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
Date of reporting period: 07/31/2006
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN CORPORATE LOAN INDUSTRIES
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Media 14.4%
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Health Care Providers & Services 7.6
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Electric Utilities 6.9
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Hotels, Restaurants & Leisure 6.8
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Commercial Services & Supplies 6.5
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Auto Components 6.4
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Aerospace & Defense 6.0
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Chemicals 5.3
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Oil & Gas 5.2
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Industrial Conglomerates 4.1
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2006, and are based on net assets.
TOP FIVE HOLDINGS BY ISSUERS
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Charter Communications Operation LLC 1.4
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CSC Holdings, Inc. 1.3
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NRG Energy, Inc. 1.1
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Bi-Lo Holdings LLC 1.0
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SunGard Data Systems, Inc. 1.0
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2006, and are based on net assets. For up-to-date Top 10 Fund holdings,
please visit www.oppenheimerfunds.com.
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CREDIT ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
BBB 2.9%
BB 27.8
B 48.2
CCC 3.8
D 0.1
Not Rated 17.2
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2006, and are based on the total market value of investments. As of
that date, no securities held by the Fund were rated higher than BBB or lower
than D.
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8 | OPPENHEIMER SENIOR FLOATING RATE FUND
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED JULY 31, 2006.
MANAGEMENT DISCUSSION OF FUND PERFORMANCE. For the 12-month period ended July
31, 2006, Class A shares of Oppenheimer's Senior Floating Rate Fund produced
total returns without sales charge that were greater than that of its benchmark,
the Credit Suisse First Boston Leverage Loan Index. We attribute the Fund's
strong absolute performance to rising interest rates. The Fund's relative
performance was bolstered by our security selection strategy, which is based on
fundamental research into the market's various industry groups and individual
issuers.
By the start of the reporting period, we had positioned the Fund for a
strong economic environment. We modestly emphasized economically-sensitive
industry groups, such as industrials, as well as the energy sector, which
appeared poised to benefit from high commodity prices. In addition, we slightly
increased the Fund's exposure to credit risk in anticipation of healthy business
conditions and low default rates. We generally maintained these areas of
emphasis throughout the reporting period, which benefited the Fund's
performance.
Over the reporting period, the Fund received particularly strong
contributions to its relative performance from the transportation, information
technology and aerospace/defense sectors. On the other hand, a few areas
produced returns that lagged industry averages, including the financial,
wireless telecommunications and food industries. Companies in these groups
typically issue loans at lower spreads over London Interbank Offered Rate
(LIBOR) than other areas. In addition, results from the financial and food
industries were constrained by credit concerns affecting a small number of
individual issuers.
As of the end of the reporting period, we believe that there are signs
that the U.S. economy may be moving to the next phase of its cycle. Should the
rate of economic growth slow, we are prepared to shift to a more defensive
investment posture by focusing on less economically-sensitive issuers.
9 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES
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TOTAL RETURNS INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS DISTRIBUTIONS IN A HYPOTHETICAL INVESTMENT FOR THE PERIODS SHOWN.
THE FUND'S TOTAL RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF INCOME TAXES ON
AN INDIVIDUAL'S INVESTMENT. TAXES MAY REDUCE YOUR ACTUAL INVESTMENT RETURNS ON
INCOME OR GAINS PAID BY THE FUND OR ANY GAINS YOU MAY REALIZE IF YOU SELL YOUR
SHARES. THE FUND'S INVESTMENT ADVISOR HAD PREVIOUSLY VOLUNTARILY UNDERTAKEN TO
WAIVE THE FIRST 0.20% OF ITS MANAGEMENT FEE. EFFECTIVE JANUARY 1, 2006, THAT
WAIVER WAS REDUCED FROM 0.20% TO 0.10%. THIS WAIVER CAN BE FURTHER MODIFIED OR
TERMINATED AT ANY TIME BY THE ADVISOR. WITHOUT THAT WAIVER, FUND PERFORMANCE MAY
HAVE BEEN LOWER. 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 OR INDUSTRY SECTORS 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.
10 | OPPENHEIMER SENIOR FLOATING RATE FUND
CLASS A shares of the Fund were first publicly offered on 9/8/99. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 3.50%.
CLASS B shares of the Fund were first publicly offered on 9/8/99. Class B total
returns are shown net of the applicable early withdrawal charge of 3%
(one-year). Because Class B shares convert to Class A shares 72 months after
purchase, Class B returns for the life of the class do not include any early
withdrawal charges and use 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
agreements 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
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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 July 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 early withdrawal charges (loads), or a $12.00 fee imposed annually on
accounts valued at less than $500.00 (subject to exceptions described in
12 | OPPENHEIMER SENIOR FLOATING RATE FUND
the Statement of Additional Information). Therefore, the "hypothetical" lines of
the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(2/1/06) (7/31/06) JULY 31, 2006
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Class A Actual $1,000.00 $1,035.50 $5.31
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Class A Hypothetical 1,000.00 1,019.59 5.27
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Class B Actual 1,000.00 1,031.60 8.19
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Class B Hypothetical 1,000.00 1,016.76 8.13
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Class C Actual 1,000.00 1,033.00 7.89
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Class C Hypothetical 1,000.00 1,017.06 7.83
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Class Y Actual 1,000.00 1,036.00 5.16
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Class Y Hypothetical 1,000.00 1,019.74 5.12
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 181/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended July 31, 2006 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------------
Class A 1.05%
- ---------------------------------
Class B 1.62
- ---------------------------------
Class C 1.56
- ---------------------------------
Class Y 1.02
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.
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13 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS July 31, 2006
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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CORPORATE LOANS--101.5%
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CONSUMER DISCRETIONARY--32.7%
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AUTO COMPONENTS--6.4%
Collins & Aikman Corp., Sr. Sec. Credit Facilities Revolving Credit Loan,
Debtor in Possession, 8.438%-10.11%, 8/31/07 1,2 $ 3,998,739 $ 4,021,232
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Collins & Aikman Corp., Sr. Sec. Credit Facilities Term Loan, Debtor
in Possession, Tranche B, 8.375%-10.11%, 8/31/07 1 17,135,420 17,188,968
- ------------------------------------------------------------------------------------------------------------------------
Delphi Corp., Sr. Sec. Credit Facilities Revolving Credit Loan, 6/18/09 1,2,3 5,000,000 5,141,250
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Delphi Corp., Sr. Sec. Credit Facilities Revolving Credit Loan, 12.082%,
6/18/09 1 26,475,249 27,223,175
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Federal Mogul Corp., Sr. Sec. Credit Facilities Pre-Petition Revolving
Credit Loan, Tranche B, 1.75%-7.15%, 12/30/06 1 9,829,076 9,589,571
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Federal Mogul Corp., Sr. Sec. Credit Facilities Term Loan, Debtor in
Possession, 7.50%, 12/9/06 1,2 7,000,000 7,026,250
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Goodyear Tire & Rubber Co. (The), Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 7.954%, 4/30/10 1 25,000,000 25,143,225
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Hayes Lemmerz International, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.46%-9.06%, 6/3/09 1 23,259,305 23,579,121
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Key Plastics LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.48%-8.59%, 6/25/10 1,2 13,728,101 13,839,641
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Mark IV Industries, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.81%-8.06%, 6/21/11 1 23,000,001 23,196,467
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Mark IV Industries, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.13%-11.35%, 12/23/11 1 3,500,000 3,574,376
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Plastech Engineered Products, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 9.749%, 2/12/09 1,2 4,246,906 4,204,437
Tranche B, 10.249%, 2/12/10 1,2 14,463,629 14,422,957
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RJ Tower Corp., Sr. Sec. Credit Facilities Term Loan, Debtor
in Possession, 8.25%, 2/2/07 1,2 26,000,000 26,333,138
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TI Automotive Ltd., Sr. Sec. Credit Facilities Term Loan, Tranche C,
8.869%, 6/7/11 1,2 22,018,837 21,771,125
---------------
226,254,933
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HOTELS, RESTAURANTS & LEISURE--6.8%
Aladdin/OpBiz Gaming LLC, Sr. Sec. Credit Facilities Term Loan:
Tranche A, 8.508%, 8/31/10 1 15,935,423 15,429,473
Tranche B, 9.22%, 8/31/10 1 41,730 40,478
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AMF Bowling Worldwide, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.13%-8.619%, 8/27/09 1,2 1,581,004 1,594,346
- ------------------------------------------------------------------------------------------------------------------------
Arby's LLC, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7/25/12 1,3 2,000,000 2,001,250
Tranche B, 7.735%-7.749%, 7/25/12 1 11,138,497 11,145,459
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Buffets, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.90%-8.999%, 6/28/09 1,2 10,612,433 10,652,230
14 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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HOTELS, RESTAURANTS & LEISURE Continued
Cedar Fair LP, Sr. Sec. Credit Facilities Term Loan, 6/13/12 1,3 $ 21,000,000 $ 21,083,118
- ------------------------------------------------------------------------------------------------------------------------
Cracker Barrel Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 4/27/13 1,3 7,000,000 6,967,625
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Del Taco Restaurants, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.75%, 3/2/13 1,2 12,867,750 12,851,665
- ------------------------------------------------------------------------------------------------------------------------
Denny's Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
5.16%-8.75%, 9/30/09 1 9,367,820 9,410,752
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Denny's Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
10.065%-10.75%, 8/31/10 1 4,999,998 5,072,916
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Garden Fresh Restaurant Corp., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 8.758%, 6/20/11 1,2 6,912,500 6,929,781
- ------------------------------------------------------------------------------------------------------------------------
Ginn Clubs & Resorts, Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.345%, 6/15/11 1,2 6,857,143 6,754,286
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Ginn Clubs & Resorts, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
12.345%, 6/15/12 1,2 4,000,000 3,980,000
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Harmon Koval Partners LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 8.439%, 12/31/06 1,2 4,000,000 4,017,500
- ------------------------------------------------------------------------------------------------------------------------
MotorCity Casino LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.214%-7.49%, 7/21/12 1 17,902,323 17,864,280
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Penn National Gaming, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.91%-7.25%, 10/3/12 1 4,456,275 4,472,429
- ------------------------------------------------------------------------------------------------------------------------
Quiznos Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.438%, 5/5/13 1,2 15,000,000 14,979,691
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Quiznos Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.249%, 11/5/13 1 12,000,000 12,187,500
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Resorts International Hotel & Casino, Inc., Sr. Sec. Credit Facilities
1st Lien Term Loan, Tranche B, 9.50%, 3/22/12 1 17,217,521 17,353,108
- ------------------------------------------------------------------------------------------------------------------------
Resorts International Hotel & Casino, Inc., Sr. Sec. Credit Facilities
2nd Lien Term Loan, 16.499%, 3/22/13 1,4 8,109,447 8,445,648
- ------------------------------------------------------------------------------------------------------------------------
Trump Entertainment Resorts, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B1, 7.92%-8.03%, 5/20/12 1 3,960,000 3,987,225
Tranche B2, 2%, 5/20/12 1 3,960,000 3,987,225
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Turtle Bay Resort, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.15%, 9/13/10 1,2 1,945,101 1,925,650
- ------------------------------------------------------------------------------------------------------------------------
Venetian Macao Ltd., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.20%, 5/25/13 1 10,667,026 10,717,033
- ------------------------------------------------------------------------------------------------------------------------
Venetian Macao Ltd., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 1.375%, 5/25/11 1 8,333,315 8,322,899
- ------------------------------------------------------------------------------------------------------------------------
Wembley plc, Sr. Sec. Credit Facilities 1st Lien Term Loan, 6.99%, 7/25/12 1 2,970,000 2,971,856
- ------------------------------------------------------------------------------------------------------------------------
Wembley plc, Sr. Sec. Credit Facilities 2nd Lien Term Loan, 8.74%, 7/25/13 1 4,000,000 4,000,000
- ------------------------------------------------------------------------------------------------------------------------
Yonkers Racing Corp., Sr. Sec. Credit Facilities Term Loan,
2.25%-8.894%, 7/25/11 1,2 8,500,000 8,574,375
---------------
237,719,798
15 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES--0.3%
Springs Window Fashions Division, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche B, 8.25%, 12/18/12 1,2 $ 9,950,000 $ 9,974,875
- ------------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--0.2%
Tire Rack, Inc. (The), Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.10%-7.25%, 6/24/12 1,2 8,826,065 8,826,065
- ------------------------------------------------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS--0.8%
24 Hour Fitness, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.99%-8.12%, 6/18/12 1 15,950,000 16,049,687
- ------------------------------------------------------------------------------------------------------------------------
Latham Manufacturing Co., Sr. Sec. Credit Facilities Term Loan, 6/30/12 1,3 1,000,000 1,000,625
- ------------------------------------------------------------------------------------------------------------------------
Latham Manufacturing Co., Sr. Sec. Credit Facilities Term Loan,
8.74%-8.90%, 6/30/12 1 11,471,365 11,478,535
---------------
28,528,847
- ------------------------------------------------------------------------------------------------------------------------
MEDIA--14.4%
ALM Properties, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.999%, 3/4/10 1 10,367,521 10,363,198
- ------------------------------------------------------------------------------------------------------------------------
AMC Entertainment, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.525%, 1/26/13 1 17,505,586 17,581,175
- ------------------------------------------------------------------------------------------------------------------------
Bragg Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.227%, 8/31/11 1,2 9,924,242 9,949,053
- ------------------------------------------------------------------------------------------------------------------------
Cebridge Connections Holding LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.739%, 2/23/09 1,2 17,000,000 16,910,444
- ------------------------------------------------------------------------------------------------------------------------
Century Theatres, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.106%, 3/1/13 1 17,500,000 17,537,188
- ------------------------------------------------------------------------------------------------------------------------
Charter Communications Operation LLC, Sr. Sec. Credit Facilities
Term Loan, 8.125%, 4/27/13 1 45,000,000 45,120,780
- ------------------------------------------------------------------------------------------------------------------------
Cinram International, Inc., Sr. Sec. Credit Facilities Term Loan,
7.084%, 4/12/11 1,2 14,000,000 13,986,882
- ------------------------------------------------------------------------------------------------------------------------
CSC Holdings, Inc. (Cablevision), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.88%-7.258%, 3/30/13 1 50,872,501 50,629,126
- ------------------------------------------------------------------------------------------------------------------------
Cygnus Business Media, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 10.007%, 12/31/08 1,2 9,924,242 9,874,621
- ------------------------------------------------------------------------------------------------------------------------
Deluxe Entertainment Services, Inc., Sr. Sec. Credit Facilities Term Loan,
9.249%, 1/13/10 1,2 9,610,358 9,702,454
- ------------------------------------------------------------------------------------------------------------------------
DoubleClick, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.79%-9.17%, 7/13/12 1 25,335,397 25,683,759
- ------------------------------------------------------------------------------------------------------------------------
Frontiervision Operating Partners LP, Sr. Sec. Credit Facilities
Revolving Credit Loan, 9.65%, 9/30/06 1,2 9,363,636 9,222,011
- ------------------------------------------------------------------------------------------------------------------------
Frontiervision Operating Partners LP, Sr. Sec. Credit Facilities
Term Loan, Tranche B, 9.775%, 9/30/06 1 4,477,144 4,415,583
- ------------------------------------------------------------------------------------------------------------------------
GateHouse Media, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 12/7/13 1,3 2,000,000 1,998,126
- ------------------------------------------------------------------------------------------------------------------------
GateHouse Media, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.59%, 12/7/13 1 20,000,000 19,981,260
16 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
MEDIA Continued
Gray Television, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.01%, 11/22/12 1 $ 17,424,968 $ 17,439,484
- ------------------------------------------------------------------------------------------------------------------------
Hit Entertainment, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.70%, 8/5/12 1,2 14,845,025 14,919,251
- ------------------------------------------------------------------------------------------------------------------------
Mediacom Broadband LLC, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 7.38%, 12/31/12 1 10,562,500 10,529,492
- ------------------------------------------------------------------------------------------------------------------------
Metro-Goldwyn-Mayer Studios, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 7.749%, 4/8/11 1 3,904,762 3,909,889
Tranche B, 7.749%, 4/8/12 1 5,985,000 6,002,147
- ------------------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 8.757%, 1/15/12 1 15,000,000 15,318,750
- ------------------------------------------------------------------------------------------------------------------------
PBI Media LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B,
6.114%-7.749%, 9/30/12 1 27,310,982 27,402,010
- ------------------------------------------------------------------------------------------------------------------------
Quebecor Media, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.507%, 1/17/13 1,4 17,418,734 17,530,319
- ------------------------------------------------------------------------------------------------------------------------
Regal Cinemas, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.069%-7.249%, 11/10/10 1 34,965,640 34,820,603
- ------------------------------------------------------------------------------------------------------------------------
San Juan Cable & Construction, Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 7.27%, 10/31/12 1 17,425,000 17,476,735
- ------------------------------------------------------------------------------------------------------------------------
SFX Entertainment, Inc., Sr. Sec. Credit Facilities Term Loan,
7.75%, 7/31/13 1,2 17,425,000 17,443,157
- ------------------------------------------------------------------------------------------------------------------------
UPC Financing Partnership, Sr. Sec. Credit Facilities Term Loan:
Tranche J2, 7.64%, 3/27/13 1 17,500,000 17,483,743
Tranche K2, 7.64%, 12/27/13 1 17,500,000 17,483,743
- ------------------------------------------------------------------------------------------------------------------------
Wide Open West LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.421%-7.758%, 5/5/13 1 9,999,999 10,022,319
- ------------------------------------------------------------------------------------------------------------------------
Young Broadcasting, Inc., Sr. Sec. Credit Facilities Term Loan,
7.688%-7.75%, 11/3/12 1 14,874,874 14,830,711
---------------
505,568,013
- ------------------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL--1.0%
Dollarama Group LP, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.485%, 2/12/12 1,2 6,895,219 6,918,925
- ------------------------------------------------------------------------------------------------------------------------
General Growth Properties, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 2/24/10 1,3 12,000,000 11,864,316
Tranche A, 6.65%, 2/24/10 1 12,500,000 12,358,663
- ------------------------------------------------------------------------------------------------------------------------
Neiman Marcus Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.77%, 4/6/13 1 2,898,734 2,925,669
---------------
34,067,573
- ------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL--2.6%
BCBG Max Azria Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.25%-8.813%, 8/10/11 1,2 13,999,999 13,999,999
17 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL Continued
Burlington Coat Factory Warehouse Corp., Sr. Sec. Credit Facilities
Term Loan, 7.43%-7.53%, 5/28/13 1 $ 16,957,500 $ 16,513,689
- ------------------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.98%-8.55%, 3/1/12 1,2 7,900,001 7,917,285
- ------------------------------------------------------------------------------------------------------------------------
Harbor Freight Tools, Sr. Sec. Credit Facilities Term Loan,
Tranche C, 6.921%, 7/15/10 1 10,761,386 10,766,434
- ------------------------------------------------------------------------------------------------------------------------
J. Crew Operating Corp., Sr. Sec. Credit Facilities Term Loan,
7.74%, 5/15/13 1,2 4,385,965 4,386,877
- ------------------------------------------------------------------------------------------------------------------------
Movie Gallery, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 10.75%, 4/27/11 1,4 26,139,687 25,529,090
- ------------------------------------------------------------------------------------------------------------------------
Savers, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.596%, 7/30/09 1,2 8,021,535 8,041,589
- ------------------------------------------------------------------------------------------------------------------------
Toys R Us Delaware, Inc., Sr. Sec. Credit Facilities Term Loan,
9.62%, 7/19/12 1 3,000,000 3,033,750
---------------
90,188,713
- ------------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--0.2%
Maidenform, Inc., Sr. Sec. Credit Facilities Term Loan,
6.921%-7.15%, 6/7/10 1,2 8,333,333 8,312,500
- ------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--6.8%
- ------------------------------------------------------------------------------------------------------------------------
BEVERAGES--0.3%
Sunny Delight Beverages Co., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 11.19%-11.52%, 8/3/10 1 8,563,830 8,483,544
- ------------------------------------------------------------------------------------------------------------------------
Sunny Delight Beverages Co., Sr. Sec. Credit Facilities Revolving
Credit Loan, 11.15%, 8/23/09 1,2 2,827,083 2,742,271
---------------
11,225,815
- ------------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--1.3%
Bi-Lo Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 9.16%-9.50%, 7/29/11 1 39,514,493 40,024,901
- ------------------------------------------------------------------------------------------------------------------------
MAPCO, Inc., Sr. Sec. Credit Facilities Term Loan, 8.20%, 4/28/11 1,2 6,271,711 6,306,989
---------------
46,331,890
- ------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS--1.1%
American Seafoods Group LLC, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, Tranche B2, 7.25%, 9/30/12 1,2 8,266,208 8,266,208
- ------------------------------------------------------------------------------------------------------------------------
Chiquita Brands International, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.65%, 6/28/12 1,2 1,877,791 1,879,356
Tranche C, 7.65%, 6/28/12 1,2 12,864,988 12,899,826
- ------------------------------------------------------------------------------------------------------------------------
Dole Food Co., Sr. Sec. Credit Facilities Prefunded Letter of
Credit Term Loan, 7.25%, 4/17/13 1 1,069,768 1,049,227
- ------------------------------------------------------------------------------------------------------------------------
Dole Food Co., Sr. Sec. Credit Facilities Term Loan, 4/11/13 1,3 113,969 111,781
18 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS Continued
Dole Food Co., Sr. Sec. Credit Facilities Term Loan, 7%-9%, 4/11/13 1 $ 1,251,125 $ 1,227,101
- ------------------------------------------------------------------------------------------------------------------------
Solvest Ltd., Sr. Sec. Credit Facilities Term Loan, 4/17/13 1,3 379,897 372,603
- ------------------------------------------------------------------------------------------------------------------------
Solvest Ltd., Sr. Sec. Credit Facilities Term Loan, 7%-9%, 4/17/13 1 7,661,666 7,514,554
- ------------------------------------------------------------------------------------------------------------------------
Windsor Quality Food Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.25%, 12/10/10 1,2 5,932,500 5,947,331
---------------
39,267,987
- ------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.1%
Amscan Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.194%-8.30%, 12/22/12 1 16,957,500 17,014,019
- ------------------------------------------------------------------------------------------------------------------------
Jarden Corp., Sr. Sec. Credit Facilities Term Loan, 7.499%, 1/24/12 1,4 9,204,382 9,210,134
- ------------------------------------------------------------------------------------------------------------------------
Playpower, Inc., Sr. Sec. Credit Facilities Term Loan, 8.50%, 2/1/10 1,2 9,794,872 9,868,333
---------------
36,092,486
- ------------------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS--2.1%
Cosmetic Essence, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.875%-10.356%, 12/3/10 1,2 11,438,735 11,467,333
- ------------------------------------------------------------------------------------------------------------------------
FGX International, Sr. Sec. Credit Facilities 1st Lien Term Loan,
9.396%, 12/14/12 1,2 18,000,000 18,045,000
- ------------------------------------------------------------------------------------------------------------------------
Mega Bloks, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
6.938%-7.25%, 7/26/12 1 5,955,461 5,953,603
- ------------------------------------------------------------------------------------------------------------------------
Natural Products Group, Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.40%, 6/19/13 1,2 12,000,000 12,045,000
- ------------------------------------------------------------------------------------------------------------------------
Natural Products Group, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.96%, 12/19/13 1,2 2,000,000 2,012,500
- ------------------------------------------------------------------------------------------------------------------------
Nice-Pak Products, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
9.144%-10.356%, 6/18/10 1,2 2,305,042 2,309,363
- ------------------------------------------------------------------------------------------------------------------------
Pure Fishing, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.50%-8.61%, 3/23/10 1 14,703,072 14,730,640
- ------------------------------------------------------------------------------------------------------------------------
VJCS Acquisition, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.69%-7.81%, 5/10/13 1,2 7,000,000 7,000,000
---------------
73,563,439
- ------------------------------------------------------------------------------------------------------------------------
TOBACCO--0.9%
Commonwealth Brands, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.75%, 12/22/12 1,4 14,058,750 14,146,617
- ------------------------------------------------------------------------------------------------------------------------
Reynolds American, Inc., Sr. Sec. Credit Facilities Term Loan,
7.188%-7.313%, 5/31/12 1 17,475,200 17,580,331
---------------
31,726,948
19 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
ENERGY--6.7%
- ------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.5%
Coldren Resource LP, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7/14/11 1,3 $ 17,229,917 $ 17,316,066
- ------------------------------------------------------------------------------------------------------------------------
Coldren Resource LP, Sr. Sec. Credit Facilities Letter of
Credit Term Loan, 7/14/11 1,3 2,770,083 2,783,934
- ------------------------------------------------------------------------------------------------------------------------
Helix Energy Solutions, Inc., Sr. Sec. Credit Facilities Term Loan, 5/9/13 1,3 11,000,000 11,004,587
- ------------------------------------------------------------------------------------------------------------------------
Helix Energy Solutions, Inc., Sr. Sec. Credit Facilities Term Loan,
7.346%-7.64%, 5/9/13 1 9,000,000 9,003,754
- ------------------------------------------------------------------------------------------------------------------------
Northern Star Generation LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.35%, 12/17/11 1,2 12,304,425 12,469,772
---------------
52,578,113
- ------------------------------------------------------------------------------------------------------------------------
OIL & GAS--5.2%
Astoria Generating Co., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.38%-7.45%, 2/25/13 1 11,686,147 11,714,323
- ------------------------------------------------------------------------------------------------------------------------
Astoria Generating Co., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche B, 9.20%, 8/25/13 1 18,500,000 18,770,563
- ------------------------------------------------------------------------------------------------------------------------
ATP Oil & Gas Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.36%-8.859%, 4/14/10 1 18,000,000 18,112,500
- ------------------------------------------------------------------------------------------------------------------------
Cheniere Energy, Inc., Sr. Sec. Credit Facilities Term Loan,
6.45%-8.249%, 8/31/12 1 17,865,075 18,026,986
- ------------------------------------------------------------------------------------------------------------------------
Coleto Creek Power LP, Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.195%, 7/7/13 1 25,000,000 24,875,000
- ------------------------------------------------------------------------------------------------------------------------
Hawkeye Renewables LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
9.40%-9.543%, 6/27/12 1 16,000,000 15,910,000
- ------------------------------------------------------------------------------------------------------------------------
Hercules Offshore LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.76%, 6/29/10 1,2 8,357,143 8,435,491
- ------------------------------------------------------------------------------------------------------------------------
LS Power General Finance LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, Delayed Draw, 0.875%, 3/15/13 1 989,899 987,424
- ------------------------------------------------------------------------------------------------------------------------
LS Power General Finance LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.249%, 3/15/13 1 23,510,101 23,451,326
- ------------------------------------------------------------------------------------------------------------------------
MEG Energy Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.50%, 3/30/13 1 12,468,750 12,497,690
- ------------------------------------------------------------------------------------------------------------------------
Pine Prairie, Sr. Sec. Credit Facilities Term Loan, Delayed Draw,
1.25%, 12/31/13 1,2 2,800,000 2,789,500
- ------------------------------------------------------------------------------------------------------------------------
Pine Prairie, Sr. Sec. Credit Facilities Term Loan, Delayed Draw,
1.25%, 12/31/13 1,2 772,727 769,830
- ------------------------------------------------------------------------------------------------------------------------
Pine Prairie, Sr. Sec. Credit Facilities Term Loan, 7.80%, 12/31/13 1,2 10,427,273 10,479,409
- ------------------------------------------------------------------------------------------------------------------------
Targa Resources, Inc., Sr. Sec. Credit Facilities Bridge Term Loan,
7.477%, 10/31/07 1 16,000,000 16,023,328
---------------
182,843,370
20 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
FINANCIALS--2.4%
- ------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE--0.3%
Buckeye Check Cashing, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 8.03%-8.14%, 5/1/12 1 $ 11,970,000 $ 11,977,481
- ------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--1.0%
Ameritrade Holding Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.90%, 12/31/12 1 34,912,500 34,868,859
- ------------------------------------------------------------------------------------------------------------------------
INSURANCE--0.4%
Conseco, Inc., Sr. Sec. Credit Facilities Term Loan, 7.119%, 6/22/10 1,2 8,941,825 8,962,320
- ------------------------------------------------------------------------------------------------------------------------
Swett & Crawford Group, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.19%-8.248%, 11/16/11 1,2 4,987,500 5,012,438
---------------
13,974,758
- ------------------------------------------------------------------------------------------------------------------------
REAL ESTATE--0.7%
Capital Auto REIT, Sr. Sec. Credit Facilities Term Loan, 7.10%, 12/16/10 1,4 19,535,719 19,557,424
- ------------------------------------------------------------------------------------------------------------------------
LA&W Finance Group, Sr. Sec. Credit Facilities Term Loan,
8.783%, 2/15/12 1,2 2,992,500 3,018,684
---------------
22,576,108
- ------------------------------------------------------------------------------------------------------------------------
HEALTH CARE--8.3%
- ------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--0.7%
CCS Medical, Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.75%, 9/30/12 1 21,890,000 21,088,279
- ------------------------------------------------------------------------------------------------------------------------
Fresenius Medical Care AG, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.782%-6.874%, 3/31/13 1 2,992,500 2,969,850
---------------
24,058,129
- ------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--7.6%
American Medical Response/EmCare Holdings, Inc., Sr. Sec.
Credit Facilities Term Loan, Tranche B, 7.16%-7.27%, 2/10/12 1 8,454,631 8,467,845
- ------------------------------------------------------------------------------------------------------------------------
Ameripath, Inc., Sr. Sec. Credit Facilities Term Loan, 7.39%, 1/25/13 1 7,980,000 7,979,003
- ------------------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.75%, 7/27/11 1,2 9,468,456 9,492,127
Tranche B, 7.75%, 8/22/11 1,2 962,625 965,032
- ------------------------------------------------------------------------------------------------------------------------
Benchmark Medical, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.964%-8.499%, 12/27/12 1,2 4,975,000 4,975,000
- ------------------------------------------------------------------------------------------------------------------------
CompBenefits Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B
Add-On, 8.40%-8.618%, 3/31/13 1,2 8,887,500 8,937,492
- ------------------------------------------------------------------------------------------------------------------------
Concentra Operating Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.62%, 9/30/11 1,2 6,526,915 6,545,275
- ------------------------------------------------------------------------------------------------------------------------
DaVita, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.11%-7.69%, 10/5/12 1 9,925,344 9,957,242
21 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
FHC Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 11.231%, 11/15/09 1,2 $ 5,380,367 $ 5,568,680
- ------------------------------------------------------------------------------------------------------------------------
FHC Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, Tranche B, 13.231%, 11/15/09 1,2 2,080,196 2,153,003
- ------------------------------------------------------------------------------------------------------------------------
Genoa Healthcare LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.609%-10.50%, 8/10/12 1,2 9,215,961 9,319,641
- ------------------------------------------------------------------------------------------------------------------------
Genoa Healthcare LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
13.109%, 2/10/13 1 1,000,000 1,009,375
- ------------------------------------------------------------------------------------------------------------------------
Gentiva Health Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.08%-7.89%, 3/31/13 1 11,837,838 11,858,187
- ------------------------------------------------------------------------------------------------------------------------
GGNSC Beverly LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.959%-8.249%, 4/24/13 1,2 7,231,875 7,277,074
- ------------------------------------------------------------------------------------------------------------------------
HealthSouth Corp., Sr. Sec. Credit Facilities Term Loan, 8.52%, 3/10/13 1 28,000,000 27,984,432
- ------------------------------------------------------------------------------------------------------------------------
Matria Healthcare, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.439%-7.749%, 1/19/12 1,2 16,271,521 16,220,672
Tranche C, 7.439%, 1/19/07 1,2 3,833,835 3,896,135
- ------------------------------------------------------------------------------------------------------------------------
MultiPlan, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.499%,
4/15/13 1 5,356,838 5,336,750
- ------------------------------------------------------------------------------------------------------------------------
Per-Se Technologies, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.68%-7.75%, 1/6/13 1 19,073,563 19,121,248
- ------------------------------------------------------------------------------------------------------------------------
Quintiles Transnational Corp., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 7.50%, 3/31/13 1 12,787,950 12,787,950
- ------------------------------------------------------------------------------------------------------------------------
Quintiles Transnational Corp., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 9.50%, 3/31/14 1 4,000,000 4,057,500
- ------------------------------------------------------------------------------------------------------------------------
Rural/Metro Corp., Sr. Sec. Credit Facilities Letter of Credit Term Loan,
7.584%, 2/18/12 1,2 2,604,709 2,616,105
- ------------------------------------------------------------------------------------------------------------------------
Rural/Metro Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.40%-7.502%, 2/18/12 1,2 7,962,968 7,997,805
- ------------------------------------------------------------------------------------------------------------------------
Sheridan Healthcare, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.66%-8.007%, 11/9/10 1,2 11,509,872 11,538,647
- ------------------------------------------------------------------------------------------------------------------------
SouthernCare, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.86%-7.999%, 12/10/10 1 12,922,613 12,946,842
- ------------------------------------------------------------------------------------------------------------------------
Team Health, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.694%, 11/30/12 1 9,950,000 10,001,302
- ------------------------------------------------------------------------------------------------------------------------
Vanguard Health Systems, Inc., Sr. Sec. Credit Facilities Acquisition
Term Loan, Tranche B, 7.749%-7.868%, 9/23/11 1 14,786,048 14,863,054
- ------------------------------------------------------------------------------------------------------------------------
Warner Chilcott plc, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.61%, 1/4/12 1,4 7,638,251 7,656,552
Tranche B, 7.63%, 1/4/12 1 8,184,084 8,203,693
Tranche C, 7.61%, 1/4/12 1 4,407,959 4,418,520
Tranche D, 7.61%, 1/4/12 1 3,021,637 3,028,877
22 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Warner Chilcott plc, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 7.61%-7.999%, 1/14/12 1 $ 2,122,924 $ 2,127,569
---------------
269,308,629
- ------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS--20.3%
- ------------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--6.0%
AM General LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 9.829%-11.589%, 8/10/11 1 9,350,000 9,461,032
- ------------------------------------------------------------------------------------------------------------------------
American Airlines, Inc., Sr. Sec. Credit Facilities Revolving Credit Loan,
8.95%-9.11%, 6/17/09 1,2 4,725,000 4,772,250
- ------------------------------------------------------------------------------------------------------------------------
American Airlines, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.33%-8.65%, 12/17/10 1 2,992,500 3,030,218
- ------------------------------------------------------------------------------------------------------------------------
Apptis, Inc., Sr. Sec. Credit Facilities Term Loan, 8.65%, 1/5/11 1,2 11,605,264 11,692,304
- ------------------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 9.758%-11.343%, 3/31/08 1,2 8,436,232 8,488,958
- ------------------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 11%, 6/30/08 2 8,000,000 8,040,000
- ------------------------------------------------------------------------------------------------------------------------
Delta Airlines, Inc., Sr. Sec. Credit Facilities Term Loan, Debtor
in Possession:
Tranche A, 8.023%, 3/27/08 1 1,000,000 1,009,286
Tranche B, 10.023%, 3/27/08 1 8,000,000 8,155,000
- ------------------------------------------------------------------------------------------------------------------------
DynCorp International LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche C, 7.313%-7.813%, 2/11/11 1 20,782,274 20,877,518
- ------------------------------------------------------------------------------------------------------------------------
Gencorp, Inc., Sr. Sec. Credit Facilities Prefunded Letter of
Credit Term Loan, 8.65%, 12/1/10 1,2 10,577,725 10,630,614
- ------------------------------------------------------------------------------------------------------------------------
Gencorp, Inc., Sr. Sec. Credit Facilities Term Loan, 8.68%, 12/6/10 1,2 9,850,507 9,899,759
- ------------------------------------------------------------------------------------------------------------------------
IAP Worldwide Services, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 8.50%, 12/30/12 1 19,900,000 19,982,923
- ------------------------------------------------------------------------------------------------------------------------
IAP Worldwide Services, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 13.50%, 6/30/13 1,2 8,000,000 8,195,000
- ------------------------------------------------------------------------------------------------------------------------
Mid-Western Aircraft Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.318%, 12/31/11 1 4,950,000 4,976,606
- ------------------------------------------------------------------------------------------------------------------------
Northwest Airlines, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 10.65%, 11/23/09 1 15,000,000 15,237,495
- ------------------------------------------------------------------------------------------------------------------------
Overwatch Systems LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B Add-On, 7.95%-8.03%, 4/1/11 1,2 1,329,417 1,339,388
- ------------------------------------------------------------------------------------------------------------------------
Overwatch Systems LLC, Sr. Sec. Credit Facilities Term Loan,
7.78%-8.03%, 4/1/11 1,2 9,902,412 9,976,681
- ------------------------------------------------------------------------------------------------------------------------
United Air Lines, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.625%, 1/9/12 1 26,250,000 26,580,855
- ------------------------------------------------------------------------------------------------------------------------
United Air Lines, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 9.188%, 2/1/12 1 3,750,000 3,797,265
23 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE Continued
US Airways Group, Inc., Sr. Sec. Credit Facilities Term Loan,
8.999%, 3/31/11 1 $ 15,500,000 $ 15,602,688
- ------------------------------------------------------------------------------------------------------------------------
Wyle Laboratories, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.88%, 1/28/11 1,2 8,091,773 8,149,937
- ------------------------------------------------------------------------------------------------------------------------
Wyle Laboratories, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.63%, 7/28/11 1,2 2,000,000 2,038,750
---------------
211,934,527
- ------------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS--2.5%
Acoustical Material Services, Inc., Sr. Sec. Credit Facilities Term
Loan,
8.15%-8.258%, 4/13/12 1 12,627,849 12,675,203
- ------------------------------------------------------------------------------------------------------------------------
Custom Building Products, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.749%, 10/20/11 1,2 7,561,587 7,610,419
- ------------------------------------------------------------------------------------------------------------------------
Custom Building Products, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 10.618%, 4/20/12 1,2 9,000,000 9,050,625
- ------------------------------------------------------------------------------------------------------------------------
Formica Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.499%-8.618%, 3/10/13 1,2 14,463,750 14,508,950
- ------------------------------------------------------------------------------------------------------------------------
MAAX, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.214%-8.50%, 6/4/11 1,2 8,392,840 8,350,875
- ------------------------------------------------------------------------------------------------------------------------
PGT Industries, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.36%, 2/14/12 1,2 16,297,835 16,389,511
- ------------------------------------------------------------------------------------------------------------------------
Pro Paint, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.688%-7.813%, 5/31/12 1,2 5,000,000 5,025,000
- ------------------------------------------------------------------------------------------------------------------------
Pro Paint, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.375%, 5/31/13 1 1,000,000 1,010,000
- ------------------------------------------------------------------------------------------------------------------------
United Subcontractors, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.36%, 12/27/12 1,2 14,925,000 14,925,000
---------------
89,545,583
- ------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--6.5%
Allied Security Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche C, 10.11%, 7/17/12 1 15,500,000 15,596,875
- ------------------------------------------------------------------------------------------------------------------------
Headwaters, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.38%-7.50%, 4/30/11 1 14,430,273 14,457,329
- ------------------------------------------------------------------------------------------------------------------------
Hertz Corp. (The), Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.41%-7.69%, 12/21/12 1 31,114,358 31,285,827
- ------------------------------------------------------------------------------------------------------------------------
NES Rentals Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
12.15%, 6/22/13 1 20,000,000 20,241,660
- ------------------------------------------------------------------------------------------------------------------------
NES Rentals Holdings, Inc., Sr. Sec. Credit Facilities Term Loan, 11.15%,
6/22/13 1 5,000,000 5,060,415
- ------------------------------------------------------------------------------------------------------------------------
Norwood Promotional Products, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche A, 13.56%, 8/16/09 1,2 16,736,238 17,070,963
24 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES Continued
Outsourcing Solutions, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 9.90%, 5/23/12 1,2 $ 11,223,193 $ 11,251,251
- ------------------------------------------------------------------------------------------------------------------------
Ozburn-Hessey Logistics, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.695%-8.793%, 6/30/13 1 15,000,000 15,000,000
- ------------------------------------------------------------------------------------------------------------------------
Protection One, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche C,
7.70%-8%, 3/31/12 1 14,862,751 14,899,908
- ------------------------------------------------------------------------------------------------------------------------
Safety-Kleen Corp., Sr. Sec. Credit Facilities Term Loan, 7.938%, 8/10/13 1 6,237,288 6,256,780
- ------------------------------------------------------------------------------------------------------------------------
Safety-Kleen Systems, Inc., Sr. Sec. Credit Facilities Prefunded Letter
of Credit Term Loan, 12.337%, 4/6/11 1,2 1,680,000 1,731,799
- ------------------------------------------------------------------------------------------------------------------------
Safety-Kleen Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
12.17%-14.055%, 4/6/11 1,2 5,925,000 6,107,686
- ------------------------------------------------------------------------------------------------------------------------
Sedgwick Claims Management Services, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche B, 7.43%-7.499%, 2/28/13 1,2 3,925,151 3,919,428
- ------------------------------------------------------------------------------------------------------------------------
TransFirst Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche A, 8.50%, 6/16/10 1,2 4,678,514 4,731,147
- ------------------------------------------------------------------------------------------------------------------------
TransFirst Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche B, 8.50%, 6/16/10 1,2 1,926,447 1,955,344
- ------------------------------------------------------------------------------------------------------------------------
U.S. Investigations Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 7.92%, 12/29/12 1 6,923,497 6,940,806
- ------------------------------------------------------------------------------------------------------------------------
U.S. Investigations Services, Inc., Sr. Sec. Credit Facilities Term Loan,
7.92%, 10/21/12 1 12,825,779 12,857,843
- ------------------------------------------------------------------------------------------------------------------------
Vanguard Car Rental USA, Inc., Sr. Sec. Credit Facilities Term Loan,
8.319%, 6/15/13 1 26,000,000 26,113,750
- ------------------------------------------------------------------------------------------------------------------------
Workflow Management, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 9.485%, 10/17/10 1,2 11,700,000 11,802,375
---------------
227,281,186
- ------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.3%
SunCal Master I Cos., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.70%-8.74%, 1/25/10 1,2 4,462,537 4,487,639
- ------------------------------------------------------------------------------------------------------------------------
Technical Olympic USA, Inc., Sr. Sec. Credit Facilities Term Loan,
7.75%, 7/29/08 1 6,000,000 5,977,500
---------------
10,465,139
- ------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--4.1%
Amsted Industries, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.01%-7.50%, 4/6/13 1,2 13,910,618 13,993,220
- ------------------------------------------------------------------------------------------------------------------------
Axia, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 8.75%, 12/20/12 1,2 9,950,000 9,974,875
- ------------------------------------------------------------------------------------------------------------------------
Cellnet Technology, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.50%, 4/26/12 1 14,318,820 14,453,059
- ------------------------------------------------------------------------------------------------------------------------
Communications & Power Industries, Inc., Sr. Sec. Credit Facilities
Term Loan, 7.59%-7.62%, 7/23/10 1,2 3,234,722 3,248,874
25 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES Continued
Hillman Group, Inc. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.438%, 3/31/11 1 $ 17,991,146 $ 18,137,324
- ------------------------------------------------------------------------------------------------------------------------
Mueller Group, Inc. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.36%-7.868%, 10/3/12 1 13,641,353 13,726,612
- ------------------------------------------------------------------------------------------------------------------------
PP Acquisition Corp., Sr. Sec. Credit Facilities Term Loan, 8.40%,
11/12/11 1,2 15,677,265 15,834,038
- ------------------------------------------------------------------------------------------------------------------------
Sensata Technologies, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.148%-7.24%, 4/27/13 1 10,000,000 9,958,039
- ------------------------------------------------------------------------------------------------------------------------
Tinnerman Palnut Engineered Products LLC, Sr. Sec. Credit Facilities
1st Lien Term Loan, 8.47%-10.50%, 11/5/09 1,2 12,973,419 12,973,419
- ------------------------------------------------------------------------------------------------------------------------
TriMas Corp., Sr. Sec. Credit Facilities Revolving Credit Loan,
8.856%-8.875%, 12/31/07 1,2 1,666,667 1,625,000
- ------------------------------------------------------------------------------------------------------------------------
TriMas Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
9.19%-9.248%, 12/31/09 1 16,258,400 16,426,073
- ------------------------------------------------------------------------------------------------------------------------
TriMas Corp., Sr. Sec. Credit Facilities Term Loan, 8.25%, 8/10/13 1 13,812,500 13,812,500
---------------
144,163,033
- ------------------------------------------------------------------------------------------------------------------------
MACHINERY--0.5%
Babcock & Wilcox Co., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 1%, 12/30/10 1,2 16,500,000 16,582,500
- ------------------------------------------------------------------------------------------------------------------------
MARINE--0.4%
Great Lakes Dredge & Dock Co., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.99%-8.62%, 12/22/10 1,2 14,110,907 14,163,823
- ------------------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--3.1%
- ------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.2%
Deltek Systems, Inc., Sr. Sec. Credit Facilities Incremental Term Loan,
7.749%, 3/31/11 1,2 8,478,664 8,542,254
- ------------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.4%
Amkor Technology, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche B, 9.694%, 10/27/10 1,2 13,000,000 13,463,125
- ------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.7%
Open Solutions, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.78%, 3/14/11 1 8,986,748 9,037,298
- ------------------------------------------------------------------------------------------------------------------------
Open Solutions, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.78%, 9/14/11 1,2 6,500,000 6,670,625
- ------------------------------------------------------------------------------------------------------------------------
SS&C Technologies, Inc. (Canada), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8%, 11/4/12 1,2 623,594 627,232
- ------------------------------------------------------------------------------------------------------------------------
SS&C Technologies, Inc. (U.S.), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8%, 11/4/12 1,2 7,336,406 7,379,199
---------------
23,714,354
26 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
IT SERVICES--1.2%
Stratus Technologies, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.50%, 4/7/11 1 $ 8,000,000 $ 8,027,504
- ------------------------------------------------------------------------------------------------------------------------
Stratus Technologies, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
14.40%, 4/7/12 1,2 5,000,000 4,850,000
- ------------------------------------------------------------------------------------------------------------------------
SunGard Data Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.66%, 1/22/13 1 20,727,970 20,844,565
- ------------------------------------------------------------------------------------------------------------------------
Vertafore, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Delayed Draw, 1.233%-7.98%, 1/31/12 1 888,889 882,222
- ------------------------------------------------------------------------------------------------------------------------
Vertafore, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.727%-7.90%, 1/5/12 1 6,897,778 6,937,654
---------------
41,541,945
- ------------------------------------------------------------------------------------------------------------------------
SOFTWARE--0.6%
Nuance Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.40%, 3/31/13 1 21,955,000 21,718,303
- ------------------------------------------------------------------------------------------------------------------------
MATERIALS--8.1%
- ------------------------------------------------------------------------------------------------------------------------
CHEMICALS--5.3%
Bassell NV, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.727%, 9/15/13 1 3,082,514 3,121,046
Tranche C, 8.227%, 9/15/14 1 3,082,514 3,121,046
- ------------------------------------------------------------------------------------------------------------------------
Brenntag AG, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B,
8.08%, 12/31/13 1 12,054,546 12,126,873
- ------------------------------------------------------------------------------------------------------------------------
Brenntag AG, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.431%, 6/30/15 1,2 3,000,000 3,065,625
- ------------------------------------------------------------------------------------------------------------------------
Brenntag AG, Sr. Sec. Credit Facilities Term Loan, 8.08%, 12/31/13 1,2 2,945,455 2,982,273
- ------------------------------------------------------------------------------------------------------------------------
Celanese Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B Add-On,
7.499%, 4/6/11 1 10,763,411 10,795,927
- ------------------------------------------------------------------------------------------------------------------------
Cognis Deutschland GmbH & Co. KG, Sr. Sec. Credit Facilities
2nd Lien Term Loan, 10.029%, 11/13/13 1,2 6,260,000 6,395,635
- ------------------------------------------------------------------------------------------------------------------------
Cognis Deutschland GmbH & Co. KG, Sr. Sec. Credit Facilities
Term Loan:
Tranche B1, 8.17%, 5/12/12 1 3,778,582 3,803,853
Tranche B4, 8.17%, 4/21/12 1 1,361,808 1,370,916
Tranche C1, 8.67%, 5/12/13 1,4 8,807,397 8,899,972
- ------------------------------------------------------------------------------------------------------------------------
Hexion Specialty Chemicals, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche C-1, 7.563%, 4/20/13 1 7,393,846 7,331,457
Tranche C-2, 7.50%, 4/20/13 1 1,606,154 1,592,601
- ------------------------------------------------------------------------------------------------------------------------
Huntsman International LLC, Sr. Sec. Credit Facilities Term Loan,
7.15%, 8/16/12 1 28,736,139 28,637,344
- ------------------------------------------------------------------------------------------------------------------------
Ineos Group Ltd., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.339%, 10/7/13 1 8,800,000 8,864,170
Tranche C, 7.839%, 10/7/14 1 8,800,000 8,864,170
27 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
CHEMICALS Continued
Invista, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B-1, 7%, 4/27/11 1 $ 3,942,767 $ 3,949,339
Tranche B-2, 7%, 4/27/11 1,2 3,106,536 3,111,714
- ------------------------------------------------------------------------------------------------------------------------
ISP Chemco, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
6.938%-7.375%, 2/17/13 1 8,977,500 8,987,115
- ------------------------------------------------------------------------------------------------------------------------
Lucite International Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 7/19/13 1,3 3,244,300 3,272,688
- ------------------------------------------------------------------------------------------------------------------------
Lucite International Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
8.16%, 7/19/13 1 7,755,700 7,823,562
- ------------------------------------------------------------------------------------------------------------------------
Solutia, Inc., Sr. Sec. Credit Facilities Term Loan, Debtor in Possession,
Tranche B, 8.72%, 3/31/07 1,2 22,000,000 22,385,000
- ------------------------------------------------------------------------------------------------------------------------
Vertellus Specialties, Inc., Sr. Sec. Credit Facilities Term Loan, 8.62%,
6/21/13 1,2 15,000,000 15,028,125
- ------------------------------------------------------------------------------------------------------------------------
Wellman, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 9.149%,
2/10/09 1,2 10,000,000 10,039,060
---------------
185,569,511
- ------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.4%
Builders FirstSource, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.008%, 8/11/11 1,2 3,455,556 3,464,194
- ------------------------------------------------------------------------------------------------------------------------
Pro-Build Holdings, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.249%, 6/26/13 1,2 12,000,000 12,003,756
---------------
15,467,950
- ------------------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING--0.4%
Graham Packaging Co. LP, Sr. Sec. Credit Facilities Incremental
Term Loan, 7.813%, 10/7/11 1 1,246,836 1,251,770
- ------------------------------------------------------------------------------------------------------------------------
Graham Packaging Co. LP, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.563%-7.875%, 9/15/11 1 8,382,399 8,415,577
Tranche C, 9.75%, 4/7/12 1,2 5,928,571 6,017,500
---------------
15,684,847
- ------------------------------------------------------------------------------------------------------------------------
METALS & MINING--0.8%
International Mill Service, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 8.25%, 12/31/10 1,2 9,915,075 9,939,862
- ------------------------------------------------------------------------------------------------------------------------
Murray Energy Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.40%, 1/28/10 1 17,296,174 17,469,136
---------------
27,408,998
- ------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--1.2%
Georgia-Pacific Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan:
Tranche A, 7.68%-7.749%, 12/20/10 1 1,950,000 1,952,573
Tranche B, 7.30%-7.499%, 12/20/12 1 6,467,501 6,467,739
28 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS Continued
Georgia-Pacific Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche C, 8.30%, 12/23/13 1 $ 18,500,000 $ 18,682,520
- ------------------------------------------------------------------------------------------------------------------------
Newpage Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.499%, 5/2/11 1 13,934,079 14,038,584
---------------
41,141,416
- ------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--5.7%
- ------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--3.9%
Cincinnati Bell, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 8/31/12 1,3 4,500,000 4,488,750
Tranche B, 6.66%-6.93%, 8/31/12 1 26,867,324 26,800,156
- ------------------------------------------------------------------------------------------------------------------------
Level 3 Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
8.125%, 12/1/11 1 30,000,000 30,050,010
- ------------------------------------------------------------------------------------------------------------------------
Ntelos, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B1, 7.65%,
8/24/11 1 6,908,145 6,906,411
- ------------------------------------------------------------------------------------------------------------------------
Qwest Corp., Sr. Sec. Credit Facilities Term Loan, Tranche A,
7.934%-11.836%, 6/30/07 1 20,816,200 21,188,290
- ------------------------------------------------------------------------------------------------------------------------
Time Warner Telecom, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 11/30/10 1,3 4,500,000 4,533,750
Tranche B, 7.82%-8%, 11/30/10 1 7,948,778 8,008,394
- ------------------------------------------------------------------------------------------------------------------------
Valor Communications LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 5.65%, 6/26/07 1,2 3,450,000 3,453,595
- ------------------------------------------------------------------------------------------------------------------------
WestCom Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.195%-8.293%, 12/17/10 1,2 4,382,693 4,401,867
- ------------------------------------------------------------------------------------------------------------------------
Windstream Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.26%, 6/30/13 1 20,000,000 20,089,280
- ------------------------------------------------------------------------------------------------------------------------
XO Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
11.513%, 7/15/09 1,2 7,306,160 7,315,292
---------------
137,235,795
- ------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--1.8%
Intelsat Ltd., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.758%-8.008%, 6/30/13 1 36,785,973 36,966,430
- ------------------------------------------------------------------------------------------------------------------------
MetroPCS, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B,
10.438%, 5/31/12 1,2 24,000,000 24,660,000
---------------
61,626,430
- ------------------------------------------------------------------------------------------------------------------------
UTILITIES--7.4%
- ------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--6.9%
Boston Generating LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 8.749%, 10/11/11 1 72,902 74,215
- ------------------------------------------------------------------------------------------------------------------------
Boston Generating LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.749%, 10/11/11 1 19,034,801 19,377,427
29 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES Continued
Boston Generating LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.799%, 10/11/11 1 $ 3,200,000 $ 3,379,200
- ------------------------------------------------------------------------------------------------------------------------
Calpine Construction Finance Co. LP, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 11.346%, 8/26/09 1,2 18,658,480 19,583,624
- ------------------------------------------------------------------------------------------------------------------------
Calpine Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, Debtor
in Possession, 7.75%, 1/23/08 1 16,369,558 16,476,991
- ------------------------------------------------------------------------------------------------------------------------
Calpine Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, Debtor
in Possession, 9.499%, 1/23/08 1,2 10,000,000 10,154,170
- ------------------------------------------------------------------------------------------------------------------------
Guadalupe Power Plant, Inc., Sr. Sec. Credit Facilities Term Loan,
7.375%, 12/31/09 1,2 9,330,516 9,050,600
- ------------------------------------------------------------------------------------------------------------------------
KGen Partners LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.124%, 9/1/11 1,2 30,171,024 29,869,313
- ------------------------------------------------------------------------------------------------------------------------
La Paloma Generating Co. LLC, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 8.999%, 8/16/13 1,2 27,000,000 26,991,576
- ------------------------------------------------------------------------------------------------------------------------
Midwest Generation LLC, Sr. Sec. Credit Facilities Term Loan,
6.86%-7.31%, 4/27/11 1,2 9,971,462 9,993,279
- ------------------------------------------------------------------------------------------------------------------------
NRG Energy, Inc., Sr. Sec. Credit Facilities Term Loan, 6.82%-7.231%,
2/5/13 1 43,900,000 44,076,039
- ------------------------------------------------------------------------------------------------------------------------
Plum Point Energy Associates LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 8.749%, 3/14/14 1,2 14,313,534 14,188,290
- ------------------------------------------------------------------------------------------------------------------------
Plum Point Energy Associates LLC, Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 10.731%, 9/14/14 1,2 4,470,594 4,431,476
- ------------------------------------------------------------------------------------------------------------------------
Riverside Energy Center LLC/Rocky Mountain Energy Center LLC,
Sr. Sec. Credit Facilities Term Loan, 9.735%, 6/24/11 1,2 35,339,451 36,311,285
---------------
243,957,485
- ------------------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--0.5%
Calpine Generating Co. LLC, Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 9.096%, 4/1/09 1 17,500,000 17,965,685
---------------
Total Corporate Loans (Cost $3,561,481,314) 3,569,009,218
- ------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--2.7%
- ------------------------------------------------------------------------------------------------------------------------
Builders FirstSource, Inc., 9.42% Sr. Sec. Nts., 2/15/12 1 13,000,000 13,260,000
- ------------------------------------------------------------------------------------------------------------------------
Calpine Generating Co. LLC, 9.096% Sec. Nts., Series 1, 4/1/09 1 3,337,000 3,441,281
- ------------------------------------------------------------------------------------------------------------------------
CCO Holdings LLC/CCO Capital Corp., 9.454% Sr. Unsec. Nts., 12/15/10 1 10,000,000 10,375,000
- ------------------------------------------------------------------------------------------------------------------------
FelCor Lodging LP, 9.57% Sr. Nts., 6/1/11 1 12,000,000 12,375,000
- ------------------------------------------------------------------------------------------------------------------------
Linens `N Things, Inc., 11.132% Sr. Sec. Nts., 1/15/14 1,6 10,000,000 9,325,000
- ------------------------------------------------------------------------------------------------------------------------
Nova Chemicals Corp., 8.405% Sr. Unsec. Nts., 11/15/13 1 6,000,000 6,090,000
- ------------------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 11.757% Sr. Sec. Nts., 1/15/13 1,6 5,000,000 5,087,500
- ------------------------------------------------------------------------------------------------------------------------
SMART Modular Technologies, Inc., 11.008% Sr. Sec. Nts., 4/1/12 1 6,500,000 6,857,500
- ------------------------------------------------------------------------------------------------------------------------
SunGard Data Systems, Inc., 9.431% Sr. Unsec. Nts., 8/15/13 1,6 17,000,000 17,765,000
30 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES Continued
- ------------------------------------------------------------------------------------------------------------------------
XM Satellite Radio, Inc., 9.649% Sr. Nts., 5/1/13 1,6 $ 10,000,000 $ 9,275,000
---------------
Total Corporate Bonds and Notes (Cost $93,169,545) 93,851,281
UNITS
- ------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- ------------------------------------------------------------------------------------------------------------------------
Aladdin/OpBiz Gaming LLC Wts., Exp. 12/31/49 2,5 (Cost $0) 32,265 --
PRINCIPAL
AMOUNT
- ------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--5.6%
- ------------------------------------------------------------------------------------------------------------------------
Repurchase agreement (Principal Amount/Value $198,392,000, with a maturity
value of $198,420,712) with DB Alex Brown LLC, 5.21%, dated 7/31/06, to be
repurchased at $198,420,712 on 8/1/06, collateralized by U.S. Treasury Nts.,
4.75%, 3/31/11, with a value of $202,406,258 (Cost $198,392,000) $198,392,000 198,392,000
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $3,853,042,859) 109.8% 3,861,252,499
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (9.8) (343,631,042)
--------------------------------
NET ASSETS 100.0% $3,517,621,457
================================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Represents the current interest rate for a variable or increasing rate
security.
2. Illiquid security. The aggregate value of illiquid securities as of July
31, 2006 was $1,236,542,132, which represents 35.15% of the Fund's net
assets. See Note 6 of accompanying Notes.
3. This Senior Loan will settle after August 31, 2006, at which time the
interest rate will be determined.
4. All or a portion of the security has been segregated for collateral to
cover borrowings. See Note 8 of accompanying Notes.
5. Non-income producing security.
6. 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 $41,452,500 or 1.18%
of the Fund's net assets as of July 31, 2006.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
JULY 31, 2006
- ----------------------------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------------------------
Investments, at value (cost $3,853,042,859)--see accompanying statement of investments $ 3,861,252,499
- ----------------------------------------------------------------------------------------------------------
Cash 17,402,501
- ----------------------------------------------------------------------------------------------------------
Unrealized appreciation on unfunded loan commitments 40,769
- ----------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 103,147,125
Interest, dividends and principal paydowns 74,130,722
Shares of beneficial interest sold 7,271,010
Other 16,824
----------------
Total assets 4,063,261,450
- ----------------------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------
Unrealized depreciation on swap contracts 42,519
- ----------------------------------------------------------------------------------------------------------
Unrealized depreciation on unfunded loan commitments 112,309
- ----------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 311,639,403
Shares of beneficial interest redeemed 231,434,160
Distribution and service plan fees 773,867
Dividends 704,976
Shareholder communications 236,366
Transfer and shareholder servicing agent fees 235,168
Interest expense 1,519
Other 459,706
----------------
Total liabilities 545,639,993
- ----------------------------------------------------------------------------------------------------------
NET ASSETS $ 3,517,621,457
================
- ----------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ----------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 368,550
- ----------------------------------------------------------------------------------------------------------
Additional paid-in capital 3,556,716,148
- ----------------------------------------------------------------------------------------------------------
Accumulated net investment loss (71,369)
- ----------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (47,487,453)
- ----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 8,095,581
----------------
NET ASSETS $ 3,517,621,457
================
32 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- --------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $1,513,036,596 and
158,617,895 shares of beneficial interest outstanding) $9.54
Maximum offering price per share (net asset value plus sales charge of 3.50% of offering price) $9.89
- --------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $318,311,612 and 33,356,928 shares
of beneficial interest outstanding) $9.54
- --------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $1,686,272,247 and 176,574,823 shares
of beneficial interest outstanding) $9.55
- --------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $1,002 and 105 shares of beneficial interest outstanding) $9.54
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED JULY 31, 2006
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 245,862,983
- --------------------------------------------------------------------------------
Other income 2,681,070
- --------------------------------------------------------------------------------
Dividends 5,730
- --------------------------------------------------------------------------------
Total investment income 248,549,783
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 19,842,453
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 3,192,059
Class B 2,511,459
Class C 11,556,037
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 889,632
Class B 429,014
Class C 1,104,403
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 227,646
Class B 117,982
Class C 281,836
Class Y 2
- --------------------------------------------------------------------------------
Interest expense 2,366,605
- --------------------------------------------------------------------------------
Custodian fees and expenses 685,256
- --------------------------------------------------------------------------------
Trustees' compensation 46,664
- --------------------------------------------------------------------------------
Administration service fees 1,500
- --------------------------------------------------------------------------------
Other 1,621,665
--------------
Total expenses 44,874,213
Less waivers and reimbursements of expenses (4,400,068)
--------------
Net expenses 40,474,145
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 208,075,638
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments 2,122,188
Swap contracts (28,058)
--------------
Net realized gain 2,094,130
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (3,852,898)
Swap contracts (42,519)
Unfunded loan commitments (92,018)
--------------
Net change in unrealized appreciation (3,987,435)
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 206,182,333
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED JULY 31, 2006 2005
- -------------------------------------------------------------------------------------------------------
OPERATIONS
- -------------------------------------------------------------------------------------------------------
Net investment income $ 208,075,638 $ 114,764,840
- -------------------------------------------------------------------------------------------------------
Net realized gain (loss) 2,094,130 (10,412,104)
- -------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (3,987,435) 443,530
------------------------------------
Net increase in net assets resulting from operations 206,182,333 104,796,266
- -------------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
- -------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (89,147,228) (43,089,683)
Class B (21,052,892) (16,346,208)
Class C (98,356,356) (53,708,395)
Class Y (49) --
- -------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
Class A 475,757,742 666,081,728
Class B (26,085,861) 68,117,677
Class C 336,583,363 739,099,855
Class Y 1,000 --
- -------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------
Total increase 783,882,052 1,464,951,240
- -------------------------------------------------------------------------------------------------------
Beginning of period 2,733,739,405 1,268,788,165
------------------------------------
End of period (including accumulated net investment loss
of $71,369 and $44,205, respectively) $ 3,517,621,457 $ 2,733,739,405
====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF CASH FLOWS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED JULY 31, 2006
- ---------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
- ---------------------------------------------------------------------------------------
Net increase in net assets from operations $ 206,182,333
- ---------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from operations
to net cash used in operating activities:
Purchase of investment securities (4,052,612,928)
Proceeds from disposition of investment securities 3,415,106,258
Short term investment securities, net (76,076,599)
Premium amortization 3,485,053
Discount accretion (1,445,184)
Net realized gain on investments (2,094,130)
Net change in unrealized appreciation on investments 3,852,898
Net change in unrealized depreciation on unfunded loan commitments 92,018
Net change in unrealized depreciation on swaps 42,519
Decrease in receivable for securities sold 27,808,507
Increase in interest receivable (55,889,271)
Increase in other assets (10,309)
Decrease in payable for securities purchased (29,206,079)
Increase in payable for accrued expenses 448,060
----------------
Net cash used in operating activities (560,316,854)
- ---------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
- ---------------------------------------------------------------------------------------
Proceeds from bank borrowing 1,421,500,000
Payments on bank borrowing (1,421,500,000)
Proceeds from shares sold 1,558,123,349
Payment on shares redeemed (910,299,014)
Cash distributions paid (73,959,213)
----------------
Net cash provided by financing activities 573,865,122
- ---------------------------------------------------------------------------------------
Net increase in cash 13,548,268
- ---------------------------------------------------------------------------------------
Cash, beginning balance 3,854,233
----------------
Cash, ending balance $ 17,402,501
================
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $135,226,159.
Cash paid for interest on bank borrowings--$2,365,086.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER SENIOR FLOATING RATE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED JULY 31, 2006 2005 2004 2003 2002
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.54 $ 9.56 $ 9.24 $ 9.03 $ 9.51
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .66 1 .53 1 .49 .55 .54
Net realized and unrealized gain (loss) -- (.02) .30 .14 (.50)
---------------------------------------------------------------------------
Total from investment operations .66 .51 .79 .69 .04
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.66) (.53) (.47) (.48) (.52)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.54 $ 9.54 $ 9.56 $ 9.24 $ 9.03
===========================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 7.10% 5.45% 8.78% 7.91% 0.44%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,513,036 $1,038,746 $ 376,001 $ 44,028 $ 33,905
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,292,028 $ 776,029 $ 146,224 $ 35,298 $ 41,195
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 6.88% 5.63% 5.56% 6.23% 5.84%
Total expenses 1.11% 1.09% 1.19% 1.39% 1.42%
Expenses after payments and waivers and
reduction to custodian expenses 0.97% 0.89% 0.99% 1.19% 1.22%
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 104% 114% 155% 121% 4 92%
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.
37 | OPPENHEIMER SENIOR FLOATING RATE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED JULY 31, 2006 2005 2004 2003 2002
- -------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.54 $ 9.56 $ 9.24 $ 9.04 $ 9.51
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .60 1 .48 1 .46 .52 .49
Net realized and unrealized gain (loss) -- (.02) .28 .11 (.49)
------------------------------------------------------------------
Total from investment operations .60 .46 .74 .63 --
- -------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.60) (.48) (.42) (.43) (.47)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.54 $ 9.54 $ 9.56 $ 9.24 $ 9.04
=================================================================
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 6.49% 4.86% 8.18% 7.21% 0.05%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $318,312 $344,337 $277,043 $157,057 $176,760
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $334,997 $327,996 $201,260 $163,238 $206,869
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 6.27% 5.06% 5.04% 5.70% 5.33%
Total expenses 1.68% 1.66% 1.76% 1.93% 1.92%
Expenses after payments and waivers and
reduction to custodian expenses 1.54% 1.46% 1.56% 1.73% 1.72%
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 104% 114% 155% 121% 4 92%
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
CLASS C YEAR ENDED JULY 31, 2006 2005 2004 2003 2002
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.55 $ 9.57 $ 9.25 $ 9.04 $ 9.51
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .61 1 .48 1 .45 .52 .50
Net realized and unrealized gain (loss) -- (.02) .29 .12 (.50)
---------------------------------------------------------------------------
Total from investment operations .61 .46 .74 .64 --
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.61) (.48) (.42) (.43) (.47)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.55 $ 9.55 $ 9.57 $ 9.25 $ 9.04
===========================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 6.56% 4.92% 8.21% 7.35% 0.05%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,686,272 $1,350,656 $ 615,744 $ 207,433 $ 236,111
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,542,199 $1,065,783 $ 346,347 $ 210,987 $ 303,123
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 6.36% 5.11% 5.05% 5.73% 5.37%
Total expenses 1.61% 1.60% 1.71% 1.91% 1.92%
Expenses after payments and waivers and
reduction to custodian expenses 1.47% 1.40% 1.51% 1.71% 1.72%
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 104% 114% 155% 121% 4 92%
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
- --------------------------------------------------------------------------------
CLASS Y PERIOD ENDED JULY 31, 2006 1
- --------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------
Net asset value, beginning of period $9.54
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 2 .47
Net realized and unrealized gain --
------
Total from investment operations .47
- --------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.47)
- --------------------------------------------------------------------------------
Net asset value, end of period $9.54
======
- --------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 5.04%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 0.96%
Expenses after payments and waivers and
reduction to custodian expenses 0.85%
- --------------------------------------------------------------------------------
Portfolio turnover rate 104%
1. For the period from November 28, 2005 (inception of offering) to July 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.
40 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Senior Floating Rate Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a closed-end management
investment company. The Fund seeks as high a level of current income and
preservation of capital as is consistent with investing primarily in senior
floating rate loans and other debt securities. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, 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
41 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued 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.
42 | OPPENHEIMER SENIOR FLOATING RATE FUND
As of July 31, 2006, securities with an aggregate market value of
$3,569,009,218, representing 101.46% of the Fund's net assets were comprised of
Senior Loans, of which $1,236,542,132 representing 35.15% of the Fund's net
assets, were illiquid.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3,4,5 TAX PURPOSES
----------------------------------------------------------------------------------
$607,440 $-- $46,886,443 $7,499,014
1. As of July 31, 2006, the Fund had $41,447,704 of net capital loss
carryforwards available to offset future realized capital gains, if any,
and thereby reduce future taxable gain distributions. As of July 31, 2006,
details of the capital loss carryforwards were as follows:
EXPIRING
------------------------------
2010 $ 10,765,372
2011 26,003,298
2014 4,679,034
------------
TOTAL $ 41,447,704
============
43 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
2. As of July 31, 2006, the Fund had $5,438,726 of post-October losses
available to offset future realized capital gains, if any. Such losses, if
unutilized, will expire in 2015.
3. The Fund had $13 of post-October foreign currency losses which were
deferred.
4. During the fiscal year ended July 31, 2006, the Fund did not utilize any
capital loss carryforward.
5. During the fiscal year ended July 31, 2005, the Fund utilized $3,066,072
of capital loss carryforward to offset capital gains realized in that
fiscal year.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly, the
following amounts have been reclassified for July 31, 2006. Net assets of the
Fund were unaffected by the reclassifications.
INCREASE TO
REDUCTION TO ACCUMULATED NET
ACCUMULATED NET REALIZED LOSS ON
INVESTMENT LOSS INVESTMENTS
--------------------------------------------------
$453,723 $453,723
The tax character of distributions paid during the years ended July 31, 2006 and
July 31, 2005 was as follows:
YEAR ENDED YEAR ENDED
JULY 31, 2006 JULY 31, 2005
--------------------------------------------------------------------
Distributions paid from:
Ordinary income $208,556,525 $113,144,286
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of July 31, 2006 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities $ 3,853,643,868
Federal tax cost of other investments 21,659,176
----------------
Total federal tax cost $ 3,875,303,044
================
Gross unrealized appreciation $ 17,585,283
Gross unrealized depreciation (10,086,269)
----------------
Net unrealized appreciation $ 7,499,014
================
- --------------------------------------------------------------------------------
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
44 | OPPENHEIMER SENIOR FLOATING RATE FUND
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 on the ex-dividend date. Income distributions, if any, are declared
daily and paid monthly. Capital gain distributions, if any, are declared and
paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and amortization
of premium, is accrued as earned.
- --------------------------------------------------------------------------------
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:
45 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
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 busi- ness 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 is normally expected to be the regular
business day that is the Repurchase Request Deadline. If that day is
not a normal business day, then the Repurchase Pricing Date will be
the following regular business day. 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.
Each quarter, the Fund's Board will determine the number of shares that
the Fund will offer to repurchase in a particular Repurchase Offer. The
Repurchase Offer Amount will be at least 5% but not more than 25% of the total
number of shares of all classes of the Fund (in the aggregate) outstanding on
the Repurchase Request Deadline. If shareholders tender more than the Repurchase
Offer Amount for a particular Repurchase Offer, the Fund may repurchase up to an
additional 2% of the shares outstanding on the Repurchase Request Deadline.
For the year ended July 31, 2006, the Fund extended four 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
April 30, 2006 20 67,532,931 21,455,241
July 31, 2006 20 73,709,951 26,440,700
The Fund is authorized to issue an unlimited number of shares of each class and
at the date of this report has registered 903,615,584 shares, par value $0.001
each. Transactions in shares of beneficial interest were as follows:
YEAR ENDED JULY 31, 2006 1 YEAR ENDED JULY 31, 2005
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------
CLASS A
Sold 87,342,048 $ 835,414,302 88,829,120 $ 850,199,762
Dividends and/or
distributions reinvested 5,802,314 55,477,939 3,041,815 29,063,026
Repurchased (43,432,974) (415,134,499) (22,302,293) (213,181,060)
---------------------------------------------------------------
Net increase 49,711,388 $ 475,757,742 69,568,642 $ 666,081,728
===============================================================
- --------------------------------------------------------------------------------------------
CLASS B
Sold 7,041,024 $ 67,345,651 12,098,323 $ 115,828,765
Dividends and/or
distributions reinvested 1,509,521 14,439,712 1,132,369 10,829,378
Repurchased (11,279,063) (107,871,224) (6,120,311) (58,540,466)
---------------------------------------------------------------
Net increase (decrease) (2,728,518) $ (26,085,861) 7,110,381 $ 68,117,677
===============================================================
46 | OPPENHEIMER SENIOR FLOATING RATE FUND
YEAR ENDED JULY 31, 2006 1 YEAR ENDED JULY 31, 2005
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------
CLASS C
Sold 69,208,872 $ 662,633,406 92,843,309 $ 889,756,237
Dividends and/or
distributions reinvested 6,822,645 65,308,508 3,736,525 35,751,426
Repurchased (40,899,600) (391,358,551) (19,487,048) (186,407,808)
-----------------------------------------------------------------
Net increase 35,131,917 $ 336,583,363 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 year ended July 31, 2006, for Class A, Class B and Class C and for
the period from November 28, 2005 (inception of offering) to July 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 year ended July 31, 2006, were as follows:
PURCHASES SALES
--------------------------------------------------------------------
Investment securities $4,052,612,928 $3,415,106,258
- --------------------------------------------------------------------------------
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
average annual rate as shown in the following table:
FEE SCHEDULE
------------------------------------------------
Up to $200 million of net assets 0.75%
Next $200 million of net assets 0.72
Next $200 million of net assets 0.69
Next $200 million of net assets 0.66
Over $800 million of net assets 0.60
- --------------------------------------------------------------------------------
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 account fee. For the year ended July 31, 2006, the Fund paid
$2,380,819 to OFS for services to the Fund.
47 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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
periods. 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 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 July 31, 2006 for Class B and Class C shares were $7,522,593 and
$30,840,896, respectively. Fees incurred by the Fund under the plans are
detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the following table for the period
indicated.
48 | OPPENHEIMER SENIOR FLOATING RATE FUND
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
July 31, 2006 $874,206 $33,188 $324,197 $362,328
- --------------------------------------------------------------------------------
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 $4,400,068 for the year ended July 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. The Fund also records an increase or
decrease to unrealized gain (loss) in an amount equal to the daily valuation.
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 July 31, 2006 is as
follows:
NOTIONAL ANNUAL
AMOUNT INTEREST
REFERENCE RECEIVED BY RATE PAID
DEBT THE FUND UPON BY THE UNREALIZED
COUNTERPARTY OBLIGATION CREDIT EVENT FUND DEPRECIATION
- ----------------------------------------------------------------------------------------------------
Credit Suisse
First Boston, Inc.
(Nassau Branch) Neiman-Marcus Group, Inc. $2,000,000 1.95% $42,519
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. The
49 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. CREDIT DEFAULT SWAP CONTRACTS Continued
Fund also records an increase or decrease to unrealized gain (loss) in an amount
equal to the daily valuation. 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 between the value of the security received and
the notional amount paid is recorded as realized loss. As of July 31, 2006,
there were no such credit default swaps outstanding.
- --------------------------------------------------------------------------------
6. ILLIQUID SECURITIES
As of July 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. Many
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 $57,990,846 at July 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 $36,398,769 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 DATE AMOUNT APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
Collins & Aikman Corp.,
Sr. Sec. Credit Facilities
Revolving Credit Loan,
Debtor in Possession 0.50% 8/31/07 $ 3,363,829 $ -- $ 8,764
- -----------------------------------------------------------------------------------------------------------------
Delphi Corp., Sr. Sec. Credit
Facilities Revolving Credit Loan 5.00 6/18/09 373,609 8,677 --
- -----------------------------------------------------------------------------------------------------------------
Federal Mogul Corp., Sr. Sec
Credit Facilities Pre-Petition
Revolving Credit Loan,
Tranche B 1.75 12/30/06 468,160 3,231 --
- -----------------------------------------------------------------------------------------------------------------
Pinnacle Foods Group, Inc.,
Sr. Sec. Credit Facilities Revolving
Credit Loan 0.73 1/25/09 9,725,000 -- 39,766
50 | OPPENHEIMER SENIOR FLOATING RATE FUND
COMMITMENT
INTEREST TERMINATION UNFUNDED UNREALIZED UNREALIZED
RATE DATE AMOUNT APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
Sunny Delight Beverages Co.,
Sr. Sec. Credit Facilities
Revolving Credit Loan 0.50 8/23/09 $ 4,411,479 $ 28,861 $ 5,789
- -----------------------------------------------------------------------------------------------------------------
TriMas Corp., Sr. Sec. Credit
Facilities Revolving Credit Loan 3.50 12/31/07 3,250,000 -- 57,990
--------------------------------------------
$21,592,077 $ 40,769 $112,309
============================================
- --------------------------------------------------------------------------------
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.
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 $900
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 $900 million facility size.
For the year ended July 31, 2006, the average daily loan balance was
$52,055,616 at an average daily interest rate of 4.374%. The Fund had no
borrowings outstanding at July 31, 2006. The Fund had gross borrowings and gross
loan repayments of $1,421,500,000 and $1,421,500,000, respectively, during the
year ended July 31, 2006. The maximum amount of borrowings outstanding at any
month-end during the year ended July 31, 2006 was $77,900,000. The Fund paid
$419,063 in fees and $2,365,086 in interest during the year ended July 31, 2006.
- --------------------------------------------------------------------------------
9. RECENT ACCOUNTING PRONOUNCEMENT
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES.
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an
enterprise's financial statements in accordance with FASB Statement No. 109,
Accounting for Income Taxes. FIN 48 requires the evaluation of tax positions
taken in the course of preparing the Fund's tax returns to determine whether it
is "more-likely-than-not" that tax positions taken in the Fund's tax return will
be ultimately sustained. A tax liability and expense must be recorded in respect
of any tax position that, in Management's judgment, will not
51 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
9. RECENT ACCOUNTING PRONOUNCEMENT Continued
be fully realized. FIN 48 is effective for fiscal years beginning after December
15, 2006. As of July 31, 2006, the Manager is evaluating the implications of FIN
48. Its impact in the Fund's financial statements has not yet been determined.
- --------------------------------------------------------------------------------
10. LITIGATION
A consolidated amended complaint was filed as a putative class action against
the Manager and the Transfer Agent and other defendants (including 51 of the
Oppenheimer funds including the Fund) in the U.S. District Court for the
Southern District of New York on January 10, 2005 and was amended on March 4,
2005. The complaint alleged, among other things, that the Manager charged
excessive fees for distribution and other costs, and that by permitting and/or
participating in those actions, the Directors/Trustees and the Officers of the
funds breached their fiduciary duties to fund shareholders under the Investment
Company Act of 1940 and at common law. The plaintiffs sought unspecified
damages, an accounting of all fees paid, and an award of attorneys' fees and
litigation expenses.
In response to the defendants' motions to dismiss the suit, seven of the
eight counts in the complaint, including the claims against certain of the
Oppenheimer funds, 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, by court order dated March 10, 2006,
and the remaining count against the Manager and the Transfer Agent was dismissed
with prejudice by court order dated April 5, 2006. The plaintiffs filed an
appeal of those dismissals on May 11, 2006.
The Manager believes that the allegations contained in the complaint are
without merit and that there are substantial grounds to sustain the district
court's rulings. The Manager also believes that it is premature to render any
opinion as to the likelihood of an outcome unfavorable to it, the funds, the
Directors/Trustees or the Officers on the appeal of the decisions of the
district court, 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
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER SENIOR FLOATING RATE
FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Senior Floating Rate Fund, including the statement of investments,
as of July 31, 2006, and the related statement of operations and cash flows for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
The Fund is not required to have, nor were we engaged to perform, an audit of
its internal control over financial reporting. Our audit includes consideration
of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of July 31, 2006, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Senior Floating Rate Fund as of July 31, 2006, the results of its
operations and cash flows for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the five years in the period then ended, in conformity with
accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Denver, Colorado
September 14, 2006
53 | OPPENHEIMER SENIOR FLOATING RATE FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2007, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2006. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year ended July
31, 2006 are eligible for the corporate dividend-received deduction.
Dividends, if any, paid by the Fund during the fiscal year ended July 31,
2006 which are not designated as capital gain distributions, may be eligible for
lower individual income tax rates to the extent that the Fund has received
qualified dividend income as stipulated by recent tax legislation. In early
2007, shareholders of record will receive information regarding the precentage
of distributions that are eligible for lower individual income tax rates. The
amount will be the maximum amount allowed.
Recent tax legislation allows a regulated investment company to designate
distributions not designated as capital gain distributions, as either interest
related dividends or short-term capital gain dividends, both of which are exempt
from the U.S. withholding tax applicable to non U.S. taxpayers. For the fiscal
year ended, $206,444,257 or 98.98% of the ordinary distributions paid by the
Fund qualifies as an interest related dividend.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
54 | 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.
55 | OPPENHEIMER SENIOR FLOATING RATE FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS
FUND, LENGTH OF SERVICE, AGE HELD; NUMBER OF PORTFOLIOS IN THE FUND COMPLEX CURRENTLY OVERSEEN
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL,
TRUSTEES COLORADO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, OR UNTIL HIS OR HER
RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
WILLIAM L. ARMSTRONG, Chairman of the following private mortgage banking companies: Cherry Creek
Chairman of the Board of Mortgage Company (since 1991), Centennial State Mortgage Company (since
Trustees (since 2003), 1994), and The El Paso Mortgage Company (since 1993); Chairman of the fol-
Trustee (since 1999) lowing private companies: Ambassador Media Corporation (since 1984) and
Age: 69 Broadway Ventures (since 1984); Director of the following: Helmerich & Payne,
Inc. (oil and gas drilling/production company) (since 1992), Campus Crusade
for Christ (since 1991) and The Lynde and Harry Bradley Foundation, Inc. (non-
profit organization) (since 2002); former Chairman of the following: Transland
Financial Services, Inc. (private mortgage banking company) (1997-2003), Great
Frontier Insurance (insurance agency) (1995-2000), Frontier Real Estate, Inc. (resi-
dential real estate brokerage) (1994-2000) and Frontier Title (title insurance
agency) (1995-2000); former Director of the following: UNUMProvident (insur-
ance company) (1991-2004), Storage Technology Corporation (computer
equipment company) (1991-2003) and International Family Entertainment (tele-
vision channel) (1992-1997); U.S. Senator (January 1979-January 1991). Oversees
38 portfolios in the OppenheimerFunds complex.
ROBERT G. AVIS, Director and President of A.G. Edwards Capital, Inc. (General Partner of private
Trustee (since 1999) equity funds) (until February 2001); Chairman, President and Chief Executive
Age: 75 Officer of A.G. Edwards Capital, Inc. (until March 2000); Director of A.G. Edwards
& Sons, Inc. (brokerage company) (until 2000) and A.G. Edwards Trust Company
(investment adviser) (until 2000); Vice Chairman and Director of A.G. Edwards,
Inc. (until March 1999); Vice Chairman of A.G. Edwards & Sons, Inc. (until March
1999); Chairman of A.G. Edwards Trust Company (until March 1999) and A.G.E.
Asset Management (investment adviser) (until March 1999). Oversees 38 portfo-
lios in the OppenheimerFunds complex.
GEORGE C. BOWEN, Assistant Secretary and Director of Centennial Asset Management Corporation
Trustee (since 1999) (December 1991-April 1999); President, Treasurer and Director of Centennial
Age: 69 Capital Corporation (June 1989-April 1999); Chief Executive Officer and Director
of MultiSource Services, Inc. (March 1996-April 1999); Mr. Bowen held several
positions with the Manager and with subsidiary or affiliated companies of the
Manager (September 1987-April 1999). Oversees 38 portfolios in the
OppenheimerFunds complex.
EDWARD L. CAMERON, Member of The Life Guard of Mount Vernon (George Washington historical site)
Trustee (since 1999) (since June 2000); Director of Genetic ID, Inc. (biotech company) (March 2001-May
Age: 68 2002); Partner at PricewaterhouseCoopers LLP (accounting firm) (July 1974-June
1999); Chairman of Price Waterhouse LLP Global Investment Management Industry
Services Group (accounting firm) (July 1994-June 1998). Oversees 38 portfolios in
the OppenheimerFunds complex.
JON S. FOSSEL, Director of UNUMProvident (insurance company) (since June 2002); Director
Trustee (since 1999) of Northwestern Energy Corp. (public utility corporation) (since November
Age: 64 2004); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director
of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-
February 2003 and since February 2005); Chairman and Director (until October
1996) and President and Chief Executive Officer (until October 1995) of the
Manager; President, Chief Executive Officer and Director of the following:
56 | OPPENHEIMER SENIOR FLOATING RATE FUND
JON S. FOSSEL, Oppenheimer Acquisition Corp. ("OAC") (parent holding company of the Manager),
Continued Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October
1995). Oversees 38 portfolios in the OppenheimerFunds complex.
SAM FREEDMAN, Director of Colorado Uplift (charitable organization) (since September 1984). Mr.
Trustee (since 1999) Freedman held several positions with the Manager and with subsidiary or affili-
Age: 65 ated companies of the Manager (until October 1994). Oversees 38 portfolios in
the OppenheimerFunds complex.
BEVERLY L. HAMILTON, Trustee of Monterey Institute for International Studies (educational organiza-
Trustee (since 2005) tion) (since February 2000); Board Member of Middlebury College (educational
Age: 59 organization) (since December 2005); Director of The California Endowment
(philanthropic organization) (since April 2002); Director (February 2002-2005)
and Chairman of Trustees (since 2006) of the Community Hospital of Monterey
Peninsula; Director (October 1991-2005) and Vice Chairman (since 2006) of
American Funds' Emerging Markets Growth Fund, Inc. (mutual fund); President
of ARCO Investment Management Company (February 1991-April 2000);
Member of the investment committees of The Rockefeller Foundation (since
2001) and The University of Michigan (since 2000); Advisor at Credit Suisse First
Boston's Sprout venture capital unit (venture capital fund) (1994-January 2005);
Trustee of MassMutual Institutional Funds (investment company) (1996-June
2004); Trustee of MML Series Investment Fund (investment company) (April
1989-June 2004); Member of the investment committee of Hartford Hospital
(2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003).
Oversees 38 portfolios in the OppenheimerFunds complex.
ROBERT J. MALONE, Director of Jones International University (educational organization) (since
Trustee (since 2005) August 2005); Chairman, Chief Executive Officer and Director of Steele Street
Age: 62 State Bank (commercial banking) (since August 2003); Director of Colorado
UpLIFT (charitable organization) (since 1986); Trustee of the Gallagher Family
Foundation (non-profit organization) (since 2000); Former Chairman of U.S.
Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National
Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate
investment trust) (1993-2000); Director of Jones Knowledge, Inc. (2001-July
2004); and Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-
February 2004). Oversees 38 portfolios in the OppenheimerFunds complex.
F. WILLIAM MARSHALL, JR., Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds)
Trustee (since 2000) (investment company) (since 1996) and MML Series Investment Fund (invest-
Age: 64 ment company) (since 1996); Trustee (since 1987) and Chairman (1994-2005) of
the Investment Committee of the Worcester Polytech Institute (private univer-
sity); President and Treasurer of the SIS Funds (private charitable fund) (since
January 1999); Chairman of SIS & Family Bank, F.S.B. (formerly SIS Bank) (commer-
cial bank) (January 1999-July 1999); and Executive Vice President of Peoples
Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999).
Oversees 40 portfolios in the OppenheimerFunds complex.
- -----------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH
AND OFFICER FLOOR, NEW YORK, NEW YORK 10281-1008. MR. MURPHY SERVES AS A TRUSTEE FOR AN INDEF-
INITE TERM, OR UNTIL HIS RESIGNATION, RETIREMENT, DEATH OR REMOVAL AND AS AN OFFICER FOR
AN INDEFINITE TERM, OR UNTIL HIS RESIGNATION, RETIREMENT, DEATH OR REMOVAL. MR.
MURPHY IS AN INTERESTED TRUSTEE DUE TO HIS POSITIONS WITH OPPENHEIMERFUNDS, INC.
AND ITS AFFILIATES.
57 | OPPENHEIMER SENIOR FLOATING RATE FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since June 2001) and President
Trustee, President and (since September 2000) of the Manager; President and director or trustee of
Principal Executive Officer other Oppenheimer funds; President and Director of OAC and of Oppenheimer
(since 2001) Partnership Holdings, Inc. (holding company subsidiary of the Manager) (since July
Age: 57 2001); Director of OppenheimerFunds Distributor, Inc. (subsidiary of the Manager)
(since November 2001); Chairman and Director of Shareholder Services, Inc. and
of Shareholder Financial Services, Inc. (transfer agent subsidiaries of the Manager)
(since July 2001); President and Director of OppenheimerFunds Legacy Program
(charitable trust program established by the Manager) (since July 2001); Director
of the following investment advisory subsidiaries of the Manager: OFI Institutional
Asset Management, Inc., Centennial Asset Management Corporation, Trinity
Investment Management Corporation and Tremont Capital Management, Inc.
(since November 2001), HarbourView Asset Management Corporation and OFI
Private Investments, Inc. (since July 2001); President (since November 2001) and
Director (since July 2001) of Oppenheimer Real Asset Management, Inc.; Executive
Vice President of Massachusetts Mutual Life Insurance Company (OAC's parent
company) (since February 1997); Director of DLB Acquisition Corporation (holding
company parent of Babson Capital Management LLC) (since June 1995); Member
of the Investment Company Institute's Board of Governors (since October 3, 2003);
Chief Operating Officer of the Manager (September 2000-June 2001); President
and Trustee of MML Series Investment Fund and MassMutual Select Funds (open-
end investment companies) (November 1999-November 2001); Director of C.M.
Life Insurance Company (September 1999-August 2000); President, Chief Executive
Officer and Director of MML Bay State Life Insurance Company (September 1999-
August 2000); Director of Emerald Isle Bancorp and Hibernia Savings Bank
(wholly-owned subsidiary of Emerald Isle Bancorp) (June 1989-June 1998).
Oversees 91 portfolios in the OppenheimerFunds complex.
- -----------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS OF THE THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MR. ZACK, TWO
FUND WORLD FINANCIAL CENTER, 225 LIBERTY STREET, NEW YORK, NEW YORK 10281-1008, FOR MS.
HUI AND MESSRS. VANDEHEY, WELSH, WIXTED AND ZIMMER, 6803 S. TUCSON WAY,
CENTENNIAL, COLORADO 80112-3924. EACH OFFICER SERVES FOR AN INDEFINITE TERM OR UNTIL
HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
ARTHUR ZIMMER, Senior Vice President of the Manager (since June 1997) and of HarbourView
Vice President and Portfolio Asset Management Corporation (since April 1999); an officer of 1 portfolio
Manager (since 1999) in the OppenheimerFunds complex. Formerly Vice President of the Manager
Age: 60 (October 1990-June 1997); Vice President of Centennial Asset Management
Corporation (June 1997-November 2001).
MARGARET HUI, Assistant Vice President of the Manager since October 1999; Vice President-
Assistant Vice President and Syndications of Sanwa Bank California (January 1998-September 1999). An officer
Associate Portfolio Manager of 1 portfolio in the OppenheimerFunds complex.
(since 1999)
Age: 46
JOSEPH WELSH, Vice President of the Manager (since December 2000); a high yield bond analyst
Assistant Vice President and for the Manager (since January 1995); Vice President of HarbourView Asset
Portfolio Manager Management Corporation (since September 2002); Assistant Vice President of
(since 1999) the Manager (December 1996-November 2000). An officer of 1 portfolio in the
Age: 42 OppenheimerFunds complex.
58 | OPPENHEIMER SENIOR FLOATING RATE FUND
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since
Vice President and Chief March 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial
Compliance Officer Asset Management Corporation and Shareholder Services, Inc. (since June 1983);
(since 2004) Vice President and Director of Internal Audit of the Manager (1997-February
Age: 56 2004). An officer of 91 portfolios in the OppenheimerFunds complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999); Treasurer of
Treasurer and Principal the following: HarbourView Asset Management Corporation, Shareholder Financial
Financial and Accounting Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management
Officer (since 1999) Corporation, and Oppenheimer Partnership Holdings, Inc. (since March 1999), OFI
Age: 46 Private Investments, Inc. (since March 2000), OppenheimerFunds International Ltd.
and OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management,
Inc. (since November 2000), and OppenheimerFunds Legacy Program (since June
2003); Treasurer and Chief Financial Officer of OFI Trust Company (trust company
subsidiary of the Manager) (since May 2000); Assistant Treasurer of the following:
OAC (since March 1999), Centennial Asset Management Corporation (March 1999-
October 2003) and OppenheimerFunds Legacy Program (April 2000-June 2003);
Principal and Chief Operating Officer of Bankers Trust Company-Mutual Fund
Services Division (March 1995-March 1999). An officer of 91 portfolios in the
OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since March
Vice President and Secretary 2002) of the Manager; General Counsel and Director of the Distributor (since
(since 2001) December 2001); General Counsel of Centennial Asset Management Corporation
Age: 58 (since December 2001); Senior Vice President and General Counsel of HarbourView
Asset Management Corporation (since December 2001); Secretary and General
Counsel of OAC (since November 2001); Assistant Secretary (since September
1997) and Director (since November 2001) of OppenheimerFunds International
Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer
Partnership Holdings, Inc. (since December 2002); Director of Oppenheimer Real
Asset Management, Inc. (since November 2001); Senior Vice President, General
Counsel and Director of Shareholder Financial Services, Inc. and Shareholder
Services, Inc. (since December 2001); Senior Vice President, General Counsel and
Director of OFI Private Investments, Inc. and OFI Trust Company (since November
2001); Vice President of OppenheimerFunds Legacy Program (since June 2003);
Senior Vice President and General Counsel of OFI Institutional Asset Management,
Inc. (since November 2001); Director of OppenheimerFunds (Asia) Limited (since
December 2003); Senior Vice President (May 1985-December 2003), Acting
General Counsel (November 2001-February 2002) and Associate General Counsel
(May 1981-October 2001) of the Manager; Assistant Secretary of the following:
Shareholder Services, Inc. (May 1985-November 2001), Shareholder Financial
Services, Inc. (November 1989-November 2001), and OppenheimerFunds
International Ltd. (September 1997-November 2001). An officer of 91 portfolios
in the OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND OFFICERS AND IS AVAILABLE WITHOUT CHARGE UPON
REQUEST, BY CALLING 1.800.525.7048.
59 | OPPENHEIMER SENIOR FLOATING RATE FUND
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the registrant has determined that Edward L. Cameron,
the Chairman of the Board's Audit Committee, and George C. Bowen, a member of
the Board's Audit Committee, are audit committee financial experts and that
Messrs. Cameron and Bowen are "independent" for purposes of this Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $37,000 in fiscal 2006 and $28,000 in fiscal 2005.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $1,500 in fiscal 2006 and no such fees in fiscal 2005.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees to the registrant during the last two fiscal
years.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $9,161 in fiscal 2006 and no such fees in fiscal 2005.
The principal accountant for the audit of the registrant's annual financial
statements billed $2,625 in fiscal 2006 and no such fees for fiscal 2005 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
(e) (1) During its regularly scheduled periodic meetings, the registrant's
audit committee will pre-approve all audit, audit-related, tax and other
services to be provided by the principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its Chairman
for any subsequent new engagements that arise between regularly scheduled
meeting dates
provided that any fees such pre-approved are presented to the audit
committee at its next regularly scheduled meeting.
Under applicable laws, pre-approval of non-audit services maybe waived
provided that: 1) the aggregate amount of all such services provided
constitutes no more than five percent of the total amount of fees paid by
the registrant to it principal accountant during the fiscal year in which
services are provided 2) such services were not recognized by the
registrant at the time of engagement as non-audit services and 3) such
services are promptly brought to the attention of the audit committee of
the registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $13,286 in fiscal 2006 and no such fees in
fiscal 2005 to the registrant and the registrant's investment adviser or
any entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant related to
non-audit fees. Those billings did not include any prohibited non-audit
services as defined by the Securities Exchange Act of 1934.
(h) No such services were rendered.
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. The Fund invests exclusively in non-voting securities.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
The Fund's portfolio is managed by Arthur J. Zimmer, Joseph Welsh and Margaret
Hui who are primarily responsible for the day-to-day management of the Fund's
investments.
Mr. Zimmer has been a manager of the Fund's portfolio since September 1999. Mr.
Zimmer has been a Senior Vice President of the Manager since June 1997 and of
HarbourView Asset Management Corporation since April 1999. He was formerly Vice
President of the Manager from October 1990 to June 1997 and Vice President of
Centennial Asset Management Corporation from June 1997 to November 2001.
Mr. Welsh has been a manager of the Fund's portfolio since September 1999. Mr.
Welsh has been a Vice President of the Manager since December 2000, a high yield
bond analyst since January 1995, an Assistant Vice President of the Manager from
December 1996 to November 2000 and a Vice President of HarbourView Asset
Management Corporation since September 2002.
Ms. Hui has been an associate portfolio manager of the Fund since October 1999.
Ms. Hui has been an Assistant Vice President of the Manager since October 1999.
She was formerly Vice President of Syndications at Sanwa Bank California from
January 1998 to September 1999.
In addition to managing the Fund's investment portfolio, each Portfolio Manager
also manages other investment portfolios and other accounts on behalf of the
Manager or its affiliates. The following table provides information regarding
the other portfolios and accounts managed by each Portfolio Manager as of July
31, 2006. No account has a performance-based advisory fee:
TOTAL ASSETS TOTAL ASSETS IN
REGISTERED IN REGISTERED OTHER POOLED OTHER POOLED TOTAL ASSETS
INVESTMENT INVESTMENT INVESTMENT INVESTMENT OTHER IN OTHER
COMPANIES COMPANIES VEHICLES VEHICLES ACCOUNTS ACCOUNTS
PORTFOLIO MANAGER MANAGED MANAGED 1 MANAGED MANAGED 1 MANAGED MANAGED 2
- ---------------------------------------------------------------------------------------------------------------
Arthur J. Zimmer 1 $3,775.8 None None None None
- ---------------------------------------------------------------------------------------------------------------
Joseph Welsh 1 $3,775.8 None None None None
- ---------------------------------------------------------------------------------------------------------------
Margaret Hui 1 $3,775.8 None None None None
1. In millions.
2. Does not include personal accounts of portfolio managers and their
families, which are subject to the Code of Ethics.
As indicated above, the Portfolio Managers also manage other funds and accounts.
Potentially, at times, those responsibilities could conflict with the interests
of the Fund. That may occur whether the investment strategies of the other fund
or account are the same as, or different from, the Fund's investment objectives
and strategies. For example, the Portfolio Managers may need to allocate
investment opportunities between the Fund and another fund or account having
similar objectives or strategies, or he may need to execute transactions for
another fund or
account that could have a negative impact on the value of securities held by the
Fund. Not all funds and accounts advised by the Manager have the same management
fee. If the management fee structure of another fund or account is more
advantageous to the Manager than the fee structure of the Fund, the Manager
could have an incentive to favor the other fund or account. However, the
Manager's compliance procedures and Code of Ethics recognize the Manager's
fiduciary obligations to treat all of its clients, including the Fund, fairly
and equitably, and are designed to preclude the Portfolio Managers from favoring
one client over another. It is possible, of course, that those compliance
procedures and the Code of Ethics may not always be adequate to do so. At
different times, the Fund's Portfolio Managers may manage other funds or
accounts with investment objectives and strategies that are similar to those of
the Fund, or may manage funds or accounts with investment objectives and
strategies that are different from those of the Fund.
The Fund's Portfolio Managers are employed and compensated by the Manager, not
the Fund. Under the Manager's compensation program for its portfolio managers
and portfolio analysts, their compensation is based primarily on the investment
performance results of the funds and accounts they manage, rather than on the
financial success of the Manager. This is intended to align the portfolio
managers and analysts interests with the success of the funds and accounts and
their shareholders. The Manager's compensation structure is designed to attract
and retain highly qualified investment management professionals and to reward
individual and team contributions toward creating shareholder value. As of July
31, 2006 the Portfolio Managers' compensation consisted of three elements: a
base salary, an annual discretionary bonus and eligibility to participate in
long-term awards of options and appreciation rights in regard to the common
stock of the Manager's holding company parent. Senior portfolio managers may
also be eligible to participate in the Manager's deferred compensation plan.
To help the Manager attract and retain talent, the base pay component of each
portfolio manager is reviewed regularly to ensure that it reflects the
performance of the individual, is commensurate with the requirements of the
particular portfolio, reflects any specific competence or specialty of the
individual manager, and is competitive with other comparable positions. The
annual discretionary bonus is determined by senior management of the Manager and
is based on a number of factors, including a fund's pre-tax performance for
periods of up to five years, measured against an appropriate Lipper benchmark
selected by management. The Lipper benchmark with respect to the Fund is Lipper
- - Loan Participation Funds. Other factors considered include management quality
(such as style consistency, risk management, sector coverage, team leadership
and coaching) and organizational development. The Portfolio Managers'
compensation is not based on the total value of the Fund's portfolio assets,
although the Fund's investment performance may increase those assets. The
compensation structure is also intended to be internally equitable and serve to
reduce potential conflicts of interest between the Fund and other funds and
accounts managed by the Portfolio Managers. The compensation structure of the
other funds and accounts managed by the Portfolio Managers is the same as the
compensation structure of the Fund, described above.
As of July 31, 2006 each Portfolio Manager beneficially owned shares of the Fund
as follows:
-----------------------------------------------------------------------
RANGE OF SHARES BENEFICIALLY
PORTFOLIO MANAGER OWNED IN THE FUND
-----------------------------------------------------------------------
ARTHUR J. ZIMMER None
-----------------------------------------------------------------------
JOSEPH WELSH None
-----------------------------------------------------------------------
MARGARET HUI None
-----------------------------------------------------------------------
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
REGISTRANT PURCHASES OF EQUITY SECURITIES
- ------------------------------------------------------------------------------------------------------------------
Total Number of
Shares Purchased as
Part of Publicly Maximum Number of Shares
Total Number of Average Price Announced Plans or that May Yet Be Purchased
Period Shares Purchased Paid per Share Programs Under the Plans or Programs
- ------------------------------------------------------------------------------------------------------------------
October 3, Class A - 10,040,416 Class A - $9.55 Class A - 10,040,416 0
2005 through Class B - 2,069,431 Class B - $9.56 Class B - 2,069,431
October 31, Class C - 7,434,882 Class C - $9.56 Class C - 7,434,882
2005 1
- ------------------------------------------------------------------------------------------------------------------
January 3. Class A - 9,064,016 Class A - $9.55 Class A - 9,064,016 0
2006 through Class B - 2,159,554 Class B - $9.56 Class B - 2,159,554
January 31, Class C - 10,000,756 Class C - $9.56 Class C - 10,000,756
2006 2 Class Y - 0 Class Y - $9.55 Class Y - 0
- ------------------------------------------------------------------------------------------------------------------
April 3, 2006 Class A - 9,862,702 Class A - $9.60 Class A - 9,862,702 0
through April Class B - 1,762,479 Class B - $9.60 Class B - 1,762,479
28, 2006 3 Class C - 9,830,060 Class C - $9.61 Class C - 9,830,060
Class Y - 0 Class Y - $9.60 Class Y - 0
- ------------------------------------------------------------------------------------------------------------------
July 3, 2006 Class A - 13,040,636 Class A - $9.54 Class A - 13,040,636 0
through July Class B - 1,931,597 Class B - $9.54 Class B - 1,931,597
31, 2006 4 Class C - 11,468,468 Class C - $9.55 Class C - 11,468,468
Class Y - 0 Class Y - $9.54 Class Y - 0
- ------------------------------------------------------------------------------------------------------------------
Total Class A - 42,007,770 -- Class A - 42,007,770 0
Class B - 7,923,061 Class B - 7,923,061
Class C - 38,734,166 Class C - 38,734,166
Class Y - 0 Class Y - 0
- ------------------------------------------------------------------------------------------------------------------
Footnotes
1 - Date repurchase offer was announced: October 3, 2005
The share amount approved: up to twenty percent (20%) of the aggregate of
the Fund's issued and outstanding Class A, Class B and Class C shares of
beneficial interest - 60,858,912
The expiration date of the repurchase offer: on or before the close of the
New York Stock Exchange on October 31, 2005
2 - Date repurchase offer was announced: January 3, 2006
The share amount approved: up to twenty percent (20%) of the aggregate of
the Fund's issued and outstanding Class A, Class B and Class C shares of
beneficial interest - 63,273,202
The expiration date of the repurchase offer: on or before the close of the
New York Stock Exchange on January 31, 2006
3 - Date repurchase offer was announced: April 3, 2006
The share amount approved: up to twenty percent (20%) of the aggregate of
the Fund's issued and outstanding Class A, Class B and Class C shares of
beneficial interest - 67,532,931
The expiration date of the repurchase offer: on or before the close of the
New York Stock Exchange on April 28, 2006
4 - Date repurchase offer was announced: July 3, 2006
The share amount approved: up to twenty percent (20%) of the aggregate of
the Fund's issued and outstanding Class A, Class B and Class C shares of
beneficial interest -73,709,951
The expiration date of the repurchase offer: on or before the close of the
New York Stock Exchange on July 31, 2006
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 07/31/2006, 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) Exhibit attached hereto.
(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: 09/14/2006
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: 09/14/2006
By: /S/ BRIAN W. WIXTED
----------------------------
Brian W. Wixted
Principal Financial Officer
Date: 09/14/2006