Murphy
----------------------------
John V. Murphy
Principal Executive Officer
Date: March 15, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John V. Murphy
----------------------------
John V. Murphy
Principal Executive Officer
Date: March 15, 2006
By: /s/ Brian W. Wixted
----------------------------
Brian W. Wixted
Principal Financial Officer
Date: March 15, 2006