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EATON VANCE(R)
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[Photo of Pillars and Steps]
Annual Report June 30, 2002
[Photo of Statue with Buildings] EATON VANCE
SENIOR
INCOME
TRUST
[Photo of Large Hall]
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IMPORTANT NOTICE REGARDING DELIVERY
OF SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission (SEC) permits mutual funds to deliver
only one copy of shareholder documents, including prospectuses, proxy statements
and shareholder reports, to fund investors with multiple accounts at the same
residential or post office box address. This practice is often called
"householding" and it helps eliminate duplicate mailings to shareholders.
Eaton Vance, or your financial adviser, may household the mailing of your
documents indefinitely unless you instruct Eaton Vance, or your financial
adviser, otherwise.
If you would prefer that your Eaton Vance documents not be householded, please
contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.
Your instructions that householding not apply to delivery of your Eaton Vance
documents will be effective within 30 days of receipt by Eaton Vance or your
financial adviser.
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EATON VANCE SENIOR INCOME TRUST AS OF JUNE 30, 2002
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Letter to Shareholders
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[Photo of James B. Hawkes]
James B. Hawkes
President
Amid sharply lower interest rates, Eaton Vance Senior Income Trust again
provided a significant yield advantage in a portfolio of senior floating-rate
loans. Based on the Trust's June monthly dividend of $0.045 per share and a
closing share price of $7.76, the Trust's market yield was 6.96% at June 30,
2002.
SHORT-TERM INTEREST RATES FELL TO HISTORIC LOWS DURING THE FISCAL YEAR...
In the second half of 2001, the Federal Reserve continued the rate cuts it began
earlier in the year. By the end of 2001, the Fed had reduced rates by 475 basis
points (4.75%), putting short-term rates at a 40-year low. LIBOR (London
Interbank Offered Rate), the base rate for floating-rate loans, declined in line
with short-term rates. Not surprisingly, lower LIBOR rates had a profound effect
on total returns for floating-rate loans. However, while returns were somewhat
lower than in previous years, the loan market remained a relative haven from the
unnerving volatility of the equity and high-yield bond markets.
THE TRUST'S LOANS ARE SENIOR AND TYPICALLY SECURED, ADDING AN EXTRA MEASURE OF
SECURITY ...
Having experienced a recession, a poor credit climate, ongoing concerns over
global terrorism and repeated jolts to confidence, investors have had to endure
a good deal in the past year. However, in a poor credit environment, the Trust's
floating-rate loans have continued to provide an added measure of security.
Loans are typically senior and secured. They are senior, which means that they
rank high in the corporate capital structure and that lenders will be paid
before bondholders and other subordinated lenders. In addition, many are
secured, which means that the loans are fully backed by collateral, such as
accounts receivable, inventory, facilities, and intangibles. In the event of a
reversal of fortune, secured status represents a major advantage and,
historically, has greatly improved recovery rates when compared to bonds and
other junior subordinated debt.
FLOATING-RATE LOANS REMAIN A GOOD MEANS FOR REDUCING RISK IN AN INVESTOR'S
PORTFOLIO ...
Given the recent volatility in the financial markets and increasing investor
anxiety, the loan market remains an excellent vehicle for diminishing the risk
of a diversified investment portfolio. While demonstrating much less volatility
than other financial assets, floating-rate loans have continued to provide a
significant yield advantage over other short-term income vehicles. In the pages
that follow, co-portfolio managers John Redding, Scott Page and Payson Swaffield
review the events of the past year and offer their insights on the period
ahead.
Sincerely,
/s/ James B. Hawkes
James B. Hawkes
President
August 7, 2002
Trust Information as of June 30, 2002
Performance1
Average Annual Total Return (by share price, NYSE)
--------------------------------------------------
One Year -6.18%
Life of Fund (10/30/98) 1.62
Average Annual Total Return (at net asset value)
--------------------------------------------------
One Year 2.92%
Life of Fund (10/30/98) 3.99
Ten Largest Holdings(2)
--------------------------------------------------
Insight Midwest Holdings, LLC 2.4%
Century Cable Holdings 2.2
Rite Aid Corp. 2.1
Metro Goldwyn Mayer, Inc. 1.7
Jefferson Smurfit Corporation 1.7
Lyondell Petrochemical Company 1.6
Charter Communications Operating, LLC 1.5
Lamar Media Corp. 1.5
Amphenol Corp. 1.4
Iron Mountain Incorporated 1.3
(1) Returns are historical and are calculated by determining the percentage
change in share price or net asset value with all distributions reinvested.
(2) Ten largest holdings account for 17.4% of the Trust's investments,
determined by dividing the total market value of the holdings by the total
net assets of the Trust. Holdings are subject to change.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when sold, may be worth more
or less than their original cost.
EATON VANCE SENIOR INCOME TRUST AS OF JUNE 30, 2002
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MANAGEMENT DISCUSSION
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[photo of John P. Redding}
John P. Redding
An interview with John P. Redding, Scott H. Page and Payson F. Swaffield,
co-portfolio managers of Eaton Vance Senior Income Trust.
Q: John, over the past year, many U.S. financial markets have been hurt by the
weak economy, worries over global terrorism and investor concerns about
corporate governnance. Has the loan market been similarly affected?
A: MR. REDDING: Without question, this has been a very difficult year for the
loan market. Credit conditions have deteriorated, and the default rate has
remained toward the high end of its historical range. The weak economy
resulted in a sharp decline in interest rates in 2001. Floating-rate loans
are priced at a spread over LIBOR (London Interbank Offered Rate),
historically fluctuating with changes in the Federal Funds rate. With
short-term rates at 40-year lows, returns on loans have understandably
reflected that trend.
The economy was just starting to show some anecdotal signs of recovery in
the second half of 2001, when the events of September 11 dealt the economy
another severe shock. With consumer confidence waning, businesses reined in
their capital investment plans as well, further clouding the economic
outlook.
Meanwhile, the ongoing threat of more terrorist actions has remained a major
concern. And finally, the issue of corporate governance, highlighted by
several prominent cases of corporate malfeasance, further dampened investor
sentiment. So it has been a very difficult climate for the financial markets
in general, and the loan market has been no exception.
[photo of Scott H. Page]
Scott H. Page
Q: Scott, how would you assess the performance of the Trust in these
conditions?
A: MR. PAGE: The Trust's negative total return on a share price basis was a
result of a 13.2% decline in share price and generally reflected the
increasing skittishness of the financial markets. However, even at these
depressed interest rate levels, the Trust had a market yield of 6.96% at
June 30, 2002, still well above most other income-producing vehicles.(1) On
a net asset basis, the Trust registered a positive total return of 2.92%.(2)
That return significantly outperformed the 0.94% return of the Trust's
benchmark, the CSFB Leveraged Loan Index.(3) The Trust benefited especially
from having dramatically reduced its telecom holdings last year.
Specifically, the Trust avoided the troubled areas of broadband and
competitive local exchange areas, which have been plagued by high debt
levels and overcapacity.
Five Largest Sector Weightings(4)
---------------------------------------------------------------
Cable Television 11.2%
Chemicals 10.6%
Manufacturing 9.0%
Health Care - Providers & Services 8.2%
Food, Beverages & Tobacco 7.7%
Trust Overview(4)
---------------------------------------------------------------
Total net assets $302.8 million
Number of borrowers 240
Industries represented 48
Collateral coverage ratio 1.5 to 1
Weighted days-to-interest rate reset 51 days
Average maturity 5.7 Yrs.
Average size per borrowing $1.9 million
(1) The Trust's market yield is calculated by dividing the most recent dividend
per share by the share market price at the end of the period and annualizing the
result. (2) Returns are historical and are calculated by determining the
percentage change in market value or net asset value with all distributions
reinvested. (3) The CSFB Leveraged Loan Index - a representative index of
tradable, senior, secured, U.S. dollar-denominated leveraged loans. It is not
possible to invest directly in an Index. (4) Five Largest Sector Weightings
account for 46.7% of the Trust's investments, determined by dividing the total
market value of the holdings by the total investments of the Trust. Five Largest
Sector Weightings and Trust Overview are as of 6/30/02 and are subject to
change. Trust Overview information refers only to the senior floating-rate loan
portion of the Trust.
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Shares of the Trust are not insured by the FDIC and are not deposits or other
obligations of, or guaranteed by, any depository institution. Shares are subject
to investment risks, including possible loss of principal invested. Yield will
change.
--------------------------------------------------------------------------------
[photo of Payson F. Swaffield]
Payson F. Swaffield
Q: Payson where did the Trust focus its investments?
A: MR. SWAFFIELD: The Trust has emphasized companies that we believe are
well-positioned to weather a slow recovery, especially those we believe are
quality companies that are leaders in their industries and have reasonable
debt levels. That has meant a strong focus on basic industries, stalwarts
such as specialty chemical manufacturers and manufacturers with relatively
strong balance sheets. Lyondell Petrochemicals, for example, produces
chemicals used in manufacturing, refined petroleum products, food processing
and personal care products, and benefits from a broadly diversified customer
base.
Another theme has been defensive companies, such as drug retailers and foods
and beverages. Not only do these companies tend to be recession-resistant,
but they are well-secured by very high quality inventories.
Q: You mentioned that investors have been increasingly concerned over matters
of corporate governance. Has the Trust been affected by any of those issues?
A: MR. REDDING: Yes. Adelphia Communications, Inc., one of the nation's largest
cable providers, has been a core holding of the Trust. (As of June 30, 2002,
Adelphia - through investments in subsidiaries Century Cable Holdings,
Hilton Head and Olympus Cable Holdings - represented 3.1% of the Trust's
investments.) In March, the company disclosed that it had discovered
financial irregularities by controlling family interests. The family
surrendered control in May 2002, and several individuals have subsequently
been charged with fraud. In June 2002, the company filed a Chapter 11
bankruptcy petition. These events caused Adelphia's outstanding securities -
including its loans - to be valued lower. Despite this market price
movement, we have good reason to believe that recovery will be at, or near,
par, based on an overall debt-per-subscriber level, which is well below
current industry valuation levels. The Adelphia filing impacted the overall
cable sector and caused loans to other cable companies - including healthy
operators - to be valued lower.
Q: It's noteworthy that, despite the Adelphia difficulties, cable television
providers - at 10.2% - remained among the Trust's largest holdings. Could
you address that?
A: MR. SWAFFIELD: Yes. The cable business continues to boast very compelling
fundamentals. Cable operators have enjoyed revenue growth and surprising
pricing flexibility, even in a weak economy, a fact that has distinguished
them in the past year from industries that are more economically sensitive.
While the group has traded lower in recent months in response to the
Adelphia filing, companies like Insight Midwest Holdings and Charter
Communications remain healthy operators.
Insight has targeted an attractive market niche in rural areas, where the
subscriber growth rate remains fairly high. For its part, Charter has
upgraded its network in the face of competition from other technologies, and
expects to generate additional revenue from advanced services such as
digital video and high-speed Internet connections.
Q: What is your outlook for the loan market in the coming year?
A: MR. PAGE: Although we believe the economy has embarked on a tentative
recovery, in recent months there has been a disconnect between economic
trends and investor confidence. That is due, in part, to the lingering
anxieties over geopolitical events, as well as to the troubling cases of
corporate malfeasance. While those sentiments are understandable in the
short-term, economic fundamentals will dictate market trends in the long
run.
MR. SWAFFIELD: The Federal Reserve made a determined bid to revive the
economy throughout 2001 and, in recent testimony, Fed Chairman Greenspan has
suggested that a recovery, however slow, is under way. While the timing of
an eventual uptick in interest rates is far from certain, such a trend would
likely benefit floating-rate loans, which are unique among income-producing
vehicles in that their returns can actually improve when interest rates
rise.
MR. REDDING: It's worth noting that, in the wake of the recession and the
corporate governance issues, lenders have become much more demanding of
borrowers, insisting on more conservative lending terms and stricter
covenants. That is a positive trend for the loan market and for investors.
Moreover, ironing out the excesses of the 1990s is a very healthy
development and should leave the economy - and the loan market - in better
shape for the future. We believe that the Trust's diversified portfolio of
floating-rate loans represents a sound investment alternative in this
uncertain period, and the Portfolio should be well-positioned when rates
eventually move higher.
EATON VANCE SENIOR INCOME TRUST AS OF JUNE 30, 2002
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PORTFOLIO OF INVESTMENTS
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Senior, Floating Rate
Interests -- 147.1%(1)
Principal
Amount Borrower/Tranche Description Value
-----------------------------------------------------------------------------
Advertising -- 1.5%
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Lamar Media Corp.
$ 1,865,578 Term loan maturing March 1, 2006 $ 1,876,572
1,109,397 Term loan maturing August 1, 2006 1,115,935
1,500,000 Term loan maturing February 1, 2007 1,512,562
-----------------------------------------------------------------------------
$ 4,505,069
-----------------------------------------------------------------------------
\Aerospace & Defense -- 3.4%
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Aircraft Braking Systems Corp.
$ 582,871 Term loan maturing September 30, 2005 $ 584,510
Alliant Techsystems, Inc.
3,491,250 Term loan maturing April 20, 2009 3,538,165
Dyncorp
737,280 Term loan maturing December 9, 2006 739,354
EG&G Technical Services, Inc.
824,466 Term loan maturing August 20, 2007 824,466
Fairchild Holdings Corporation
2,104,035 Term loan maturing April 30, 2006 1,946,233
Transdigm Holding Company
340,020 Term loan maturing May 15, 2006 339,170
866,213 Term loan maturing May 15, 2007 864,048
United Defense Industries, Inc.
1,424,408 Term loan maturing June 30, 2009 1,430,863
-----------------------------------------------------------------------------
$ 10,266,809
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Air Freight & Couriers -- 0.4%
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Evergreen International Aviation, Inc.
$ 1,188,519 Term loan maturing April 30, 2003 $ 1,158,806
183,489 Term loan maturing May 31, 2003 178,902
-----------------------------------------------------------------------------
$ 1,337,708
-----------------------------------------------------------------------------
Auto Components -- 5.0%
-----------------------------------------------------------------------------
Accuride Corporation
$ 1,940,000 Term loan maturing January 21, 2007 $ 1,826,834
American Axle & Manufacturing, Inc.
998,660 Term loan maturing April 30, 2006 1,001,424
Collins & Aikman
962,500 Term loan maturing December 31, 2004 963,302
1,496,250 Term loan maturing December 31, 2005 1,507,873
Exide Corporation
2,000,000 DIP loan maturing February 15, 2004 1,980,000
1,668,128 Term loan maturing March 18, 2005* 1,123,484
Federal Mogul Corp DIP (First Lien)
2,442,147 Term loan maturing November 30, 2003 2,457,411
Federal-Mogul Corporation
1,500,000 Term loan maturing February 24, 2005 990,626
763,183 Term loan maturing February 24, 2006 751,735
J.L. French Automotive Castings, Inc.
498,665 Term loan maturing November 30, 2006 454,408
Metaldyne, Inc.
1,000,000 Term loan maturing December 31, 2009 1,007,500
Stanadyne Automotive Corporation
1,114,313 Term loan maturing December 10, 2004 1,083,573
-----------------------------------------------------------------------------
$ 15,148,170
-----------------------------------------------------------------------------
Broadcast Media -- 6.4%
-----------------------------------------------------------------------------
Benedek Broadcasting Corporation
$ 1,861,596 Term loan maturing November 20, 2007 $ 1,853,218
Block Communications
1,000,000 Term loan maturing November 30, 2009 1,005,625
CanWest Media, Inc.
2,126,431 Term loan maturing May 15, 2008 2,143,045
1,328,494 Term loan maturing May 15, 2009 1,338,873
Citadel Communications Corp.
2,000,000 Term loan maturing December 31, 2008 2,018,000
Cumulus Media, Inc.
500,000 Term loan maturing March 31, 2010 505,187
Discovery Communications, Inc.
2,662,500 Term loan maturing May 13, 2004 2,607,032
500,000 Term loan maturing December 31, 2005 489,584
Nexstar Finance, LLC
863,906 Term loan maturing July 12, 2007 859,587
Paxson Communications Corporation
2,977,500 Term loan maturing June 30, 2006 2,992,388
Sinclair Broadcast Group, Inc.
1,200,000 Term loan maturing September 15, 2005 1,208,100
Susquehanna Media Co.
2,000,000 Term loan maturing June 30, 2007 1,950,000
498,750 Term loan maturing June 30, 2008 501,244
-----------------------------------------------------------------------------
$ 19,471,883
-----------------------------------------------------------------------------
Cable Television -- 11.2%
-----------------------------------------------------------------------------
Century Cable Holdings, LLC
$ 9,000,000 Term loan maturing December 31, 2009 $ 6,808,122
Charter Communications Operating, LLC.
4,987,500 Term loan maturing March 18, 2008 4,538,625
Charter Communications VIII
2,985,000 Term loan maturing February 2, 2008 2,713,034
Classic Cable, Inc.
865,616 Term loan maturing October 31, 2007 761,742
CSG Systems Intl, Inc
175,000 Term loan maturing December 31, 2007 171,062
858,600 Term loan maturing December 31, 2006 845,721
Hilton Head Communications
2,493,750 Term loan maturing May 15, 2007 1,820,438
Insight Midwest Holdings, LLC
7,500,000 Term loan maturing December 31, 2009 7,392,188
Mediacom Broadband, LLC
2,000,000 Term loan maturing September 30, 2010 1,974,444
Mediacom Southeast
751,667 Revolving loan maturing March 31, 2008 740,392
1,500,000 Term loan maturing September 30, 2008 1,476,251
Olympus Cable Holdings, LLC
1,000,000 Term loan maturing September 30, 2010 850,000
RCN Corporation
625,000 Term loan maturing June 30, 2007 457,813
Videotron LTEE
3,250,000 Term loan maturing December 1, 2009 3,245,938
-----------------------------------------------------------------------------
$ 33,795,770
-----------------------------------------------------------------------------
Casinos & Gaming -- 7.1%
-----------------------------------------------------------------------------
Alliance Gaming Corporation
$ 3,000,000 Term loan maturing November 30, 2006 $ 3,024,999
Argosy Gaming Company
2,475,000 Term loan maturing June 30, 2008 2,497,171
Aztar Corporation
2,461,929 Term loan maturing June 30, 2005 2,460,390
Boyd Gaming Corporation
2,000,000 Term loan maturing June 24, 2008 2,010,000
Isle of Capri Casinos
2,743,125 Term loan maturing April 25, 2008 2,763,698
Mandalay Resort Group
3,498,412 Term loan maturing August 18, 2006 3,510,439
Marina District Finance Company
339,661 Term loan maturing December 31, 2007 340,935
Park Place Entertainment Corporation
2,913,386 Revolving loan maturing December 31, 2003 2,860,581
Venetian Casino Resort, LLC/Las Vegas Sands, Inc
2,000,000 Term loan maturing June 4, 2008 2,030,000
-----------------------------------------------------------------------------
$ 21,498,213
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Chemicals -- 10.6%
-----------------------------------------------------------------------------
Arteva B.V. (Kosa)
$ 2,303,384 Term loan maturing December 31, 2006 $ 2,281,790
Avecia Investments Limited
473,441 Term loan maturing June 30, 2007 474,033
282,191 Term loan maturing June 30, 2008 282,544
CP Kelco U.S., Inc.
1,702,101 Term loan maturing March 31, 2008 1,538,274
568,641 Term loan maturing September 30, 2008 513,910
Equistar Chemicals, L.P.
1,487,506 Term loan maturing August 31, 2007 1,496,537
GEO Specialty Chemicals, Inc.
1,838,571 Term loan maturing December 31, 2007 1,779,967
Georgia Gulf Corporation
959,346 Term loan maturing December 31, 2006 965,742
Huntsman Corporation
1,000,000 Term loan maturing December 31, 2002 998,750
3,407,665 Term loan maturing September 30, 2003 3,020,043
Huntsman International
1,154,481 Term loan maturing June 3, 2006 1,145,281
1,173,907 Term loan maturing June 30, 2007 1,179,103
1,173,907 Term loan maturing June 30, 2008 1,179,103
IMC Global, Inc
2,968,934 Term loan maturing November 17, 2006 2,990,830
Lyondell Petrochemical Company
4,869,988 Term loan maturing June 30, 2007 4,954,745
Messer Griesham GmbH
2,446,830 Term loan maturing April 30, 2009 2,471,553
530,864 Term loan maturing April 30, 2010 536,228
Millenium Chemicals inc.
400,000 Term loan maturing June 30, 2006 401,600
NOVEON (AKA PMD)
1,485,000 Term loan maturing September 30, 2008 1,490,835
Polymer Group, Inc.
1,925,325 Term loan maturing December 20, 2005 1,793,304
485,000 Term loan maturing December 20, 2006 451,859
-----------------------------------------------------------------------------
$ 31,946,031
-----------------------------------------------------------------------------
Coal -- 0.7%
-----------------------------------------------------------------------------
Arch Western Resources, LLC.
$ 2,000,000 Term loan maturing April 30, 2008 $ 2,020,000
-----------------------------------------------------------------------------
$ 2,020,000
-----------------------------------------------------------------------------
Commercial Services -- 5.9%
-----------------------------------------------------------------------------
Advanstar Communications Inc.
$ 3,348,571 Term loan maturing November 17, 2007 $ 3,301,691
American Marketing Industries, Inc.
1,329,600 Term loan maturing November 30, 2002* 531,840
614,066 Term loan maturing November 30, 2004* 245,627
Anthony Crane Rental, L.P.
1,288,257 Term loan maturing July 20, 2006 980,686
Brickman Holdings Corp
984,985 Term loan maturing January 14, 2006 982,523
Coinmach Laundry Corporation
1,970,000 Term loan maturing July 25, 2009 1,989,700
Corrections Corporation of America
3,491,250 Term loan maturing May 31, 2008 3,523,980
Environmental Systems Products Hldgs, Inc.
972,790 Term loan maturing December 31, 2004 904,694
549,034 Term loan maturing December 31, 2004 406,972
Metokote Corporation
975,000 Term loan maturing November 2, 2005 916,500
MSX International, Inc.
881,119 Term loan maturing December 31, 2006 877,319
Service Partners
1,250,000 Term loan maturing February 28, 2006 1,225,000
Nationsrent, Inc.
299,521 Term loan maturing September 30, 2006 125,424
Volume Services, Inc.
1,915,943 Term loan maturing December 31, 2002 1,903,968
-----------------------------------------------------------------------------
$ 17,915,924
-----------------------------------------------------------------------------
Communications Equipment -- 1.7%
-----------------------------------------------------------------------------
Amphenol Corporation
$ 507,455 Term loan maturing May 19, 2004 $ 499,272
3,879,137 Term loan maturing May 19, 2005 3,862,166
Superior Telecom, Inc.
1,286,930 Term loan maturing November 27, 2005 709,420
-----------------------------------------------------------------------------
$ 5,070,858
-----------------------------------------------------------------------------
Construction Materials -- 0.3%
-----------------------------------------------------------------------------
Formica Corporation
$ 799,878 Term loan maturing April 30, 2006 $ 733,222
Tapco International Corporation
1,538 Term loan maturing June 23, 2007 1,542
922 Term loan maturing June 23, 2008 924
U.S. Aggregates, Inc.
499,919 Term loan maturing March 31, 2006* 249,959
-----------------------------------------------------------------------------
$ 985,647
-----------------------------------------------------------------------------
Containers & Packaging - Metal & Glass -- 1.1%
-----------------------------------------------------------------------------
Ball Corporation
$ 3,415,424 Term loan maturing March 10, 2006 $ 3,412,224
-----------------------------------------------------------------------------
$ 3,412,224
-----------------------------------------------------------------------------
Containers & Packaging - Paper -- 5.4%
-----------------------------------------------------------------------------
Blue Ridge Paper Products, Inc.
$ 540,741 Revolving loan maturing March 31, 2005 $ 520,087
281,951 Term loan maturing March 31, 2005 270,827
874,743 Term loan maturing March 31, 2006 874,743
Graphic Packaging Corporation
497,500 Term loan maturing February 28, 2009 503,097
Greif Bros. Corporation
913,981 Term loan maturing February 28, 2008 919,857
Impaxx, Inc.
955,000 Term loan maturing December 31, 2005 611,200
Jefferson Smurfit Corporation
5,000,000 Term loan maturing March 31, 2007 5,011,330
Port Townsend Paper Corporation
988,701 Term loan maturing March 16, 2007 966,456
Printpack Holdings, Inc.
1,995,000 Term loan maturing April 30, 2009 2,019,937
Riverwood International Corporation
3,500,000 Term loan maturing December 31, 2006 3,517,500
Stone Container Corporation
491,692 Term loan maturing October 1, 2004 493,152
499,552 Term loan maturing December 31, 2006 500,622
-----------------------------------------------------------------------------
$ 16,208,808
-----------------------------------------------------------------------------
Containers & Packaging - Plastics -- 1.5%
-----------------------------------------------------------------------------
Consolidated Container Holdings LLC
$ 498,904 Term loan maturing June 30, 2007 $ 477,076
Crown Cork & Seal Company, Inc.
1,711,111 Term loan maturing August 4, 2002 1,703,625
IPC, Inc.
1,193,997 Revolving loan maturing September 30, 2003 1,191,012
281,866 Term loan maturing September 30, 2003 281,161
Tekni-Plex, Inc.
977,544 Term loan maturing June 30, 2008 981,617
-----------------------------------------------------------------------------
$ 4,634,491
-----------------------------------------------------------------------------
Educational Services -- 0.7%
-----------------------------------------------------------------------------
Kindercare Learning Centers, Inc.
$ 1,053,529 Term loan maturing February 13, 2006 $ 1,024,557
Weekly Reader Corporation
972,500 Term loan maturing September 30, 2007 972,500
------------------------------------------------------------------------------
$ 1,997,057
------------------------------------------------------------------------------
Electronic Equipment & Instruments -- 1.1%
-----------------------------------------------------------------------------
Hughes Electronics Corporation
$ 2,500,000 Term loan maturing December 5, 2002 $ 2,510,157
Knowles Electronics, Inc.
982,500 Term loan maturing June 29, 2007 933,375
-----------------------------------------------------------------------------
$ 3,443,532
-----------------------------------------------------------------------------
Entertainment -- 4.4%
-----------------------------------------------------------------------------
Amfac Resorts, Inc.
$ 1,207,293 Term loan maturing September 30, 2003 $ 1,204,275
1,207,293 Term loan maturing September 30, 2004 1,204,275
Blockbuster Entertainment Corp.
1,208,333 Term loan maturing July 1, 2006 1,193,607
Dreamworks Film Trust
2,000,000 Term loan maturing December 31, 2006 2,008,126
Interval (FKA IIC Holdings, Inc.)
231,685 Term loan maturing December 16, 2005 230,527
503,138 Term loan maturing December 15, 2006 500,622
Metro-Goldwyn-Mayer Studios Inc.
5,000,000 Term loan maturing June 11, 2008 5,032,815
Six Flags Theme Parks Inc.
1,985,000 Term loan maturing September 30, 2005 1,997,543
-----------------------------------------------------------------------------
$ 13,371,790
-----------------------------------------------------------------------------
Environmental Services -- 1.2%
-----------------------------------------------------------------------------
Allied Waste Industries, Inc.
$ 486,562 Term loan maturing July 30, 2005 $ 477,966
958,381 Term loan maturing July 30, 2006 952,038
1,150,056 Term loan maturing July 30, 2007 1,142,445
International Technology Corporation
470,000 Term loan maturing June 11, 2004* 77,550
Stericycle, Inc.
881,713 Term loan maturing November 10, 2006 887,592
-----------------------------------------------------------------------------
$ 3,537,591
-----------------------------------------------------------------------------
Food, Beverages & Tobacco -- 7.7%
-----------------------------------------------------------------------------
American Seafood Holdings Inc.
$ 621,094 Term loan maturing September 30, 2007 $ 619,024
869,531 Term loan maturing March 31, 2009 876,053
Aurora Foods, Inc.
451,916 Term loan maturing September 30, 2006 420,734
2,034,424 Term loan maturing September 30, 2006 1,894,557
Cott Corporation
1,436,997 Term loan maturing December 31, 2006 1,445,379
Del Monte Corporation
2,797,625 Term loan maturing March 31, 2008 2,820,356
Eagle Family Foods, Inc
291,667 Revolving loan maturing December 31, 2004 278,542
310,134 Term loan maturing December 31, 2005 299,280
Flowers Foods, Inc.
1,983,741 Term loan maturing June 30, 2006 1,999,610
Interstate Brands Corporations
2,979,987 Term loan maturing July 19, 2007 3,004,200
500,000 Term loan maturing July 19, 2008 504,063
Michael Foods, Inc.
1,902,893 Term loan maturing March 30, 2008 1,921,446
Nutra Sweet
1,500,000 Term loan maturing June 30, 2008 1,501,875
Pabst Brewing Company
490,262 Revolving loan maturing April 30, 2003 473,103
1,351,020 Term loan maturing April 30, 2004 1,273,336
Suiza Food Corporation
1,925,000 Term loan maturing July 15, 2007 1,928,609
1,995,000 Term loan maturing July 15, 2008 2,007,936
-----------------------------------------------------------------------------
$ 23,268,103
-----------------------------------------------------------------------------
Health Care - Equipment & Supplies -- 0.7%
-----------------------------------------------------------------------------
Advance Medical Optics, Inc.
$ 1,000,000 Term loan maturing June 30, 2008 $ 1,004,044
Conmed Corporation
1,135,051 Term loan maturing December 31, 2005 1,124,646
-----------------------------------------------------------------------------
$ 2,128,690
-----------------------------------------------------------------------------
Health Care - Providers & Services -- 8.2%
-----------------------------------------------------------------------------
Alliance Imaging, Inc.
$ 1,500,000 Term loan maturing June 10, 2008 $ 1,504,375
Amerisource Bergen Corporation
4,000,000 Term loan maturing March 31, 2005 3,950,000
Caremark RX, Inc
997,500 Term loan maturing March 31, 2006 1,001,657
Community Health Systems, Inc.
3,073,205 Term loan maturing December 31, 2005 3,086,651
Concentra Managed Care, Inc.
1,782,208 Term loan maturing December 31, 2005 1,791,489
891,104 Term loan maturing December 31, 2006 895,671
DaVita, Inc
2,986,147 Term loan maturing March 31, 2009 2,999,444
Express Scripts, Inc.
1,500,000 Term loan maturing March 31, 2007 1,507,032
FHC Health Systems, Inc.
535,608 Term loan maturing April 30, 2005 527,574
535,608 Term loan maturing April 30, 2006 527,574
Magellan Health Services, Inc.
536,600 Term loan maturing February 12, 2005 532,442
536,600 Term loan maturing February 12, 2006 532,442
Rotech Healthcare, Inc.
1,496,250 Term loan maturing March 31, 2008 1,513,394
Team Health
1,500,000 Term loan maturing October 31, 2008 1,508,438
Triad Hospitals Holdings, Inc.
2,975,455 Term loan maturing March 31, 2008 3,006,884
-----------------------------------------------------------------------------
$ 24,885,067
-----------------------------------------------------------------------------
Hotels -- 2.0%
-----------------------------------------------------------------------------
Extended Stay America
$ 2,410,555 Term loan maturing December 31, 2007 $ 2,426,122
KSL Recreation Group, Inc.
475,000 Term loan maturing April 30, 2005 473,911
475,000 Term loan maturing April 30, 2006 474,480
Wyndham International, Inc.
2,977,116 Term loan maturing June 30, 2006 2,663,590
-----------------------------------------------------------------------------
$ 6,038,103
-----------------------------------------------------------------------------
Household Furnish & Appliances -- 2.0%
-----------------------------------------------------------------------------
Goodman Manufacturing Company, L.P.
$ 348,833 Term loan maturing September 30, 2003 $ 345,127
652,491 Term loan maturing April 9, 2004 645,559
Sealy Mattress Company
1,543,962 Term loan maturing December 15, 2004 1,546,696
393,892 Term loan maturing December 15, 2005 394,590
503,473 Term loan maturing December 15, 2006 504,364
Simmons Company
509,772 Term loan maturing October 30, 2005 511,259
1,044,047 Term loan maturing October 30, 2006 1,047,962
Sleepmaster, LLC
1,155,051 Term loan maturing December 31, 2006 1,033,771
-----------------------------------------------------------------------------
$ 6,029,328
-----------------------------------------------------------------------------
Household Products -- 3.5%
-----------------------------------------------------------------------------
Church & Dwight Co. Inc.
$ 2,500,000 Term loan maturing September 30, 2007 $ 2,527,903
Samsonite Corporation
1,949,239 Term loan maturing June 24, 2006 1,832,284
The Imperial Decor Home Group, Inc.
250,119 Medium term note maturing April 4, 2006 175,084
The Scotts Company
3,487,498 Term loan maturing December 31, 2007 3,509,731
United Industries Corporation
997,425 Term loan maturing January 20, 2006 1,003,035
Werner Holding Co.
1,707,143 Term loan maturing November 30, 2004 1,696,473
-----------------------------------------------------------------------------
$ 10,744,510
-----------------------------------------------------------------------------
Insurance -- 1.0%
-----------------------------------------------------------------------------
White Mountains Insurance Group, LTD.
$ 1,612,500 Term loan maturing March 31, 2006 $ 1,616,531
Willis Corroon Corporation
930,000 Term loan maturing February 19, 2007 925,738
442,742 Term loan maturing February 19, 2008 441,451
-----------------------------------------------------------------------------
$ 2,983,720
-----------------------------------------------------------------------------
Leisure -- 1.3%
-----------------------------------------------------------------------------
New England Sports Ventures, LLC
$ 4,000,000 Term loan maturing February 28, 2005 $ 4,000,000
-----------------------------------------------------------------------------
$ 4,000,000
-----------------------------------------------------------------------------
Leisure Equipment & Products -- 0.3%
-----------------------------------------------------------------------------
Bell Sports, Inc.
$ 949,936 Term loan maturing March 30, 2007 $ 826,444
-----------------------------------------------------------------------------
$ 826,444
-----------------------------------------------------------------------------
Machinery -- 2.0%
-----------------------------------------------------------------------------
Flowserve Corporation
$ 3,500,000 Term loan maturing June 30, 2009 $ 3,543,204
The Manitowoc Company
2,475,000 Term loan maturing June 30, 2007 2,490,778
-----------------------------------------------------------------------------
$ 6,033,982
-----------------------------------------------------------------------------
Manufacturing -- 9.0%
-----------------------------------------------------------------------------
Advanced Glassfiber Yarns LLC
$ 1,515,859 Term loan maturing September 30, 2005 $ 1,289,996
Blount International Inc.
213,556 Term loan maturing July 31, 2006 211,487
Citation Corporation
952,849 Term loan maturing December 1, 2007 848,035
Dayton Superior Corporation
1,616,875 Term loan maturing September 29, 2005 1,619,907
Dresser, Inc.
1,475,050 Term loan maturing March 31, 2007 1,484,731
Gentek, Inc.
967,524 Term loan maturing April 30, 2007 762,409
2,939,976 Term loan maturing April 30, 2008 2,316,701
JohnsonDiversey, Inc.
500,000 Term loan maturing November 30, 2008 501,250
1,500,000 Term loan maturing November 30, 2009 1,517,277
Motor Coach Industries
492,139 Term loan maturing June 15, 2006 444,155
Mueller Group, Inc.
2,500,000 Term loan maturing May 31, 2008 2,516,407
Oshkosh Truck Corporation
666,964 Term loan maturing January 31, 2007 672,633
Panavision International, L.P.
2,686,926 Term loan maturing March 31, 2005 2,451,820
Panolam Industries, Inc.
864,175 Term loan maturing December 31, 2006 820,967
Polypore Incorporated
1,683,046 Term loan maturing December 31, 2006 1,691,461
SPX Corporation
3,934,733 Term loan maturing December 31, 2006 3,950,228
Synthetic Industries, Inc.
988,750 Term loan maturing December 30, 2007 960,323
Tokheim Corporation
563,802 Revolving loan maturing December 5, 2005 563,802
2,112,052 Term loan maturing December 5, 2005* --
738,529 Term loan maturing December 5, 2005 679,446
1,425,980 Term loan maturing December 5, 2005 998,186
Trimas Corporation
1,000,000 Term loan maturing December 31, 2009 1,011,250
-----------------------------------------------------------------------------
$ 27,312,471
-----------------------------------------------------------------------------
Metals & Mining -- 1.8%
-----------------------------------------------------------------------------
Compass Minerals Group, Inc
$ 1,384,259 Term loan maturing November 28, 2009 $ 1,396,949
Handy & Harman
920,156 Term loan maturing July 30, 2006 919,294
Neenah Foundry Company
1,813,782 Term loan maturing September 30, 2005 1,714,024
Stillwater Mining Company
486,895 Term loan maturing June 30, 2006 488,112
966,495 Term loan maturing June 30, 2007 973,743
-----------------------------------------------------------------------------
$ 5,492,122
-----------------------------------------------------------------------------
Miscellaneous -- 1.0%
-----------------------------------------------------------------------------
AMSCAN Holdings, Inc.
$ 989,637 Term loan maturing December 31, 2004 $ 964,896
Sotheby's Holdings, INC
1,500,000 Term loan maturing August 11, 2002 1,490,625
Weight Watchers International, Inc.
313,953 Term loan maturing December 31, 2007 317,093
186,047 Term loan maturing December 31, 2008 187,907
-----------------------------------------------------------------------------
$ 2,960,521
-----------------------------------------------------------------------------
Office Equipment & Supplies -- 1.3%
-----------------------------------------------------------------------------
Iron Mountain Incorporated
$ 4,000,000 Term loan maturing February 15, 2008 $ 4,043,332
-----------------------------------------------------------------------------
$ 4,043,332
-----------------------------------------------------------------------------
Oil & Gas -- 1.7%
-----------------------------------------------------------------------------
EPN Holding Company, L.P.
$ 598,131 Term loan maturing April 30, 2005 $ 598,131
Tesoro Petroleum Corp
1,992,802 Term loan maturing December 31, 2007 1,987,073
The Premcor Refining Group, Inc.
2,500,000 Term loan maturing August 23, 2003 2,504,687
-----------------------------------------------------------------------------
$ 5,089,891
-----------------------------------------------------------------------------
Paper & Forest Products -- 0.4%
-----------------------------------------------------------------------------
Bear Island Paper Company, LLC
$ 1,233,457 Term loan maturing December 31, 2005 $ 1,214,955
-----------------------------------------------------------------------------
$ 1,214,955
-----------------------------------------------------------------------------
Personal Products -- 2.3%
-----------------------------------------------------------------------------
Armkel, LLC
$ 997,487 Term loan maturing March 31, 2009 $ 1,009,021
Mary Kay Cosmetics, Inc.
2,025,233 Term loan maturing December 6, 2002 2,030,717
Playtex Products, Inc.
2,500,000 Term loan maturing May 31, 2009 2,521,875
Revlon Consumer Products Corporation
1,500,000 Term loan maturing May 30, 2005 1,486,563
-----------------------------------------------------------------------------
$ 7,048,176
-----------------------------------------------------------------------------
Publishing & Printing -- 5.1%
-----------------------------------------------------------------------------
American Media Operations Inc.
$ 967,690 Term loan maturing April 1, 2008 $ 980,995
Journal Register Company
2,563,810 Term loan maturing September 30, 2006 2,547,786
Liberty Group Operating, Inc.
1,960,000 Term loan maturing April 30, 2007 1,960,000
Merrill Corporation
282,241 Term loan maturing November 15, 2006 263,895
1,068,956 Term loan maturing November 15, 2007 999,474
Morris Communications Corporation
3,000,000 Term loan maturing September 30, 2009 3,015,468
R.H. Donnelley Inc.
648,837 Term loan maturing December 5, 2005 647,485
519,069 Term loan maturing December 5, 2006 517,988
The Reader's Digest Association, Inc.
1,500,000 Term loan maturing May 20, 2008 1,510,001
The Sheridan Group, Inc.
935,773 Term loan maturing January 30, 2005 935,773
Transwestern Publishing Company LLC
1,975,025 Term loan maturing June 27, 2008 1,994,775
-----------------------------------------------------------------------------
$ 15,373,640
-----------------------------------------------------------------------------
Real Estate -- 7.2%
-----------------------------------------------------------------------------
125 West 55th Street
$ 1,980,952 Term loan maturing June 9, 2004 $ 1,980,952
622 Third Ave Company LLC
2,000,000 Term loan maturing September 30, 2004 2,000,000
AGBRI Octagon
1,995,580 Term loan maturing May 31, 2004 1,980,613
AIMCO Properties, L.P.
2,045,296 Term loan maturing February 28, 2004 2,035,070
American Skiing Company Resort Properties, Inc.
720,000 Term loan maturing December 31, 2002* 694,800
American Tower, L.P.
500,000 Term loan maturing December 31, 2006 435,577
250,000 Term loan maturing December 31, 2007 220,039
AP-Knight LP
2,010,236 Term loan maturing December 31, 2004 2,007,723
Crescent Real Estate Equities, L.P.
1,000,000 Term loan maturing May 31, 2005 1,001,250
FFD Development Company, LLC
360,000 Revolving loan maturing April 2, 2004 358,200
iStar Preferred Holdings LLC
1,000,000 Term loan maturing July 20, 2006 970,000
iStar Walden
3,500,000 Term loan maturing June 30, 2003 3,395,000
MeriStar Investment Partners, L.P.
500,000 Term loan maturing September 30, 2002 501,250
Newkirk Master, L.P.
995,000 Term loan maturing December 31, 2004 1,007,438
OLY Hightop Parent
1,877,857 Term loan maturing March 31, 2006 1,877,857
Spectrasite Communications, Inc.
1,500,000 Term loan maturing December 31, 2007 1,367,625
-----------------------------------------------------------------------------
$ 21,833,394
-----------------------------------------------------------------------------
Retail - Food & Drug -- 6.4%
-----------------------------------------------------------------------------
Domino's Inc.
$ 1,325,856 Term loan maturing December 21, 2006 $ 1,337,457
1,330,755 Term loan maturing December 21, 2007 1,342,399
Duane Reade Inc.
1,670,688 Term loan maturing February 15, 2007 1,679,042
Fleming Companies, Inc.
4,000,000 Term loan maturing June 18, 2008 4,006,252
Rite Aid Corporation
6,441,057 Term loan maturing June 27, 2005 6,376,647
Roundy's, Inc.
500,000 Term loan maturing June 6, 2009 502,813
SDM Corporation
2,858,824 Term loan maturing February 4, 2009 2,876,691
Winn-Dixie Stores
1,341,549 Term loan maturing March 28, 2007 1,350,604
-----------------------------------------------------------------------------
$ 19,471,905
-----------------------------------------------------------------------------
Retail - Specialty -- 4.1%
-----------------------------------------------------------------------------
Advance Stores Company, Inc.
$ 250,296 Term loan maturing November 30, 2006 $ 249,722
3,036,254 Term loan maturing November 30, 2007 3,051,435
CSK Auto, Inc.
3,000,000 Term loan maturing December 21, 2004 3,017,499
Jo-Ann Stores, Inc.
2,500,000 Term loan maturing April 30, 2005 2,487,500
Travelcenters of America, Inc.
3,491,250 Term loan maturing November 8, 2008 3,516,345
-----------------------------------------------------------------------------
$ 12,322,501
-----------------------------------------------------------------------------
Retail Stores - General Mdse -- 3.0%
-----------------------------------------------------------------------------
Ames Merchandising Corporation
$ 2,940,000 Term loan maturing March 31, 2004 $ 2,936,325
Kmart Corporation
509,493 Revolving loan maturing December 6, 2002* 344,672
3,250,000 DIP loan maturing April 22, 2004 3,275,594
Shopko Stores, Inc.
2,500,000 Term loan maturing March 12, 2004 2,503,125
-----------------------------------------------------------------------------
$ 9,059,716
-----------------------------------------------------------------------------
Road & Rail -- 0.9%
-----------------------------------------------------------------------------
Kansas City Southern Industries, Inc.
$ 175,000 Term loan maturing June 12, 2008 $ 175,632
RailAmerica Australia Finance Pty. LTD.
400,000 Term loan maturing May 31, 2009 404,417
RailAmerica Canada Corp.
333,333 Term loan maturing May 31, 2009 337,014
RailAmerica Transportation Corp.
1,766,667 Term loan maturing May 31, 2009 1,786,174
-----------------------------------------------------------------------------
$ 2,703,237
-----------------------------------------------------------------------------
Shipping Lines -- 0.1%
-----------------------------------------------------------------------------
American Commercial Lines
$ 64,719 Term loan maturing June 30, 2006 $ 62,720
182,098 Term loan maturing June 30, 2007 176,472
-----------------------------------------------------------------------------
$ 239,192
-----------------------------------------------------------------------------
Telecommunications - Wireline -- 1.8%
-----------------------------------------------------------------------------
Alec Holdings, Inc.
$ 742,500 Term loan maturing November 30, 2006 $ 739,406
742,500 Term loan maturing November 30, 2007 739,406
Broadwing Inc.
1,112,852 Term loan maturing December 31, 2005 1,011,304
Fairpoint Communications, Inc.
2,916,244 Term loan maturing March 31, 2006 2,846,983
-----------------------------------------------------------------------------
$ 5,337,099
-----------------------------------------------------------------------------
Telecommunications-Wireless -- 0.8%
-----------------------------------------------------------------------------
Cricket Communications, Inc.
$ 300,000 Term loan maturing June 30, 2007 $ 105,750
Nextel Communications, Inc.
1,000,000 Term loan maturing June 30, 2008 791,250
1,000,000 Term loan maturing December 30, 2008 791,250
Sygnet Operating Company
430,718 Term loan maturing March 31, 2007 386,354
310,687 Term loan maturing December 23, 2007 278,686
Winstar Communications, Inc.
322,213 DIP loan maturing September 30, 2002* 61,220
-----------------------------------------------------------------------------
$ 2,414,510
-----------------------------------------------------------------------------
Theaters -- 1.4%
-----------------------------------------------------------------------------
Hollywood Theater Holdings, Inc.
$ 912,673 Term loan maturing March 31, 2006 $ 812,279
Loews Cineplex Entertainment Corporation
952,159 Term loan maturing December 5, 2002 950,969
544,091 Term loan maturing March 31, 2007 543,411
Regal Cinemas Inc.
1,946,634 Term loan maturing December 31, 2007 1,968,534
-----------------------------------------------------------------------------
$ 4,275,192
-----------------------------------------------------------------------------
Utilities -- 0.5%
-----------------------------------------------------------------------------
Michigan Electric Transmission Company, LLC
$ 1,500,000 Term loan maturing June 30, 2007 $ 1,514,062
------------------------------------------------------------------------------
$ 1,514,062
------------------------------------------------------------------------------
Total Senior, Floating Rate Interests
(identified cost, $457,911,796) $ 445,211,438
------------------------------------------------------------------------------
Corporate Bonds & Notes -- 13.6%
Security Value
-----------------------------------------------------------------------------
Airlines -- 1.0%
-----------------------------------------------------------------------------
American Airlines
$ 895 7.80%, 10/1/06 $ 911,871
Continental Airlines
200 7.434%, 9/15/04 184,915
53 7.08%, 11/1/04 50,761
379 7.033%, 6/15/11 362,955
Dunlop Stand Aero Holdings, Sr. Notes
1,000 11.875%, 5/15/09 1,060,000
Northwest Airlines, Inc.
360 8.875%, 6/1/06 325,800
-----------------------------------------------------------------------------
$ 2,896,302
-----------------------------------------------------------------------------
Apparel -- 0.1%
-----------------------------------------------------------------------------
Russell Corp., Sr. Notes
$ 80 9.25%, 5/1/10(2) $ 82,800
Tropical Sportswear International
90 11.00%, 6/15/08 95,400
William Carter, Series B
160 10.875%, 8/15/11 176,000
-----------------------------------------------------------------------------
$ 354,200
-----------------------------------------------------------------------------
Auto and Parts -- 0.3%
-----------------------------------------------------------------------------
Advance Stores Co., Inc., Sr. Sub. Notes
$ 85 10.25%, 4/15/08(2) $ 89,675
Asbury Automotive Group, Sr. Sub. Notes
145 9.00%, 6/15/12 140,650
CSK Auto, Inc., Sr. Notes
420 12.00%, 6/15/06 450,975
Key Plastics, Sr. Sub. Notes
44 4.00% (PIK), 4/26/07 44,009
118 7.00%, 4/26/07 118,465
United Auto Group, Inc., Sr. Sub. Notes
210 9.625%, 3/15/12 212,100
-----------------------------------------------------------------------------
$ 1,055,874
-----------------------------------------------------------------------------
Broadcasting and Cable -- 0.5%
-----------------------------------------------------------------------------
Adelphia Communications Corp., Sr. Notes
$ 205 9.25%, 10/1/02* $ 80,975
Charter Communication Holdings, Sr. Disc. Notes
70 13.50%, 1/15/11 26,600
Charter Communication Holdings, Sr. Notes
70 10.75%, 10/1/09 49,525
Corus Entertainment, Inc., Sr. Sub. Notes
150 8.75%, 3/1/12 150,750
CSC Holdings, Inc., Sr. Sub. Debs.
210 10.50%, 5/15/16 158,550
CSC Holdings, Inc., Sr. Sub. Notes
35 9.875%, 2/15/13 26,075
Mediacom Broadband LLC
50 11.00%, 7/15/13 47,000
Mediacom LLC/Capital Corp., Sr. Notes
320 9.50%, 1/15/13 278,400
Pegasus Commerce
1,000 9.75%, 12/1/06 455,000
Pegasus Sattelite, Sr. Notes
455 12.375%, 8/1/06 229,775
-----------------------------------------------------------------------------
$ 1,502,650
-----------------------------------------------------------------------------
Building Materials -- 0.5%
-----------------------------------------------------------------------------
Collins & Aikman Floorcover, Sr. Sub. Notes
$ 180 9.75%, 2/15/10 $ 184,500
Louisiana Pacific Corp., Sr. Notes
60 8.50%, 8/15/05 63,336
Ryland Group, Sr. Sub. Note
1,025 9.125%, 6/15/11 1,091,625
WCI Communities, Inc.
245 9.125%, 5/1/12 244,387
-----------------------------------------------------------------------------
$ 1,583,848
-----------------------------------------------------------------------------
Business Services - Miscellaneous -- 0.5%
-----------------------------------------------------------------------------
Champion Home Builders
$ 1,000 11.25%, 4/15/07 $ 855,000
Coinmach Corp., Sr. Notes
360 9.00%, 2/1/10 367,200
Intertek Finance PLC, Sr. Sub. Notes, Series B
300 10.25%, 11/1/06 316,800
-----------------------------------------------------------------------------
$ 1,539,000
-----------------------------------------------------------------------------
Chemicals -- 0.6%
-----------------------------------------------------------------------------
Avecia Group, PLC
$ 750 11.00%, 7/1/09 $ 750,000
Ferro Corp., Sr. Notes
150 9.125%, 1/1/09 161,376
Hercules, Inc.
30 11.125%, 11/15/07 33,750
Lyondell Chemical Co.
275 9.50%, 12/15/08 257,125
Methanex Corp., Sr. Notes
120 8.75%, 8/15/12 123,000
Millennium America, Inc., Sr. Notes
90 9.25%, 6/15/08 92,250
Olin Corp., Sr. Notes
325 9.125%, 12/15/11 352,633
Resolution Performance, Sr. Sub. Notes
110 13.50%, 11/15/10 123,750
-----------------------------------------------------------------------------
$ 1,893,884
-----------------------------------------------------------------------------
Consumer Products -- 0.1%
-----------------------------------------------------------------------------
Fedders North America
$ 45 9.375%, 8/15/07 $ 32,625
Hockey Co.
330 11.25%, 4/15/09 331,650
-----------------------------------------------------------------------------
$ 364,275
-----------------------------------------------------------------------------
Consumer Services -- 0.2%
-----------------------------------------------------------------------------
Stewart Enterprises
$ 600 10.75%, 7/1/08 $ 666,000
-----------------------------------------------------------------------------
$ 666,000
-----------------------------------------------------------------------------
Containers and Packaging -- 0.1%
-----------------------------------------------------------------------------
Graphic Packaging Corp.
$ 80 8.625%, 2/15/12 $ 83,000
Stone Container Corp., Sr. Notes
260 8.375%, 7/1/12 263,250
Tekni-Plex, Inc., Sr. Sub. Notes
90 12.75%, 6/15/10(2) 93,600
-----------------------------------------------------------------------------
$ 439,850
-----------------------------------------------------------------------------
Distribution/Wholesale -- 0.2%
-----------------------------------------------------------------------------
B&G Foods, Inc., Sr. Sub. Notes
$ 75 9.625%, 8/1/07(2) $ 77,250
Fleming Companies, Inc., Sr. Notes
270 9.25%, 6/15/10 267,300
Roundy's, Inc. Sr. Sub. Notes
145 8.875%, 6/15/12 147,356
-----------------------------------------------------------------------------
$ 491,906
-----------------------------------------------------------------------------
Drugs -- 0.2%
-----------------------------------------------------------------------------
Alaris Medical Systems
$ 240 11.625%, 12/1/06 $ 271,200
Biovall Corp., Sr. Sub. Notes
300 7.875%, 4/1/10 291,000
-----------------------------------------------------------------------------
$ 562,200
-----------------------------------------------------------------------------
Electronic Components -- 0.1%
-----------------------------------------------------------------------------
Flextronics International Ltd., Sr. Sub. Notes
$ 110 9.875%, 7/1/10 $ 115,500
Stoneridge, Inc., Sr. Notes
150 11.50%, 5/1/12(2) 152,250
-----------------------------------------------------------------------------
$ 267,750
-----------------------------------------------------------------------------
Electronic Components - Semiconductors -- 0.2%
-----------------------------------------------------------------------------
Chippac International Ltd.
$ 75 12.75%, 8/1/09 $ 79,125
Fairchild Semiconductor, Sr. Sub. Notes
395 10.50%, 2/1/09 422,650
-----------------------------------------------------------------------------
$ 501,775
-----------------------------------------------------------------------------
Energy Services -- 0.5%
-----------------------------------------------------------------------------
AEI Resource, LLC
$ 250 11.75%, 5/8/09 $ 236,250
Dresser Inc., Sr. Sub. Notes
300 9.375%, 4/15/11(2) 305,250
Grey Wolf, Inc., Sr. Notes
120 8.875%, 7/1/07 123,600
Grey Wolf, Inc., Series C
40 8.875%, 7/1/07 40,600
Hornbock Leevac Marine Services, Sr. Notes
95 10.825%, 8/1/08 99,869
Luscar Coal, Ltd., Sr. Notes
300 9.75%, 10/15/11 324,000
Port Arthur Finance Corp.
360 12.50%, 1/15/09 403,200
Trico Marine Services, Sr. Notes
125 8.875%, 5/15/12 125,625
-----------------------------------------------------------------------------
$ 1,658,394
-----------------------------------------------------------------------------
Engines -- 0.1%
-----------------------------------------------------------------------------
Briggs and Stratton Corp.
$ 250 8.875%, 3/15/11(2) $ 263,750
-----------------------------------------------------------------------------
$ 263,750
-----------------------------------------------------------------------------
Entertainment -- 0.5%
-----------------------------------------------------------------------------
Premier Parks, Inc.
$ 1,150 9.75%, 6/15/07 $ 1,184,500
Six Flags, Inc., Sr. Notes
30 9.50%, 2/1/09 30,750
330 8.875%, 2/1/10 330,000
-----------------------------------------------------------------------------
$ 1,545,250
-----------------------------------------------------------------------------
Environmental Services -- 0.1%
-----------------------------------------------------------------------------
Allied Waste Industries, Inc.
$ 435 10.00%, 8/1/09(2) $ 429,597
-----------------------------------------------------------------------------
$ 429,597
-----------------------------------------------------------------------------
Foods -- 0.4%
-----------------------------------------------------------------------------
American Seafood Group LLC, Sr. Sub. Notes
$ 450 10.125%, 4/5/10(2) $ 456,750
Burns Philip Capital Ltd., Sr. Sub. Notes
270 9.75%, 7/15/12 268,650
Dean Foods Co., Sr. Notes
155 8.15%, 8/1/07 160,631
New World Pasta Company
210 9.25%, 2/15/09 204,750
-----------------------------------------------------------------------------
$ 1,090,781
-----------------------------------------------------------------------------
Furniture and Appliances -- 0.1%
-----------------------------------------------------------------------------
Fedders North America
$ 515 9.375%, 8/15/07 $ 373,375
-----------------------------------------------------------------------------
$ 373,375
-----------------------------------------------------------------------------
Gaming -- 1.2%
-----------------------------------------------------------------------------
Anchor Gaming
$ 1,500 9.875%, 10/15/08 $ 1,766,250
Argosy Gaming Co.
90 10.75%, 6/1/09 97,200
Boyd Gaming Corp., Sr. Sub. Notes
135 9.50%, 7/15/07 137,025
Mohegan Tribal Gaming, Sr. Sub. Notes
300 8.00%, 4/1/12 302,625
Penn National Gaming, Inc., Sr. Sub. Notes
920 11.125%, 3/1/08 997,050
Wheeling Island Gaming
400 10.125%, 12/15/09 414,000
-----------------------------------------------------------------------------
$ 3,714,150
-----------------------------------------------------------------------------
Health Services -- 0.0%
-----------------------------------------------------------------------------
Select Medical Corp., Sr. Sub. Notes
$ 45 9.50%, 6/15/09 $ 46,125
-----------------------------------------------------------------------------
$ 46,125
-----------------------------------------------------------------------------
Instruments - Controls -- 0.3%
-----------------------------------------------------------------------------
Wesco Distribution, Inc.
$ 1,000 9.125%, 6/1/08 $ 965,000
-----------------------------------------------------------------------------
$ 965,000
-----------------------------------------------------------------------------
Instruments - Scientific -- 0.2%
-----------------------------------------------------------------------------
Fisher Scientific International, Sr. Sub. Notes
$ 600 9.00%, 2/1/08 $ 616,500
-----------------------------------------------------------------------------
$ 616,500
-----------------------------------------------------------------------------
Lodging -- 0.2%
-----------------------------------------------------------------------------
Host Marriott L.P., Series I
$ 375 9.50%, 1/15/07 $ 380,156
John Q. Hamons
115 8.875%, 5/15/12 113,275
-----------------------------------------------------------------------------
$ 493,431
-----------------------------------------------------------------------------
Lodging and Gaming -- 1.2%
-----------------------------------------------------------------------------
Ameristar Casinos, Inc.
$ 150 10.75%, 2/15/09 $ 161,625
Boyd Gaming Corp.
70 9.25%, 10/1/03 71,925
Hollywood Casino Shreveport, 1st Mtg. Notes
475 13.00%, 8/1/06 522,500
Hollywood Casino, Sr. Sub. Notes
290 11.25%, 5/1/07 314,650
Majestic Star Casino, LLC
880 10.875%, 7/1/06 919,600
Mandalay Resort Group, Sr. Sub. Notes
60 10.25%, 8/1/07 63,225
MGM Mirage, Inc.
500 9.75%, 6/1/07 530,000
Sun International Hotels, Sr. Sub. Notes
195 8.875%, 8/15/11 202,312
Venetian Casino
900 11.00%, 8/15/10 910,125
-----------------------------------------------------------------------------
$ 3,695,962
-----------------------------------------------------------------------------
Machinery -- 0.1%
-----------------------------------------------------------------------------
Joy Global, Inc., Series B
$ 120 8.75%, 3/15/12 $ 123,300
Terex Corp.
60 10.375%, 4/1/11 64,800
150 9.25%, 7/15/11 156,000
-----------------------------------------------------------------------------
$ 344,100
-----------------------------------------------------------------------------
Manufacturing -- 0.5%
-----------------------------------------------------------------------------
Foamex L.P./Capital Corp.
$ 210 10.75%, 4/1/09 $ 215,250
Insilco Corp.
1,000 12.00%, 8/15/07* 80,000
Transdigm Inc.
930 10.375%, 12/1/08 957,900
Trimas Corp., Sr. Sub. Notes
180 9.875%, 6/15/12(1) 183,150
-----------------------------------------------------------------------------
$ 1,436,300
-----------------------------------------------------------------------------
Medical Products -- 0.1%
-----------------------------------------------------------------------------
Advanced Medical Optics, Sr. Sub. Notes
$ 105 9.25%, 7/15/10 $ 104,212
Hanger Orthopedic Group
105 10.375%, 2/15/09 109,725
-----------------------------------------------------------------------------
$ 213,937
-----------------------------------------------------------------------------
Medical Services -- 0.2%
-----------------------------------------------------------------------------
Insight Health Services, Series B
$ 90 9.875%, 11/1/11 $ 90,900
Magellan Health Services, Sr. Notes
235 9.375%, 11/15/07(2) 177,425
Magellan Health Services, Sr. Sub. Notes
30 9.00%, 2/15/08 10,950
Pacificare Health Systems, Sr. Notes
185 10.75%, 6/1/09 190,319
-----------------------------------------------------------------------------
$ 469,594
-----------------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 0.6%
-----------------------------------------------------------------------------
Chesapeake Energy Corp.
$ 555 8.375%, 11/1/08 $ 557,775
Premcor USA, Inc.
75 11.50%, 10/1/09 79,125
SESI, LLC
585 8.875%, 5/15/11(2) 593,775
Transocean Sedco Forex
500 9.50%, 12/15/08 597,939
-----------------------------------------------------------------------------
$ 1,828,614
-----------------------------------------------------------------------------
Oil and Gas - Exploration and Production -- 0.7%
-----------------------------------------------------------------------------
Comstock Resources, Inc.
$ 480 11.25%, 5/1/07 $ 498,000
Encore Acquisition Co., Sr. Sub. Notes
185 8.375%, 6/15/12 186,388
Penzoil-Quaker State
120 10.00%, 11/1/08 141,150
Plains E&P Co., Sr. Sub. Notes
130 8.75%, 7/1/12 127,889
Plains Resources, Inc., Series B
200 10.25%, 3/15/06 207,500
Western Natural Gas
1,000 10.00%, 6/15/09 1,085,000
-----------------------------------------------------------------------------
$ 2,245,927
-----------------------------------------------------------------------------
Paper and Forest Products -- 0.1%
-----------------------------------------------------------------------------
Georgia Pacific Corp., Debs.
$ 90 9.625%, 3/15/22 $ 87,755
Longview Fibre Co., Sr. Sub. Notes
225 10.00%, 1/15/09 234,563
-----------------------------------------------------------------------------
$ 322,318
-----------------------------------------------------------------------------
Printing and Business Products -- 0.1%
-----------------------------------------------------------------------------
MDC Communications Corp., Sr. Sub. Notes
$ 215 10.50%, 12/1/06 $ 188,125
-----------------------------------------------------------------------------
$ 188,125
-----------------------------------------------------------------------------
Printing or Publishing - Diversification -- 0.1%
-----------------------------------------------------------------------------
Mail-Well I Corp.
$ 130 9.625%, 3/15/12 $ 131,300
-----------------------------------------------------------------------------
$ 131,300
-----------------------------------------------------------------------------
Publishing -- 0.1%
-----------------------------------------------------------------------------
Hollinger International Publications, Inc.
$ 85 9.25%, 3/15/07 $ 87,975
Vertis, Inc., Sr. Notes
85 10.875%, 6/15/09* 85,638
-----------------------------------------------------------------------------
$ 173,613
-----------------------------------------------------------------------------
REITS -- 0.2%
-----------------------------------------------------------------------------
Felcor Lodging L.P., Sr. Sub. Notes
$ 187 8.50%, 6/1/11 $ 184,195
Meristar Hospitality Corp.
120 9.125%, 1/15/11 115,200
Ventas Realty LP/Capital Corp., Sr. Notes
70 8.75%, 5/1/09(2) 71,050
325 9.00, 5/1/12(2) 334,750
-----------------------------------------------------------------------------
$ 705,195
-----------------------------------------------------------------------------
Retail - Apparel -- 0.0%
-----------------------------------------------------------------------------
Mothers Work, Inc., Sr. Notes
$ 105 12.625%, 8/1/05 $ 106,155
-----------------------------------------------------------------------------
$ 106,155
-----------------------------------------------------------------------------
Retail - Food and Drug -- 0.2%
-----------------------------------------------------------------------------
Pantry, Inc., Sr. Sub. Notes
$ 620 10.25%, 10/15/07 $ 564,200
-----------------------------------------------------------------------------
$ 564,200
-----------------------------------------------------------------------------
Retail - General -- 0.3%
-----------------------------------------------------------------------------
Kindercare Learning Centers, Inc., Sr. Sub. Notes
$ 1,000 9.50%, 2/15/09 $ 995,000
-----------------------------------------------------------------------------
$ 995,000
-----------------------------------------------------------------------------
Semiconductor Equipment & Products -- 0.1%
-----------------------------------------------------------------------------
Amkor Technologies, Inc., Sr. Notes
$ 255 9.25%, 5/1/06 $ 210,375
105 9.25%, 2/15/08(2) 86,100
-----------------------------------------------------------------------------
$ 296,475
-----------------------------------------------------------------------------
Steel -- 0.2%
-----------------------------------------------------------------------------
AK Steel Corp.
$ 90 7.75%, 6/15/12 $ 89,550
UCAR Finance, Inc.
390 10.25%, 2/15/12 399,750
-----------------------------------------------------------------------------
$ 489,300
-----------------------------------------------------------------------------
Telecommunications - Services -- 0.1%
-----------------------------------------------------------------------------
Avaya, Inc.
$ 360 11.125%, 4/1/09 $ 331,200
-----------------------------------------------------------------------------
$ 331,200
-----------------------------------------------------------------------------
Transportation -- 0.3%
-----------------------------------------------------------------------------
Intermet Corp., Sr. Notes
$ 130 9.75%, 6/15/09 $ 130,975
Pacer International, Inc.
505 11.75%, 6/1/07 512,575
Petroleum Helicopters, Series B
155 9.375%, 5/1/09 159,650
-----------------------------------------------------------------------------
$ 803,200
-----------------------------------------------------------------------------
Utilities -- 0.1%
-----------------------------------------------------------------------------
AES Corp., Sr. Notes
$ 175 8.75%, 12/15/02 $ 163,625
-----------------------------------------------------------------------------
$ 163,625
-----------------------------------------------------------------------------
Utility - Electric Power Generation -- 0.0%
-----------------------------------------------------------------------------
Calpine Corp., Sr. Notes
$ 150 8.50%, 2/15/02 $ 101,250
-----------------------------------------------------------------------------
$ 101,250
-----------------------------------------------------------------------------
Wireless Communication Services -- 0.1%
-----------------------------------------------------------------------------
Dobson/Signet Communications Corp.
$ 625 12.25%, 12/15/08 $ 378,125
Ubiquitel Operating Co.
95 14.00%, 4/15/10 13,775
-----------------------------------------------------------------------------
$ 391,900
-----------------------------------------------------------------------------
Wireless Equipment -- 0.0%
-----------------------------------------------------------------------------
Spectrasite Holdings, Inc., Sr. Notes
$ 30 10.75%, 3/15/10 $ 13,350
-----------------------------------------------------------------------------
$ 13,350
-----------------------------------------------------------------------------
Wireline Communication Services -
North America -- 0.0%
-----------------------------------------------------------------------------
Metromedia Fiber Network, Sr. Notes
$ 500 10.00%, 11/15/08* $ 7,500
500 10.00%, 12/15/09* 7,500
-----------------------------------------------------------------------------
$ 15,000
-----------------------------------------------------------------------------
Total Corporate Bonds & Notes
(identified cost $43,832,427) $ 41,341,507
-----------------------------------------------------------------------------
Common Stocks, Preferred Stocks and Warrants -- 2.2%
Shares/
Rights Security Value
-----------------------------------------------------------------------------
11,403 American Marketing Industries Inc.,
Common, Series B* $ 0
4,887 American Marketing Industries, Inc.,
Preferred, Series A-1 0
11,403 American Marketing Industries, Inc.,
Preferred, Series A-4 0
32,537 Carlyle-Key Partners* 32,537
2,992 Enviromental Systems Products Common Stock* 0
516 Enviromental Systems Products Preferred Stock* 49,029
3,144 Exide Corp., Warrants* 0
90,043 IHDG Realty, Inc.* 0
90,043 Imperial Home Decor Group* 0
9 Kac Mezz Holdings, Class A, Warrants* 0
8 Kac Mezz Holdings, Class B, Warrants* 0
15 Key Plastics Holdings, Inc.* 15,231
163 Tokheim Corp.* 0
11,086 Tokheim Corp. Warrants* 0
925,000 Van Kampen Senior Income Trust* 6,641,500
-----------------------------------------------------------------------------
Total Common Stocks, Preferred Stocks and Warrants
(identified cost, $7,127,545) $ 6,738,297
-----------------------------------------------------------------------------
Commercial Paper -- 3.2%
Principal
Amount
(000's
Omitted) Security Value
-----------------------------------------------------------------------------
CXC, Inc.
$ 5,144 1.97%, 7/1/02 $ 5,144,000
Household Finance Corp.
4,666 1.75%, 7/15/02 4,662,824
-----------------------------------------------------------------------------
$ 9,806,824
-----------------------------------------------------------------------------
Total Commercial Paper
(amortized cost, $9,806,824) $ 9,806,824
-----------------------------------------------------------------------------
Total Investments -- 166.1%
(identified cost, $518,678,592) $ 503,098,066
-----------------------------------------------------------------------------
Other Assets, Less Liabilities -- (66.1%) $(200,338,961)
-----------------------------------------------------------------------------
Net Assets -- 100% $ 302,759,105
-----------------------------------------------------------------------------
(1) Senior floating rate interests often require prepayments from excess cash
flows or permit the borrower to repay at its election. The degree to which
borrowers repay, whether as a contractual requirement or at their election,
cannot be predicted with accuracy. As a result, the actual remaining
maturity may be substantially less than the stated maturities shown.
However, it is anticipated that the senior floating rate interests will have
an expected average life of approximately two to four years.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
* Non-income producing security.
Note: At June 30, 2002, the Trust had unfunded commitments amounting to
$7,677,697 under various revolving credit agreements.
See Notes to financial statements.
EATON VANCE SENIOR INCOME TRUST AS OF JUNE 30, 2002
----------------------------------------------------------------------------
FINANCIAL STATEMENTS
----------------------------------------------------------------------------
Statement of Assets and Liabilities
As of June 30, 2002
Assets
----------------------------------------------------------------------------
Investments, at value
(identified cost, $518,678,592) $503,098,066
Cash 11,734,490
Receivable for investments sold 897,158
Dividends and interest receivable 2,810,558
Prepaid expenses 88,127
----------------------------------------------------------------------------
Total assets $518,628,399
----------------------------------------------------------------------------
Liabilities
-----------------------------------------------------------------
Amounts due under commercial paper program $105,000,000
Miscellaneous liabilities 275,495
Payable for investments purchased 187,850
Payable to affiliate for Trustees' fees 10,661
Dividends payable 56
Accrued expenses:
Interest 153,098
Operating expense 218,525
----------------------------------------------------------------------------
Total liabilities $105,845,685
----------------------------------------------------------------------------
Auction Preferred Shares (4,400 shares outstanding) at
liquidation value plus cumulative unpaid dividends $110,023,609
----------------------------------------------------------------------------
Net assets applicable to common shares $302,759,105
----------------------------------------------------------------------------
Sources of Net Assets
----------------------------------------------------------------------------
Common Shares, $0.01 par value; unlimited number of
shares authorized, 35,948,079 shares issued and
outstanding $ 359,481
Additional paid-in capital 356,878,145
Accumulated net realized loss (computed on the basis
of identified cost) (40,545,263)
Accumulated undistributed net investment income 1,647,268
Net unrealized depreciation (computed on the basis
of identified cost) (15,580,526)
----------------------------------------------------------------------------
Net assets applicable to common shares $302,759,105
----------------------------------------------------------------------------
Net Asset Value Per Common Share
----------------------------------------------------------------------------
($302,759,105 / 35,948,079 common shares
issued and outstanding) $ 8.42
----------------------------------------------------------------------------
See notes to financial statements.
Statement of Operations
For the Year Ended
June 30, 2002
Investment Income
------------------------------------------------------------------------------
Interest $ 33,801,145
Dividends 425,802
Facility fees earned 33,973
Miscellaneous 90,977
------------------------------------------------------------------------------
Total investment income $ 34,351,897
------------------------------------------------------------------------------
Expenses
------------------------------------------------------------------------------
Investment adviser fee $ 4,407,992
Administration fee 1,296,002
Trustees' fees and expenses 26,018
Interest expense 2,636,290
Preferred shares remarketing agent fee 273,880
Legal and accounting services 192,246
Custodian fee 169,610
Printing and postage 89,513
Loan program structuring expense 85,856
Transfer and dividend disbursing agent fees 68,663
Registration fees 20,477
Miscellaneous 381,219
------------------------------------------------------------------------------
Total expenses $ 9,647,766
------------------------------------------------------------------------------
Net investment income $ 24,704,131
------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $(20,444,427)
------------------------------------------------------------------------------
Net realized loss $(20,444,427)
------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 5,582,366
------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 5,582,366
------------------------------------------------------------------------------
Net realized and unrealized loss $(14,862,061)
------------------------------------------------------------------------------
Distributions to preferred shareholders $ (2,726,001)
------------------------------------------------------------------------------
Net increase in net assets from operations $ 7,116,069
------------------------------------------------------------------------------
See notes to financial statements.
EATON VANCE SENIOR INCOME TRUST AS OF JUNE 30, 2002
----------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
----------------------------------------------------------------------------
Statements of Changes in Net Assets
Increase (Decrease) Year Ended Year Ended
in Net Assets June 30, 2002 June 30, 2001
------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 24,704,131 $ 31,119,007
Net realized loss (20,444,427) (18,671,667)
Net change in unrealized appreciation
(depreciation) 5,582,366 (13,758,281)
Distributions to preferred shareholders (2,726,001) (47,014)
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
operations $ 7,116,069 $ (1,357,955)
-----------------------------------------------------------------------------------------------
Distributions to common shareholders --
From net investment income $(22,675,640) $(31,484,729)
-----------------------------------------------------------------------------------------------
Total distributions to shareholders $(22,675,640) $(31,484,729)
-----------------------------------------------------------------------------------------------
Capital share transactions --
Reinvestment of distributions to shareholders $ 721,050 $ 1,875,187
Offering costs and preferred shares underwriting
discounts -- (1,237,500)
-----------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions $ 721,050 $ 637,687
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(14,838,521) $(32,204,997)
-----------------------------------------------------------------------------------------------
Net Assets Applicable To Common Shares
-----------------------------------------------------------------------------------------------
At beginning of year $317,597,626 $349,802,623
-----------------------------------------------------------------------------------------------
At end of year $302,759,105 $317,597,626
-----------------------------------------------------------------------------------------------
Accumulated undistributed net investment income
included in net assets applicable to common shares
-----------------------------------------------------------------------------------------------
At end of year $ 1,647,268 $ 2,390,529
-----------------------------------------------------------------------------------------------
See notes to financial statements.
Statement of Cash Flows
Year Ended
Increase (Decrease) in Cash June 30, 2002
-----------------------------------------------------------------------------
Cash Flows From (Used For) Operating Activities --
Purchases of loan interests and corporate bonds $(362,265,590)
Proceeds from sales and principal repayments 339,166,910
Interest and dividends received 34,298,118
Miscellaneous income received 216,906
Interest paid (2,968,848)
Prepaid (24,092)
Operating expenses paid (7,128,284)
Net increase in short-term investments (9,806,824)
-----------------------------------------------------------------------------
Net cash used for operating activities $ (8,511,704)
-----------------------------------------------------------------------------
Cash Flows From (Used For) Financing Activities --
Cash distributions paid (excluding reinvestments of $721,050) $ (24,703,940)
Net increase in amounts due under commercial paper program 34,000,000
-----------------------------------------------------------------------------
Net cash from financing activities $ 9,296,060
-----------------------------------------------------------------------------
Net increase in cash $ 784,356
-----------------------------------------------------------------------------
Cash at beginning of period $ 10,950,134
-----------------------------------------------------------------------------
Cash at end of period $ 11,734,490
-----------------------------------------------------------------------------
Reconciliation of Net Decrease in Net Assets
From Operations to Net Cash Used for Operating Activities
-----------------------------------------------------------------------------
Net increase in net assets from operations $ 9,842,070
Increase in receivable for investments sold (888,310)
Decrease in dividends and interest receivable 849,231
Increase in prepaid expenses (24,092)
Decrease in deferred facility fee income (33,973)
Increase in miscellaneous liability 125,929
Increase in payable to affiliate 5,226
Decrease in accrued expenses (454,592)
Increase payable for investments purchased 187,850
Net increase in investments (18,121,043)
-----------------------------------------------------------------------------
Net cash used for operating activities $ (8,511,704)
-----------------------------------------------------------------------------
See notes to financial statements.
EATON VANCE SENIOR INCOME TRUST AS OF JUNE 30, 2002
-------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
-------------------------------------------------------------------------------
Financial Highlights
Year Ended June 30,
-------------------------------------------------------------------
2002(1)(2) 2001(1) 2000 1999(1)(3)
-------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year
(Common Shares) $ 8.860 $ 9.810 $ 10.090 $ 10.000
-------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
-------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.687 $ 0.872 $ 0.868 $ 0.539
Net realized and unrealized gain (loss) (0.420) (0.908) (0.271) 0.036
Distributions to preferred shareholders (0.076) -- -- --
-------------------------------------------------------------------------------------------------------------------
Total income (loss) from operations $ 0.191 $ (0.036) $ 0.597 $ 0.575
-------------------------------------------------------------------------------------------------------------------
Less distributions to common shareholders
-------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.631) $ (0.882) $ (0.877) $ (0.465)
-------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.631) $ (0.882) $ (0.877) $ (0.465)
-------------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering costs
charged to paid-in capital $ -- $ (0.001) $ -- $ (0.020)
-------------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ -- $ (0.031) $ -- $ --
-------------------------------------------------------------------------------------------------------------------
Net asset value -- End of year (Common Shares) $ 8.420 $ 8.860 $ 9.810 $ 10.090
-------------------------------------------------------------------------------------------------------------------
Market value -- End of year (Common Shares) . $ 7.760 $ 8.940 $ 9.313 $ 10.000
-------------------------------------------------------------------------------------------------------------------
Total Return(4) (6.18)% 5.65% 2.00% 4.93%
-------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+++
-------------------------------------------------------------------------------------------------------------------
Net assets applicable to common shares, end
of year (000's omitted) $ 302,759 $ 317,597 $ 349,803 $ 359,705
Ratios (As a percentage of average net assets
attributable to common shares):
Net expenses(5) 2.28% 1.89% 1.84% 1.65%(6)
Interest expense 0.85% 2.50% 2.41% 2.02%(6)
Total expenses(5) 3.13% 4.39% 4.25% 3.67%(6)
Net investment income(5) 8.01% 9.37% 8.73% 8.17%(6)
Portfolio Turnover 69% 37% 63% 27%
-------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Trust may reflect a reduction of the investment adviser fee
and the actions not been taken, the ratios and net investment income per share would have
been as follows:
Ratios (As a percentage of average net assets attributable to common shares):
Expenses 1.97%(6)
Interest expense 2.02%(6)
Net investment income 7.85%(6)
Net investment income per share $ 0.518
++ The ratios reported above are based on net assets attributable solely to common shares. The
ratios based on net assets, including amounts related to preferred shares since the initial
offering of preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses(5) 1.68% 1.88%
Interest expense 0.63% 2.50%
Total expenses(5) 2.31% 4.38%
Net investment income(5) 5.90% 9.33%
-------------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 4,400 4,400
Asset coverage per preferred shares(7) $ 93,814 $ 97,192
Involuntary liquidation preference per
preferred share(8) $ 25,000 $ 25,000
Approximate market value per preferred
share(8) $ 25,000 $ 25,000
-------------------------------------------------------------------------------------------------------------------
(1) Net investment income per share was computed using average shares outstanding.
(2) The Trust has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies
and began using the interest method to amortize premiums on fixed-income securities. The effect of this change
for the year ended June 30, 2002 was to increase net investment income per share by less than $0.001, increase
net realized and unrealized losses per share by less than $0.001, and increase the ratio of net investment
income to average net assets attributable to common shares by less than 0.01%. Per share data and ratios for the
periods prior to July 1, 2001 have not been restated to reflect this change in presentation.
(3) For the period from the start of business, October 30, 1998, to June 30, 1999.
(4) Total return is calculated assuming a purchase at market value on the first day and a sale at the market value
on the last day of the period reported. Dividends and distributions, if any, are assumed reinvested on the
reinvestment date. Total return is not computed on an annualized basis.
(5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets
attributable to common shares reflect the Trust's leverage capital structure.
(6) Annualized.
(7) Calculated by subtracting the Trust's total liabilities (not including the preferred shares) from the Trust's
total assets, and dividing this by the number of preferred shares outstanding.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
EATON VANCE SENIOR INCOME TRUST AS OF JUNE 30, 2002
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
1 Significant Accounting Policies
--------------------------------------------------------------------------------
Eaton Vance Senior Income Trust (the Trust) is an entity commonly known as a
Massachusetts business trust and is registered under the Investment Company
Act of 1940 as a non-diversified closed-end management investment company.
The Trust's investment objective is to provide a high level of current
income consistent with the preservation of capital, by investing primarily
in senior, secured floating rate loans. The following is a summary of
significant accounting policies consistently followed by the Trust in the
preparation of its financial statements. The policies are in conformity with
accounting principles generally accepted in the United States of America.
Certain prior year amounts have been reclassified for presentation purposes.
A Investment Valuation -- The Trust's investments are primarily in interests
in senior floating rate loans (Senior Loans). Certain Senior Loans are
deemed liquid because reliable market quotations are readily available for
them. Liquid loans are valued on the basis of prices furnished by a pricing
service. Other Senior Loans are valued at fair value by the Trust's
investment adviser, Eaton Vance Management (EVM), under procedures
established by the Trustees as permitted by Section 2(a)(41) of the
Investment Company Act of 1940. Such procedures include the consideration of
relevant factors, data and information relating to fair value, including (i)
the characteristics of and fundamental analytical data relating to the
Senior Loan, including the cost, size, current interest rate, period until
next interest rate reset, maturity and base lending rate of the Senior Loan,
the terms and conditions of the Senior Loan and any related agreements and
the position of the loan in the borrower's debt structure; (ii) the nature,
adequacy and value of the collateral, including the Trust's rights, remedies
and interests with respect to the collateral; (iii) the creditworthiness of
the Borrower, based on evaluations of its financial condition, financial
statements and information about the Borrower's business, cash flows,
capital structure and future prospects; (iv) information relating to the
market for the Senior Loan including price quotations for and trading in the
Senior Loan and interests in similar loans and the market environment and
investor attitudes towards the Senior Loan and interests in similar loans;
(v) the reputation and financial condition of the agent and any intermediate
participant in the loan; and (vi) general economic and market conditions
affecting the fair value of the Senior Loan. Other portfolio securities
(other than short-term obligations, but including listed issues) may be
valued on the basis of prices furnished by one or more pricing services
which determine prices for normal, institutional-size trading units of such
securities using market information, transactions for comparable securities
and various relationships between securities which are generally recognized
by institutional traders. In certain circumstances, portfolio securities
will be valued at the last sales price on the exchange that is the primary
market for such securities, or the last quoted bid price for those
securities for which the over-the-counter market is the primary market or
for listed securities in which there were no sales during the day. The value
of interest rate swaps is determined by changes in the relationship between
two rates of interest. Short-term obligations which mature in sixty days or
less are valued at amortized cost, if their original term to maturity when
acquired by the Trust was 60 days or less or are valued at amortized cost
using their value on the 61st day prior to maturity, if their original term
to maturity when acquired by the Trust was more then 60 days, unless in each
case this is determined not to represent fair value. Repurchase agreements
are valued at cost plus accrued interest. Other portfolio securities for
which there are no quotations or valuations are valued at fair value as
determined in good faith by or on behalf of the Trustees.
B Income -- Interest income from Senior Loans is recorded on the accrual
basis at the then-current interest rate, while all other interest income is
determined on the basis of interest accrued, adjusted for amortization of
premium or discount. Facility fees received are recognized as income over
the expected term of the loan. Dividend income is recorded on the ex-
dividend date for dividends received in cash and/or securities. Effective
July 1, 2001, the Trust adopted the provisions of the AICPA Audit and
Accounting Guide for Investment Companies, as revised, effective for fiscal
years beginning after December 15, 2000. As required, the Trust began
accreting market discounts and premiums on debt securities effective July 1,
2001. The cumulative effect of this accounting change had no impact on the
total net assets, but resulted in a $63,435 reduction in cost of securities
and a corresponding $63,435 increase in unrealized appreciation, based on
securities held by the Trust on June 30, 2002.
The effect of this change for the year ended June 30, 2002 was to increase
net investment income by $1,118, increase net realized gain by $52,072, and
decrease net unrealized appreciation by $53,190.
The statement of changes in net assets and financial highlights for prior
periods have not been restated to reflect these changes in policy.
C Federal Taxes -- The Trust's policy is to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and
to distribute to shareholders each year all of its taxable income, including
any net realized gain on investments. Accordingly, no provision for federal
income or excise tax is necessary. At June 30, 2002, the Trust, for federal
income tax purposes, had a capital loss carryover of $29,482,716 which will
expire on June 30, 2009 ($1,925,241) and June 30, 2010 ($27,557,475). These
amounts will reduce taxable income arising from future net realized gain on
investments, if any, to the extent permitted by the Internal Revenue Code
and thus will reduce the amount of the distributions to shareholders which
would otherwise be necessary to relieve the Trust of any liability for
federal income or excise tax.
At June 30, 2002 the undistributed ordinary income on a tax basis was
$1,647,268. The Trust did not have any undistributed long-term gains at
December 31, 2001.
Additionally, at June 30, 2002, the Trust had net capital losses of
$11,045,646 attributable to security transactions incurred after October 31,
2001. These are treated as arising on the first day of the Trust's next
taxable year.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Trust. Pursuant to the custodian agreement, IBT receives a
fee reduced by credits which are determined based on the average daily cash
balances the Trust maintains with IBT. All significant credit balances used
to reduce the Trust's custodian fees are reported as a reduction of expenses
on the Statement of Operations.
E Use of Estimates -- The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
F Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Gains and losses on securities sold are
determined on the basis of identified cost.
2 Auction Preferred Shares (APS)
--------------------------------------------------------------------------------
The Trust issued 2,200 shares of Auction Preferred Shares Series A and 2,200
shares of Auction Preferred Shares Series B on June 27, 2001 in a public
offering. The underwriting discount and other offering costs were recorded
as a reduction to paid in capital. Dividends on the APS, which accrue daily,
are paid cumulative at a rate which was established at the offering of the
APS and have been reset every 7 days thereafter by an auction. Dividend
rates at June 30, 2002 were 1.95% and 1.95% for Series A and Series B
Shares, respectively. Series A and Series B are identical in all respects
except for the dates of reset for the dividend rates.
The APS are redeemable at the option of the Trust, at a redemption price
equal to $25,000 per share, plus accumulated and unpaid dividends on any
dividend payment date. The APS are also subject to mandatory redemption at a
redemption price equal to $25,000 per share, plus accumulated and unpaid
dividends, if the Trust is in default on its asset maintenance requirements
with respect to the APS. If the dividends on the APS shall remain unpaid in
an amount equal to two full years' dividends, the holders of the APS as a
class have the right to elect a majority of the Board of Trustees. In
general, the holders of the APS and the common shares have equal voting
rights of one vote per share, except that the holders of the APS, as a
separate class, have the right to elect at least two members of the Board of
Trustees. The APS have a liquidation preference of $25,000 per share, plus
accumulated and unpaid dividends. The Trust is required to maintain certain
asset coverage with respect to the APS as defined in the Trust's By-Laws.
The Trust pays annual fees equivalent to 0.25% of the preferred shares'
liquidation value for the remarketing efforts associated with the preferred
auctions.
In accordance with the provisions of EITF D-98, "Classification and
Measurement of Redeemable Securities", effective for the current period, the
Trust has reclassified its APS Shares outside of permanent equity in the net
assets section of the statement of assets and liabilities. In addition,
distributions to APS shareholders are now classified as a component of the
"Net increase in net assets from operations" on the statements of operations
and statement of changes in net assets, and as a component of the "Total
income (loss) from operations" in the financial highlights. Prior year
amounts presented have been restated to conform to this period's
presentation. This change has no impact on the net assets applicable to
common shares of the Trust.
3 Distributions to Shareholders
--------------------------------------------------------------------------------
The Trust intends to make monthly distributions to common shareholders of
net investment income, after payment of any dividends on any outstanding
preferred shares. Distributions are recorded on the ex-dividend date.
Distributions to preferred shareholders are recorded daily and are payable
at the end of each dividend period. Each dividend payment period for the
Auction Preferred Shares is generally seven days. The applicable dividend
rate for the Auction Preferred Shares on June 30, 2002 was 1.95% and 1.95%,
for Series A and Series B Shares, respectively. For the year ended June 30,
2002, the Trust paid dividends to Auction Preferred shareholders amounting
to $1,374,703 and $1,374,703 for Series A and Series B Shares, respectively,
representing an average APS dividend rate for such period of 2.45% and
2.45%, respectively.
4 Common Shares of Beneficial Interest
--------------------------------------------------------------------------------
The Agreement and Declaration of Trust permits the Trustees to issue an
unlimited number of full and fractional $0.01 par value common shares of
beneficial interest. Transactions in common shares were as follows:
Year Ended June 30,
------------------------
2002 2001
------------------------------------------------------------------------------
Issued to shareholders electing to receive payments of
distributions in Trust common shares 81,797 206,282
------------------------------------------------------------------------------
Net increase 81,797 206,282
------------------------------------------------------------------------------
5 Investment Adviser Fee and Other Transactions with Affiliates
--------------------------------------------------------------------------------
The investment adviser fee, computed at a monthly rate of 17/240 of 1%
(0.85% annually) of the Trust's average weekly gross assets, was earned by
EVM as compensation for management and investment advisory services rendered
to the Trust. For the year ended June 30, 2002, the fee was equivalent to
0.85% of the Trust's average daily gross assets and amounted to $4,407,992.
Except for Trustees of the Trust who are not members of EVM's organization,
officers and Trustees receive remuneration for their services to the Trust
out of such investment adviser fee. EVM also serves as the administrator of
the Trust. An administration fee, computed at the monthly rate of 1/48 of 1%
(0.25% annually) of the average weekly gross assets of the Trust, is paid to
EVM for managing and administering business affairs of the Trust. For the
year ended June 30, 2002, the fee was equivalent to 0.25% of the Trust's
average daily gross assets for such period and amounted to $1,296,002.
Certain officers and Trustees of the Trust are officers of the above
organization.
During the year ended June 30, 2002, the Trust engaged in purchase and sale
transactions with other funds that also utilize EVM, or an affiliate of EVM,
as an investment adviser. These purchases and sales transactions complied
with Rule 17-a7 under the Investment Company Act of 1940 and amounted to
$10,970,797 and $1,960,627 respectively.
6 Investment Transactions
--------------------------------------------------------------------------------
The Trust invests primarily in Senior Loans. The ability of the issuers of
the Senior Loans held by the Trust to meet their obligations may be affected
by economic developments in a specific industry. The cost of purchases and
the proceeds from principal repayments and sales of Senior Loans and
corporate bonds aggregated $362,453,081 and $340,055,220, respectively, for
the year ended June 30, 2002.
7 Short-Term Debt and Credit Agreements
--------------------------------------------------------------------------------
The Trust has entered into a revolving credit agreement that will allow the
Trust to borrow $120 million to support the issuance of commercial paper and
to permit the Trust to invest in accordance with its investment practices.
Interest is charged under the revolving credit agreement at the bank's base
rate or at an amount above either the bank's adjusted certificate of deposit
rate or federal funds effective rate. Interest expense includes a commitment
fee of approximately $181,000 which is computed at the annual rate of 0.15%
on the unused portion of the revolving credit agreement. There were no
significant borrowings under this agreement during the period. As of June
30, 2002, the Trust had commercial paper outstanding of $105,000,000, at an
interest rate of 1.77%. Maximum and average borrowings for the year ended
June 30, 2002 were $110,000,000 and approximately $100,000,000,
respectively, and the average interest rate was 2.49%.
8 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)
--------------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investment securities at June 30, 2002, as computed on a federal income tax
basis, were as follows:
Aggregate cost $518,695,493
---------------------------------------------------------------------------
Gross unrealized appreciation $ 3,377,390
Gross unrealized depreciation 18,975,347
---------------------------------------------------------------------------
Net unrealized depreciation $ 15,597,427
---------------------------------------------------------------------------
EATON VANCE SENIOR INCOME TRUST AS OF JUNE 30, 2002
-------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS CONT'D
-------------------------------------------------------------------------------
To the Trustees and Investors
of Eaton Vance Senior Income Trust
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Eaton Vance Senior Income Trust
(the Trust) as of June 30, 2002, and the related statement of operations and
cash flows for the year then ended, the statement of changes in net assets for
each of the years in the two-year period ended June 30, 2002 and the financial
highlights for each of the years in the four-year period then ended June 30,
2002. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. Our procedures included confirmation of securities and Senior
Loans owned at June 30, 2002 by correspondence with the custodian, brokers and
selling or agent banks; where replies were not received from brokers and
selling or agent banks, we performed other auditing procedures. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provides a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights, referred
to above, present fairly, in all material respects, the financial position of
Eaton Vance Senior Income Trust at June 30, 2002, and the results of its
operations, the changes in its net assets, its cash flows and its financial
highlights for the respective stated periods in conformity with accounting
principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 23, 2002
EATON VANCE SENIOR INCOME TRUST
-------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
-------------------------------------------------------------------------------
The Trust offers a dividend reinvestment plan (the Plan) pursuant to which
shareholders automatically have dividends and capital gains distributions
reinvested in common shares (the Shares) of the Trust unless they elect
otherwise through their investment dealer. On the distribution payment date,
if the net asset value per Share is equal to or less than the market price per
Share plus estimated brokerage commissions then new Shares will be issued. The
number of Shares shall be determined by the greater of the net asset value per
Share or 95% of the market price. Otherwise, Shares generally will be
purchased on the open market by the Plan Agent. Distributions subject to
income tax (if any) are taxable whether or not shares are reinvested.
If your shares are in the name of a brokerage firm, bank, or other nominee,
you can ask the firm or nominee to participate in the Plan on your behalf. If
the nominee does not offer the Plan, you will need to request that your shares
be re-registered in your name with the Trust's transfer agent, PFPC Inc. or
you will not be able to participate.
The Plan Agent's service fee for handling distributions will be paid by the
Trust. Each participant will be charged their pro rata share of brokerage
commissions on all open-market purchases.
Plan participants may withdraw from the Plan at any time by writing to the
Plan Agent at the address noted on the following page. If you withdraw, you
will receive shares in your name for all Shares credited to your account under
the Plan. If a participant elects by written notice to the Plan Agent to have
the Plan Agent sell part or all of his or her Shares and remit the proceeds,
the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions
from the proceeds.
If you wish to participate in the Plan and your shares are held in your own
name, you may complete the form on the following page and deliver it to the
Plan Agent.
Any inquires regarding the Plan can be directed to the Plan Agent, PFPC Inc.
at 1-800-331-1710.
EATON VANCE SENIOR INCOME TRUST
-------------------------------------------------------------------------------
APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
This form is for shareholders who hold their common shares in their own names.
If your common shares are held in the name of a brokerage firm, bank, or other
nominee, you should contact your nominee to see if it will participate in the
Plan on your behalf. If you wish to participate in the Plan, but your brokerage
firm, bank, or nominee is unable to participate on your behalf, you should
request that your common shares be re-registered in your own name which will
enable your participation in the Plan.
-------------------------------------------------------------------------------
The following authorization and appointment is given with the understanding
that I may terminate it at any time by terminating my participation in the Plan
as provided in the terms and cond itions of the Plan.
--------------------------------------
Please print exact name on account:
--------------------------------------
Shareholder signature Date
--------------------------------------
Shareholder signature Date
Please sign exactly as your common
shares are registered. All persons
whose names appear on the share
certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND
DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
THE AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING ADDRESS:
Eaton Vance Senior Income Trust
c/o PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027
800-331-1710
--------------------------------------------------------------------------------
NUMBER OF EMPLOYEES
The Trust is organized as a Massachusetts business trust and is registered
under the Investment Company Act of 1940, as amended, as a closed-end,
nondiversified, management investment company and has no employees.
NUMBER OF SHAREHOLDERS
As of June 30, 2002, our records indicate that there were 321 registered
shareholders for and approximately 16,607 shareholders owning the Trust shares
in street name, such as through brokers, banks, and financial intermediaries.
If you are a street name shareholder and wish to receive our reports directly,
which contain important information about the Trust, please write or call:
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265
NEW YORK STOCK EXHANGE SYMBOL
The New York Stock Exchange Symbol is EVF
EATON VANCE SENIOR INCOME TRUST AS OF JUNE 30, 2002
-------------------------------------------------------------------------------
MANAGEMENT AND ORGANIZATION
-------------------------------------------------------------------------------
FUND MANAGEMENT. The Trustees of Eaton Vance Senior Income Trust (the Trust)
are responsible for the overall management and supervision of the Trust's
affairs. The Trustees and officers of the Trust are listed below. Except as
indicated, each individual has held the office shown or other offices in the
same company for the last five years. The business address of each Trustee and
officer is The Eaton Vance Building, 255 State Street, Boston, Massachusetts,
02109.
Number of
Portfolios in
Position(s) Term of Office Fund Complex Other
with and Length of Principal Occupation(s) Overseen By Directorships
Name, Address and Age the Trust Service During Past Five Years Trustee(1) Held
--------------------------------------------------------------------------------------------------------------------------
Interested Trustee(s)
Jessica M. Bibliowicz Trustee Until 2002. President and Chief Executive 176 None
DOB: 11/28/59 3 years. Officer of National Financial
Trustee Partners (financial services
since company) (since April 1999).
1999. President and Chief Operating
Officer of John A. Levin &
Co. (registered investment
advisor) (July 1997 to April
1999) and a Director of
Baker, Fentress & Company,
which owns John A. Levin &
Co., (July 1997 to April
1999). Ms. Bibliowicz is an
interested person because of
her affiliation with a
brokerage firm.
James B. Hawkes President Until 2002. Chairman, President and Chief 176 Director of EVC,
DOB: 11/19/41 and Trustee 3 years. Executive Officer of BMR, EVM EV and EVD.
Trustee and their corporate parent,
since Eaton Vance Corp. (EVC), and
1998. corporate trustee, Eaton
Vance, Inc. (EV); Vice
President of EVD. President
or Officer of 179 investment
companies in Eaton Vance Fund
Complex. Mr. Hawkes is an
interested person because of
his position with BMR, EVM
and EVC, which are affiliates
of the Trust.
Disinterested Trustee(s)
Donald R. Dwight (APS Until 2002. President of Dwight Partners, 179 Trustee/Director
DOB: 3/26/31 Trustee) 3 years. Inc. (corporate relations and of the Royce Funds
Trustee Trustee communications company). (Mutual Funds)
since
1998.
Samuel L. Hayes, III (APS Until 2002. Jacob H. Schiff Professor of 179 Director of
DOB: 2/23/35 Trustee) 3 years. Investment Banking Emeritus, Tiffany & Co.
Trustee Trustee Harvard University Graduate (specialty
since School of Business retailer) and
1998. Administration. Director of
Telect, Inc.
(telecommunication
services company)
Norton H. Reamer Trustee Until 2003. President, Unicorn 179 None
DOB: 9/21/35 3 years. Corporation (an investment
Trustee and financial advisory
since services company) (since
1998. September 2000). Chairman,
Hellman, Jordan Management
Co., Inc. (an investment
management company) (since
November 2000). Advisory
Director of Bershire Capital
Corporation (Investment
Banking Firm) (since June
2002). Formerly, Chairman of
the Board, United Asset
Management Corporation (a
holding company owning
institutional investment
management firms) and
Chairman, President and
Director, UAM Funds (mutual
funds).
Lynn A. Stout Trustee Until 2004. Professor of Law, University 173 None
DOB: 9/14/56 3 years. of California at Los Angeles
Trustee School of Law (since July
since 2001). Formerly, Professor of
1999. Law, Georgetown University
Law Center.
Jack L. Treynor Trustee Until 2002. Investment Adviser and 171 None
DOB: 2/21/30 3 years. Consultant.
Trustee
since
1998.
(1) Includes both master and feeder funds in a master feeder structure.
EATON VANCE SENIOR INCOME TRUST AS OF JUNE 30, 2002
MANAGEMENT AND ORGANIZATION CONT'D
Position(s) Term of Office
with and Length of Principal Occupation(s)
Name, Address and Age the Trust Service During Past Five Years
---------------------------------------------------------------------------------------------------------------------------------
Principal Officers who are not Trustees
John P. Redding Vice Since 2001 Vice President of EVM and BMR. Officer of 1 investment company managed
DOB: 3/21/63 President by EVM or BMR.
Scott H. Page Vice Since 1998 Vice President of EVM and BMR. Officer of 11 investment companies
DOB: 11/30/59 President managed by EVM or BMR.
Payson F. Swaffield Vice Since 1998 Vice President of EVM and BMR. Officer of 11 investment companies
DOB: 8/13/56 President managed by EVM or BMR.
Michael W. Weilheimer Vice Since 1998 Vice President of EVM and BMR. Officer of 8 investment companies
DOB: 2/11/61 President managed by EVM or BMR.
Alan R. Dynner Secretary Since 1998 Vice President, Secretary and Chief Legal Officer of BMR, EVM, EVD and
DOB: 10/10/40 EVC. Officer of 179 investment companies managed by EVM or BMR.
James L. O'Connor Treasurer Since 1998 Vice President of BMR, EVM and EVD. Officer of 179 investment companies
DOB: 4/1/45 managed by EVM or BMR.
INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE SENIOR INCOME TRUST
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
CUSTODIAN
INVESTORS BANK & Trust Company
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
PFPC INC.
P.O. Box 43027
Providence, RI 02940-3027
1-800-331-1710
INDEPENDENT AUDITORS
DELOITTE & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
--------------------------------------------------------------------------------
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTON MANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial privacy.
This notice is being sent to comply with privacy regulations of the Securities
and Exchange Commission. Each of the above financial institutions has in effect
the following policy with respect to nonpublic personal information about its
customers:
o Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will be
collected.
o None of such information about you (or former customers) will be disclosed
to anyone, except as permitted by law (which includes disclosure to
employees necessary to service your account).
o Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality of
such information.
For more information about Eaton Vance's privacy policies, call:
1-800-262-1122
--------------------------------------------------------------------------------
EATON VANCE SENIOR INCOME TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
171-8/02 SITSRC