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
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(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: JULY 31
Date of reporting period: 07/31/2007
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN CORPORATE LOAN INDUSTRIES
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Media 17.4%
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Hotels, Restaurants & Leisure 8.8
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Health Care Providers & Services 8.1
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Oil & Gas 7.1
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Commercial Services & Supplies 6.9
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Electric Utilities 6.2
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Aerospace & Defense 5.6
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Chemicals 4.7
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Industrial Conglomerates 3.4
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Auto Components 3.0
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2007, and are based on net assets.
TOP FIVE HOLDINGS BY ISSUERS
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Charter Communications Holdings LLC 2.4%
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Las Vegas Sands Corp. 1.5
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NRG Energy, Inc. 1.3
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Univision Communications 1.0
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LS Power Acquisition 1.0
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2007, and are based on the total market value of investments. For more
current information on Fund holdings, please visit www.oppenheimerfunds.com.
CREDIT ALLOCATION
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BBB 2.9%
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BB 48.7
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B 39.8
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CCC 2.5
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D 0.1
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Not Rated 6.0
Portfolio holdings and allocations are subject to change. Percentages are as of
July 31, 2007, and are dollar-weighted based on the total market value of
investments. Securities rated by any rating organization are included in the
equivalent S&P rating category. The allocation includes rated securities and
those not rated by a national rating organization but to which the ratings above
have been assigned by the Manager for internal purposes as being comparable, in
the Manager's judgment, to securities rated by a rating agency in the same
category.
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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, 2007.
MANAGEMENT DISCUSSION OF FUND PERFORMANCE. For the 12-month period ended July
31, 2007, Oppenheimer Senior Floating Rate Fund's Class A shares, without sales
charge, produced total returns of 2.75% that lagged behind the 3.43% returns of
its benchmark, the Credit Suisse Leveraged Loan Index.
Early in the reporting period, an emphasis on some of the more
economically sensitive issuers helped the Fund participate more fully in a
generally rallying market. However, as evidence of an economic emerged,
we began to reposition the Fund more defensively, shifting our emphasis to loans
from higher-quality companies. Conversely, we maintained relatively low exposure
to second-lien loans, and we generally avoided loans with weaker covenants. This
more cautious approach helped shelter the Fund from the full brunt of market
volatility in 2007.
Because the U.S. economic slowdown was driven primarily by weak housing
markets, we established relatively light positions in housing-related
industries, such as building materials. We also maintained an underweighted
position in consumer product companies, which we were concerned might be hurt by
softer consumer spending. Instead, we placed emphasis on loans to energy
companies that we expected to benefit from rising crude oil and natural gas
prices.
We currently expect market volatility to persist while investors adjust
their attitudes toward risk, and we have maintained the Fund's relatively
cautious investment posture. However, we are encouraged by early signs that loan
quality is improving, and we hope to take advantage of more attractive values
among senior floating-rate loans as market conditions stabilize.
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 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 would 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. Unless
otherwise noted, Class B total returns are shown net of the applicable early
withdrawal charge of 3% (first year), 2% (second year) 1.5% (third and fourth
years) and 1% (fifth 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. Unless
otherwise noted, Class C shares are shown net of the applicable 1% early
withdrawal charge for the 1-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,
contingent deferred sales 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, 2007.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), or a $12.00 fee imposed annually
on accounts valued at less than $500.00 (subject to exceptions described in 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.
12 | OPPENHEIMER SENIOR FLOATING RATE FUND
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(2/1/07) (7/31/07) JULY 31, 2007
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Class A Actual $ 1,000.00 $ 989.50 $ 4.90
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Class A Hypothetical 1,000.00 1,019.89 4.97
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Class B Actual 1,000.00 987.70 7.72
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Class B Hypothetical 1,000.00 1,017.06 7.83
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Class C Actual 1,000.00 987.10 7.37
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Class C Hypothetical 1,000.00 1,017.41 7.48
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Class Y Actual 1,000.00 992.20 3.56
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Class Y Hypothetical 1,000.00 1,021.22 3.61
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,
excluding indirect expenses from affiliated fund, based on the 6-month period
ended July 31, 2007 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------------
Class A 0.99%
- ---------------------------------
Class B 1.56
- ---------------------------------
Class C 1.49
- ---------------------------------
Class Y 0.72
The expense ratios reflect voluntary waivers or reimbursements 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, 2007
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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CORPORATE LOANS--116.0%
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CONSUMER DISCRETIONARY--36.3%
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AUTO COMPONENTS--3.0%
Collins & Aikman Corp., Sr. Sec. Credit Facilities Pre-Petition Revolving
Credit Loan, 8/31/09 1 $ 1,948,756 $ 695,706
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Collins & Aikman Corp., Sr. Sec. Credit Facilities Pre-Petition Term
Loan, Tranche B1, 6.935%, 8/31/11 1,2 5,044,277 1,727,665
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Delphi Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan, Debtor in
Possesion, Tranche C, 8.125%, 12/31/07 3 10,000,000 9,795,830
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Federal Mogul Corp., Sr. Sec. Credit Facilities Pre-Petition Revolving
Credit Loan:
Tranche B, 9/30/07 3,4 10,000,000 9,558,330
Tranche B, 7.07%, 9/30/07 3,5 19,368,963 18,513,494
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Goodyear Tire & Rubber Co., Sr. Sec. Credit Facilities 2nd Lien Term
Loan, 6.85%, 4/30/14 3 16,000,000 15,380,000
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Mark IV Industries, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.82%-7.87%, 6/21/11 3 5,485,767 5,330,338
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Mark IV Industries, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.85%-7.89%, 6/21/11 3,6 7,334,485 7,126,677
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Mark IV Industries, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.07%-11.13%, 12/23/11 3,5 3,500,000 3,395,000
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Tenneco Automotive, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche
A, 6.86%, 3/16/12 3,5 12,614,286 12,298,929
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TRW Automotive, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
6.875%, 2/9/14 3,5 19,000,000 18,700,750
----------------
102,522,719
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AUTOMOBILES--1.6%
Ford Motor Co., Sr. Sec. Credit Facilities Term Loan, Tranche B, 8.36%,
12/16/13 3,6 25,817,569 24,399,384
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General Motors Corp., Sr. Sec. Credit Facilities Term Loan, 7.735%,
11/17/13 3 31,807,469 30,664,404
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55,063,788
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HOTELS, RESTAURANTS & LEISURE--8.8%
Arby's LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.608%-7.61%, 7/25/12 3,5 14,324,521 13,954,476
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BLB Wembley plc, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.82%-7.88%, 7/18/11 3,5 7,889,633 7,899,495
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BLB Wembley plc, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
9.63%, 7/25/13 3,5 8,000,000 8,005,000
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Buffets, Inc., Sr. Sec. Credit Facilities Letter of Credit Term Loan,
Tranche B, 8.11%, 11/1/13 3,5 37,771,159 35,977,029
14 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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HOTELS, RESTAURANTS & LEISURE Continued
Buffets, Inc., Sr. Sec. Credit Facilities Letter of Credit Term Loan,
8.11%, 5/1/13 3 $ 1,512,799 $ 1,437,159
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Cannery Casino Resorts LLC, Sr. Sec. Credit Facilities 1st Lien Term
Loan, Delayed Draw, 2.25%, 5/4/13 3,5 8,188,976 7,902,362
- -----------------------------------------------------------------------------------------------------------------
Cannery Casino Resorts LLC, Sr. Sec. Credit Facilities 1st Lien Term
Loan, Delayed Draw, 7.61%, 5/4/13 3 787,402 759,843
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Cannery Casino Resorts LLC, Sr. Sec. Credit Facilities 1st Lien Term
Loan, 7.61%, 5/4/13 3,5 7,023,622 6,777,795
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CCM Merger, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.36%, 7/13/12 3,5 17,721,562 17,101,307
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Cracker Barrel Old Country Store, Inc., Sr. Sec. Credit Facilities Term
Loan, Delayed Draw, 0.75%-6.84%, 4/27/13 3,5 23,221,774 22,273,560
- -----------------------------------------------------------------------------------------------------------------
Golden Nugget, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche 2L, 8.57%, 12/31/14 3 13,000,000 12,187,500
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Harmon Koval Partners LLC, Sr. Sec. Credit Facilities 1st Lien Term
Loan, 9.36%, 11/18/07 3,5 4,000,000 4,012,500
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Las Vegas Sands Corp., Sr. Sec. Credit Facilities Term Loan, Delayed
Draw, Tranche B, 7.11%, 5/23/14 3 21,100,000 20,226,692
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Las Vegas Sands Corp., Sr. Sec. Credit Facilities Term Loan, Delayed
Draw, 0.75%, 5/8/14 3 6,400,000 6,135,110
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OSI Restaurant Partners, Inc., Sr. Sec. Credit Facilities Prefunded
Revolving Credit Loan, 7.61%, 5/9/13 3 1,469,632 1,404,968
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OSI Restaurant Partners, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.625%, 5/9/14 3 22,530,368 21,539,032
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Penn National Gaming, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.11%, 10/3/12 3,5 5,403,800 5,322,067
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Quiznos Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.313%-7.61%, 5/5/13 3 8,296,249 7,969,012
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Quiznos Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.11%, 11/5/13 3,6 12,000,000 11,649,996
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Sagittarius Restaurant, Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.61%, 3/2/13 3,5 14,222,475 13,960,255
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Trump Entertainment Resorts, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B2, 7.86%-7.87%, 5/20/12 3,5 3,920,000 3,822,000
Tranche B1, 7.86%-7.90%, 5/20/12 3,5 3,920,000 3,822,000
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Turtle Bay Resort, Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 11.836%, 9/13/10 3,5 1,930,402 1,884,555
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Venetian Macao Ltd., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.61%, 5/25/13 3 21,067,026 20,389,868
Tranche B Add-On, 7.61%, 5/25/13 3 2,500,000 2,419,643
- -----------------------------------------------------------------------------------------------------------------
Venetian Macao Ltd., Sr. Sec. Credit Facilities Term Loan, Delayed
Draw, 7.61%, 5/25/11 3 10,333,315 10,001,171
15 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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HOTELS, RESTAURANTS & LEISURE Continued
Wimar OpCo LLC/Tropicana Entertainment Co., Sr. Sec. Credit
Facilities 1st Lien Term Loan, 7.61%, 1/3/12 3 $ 9,625,609 $ 9,413,046
- -----------------------------------------------------------------------------------------------------------------
Yonkers Raceway, Sr. Sec. Credit Facilities Term Loan, 8.875%, 8/15/11 3,5 10,447,500 10,362,614
- -----------------------------------------------------------------------------------------------------------------
Zuffa LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.357%, 6/18/15 3 14,750,000 13,643,750
----------------
302,253,805
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HOUSEHOLD DURABLES--1.0%
National Bedding Co., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.36%, 8/31/11 3,5 9,865,325 9,655,687
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Sleep Innovations, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.09%, 4/3/14 3,5 10,174,500 8,546,580
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Sleep Innovations, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.86%, 10/3/14 3,5 3,000,000 1,950,000
- -----------------------------------------------------------------------------------------------------------------
Springs Window Fashions Division, Inc., Sr. Sec. Credit Facilities
Term Loan, Tranche B, 8.125%, 12/30/12 3,5 13,815,844 13,263,210
- -----------------------------------------------------------------------------------------------------------------
SVP Holdings Ltd., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.11%, 8/26/13 3,5 2,462,500 2,400,938
----------------
35,816,415
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MEDIA--17.4%
Advanstar Communications, Sr. Sec. Credit Facilities 1st Lien Term
Loan, 7.61%, 5/15/14 3 20,000,000 19,006,260
- -----------------------------------------------------------------------------------------------------------------
ALM Properties, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.82%, 3/4/10 3,5 10,233,366 10,207,783
- -----------------------------------------------------------------------------------------------------------------
AMC Entertainment, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.07%, 1/26/13 3 20,341,115 19,663,085
- -----------------------------------------------------------------------------------------------------------------
Charter Communications Operation LLC, Sr. Sec. Credit Facilities
1st Lien Term Loan, 7.36%, 3/5/14 3 80,000,000 76,240,000
- -----------------------------------------------------------------------------------------------------------------
Charter Communications Operation LLC, Sr. Sec. Credit Facilities
3rd Lien Term Loan, 7.86%, 9/1/14 3 20,000,000 19,125,000
- -----------------------------------------------------------------------------------------------------------------
Cinram International, Inc., Sr. Sec. Credit Facilities Term Loan, 7.355%,
5/6/11 3,5 20,283,866 19,066,833
- -----------------------------------------------------------------------------------------------------------------
Citadel Broadcasting Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.985%, 6/12/14 3 41,750,000 39,279,778
- -----------------------------------------------------------------------------------------------------------------
CSC Holdings, Inc. (Cablevision), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.07%, 3/29/13 3 43,385,202 41,781,511
- -----------------------------------------------------------------------------------------------------------------
Discovery Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.36%, 4/30/14 3 20,000,000 19,550,000
- -----------------------------------------------------------------------------------------------------------------
Gray Television, Inc., Sr. Sec. Credit Facilities Term Loan, 6.86%, 12/31/14 3 20,268,262 19,356,190
- -----------------------------------------------------------------------------------------------------------------
Hit Entertainment, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.34%, 8/5/12 3,5 14,695,254 14,236,027
16 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
MEDIA Continued
Idearc, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.36%,
11/17/14 3 $ 15,646,250 $ 14,981,284
- -----------------------------------------------------------------------------------------------------------------
Live Nation, Inc./SFX Entertainment, Inc., Sr. Sec. Credit Facilities
Term Loan, 8.07%-8.11%, 6/21/13 3,5 11,893,980 11,537,160
- -----------------------------------------------------------------------------------------------------------------
MCC Iowa LLC, Sr. Sec. Credit Facilities Term Loan, Delayed Draw,
7.07%, 1/31/15 3,5 12,499,688 11,905,952
- -----------------------------------------------------------------------------------------------------------------
Mediacom LLC, Sr. Sec. Credit Facilities Term Loan:
Tranche A, 9/30/12 3,4 2,000,000 1,932,344
Tranche A, 6.82%, 9/30/12 3 6,000,000 5,797,032
- -----------------------------------------------------------------------------------------------------------------
Merrill Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.59%,
12/22/12 3 340,245 333,723
- -----------------------------------------------------------------------------------------------------------------
Merrill Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.57%-7.61%, 12/22/12 3,5 1,649,654 1,618,036
- -----------------------------------------------------------------------------------------------------------------
Merrill Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11.82%, 11/15/13 3,5 12,750,000 12,781,875
- -----------------------------------------------------------------------------------------------------------------
Metro-Goldwyn-Mayer Studios, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 8.61%, 4/8/12 3,6 20,754,849 19,660,508
Tranche B Add-On, 8.61%, 4/8/12 3 8,478,750 8,031,691
- -----------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., Sr. Sec. Credit Facilities 1st Lien Term
Loan, 8.61%, 1/15/12 3,5 15,000,000 14,700,000
- -----------------------------------------------------------------------------------------------------------------
Penton Media, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.61%,
2/1/13 3 19,700,625 18,814,097
- -----------------------------------------------------------------------------------------------------------------
Quebecor Media, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.36%, 1/17/13 3,5 17,243,672 16,877,244
- -----------------------------------------------------------------------------------------------------------------
Reader's Digest Association, Inc. (The), Sr. Sec. Credit Facilities Term
Loan, Tranche B, 7.33%-7.385%, 3/2/14 3 30,673,125 28,526,006
- -----------------------------------------------------------------------------------------------------------------
Regal Cinemas, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
6.86%, 10/27/13 3 41,775,667 40,670,366
- -----------------------------------------------------------------------------------------------------------------
San Juan Cable & Construction, Sr. Sec. Credit Facilities 1st Lien
Term Loan, Tranche B, 7.36%, 10/31/12 3,5 20,127,441 19,312,279
- -----------------------------------------------------------------------------------------------------------------
Sirius Satellite Radio, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.625%, 12/13/12 3 8,000,000 7,560,000
- -----------------------------------------------------------------------------------------------------------------
Star Tribune Co., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.61%, 3/5/14 3 5,735,625 5,179,269
- -----------------------------------------------------------------------------------------------------------------
Univision Communications, Inc., Sr. Sec. Credit Facilities 1st Lien Term
Loan, 7.61%, 9/29/14 3 42,751,678 39,606,779
- -----------------------------------------------------------------------------------------------------------------
Univision Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 1%, 8/15/14 3 2,748,322 2,546,150
- -----------------------------------------------------------------------------------------------------------------
Young Broadcasting, Inc., Sr. Sec. Credit Facilities Term Loan, 7.875%,
11/3/12 3,5 18,434,022 17,616,012
----------------
597,500,274
17 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
MULTILINE RETAIL--1.3%
Dollarama Group LP, Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.108%, 11/18/11 3,5 $ 6,826,094 $ 6,740,768
- -----------------------------------------------------------------------------------------------------------------
General Growth Properties, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 6.57%, 2/24/10 3,6 24,681,350 23,827,795
Tranche A, 6.57%, 2/24/10 3 13,289,958 12,830,351
----------------
43,398,914
- -----------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL--2.8%
BCBG Max Azria Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 9.34%-9.438%, 8/10/11 3,5 12,596,491 12,218,596
- -----------------------------------------------------------------------------------------------------------------
Burlington Coat Factory Warehouse Corp., Sr. Sec. Credit Facilities
Term Loan, 7.61%, 5/28/13 3 25,702,500 23,868,909
- -----------------------------------------------------------------------------------------------------------------
Claire's Stores, Inc., Sr. Sec. Credit Facilities Term Loan, 8.11%,
5/22/14 3 15,000,000 13,699,995
- -----------------------------------------------------------------------------------------------------------------
CSK Auto, Inc., Sr. Sec. Credit Facilities Term Loan, 8.375%,
6/30/12 3,5 3,970,075 3,950,225
- -----------------------------------------------------------------------------------------------------------------
Eye Care Centers of America, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.82%-7.879%, 3/1/12 3,5 5,328,385 5,235,139
- -----------------------------------------------------------------------------------------------------------------
Harbor Freight Tools, Sr. Sec. Credit Facilities Term Loan, Tranche C,
7.61%, 2/12/13 3,5 21,557,269 20,946,487
- -----------------------------------------------------------------------------------------------------------------
J. Crew Operating Corp., Sr. Sec. Credit Facilities Term Loan,
7.103%-7.11%, 5/15/13 3,5 14,727,632 14,430,015
- -----------------------------------------------------------------------------------------------------------------
Pep Boys (The), Sr. Sec. Credit Facilities Term Loan, 7.36%,
10/27/13 3,5 3,231,481 3,158,773
----------------
97,508,139
- -----------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--0.4%
Gold Toe/Moretz, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.09%-8.11%, 10/30/13 3,5 3,980,000 3,860,600
- -----------------------------------------------------------------------------------------------------------------
Hanesbrands, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan:
Tranche B, 7.07%, 9/5/13 3 642,857 623,371
Tranche B, 7.07%-7.11%, 9/5/13 3,6 7,691,786 7,458,632
- -----------------------------------------------------------------------------------------------------------------
Hanesbrands, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
9.11%, 3/5/14 3 3,000,000 2,938,500
----------------
14,881,103
- -----------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--7.0%
- -----------------------------------------------------------------------------------------------------------------
BEVERAGES--0.8%
Constellation Brands, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.875%, 6/5/13 3,6 28,617,311 27,891,661
- -----------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--1.1%
Jetro Holdings, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.87%, 7/2/14 3 10,080,000 9,475,200
- -----------------------------------------------------------------------------------------------------------------
MAPCO, Inc., Sr. Sec. Credit Facilities Term Loan, 8.09%-8.11%, 4/28/11 3,5 6,435,409 6,242,346
- -----------------------------------------------------------------------------------------------------------------
Pantry, Inc. (The), Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.07%, 5/14/14 3 7,129,630 6,612,731
18 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING Continued
Pantry, Inc. (The), Sr. Sec. Credit Facilities Term Loan, Delayed Draw,
0.75%, 5/15/14 3 $ 2,037,037 $ 1,889,351
- -----------------------------------------------------------------------------------------------------------------
Rite Aid Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
7.07%, 6/4/14 3 13,000,000 12,544,999
----------------
36,764,627
- -----------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS--2.0%
American Seafoods Group LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B1, 7.11%, 9/28/12 3,5 2,330,478 2,280,955
- -----------------------------------------------------------------------------------------------------------------
American Seafoods Group LLC, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, Tranche B2, 7.11%, 9/30/12 3,5 13,995,579 13,698,173
- -----------------------------------------------------------------------------------------------------------------
Dole Food Co., Sr. Sec. Credit Facilities Prefunded Letter of Credit
Term Loan, 7.36%, 4/17/13 3,6 2,196,277 2,080,973
- -----------------------------------------------------------------------------------------------------------------
Dole Food Co., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.438%-9.25%, 4/12/13 3,6 7,157,843 6,782,058
Tranche C, 7.438%-9.25%, 4/12/13 3 27,315,732 25,881,658
- -----------------------------------------------------------------------------------------------------------------
Pinnacle Foods Group, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.11%, 4/5/14 3 17,500,000 16,581,250
----------------
67,305,067
- -----------------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.0%
Amscan Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.57%-7.62%, 5/25/13 3,5 7,980,000 7,501,200
- -----------------------------------------------------------------------------------------------------------------
Jarden Corp., Sr. Sec. Credit Facilities Term Loan, 7.11%, 1/24/12 3,6 11,437,095 11,215,502
- -----------------------------------------------------------------------------------------------------------------
PlayPower, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.11%, 6/30/12 3,5 8,931,759 8,708,465
- -----------------------------------------------------------------------------------------------------------------
Yankee Candle Co., Sr. Sec. Credit Facilities Term Loan, 7.36%, 2/6/14 3 8,977,500 8,528,625
----------------
35,953,792
- -----------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS--2.1%
American Safety Razor Co., Sr. Sec. Credit Facilities 1st Lien Term
Loan, 7.83%-7.86%, 7/31/13 3,5 9,900,000 9,652,500
- -----------------------------------------------------------------------------------------------------------------
American Safety Razor Co., Sr. Sec. Credit Facilities 2nd Lien Term
Loan, 11.63%, 1/30/14 3,5 6,000,000 5,940,000
- -----------------------------------------------------------------------------------------------------------------
Cosmetic Essence, Inc., Sr. Sec. Credit Facilities Term Loan, 7.61%,
3/21/14 3,5 6,384,000 6,000,960
- -----------------------------------------------------------------------------------------------------------------
FGX International, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
9.36%, 12/9/12 3,5 17,640,002 16,934,402
- -----------------------------------------------------------------------------------------------------------------
Levlad Natural Products Group LLC, Sr. Sec. Credit Facilities Term
Loan, 7.61%, 3/8/14 3 1,468,327 1,387,569
- -----------------------------------------------------------------------------------------------------------------
Levlad Natural Products Group LLC, Sr. Sec. Credit Facilities Term
Loan, 7.608%-7.61%, 3/8/14 3,5 26,673,531 25,206,487
19 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS Continued
Mega Bloks, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.625%, 7/26/12 3,5 $ 5,895,305 $ 5,747,922
----------------
70,869,840
- -----------------------------------------------------------------------------------------------------------------
ENERGY--8.6%
- -----------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.5%
Antero Resources Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
9.86%, 4/10/14 3,5 15,000,000 14,812,500
- -----------------------------------------------------------------------------------------------------------------
Coldren Resource LP, Sr. Sec. Credit Facilities 1st Lien Term Loan,
9.36%, 7/14/11 3,5 11,102,121 10,935,589
- -----------------------------------------------------------------------------------------------------------------
Global Geophysical Services, Sr. Sec. Credit Facilities 1st Lien Term
Loan, 8.86%, 2/7/14 3,5 13,930,000 13,372,800
- -----------------------------------------------------------------------------------------------------------------
Volnay Acquisition Co., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.36%, 1/12/14 3,5 13,215,000 12,686,400
----------------
51,807,289
- -----------------------------------------------------------------------------------------------------------------
OIL & GAS--7.1%
Astoria Generating Co., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B, 7.34%, 2/25/13 3 14,703,164 14,452,754
- -----------------------------------------------------------------------------------------------------------------
Astoria Generating Co., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
Tranche B, 9.11%, 8/25/13 3 2,500,000 2,412,500
- -----------------------------------------------------------------------------------------------------------------
ATP Oil & Gas Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.824%-8.888%, 4/14/10 3 36,592,969 35,906,849
- -----------------------------------------------------------------------------------------------------------------
Coleto Creek Power LP, Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.11%, 6/28/13 3,5 32,870,922 32,542,213
- -----------------------------------------------------------------------------------------------------------------
Forest Alaska, Sr. Sec. Credit Facilities 1st Lien Term Loan, 8.82%,
11/15/10 3,5 12,487,500 12,425,063
- -----------------------------------------------------------------------------------------------------------------
Kinder Morgan, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche A, 6.61%, 4/26/14 3 5,000,000 4,757,815
Tranche B, 6.82%, 4/26/14 3 28,121,212 26,820,606
- -----------------------------------------------------------------------------------------------------------------
LS Power Group, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.36%, 5/1/14 3,5 28,900,000 27,527,250
- -----------------------------------------------------------------------------------------------------------------
LS Power Group, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
9.11%, 4/2/15 3 15,500,000 14,492,500
- -----------------------------------------------------------------------------------------------------------------
MEG Energy Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.36%, 4/3/13 3,6 10,934,878 10,734,409
- -----------------------------------------------------------------------------------------------------------------
Pine Praire, Sr. Sec. Credit Facilities Term Loan, Delayed Draw,
7.86%, 12/31/13 3,5 8,256,580 8,292,703
- -----------------------------------------------------------------------------------------------------------------
Pine Praire, Sr. Sec. Credit Facilities Term Loan, 7.86%, 12/31/13 3,5 12,849,613 12,905,830
- -----------------------------------------------------------------------------------------------------------------
Western Refining Corp., Sr. Sec. Credit Facilities Term Loan, Delayed
Draw, 7.07%, 2/8/14 3,5 8,446,429 8,119,129
- -----------------------------------------------------------------------------------------------------------------
Western Refining Corp., Sr. Sec. Credit Facilities Term Loan, 7.07%,
2/8/14 3,5 34,553,571 33,214,621
----------------
244,604,242
20 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
FINANCIALS--3.2%
- -----------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE--0.3%
Buckeye Check Cashing, Inc., Sr. Sec. Credit Facilities 1st Lien Term
Loan, 8.08%-8.13%, 5/1/12 3,5 $ 11,479,157 $ 11,134,782
- -----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--1.4%
Ameritrade Holding Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 6.82%, 12/31/12 3 26,612,227 26,035,620
- -----------------------------------------------------------------------------------------------------------------
Clarke American Corp., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.86%, 6/30/14 3,6 21,999,999 20,707,500
----------------
46,743,120
- -----------------------------------------------------------------------------------------------------------------
INSURANCE--0.7%
Hub International Ltd., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.86%, 6/13/14 3 8,823,529 8,360,294
- -----------------------------------------------------------------------------------------------------------------
Hub International Ltd., Sr. Sec. Credit Facilities Term Loan, Delayed
Draw, 1.375%, 6/13/14 3 1,976,471 1,872,706
- -----------------------------------------------------------------------------------------------------------------
Swett & Crawford Group, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.61%, 4/3/14 3 15,960,000 14,922,600
----------------
25,155,600
- -----------------------------------------------------------------------------------------------------------------
REAL ESTATE--0.8%
Capital Auto REIT, Sr. Sec. Credit Facilities Term Loan, 7.07%,
12/16/10 3,6 26,019,814 25,521,092
- -----------------------------------------------------------------------------------------------------------------
HEALTH CARE--11.6%
- -----------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--1.8%
Carestream Health, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.32%-7.358%, 4/30/13 3 24,000,000 22,740,000
- -----------------------------------------------------------------------------------------------------------------
Carestream Health, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
10.577%-10.608%, 9/26/13 3,5 5,000,000 4,925,000
- -----------------------------------------------------------------------------------------------------------------
CCS Medical, Sr. Sec. Credit Facilities 1st Lien Term Loan, 8.57%,
9/30/12 3 21,670,000 20,478,150
- -----------------------------------------------------------------------------------------------------------------
Reable Therapeutics Finance LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.856%-7.90%, 11/3/13 3,5 13,910,000 13,597,025
----------------
61,740,175
- -----------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--8.1%
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Incremental Term Loan,
Series NAMM, Tranche B, 7.75%-9.32%, 8/22/11 3,5 493,285 404,494
- -----------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan, Series MMM,
8/22/11 3,4 905,732 742,700
- -----------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan, Series MMM,
9.32%, 8/22/11 3 2,871,996 2,355,036
- -----------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan, Series NAMM:
Tranche B, 7/27/11 3,4 213,113 174,753
Tranche B, 9.32%, 7/27/11 3 675,764 554,126
21 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan, Series
PHMC NAMM, 8/22/11 3,4 $ 20,619 $ 16,907
- -----------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan, Series
PHMC NAMM, 9.32%, 8/22/11 3 65,380 53,611
- -----------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan, Series
PHMC, 8/22/11 3,4 742,268 608,660
- -----------------------------------------------------------------------------------------------------------------
Aveta Holdings, Inc., Sr. Sec. Credit Facilities Term Loan, Series
PHMC, 9.32%, 8/22/11 3 2,353,666 1,930,006
- -----------------------------------------------------------------------------------------------------------------
Community Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.57%, 7/2/14 3 21,811,485 20,849,446
- -----------------------------------------------------------------------------------------------------------------
Community Health Systems, Inc., Sr. Sec. Credit Facilities Term Loan,
Delayed Draw, 0.50%, 7/2/14 3 1,438,515 1,375,066
- -----------------------------------------------------------------------------------------------------------------
CompBenefits Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B
Add-On, 8.206%-8.32%, 3/31/13 3,5 8,395,313 8,206,418
- -----------------------------------------------------------------------------------------------------------------
Concentra Operating Corp., Sr. Sec. Credit Facilities 1st Lien Term
Loan, 7.61%, 6/20/14 3 4,500,000 4,353,750
- -----------------------------------------------------------------------------------------------------------------
Concentra Operating Corp., Sr. Sec. Credit Facilities 2nd Lien Term
Loan, 10.86%, 12/20/14 3 6,000,000 5,940,000
- -----------------------------------------------------------------------------------------------------------------
DaVita, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 6.86%-6.88%,
10/5/12 3,5 6,065,514 5,756,406
- -----------------------------------------------------------------------------------------------------------------
Fenwal, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B,
7.61%, 2/20/14 3,5 8,550,000 8,122,500
- -----------------------------------------------------------------------------------------------------------------
Fenwal, Inc., Sr. Sec. Credit Facilities Term Loan, Delayed Draw, 1.25%,
2/20/14 3,5 1,428,572 1,357,142
- -----------------------------------------------------------------------------------------------------------------
Genoa Healthcare LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.34%-10.25%, 8/10/12 3,5 6,928,528 6,547,460
- -----------------------------------------------------------------------------------------------------------------
Genoa Healthcare LLC, Sr. Sec. Credit Facilities 2nd Lien Term Loan,
13.09%, 2/10/13 3,5 1,000,000 992,500
- -----------------------------------------------------------------------------------------------------------------
Gentiva Health Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.57%-7.61%, 3/31/13 3,5 10,737,419 10,616,624
- -----------------------------------------------------------------------------------------------------------------
HCA, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.61%,
11/18/13 3 7,895,000 7,635,783
- -----------------------------------------------------------------------------------------------------------------
Health Management Associates, Inc., Sr. Sec. Credit Facilities Term
Loan, Tranche B, 7.11%, 2/28/14 3 11,957,500 11,240,050
- -----------------------------------------------------------------------------------------------------------------
HealthCare Partners, Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.13%, 10/31/13 3,5 9,428,571 8,957,142
- -----------------------------------------------------------------------------------------------------------------
HealthSouth Corp., Sr. Sec. Credit Facilities Term Loan:
7.86%, 3/10/13 3 400,263 390,582
7.86%, 3/10/13 3,6 15,647,561 15,269,093
22 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES Continued
Healthways, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
6.86%, 11/15/13 3,5 $ 8,756,000 $ 8,772,418
- -----------------------------------------------------------------------------------------------------------------
HVHC, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.58%-9.37%, 8/1/13 3,5 12,204,153 11,899,049
- -----------------------------------------------------------------------------------------------------------------
IASIS Healthcare LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.36%, 3/17/14 3 3,161,235 3,018,979
- -----------------------------------------------------------------------------------------------------------------
IASIS Healthcare LLC, Sr. Sec. Credit Facilities Term Loan, Delayed
Draw, 1%-7.36%, 3/15/14 3 1,430,843 1,366,454
- -----------------------------------------------------------------------------------------------------------------
Matria Healthcare, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B Add-On, 7.36%, 1/19/12 3,5 2,654,423 2,588,063
Tranche B, 7.36%, 1/19/12 3,5 13,968,709 13,619,491
- -----------------------------------------------------------------------------------------------------------------
MultiPlan, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.82%, 4/15/13 3 8,031,908 7,760,831
Tranche C, 7.82%, 4/12/13 3 12,790,556 12,358,874
- -----------------------------------------------------------------------------------------------------------------
Quintiles Transnational Corp., Sr. Sec. Credit Facilities 1st Lien Term
Loan, Tranche B, 7.36%, 3/31/13 3,5 12,659,750 12,058,412
- -----------------------------------------------------------------------------------------------------------------
Rural/Metro Corp., Sr. Sec. Credit Facilities Letter of Credit Term
Loan, 7.60%, 2/18/12 3,5 1,647,059 1,597,647
- -----------------------------------------------------------------------------------------------------------------
Rural/Metro Corp., Sr. Sec. Credit Facilities Letter of Credit Term
Loan, 7.60%, 3/4/11 3,5 957,650 928,921
- -----------------------------------------------------------------------------------------------------------------
Rural/Metro Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.60%-9.37%, 3/4/11 3,5 6,921,084 6,713,452
- -----------------------------------------------------------------------------------------------------------------
SouthernCare, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.34%-8.36%, 12/10/10 3,5 12,793,063 12,505,218
- -----------------------------------------------------------------------------------------------------------------
Surgical Care Affiliates, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.57%, 12/30/14 3,5 7,000,000 6,650,000
- -----------------------------------------------------------------------------------------------------------------
Triumph HealthCare LLC, Sr. Sec. Credit Facilities 1st Lien Term
Loan, 8.34%-8.358%, 7/28/13 3,5 7,823,202 7,647,179
- -----------------------------------------------------------------------------------------------------------------
Triumph HealthCare LLC, Sr. Sec. Credit Facilities 1st Lien Term
Loan, 10.11%, 7/28/13 3 2,598,081 2,539,624
- -----------------------------------------------------------------------------------------------------------------
United Surgical Partners International, Sr. Sec. Credit Facilities Term
Loan, Tranche B, 7.381%, 4/19/14 3,5 6,869,879 6,492,036
- -----------------------------------------------------------------------------------------------------------------
United Surgical Partners International, Sr. Sec. Credit Facilities Term
Loan, Delayed Draw, 0.75%, 4/19/14 3,5 1,612,903 1,588,710
- -----------------------------------------------------------------------------------------------------------------
Vanguard Health Systems, Inc., Sr. Sec. Credit Facilities Acquisition
Term Loan, Tranche B, 7.61%, 9/23/11 3,5 14,638,741 14,126,385
- -----------------------------------------------------------------------------------------------------------------
Viant Health Payment Solutions, Sr. Sec. Credit Facilities 1st Lien Term
Loan, Tranche B, 7.61%, 6/20/14 3 8,000,000 7,780,000
- -----------------------------------------------------------------------------------------------------------------
Warner Chilcott plc, Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.357%-7.36%, 1/4/12 3,5 12,079,747 11,723,395
Tranche C, 7.36%, 1/4/12 3,5 2,300,805 2,232,931
----------------
280,418,324
23 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS--1.7%
Reliant Pharmaceuticals LLC, Sr. Sec. Credit Facilities 1st Lien Term
Loan, 8.61%, 3/31/12 3,5 $ 3,920,408 $ 3,861,601
- -----------------------------------------------------------------------------------------------------------------
Reliant Pharmaceuticals LLC, Sr. Sec. Credit Facilities 1st Lien Term
Loan, Delayed Draw, 8.61%, 2/23/12 3,5 1,565,843 1,542,355
- -----------------------------------------------------------------------------------------------------------------
Royalty Pharma, Sr. Sec. Credit Facilities Term Loan, Tranche B, 6.84%,
4/16/13 3 11,952,500 11,683,568
- -----------------------------------------------------------------------------------------------------------------
Stiefel Laboratories, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.61%, 12/28/13 3,5 7,329,141 7,219,204
- -----------------------------------------------------------------------------------------------------------------
Stiefel Laboratories, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
10.36%, 6/21/14 3,5 13,000,000 12,935,000
- -----------------------------------------------------------------------------------------------------------------
Stiefel Laboratories, Inc., Sr. Sec. Credit Facilities Term Loan, Delayed
Draw, 7.61%, 12/28/13 3,5 5,605,859 5,521,771
- -----------------------------------------------------------------------------------------------------------------
Talecris Biotherapeutics, Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.86%, 12/6/13 3,5 14,915,000 14,635,344
----------------
57,398,843
- -----------------------------------------------------------------------------------------------------------------
INDUSTRIALS--21.6%
- -----------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--5.6%
AM General LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.32%-8.391%, 9/30/13 3,5 28,064,515 27,362,904
- -----------------------------------------------------------------------------------------------------------------
American Airlines, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B2,
7.36%-7.408%, 12/17/10 3 4,987,373 4,769,176
- -----------------------------------------------------------------------------------------------------------------
Apptis, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.57%-10.356%, 12/20/12 3,5 13,930,000 13,790,700
- -----------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities 1st Lien Term
Loan, 8.11%-9.863%, 2/21/13 3,5 17,955,000 17,416,350
- -----------------------------------------------------------------------------------------------------------------
DeCrane Aircraft Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien Term
Loan, 12.36%, 2/21/14 3,5 9,000,000 8,955,000
- -----------------------------------------------------------------------------------------------------------------
Delta Airlines, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.36%, 4/30/12 3 8,316,000 7,879,410
- -----------------------------------------------------------------------------------------------------------------
DynCorp International LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche C, 7.625%, 2/11/11 3,5 17,575,266 17,157,854
- -----------------------------------------------------------------------------------------------------------------
Gencorp, Inc., Sr. Sec. Credit Facilities Prefunded Letter of Credit
Term Loan, 7.59%, 3/21/13 3 13,750,000 13,371,875
- -----------------------------------------------------------------------------------------------------------------
Gencorp, Inc., Sr. Sec. Credit Facilities Term Loan, 7.59%, 3/21/13 3 8,250,000 8,023,125
- -----------------------------------------------------------------------------------------------------------------
IAP Worldwide Services, Inc., Sr. Sec. Credit Facilities 1st Lien Term
Loan, 9.688%, 12/30/12 3 21,677,443 19,780,667
- -----------------------------------------------------------------------------------------------------------------
IAP Worldwide Services, Inc., Sr. Sec. Credit Facilities 2nd Lien Term
Loan, 15.188%, 6/30/13 3,5 8,000,000 6,600,000
- -----------------------------------------------------------------------------------------------------------------
United Air Lines, Inc., Sr. Sec. Credit Facilities Term Loan, 7.375%,
2/3/14 3,6 24,000,000 22,962,864
- -----------------------------------------------------------------------------------------------------------------
US Airways Group, Inc., Sr. Sec. Credit Facilities Term Loan, 7.86%,
3/21/14 3 22,000,000 21,065,000
24 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE Continued
Wyle Laboratories, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.11%, 1/28/11 3,5 $ 4,090,941 $ 4,019,350
----------------
193,154,275
- -----------------------------------------------------------------------------------------------------------------
AIR FREIGHT & LOGISTICS--0.9%
Evergreen International Aviation, Inc., Sr. Sec. Credit Facilities 1st Lien
Term Loan, 8.82%-10.603%, 10/31/11 3,5 27,349,127 27,212,382
- -----------------------------------------------------------------------------------------------------------------
Evergreen International Aviation, Inc., Sr. Sec. Credit Facilities 2nd Lien
Term Loan, 14.32%, 4/30/13 3,5 3,000,000 3,015,000
----------------
30,227,382
- -----------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS--1.5%
Acoustical Material Services, Inc., Sr. Sec. Credit Facilities Term Loan,
8.07%-8.11%, 4/13/12 3,5 7,817,834 7,622,389
- -----------------------------------------------------------------------------------------------------------------
Champion OpCo., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.82%,
5/11/13 3,5 7,500,000 7,312,500
- -----------------------------------------------------------------------------------------------------------------
Custom Building Products, Sr. Sec. Credit Facilities 1st Lien Term
Loan, 7.57%, 10/20/11 3,5 7,466,093 6,906,136
- -----------------------------------------------------------------------------------------------------------------
Custom Building Products, Sr. Sec. Credit Facilities 2nd Lien Term
Loan, 10.32%, 4/20/12 3,5 4,000,000 3,840,000
- -----------------------------------------------------------------------------------------------------------------
PGT Industries, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.32%, 2/14/12 3,5 8,217,388 8,011,953
- -----------------------------------------------------------------------------------------------------------------
Pro Paint, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.875%,
5/31/12 3,5 4,950,000 4,702,500
- -----------------------------------------------------------------------------------------------------------------
Pro Paint, Inc., Sr. Sec. Credit Facilities 2nd Lien Term Loan, 11.625%,
5/31/13 3,5 1,000,000 945,000
- -----------------------------------------------------------------------------------------------------------------
United Subcontractors, Inc., Sr. Sec. Credit Facilities 1st Lien Term
Loan, Tranche B, 8.36%, 12/27/12 3,5 12,169,111 11,195,582
----------------
50,536,060
- -----------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--6.9%
Acosta, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.57%,
7/28/13 3,5 957,381 926,267
- -----------------------------------------------------------------------------------------------------------------
Allied Security Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche C, 8.36%, 7/17/12 3,5 15,077,273 14,700,341
- -----------------------------------------------------------------------------------------------------------------
Asurion Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B, 8.32%,
7/2/14 3 29,500,000 27,619,375
- -----------------------------------------------------------------------------------------------------------------
Headwaters, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.36%,
4/30/11 3,5 9,120,573 9,074,970
- -----------------------------------------------------------------------------------------------------------------
Hertz Corp. (The), Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.09%-7.11%, 12/21/12 3 18,766,369 18,113,449
- -----------------------------------------------------------------------------------------------------------------
NES Rentals Holdings, Inc., Sr. Sec. Credit Facilities 2nd Lien Term
Loan, 12.125%, 6/22/13 3,5 12,942,841 12,683,984
25 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES Continued
New Holdings I LLC, Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.858%-7.86%, 5/18/14 3 $ 24,941,654 $ 23,195,738
- -----------------------------------------------------------------------------------------------------------------
Norwood Promotional Products, Inc., Sr. Sec. Credit Facilities Term
Loan, Tranche A, 13.81%, 8/16/09 3,5 13,235,376 13,632,438
- -----------------------------------------------------------------------------------------------------------------
Rental Service Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
11/15/12 3,4 2,000,000 1,910,000
- -----------------------------------------------------------------------------------------------------------------
Rental Service Corp., Sr. Sec. Credit Facilities 2nd Lien Term Loan,
8.86%, 11/15/12 3 9,550,089 9,120,335
- -----------------------------------------------------------------------------------------------------------------
Rental Service Corp., Sr. Sec. Credit Facilities Asset-Backed Term
Loan, 7.11%, 11/15/11 3,5 4,962,500 4,888,063
- -----------------------------------------------------------------------------------------------------------------
Sabre Holdings Corp., Sr. Sec. Credit Facilities Term Loan, 7.608%,
9/30/14 3 21,379,768 19,608,304
- -----------------------------------------------------------------------------------------------------------------
Safety-Kleen Corp., Sr. Sec. Credit Facilities Term Loan, 7.875%,
8/2/13 3,5 8,186,392 8,206,858
- -----------------------------------------------------------------------------------------------------------------
Travelport Sr. Holdco, Sr. Sec. Credit Facilities Term Loan, 12.298%,
3/27/12 3,5 10,323,893 9,549,601
- -----------------------------------------------------------------------------------------------------------------
U.S. Investigations Services, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche C, 8.07%, 12/29/12 3,5 7,863,907 7,883,566
- -----------------------------------------------------------------------------------------------------------------
U.S. Investigations Services, Inc., Sr. Sec. Credit Facilities Term Loan,
8.07%, 10/21/12 3,5 16,786,061 16,828,027
- -----------------------------------------------------------------------------------------------------------------
Vanguard Car Rental USA, Inc., Sr. Sec. Credit Facilities Term Loan,
8.32%-8.34%, 6/14/13 3,5 16,010,990 15,885,912
- -----------------------------------------------------------------------------------------------------------------
West Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B3,
7.735%-7.763%, 10/24/13 3 26,287,703 25,338,428
----------------
239,165,656
- -----------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.9%
Freescale Semiconductor, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.11%, 11/29/13 3 33,876,253 31,246,982
- -----------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--3.4%
Amsted Industries, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.36%, 4/6/13 3,5 13,725,628 13,210,917
- -----------------------------------------------------------------------------------------------------------------
Axia, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B, 10.11%,
12/20/12 3,5 7,850,000 7,104,250
- -----------------------------------------------------------------------------------------------------------------
Baldor Electric Co., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.125%-8.877%, 1/31/14 3 17,751,834 17,290,286
- -----------------------------------------------------------------------------------------------------------------
Hillman Group, Inc. (The), Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.375%, 3/31/11 3,5 17,811,234 16,920,672
- -----------------------------------------------------------------------------------------------------------------
Polypore, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.56%, 5/14/14 3,6 15,000,000 14,250,000
- -----------------------------------------------------------------------------------------------------------------
Precision Partners, Inc., Sr. Sec. Credit Facilities Term Loan, 8.86%,
10/1/13 3,5 26,857,349 26,152,344
26 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES Continued
Tinnerman Palnut Engineered Products LLC, Sr. Sec. Credit Facilities
1st Lien Term Loan, 9.32%, 11/5/09 3,5 $ 7,651,725 $ 7,460,432
- -----------------------------------------------------------------------------------------------------------------
TriMas Corp., Sr. Sec. Credit Facilities Term Loan, 7.59%-7.61%,
8/10/13 3,5 13,708,906 13,640,362
----------------
116,029,263
- -----------------------------------------------------------------------------------------------------------------
MACHINERY--0.4%
BOC Edwards, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.36%,
5/31/14 3 6,000,000 5,655,000
- -----------------------------------------------------------------------------------------------------------------
EDP, Inc. (Goodyear), Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche 1, 7.86%, 7/2/14 3 8,750,000 8,443,750
- -----------------------------------------------------------------------------------------------------------------
EDP, Inc. (Goodyear), Sr. Sec. Credit Facilities Term Loan, Delayed
Draw, 7/2/14 3,4 1,250,000 1,206,250
----------------
15,305,000
- -----------------------------------------------------------------------------------------------------------------
ROAD & RAIL--2.0%
RailAmerica, Inc., Sr. Sec. Credit Facilities Term Loan, 8/14/08 3,4,5 5,000,000 4,950,000
- -----------------------------------------------------------------------------------------------------------------
RailAmerica, Inc., Sr. Sec. Credit Facilities Term Loan, 7.61%,
8/14/08 3,5 25,000,000 24,750,000
- -----------------------------------------------------------------------------------------------------------------
Swift Transportation Co., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.375%, 5/10/14 3 31,162,791 27,812,791
- -----------------------------------------------------------------------------------------------------------------
Swift Transportation Co., Sr. Sec. Credit Facilities Letter of Credit,
8.32%, 5/8/14 3 11,500,000 9,717,500
----------------
67,230,291
- -----------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--6.0%
- -----------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--1.5%
Dealer Computer Services, Inc., Sr. Sec. Credit Facilities 1st Lien Term
Loan, 7.36%, 10/26/12 3 13,631,578 13,256,709
- -----------------------------------------------------------------------------------------------------------------
Dealer Computer Services, Inc., Sr. Sec. Credit Facilities 2nd Lien Term
Loan, 10.86%, 11/1/13 3,5 6,000,000 5,970,000
- -----------------------------------------------------------------------------------------------------------------
Open Solutions, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.445%, 1/23/14 3,5 23,824,292 22,692,639
- -----------------------------------------------------------------------------------------------------------------
Open Text Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.82%, 10/2/13 3,5 10,989,242 10,934,296
----------------
52,853,644
- -----------------------------------------------------------------------------------------------------------------
IT SERVICES--1.6%
Acxiom Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.07%,
9/15/12 3,5 7,727,917 7,698,937
- -----------------------------------------------------------------------------------------------------------------
Caritor, Inc., Sr. Sec. Credit Facilities Term Loan, 7.61%, 5/17/13 3 34,600,000 31,832,000
- -----------------------------------------------------------------------------------------------------------------
SafeNet, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.86%,
4/12/14 3 6,750,000 6,412,500
- -----------------------------------------------------------------------------------------------------------------
Vertafore, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.86%, 1/31/12 3,5 9,670,750 9,332,274
----------------
55,275,711
27 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.1%
Advanced Micro Devices, Inc., Sr. Sec. Credit Facilities Term Loan,
7.36%, 12/31/13 3 $ 38,213,155 $ 35,965,495
- -----------------------------------------------------------------------------------------------------------------
SOFTWARE--1.8%
Kronos, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 7.61%,
5/9/14 3 18,750,000 17,929,688
- -----------------------------------------------------------------------------------------------------------------
Nuance Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.32%, 3/31/13 3,6 24,435,750 23,356,496
- -----------------------------------------------------------------------------------------------------------------
Verint Systems, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
8.09%, 5/9/14 3,5 22,500,000 21,375,000
----------------
62,661,184
- -----------------------------------------------------------------------------------------------------------------
MATERIALS--9.7%
- -----------------------------------------------------------------------------------------------------------------
CHEMICALS--4.7%
Brenntag AG, Sr. Sec. Credit Facilities 1st Lien Term Loan, Tranche B,
7.387%, 12/31/13 3,5 12,054,546 11,843,591
- -----------------------------------------------------------------------------------------------------------------
Brenntag AG, Sr. Sec. Credit Facilities 2nd Lien Term Loan, 9.387%,
6/30/15 3,5 3,000,000 2,992,500
- -----------------------------------------------------------------------------------------------------------------
Brenntag AG, Sr. Sec. Credit Facilities Acquisition Term Loan, 7.387%,
12/31/13 3,5 2,945,455 2,893,910
- -----------------------------------------------------------------------------------------------------------------
Hexion Specialty Chemicals, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B Add-On, 7.625%, 5/5/13 3 8,932,500 8,639,407
Tranche C-1, 7.625%, 5/5/13 3,6 7,319,908 7,061,427
Tranche C-2, 7.625%, 5/5/13 3,6 1,590,092 1,533,943
Tranche C-5, 7.625%, 5/3/13 3 1,500,000 1,450,782
- -----------------------------------------------------------------------------------------------------------------
Huntsman International LLC, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.07%, 8/16/12 3 16,560,259 16,156,602
- -----------------------------------------------------------------------------------------------------------------
Ineos Group Ltd., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.58%, 12/16/13 3 7,722,000 7,505,784
Tranche C, 8.08%, 12/14/14 3,6 7,722,000 7,505,784
- -----------------------------------------------------------------------------------------------------------------
Invista, Inc., Sr. Sec. Credit Facilities Term Loan:
Tranche B-1, 6.86%, 4/27/11 3,5 3,743,049 3,612,042
Tranche B-2, 6.86%, 4/27/11 3,5 3,075,316 2,967,680
- -----------------------------------------------------------------------------------------------------------------
ISP Chemco, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B Add-On,
1.75%-7.125%, 6/4/14 3 13,000,000 12,486,501
- -----------------------------------------------------------------------------------------------------------------
Lucite International Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
Delayed Draw:
7.61%, 7/19/13 3,5 1,698,473 1,630,534
7.61%, 7/19/13 3 1,545,802 1,483,969
- -----------------------------------------------------------------------------------------------------------------
Lucite International Holdings LLC, Sr. Sec. Credit Facilities Term Loan,
7.61%, 7/7/13 3,5 7,678,168 7,371,041
- -----------------------------------------------------------------------------------------------------------------
Millennium Inorganic Chemicals, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 7.61%, 5/15/14 3 12,000,000 11,540,004
- -----------------------------------------------------------------------------------------------------------------
Solutia, Inc., Sr. Sec. Credit Facilities Term Loan, Debtor in Possession,
Tranche B, 8.36%, 3/31/08 3,5 31,189,553 31,033,605
28 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
CHEMICALS Continued
Vertellus Specialties, Inc., Sr. Sec. Credit Facilities Term Loan, 8.61%,
6/21/13 3,5 $ 14,850,000 $ 14,256,000
- -----------------------------------------------------------------------------------------------------------------
Wellman, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan, 9.356%,
2/10/09 3 10,000,000 9,650,000
----------------
163,615,106
- -----------------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.1%
Builders FirstSource, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.86%, 8/11/11 3,5 3,429,244 3,360,659
- -----------------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING--1.8%
Berry Plastics Group, Inc., Sr. Sec. Credit Facilities Term Loan, 7.355%,
4/3/15 3 12,955,000 12,191,575
- -----------------------------------------------------------------------------------------------------------------
Consolidated Container Co., Sr. Sec. Credit Facilities 2nd Lien Term
Loan, 10.82%-10.86%, 9/28/14 3 5,000,000 4,462,500
- -----------------------------------------------------------------------------------------------------------------
Consolidated Container Co., Sr. Sec. Credit Facilities Property, Plant
& Equipment Term Loan, 7.59%-7.61%, 3/23/14 3 8,977,500 8,588,478
- -----------------------------------------------------------------------------------------------------------------
Graham Packaging Co. LP, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.625%, 10/18/11 3 19,950,001 19,035,633
- -----------------------------------------------------------------------------------------------------------------
Tegrant Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.61%, 3/7/14 3,5 19,451,250 18,235,547
----------------
62,513,733
- -----------------------------------------------------------------------------------------------------------------
METALS & MINING--0.8%
Aleris International, Inc., Sr. Sec. Credit Facilities Term Loan, 7.375%,
12/19/13 3 16,937,444 15,900,025
- -----------------------------------------------------------------------------------------------------------------
Murray Energy Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan,
8.36%, 1/28/10 3,5 11,174,265 11,230,136
----------------
27,130,161
- -----------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--2.3%
Boise Cascade LLC, Sr. Sec. Credit Facilities Term Loan, Tranche E,
6.844%-6.875%, 4/30/14 3 16,299,610 15,267,306
- -----------------------------------------------------------------------------------------------------------------
Boise Cascade LLC, Sr. Sec. Credit Facilities Term Loan, Delayed
Draw, 1.50%, 4/30/14 3 3,659,539 3,427,770
- -----------------------------------------------------------------------------------------------------------------
Domtar Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
6.695%, 3/7/14 3 18,900,000 18,257,400
- -----------------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B
Add-On, 7.11%, 12/22/12 3 12,935,332 12,253,911
- -----------------------------------------------------------------------------------------------------------------
Georgia-Pacific Corp., Sr. Sec. Credit Facilities 1st Lien Term Loan:
Tranche A, 7.108%-7.11%, 12/20/10 3 1,800,000 1,716,749
Tranche B, 7.11%, 12/20/12 3,6 10,532,802 9,977,945
Tranche B, 7.11%, 12/20/12 3 3,084,136 2,921,667
29 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS Continued
NewPage Corp., Sr. Sec. Credit Facilities Term Loan:
Tranche B, 7.625%, 5/2/11 3 $ 5,878,465 $ 5,800,088
Tranche B, 7.625%, 5/2/11 3,5 8,170,958 8,062,014
----------------
77,684,850
- -----------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--5.1%
- -----------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--2.8%
Cincinnati Bell, Inc., Sr. Sec. Credit Facilities Term Loan, Tranche B,
6.82%, 8/31/12 3,5 14,338,220 13,809,498
- -----------------------------------------------------------------------------------------------------------------
IPC Systems, Inc., Sr. Sec. Credit Facilities 1st Lien Term Loan,
Tranche B1, 7.61%, 5/31/14 3 20,750,000 19,232,656
- -----------------------------------------------------------------------------------------------------------------
ITC DeltaCom Communications, Inc., Sr. Sec. Credit Facilities Term
Loan, Tranche B, 9.32%, 7/12/13 3 22,500,000 22,500,000
- -----------------------------------------------------------------------------------------------------------------
Time Warner Telecom, Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.36%, 1/7/13 3,5 23,173,750 22,130,931
- -----------------------------------------------------------------------------------------------------------------
Windstream Corp., Sr. Sec. Credit Facilities Term Loan, Tranche B,
6.86%, 7/17/13 3 12,046,379 11,780,359
- -----------------------------------------------------------------------------------------------------------------
XO Communications, Inc., Sr. Sec. Credit Facilities Term Loan,
11.374%, 7/15/09 3,5 8,112,243 8,122,383
----------------
97,575,827
- -----------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--2.3%
Crown Castle Operating Co., Sr. Sec. Credit Facilities Term Loan,
6.82%-6.84%, 3/2/14 3 40,141,875 37,833,717
- -----------------------------------------------------------------------------------------------------------------
Intelsat Holding Ltd., Sr. Sec. Credit Facilities Term Loan, Tranche B,
7.855%, 2/1/14 3 10,000,000 9,770,540
- -----------------------------------------------------------------------------------------------------------------
Intelsat Ltd., Sr. Sec. Credit Facilities Term Loan, Tranche B, 7.36%,
6/30/13 3,5 10,002,507 9,739,941
- -----------------------------------------------------------------------------------------------------------------
MetroPCS Wireless, Inc., Sr. Sec. Credit Facilities Term Loan,
Tranche B, 7.625%, 11/4/13 3 20,291,488 19,784,201
----------------
77,128,399
- -----------------------------------------------------------------------------------------------------------------
UTILITIES--6.9%
- -----------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--6.2%
Ashmore Energy International, Sr. Sec. Credit Facilities Term Loan,
Tranche B, 8.36%, 3/30/14 3,5 32,475,138 31,825,635
- -----------------------------------------------------------------------------------------------------------------
Ashmore Energy, Inc., Sr. Sec. Credit Facilities Letter of Credit Term
Loan, 8.36%, 3/30/14 3 116,022 113,702
- -----------------------------------------------------------------------------------------------------------------
Boston Generating LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.61%, 12/19/13 3,5 30,610,548 29,878,773
- -----------------------------------------------------------------------------------------------------------------
Calpine Construction Finance Co. LP, Sr. Sec. Credit Facilities 1st Lien
Term Loan, 11.32%, 8/26/09 3,5 18,467,111 19,021,125
- -----------------------------------------------------------------------------------------------------------------
Guadalupe Power Plant, Inc., Sr. Sec. Credit Facilities Term Loan,
7.25%, 12/31/09 3,5 7,973,840 7,694,755
30 | OPPENHEIMER SENIOR FLOATING RATE FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES Continued
La Paloma Generating Co. LLC, Sr. Sec. Credit Facilities 2nd Lien Term
Loan, 8.86%, 8/16/13 3,5 $ 13,000,000 $ 12,837,500
- -----------------------------------------------------------------------------------------------------------------
NRG Energy, Inc., Sr. Sec. Credit Facilities Letter of Credit Term Loan,
7.11%, 11/4/12 3 11,320,375 10,961,892
- -----------------------------------------------------------------------------------------------------------------
NRG Energy, Inc., Sr. Sec. Credit Facilities Term Loan, Delayed Draw,
0.50%, 5/4/14 3 19,950,177 19,481,348
- -----------------------------------------------------------------------------------------------------------------
NRG Energy, Inc., Sr. Sec. Credit Facilities Term Loan, 7.11%,
11/4/12 3 24,594,625 23,815,787
- -----------------------------------------------------------------------------------------------------------------
Riverside Energy Center LLC/Rocky Mountain Energy Center LLC, Sr. Sec.
Credit Facilities Term Loan, 9.57%, 6/24/11 3,5 33,123,606 32,902,771
- -----------------------------------------------------------------------------------------------------------------
TPF Generation Holdings LLC, Sr. Sec. Credit Facilities 1st Lien Revolving
Credit Loan, Tranche R1, 7.36%, 12/15/13 3 95,030 92,511
- -----------------------------------------------------------------------------------------------------------------
TPF Generation Holdings LLC, Sr. Sec. Credit Facilities 1st Lien Term Loan,
7.36%, 12/15/13 3,5 16,001,864 15,577,815
- -----------------------------------------------------------------------------------------------------------------
TPF Generation Holdings LLC, Sr. Sec. Credit Facilities Letter of Credit 1st
Lien Term Loan, 7.36%, 12/15/13 3 303,145 295,111
- -----------------------------------------------------------------------------------------------------------------
USPF Holdings LLC, Sr. Sec. Credit Facilities Term Loan, 7.082%-7.09%,
4/11/14 3,5 7,000,000 6,947,500
----------------
211,446,225
- -----------------------------------------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--0.7%
Calpine Corp., Sr. Sec. Credit Facilities Term Loan, Debtor in Possession,
Tranche B, 7.61%, 3/29/09 3 26,400,000 25,646,491
----------------
Total Corporate Loans (Cost $4,149,359,759) 3,988,006,005
- -----------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--1.2%
- -----------------------------------------------------------------------------------------------------------------
Builders FirstSource, Inc., 9.61% Sr. Sec. Nts., 2nd Lien, 2/15/12 3 3,000,000 2,970,000
- -----------------------------------------------------------------------------------------------------------------
Cognis GmbH, 7.36% Sr. Sec. Bonds, 9/15/13 3,5 12,750,000 11,761,875
- -----------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.125% Nts., 5/9/08 1,500,000 1,468,698
- -----------------------------------------------------------------------------------------------------------------
LightPoint CLO Ltd., 9.36% Nts., Series 2007-1A, 5/15/21 3,5 4,500,000 3,982,500
- -----------------------------------------------------------------------------------------------------------------
Nova Chemicals Corp., 8.484% Sr. Unsec. Nts., 11/15/13 3 6,000,000 5,880,000
- -----------------------------------------------------------------------------------------------------------------
Paxson Communications Corp., 11.61% Sr. Sec. Nts., 1/15/13 3,7 5,000,000 5,062,500
- -----------------------------------------------------------------------------------------------------------------
XM Satellite Radio, Inc., 9.856% Sr. Unsec. Nts., 5/1/13 3 12,000,000 11,400,000
----------------
Total Corporate Bonds and Notes (Cost $44,286,915) 42,525,573
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $4,193,646,674) 117.2% 4,030,531,578
- -----------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (17.2) (591,297,530)
----------------------------------
NET ASSETS 100.0% $ 3,439,234,048
==================================
31 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Issue is in default. See Note 1 of accompanying Notes.
2. Non-income producing security.
3. Represents the current interest rate for a variable or increasing rate
security.
4. This Senior Loan will settle after August 31, 2007, at which time the
interest rate will be determined.
5. Illiquid security. The aggregate value of illiquid securities as of July 31,
2007 was $1,842,665,001, which represents 53.58% of the Fund's net assets. See
Note 6 of accompanying Notes.
6. All or a portion of the security has been segregated for collateral to cover
borrowings. See Note 8 of accompanying Notes.
7. 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 $5,062,500 or 0.15% of the Fund's net
assets as of July 31, 2007.
The following issuer was an affiliate, as defined in the Investment Company Act
of 1940, at or during the period ended July 31, 2007 by virtue of the Fund
owning at least 5% of the voting securities of the issuer or as a result of the
Fund and the issuer having the same investment advisor. There were no affiliate
securities held by the Fund as of July 31, 2007. Transactions during the period
in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
JULY 31, 2006 ADDITIONS REDUCTIONS JULY 31, 2007
- ---------------------------------------------------------------------------------------------
Oppenheimer Institutional
Money Market Fund, Cl. E -- 476,991,521 476,991,521 --
DIVIDEND
INCOME
- ---------------------------------------------------------------------------------------------
Oppenheimer Institutional
Money Market Fund, Cl. E $1,012,163
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF ASSETS AND LIABILITIES July 31, 2007
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
Investments, at value (cost $4,193,646,674)--see accompanying statement of investments $ 4,030,531,578
- ----------------------------------------------------------------------------------------------------------------------------
Cash 45,136,047
- ----------------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 169,354,026
Interest, dividends and principal paydowns 31,954,083
Other 18,592
-----------------
Total assets 4,276,994,326
- ----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on unfunded loan commitments 34,353
- ----------------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 579,324,489
Investments purchased 145,054,113
Payable on borrowings (See Note 8) 110,300,000
Distribution and service plan fees 860,593
Dividends 722,173
Interest expense on borrowings 386,232
Transfer and shareholder servicing agent fees 263,861
Shareholder communications 242,175
Other 572,289
-----------------
Total liabilities 837,760,278
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 3,439,234,048
=================
- ----------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 377,151
- ----------------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 3,663,578,532
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss (80,051)
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (61,492,135)
- ----------------------------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (163,149,449)
-----------------
NET ASSETS $ 3,439,234,048
=================
33 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $1,460,068,987
and 160,210,587 shares of beneficial interest outstanding) $ 9.11
Maximum offering price per share (net asset value plus sales charge of 3.50% of offering price) $ 9.44
- ----------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $247,726,341 and 27,171,170 shares
of beneficial interest outstanding) $ 9.12
- ----------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $1,672,483,444 and 183,296,398 shares
of beneficial interest outstanding) $ 9.12
- ----------------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $58,955,276 and 6,473,066 shares of beneficial interest outstanding) $ 9.11
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF OPERATIONS For the Year Ended July 31, 2007
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
INVESTMENT INCOME
- -------------------------------------------------------------------------------------
Interest $ 313,132,440
- -------------------------------------------------------------------------------------
Dividends--affiliated companies 1,012,163
- -------------------------------------------------------------------------------------
Other income 2,017,775
-----------------
Total investment income 316,162,378
- -------------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------------
Management fees 23,862,984
- -------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 4,170,209
Class B 2,217,576
Class C 13,821,580
- -------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,183,272
Class B 385,898
Class C 1,281,659
Class Y 3,041
- -------------------------------------------------------------------------------------
Shareholder communications:
Class A 229,502
Class B 92,191
Class C 252,730
Class Y 85
- -------------------------------------------------------------------------------------
Interest expense 2,344,306
- -------------------------------------------------------------------------------------
Custodian fees and expenses 800,580
- -------------------------------------------------------------------------------------
Trustees' compensation 70,101
- -------------------------------------------------------------------------------------
Administration service fees 1,500
- -------------------------------------------------------------------------------------
Other 1,433,300
-----------------
Total expenses 52,150,514
Less waivers and reimbursements of expenses (3,856,484)
-----------------
Net expenses 48,294,030
- -------------------------------------------------------------------------------------
NET INVESTMENT INCOME 267,868,348
- -------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- -------------------------------------------------------------------------------------
Net realized loss on:
Investments (12,244,267)
Swap contracts (50,000)
-----------------
Net realized loss (12,294,267)
- -------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (171,324,736)
Swap contracts 42,519
Unfunded loan commitments 37,187
-----------------
Net change in unrealized depreciation (171,245,030)
- -------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 84,329,051
=================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED JULY 31, 2007 2006
- ---------------------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------------------
Net investment income $ 267,868,348 $ 208,075,638
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) (12,294,267) 2,094,130
- ---------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (171,245,030) (3,987,435)
-----------------------------------
Net increase in net assets resulting from operations 84,329,051 206,182,333
- ---------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (123,304,579) (89,147,228)
Class B (19,957,641) (21,052,892)
Class C (125,485,560) (98,356,356)
Class Y (839,665) (49)
-----------------------------------
(269,587,445) (208,556,525)
- ---------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
Class A 28,838,106 475,757,742
Class B (58,025,689) (26,085,861)
Class C 74,276,311 336,583,363
Class Y 61,782,257 1,000
-----------------------------------
106,870,985 786,256,244
- ---------------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------------
Total increase (decrease) (78,387,409) 783,882,052
- ---------------------------------------------------------------------------------------------------------
Beginning of period 3,517,621,457 2,733,739,405
-----------------------------------
End of period (including accumulated net investment loss of $80,051
and $71,369, respectively) $ 3,439,234,048 $ 3,517,621,457
===================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER SENIOR FLOATING RATE FUND
STATEMENT OF CASH FLOWS For the Year Ended July 31, 2007
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
- --------------------------------------------------------------------------------------
Net increase in net assets from operations $ 84,329,051
- --------------------------------------------------------------------------------------
Adjustments to reconcile net increase in net assets from operations
to net cash used in operating activities:
Purchase of investment securities (4,562,889,431)
Proceeds from disposition of investment securities 4,053,165,086
Short-term investment securities, net 156,564,596
Premium amortization 2,255,441
Discount accretion (1,993,774)
Net realized loss on investments 12,294,267
Net change in unrealized depreciation on investments 171,324,736
Net change in unrealized appreciation on unfunded loan commitments (37,187)
Net change in unrealized appreciation on swaps (42,519)
Decrease in interest receivable 42,176,639
Increase in receivable for securities sold (66,206,901)
Increase in other assets (1,768)
Decrease in payable for securities purchased (166,585,290)
Increase in payable for accrued expenses 618,524
----------------
Net cash used in operating activities (275,028,530)
- --------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
- --------------------------------------------------------------------------------------
Proceeds from bank borrowings 1,040,400,000
Payments on bank borrowings (930,100,000)
Proceeds from shares sold 1,493,452,459
Payment on shares redeemed (1,196,077,564)
Cash distributions paid (104,912,819)
----------------
Net cash provided by financing activities 302,762,076
- --------------------------------------------------------------------------------------
Net increase in cash 27,733,546
- --------------------------------------------------------------------------------------
Cash, beginning balance 17,402,501
----------------
Cash, ending balance $ 45,136,047
================
Supplemental disclosure of cash flow information:
Noncash financing activities not included herein consist of reinvestment of
dividends and distributions of $164,657,429.
Cash paid for interest on bank borrowings--$1,959,593.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER SENIOR FLOATING RATE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED JULY 31, 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.54 $ 9.54 $ 9.56 $ 9.24 $ 9.03
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .69 1 .66 1 .53 1 .49 .55
Net realized and unrealized gain (loss) (.42) -- (.02) .30 .14
----------------------------------------------------------------------
Total from investment operations .27 .66 .51 .79 .69
- ------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.70) (.66) (.53) (.47) (.48)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.11 $ 9.54 $ 9.54 $ 9.56 $ 9.24
======================================================================
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 2.75% 7.10% 5.45% 8.78% 7.91%
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,460,069 $ 1,513,036 $ 1,038,746 $ 376,001 $ 44,028
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,687,143 $ 1,292,028 $ 776,029 $ 146,224 $ 35,298
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 7.26% 6.88% 5.63% 5.56% 6.23%
Total expenses 1.07% 4 1.11% 1.09% 1.19% 1.39%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 0.97% 0.97% 0.89% 0.99% 1.19%
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 105% 104% 114% 155% 121% 5
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 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 less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Year Ended July 31, 2007 1.07%
5. 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 B YEAR ENDED JULY 31, 2007 2006 2005 2004 2003
- -------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.54 $ 9.54 $ 9.56 $ 9.24 $ 9.04
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .64 1 .60 1 .48 1 .46 .52
Net realized and unrealized gain (loss) (.42) -- (.02) .28 .11
----------------------------------------------------------------------
Total from investment operations .22 .60 .46 .74 .63
- ------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.64) (.60) (.48) (.42) (.43)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.12 $ 9.54 $ 9.54 $ 9.56 $ 9.24
======================================================================
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 2.27% 6.49% 4.86% 8.18% 7.21%
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 247,726 $ 318,312 $ 344,337 $ 277,043 $157,057
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 295,655 $ 334,997 $ 327,996 $ 201,260 $163,238
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 6.71% 6.27% 5.06% 5.04% 5.70%
Total expenses 1.65% 4 1.68% 1.66% 1.76% 1.93%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 1.55% 1.54% 1.46% 1.56% 1.73%
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 105% 104% 114% 155% 121% 5
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 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 less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Year Ended July 31, 2007 1.65%
5. 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 C YEAR ENDED JULY 31, 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.55 $ 9.55 $ 9.57 $ 9.25 $ 9.04
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .64 1 .61 1 .48 1 .45 .52
Net realized and unrealized gain (loss) (.42) -- (.02) .29 .12
-----------------------------------------------------------------------
Total from investment operations .22 .61 .46 .74 .64
- ------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.65) (.61) (.48) (.42) (.43)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.12 $ 9.55 $ 9.55 $ 9.57 $ 9.25
======================================================================
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 2.24% 6.56% 4.92% 8.21% 7.35%
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,672,484 $ 1,686,272 $ 1,350,656 $ 615,744 $207,433
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,843,725 $ 1,542,199 $ 1,065,783 $ 346,347 $210,987
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 6.76% 6.36% 5.11% 5.05% 5.73%
Total expenses 1.58% 4 1.61% 1.60% 1.71% 1.91%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 1.48% 1.47% 1.40% 1.51% 1.71%
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 105% 104% 114% 155% 121% 5
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 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 less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Year Ended July 31, 2007 1.58%
5. The previously reported portfolio turnover rate of 9% has been restated based
upon a calculation methodology that is consistent with the other periods
presented herein. This methodology includes certain loans that were previously
considered short-term, and therefore excluded from the calculation, due to an
interest rate reset feature.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
40 | OPPENHEIMER SENIOR FLOATING RATE FUND
CLASS Y YEAR ENDED JULY 31, 2007 2006 1
- --------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.54 $9.54
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .69 .47
Net realized and unrealized gain (loss) (.39) --
---------- --------
Total from investment operations .30 .47
- --------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.73) (.47)
- --------------------------------------------------------------------------------
Net asset value, end of period $ 9.11 $9.54
===================
- --------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 3.14% 5.04%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Net assets, end of period (in thousands) $58,955 $ 1
- --------------------------------------------------------------------------------
Average net assets (in thousands) $11,372 $ 1
- --------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 7.34% 7.33%
Total expenses 0.82% 5 0.96%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 0.72% 0.85%
- --------------------------------------------------------------------------------
Portfolio turnover rate 105% 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 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 less than one full year.
5. Total expenses including indirect expenses from affiliated fund were as
follows:
Year Ended July 31, 2007 0.82%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41 | 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(R) are valued based on the
closing price provided by NASDAQ prior to the time when the Fund's assets are
valued. In the absence of a sale, the security is valued at the last sale price
on the prior trading day, if it is within the spread of the closing "bid" and
"asked" prices, and if not, at the closing bid price. Securities traded on
foreign exchanges are valued based on the last sale price on the principal
exchange on which the security is traded, as identified by the portfolio pricing
service, prior to the time when the Fund's assets are valued. In the absence of
a sale, the security is valued at the official closing price on the principal
exchange. Corporate, government and municipal debt instruments having a
remaining maturity in excess of sixty days and all mortgage-backed securities
will be valued at the mean between the "bid" and "asked" prices. Futures
contracts traded on a commodities or futures exchange will be valued at the
final settlement price or official closing price on the principal exchange as
reported by such principal exchange at its trading session ending at, or most
recently prior to, the time when the Fund's assets are
42 | OPPENHEIMER SENIOR FLOATING RATE FUND
valued. Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded. 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. Investments in open-end registered investment companies (including
affiliated funds) are valued at that fund's net asset value. Short-term "money
market type" debt securities with remaining maturities of sixty days or less are
valued at amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
WHEN-ISSUED AND DELAYED DELIVERY SECURITY TRANSACTIONS. The Fund purchases and
sells interests in Senior Loans and other portfolio securities on a "when
issued" and "delayed delivery" basis. No income accrues to the Fund on such
interests or securities in connection with such purchase transactions prior to
the date the Fund actually takes delivery of such interest or securities. These
transactions are subject to market fluctuation; the value of the interests in
Senior Loans and other portfolio debt securities at delivery may be more or less
than their purchase prices, and yields generally available on such interests or
securities when delivery occurs may be higher or lower than yields on the
interest or securities obtained pursuant to such transactions. Because the Fund
relies on the buyer or seller to consummate the transaction, failure by the
other party to complete the transaction may result in the Fund missing the
opportunity of obtaining a price or yield considered to be advantageous. When
the Fund is the buyer in such a transaction, it will maintain, in a segregated
account with its custodian, cash or liquid securities having an aggregate value
equal to the amount of such purchase commitments until payment is made. To the
extent the Fund engages in "when issued" and "delayed delivery" purchases, it
will do so for the purpose of acquiring interest or securities for the Fund's
portfolio consistent with the Fund's investment objective and policies and not
for the purpose of investment leverage.
- --------------------------------------------------------------------------------
SENIOR LOANS. Under normal market conditions, the Fund will invest at least 80%
of its net assets (plus borrowings for investment purposes) in floating rate
Senior Loans made to U.S. and foreign borrowers that are corporations,
partnerships or other business entities. The Fund will do so either as an
original lender or as a purchaser of a loan assignment or a participation
interest in a loan. While most of these loans will be collateralized, the Fund
can also under normal market conditions invest up to 10% of its net assets (plus
borrowings for investment purposes) in uncollateralized floating rate Senior
Loans. Senior Loans generally are not listed on any national securities exchange
or automated quotation system and no active trading market exists for many
Senior Loans. As a result, many Senior Loans are illiquid, meaning the Fund may
not be able to value them accurately or to sell them quickly at a fair price. To
the extent that a secondary market does exist for certain Senior Loans, the
market may be subject to irregular trading activity, wide bid/ask spreads and
extended trade settlement periods.
43 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
As of July 31, 2007, securities with an aggregate market value of
$3,988,006,005, representing 116.0% of the Fund's net assets were comprised of
Senior Loans, of which $1,826,920,626 representing 53.12% of the Fund's net
assets, were illiquid.
- --------------------------------------------------------------------------------
SECURITY CREDIT RISK. Senior loans are subject to credit risk. Credit risk
relates to the ability of the borrower under a senior loan to make interest and
principal payments as they become due. The Fund's investments in senior loans
are subject to risk of default. As of July 31, 2007, securities with an
aggregate market value of $2,423,371, representing 0.07% of the Fund's net
assets, were in default.
- --------------------------------------------------------------------------------
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted
to invest daily available cash balances in an affiliated money market fund. The
Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") which seeks current income and
stability of principal. IMMF is a registered open-end management investment
company, regulated as a money market fund under the Investment Company Act of
1940, as amended. The Manager is also the investment advisor of IMMF. The Fund's
investment in IMMF is included in the Statement of Investments. As a
shareholder, the Fund is subject to its proportional share of IMMF's Class E
expenses, including its management fee. The Manager will waive fees and/or
reimburse Fund expenses in an amount equal to the indirect management fees
incurred through the Fund's investment in IMMF.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
INVESTMENTS WITH OFF BALANCE SHEET RISK. The Fund enters into financial
instrument transactions (such as swaps, futures, options and other derivatives)
that may have off-balance sheet market risk. Off-balance sheet market risk
exists when the maximum potential loss on a particular financial instrument is
greater than the value of such financial instrument, as reflected in the Fund's
Statement of Assets and Liabilities.
- --------------------------------------------------------------------------------
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 following table 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.
44 | OPPENHEIMER SENIOR FLOATING RATE FUND
NET UNREALIZED
DEPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3,4 TAX PURPOSES
--------------------------------------------------------------------------
$620,295 $-- $60,464,826 $164,176,757
1. As of July 31, 2007, the Fund had $48,345,565 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, 2007, details
of the capital loss carryforwards were as follows:
EXPIRING
------------------------------
2010 $ 10,765,372
2011 26,003,298
2014 4,679,034
2015 6,897,861
------------
Total $ 48,345,565
============
2. As of July 31, 2007, the Fund had $12,119,261 of post-October losses
available to offset future realized capital gains, if any. Such losses, if
unutilized, will expire in 2016.
3. During the fiscal year ended July 31, 2007, the Fund did not utilize any
capital loss carryforward.
4. During the fiscal year ended July 31, 2006, the Fund did not utilize any
capital loss carryforward.
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, 2007. Net assets of the
Fund were unaffected by the reclassifications.
INCREASE TO
REDUCTION TO ACCUMULATED NET
ACCUMULATED NET REALIZED LOSS ON
INVESTMENT LOSS INVESTMENTS
-----------------------------------------
$1,710,415 $1,710,415
The tax character of distributions paid during the years ended July 31, 2007 and
July 31, 2006 was as follows:
YEAR ENDED YEAR ENDED
JULY 31, 2007 JULY 31, 2006
---------------------------------------------------------
Distributions paid from:
Ordinary income $269,587,445 $208,556,525
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, 2007 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is
45 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
attributable to the tax deferral of losses or tax realization of financial
statement unrealized gain or loss.
Federal tax cost of securities $ 4,194,673,982
Federal tax cost of other investments 918,368
---------------
Total federal tax cost $ 4,195,592,350
===============
Gross unrealized appreciation $ 1,496,075
Gross unrealized depreciation (165,672,832)
---------------
Net unrealized depreciation $ (164,176,757)
===============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation
deferral plan for independent trustees that enables trustees to elect to defer
receipt of all or a portion of the annual compensation they are entitled to
receive from the Fund. For purposes of determining the amount owed to the
Trustee under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or in other Oppenheimer funds
selected by the Trustee. The Fund purchases shares of the funds selected for
deferral by the Trustee in amounts equal to his or her deemed investment,
resulting in a Fund asset equal to the deferred compensation liability. Such
assets are included as a component of "Other" within the asset section of the
Statement of Assets and Liabilities. Deferral of trustees' fees under the plan
will not affect the net assets of the Fund, and will not materially affect the
Fund's assets, liabilities or net investment income per share. Amounts will be
deferred until distributed in accordance to the compensation deferral 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
46 | OPPENHEIMER SENIOR FLOATING RATE FUND
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:
o The Fund will make periodic Repurchase Offers, pursuant to Rule 23c-3
under the Investment Company Act of 1940 (as that rule may be amended from
time to time).
o Repurchase offers shall be made at periodic intervals of three months
between Repurchase Request Deadlines. The Deadlines will be at the time on
a regular business day (normally the last regular business day) in the
months of January, April, July and October to be determined by the Fund's
Board of Trustees.
o The Repurchase Pricing Date 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, 2007, 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, 2006 20% 76,617,959 32,609,088
January 31, 2007 20 76,672,367 33,434,008
April 30, 2007 20 79,057,911 27,518,466
July 31, 2007 20 75,430,245 64,975,919
47 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
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, 2007 YEAR ENDED JULY 31, 2006 1
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
CLASS A
Sold 82,069,921 $ 782,226,772 87,342,048 $ 835,414,302
Dividends and/or distributions
reinvested 7,445,864 70,687,055 5,802,314 55,477,939
Repurchased (87,923,093) (824,075,721) (43,432,974) (415,134,499)
-------------------------------------------------------------
Net increase 1,592,692 $ 28,838,106 49,711,388 $ 475,757,742
=============================================================
- ------------------------------------------------------------------------------------------------
CLASS B
Sold 6,315,690 $ 60,203,397 7,041,024 $ 67,345,651
Dividends and/or distributions
reinvested 1,456,164 13,837,604 1,509,521 14,439,712
Repurchased (13,957,612) (132,066,690) (11,279,063) (107,871,224)
-------------------------------------------------------------
Net decrease (6,185,758) $ (58,025,689) (2,728,518) $ (26,085,861)
=============================================================
- ------------------------------------------------------------------------------------------------
CLASS C
Sold 60,821,455 $ 580,101,497 69,208,872 $ 662,633,406
Dividends and/or distributions
reinvested 8,354,307 79,413,683 6,822,645 65,308,508
Repurchased (62,454,187) (585,238,869) (40,899,600) (391,358,551)
-------------------------------------------------------------
Net increase 6,721,575 $ 74,276,311 35,131,917 $ 336,583,363
=============================================================
- ------------------------------------------------------------------------------------------------
CLASS Y
Sold 6,679,603 $ 63,649,783 105 $ 1,000
Dividends and/or distributions
reinvested 77,270 719,087 -- --
Repurchased (283,912) (2,586,613) -- --
-------------------------------------------------------------
Net increase 6,472,961 $ 61,782,257 105 $ 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 and investments in IMMF, for the year ended July 31,
2007, were as follows:
PURCHASES SALES
------------------------------------------------------------
Investment securities $4,562,889,431 $4,053,165,086
48 | OPPENHEIMER SENIOR FLOATING RATE FUND
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of average net assets as shown in the following table:
FEE SCHEDULE
---------------------------------
Up to $200 million 0.75%
Next $200 million 0.72
Next $200 million 0.69
Next $200 million 0.66
Over $800 million 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, 2007, the Fund paid
$2,825,177 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum for assets of $10 million or more. The Class Y shares are subject to the
minimum fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
periodically at an annual rate of up to 0.25% of the average annual net assets
of Class A shares of the Fund. The Distributor currently uses all of those fees
to pay dealers, brokers, banks and other financial institutions periodically for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
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 0.25% per year under each plan. If either the Class B or Class C plan is
terminated
49 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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 determines its uncompensated expenses under the
plan at calendar quarter ends. The Distributor's aggregate uncompensated
expenses under the plan at June 30, 2007 for Class B and Class C shares were
$7,736,407 and $38,202,938, respectively. Fees incurred by the Fund under the
plans are detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and early withdrawal charges (EWC) do not
represent expenses of the Fund. They are deducted from the proceeds of sales of
Fund shares prior to investment or from redemption proceeds prior to remittance,
as applicable. The sales charges retained by the Distributor from the sale of
shares and the EWC retained by the Distributor on the redemption of shares is
shown in the following table for the period indicated.
CLASS A CLASS B CLASS C
CLASS A EARLY EARLY EARLY
FRONT-END WITHDRAWAL WITHDRAWAL WITHDRAWAL
SALES CHARGES CHARGES CHARGES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
July 31, 2007 $868,263 $121,190 $287,746 $411,392
- --------------------------------------------------------------------------------
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 $3,837,120 for the year ended July 31, 2007. 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.
The Manager will waive fees and/or reimburse Fund expenses in an amount
equal to the indirect management fees incurred through the Fund's investment in
IMMF. During the year ended July 31, 2007, the Manager waived $19,364 for IMMF
management fees.
- --------------------------------------------------------------------------------
5. CREDIT DEFAULT SWAP CONTRACTS
A credit default swap is a bilateral contract that enables an investor to buy or
sell protection against a defined-issuer credit event. The Fund may enter into
credit default swaps to hedge an existing position or to obtain exposure to a
security or market by purchasing or selling credit protection. The Fund may
enter into credit default swaps on a single security, or a basket of securities.
50 | OPPENHEIMER SENIOR FLOATING RATE FUND
In a credit default swap contract, the purchaser of the contract will pay
a periodic interest fee, similar to an insurance premium, on the notional amount
of the swap contract to the counterparty (the seller of the contract). If there
is a credit event (for example, bankruptcy or a failure to timely pay interest
or principal), the purchaser will exercise the contract and will receive a
payment from the seller of the contract equal to the notional value of the
credit default swap contract less the value of the underlying security.
The periodic interest fees are accrued daily as a component of unrealized
appreciation (depreciation) and are recorded as realized gain (loss) upon
payment. In the event that the credit default swap is exercised due to a credit
event, the difference between the value of the underlying security and the
notional amount is recorded as realized gain (loss) and is included on the
Statement of Operations.
Credit default swaps are marked to market daily using primarily quotations
from counterparties and brokers. The value of the contracts is separately
disclosed on the Statement of Assets and Liabilities. The unrealized
appreciation (depreciation) related to the change in the valuation of the
notional amount of the swap is combined with the accrued interest due to (owed
by) the Fund at termination or settlement. The net change in this amount during
the period is included on the Statement of Operations.
Risks of credit default swaps include, but are not limited to, the cost of
paying for credit protection if there are no credit events, pricing transparency
when assessing the cost of a credit default swap, counterparty risk, adverse
pricing when purchasing bonds to satisfy its delivery obligation, and the need
to fund the delivery obligation (either cash or defaulted securities depending
on whether the Fund is the purchaser or seller of the credit default swap
contract, respectively).
As of July 31, 2007, there were no such credit default swaps outstanding.
- --------------------------------------------------------------------------------
6. ILLIQUID SECURITIES
As of July 31, 2007, 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 $59,951,791 at July 31, 2007. 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 $59,067,775 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.
51 | OPPENHEIMER SENIOR FLOATING RATE FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. LOAN COMMITMENTS Continued
As of July 31, 2007, the Fund had unfunded loan commitments as follows:
COMMITMENT
INTEREST TERMINATION UNFUNDED UNREALIZED
RATE DATE AMOUNT DEPRECIATION
- ---------------------------------------------------------------------------
Federal Mogul Corp.,
Sr. Sec. Credit Facilities
Pre-Petition Revolving
Credit Loan, Tranche B 1.75% 9/30/07 $884,016 $34,353
- --------------------------------------------------------------------------------
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 prorata 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, 2007, the average daily loan balance was
$43,829,315 at an average daily interest rate of 5.279%. The Fund had borrowings
outstanding of $110,300,000 at July 31, 2007 at an interest rate of 5.2958%. The
Fund had gross borrowings and gross loan repayments of $1,040,400,000 and
$930,100,000, respectively, during the year ended July 31, 2007. The maximum
amount of borrowings outstanding at any month-end during the year ended July 31,
2007 was $175,900,000. The Fund paid $518,208 in fees and $1,959,593 in interest
during the year ended July 31, 2007.
- --------------------------------------------------------------------------------
9. RECENT ACCOUNTING PRONOUNCEMENTS
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
52 | OPPENHEIMER SENIOR FLOATING RATE FUND
in respect of any tax position that, in Management's judgment, will not be fully
realized. FIN 48 is effective for fiscal years beginning after December 15,
2006. As of July 31, 2007, the Manager has evaluated the implications of FIN 48
and does not currently anticipate a material impact to the Fund's financial
statements. The Manager will continue to monitor the Fund's tax positions
prospectively for potential future impacts.
In September 2006, ("FASB") issued Statement of Financial Accounting
Standards ("SFAS") No. 157, FAIR VALUE MEASUREMENTS. This standard establishes a
single authoritative definition of fair value, sets out a framework for
measuring fair value and expands disclosures about fair value measurements. SFAS
No. 157 applies to fair value measurements already required or permitted by
existing standards. SFAS No. 157 is effective for financial statements issued
for fiscal years beginning after November 15, 2007, and interim periods within
those fiscal years. As of July 31, 2007, the Manager does not believe the
adoption of SFAS No. 157 will materially impact the financial statement amounts;
however, additional disclosures may be required about the inputs used to develop
the measurements and the effect of certain of the measurements on changes in net
assets for the period.
53 | 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 (the "Fund"), including the statement of
investments, as of July 31, 2007, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for 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 audits included 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, 2007, 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 the
Fund as of July 31, 2007, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended, and the financial highlights for 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 13, 2007
54 | OPPENHEIMER SENIOR FLOATING RATE FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2008, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2007. 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, 2007 are eligible for the corporate dividend-received deduction.
Dividends, if any, paid by the Fund during the fiscal year ended July 31,
2007 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 received information regarding the percentage 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 July 31, 2007, $266,246,497 or 98.76% 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.
55 | 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.
56 | 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, COLORADO
TRUSTEES 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, OR UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
WILLIAM L. ARMSTRONG, President, Colorado Christian University (since 2006); Chairman, Cherry Creek Mortgage
Chairman of the Board of Company (since 1991), Chairman, Centennial State Mortgage Company (since 1994), Chairman,
Trustees (since 2003), The El Paso Mortgage Company (since 1993); Chairman, Ambassador Media Corporation (since
Trustee (since 1999) 1984); Chairman, Broadway Ventures (since 1984); Director of Helmerich & Payne, Inc. (oil
Age: 70 and gas drilling/production company) (since 1992), Campus Crusade for Christ (non-profit)
(since 1991); Former Director, The Lynde and Harry Bradley Foundation, Inc. (non-profit
organization) (2002-2006); former Chairman of: Transland Financial Services, Inc. (private
mortgage banking company) (1997-2003), Great Frontier Insurance (1995-2000), Frontier Real
Estate, Inc. (residential real estate brokerage) (1994-2000) and Frontier Title (title
insurance agency) (1995-2000); former Director of the following: UNUMProvident (insurance
company) (1991-2004), Storage Technology Corporation (computer equipment company)
(1991-2003) and International Family Entertainment (television channel) (1992-1997); U.S.
Senator (January 1979-January 1991). Oversees 37 portfolios in the OppenheimerFunds complex.
GEORGE C. BOWEN, Assistant Secretary and Director of the Manager (December 1991-April 1999); President,
Trustee (since 1999) Treasurer and Director of Centennial Capital Corporation (June 1989-April 1999); Chief
Age: 70 Executive Officer and Director of MultiSource Services, Inc. (March 1996-April 1999); Mr.
Bowen held several positions with OppenheimerFunds, Inc. and with subsidiary or affiliated
companies of OppenheimerFunds, Inc. (September 1987-April 1999). Oversees 37 portfolios in
the OppenheimerFunds complex.
EDWARD L. CAMERON, Member of The Life Guard of Mount Vernon (George Washington historical site) (June 2000-May
Trustee (since 1999) 2006); Partner at PricewaterhouseCoopers LLP (accounting firm) (July 1974-June 1999);
Age: 69 Chairman of Price Waterhouse LLP Global Investment Management Industry Services Group
(accounting firm) (July 1994-June 1998). Oversees 37 portfolios in the OppenheimerFunds
complex.
JON S. FOSSEL, Director of UNUMProvident (insurance company) (since June 2002); Director of Northwestern
Trustee (since 1999) Energy Corp. (public utility corporation) (since November 2004); Director of P.R.
Age: 65 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:
Oppenheimer Acquisition Corp. ("OAC") (parent holding company of the Manager), Shareholders
Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 37
portfolios in the OppenheimerFunds complex.
SAM FREEDMAN, Director of Colorado UpLIFT (charitable organization) (since September 1984). Mr. Freedman
Trustee (since 1999) held several positions with the Manager and with subsidiary or affiliated companies of the
Age: 66 Manager (until October 1994). Oversees 37 portfolios in the OppenheimerFunds complex.
57 | OPPENHEIMER SENIOR FLOATING RATE FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
BEVERLY L. HAMILTON, Trustee of Monterey Institute for International Studies (educational organization) (since
Trustee (since 2005) February 2000); Board Member of Middlebury College (educational organization) (since
Age: 60 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 37 portfolios in the
OppenheimerFunds complex.
ROBERT J. MALONE, Director of Jones Knowledge, Inc. (since 2006); Director of Jones International University
Trustee (since 2005) (educational organization) (since August 2005); Chairman, Chief Executive Officer and
Age: 63 Director of Steele Street 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 37 portfolios in the OppenheimerFunds complex.
F. WILLIAM MARSHALL, JR., Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment
Trustee (since 2000) company) (since 1996) and MML Series Investment Fund (investment company) (since 1996);
Age: 65 Trustee of Worcester Polytech Institute (since 1985); Chairman (since 1994) of the
Investment Committee of the Worcester Polytech Institute (private university); President
and Treasurer of the SIS Funds (private charitable fund) (since January 1999); Chairman of
SIS & Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999);
and Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank)
(January 1999-July 1999). Oversees 39 portfolios in the OppenheimerFunds complex.
- -------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE AND THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR,
OFFICER NEW YORK, NEW YORK 10281-1008. MR. MURPHY SERVES AS A TRUSTEE FOR AN INDEFINITE 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.
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director of the Manager (since June 2001); President
Trustee, President and of the Manager (September 2000-March 2007); President and a director or trustee of other
Principal Executive Officer Oppenheimer funds; President and Director of Oppenheimer Acquisition Corp. ("OAC") (the
(since 2001) Manager's parent holding company) and of Oppenheimer Partnership Holdings, Inc. (holding
Age: 58 company subsidiary of the Manager) (since July 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
58 | OPPENHEIMER SENIOR FLOATING RATE FUND
JOHN V. MURPHY, Director of OppenheimerFunds Legacy Program (charitable trust program established by the
Continued 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 1, 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 102 portfolios in the OppenheimerFunds complex.
- -------------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS OF THE THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MS. BLOOMBERG AND
FUND MESSRS. ZACK AND GILLESPIE, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, NEW YORK, NEW
YORK 10281-1008, FOR MSS. HUI, IVES AND MESSRS. ZIMMER, WELSH, VANDEHEY, WIXTED, PETERSEN
AND SZILAGYI, 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 Asset Management
Vice President and Portfolio Corporation (since April 1999); formerly Vice President of the Manager (October 1990-June
Manager (since 1999) 1997); Vice President of Centennial Asset Management Corporation (June 1997-November 2001).
Age: 61 An officer of 1 portfolio in the OppenheimerFunds complex.
MARGARET HUI, Vice President of the Manager (since February 2005); formerly Assistant Vice President of
Vice President and Portfolio the Manager (October 1999-February 2005); Vice President-Syndications of Sanwa Bank
Manager (since 1999) California (January 1998-September 1999). An officer of 1 portfolio in the OppenheimerFunds
Age: 47 complex.
JOSEPH WELSH, Vice President of the Manager (since December 2000); a high yield bond analyst for the
Vice President and Portfolio Manager (since January 1995); Vice President of HarbourView Asset Management Corporation
Manager (since 1999) (since September 2002); Assistant Vice President of the Manager (December 1996-November
Age: 43 2000). An officer of 1 portfolio in the OppenheimerFunds complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since March 2004); Chief
Vice President and Chief Compliance Officer of the Manager, OppenheimerFunds Distributor, Inc., Centennial Asset
Compliance Officer Management and Shareholder Services, Inc. (Since March 2004); Vice President of
(since 2004) OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and Shareholder
Age: 57 Services, Inc. (since June 1983). Former Vice President and Director of Internal Audit of
the Manager (1997-February 2004). An officer of 102 portfolios in the OppenheimerFunds
complex.
59 | OPPENHEIMER SENIOR FLOATING RATE FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999); Treasurer of the
Treasurer and Principal following: HarbourView Asset Management Corporation, Shareholder Financial Services, Inc.,
Financial & Accounting Shareholder Services, Inc., Oppenheimer Real Asset Management, Inc. and Oppenheimer
Officer (since 1999) Partnership Holdings, Inc. (since March 1999), OFI Private Investments, Inc. (since March
Age: 47 2000), OppenheimerFunds International Ltd. (since May 2000), OppenheimerFunds plc (since
May 2000), OFI Institutional Asset Management, Inc. (since November 2000), and
OppenheimerFunds Legacy Program (charitable trust program established by the Manager)
(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 102 portfolios in the OppenheimerFunds complex.
BRIAN S. PETERSEN, Vice President of the Manager (since February 2007); Assistant Vice President of the
Assistant Treasurer Manager (August 2002-February 2007); Manager/Financial Product Accounting of the Manager
(since 2004) (November 1998-July 2002). An officer of 102 portfolios in the OppenheimerFunds complex.
Age: 37
BRIAN C. SZILAGYI, Assistant Vice President of the Manager (since July 2004); Director of Financial Reporting
Assistant Treasurer and Compliance of First Data Corporation (April 2003-July 2004); Manager of Compliance of
(since 2005) Berger Financial Group LLC (May 2001-March 2003); Director of Mutual Fund Operations at
Age: 37 American Data Services, Inc. (September 2000-May 2001). An officer of 102 portfolios in the
OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since March 2002) of the
Vice President and Secretary Manager; General Counsel and Director of the Distributor (since December 2001); General
(since 2001) Counsel of Centennial Asset Management Corporation (since December 2001); Senior Vice
Age: 59 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), Share-holder Financial Services, Inc. (November 1989-November 2001),
and OppenheimerFunds International Ltd. (September 1997-November 2001). An officer of 102
portfolios in the OppenheimerFunds complex.
60 | OPPENHEIMER SENIOR FLOATING RATE FUND
LISA I. BLOOMBERG, Vice President and Associate Counsel of the Manager (since May 2004); First Vice President
Assistant Secretary (April 2001-April 2004), Associate General Counsel (December 2000-April 2004), Corporate
(since 2004) Vice President (May 1999-April 2001) and Assistant General Counsel (May 1999-December 2000)
Age: 39 of UBS Financial Services Inc. (formerly, PaineWebber Incorporated). An officer of 102
portfolios in the OppenheimerFunds complex.
PHILLIP S. GILLESPIE, Senior Vice President and Deputy General Counsel of the Manager (since September 2004);
Assistant Secretary First Vice President (2000-September 2004), Director (2000-September 2004) and Vice
(since 2004) President (1998-2000) of Merrill Lynch Investment Management. An officer of 102 portfolios
Age: 43 in the OppenheimerFunds complex.
KATHLEEN T. IVES, Vice President (since June 1998) and Senior Counsel and Assistant Secretary (since October
Assistant Secretary 2003) of the Manager; Vice President (since 1999) and Assistant Secretary (since October
(since 2001) 2003) of the Distributor; Assistant Secretary of Centennial Asset Management Corporation
Age: 41 (since October 2003); Vice President and Assistant Secretary of Shareholder Services, Inc.
(since 1999); Assistant Secretary of OppenheimerFunds Legacy Program and Shareholder
Financial Services, Inc. (since December 2001); Assistant Counsel of the Manager (August
1994-October 2003). An officer of 102 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.
61 | 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 $46,750 in fiscal 2007 and $37,000 in fiscal 2006.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees in fiscal 2007 and $2,000 in fiscal 2006.
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.
Such services include: Consent for an amended N-2 filing.
(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 to the registrant 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 no such fees in fiscal 2007 and $9,161 in fiscal 2006.
The principal accountant for the audit of the registrant's annual financial
statements billed $32,732 in fiscal 2007 and $2,625 in fiscal 2006 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such fees would include Compliance review, professional services for 22c-2
program and evaluation of amended director's retirement plan.
(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 $32,732 in fiscal 2007 and $13,786 in fiscal
2006 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, 2007. No account has a performance-based advisory fee:
TOTAL
ASSETS IN
TOTAL ASSETS IN OTHER OTHER TOTAL
REGISTERED REGISTERED POOLED POOLED ASSETS
INVESTMENT INVESTMENT INVESTMENT INVESTMENT OTHER IN OTHER
PORTFOLIO COMPANIES COMPANIES VEHICLES VEHICLES ACCOUNTS ACCOUNTS
MANAGER MANAGED MANAGED 1 MANAGED MANAGED 1 MANAGED MANAGED 2
- ------------------------------------------------------------------------------------------------------------------
Arthur J. Zimmer 1 $ 4,025.2 None None 2 $ 452
- ------------------------------------------------------------------------------------------------------------------
Joseph Welsh 1 $ 4,025.2 None None 2 $ 452
- ------------------------------------------------------------------------------------------------------------------
Margaret Hui 1 $ 4,025.2 None None 2 $ 452
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, 2007 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, 2007 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 that
Total Number of Average Price Announced Plans or May Yet Be Purchased Under the
Period Shares Purchased Paid per Share Programs Plans or Programs
- ------------------------------------------------------------------------------------------------------------------------
April 2, 2007 Class A - 14,473,434 Class A - $9.54 Class A - 14,473,434 0
through April 30, Class B - 1,685,435 Class B - $9.54 Class B - 1,685,435
2007 1 Class C - 11,359,177 Class C - $9.55 Class C - 11,359,177
Class Y - 419 Class Y - $9.53 Class Y - 419
- ------------------------------------------------------------------------------------------------------------------------
July 2, 2007 Class A - 35,422,098 Class A - $9.11 Class A - 35,422,098 0
through July 31, Class B - 2,921,037 Class B - $9.12 Class B - 2,921,037
2007 2 Class C - 26,349,291 Class C - $9.12 Class C - 26,349,291
Class Y - 283,493 Class Y - $9.11 Class Y - 283,493
- ------------------------------------------------------------------------------------------------------------------------
Total Class A - 49,895,532 -- Class A - 49,895,532 0
Class B - 4,606,472 Class B - 4,606,472
Class C - 37,708,468 Class C - 37,708,468
Class Y - 283,912 Class Y - 283,912
- ------------------------------------------------------------------------------------------------------------------------
Footnotes
1 - Date repurchase offer was announced: April 2, 2007
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 - 79,057,910
The expiration date of the repurchase offer: on or before the close of the
New York Stock Exchange on April 30, 2007
2 - Date repurchase offer was announced: July 2, 2007
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 - 75,430,245
The expiration date of the repurchase offer: on or before the close of the
New York Stock Exchange on July 31, 2007
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 07/31/2007, 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: 09/13/2007
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: 09/13/2007
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 09/13/2007