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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22043
Invesco Dynamic Credit Opportunities Fund
(Exact name of registrant as specified in charter)
1555 Peachtree Street, N.E., Atlanta, Georgia 30309
(Address of principal executive offices) (Zip code)
Philip A. Taylor 1555 Peachtree Street, N.E., Atlanta, Georgia 30309
(Name and address of agent for service)
Registrants telephone number, including area code: (404) 439-3217
Date of fiscal year end: 2/28
Date of reporting period: 8/31/14
Item 1. Report to Stockholders.
Letters to Shareholders
Bruce Crockett |
Dear Fellow Shareholders: While the members of the Invesco Funds Board, which I chair, cant dictate the performance of the Invesco funds, be assured that your Board works diligently throughout the year to focus on how your investments are managed. Our job is to represent you and your interests on a variety of fund management-related matters. We regularly monitor how the portfolio management teams of the Invesco funds are performing in light of ever-changing and often unpredictable economic and market conditions, and we review the investment strategies and investment process employed by each funds management team as explained in the funds prospectus. Perhaps our most significant responsibility is conducting the annual review of the funds advisory and sub-advisory contracts with Invesco Advisers and its affiliates. This annual review, which is required by the Investment Company Act of 1940, focuses on the nature and quality of the services Invesco provides as the adviser to the Invesco funds and the reasonableness of the fees that it charges for those services. Each year, we spend months carefully reviewing |
information from Invesco that allows us to evaluate the quality of its services and the reasonableness of its fees. We also use information from a variety of independent sources, including materials provided by the independent senior officer of the Invesco funds, who reports directly to the independent trustees on the Board. Additionally, we meet with legal counsel and review performance and fee data prepared for us by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field.
After a careful review, the members of the Invesco Funds Board approved the continuation of advisory and sub-advisory contracts with Invesco Advisers and its affiliates.
As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have. On behalf of the Board, we look forward to continuing to represent your interests and serving your needs.
Sincerely,
Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees
Philip Taylor |
Dear Shareholders: This semiannual report includes information about your Fund, including performance data and a list of its investments as of the close of the reporting period. I hope you find this report of interest. Our website, invesco.com/us, offers a wide range of market insights and investment perspectives. On the website, youll find detailed information about our funds, including prices, performance, holdings and portfolio manager commentaries. You can access information about your individual Invesco account whenever its convenient for you; just complete a simple, secure online registration. Use the Login box on our home page to get started. Invescos mobile app for iPad® (available free from the App StoreSM) allows you to obtain the same detailed information about your Fund and the same investment insights from our investment leaders, market strategists, economists and retirement experts on the go. Also, you can obtain timely updates to help you stay informed about the markets, the economy and investing by connecting with Invesco on Twitter, LinkedIn or Facebook. You can access our |
blog at blog.invesco.us.com or by visiting the Intentional Investing Forum on our home page.
For questions about your account, feel free to contact an Invesco client services representative at 800 341 2929. For Invesco-related questions or comments, please email me directly at phil@invesco.com.
Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
iPad is a trademark of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Invesco Distributors, Inc. is not affiliated with Apple Inc.
2 Invesco Dynamic Credit Opportunities Fund
Fund Performance
3 Invesco Dynamic Credit Opportunities Fund
Dividend Reinvestment Plan
The dividend reinvestment plan (the Plan) offers you a prompt and simple way to reinvest your dividends and capital gains distributions (Distributions) into additional shares of your Invesco closed-end Fund (the Fund). Under the Plan, the money you earn from Distributions will be reinvested automatically in more shares of the Fund, allowing you to potentially increase your investment over time. All shareholders in the Fund are automatically enrolled in the Plan when shares are purchased.
4 Invesco Dynamic Credit Opportunities Fund
Schedule of Investments
August 31, 2014
(Unaudited)
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Variable Rate Senior Loan Interests114.08%(a)(b) |
||||||||||||||||
Aerospace & Defense2.72% | ||||||||||||||||
Camp International Holding Co., |
||||||||||||||||
First Lien Term Loan |
4.75 | % | 05/31/19 | 1,671 | $ | 1,677,759 | ||||||||||
Second Lien Term Loan |
8.25 | % | 11/30/19 | 165 | 167,078 | |||||||||||
Consolidated Aerospace Manufacturing, LLC, Term Loan (Acquired 02/28/14; Cost $1,168,455) |
5.00 | % | 03/27/20 | 1,174 | 1,173,958 | |||||||||||
DAE Aviation Holdings, Inc., |
||||||||||||||||
Term Loan B-1 |
5.00 | % | 11/02/18 | 2,649 | 2,663,532 | |||||||||||
Term Loan B-2 |
5.00 | % | 11/02/18 | 985 | 990,758 | |||||||||||
DynCorp International Inc., Term Loan |
6.25 | % | 07/07/16 | 459 | 458,533 | |||||||||||
Element Materials Technology Group US Holdings Inc., Term Loan B (Acquired 08/06/14; Cost $844,771) |
5.25 | % | 08/08/21 | 849 | 851,112 | |||||||||||
IAP Worldwide Services, Inc., |
||||||||||||||||
Revolver(c) |
| 07/18/18 | 1,444 | 1,451,625 | ||||||||||||
Second Lien Term Loan |
9.25 | % | 07/18/19 | 1,707 | 1,536,457 | |||||||||||
Landmark U.S. Holdings LLC, |
||||||||||||||||
Canadian Term Loan |
4.75 | % | 10/25/19 | 149 | 148,752 | |||||||||||
First Lien Term Loan |
4.75 | % | 10/25/19 | 3,751 | 3,747,712 | |||||||||||
PRV Aerospace, LLC, Term Loan |
6.50 | % | 05/09/18 | 2,501 | 2,505,221 | |||||||||||
Sequa Corp., Term Loan |
5.25 | % | 06/19/17 | 2,616 | 2,569,044 | |||||||||||
Transdigm, Inc., Term Loan D |
3.75 | % | 06/04/21 | 8,069 | 8,030,520 | |||||||||||
27,972,061 | ||||||||||||||||
Air Transport0.95% | ||||||||||||||||
Delta Air Lines, Inc., |
||||||||||||||||
Revolver Loan(d) |
0.00 | % | 04/20/16 | 7,019 | 6,861,525 | |||||||||||
Revolver Loan(d) |
0.00 | % | 10/18/17 | 1,032 | 1,006,467 | |||||||||||
United Continental Holdings, Inc., Term Loan B-1(c) |
| 09/15/21 | 1,884 | 1,884,399 | ||||||||||||
9,752,391 | ||||||||||||||||
Automotive6.26% | ||||||||||||||||
Affinia Group Inc., Term Loan B-2 |
4.75 | % | 04/25/20 | 776 | 780,837 | |||||||||||
American Tire Distributors, Inc., Term Loan |
5.75 | % | 06/01/18 | 3,092 | 3,103,255 | |||||||||||
August U.S. Holding Co., Inc., |
||||||||||||||||
First Lien Term Loan B-2 (Acquired 07/09/12-06/06/14; Cost $492,116) |
5.00 | % | 04/27/18 | 490 | 494,432 | |||||||||||
First Lien Term Loan B-2 (Acquired 07/09/12-06/06/14; Cost $890,546) |
5.00 | % | 04/27/18 | 890 | 897,368 | |||||||||||
Autoparts Holdings Ltd., First Lien Term Loan |
6.50 | % | 07/29/17 | 3,171 | 3,178,789 | |||||||||||
BBB Industries, LLC, Term Loan |
5.50 | % | 03/27/19 | 2,694 | 2,699,694 | |||||||||||
BCA Remarketing Group Ltd. (United Kingdom), Term Loan C-3 |
5.80 | % | 02/29/20 | GBP | 3,917 | 6,483,985 | ||||||||||
Dexter Axle Co., Term Loan |
4.50 | % | 02/28/20 | 1,876 | 1,863,492 | |||||||||||
Federal-Mogul Corp., Term Loan C |
4.75 | % | 04/15/21 | 19,855 | 19,843,900 | |||||||||||
Gates Global, LLC, Term Loan |
4.25 | % | 07/05/21 | 6,080 | 6,045,384 | |||||||||||
Henniges Automotive Holdings, Inc., Term Loan |
6.00 | % | 06/12/21 | 1,290 | 1,306,225 | |||||||||||
Key Safety Systems, Inc., Term Loan(c) |
| 08/29/21 | 1,741 | 1,748,527 | ||||||||||||
Metaldyne, LLC, Term Loan |
4.75 | % | 12/18/18 | EUR | 4,104 | 5,419,633 | ||||||||||
RAC Finance (Holdings) Ltd. (United Kingdom), Term Loan D |
5.30 | % | 10/29/19 | GBP | 500 | 831,565 | ||||||||||
TI Group Automotive Systems, L.L.C., Term Loan |
4.25 | % | 07/02/21 | 5,289 | 5,288,730 | |||||||||||
Transtar Holding Co., |
||||||||||||||||
First Lien Term Loan |
5.75 | % | 10/09/18 | 3,463 | 3,463,306 | |||||||||||
Second Lien Term Loan |
10.00 | % | 10/09/19 | 1,010 | 984,694 | |||||||||||
64,433,816 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Beverage and Tobacco0.77% | ||||||||||||||||
Adria Group Holding B.V. (Netherlands), Term Loan |
9.50 | % | 05/20/18 | EUR | 3,400 | $ | 4,491,867 | |||||||||
DS Services of America, Inc., Term Loan B |
5.25 | % | 08/30/20 | 1,511 | 1,520,884 | |||||||||||
Winebow Group, Inc. (The), |
||||||||||||||||
First Lien Term Loan |
4.75 | % | 07/01/21 | 1,031 | 1,032,315 | |||||||||||
Second Lien Term Loan (Acquired 06/27/14; Cost $820,548) |
8.50 | % | 12/31/21 | 827 | 828,688 | |||||||||||
7,873,754 | ||||||||||||||||
Building & Development1.05% | ||||||||||||||||
Braas Monier Building Group S.A. (Germany), Term Loan B |
4.70 | % | 10/15/20 | EUR | 476 | 629,219 | ||||||||||
Capital Automotive L.P., Second Lien Term Loan |
6.00 | % | 04/30/20 | 2,544 | 2,582,663 | |||||||||||
Lake at Las Vegas Joint Venture, LLC, |
||||||||||||||||
Exit Revolver Loan (Acquired 07/16/12; Cost $40,531)(d) |
0.00 | % | 02/28/17 | 41 | 12,261 | |||||||||||
PIK Exit Revolver Loan (Acquired 07/15/10-06/30/14; Cost $664,706)(e) |
5.00 | % | 02/28/17 | 665 | 201,073 | |||||||||||
Norrmalm 3 AB (Sweden), Term Loan B-1 |
4.21 | % | 05/31/21 | EUR | 333 | 440,539 | ||||||||||
Quikrete Holdings, Inc., Second Lien Term Loan |
7.00 | % | 03/26/21 | 1,011 | 1,026,024 | |||||||||||
Re/Max International, Inc., Term Loan |
4.00 | % | 07/31/20 | 1,372 | 1,371,187 | |||||||||||
Realogy Corp., Extended Revolver(c) |
| 03/05/18 | 3,280 | 2,951,624 | ||||||||||||
Tamarack Resort LLC, |
||||||||||||||||
PIK Term Loan A (Acquired 03/07/14; Cost $34,024)(e) |
8.00 | % | 03/07/16 | 34 | 34,000 | |||||||||||
PIK Term Loan B (Acquired 03/07/14-06/30/14; Cost $5,230)(c)(e) |
| 02/28/19 | 257 | 0 | ||||||||||||
WireCo WorldGroup Inc., Term Loan |
6.00 | % | 02/15/17 | 1,575 | 1,581,282 | |||||||||||
10,829,872 | ||||||||||||||||
Business Equipment & Services14.34% | ||||||||||||||||
Accelya International S.A. (Luxembourg), |
||||||||||||||||
Term Loan A-1 (Acquired 03/06/14; Cost $1,517,359) |
5.08 | % | 03/06/20 | 1,524 | 1,514,814 | |||||||||||
Term Loan A-2 (Acquired 03/06/14; Cost $524,410) |
5.08 | % | 03/06/20 | 527 | 523,534 | |||||||||||
Acosta Holdco, Inc., Term Loan(c) |
| 08/15/21 | 4,436 | 4,464,801 | ||||||||||||
Asurion LLC, |
||||||||||||||||
Incremental Term Loan B-1 |
5.00 | % | 05/24/19 | 4,368 | 4,388,825 | |||||||||||
Incremental Term Loan B-2 |
4.25 | % | 07/08/20 | 14,754 | 14,738,257 | |||||||||||
Second Lien Term Loan |
8.50 | % | 03/03/21 | 19,670 | 20,362,932 | |||||||||||
Brickman Group Ltd. LLC, |
||||||||||||||||
First Lien Term Loan |
4.00 | % | 12/18/20 | 1,831 | 1,804,286 | |||||||||||
Second Lien Term Loan |
7.50 | % | 12/17/21 | 708 | 712,186 | |||||||||||
Brock Holdings III, Inc., First Lien Term Loan |
6.00 | % | 03/16/17 | 221 | 221,766 | |||||||||||
Caraustar Industries, Inc., Term Loan |
7.50 | % | 05/01/19 | 1,783 | 1,802,242 | |||||||||||
Checkout Holding Corp., |
||||||||||||||||
Second Lien Term Loan |
7.75 | % | 04/11/22 | 2,223 | 2,197,387 | |||||||||||
Term Loan B |
4.50 | % | 04/09/21 | 3,749 | 3,696,393 | |||||||||||
Connolly, LLC, |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 05/14/21 | 3,543 | 3,569,455 | |||||||||||
Second Lien Term Loan |
8.00 | % | 05/14/22 | 2,206 | 2,225,127 | |||||||||||
Crossmark Holdings, Inc., |
||||||||||||||||
First Lien Term Loan |
4.50 | % | 12/20/19 | 2,404 | 2,386,699 | |||||||||||
Second Lien Term Loan |
8.75 | % | 12/21/20 | 677 | 673,537 | |||||||||||
Dream Secured BondCo AB (Sweden), |
||||||||||||||||
PIK Mezzanine Loan(e) |
6.75 | % | 08/15/19 | EUR | 7,593 | 10,550,104 | ||||||||||
Revolver Loan (Acquired 05/22/14; Cost $4,229,769)(d) |
0.00 | % | 08/14/17 | EUR | 3,097 | 3,988,395 | ||||||||||
Revolver Loan (Acquired 06/04/14; Cost $1,060,386) |
2.18 | % | 08/14/17 | EUR | 903 | 1,162,289 | ||||||||||
Expert Global Solutions, Inc., First Lien Term Loan B |
8.50 | % | 04/03/18 | 5,762 | 5,773,534 | |||||||||||
First Data Corp., |
||||||||||||||||
Term Loan |
3.66 | % | 03/23/18 | 21,893 | 21,715,405 | |||||||||||
Term Loan |
3.66 | % | 09/24/18 | 2,724 | 2,705,281 | |||||||||||
Term Loan |
4.16 | % | 03/24/21 | 918 | 917,476 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Business Equipment & Services(continued) | ||||||||||||||||
Genesys Telecom Holdings, U.S., Inc., |
||||||||||||||||
Euro Term Loan |
4.75 | % | 02/08/20 | EUR | 3,456 | $ | 4,564,046 | |||||||||
Term Loan |
4.50 | % | 11/13/20 | 469 | 469,796 | |||||||||||
Hillman Group Inc. (The), Term Loan B |
4.50 | % | 06/30/21 | 1,259 | 1,261,656 | |||||||||||
Information Resources, Inc., Term Loan B |
4.75 | % | 09/30/20 | 2,332 | 2,336,696 | |||||||||||
Inmar, Inc., |
||||||||||||||||
Term Loan |
4.25 | % | 01/27/21 | 1,494 | 1,475,051 | |||||||||||
Second Lien Term Loan |
8.00 | % | 01/27/22 | 186 | 184,884 | |||||||||||
Karman Buyer Corp., |
||||||||||||||||
Delayed Draw Term Loan(c) |
| 07/25/21 | 168 | 166,487 | ||||||||||||
Second Lien Term Loan |
7.50 | % | 07/25/22 | 2,464 | 2,475,315 | |||||||||||
Term Loan |
4.25 | % | 07/25/21 | 5,035 | 4,994,595 | |||||||||||
Kronos Inc., |
||||||||||||||||
First Lien Incremental Term Loan |
4.50 | % | 10/30/19 | 3,591 | 3,600,700 | |||||||||||
Second Lien Term Loan |
9.75 | % | 04/30/20 | 1,237 | 1,278,482 | |||||||||||
Learning Care Group (US) No. 2 Inc., Term Loan |
5.50 | % | 05/05/21 | 1,500 | 1,505,888 | |||||||||||
ServiceMaster Co., Term Loan B |
4.25 | % | 07/01/21 | 3,651 | 3,629,305 | |||||||||||
SourceHOV LLC, |
||||||||||||||||
First Lien Term Loan B |
5.25 | % | 04/30/18 | 2,755 | 2,771,813 | |||||||||||
Second Lien Term Loan |
8.75 | % | 04/30/19 | 288 | 289,799 | |||||||||||
SunGard Data Systems Inc., Term Loan C |
3.91 | % | 02/28/17 | 169 | 169,210 | |||||||||||
TNS Inc., |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 02/14/20 | 2,063 | 2,068,245 | |||||||||||
Second Lien Term Loan (Acquired 02/14/13-02/24/14; Cost $204,566) |
9.00 | % | 08/14/20 | 206 | 205,843 | |||||||||||
TransUnion, LLC, Revolver(c) |
| 04/09/19 | 1,067 | 1,056,040 | ||||||||||||
Wash MultiFamily Laundry Systems, LLC, Term Loan |
4.50 | % | 02/21/19 | 1,087 | 1,086,289 | |||||||||||
147,684,865 | ||||||||||||||||
Cable & Satellite Television2.36% | ||||||||||||||||
CDS Holdco III B.V. (Luxembourg), Term Loan B |
4.82 | % | 09/30/20 | EUR | 4,917 | 6,473,368 | ||||||||||
Charter Communications Operating, LLC, Term Loan G(c) |
| 09/12/21 | 7,088 | 7,142,936 | ||||||||||||
ION Media Networks, Inc., Term Loan |
5.00 | % | 12/18/20 | 6,367 | 6,402,750 | |||||||||||
MCC Iowa LLC, Term Loan J |
3.75 | % | 06/30/21 | 168 | 167,576 | |||||||||||
Mediacom Illinois, LLC, |
||||||||||||||||
Term Loan E |
3.13 | % | 10/23/17 | 473 | 471,780 | |||||||||||
Term Loan G |
3.75 | % | 06/30/21 | 1,632 | 1,622,227 | |||||||||||
Seema S.a r.l. (Norway), Term Loan F |
4.71 | % | 12/31/18 | EUR | 1,500 | 1,976,779 | ||||||||||
24,257,416 | ||||||||||||||||
Chemicals & Plastics6.07% | ||||||||||||||||
Allnex & Cy S.C.A., |
||||||||||||||||
Second Lien Term Loan |
8.25 | % | 04/03/20 | 55 | 56,127 | |||||||||||
Term Loan B-1 |
4.50 | % | 10/03/19 | 1,079 | 1,080,896 | |||||||||||
Term Loan B-2 |
4.50 | % | 10/03/19 | 560 | 560,825 | |||||||||||
Term Loan B-3 |
4.75 | % | 10/04/19 | EUR | 1,534 | 2,033,751 | ||||||||||
Arysta LifeScience SPC, LLC, |
||||||||||||||||
First Lien Term Loan |
4.50 | % | 05/29/20 | 7,082 | 7,085,915 | |||||||||||
Second Lien Term Loan |
8.25 | % | 11/30/20 | 918 | 929,549 | |||||||||||
Ascend Performance Materials Operations LLC, Term Loan B |
6.75 | % | 04/10/18 | 4,920 | 4,864,657 | |||||||||||
Azelis S.A. (Luxembourg), |
||||||||||||||||
Term Loan E-1 |
5.94 | % | 05/13/16 | EUR | 1,000 | 1,305,738 | ||||||||||
Term Loan F-1 |
6.19 | % | 06/01/16 | EUR | 1,000 | 1,305,738 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Chemicals & Plastics(continued) | ||||||||||||||||
Chromaflo Technologies Corp., |
||||||||||||||||
First Lien Term Loan B |
4.50 | % | 12/02/19 | 1,387 | $ | 1,384,273 | ||||||||||
Second Lien Term Loan |
8.25 | % | 06/02/20 | 520 | 520,389 | |||||||||||
Colouroz Investment LLC (Germany), |
||||||||||||||||
Mezzanine A-4 |
7.23 | % | 12/31/16 | 2,473 | 2,473,126 | |||||||||||
Mezzanine A-4 |
7.19 | % | 12/31/18 | EUR | 2,942 | 3,866,196 | ||||||||||
Second Lien Term Loan(c) |
| 09/05/22 | EUR | 6,205 | 8,171,311 | |||||||||||
Term Loan(c) |
| 09/05/21 | EUR | 1,500 | 1,976,749 | |||||||||||
Term Loan B-2(c) |
| 09/05/21 | 3,539 | 3,540,467 | ||||||||||||
Term Loan C(c) |
| 09/05/21 | 585 | 585,281 | ||||||||||||
Ferro Corp., Term Loan (Acquired 06/30/14; Cost $764,267) |
4.00 | % | 07/31/21 | 768 | 768,096 | |||||||||||
Kronos Worldwide Inc., Term Loan |
4.75 | % | 02/18/20 | 1,081 | 1,085,879 | |||||||||||
MacDermid, Inc., |
||||||||||||||||
First Lien Term Loan B(c) |
| 06/07/20 | 528 | 526,480 | ||||||||||||
Term Loan B(c) |
| 06/07/20 | EUR | 3,000 | 3,936,923 | |||||||||||
Momentive Performance Materials USA Inc., DIP Term Loan |
4.00 | % | 04/15/15 | 501 | 500,818 | |||||||||||
Otter Products, LLC, Term Loan B |
5.75 | % | 06/03/20 | 3,793 | 3,779,039 | |||||||||||
Oxea Finance LLC, Second Lien Term Loan |
8.25 | % | 07/15/20 | 3,952 | 3,979,679 | |||||||||||
Phillips-Medisize Corp., |
||||||||||||||||
Second Lien Term Loan |
8.25 | % | 06/16/22 | 416 | 417,460 | |||||||||||
Term Loan |
4.75 | % | 06/16/21 | 862 | 862,212 | |||||||||||
Tata Chemicals North America Inc., Term Loan |
3.75 | % | 08/07/20 | 1,048 | 1,040,379 | |||||||||||
Univar Inc., Term Loan B |
5.00 | % | 06/30/17 | 1,584 | 1,588,347 | |||||||||||
WNA Holdings, Inc., |
||||||||||||||||
Second Lien Term Loan |
8.50 | % | 12/07/20 | 568 | 568,514 | |||||||||||
Term Loan |
4.50 | % | 06/07/20 | 952 | 951,114 | |||||||||||
Term Loan |
4.50 | % | 06/07/20 | 753 | 751,890 | |||||||||||
62,497,818 | ||||||||||||||||
Clothing & Textiles0.27% | ||||||||||||||||
ABG Intermediate Holdings 2 LLC, |
||||||||||||||||
First Lien Term Loan (Acquired 05/22/14; Cost $1,873,642) |
5.50 | % | 05/27/21 | 1,892 | 1,894,246 | |||||||||||
Second Lien Term Loan (Acquired 05/22/14; Cost $892,016) |
9.00 | % | 05/27/22 | 901 | 899,672 | |||||||||||
2,793,918 | ||||||||||||||||
Conglomerates0.54% | ||||||||||||||||
Epiq Systems, Inc., Term Loan |
4.25 | % | 08/27/20 | 2,578 | 2,581,558 | |||||||||||
Polymer Group, Inc., |
||||||||||||||||
Delayed Draw Incremental Term Loan(c) |
| 12/19/19 | 225 | 225,070 | ||||||||||||
Term Loan |
5.25 | % | 12/19/19 | 2,734 | 2,753,290 | |||||||||||
5,559,918 | ||||||||||||||||
Containers & Glass Products3.38% | ||||||||||||||||
Aenova Holding GmbH (Germany), Term Loan C |
5.00 | % | 09/27/19 | EUR | 6,000 | 7,900,137 | ||||||||||
Berlin Packaging, LLC, |
||||||||||||||||
First Lien Term Loan |
4.75 | % | 04/02/19 | 2,354 | 2,358,866 | |||||||||||
Second Lien Term Loan |
8.75 | % | 04/02/20 | 865 | 882,328 | |||||||||||
BWAY Holding Company, Inc., Term Loan B(c) |
| 08/14/20 | 5,220 | 5,256,797 | ||||||||||||
Consolidated Container Co. LLC, Term Loan |
5.00 | % | 07/03/19 | 1,210 | 1,212,435 | |||||||||||
Devix US, Inc., Second Lien Term Loan |
8.00 | % | 05/02/22 | 700 | 702,826 | |||||||||||
Exopack Holdings S.A., Term Loan |
5.75 | % | 05/08/19 | EUR | 6,972 | 9,234,005 | ||||||||||
Hoffmaster Group, Inc., |
||||||||||||||||
First Lien Term Loan |
5.25 | % | 05/09/20 | 2,087 | 2,087,835 | |||||||||||
Second Lien Term Loan |
10.00 | % | 05/09/21 | 441 | 443,371 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
8 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Containers & Glass Products(continued) | ||||||||||||||||
IBC Capital Ltd., |
||||||||||||||||
Second Lien Term Loan(c) |
| 01/01/22 | 798 | $ | 799,834 | |||||||||||
Term Loan(c) |
| 01/01/21 | 2,842 | 2,839,768 | ||||||||||||
Libbey Glass, Inc., Term Loan |
3.75 | % | 04/09/21 | 13 | 12,823 | |||||||||||
Ranpak Corp., |
||||||||||||||||
First Lien Term Loan |
4.50 | % | 04/23/19 | 499 | 498,759 | |||||||||||
Second Lien Term Loan |
8.50 | % | 04/23/20 | 589 | 600,305 | |||||||||||
34,830,089 | ||||||||||||||||
Cosmetics & Toiletries0.57% | ||||||||||||||||
Marietta Intermediate Holding Corp., First Lien Term Loan B |
7.00 | % | 02/19/15 | 1,215 | 1,208,836 | |||||||||||
Prestige Brands, Inc., Term Loan B-2(c) |
| 09/03/21 | 2,738 | 2,757,312 | ||||||||||||
Vogue International Inc., Term Loan B |
5.25 | % | 02/14/20 | 1,897 | 1,903,894 | |||||||||||
5,870,042 | ||||||||||||||||
Drugs1.93% | ||||||||||||||||
BPA Laboratories, |
||||||||||||||||
First Lien Term Loan |
2.73 | % | 07/03/17 | 1,605 | 1,460,168 | |||||||||||
Second Lien Term Loan |
2.73 | % | 07/03/17 | 1,395 | 1,151,026 | |||||||||||
Catalent Pharma Solutions, Inc., Term Loan |
4.50 | % | 05/20/21 | 2,638 | 2,647,119 | |||||||||||
LGC Science Holdings Ltd. (United Kingdom), Term Loan |
4.07 | % | 03/26/21 | EUR | 2,500 | 3,283,856 | ||||||||||
Millennium Laboratories, Inc., Term Loan B |
5.25 | % | 04/16/21 | 11,323 | 11,361,534 | |||||||||||
19,903,703 | ||||||||||||||||
Electronics & Electrical5.91% | ||||||||||||||||
4L Technologies Inc., Term Loan |
5.50 | % | 05/08/20 | 6,031 | 6,053,906 | |||||||||||
Blackboard Inc., Term Loan B-3(c) |
| 10/04/18 | 2,000 | 2,002,320 | ||||||||||||
BMC Software Finance, Inc., Term Loan |
5.00 | % | 09/10/20 | 642 | 640,662 | |||||||||||
DEI Sales, Inc., Term Loan |
5.75 | % | 07/13/17 | 1,508 | 1,454,302 | |||||||||||
Deltek, Inc., First Lien Term Loan |
4.50 | % | 10/10/18 | 3,631 | 3,630,056 | |||||||||||
Fidji Luxembourg BC4 S.a r.l. (Luxembourg), Term Loan |
6.25 | % | 12/24/20 | 2,198 | 2,213,788 | |||||||||||
Freescale Semiconductor, Inc., Term Loan B-4 |
4.25 | % | 02/28/20 | 3,969 | 3,961,101 | |||||||||||
Mirion Technologies, Inc., Term Loan |
5.75 | % | 03/30/18 | 3,060 | 3,068,003 | |||||||||||
MSC.Software Corp., |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 05/29/20 | 910 | 910,379 | |||||||||||
Second Lien Term Loan |
8.50 | % | 05/29/21 | 450 | 450,962 | |||||||||||
Oberthur Technologies of America Corp., |
||||||||||||||||
Term Loan B-1 |
4.75 | % | 10/18/19 | EUR | 3,483 | 4,599,785 | ||||||||||
Term Loan B-2 |
4.50 | % | 10/18/19 | 1,004 | 1,006,970 | |||||||||||
Omnitracs, Inc., Term Loan |
4.75 | % | 11/25/20 | 1,243 | 1,245,451 | |||||||||||
Peak 10, Inc., |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 06/17/21 | 702 | 706,178 | |||||||||||
Second Lien Term Loan (Acquired 06/10/14; Cost $412,361) |
8.25 | % | 06/17/22 | 416 | 418,501 | |||||||||||
RP Crown Parent, LLC, |
||||||||||||||||
First Lien Term Loan |
6.00 | % | 12/21/18 | 8,275 | 8,168,491 | |||||||||||
Second Lien Term Loan |
11.25 | % | 12/21/19 | 707 | 682,524 | |||||||||||
Ship Luxco 3 S.a r.l. (Luxembourg), Term Loan C-1 |
5.75 | % | 11/29/19 | GBP | 6,500 | 10,883,727 | ||||||||||
SkillSoft Corp., |
||||||||||||||||
Second Lien Term Loan |
7.75 | % | 04/28/22 | 1,499 | 1,471,368 | |||||||||||
Term Loan |
4.50 | % | 04/28/21 | 4,974 | 4,899,216 | |||||||||||
Sybil Software LLC, Term Loan |
4.75 | % | 03/20/20 | 2,428 | 2,434,242 | |||||||||||
60,901,932 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
9 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Financial Intermediaries4.28% | ||||||||||||||||
Intertrust Group Holding B.V. (Netherlands), |
||||||||||||||||
Second Lien Term Loan 1 |
8.00 | % | 04/16/22 | EUR | 6,000 | $ | 7,952,682 | |||||||||
Second Lien Term Loan 2 |
8.00 | % | 04/16/22 | 1,780 | 1,783,380 | |||||||||||
Term Loan B-5 |
4.48 | % | 04/16/21 | 1,229 | 1,228,109 | |||||||||||
iPayment Inc., Term Loan |
6.75 | % | 05/08/17 | 1,612 | 1,601,150 | |||||||||||
MoneyGram International, Inc., Term Loan |
4.25 | % | 03/27/20 | 4,335 | 4,274,972 | |||||||||||
Nuveen Investments, Inc., First Lien Term Loan B |
4.16 | % | 05/13/17 | 15,799 | 15,790,241 | |||||||||||
RJO Holdings Corp., |
||||||||||||||||
Term Loan |
6.91 | % | 12/10/15 | 3,380 | 3,287,504 | |||||||||||
Term Loan |
11.00 | % | 12/10/15 | 74 | 72,606 | |||||||||||
SAM Finance Lux S.a r.l., (Luxembourg) |
||||||||||||||||
Term Loan |
4.25 | % | 12/17/20 | 2,891 | 2,896,009 | |||||||||||
Term Loan |
5.00 | % | 12/17/20 | GBP | 1,031 | 1,712,912 | ||||||||||
TMFS Holdings,LLC, Term Loan |
5.50 | % | 07/30/21 | 460 | 461,147 | |||||||||||
Transfirst Holdings, Inc., |
||||||||||||||||
First Lien Term Loan B-2 |
4.25 | % | 12/27/17 | 790 | 789,051 | |||||||||||
Second Lien Term Loan B-1 |
8.00 | % | 06/27/18 | 2,257 | 2,268,083 | |||||||||||
44,117,846 | ||||||||||||||||
Food & Drug Retailers3.13% | ||||||||||||||||
AB Acquisitions UK Topco 2 Ltd., (United Kingdom) |
||||||||||||||||
Term Loan D-2 |
4.80 | % | 07/09/18 | EUR | 1,842 | 2,429,453 | ||||||||||
Term Loan D-2 |
5.23 | % | 07/09/18 | GBP | 5,300 | 8,834,213 | ||||||||||
Albertsons Holdings LLC, Term Loan B-4(c) |
| 08/25/21 | 8,185 | 8,217,742 | ||||||||||||
Pret A Manger (United Kingdom), Term Loan B |
5.50 | % | 06/19/20 | GBP | 6,750 | 11,178,001 | ||||||||||
Rite Aid Corp., Second Lien Term Loan |
5.75 | % | 08/21/20 | 1,590 | 1,612,146 | |||||||||||
32,271,555 | ||||||||||||||||
Food Products5.15% | ||||||||||||||||
AdvancePierre Foods, Inc., |
||||||||||||||||
First Lien Term Loan |
5.75 | % | 07/10/17 | 6,779 | 6,819,396 | |||||||||||
Second Lien Term Loan |
9.50 | % | 10/10/17 | 671 | 657,064 | |||||||||||
Birds Eye Iglo Group Ltd. (United Kingdom), Term Loan B-2 |
5.25 | % | 06/30/20 | GBP | 1,000 | 1,661,968 | ||||||||||
Candy Intermediate Holdings, Inc., Term Loan |
7.50 | % | 06/18/18 | 2,765 | 2,706,681 | |||||||||||
CSM Bakery Solutions LLC, |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 07/03/20 | 5,310 | 5,298,868 | |||||||||||
Second Lien Term Loan(c) |
| 07/03/21 | 1,679 | 1,657,747 | ||||||||||||
Del Monte Foods, Inc., |
||||||||||||||||
First Lien Term Loan |
4.26 | % | 02/18/21 | 2,167 | 2,147,801 | |||||||||||
Second Lien Term Loan |
8.25 | % | 08/18/21 | 2,242 | 2,158,320 | |||||||||||
Diamond Foods, Inc., Term Loan |
4.25 | % | 08/20/18 | 770 | 767,108 | |||||||||||
Dole Food Co., Inc., Term Loan B |
4.50 | % | 11/01/18 | 4,454 | 4,448,304 | |||||||||||
Frontier Midco Ltd. (United Kingdom), Term Loan B |
5.63 | % | 11/27/20 | GBP | 1,250 | 2,077,782 | ||||||||||
H.J. Heinz Co., Revolver Loan(d) |
0.00 | % | 06/07/18 | 6,837 | 6,780,311 | |||||||||||
Hearthside Group Holdings, LLC, Revolver(c) |
| 06/02/19 | 1,478 | 1,470,348 | ||||||||||||
New HB Acquisition, LLC, Term Loan B |
6.75 | % | 04/09/20 | 1,340 | 1,381,314 | |||||||||||
Oak Tea, Inc., |
||||||||||||||||
Term Loan B(c) |
| 07/23/21 | EUR | 4,000 | 5,179,302 | |||||||||||
Term Loan B(c) |
| 07/23/21 | 4,844 | 4,753,229 | ||||||||||||
Shearers Foods, Inc., |
||||||||||||||||
First Lien Term Loan |
4.50 | % | 06/30/21 | 573 | 573,558 | |||||||||||
Second Lien Term Loan |
7.75 | % | 06/30/22 | 241 | 240,565 | |||||||||||
United Biscuits Holdco Ltd. (United Kingdom), Term Loan B |
5.00 | % | 07/29/20 | GBP | 1,350 | 2,250,123 | ||||||||||
53,029,789 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
10 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Food Service2.33% | ||||||||||||||||
ARG IH Corp., Term Loan |
5.00 | % | 11/15/20 | 880 | $ | 883,378 | ||||||||||
Portillos Holdings, LLC, |
||||||||||||||||
First Lien Term Loan B(c) |
| 08/02/21 | 1,390 | 1,389,736 | ||||||||||||
Second Lien Term Loan(c) |
| 08/01/22 | 319 | 319,889 | ||||||||||||
Red Lobster Management LLC, Term Loan B |
6.25 | % | 07/28/21 | 1,910 | 1,922,123 | |||||||||||
Restaurant Holding Co., LLC, First Lien Term Loan |
8.75 | % | 02/28/19 | 1,653 | 1,521,051 | |||||||||||
Seminole Hard Rock Entertainment, Inc., Term Loan |
3.50 | % | 05/14/20 | 946 | 935,352 | |||||||||||
Steak N Shake Operations, Inc., Term Loan |
4.75 | % | 03/19/21 | 1,397 | 1,399,897 | |||||||||||
US Foods, Inc., Incremental Term Loan |
4.50 | % | 03/31/19 | 9,368 | 9,365,776 | |||||||||||
Weight Watchers International, Inc., Term Loan B-2 |
4.00 | % | 04/02/20 | 7,960 | 6,288,830 | |||||||||||
24,026,032 | ||||||||||||||||
Forest Products0.43% | ||||||||||||||||
NewPage Corp., Term Loan B |
9.50 | % | 02/11/21 | 2,605 | 2,626,974 | |||||||||||
Xerium Technologies, Inc., Term Loan |
5.75 | % | 05/17/19 | 1,800 | 1,813,314 | |||||||||||
4,440,288 | ||||||||||||||||
Health Care6.60% | ||||||||||||||||
Accellent Inc., |
||||||||||||||||
Second Lien Term Loan |
7.50 | % | 03/12/22 | 1,191 | 1,167,612 | |||||||||||
Term Loan |
4.50 | % | 03/12/21 | 3,842 | 3,807,029 | |||||||||||
ATI Holdings, Inc., Term Loan |
5.00 | % | 12/20/19 | 1,048 | 1,052,862 | |||||||||||
Biomet, Inc., Term Loan B-2 |
3.66 | % | 07/25/17 | 2,000 | 1,999,380 | |||||||||||
Diaverum Holding S.a r.l. (Sweden), Term Loan C |
4.10 | % | 03/10/21 | EUR | 742 | 980,132 | ||||||||||
DJO Finance LLC, Term Loan B |
4.25 | % | 09/15/17 | 3,471 | 3,475,199 | |||||||||||
Drumm Investors LLC, Term Loan |
6.75 | % | 05/04/18 | 783 | 788,088 | |||||||||||
HC Investments (Luxembourg), Second Lien Term Loan(c) |
| 08/07/22 | EUR | 2,250 | 2,936,077 | |||||||||||
Indigo Cleanco Ltd. (United Kingdom), Term Loan B |
5.73 | % | 07/08/21 | GBP | 3,810 | 6,237,423 | ||||||||||
Kindred Healthcare, Inc., Term Loan |
4.00 | % | 04/09/21 | 261 | 259,129 | |||||||||||
Knowledge Universe Education LLC, Term Loan |
5.25 | % | 03/18/21 | 1,310 | 1,326,107 | |||||||||||
Ortho-Clinical Diagnostics, Inc., Term Loan |
4.75 | % | 06/30/21 | 4,479 | 4,487,356 | |||||||||||
Surgery Center Holdings, Inc., |
||||||||||||||||
Second Lien Term Loan(c) |
| 01/01/21 | 2,399 | 2,378,404 | ||||||||||||
Term Loan(c) |
| 01/01/20 | 1,741 | 1,742,876 | ||||||||||||
Surgical Care Affiliates, LLC, |
||||||||||||||||
Revolver Loan(d) |
0.00 | % | 06/30/16 | 6,250 | 6,206,563 | |||||||||||
Term Loan B |
4.23 | % | 12/29/17 | 3,433 | 3,437,613 | |||||||||||
TriZetto Group, Inc., |
||||||||||||||||
Second Lien Term Loan |
8.50 | % | 03/28/19 | 2,510 | 2,541,582 | |||||||||||
Term Loan |
4.75 | % | 05/02/18 | 3,840 | 3,850,680 | |||||||||||
Tunstall Group Finance Ltd. (United Kingdom), |
||||||||||||||||
Acquisition Loan(d) |
0.00 | % | 10/18/19 | GBP | 4,000 | 4,486,623 | ||||||||||
Term Loan B |
4.81 | % | 10/16/20 | EUR | 1,000 | 879,525 | ||||||||||
Vitalia Holdco S.a r.l. (Switzerland), |
||||||||||||||||
Acquisition Facility Loan (Acquired 01/09/14-04/29/14; Cost $3,879,033) |
4.57 | % | 07/25/17 | EUR | 3,000 | 3,931,995 | ||||||||||
Revolver Loan(d) |
0.00 | % | 07/25/17 | EUR | 2,000 | 2,612,973 | ||||||||||
Second Lien Term Loan |
9.57 | % | 01/28/19 | EUR | 3,576 | 4,734,113 | ||||||||||
Western Dental Services, Inc., Term Loan |
6.00 | % | 11/01/18 | 2,669 | 2,681,620 | |||||||||||
68,000,961 | ||||||||||||||||
Home Furnishings1.04% | ||||||||||||||||
Hilding Anders AB (Sweden), |
||||||||||||||||
Jr. Term Loan(c) |
| 06/30/21 | EUR | 730 | 71,972 | |||||||||||
Second Lien Term Loan |
5.71 | % | 06/30/18 | EUR | 7,250 | 9,105,368 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
11 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Home Furnishings(continued) | ||||||||||||||||
Mattress Holdings Corp., Term Loan B-2 |
3.66 | % | 01/18/16 | 522 | $ | 521,245 | ||||||||||
Serta Simmons Holdings, LLC, Term Loan(c) |
| 10/01/19 | 1,000 | 1,001,090 | ||||||||||||
10,699,675 | ||||||||||||||||
Industrial Equipment2.68% | ||||||||||||||||
Alliance Laundry Systems LLC, |
||||||||||||||||
First Lien Term Loan |
4.25 | % | 12/10/18 | 397 | 398,430 | |||||||||||
Second Lien Term Loan |
9.50 | % | 12/10/19 | 629 | 635,910 | |||||||||||
Capital Safety North America Holdings Inc., First Lien Term Loan |
3.75 | % | 03/29/21 | 3,000 | 2,980,635 | |||||||||||
Carros US LLC, Term Loan(c) |
| 06/18/21 | 442 | 441,583 | ||||||||||||
Crosby US Acquisition Corp., Second Lien Term Loan |
7.00 | % | 11/22/21 | 862 | 869,547 | |||||||||||
Doosan Infracore International, Inc., Term Loan B |
4.50 | % | 05/28/21 | 3,919 | 3,933,510 | |||||||||||
Filtration Group Corp., |
||||||||||||||||
First Lien Term Loan |
4.50 | % | 11/20/20 | 1,040 | 1,044,316 | |||||||||||
Second Lien Term Loan |
8.25 | % | 11/22/21 | 524 | 530,433 | |||||||||||
Gardner Denver, Inc., Term Loan |
4.75 | % | 07/30/20 | EUR | 4,410 | 5,825,032 | ||||||||||
Grede Holdings LLC, Term Loan |
4.75 | % | 06/02/21 | 3,035 | 3,036,872 | |||||||||||
Husky Injection Molding Systems Ltd. (Canada), Second Lien Term Loan |
7.25 | % | 06/30/22 | 412 | 414,519 | |||||||||||
North American Lifting Holdings, Inc., First Lien Term Loan |
5.50 | % | 11/27/20 | 2,000 | 2,016,169 | |||||||||||
Penn Engineering & Manufacturing Corp., Term Loan B(c) |
| 08/29/21 | 838 | 839,689 | ||||||||||||
Unifrax Holding Co., |
||||||||||||||||
Term Loan |
4.25 | % | 11/28/18 | 213 | 213,061 | |||||||||||
Term Loan |
5.25 | % | 11/28/18 | EUR | 2,477 | 3,277,892 | ||||||||||
Virtuoso US LLC, Term Loan |
4.75 | % | 02/11/21 | 1,180 | 1,182,750 | |||||||||||
27,640,348 | ||||||||||||||||
Insurance0.34% | ||||||||||||||||
Applied Systems, Inc., Second Lien Term Loan |
7.50 | % | 01/23/22 | 747 | 754,852 | |||||||||||
Cooper Gay Swett & Crawford Ltd., |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 04/16/20 | 1,748 | 1,638,700 | |||||||||||
Second Lien Term Loan |
8.25 | % | 10/16/20 | 1,177 | 1,065,247 | |||||||||||
3,458,799 | ||||||||||||||||
Leisure Goods, Activities & Movies4.40% | ||||||||||||||||
Alpha Topco Ltd. (United Kingdom), |
||||||||||||||||
Second Lien Term Loan(c) |
| 07/29/22 | 6,335 | 6,403,480 | ||||||||||||
Term Loan B-3 |
4.75 | % | 07/30/21 | 7,854 | 7,835,606 | |||||||||||
CWGS Group, LLC, Term Loan |
5.75 | % | 02/20/20 | 3,567 | 3,598,347 | |||||||||||
Dave & Busters, Inc., Term Loan |
4.50 | % | 07/25/20 | 767 | 766,849 | |||||||||||
Dorna Sports, S.L. (Spain), Term Loan B |
4.31 | % | 04/30/21 | EUR | 6,457 | 8,512,969 | ||||||||||
Equinox Holdings Inc., |
||||||||||||||||
First Lien Term Loan |
4.25 | % | 01/31/20 | 459 | 458,459 | |||||||||||
Revolver Loan (Acquired 04/14/14-07/24/14; Cost $837,825)(d) |
0.00 | % | 02/01/18 | 838 | 777,082 | |||||||||||
Revolver Loan (Acquired 07/24/14; Cost $209,456) |
1.65 | % | 02/01/18 | 209 | 194,271 | |||||||||||
Fitness International, LLC, Term Loan B |
5.50 | % | 07/01/20 | 2,946 | 2,942,108 | |||||||||||
Infront Finance Luxembourg S.a r.l. (Switzerland), |
||||||||||||||||
Term Loan B |
5.07 | % | 06/28/19 | EUR | 7,500 | 9,805,351 | ||||||||||
Term Loan D |
8.07 | % | 06/28/20 | EUR | 1,750 | 2,286,007 | ||||||||||
Metro-Goldwyn-Mayer Inc., Second Lien Term Loan |
5.13 | % | 06/26/20 | 853 | 857,502 | |||||||||||
Outerstuff LLC, Term Loan |
5.00 | % | 07/28/21 | 690 | 686,127 | |||||||||||
World Triathlon Corp., Term Loan (Acquired 06/25/14; Cost $230,635) |
5.25 | % | 06/26/21 | 232 | 232,153 | |||||||||||
45,356,311 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
12 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Lodging & Casinos2.69% | ||||||||||||||||
B&B Hotels SAS (France), Term Loan B (Acquired 07/22/14; Cost $4,267,410) |
4.21 | % | 07/24/21 | EUR | 3,200 | $ | 4,183,617 | |||||||||
Belmond Interfin Ltd. (Bermuda), |
||||||||||||||||
Euro Term Loan |
4.25 | % | 03/21/21 | EUR | 1,496 | 1,970,913 | ||||||||||
Term Loan |
4.00 | % | 03/21/21 | 1,324 | 1,317,352 | |||||||||||
Cannery Casino Resorts, LLC, First Lien Term Loan |
6.00 | % | 10/02/18 | 2,122 | 2,130,333 | |||||||||||
ESH Hospitality, Inc., Term Loan |
5.00 | % | 06/24/19 | 2,090 | 2,113,545 | |||||||||||
Four Seasons Holdings Inc. (Canada), Second Lien Term Loan |
6.25 | % | 12/27/20 | 1,260 | 1,267,633 | |||||||||||
Harrahs Operating Co., Inc., |
||||||||||||||||
Term Loan B |
6.25 | % | 05/08/21 | 3,357 | 3,291,515 | |||||||||||
Term Loan B-4 |
9.50 | % | 10/31/16 | 295 | 291,651 | |||||||||||
Term Loan B-6 |
6.95 | % | 03/01/17 | 4,207 | 3,953,926 | |||||||||||
La Quinta Intermediate Holdings LLC, Term Loan |
4.00 | % | 04/14/21 | 187 | 187,429 | |||||||||||
Scientific Games International, Inc., Term Loan |
4.25 | % | 10/18/20 | 1,886 | 1,864,911 | |||||||||||
Twin River Management Group, Inc., Term Loan |
5.25 | % | 07/10/20 | 3,202 | 3,213,816 | |||||||||||
Yonkers Racing Corp., |
||||||||||||||||
First Lien Term Loan |
4.25 | % | 08/20/19 | 1,765 | 1,668,752 | |||||||||||
Second Lien Term Loan |
8.75 | % | 08/20/20 | 253 | 229,860 | |||||||||||
27,685,253 | ||||||||||||||||
Nonferrous Metals & Minerals3.16% | ||||||||||||||||
Alpha Natural Resources, Inc., Term Loan B |
3.50 | % | 05/22/20 | 2,806 | 2,666,698 | |||||||||||
Arch Coal, Inc., Term Loan |
6.25 | % | 05/16/18 | 3,616 | 3,524,990 | |||||||||||
EP Minerals, LLC, First Lien Term Loan(c) |
| 08/20/20 | 504 | 508,728 | ||||||||||||
Levantina Group (Spain), Term Loan(c) |
| 06/30/20 | EUR | 5,138 | 5,535,605 | |||||||||||
Noranda Aluminum Acquisition Corp., Term Loan B |
5.75 | % | 02/28/19 | 3,328 | 3,257,351 | |||||||||||
PLU Holding SAS (France), |
||||||||||||||||
Acquisition Loan |
2.32 | % | 01/30/15 | EUR | 225 | 293,513 | ||||||||||
Term Loan B1a-B |
4.32 | % | 08/31/16 | EUR | 1,255 | 1,655,586 | ||||||||||
Term Loan B1a-B |
4.32 | % | 08/31/16 | EUR | 361 | 476,209 | ||||||||||
Term Loan Ca-B |
4.82 | % | 08/31/16 | EUR | 1,255 | 1,655,586 | ||||||||||
Term Loan Cb-B |
4.82 | % | 08/31/16 | EUR | 361 | 476,209 | ||||||||||
Mezzanine, (Acquired 03/20/14; Cost $2,656,459) |
3.57 | % | 01/20/20 | EUR | 1,923 | 2,535,667 | ||||||||||
Second Lien Term Loan, (Acquired 03/20/14; Cost $4,867,623) |
5.82 | % | 10/29/16 | EUR | 3,523 | 4,646,157 | ||||||||||
Walter Energy, Inc., Term Loan B |
7.25 | % | 04/02/18 | 5,566 | 5,305,826 | |||||||||||
32,538,125 | ||||||||||||||||
Oil & Gas7.88% | ||||||||||||||||
American EnergyMarcellus, LLC, |
||||||||||||||||
First Lien Term Loan |
5.25 | % | 08/04/20 | 2,086 | 2,094,907 | |||||||||||
Second Lien Term Loan |
8.50 | % | 08/04/21 | 559 | 564,336 | |||||||||||
Ameriforge Group Inc., First Lien Term Loan |
5.00 | % | 12/19/19 | 27 | 26,964 | |||||||||||
Atlas Energy, L.P., Term Loan |
6.50 | % | 07/31/19 | 1,288 | 1,304,401 | |||||||||||
Bronco Midstream Funding, LLC, Term Loan |
5.00 | % | 08/15/20 | 3,153 | 3,170,667 | |||||||||||
Crestwood Holdings LLC, Term Loan B-1 |
7.00 | % | 06/19/19 | 1,695 | 1,727,843 | |||||||||||
Delek Benelux B.V. (Netherlands), |
||||||||||||||||
EUR Term Loan B-2(c) |
| 02/28/19 | EUR | 3,953 | 5,160,794 | |||||||||||
EUR Term Loan B-3(c) |
| 02/28/19 | EUR | 1,555 | 2,030,222 | |||||||||||
EUR Term Loan B-4(c) |
| 02/28/19 | EUR | 145 | 189,074 | |||||||||||
Term Loan B(c) |
| 02/28/19 | EUR | 722 | 942,271 | |||||||||||
Drillships Financing Holding Inc., Term Loan B-1 |
6.00 | % | 03/31/21 | 10,589 | 10,650,998 | |||||||||||
Drillships Ocean Ventures Inc., Term Loan |
5.50 | % | 07/25/21 | 4,259 | 4,285,186 | |||||||||||
EMG Utica, LLC, Term Loan |
4.75 | % | 03/27/20 | 1,351 | 1,354,647 | |||||||||||
Expro Holdings UK 3 Ltd., Term Loan(c) |
| 09/02/21 | 3,103 | 3,115,977 | ||||||||||||
Fieldwood Energy LLC, Term Loan |
8.38 | % | 09/30/20 | 7,168 | 7,346,841 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
13 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Oil & Gas(continued) | ||||||||||||||||
Floatel International, Ltd., Term Loan |
6.00 | % | 06/27/20 | 3,284 | $ | 3,300,818 | ||||||||||
HGIM Corp., Term Loan B |
5.50 | % | 06/18/20 | 3,877 | 3,882,035 | |||||||||||
Jonah Energy LLC, Second Lien Term Loan |
7.50 | % | 05/12/21 | 2,016 | 2,026,380 | |||||||||||
McDermott International, Inc., Term Loan |
5.25 | % | 04/16/19 | 1,525 | 1,541,897 | |||||||||||
NGPL PipeCo LLC, Term Loan |
6.75 | % | 09/15/17 | 2,789 | 2,795,698 | |||||||||||
Obsidian Natural Gas Trust (United Kingdom), Term Loan |
7.00 | % | 11/02/15 | 536 | 540,132 | |||||||||||
Osum Productions Corp. (Canada), Term Loan |
6.50 | % | 07/31/20 | 1,211 | 1,208,298 | |||||||||||
Paragon Offshore Finance Co. (Cayman Islands), Term Loan |
3.75 | % | 07/16/21 | 1,425 | 1,410,273 | |||||||||||
Samson Investment Co., Second Lien Term Loan |
5.00 | % | 09/25/18 | 4,011 | 3,978,638 | |||||||||||
Seadrill Operating LP, Term Loan |
4.00 | % | 02/21/21 | 9,256 | 9,120,797 | |||||||||||
Seventy Seven Operating LLC, Term Loan |
3.75 | % | 06/25/21 | 735 | 736,159 | |||||||||||
Southcross Energy Partners, L.P., Term Loan(c) |
| 08/04/21 | 1,067 | 1,075,575 | ||||||||||||
Tervita Corp. (Canada), Term Loan |
6.25 | % | 05/15/18 | 3,994 | 4,009,987 | |||||||||||
Utex Industries, Inc., |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 05/21/21 | 1,120 | 1,122,460 | |||||||||||
Second Lien Term Loan |
8.25 | % | 05/20/22 | 441 | 449,988 | |||||||||||
81,164,263 | ||||||||||||||||
Publishing3.56% | ||||||||||||||||
ASA Newco GmbH (Germany), Term Loan B |
4.34 | % | 02/12/21 | EUR | 5,850 | 7,726,654 | ||||||||||
Chesapeake US Holdings Inc., |
||||||||||||||||
Term Loan A |
4.25 | % | 09/30/20 | 1,001 | 1,000,028 | |||||||||||
Term Loan B |
4.25 | % | 09/30/20 | 1,949 | 1,947,889 | |||||||||||
Getty Images, Inc., |
||||||||||||||||
Revolver Loan(d) |
0.00 | % | 10/18/17 | 4,247 | 3,737,130 | |||||||||||
Term Loan |
4.75 | % | 10/18/19 | 1,660 | 1,574,260 | |||||||||||
Harland Clarke Holdings Corp., |
||||||||||||||||
Term Loan B-2 |
5.48 | % | 06/30/17 | 241 | 242,115 | |||||||||||
Term Loan B-4 |
6.00 | % | 08/04/19 | 868 | 879,391 | |||||||||||
Interactive Data Corp., Term Loan |
4.75 | % | 05/02/21 | 6,634 | 6,664,089 | |||||||||||
MediMedia USA, Inc., First Lien Term Loan |
8.00 | % | 11/20/18 | 3,518 | 3,456,351 | |||||||||||
Merrill Communications LLC, Term Loan |
5.75 | % | 03/08/18 | 5,255 | 5,321,014 | |||||||||||
Newsday, LLC, Term Loan |
3.66 | % | 10/12/16 | 1,690 | 1,694,909 | |||||||||||
ProQuest LLC, Term Loan |
6.00 | % | 04/13/18 | 2,392 | 2,401,495 | |||||||||||
36,645,325 | ||||||||||||||||
Radio & Television3.77% | ||||||||||||||||
Clear Channel Communications, Inc., |
||||||||||||||||
Term Loan B |
3.81 | % | 01/29/16 | 345 | 343,301 | |||||||||||
Term Loan D |
6.91 | % | 01/30/19 | 15,799 | 15,604,908 | |||||||||||
Term Loan E |
7.66 | % | 07/31/19 | 2,833 | 2,831,457 | |||||||||||
NEP/NCP HoldCo, Inc., Second Lien Term Loan |
9.50 | % | 07/22/20 | 155 | 158,148 | |||||||||||
TWCC Holding Corp., |
||||||||||||||||
Second Lien Term Loan |
7.00 | % | 06/26/20 | 4,620 | 4,572,299 | |||||||||||
Term Loan |
3.50 | % | 02/13/17 | 3,464 | 3,429,486 | |||||||||||
Tyrol Acquisition 2 SAS, (France) |
||||||||||||||||
PIK Term Loan B-2(e) |
1.00 | % | 01/29/16 | EUR | 505 | 643,757 | ||||||||||
PIK Term Loan C-2(e) |
1.00 | % | 01/29/16 | EUR | 505 | 643,757 | ||||||||||
PIK Term Loan D(e) |
1.00 | % | 01/29/16 | EUR | 2,809 | 3,561,781 | ||||||||||
Revolver Loan(d) |
0.00 | % | 01/31/16 | EUR | 1,938 | 2,390,352 | ||||||||||
Revolver Loan(c) |
| 01/31/16 | EUR | 81 | 99,760 | |||||||||||
Second Lien Term Loan |
3.32 | % | 07/29/16 | EUR | 2,193 | 2,733,288 | ||||||||||
Term Loan C |
2.32 | % | 01/29/16 | EUR | 1,390 | 1,771,057 | ||||||||||
38,783,351 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
14 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Retailers (except Food & Drug)5.81% | ||||||||||||||||
Davids Bridal, Inc., |
||||||||||||||||
Asset-Backed Revolver Loan(d) |
0.00 | % | 10/11/17 | 1,848 | $ | 1,719,006 | ||||||||||
Term Loan |
5.00 | % | 10/11/19 | 3,140 | 3,083,393 | |||||||||||
J.C. Penney Corp., Inc., Term Loan |
5.00 | % | 06/20/19 | 1,399 | 1,401,413 | |||||||||||
Lands End, Inc., Term Loan B |
4.25 | % | 04/02/21 | 2,547 | 2,530,802 | |||||||||||
National Vision, Inc., First Lien Term Loan |
4.00 | % | 03/13/21 | 2,078 | 2,048,480 | |||||||||||
Nine West Holdings, Inc., Term Loan |
4.75 | % | 10/08/19 | 1,926 | 1,933,081 | |||||||||||
OSP Group, Inc., First Lien Term Loan |
4.50 | % | 03/18/21 | 2,129 | 2,129,203 | |||||||||||
Payless, Inc., |
||||||||||||||||
Second Lien Term Loan |
8.50 | % | 03/11/22 | 1,222 | 1,214,887 | |||||||||||
Term Loan |
5.00 | % | 03/11/21 | 3,832 | 3,824,998 | |||||||||||
Pep BoysManny, Moe & Jack, Term Loan B |
4.25 | % | 10/11/18 | 395 | 394,627 | |||||||||||
Pier 1 Imports (U.S.), Inc., Term Loan |
4.50 | % | 04/30/21 | 1,066 | 1,065,158 | |||||||||||
Savers Inc., Term Loan |
5.00 | % | 07/09/19 | 3,355 | 3,364,488 | |||||||||||
Sears Roebuck Acceptance Corp., Term Loan |
5.50 | % | 06/30/18 | 12,642 | 12,662,112 | |||||||||||
Spin Holdco Inc., First Lien Term Loan |
4.25 | % | 11/14/19 | 4,009 | 3,985,119 | |||||||||||
Toys R US Property Co. I, LLC, Term Loan |
6.00 | % | 08/21/19 | 6,772 | 6,522,213 | |||||||||||
Toys R US-Delaware, Inc., |
||||||||||||||||
Term Loan |
6.00 | % | 09/01/16 | 1,710 | 1,606,887 | |||||||||||
Term Loan B-2 |
5.25 | % | 05/25/18 | 633 | 537,113 | |||||||||||
Vivarte S.A. (France), Term Loan(c) |
| 01/01/19 | EUR | 4,814 | 7,011,054 | |||||||||||
Wilton Brands LLC, Term Loan B |
7.50 | % | 08/30/18 | 2,898 | 2,756,807 | |||||||||||
59,790,841 | ||||||||||||||||
Steel0.56% | ||||||||||||||||
JFB Firth Rixson Inc., Term Loan |
4.25 | % | 06/30/17 | 849 | 849,842 | |||||||||||
TMS International Corp., Term Loan B |
4.50 | % | 10/16/20 | 1,761 | 1,762,812 | |||||||||||
Waupaca Foundry, Inc., Term Loan |
4.00 | % | 06/29/17 | 3,164 | 3,166,200 | |||||||||||
5,778,854 | ||||||||||||||||
Surface Transport1.09% | ||||||||||||||||
1908 Holding B.V. (Netherlands), Term Loan B(c) |
| 06/19/21 | EUR | 1,750 | 2,302,287 | |||||||||||
Hertz Corp. (The), LOC |
3.75 | % | 03/09/18 | 849 | 837,977 | |||||||||||
Navios Partners Finance (US) Inc., Term Loan |
5.25 | % | 06/27/18 | 4,464 | 4,522,018 | |||||||||||
U.S. Shipping Corp., Term Loan B-1(c) |
| 04/30/18 | 2,386 | 2,412,752 | ||||||||||||
Vouvray US Finance LLC, |
||||||||||||||||
Second Lien Term Loan |
8.50 | % | 12/27/21 | 586 | 587,053 | |||||||||||
Term Loan |
5.00 | % | 06/27/21 | 515 | 516,139 | |||||||||||
11,178,226 | ||||||||||||||||
Telecommunications5.26% | ||||||||||||||||
Avaya, Inc., |
||||||||||||||||
Term Loan B-3 |
4.66 | % | 10/26/17 | 14,148 | 13,756,175 | |||||||||||
Term Loan B-6 |
6.50 | % | 03/30/18 | 4,164 | 4,184,573 | |||||||||||
Consolidated Communications, Inc., Term Loan |
4.25 | % | 12/23/20 | 6,331 | 6,351,910 | |||||||||||
Eircom Finco S.a r.l. (Ireland), Term Loan B-2 |
4.76 | % | 09/30/19 | EUR | 7,505 | 9,669,753 | ||||||||||
Fairpoint Communications, Inc., Term Loan |
7.50 | % | 02/14/19 | 5,857 | 5,985,622 | |||||||||||
Fibernet Cable Holdings B.V., (Netherlands) |
||||||||||||||||
Term Loan B (Acquired 08/29/07; Cost $1,336,755)(f)(g) |
0.00 | % | 12/20/14 | EUR | 980 | 0 | ||||||||||
Term Loan C (Acquired 08/29/07; Cost $1,334,606)(f)(g) |
0.00 | % | 12/20/15 | EUR | 980 | 0 | ||||||||||
Hargray Communications Group, Inc., Term Loan |
4.75 | % | 06/26/19 | 224 | 224,837 | |||||||||||
LTS Buyer LLC, Second Lien Term Loan |
8.00 | % | 04/12/21 | 74 | 75,194 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
15 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Telecommunications(continued) | ||||||||||||||||
Nextgen Finance, LLC, Term Loan B |
5.00 | % | 05/31/21 | 3,235 | $ | 3,212,324 | ||||||||||
NTELOS Inc., Term Loan B |
5.75 | % | 11/09/19 | 5,916 | 5,941,852 | |||||||||||
Syniverse Holdings, Inc., Term Loan(c) |
| 04/23/19 | 1,500 | 1,487,190 | ||||||||||||
U.S. TelePacific Corp., Term Loan |
5.75 | % | 02/23/17 | 2,975 | 2,982,671 | |||||||||||
XO Communications, LLC, Term Loan |
4.25 | % | 03/20/21 | 327 | 327,060 | |||||||||||
54,199,161 | ||||||||||||||||
Utilities2.80% | ||||||||||||||||
Texas Competitive Electric Holdings Co. LLC, |
||||||||||||||||
PIK Term Loan(e)(g) |
4.65 | % | 10/10/14 | 6,901 | 5,360,164 | |||||||||||
PIK Term Loan(e)(g) |
4.65 | % | 10/10/17 | 11,658 | 9,058,430 | |||||||||||
Viridian Group Holdings Ltd. (Ireland), PIK Term Loan A(e) |
13.50 | % | 03/16/20 | GBP | 8,643 | 14,395,679 | ||||||||||
28,814,273 | ||||||||||||||||
Total Variable Rate Senior Loan Interests |
1,174,780,871 | |||||||||||||||
Notes25.29% |
||||||||||||||||
Aerospace & Defense0.08% | ||||||||||||||||
LMI Aerospace Inc.(h) |
7.38 | % | 07/15/19 | 794 | 808,888 | |||||||||||
Air Transport0.06% | ||||||||||||||||
Continental Micronesia, Inc.(h) |
6.75 | % | 09/15/15 | 650 | 651,300 | |||||||||||
Automotive0.54% | ||||||||||||||||
Schaeffler AG (Germany)(h) |
6.88 | % | 08/15/18 | EUR | 4,000 | 5,552,752 | ||||||||||
Beverage and Tobacco0.51% | ||||||||||||||||
Adria Group Holding B.V. (Netherlands)(h)(i) |
5.46 | % | 08/08/17 | EUR | 4,000 | 5,298,503 | ||||||||||
Building & Development1.97% | ||||||||||||||||
Aldesa Financial Services S.A. (Luxembourg)(h) |
7.25 | % | 04/01/21 | EUR | 2,500 | 3,367,719 | ||||||||||
Braas Monier Building Group S.A. (Germany)(h)(i) |
5.20 | % | 10/15/20 | EUR | 3,000 | 4,015,168 | ||||||||||
CMC Di Ravenna (Italy)(h) |
7.50 | % | 08/01/21 | EUR | 4,500 | 6,563,180 | ||||||||||
Dry Mix Solutions Investissements S.A.S. (France)(h)(i) |
4.47 | % | 06/15/21 | EUR | 1,500 | 1,958,607 | ||||||||||
Galapagos Holding S.A. (Luxembourg)(h)(i) |
5.06 | % | 06/15/21 | EUR | 1,100 | 1,445,489 | ||||||||||
Galapagos Holding S.A. (Luxembourg)(h) |
7.00 | % | 06/15/22 | EUR | 1,000 | 1,291,836 | ||||||||||
Paroc Group OY (Finland)(h)(i) |
5.45 | % | 05/15/20 | EUR | 750 | 990,390 | ||||||||||
Paroc Group OY (Finland)(h) |
6.25 | % | 05/15/20 | EUR | 500 | 652,048 | ||||||||||
20,284,437 | ||||||||||||||||
Business Equipment & Services0.27% | ||||||||||||||||
ADT Corp. (The) |
6.25 | % | 10/15/21 | 1,361 | 1,446,063 | |||||||||||
First Data Corp.(h) |
6.75 | % | 11/01/20 | 1,225 | 1,329,125 | |||||||||||
2,775,188 | ||||||||||||||||
Cable & Satellite Television0.90% | ||||||||||||||||
Charter Communications Operating LLC |
7.00 | % | 01/15/19 | 0 | 451 | |||||||||||
UPC Broadband Holdings, B.V. (Netherlands)(h) |
8.38 | % | 08/15/20 | EUR | 4,000 | 5,738,019 | ||||||||||
UPC Broadband Holdings, B.V. (Netherlands)(h) |
7.25 | % | 11/15/21 | 2,941 | 3,235,100 | |||||||||||
UPC Broadband Holdings, B.V. (Netherlands)(h) |
6.88 | % | 01/15/22 | 236 | 258,420 | |||||||||||
9,231,990 | ||||||||||||||||
Chemicals & Plastics0.95% | ||||||||||||||||
Hexion Specialty Chemicals, Inc. |
6.63 | % | 04/15/20 | 6,294 | 6,655,905 | |||||||||||
Ineos Holdings Ltd.(h)(i) |
7.25 | % | 02/15/19 | EUR | 1,273 | 1,737,474 | ||||||||||
Ineos Holdings Ltd.(h) |
8.38 | % | 02/15/19 | 328 | 356,290 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
16 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Chemicals & Plastics(continued) | ||||||||||||||||
Ineos Holdings Ltd.(h) |
7.50 | % | 05/01/20 | 211 | $ | 228,935 | ||||||||||
Taminco Global Chemical Corp.(h) |
9.75 | % | 03/31/20 | 761 | 842,807 | |||||||||||
9,821,411 | ||||||||||||||||
Clothing & Textiles0.14% | ||||||||||||||||
SMCP SAS (France)(h) |
8.88 | % | 06/15/20 | EUR | 1,000 | 1,410,854 | ||||||||||
Conglomerates1.22% | ||||||||||||||||
CeramTec Acquisition Corp.(h) |
8.25 | % | 08/15/21 | EUR | 4,500 | 6,023,639 | ||||||||||
Grupo Isolux Corsan Finance B.V. (Netherlands)(h) |
6.63 | % | 04/15/21 | EUR | 4,850 | 6,546,567 | ||||||||||
12,570,206 | ||||||||||||||||
Containers & Glass Products1.87% | ||||||||||||||||
Ardagh Glass Finance PLC(h) |
6.25 | % | 01/31/19 | 990 | 1,009,800 | |||||||||||
Ardagh Glass Finance PLC(h) |
8.75 | % | 02/01/20 | EUR | 4,000 | 5,580,346 | ||||||||||
Ardagh Glass Finance PLC(h) |
8.75 | % | 02/01/20 | EUR | 1,000 | 1,395,086 | ||||||||||
Ardagh Glass Finance PLC(h) |
7.00 | % | 11/15/20 | 178 | 182,329 | |||||||||||
Reynolds Group Holdings Inc. |
7.88 | % | 08/15/19 | 936 | 1,014,390 | |||||||||||
Reynolds Group Holdings Inc. |
9.88 | % | 08/15/19 | 4,453 | 4,953,963 | |||||||||||
Reynolds Group Holdings Inc. |
5.75 | % | 10/15/20 | 3,789 | 3,973,714 | |||||||||||
Reynolds Group Holdings Inc. |
6.88 | % | 02/15/21 | 1,043 | 1,125,136 | |||||||||||
19,234,764 | ||||||||||||||||
Cosmetics & Toiletries0.34% | ||||||||||||||||
Ontex IV S.A. (Netherlands)(h) |
7.50 | % | 04/15/18 | EUR | 2,530 | 3,473,887 | ||||||||||
Electronics & Electrical0.22% | ||||||||||||||||
Blackboard Inc.(h) |
7.75 | % | 11/15/19 | 2,234 | 2,295,435 | |||||||||||
Farming & Agriculture0.53% | ||||||||||||||||
Moy Park PLC (United Kingdom)(h) |
6.25 | % | 05/29/21 | GBP | 3,333 | 5,477,949 | ||||||||||
Financial Intermediaries1.29% | ||||||||||||||||
Cabot Financial S.A. (Luxembourg)(h) |
6.50 | % | 04/01/21 | GBP | 4,875 | 7,932,988 | ||||||||||
TMF Group Holdco B.V. (Netherlands)(h)(i) |
5.69 | % | 12/01/18 | EUR | 3,998 | 5,317,765 | ||||||||||
13,250,753 | ||||||||||||||||
Food & Drug Retailers0.04% | ||||||||||||||||
Oswestry Midco Ltd. (United Kingdom)(h)(i) |
4.80 | % | 07/15/20 | GBP | 250 | 412,962 | ||||||||||
Food Products0.05% | ||||||||||||||||
Chiquita Brands LLC |
7.88 | % | 02/01/21 | 440 | 484,550 | |||||||||||
Forest Products0.27% | ||||||||||||||||
Verso Paper Holdings LLC |
11.75 | % | 01/15/19 | 2,632 | 2,776,760 | |||||||||||
Health Care3.12% | ||||||||||||||||
Biomet Inc. |
6.50 | % | 08/01/20 | 652 | 704,160 | |||||||||||
Care UK Health & Social Care plc (United Kingdom)(h)(i) |
5.20 | % | 07/15/19 | GBP | 2,500 | 4,067,369 | ||||||||||
Community Health Systems Inc.(h) |
6.88 | % | 02/01/22 | 590 | 631,300 | |||||||||||
DJO Finance LLC |
9.75 | % | 10/15/17 | 2,015 | 2,110,712 | |||||||||||
DJO Finance LLC |
8.75 | % | 03/15/18 | 1,861 | 1,986,618 | |||||||||||
Groupe Labco S.A. (France)(h) |
8.50 | % | 01/15/18 | EUR | 5,000 | 6,996,783 | ||||||||||
Kinetic Concepts, Inc. |
10.50 | % | 11/01/18 | 1,619 | 1,819,351 | |||||||||||
Medi-Partenaires (France)(h) |
7.00 | % | 05/15/20 | EUR | 5,500 | 7,660,328 | ||||||||||
Unilabs SubHolding AB (Sweden)(h) |
8.50 | % | 07/15/18 | EUR | 4,500 | 6,178,850 | ||||||||||
32,155,471 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
17 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Industrial Equipment0.19% | ||||||||||||||||
Groupe Loxam (France)(h) |
7.00 | % | 07/23/22 | EUR | 1,500 | $ | 1,937,912 | |||||||||
Insurance0.85% | ||||||||||||||||
Domestic & General Group Ltd. (United Kingdom)(h)(i) |
5.56 | % | 11/15/19 | GBP | 3,500 | 5,839,580 | ||||||||||
Domestic & General Group Ltd. (United Kingdom)(h) |
6.38 | % | 11/15/20 | GBP | 1,750 | 2,916,158 | ||||||||||
8,755,738 | ||||||||||||||||
Leisure Goods, Activities & Movies1.09% | ||||||||||||||||
Corleone Capital Ltd. (United Kingdom)(h) |
9.00 | % | 08/01/18 | GBP | 1,962 | 3,302,002 | ||||||||||
Vue Entertainment Investment Ltd. (United Kingdom)(h)(i) |
5.45 | % | 07/15/20 | EUR | 6,000 | 7,954,653 | ||||||||||
11,256,655 | ||||||||||||||||
Lodging & Casinos0.06% | ||||||||||||||||
Harrahs Operating Co. Inc. |
9.00 | % | 02/15/20 | 738 | 597,780 | |||||||||||
Nonferrous Metals & Minerals0.60% | ||||||||||||||||
TiZir Ltd. (United Kingdom)(h) |
9.00 | % | 09/28/17 | 6,200 | 6,231,000 | |||||||||||
Oil & Gas0.24% | ||||||||||||||||
Seventy Seven Operating LLC(h) |
6.50 | % | 07/15/22 | 126 | 130,410 | |||||||||||
Tervita Corp. (Canada)(h) |
8.00 | % | 11/15/18 | 2,098 | 2,193,039 | |||||||||||
Western Refining, Inc. |
6.25 | % | 04/01/21 | 187 | 195,415 | |||||||||||
2,518,864 | ||||||||||||||||
Publishing0.45% | ||||||||||||||||
Merrill Communications LLC(h) |
10.00 | % | 03/08/23 | 5,219 | 4,593,070 | |||||||||||
Radio & Television0.08% | ||||||||||||||||
Sinclair Television Group, Inc. |
6.38 | % | 11/01/21 | 740 | 791,800 | |||||||||||
Retailers (except Food & Drug)3.40% | ||||||||||||||||
Claires Stores Inc.(h) |
9.00 | % | 03/15/19 | 1,507 | 1,574,815 | |||||||||||
Claires Stores Inc.(h) |
6.13 | % | 03/15/20 | 1,262 | 1,205,210 | |||||||||||
Guitar Center Inc.(h) |
6.50 | % | 04/15/19 | 2,621 | 2,503,055 | |||||||||||
HEMA Holding B.V. (Netherlands)(h)(i) |
5.48 | % | 06/15/19 | EUR | 3,447 | 4,495,217 | ||||||||||
Matalan Finance PLC (United Kingdom)(h) |
6.88 | % | 06/01/19 | GBP | 4,760 | 7,852,927 | ||||||||||
New Look Bondco I PLC (United Kingdom)(h)(i) |
6.49 | % | 05/14/18 | EUR | 2,667 | 3,539,698 | ||||||||||
New Look Bondco I PLC (United Kingdom)(h) |
8.75 | % | 05/14/18 | GBP | 1,500 | 2,652,091 | ||||||||||
Salsa Retail Holding Debtco 1 S.a r.l. (Germany)(h)(i) |
7.20 | % | 04/15/19 | EUR | 1,500 | 1,828,033 | ||||||||||
Stampos B.V. (Netherlands)(h)(i) |
5.20 | % | 05/15/19 | EUR | 5,333 | 7,088,860 | ||||||||||
Targus Group International, Inc. (Acquired 12/16/09-03/18/14; Cost $5,610,920)(h)(j) |
10.00 | % | 06/14/19 | 2,252 | 2,252,130 | |||||||||||
34,992,036 | ||||||||||||||||
Surface Transport0.51% | ||||||||||||||||
Nobina Europe AB (Sweden) |
8.00 | % | 05/13/19 | SEK | 36,000 | 5,240,906 | ||||||||||
Telecommunications3.18% | ||||||||||||||||
Avaya Inc.(h) |
7.00 | % | 04/01/19 | 1,020 | 1,020,400 | |||||||||||
Goodman Networks Inc. |
12.13 | % | 07/01/18 | 4,887 | 5,332,939 | |||||||||||
Matterhorn Mobile S.A. (Luxembourg)(h)(i) |
5.40 | % | 05/15/19 | CHF | 2,000 | 2,211,208 | ||||||||||
Matterhorn Mobile S.A. (Luxembourg)(h) |
7.75 | % | 02/15/20 | EUR | 500 | 699,048 | ||||||||||
Matterhorn Mobile S.A. (Luxembourg)(h) |
8.25 | % | 02/15/20 | EUR | 5,000 | 7,161,027 | ||||||||||
Wind Acquisition Finance S.A. (Italy)(h) |
7.00 | % | 04/23/21 | EUR | 9,500 | 13,393,749 | ||||||||||
Windstream Corp. |
7.50 | % | 06/01/22 | 2,709 | 2,962,969 | |||||||||||
Windstream Corp. |
6.38 | % | 08/01/23 | 20 | 20,125 | |||||||||||
32,801,465 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
18 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Utilities0.27% | ||||||||||||||||
Calpine Corp.(h) |
7.50 | % | 02/15/21 | 0 | $ | 499 | ||||||||||
Calpine Corp.(h) |
6.00 | % | 01/15/22 | 430 | 466,550 | |||||||||||
Calpine Corp.(h) |
7.88 | % | 01/15/23 | 0 | 164 | |||||||||||
NRG Energy Inc.(h) |
6.25 | % | 07/15/22 | 958 | 1,009,493 | |||||||||||
NRG Energy Inc. |
6.63 | % | 03/15/23 | 1,103 | 1,177,452 | |||||||||||
Viridian Group Holdings Ltd. (Ireland)(h) |
11.13 | % | 04/01/17 | 94 | 103,400 | |||||||||||
2,757,558 | ||||||||||||||||
Total Notes |
260,442,844 | |||||||||||||||
Structured Products7.54% |
||||||||||||||||
Apidos Cinco CDO(h)(i) |
4.48 | % | 05/14/20 | 930 | 908,205 | |||||||||||
Apidos CLO IX(h)(i) |
6.73 | % | 07/15/23 | 2,660 | 2,666,686 | |||||||||||
Apidos CLO X(h)(i) |
6.49 | % | 10/30/22 | 3,499 | 3,503,976 | |||||||||||
Apidos CLO XI(h)(i) |
5.48 | % | 01/17/23 | 4,830 | 4,571,885 | |||||||||||
Apidos CLO XV(h)(i) |
4.98 | % | 10/20/25 | 1,000 | 914,426 | |||||||||||
Apidos Quattro CDO(h)(i) |
3.83 | % | 01/20/19 | 631 | 621,615 | |||||||||||
Ares XI CLO, Ltd.(h)(i) |
3.23 | % | 10/11/21 | 792 | 766,163 | |||||||||||
Atrium IV CDO Corp.(h) |
9.18 | % | 06/08/19 | 328 | 345,016 | |||||||||||
Avoca CLO (Italy)(h)(i) |
5.50 | % | 10/15/27 | EUR | 1,500 | 1,861,795 | ||||||||||
Babson CLO Ltd. 2013-II(h)(i) |
4.73 | % | 01/18/25 | 2,365 | 2,128,614 | |||||||||||
Babson Euro CLO 2014-1 B.V. (Netherlands)(h)(i) |
4.60 | % | 04/15/27 | EUR | 2,000 | 2,404,218 | ||||||||||
Babson Euro CLO 2014-1 B.V. (Netherlands)(h)(i) |
5.60 | % | 04/15/27 | EUR | 621 | 743,745 | ||||||||||
Carlyle Global Market Strategies CLO 2012-3(h)(i) |
5.73 | % | 10/14/24 | 623 | 612,734 | |||||||||||
Carlyle Global Market Strategies CLO 2013-1(h)(i) |
5.73 | % | 02/14/25 | 1,200 | 1,151,576 | |||||||||||
Centurion CDO 15 Ltd.(h)(i) |
2.48 | % | 03/11/21 | 2,750 | 2,592,090 | |||||||||||
Euro Galaxy 2013-3 (Netherlands)(h)(i) |
5.61 | % | 01/15/27 | EUR | 2,929 | 3,615,375 | ||||||||||
Flagship CLO VI(h)(i) |
4.98 | % | 06/10/21 | 922 | 910,607 | |||||||||||
Flagship CLO VI(h)(i) |
4.98 | % | 06/10/21 | 3,085 | 3,045,463 | |||||||||||
Halcyon Loan Investors CLO II, Ltd.(h)(i) |
3.83 | % | 04/24/21 | 2,121 | 2,003,051 | |||||||||||
ING Investment Management CLO 2012-3, Ltd.(h)(i) |
6.08 | % | 10/15/22 | 1,261 | 1,242,497 | |||||||||||
ING Investment Management CLO 2012-4, Ltd.(h)(i) |
5.98 | % | 10/15/23 | 4,765 | 4,730,825 | |||||||||||
ING Investment Management CLO 2013-3(h)(i) |
4.73 | % | 01/18/26 | 1,573 | 1,403,942 | |||||||||||
ING Investment Management CLO III, Ltd.(h)(i) |
3.73 | % | 12/13/20 | 1,842 | 1,775,856 | |||||||||||
ING Investment Management CLO IV, Ltd.(h)(i) |
4.48 | % | 06/14/22 | 395 | 387,027 | |||||||||||
Keuka Park CLO 2013-1(h)(i) |
4.73 | % | 10/21/24 | 328 | 295,518 | |||||||||||
KKR Financial CLO 2012-1(h)(i) |
5.73 | % | 12/15/24 | 4,900 | 4,770,008 | |||||||||||
Madison Park Funding X Ltd.(h)(i) |
5.48 | % | 01/20/25 | 1,185 | 1,155,621 | |||||||||||
Madison Park Funding XIV Ltd.(h)(i) |
4.98 | % | 07/20/26 | 750 | 679,567 | |||||||||||
Madison Park Funding XIV Ltd.(h)(i) |
5.63 | % | 07/20/26 | 1,060 | 936,300 | |||||||||||
Octagon Investment Partners XIV Ltd.(h)(i) |
5.48 | % | 01/15/24 | 1,146 | 1,077,773 | |||||||||||
Octagon Investment Partners XIX Ltd.(h)(i) |
5.08 | % | 04/15/26 | 1,639 | 1,502,584 | |||||||||||
Octagon Investment Partners XVIII Ltd.(h)(i) |
5.48 | % | 12/16/24 | 2,365 | 2,227,842 | |||||||||||
Pacifica CDO VI, Ltd.(h)(i) |
3.98 | % | 08/15/21 | 1,538 | 1,443,850 | |||||||||||
Regatta IV Funding Ltd. 2014-1(h)(i) |
5.18 | % | 07/25/26 | 1,000 | 906,455 | |||||||||||
Sierra CLO II Ltd.(h)(i) |
3.73 | % | 01/22/21 | 1,696 | 1,641,450 | |||||||||||
Silverado CLO 2006-II Ltd.(h)(i) |
3.98 | % | 10/16/20 | 2,050 | 1,962,291 | |||||||||||
Slater Mill Loan Fund, LP(h)(i) |
5.73 | % | 08/17/22 | 3,076 | 3,025,212 | |||||||||||
St. Pauls IV CLO (Ireland)(h)(i) |
5.09 | % | 04/25/28 | EUR | 1,500 | 1,786,241 | ||||||||||
St. Pauls IV CLO (Ireland)(h)(i) |
6.29 | % | 04/25/28 | EUR | 500 | 615,311 | ||||||||||
Symphony CLO IX, Ltd.(h)(i) |
5.23 | % | 04/16/22 | 5,126 | 4,992,575 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 Invesco Dynamic Credit Opportunities Fund
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Symphony CLO VIII, Ltd.(h)(i) |
5.98 | % | 01/09/23 | 2,790 | $ | 2,775,849 | ||||||||||
Symphony CLO XI(h)(i) |
5.48 | % | 01/17/25 | 1,030 | 975,296 | |||||||||||
Total Structured Products |
77,677,130 | |||||||||||||||
Shares | ||||||||||||||||
Common Stocks & Other Equity Interests5.15% |
||||||||||||||||
Aerospace & Defense0.02% | ||||||||||||||||
IAP Worldwide Services(h)(k) |
213 | 176,138 | ||||||||||||||
Building & Development0.58% | ||||||||||||||||
Axia Acquisition Corp. (Acquired 03/19/10; Cost $1,404,030)(h)(k) |
101 | 490,230 | ||||||||||||||
Building Materials Holding Corp.(h)(k) |
512,204 | 4,097,632 | ||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class A, (Acquired 07/15/10; Cost $24,140,508)(h)(k) |
2,339 | 0 | ||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class B, (Acquired 07/15/10; Cost $285,788)(h)(k) |
28 | 0 | ||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class C, Wts. expiring 07/15/15 |
117 | 0 | ||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class D, Wts. expiring 07/15/15 |
161 | 0 | ||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class E, Wts. expiring 07/15/15 |
180 | 0 | ||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class F, Wts. expiring 07/15/15 |
202 | 0 | ||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class G, Wts. expiring 07/15/15 |
229 | 0 | ||||||||||||||
Newhall Holding Co., LLC, Class A(h)(k) |
237,570 | 969,998 | ||||||||||||||
Rhodes Homes (Acquired 07/07/09; Cost $963,538)(h)(k) |
750,544 | 60,043 | ||||||||||||||
Tamarack Resort LLC (Acquired 03/07/14; Cost $0)(h)(k) |
10,076 | 0 | ||||||||||||||
WCI Communities, Inc.(k) |
18,849 | 376,038 | ||||||||||||||
5,993,941 | ||||||||||||||||
Commodity Chemicals0.01% | ||||||||||||||||
LyondellBasell Industries N.V., Class A(k) |
344 | 39,336 | ||||||||||||||
Conglomerates0.03% | ||||||||||||||||
Euramax International, Inc.(h)(k) |
1,870 | 280,470 | ||||||||||||||
Cosmetics & Toiletries0.07% | ||||||||||||||||
Marietta Intermediate Holding Corp. (Acquired 07/13/07; Cost $2,591,511)(h)(k) |
1,641,483 | 722,253 | ||||||||||||||
Marietta Intermediate Holding Corp., Wts. expiring 02/20/19 |
413,194 | 0 | ||||||||||||||
722,253 | ||||||||||||||||
Drugs0.00% | ||||||||||||||||
BPA Laboratories, Inc., Class A, Wts. expiring 04/29/24 (Acquired 04/29/14; Cost $0)(h)(k) |
4,658 | 0 | ||||||||||||||
BPA Laboratories, Inc., Class B, Wts. expiring 04/29/24 (Acquired 04/29/14; Cost $0)(h)(k) |
7,468 | 0 | ||||||||||||||
0 | ||||||||||||||||
Financial Intermediaries0.00% | ||||||||||||||||
RJO Holdings Corp.(h)(k) |
2,144 | 21,441 | ||||||||||||||
RJO Holdings Corp., Class A(h)(k) |
1,142 | 571 | ||||||||||||||
RJO Holdings Corp., Class B(h)(k) |
3,333 | 1,667 | ||||||||||||||
23,679 | ||||||||||||||||
Leisure Goods, Activities & Movies1.12% | ||||||||||||||||
Metro-Goldwyn-Mayer Inc., Class A(h)(k) |
150,602 | 11,533,553 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 Invesco Dynamic Credit Opportunities Fund
Shares | Value | |||||||||||
Lodging & Casinos0.15% | ||||||||||||
Twin River Worldwide Holdings, Inc., Class A(h)(k) |
41,966 | $ | 1,566,717 | |||||||||
Publishing0.81% | ||||||||||||
Affiliated Media, Inc.(h)(k) |
87,369 | 2,773,959 | ||||||||||
Merrill Communications LLC, Class A(h)(k) |
602,134 | 3,612,804 | ||||||||||
Tribune Co., Class A(k) |
24,258 | 1,850,885 | ||||||||||
Tribune Publishing Co.(k) |
6,064 | 116,429 | ||||||||||
8,354,077 | ||||||||||||
Retailers (except Food & Drug)0.07% | ||||||||||||
Targus Group International, Inc. (Acquired 12/16/09; Cost $0)(h)(j)(k) |
62,413 | 718,998 | ||||||||||
Surface Transport2.29% | ||||||||||||
Nobina Europe AB (Sweden)(h)(k) |
90,358,291 | 23,619,787 | ||||||||||
Utilities0.00% | ||||||||||||
Bicent Power, LLC, Series A, Wts. expiring 08/21/22 (Acquired 08/21/12; Cost $0)(h)(k) |
2,024 | 0 | ||||||||||
Bicent Power, LLC, Series B, Wts. expiring 08/21/22 (Acquired 08/21/12; Cost $0)(h)(k) |
3,283 | 0 | ||||||||||
0 | ||||||||||||
Total Common Stocks & Other Equity Interests |
53,028,949 | |||||||||||
Preferred Stocks0.01% |
||||||||||||
Building & Development0.00% | ||||||||||||
Tamarack Resort LLC (Acquired 03/07/14; Cost $42,952)(h)(k) |
182 | 42,952 | ||||||||||
United Subcontractors, Inc. (Acquired 08/02/13; Cost $0)(h)(k) |
3 | 76 | ||||||||||
43,028 | ||||||||||||
Financial Intermediaries0.01% | ||||||||||||
RJO Holdings Corp.(h)(k) |
649 | 53,859 | ||||||||||
Total Preferred Stocks |
96,887 | |||||||||||
Money Market Funds0.86% |
||||||||||||
Liquid Assets PortfolioInstitutional Class(l) |
4,404,765 | 4,404,765 | ||||||||||
Premier PortfolioInstitutional Class(l) |
4,404,765 | 4,404,765 | ||||||||||
Total Money Market Funds |
8,809,530 | |||||||||||
TOTAL INVESTMENTS**152.93% (Cost $1,568,223,685) |
1,574,836,211 | |||||||||||
OTHER ASSETS LESS LIABILITIES(5.93)% |
(61,042,130 | ) | ||||||||||
BORROWINGS(34.86)% |
(359,000,000 | ) | ||||||||||
VARIABLE RATE TERM PREFERRED SHARES(12.14)% |
(125,000,000 | ) | ||||||||||
NET ASSETS100.00% |
$ | 1,029,794,081 |
Investment Abbreviations:
CDO | Collateralized Debt Obligation | |
CHF | Swiss Franc | |
CLO | Collateralized Loan Obligation | |
DIP | Debtor-in-possession | |
EUR | Euro | |
GBP | British Pound | |
LOC | Letter of Credit | |
PIK | Payment in Kind | |
SEK | Swedish Krona | |
Wts. | Warrants |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 Invesco Dynamic Credit Opportunities Fund
Notes to Schedule of Investments:
(a) | Variable rate senior loan interests are, at present, not readily marketable, not registered under the Securities Act of 1933, as amended (the 1933 Act) and may be subject to contractual and legal restrictions on sale. Senior secured corporate loans and senior secured debt securities in the Funds portfolio generally have variable rates which adjust to a base, such as the London Inter-Bank Offered Rate (LIBOR), on set dates, typically every 30 days but not greater than one year; and/or have interest rates that float at a margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. |
(b) | Variable rate senior loan interests often require prepayments from excess cash flow 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 secured floating rate interests will have an expected average life of three to five years. |
(c) | This variable rate interest will settle after August 31, 2014, at which time the interest rate will be determined. |
(d) | All or a portion of this holding is subject to unfunded loan commitments. Interest rate will be determined at the time of funding. See Note 8. |
(e) | All or a portion of this security is Payment-in-Kind. |
Issuer | Cash Rate | PIK Rate | ||||||
Dream Secured BondCo AB, Mezzanine Loan |
3.77 | % | 6.75 | % | ||||
Lake at Las Vegas Joint Venture, LLC, Exit Revolver Loan |
0.00 | 5.00 | ||||||
Tamarack Resort LLC, Term Loan A |
8.00 | 8.00 | ||||||
Tamarack Resort LLC, Term Loan B |
0.00 | 6.50 | ||||||
Texas Competitive Electric Holdings, Term Loan |
4.65 | 4.65 | ||||||
Texas Competitive Electric Holdings, Term Loan |
4.65 | 4.65 | ||||||
Tyrol Acquisition 2 SAS, Term Loan B-2 |
3.07 | 1.00 | ||||||
Tyrol Acquisition 2 SAS, Term Loan C-2 |
3.07 | 1.00 | ||||||
Tyrol Acquisition 2 SAS, Term Loan D |
3.08 | 1.00 | ||||||
Viridian Group Holdings Ltd., Term Loan A |
0.00 | 13.50 |
(f) | Restructured security not accruing interest income. |
(g) | The borrower has filed for protection in federal bankruptcy court. |
(h) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the 1933 Act). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at August 31, 2014 was $343,491,963, which represented 33.36% of the Funds Net Assets. |
(i) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2014. |
(j) | Affiliated company during the period. The Investment Company Act of 1940 defines affiliates as those companies in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the Investment Company Act of 1940) of that issuer. The aggregate value of these securities as of August 31, 2014 was $2,971,128, which represented less than 1% of the Funds Net Assets. See Note 5. |
(k) | Non-income producing securities acquired through the restructuring of senior loans. |
(l) | The money market fund and the Fund are affiliated by having the same investment adviser. |
* | Principal amounts are denominated in U.S. dollars unless otherwise noted. |
** | Calculated as a percentage of net assets. Amounts in excess of 100% are due to the Funds use of leverage. |
Portfolio Composition1
By credit quality, based on total investments
as of August 31, 2014
BBB |
0.4 | % | ||
BB |
15.4 | |||
B |
53.9 | |||
CCC |
8.7 | |||
CC |
0.2 | |||
Non-Rated |
18.0 | |||
Equity |
3.4 |
1 | Source: Standard & Poors. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. Non-Rated indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard and Poors rating methodology, please visit standardandpoors.com and select Understanding Ratings under Rating Resources on the homepage. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
22 Invesco Dynamic Credit Opportunities Fund
Statement of Assets and Liabilities
August 31, 2014
(Unaudited)
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
23 Invesco Dynamic Credit Opportunities Fund
Statement of Operations
For the six months ended August 31, 2014
(Unaudited)
Investment income: |
| |||
Interest |
$ | 43,699,231 | ||
Dividends |
1,251,504 | |||
Interest and dividends from affiliates |
113,840 | |||
Other income |
2,469,638 | |||
Total investment income |
47,534,213 | |||
Expenses: |
||||
Advisory fees |
9,225,231 | |||
Administrative services fees |
119,408 | |||
Custodian fees |
262,596 | |||
Interest, facilities and maintenance fees |
2,724,023 | |||
Transfer agent fees |
39,522 | |||
Trustees and officers fees and benefits |
42,955 | |||
Other |
330,916 | |||
Total expenses |
12,744,651 | |||
Less: Fees waived |
(4,684 | ) | ||
Net expenses |
12,739,967 | |||
Net investment income |
34,794,246 | |||
Realized and unrealized gain (loss): |
||||
Net realized gain (loss) from: |
||||
Investment securities |
(10,187,985 | ) | ||
Foreign currencies |
37,293 | |||
Forward foreign currency contracts |
4,151,228 | |||
(5,999,464 | ) | |||
Change in net unrealized appreciation (depreciation) of: |
||||
Investment securities |
(7,334,354 | ) | ||
Foreign currencies |
1,043,281 | |||
Forward foreign currency contracts |
16,445,553 | |||
10,154,480 | ||||
Net realized and unrealized gain |
4,155,016 | |||
Net increase in net assets resulting from operations |
$ | 38,949,262 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
24 Invesco Dynamic Credit Opportunities Fund
Statement of Changes in Net Assets
For the six months ended August 31, 2014 and the year ended February 28, 2014
(Unaudited)
August 31, 2014 |
February 28, 2014 |
|||||||
Operations: |
| |||||||
Net investment income |
$ | 34,794,246 | $ | 62,479,101 | ||||
Net realized gain (loss) |
(5,999,464 | ) | 10,175,170 | |||||
Change in net unrealized appreciation |
10,154,480 | 43,923,668 | ||||||
Net increase in net assets resulting from operations |
38,949,262 | 116,577,939 | ||||||
Distributions to common shareholders from net investment income |
(33,342,428 | ) | (66,683,443 | ) | ||||
Net increase in net assets resulting from operations applicable to common shares |
5,606,834 | 49,894,496 | ||||||
Increase from transactions in common shares of beneficial interest |
| 271,929 | ||||||
Net increase in net assets applicable to common shares |
5,606,834 | 50,166,425 | ||||||
Net assets applicable to common shares: |
| |||||||
Beginning of period |
1,024,187,247 | 974,020,822 | ||||||
End of period (includes undistributed net investment income of $(3,055,076) and $(4,506,894) respectively) |
$ | 1,029,794,081 | $ | 1,024,187,247 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
25 Invesco Dynamic Credit Opportunities Fund
Statement of Cash Flows
For the six months ended August 31, 2014
(Unaudited)
Cash provided by (used in) operating activities: |
||||
Net increase in net assets resulting from operations applicable to common shares |
$ | 38,949,262 | ||
Adjustments to reconcile net increase in net assets to net cash provided by (used in) operating activities: |
| |||
Purchases of investments |
(963,614,343 | ) | ||
Proceeds from sales of investments |
918,327,119 | |||
Net change in upfront commitment fees |
(245,333 | ) | ||
Net change in transactions in forward foreign currency contracts |
(16,445,553 | ) | ||
Amortization of loan fees |
806,305 | |||
Increase in receivables and other assets |
(1,976,151 | ) | ||
Accretion of discount on investment securities |
(4,373,516 | ) | ||
Increase in accrued expenses and other payables |
90,265 | |||
Net realized loss from investment securities |
10,187,985 | |||
Net change in unrealized depreciation on investment securities |
7,334,354 | |||
Net cash provided by (used in) operating activities |
(10,959,606 | ) | ||
Cash provided by (used in) financing activities: |
||||
Dividends paid to common shareholders from net investment income |
(33,361,993 | ) | ||
Net proceeds from borrowings |
28,000,000 | |||
Net cash provided by (used in) financing activities |
(5,361,993 | ) | ||
Net increase (decrease) in cash and cash equivalents |
(16,321,599 | ) | ||
Cash and cash equivalents at beginning of period |
44,139,834 | |||
Cash and cash equivalents at end of period |
$ | 27,818,235 | ||
Supplemental disclosure of cash flow information: |
||||
Cash paid during the period for interest, facilities and maintenance fees |
$ | 2,586,564 |
Notes to Financial Statements
August 31, 2014
(Unaudited)
NOTE 1Significant Accounting Policies
Invesco Dynamic Credit Opportunities Fund (the Fund) is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, closed-end management investment company.
The Funds investment objective is to seek a high level of current income, with a secondary objective of capital appreciation. The Fund seeks to achieve its objectives by investing primarily in a portfolio of interests in floating or variable senior loans to corporations, partnerships, and other entities which operate in a variety of industries and geographic regions. The Fund borrows money for investment purposes which may create the opportunity for enhanced return, but also should be considered a speculative technique and may increase the Funds volatility.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A. | Security Valuations Variable rate senior loan interests are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in similar groups of securities and other market data. |
Securities, including restricted securities, are valued according to the following policy. A security listed or traded on an exchange (except convertible securities) is valued at its last sales price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market (but not securities reported on the NASDAQ Stock Exchange) are valued based on the prices furnished by independent pricing services, in which case the securities may be considered fair valued, or by market makers. Each security reported on the NASDAQ Stock Exchange is valued at the NASDAQ Official Closing Price (NOCP) as of the close of the customary trading session on the valuation date or absent a NOCP, at the closing bid price.
Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. For purposes of determining net asset value per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (NYSE).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
26 Invesco Dynamic Credit Opportunities Fund
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
Foreign securities (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trusts officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a securitys fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain of the Funds investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuers assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. | Securities Transactions and Investment Income Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from the settlement date. Facility fees received may be amortized over the life of the loan. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Other income is comprised primarily of amendment fees which are recorded when received. Amendment fees are received in return for changes in the terms of the loan or note.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Funds net asset value and, accordingly, they reduce the Funds total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
C. | Country Determination For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuers securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
D. | Distributions Distributions from net investment income are declared and paid monthly to common shareholders. Distributions from net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. |
27 Invesco Dynamic Credit Opportunities Fund
E. | Federal Income Taxes The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the Internal Revenue Code), necessary to qualify as a regulated investment company and to distribute substantially all of the Funds taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Funds uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F. | Interest, Facilities and Maintenance Fees Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees, rating and bank agent fees and other expenses associated with lines of credit and Variable Rate Term Preferred Shares (VRTP Shares), and interest and administrative expenses related to establishing and maintaining the credit agreement. |
G. | Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) 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 revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
H. | Indemnifications Under the Trusts organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Funds servicing agreements, that contain a variety of indemnification clauses. The Funds maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
I. | Cash and Cash Equivalents For the purposes of the Statement of Cash Flows, the Fund defines Cash and Cash Equivalents as cash (including foreign currency), money market funds and other investments held in lieu of cash and excludes investments made with cash collateral received. |
J. | Securities Purchased on a When-Issued and Delayed Delivery Basis The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
K. | Foreign Currency Translations Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
L. | Forward Foreign Currency Contracts The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis at the rate prevailing in the currency exchange market at the time, or through forward foreign currency contracts to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to lock in the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to daily mark-to-market obligation for forward foreign currency contracts.
A forward foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
28 Invesco Dynamic Credit Opportunities Fund
M. | Swap Agreements The Fund may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (CDS) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between two parties (Counterparties). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Funds NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any. |
Interest rate, total return, index, and currency exchange rate swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or swapped between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a basket of securities representing a particular index.
A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the par value, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer par value or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Funds maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Funds exposure to the Counterparty.
Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.
An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.
Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by marking to market on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Funds ability to terminate existing swap agreements or to realize amounts to be received under such agreements.
The maximum potential amount of future payments (undiscounted) that the Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of August 31, 2014 for which the Fund is the seller of protection are disclosed in the Notes to Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
N. | Industry Concentration To the extent that the Fund is concentrated in securities of issuers in the banking and financial services industries, the Funds performance will depend to a greater extent on the overall condition of those industries. The value of these securities can be sensitive to changes in government regulation, interest rates and economic downturns in the U.S. and abroad. |
O. | Bank Loan Risk Disclosures Although the resale, or secondary market for floating rate loans has grown substantially over the past decade, both in overall size and number of market participants, there is no organized exchange or board of trade on which floating rate loans are traded. Instead, the secondary market for floating rate loans is a private, unregulated interdealer or interbank resale market. Such a market may therefore be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods. Similar to other asset classes, bank loan funds may be exposed to counterparty credit risk, or the risk than an entity with which the Fund has unsettled or open transactions may |
29 Invesco Dynamic Credit Opportunities Fund
fail to or be unable to perform on its commitments. The Fund manages counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. |
P. | Foreign Risk The Fund may invest in senior loans to borrowers that are organized or located in countries other than the United States. Investment in non-U.S. issuers involves special risks, including that non-U.S. issuers may be subject to less rigorous accounting and reporting requirements than U.S. issuers, less rigorous regulatory requirements, different legal systems and laws relating to creditors rights, the potential inability to enforce legal judgments and the potential for political, social and economic adversity. Investments by the Fund in non-U.S. dollar denominated investments will be subject to currency risk. The Fund also may hold non-U.S. dollar denominated senior loans or other securities received as part of a reorganization or restructuring. Trading in many foreign securities may be less liquid and more volatile than U.S. securities due to the size of the market or other factors. |
Q. | Other Risks The Fund may invest all or substantially of its assets in senior secured floating rate loans, senior secured debt securities or other securities rated below investment grade. These securities are generally considered to have speculative characteristics and are subject to greater risk of loss of principal and interest than higher rated securities. The value of lower quality debt securities and floating rate loans can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market or economic developments. |
The Fund invests in corporate loans from U.S. or non-U.S. companies (the Borrowers). The investment of the Fund in a corporate loan may take the form of participation interests or assignments. If the Fund purchases a participation interest from a syndicate of lenders (Lenders) or one of the participants in the syndicate (Participant), one or more of which administers the loan on behalf of all the Lenders (the Agent Bank), the Fund would be required to rely on the Lender that sold the participation interest not only for the enforcement of the Funds rights against the Borrower but also for the receipt and processing of payments due to the Fund under the corporate loans. As such, the Fund is subject to the credit risk of the Borrower and the Participant. Lenders and Participants interposed between the Fund and a Borrower, together with Agent Banks, are referred to as Intermediate Participants.
R. | Leverage Risk The Fund may utilize leverage to seek to enhance the yield of the Trust by borrowing or issuing preferred shares. There are risks associated with borrowing or issuing preferred shares in an effort to increase the yield and distributions on the common shares, including that the costs of the financial leverage may exceed the income from investments made with such leverage, the higher volatility of the net asset value of the common shares, and that fluctuations in the interest rates on the borrowing or dividend rates on preferred shares may affect the yield and distributions to the common shareholders. There can be no assurance that the Funds leverage strategy will be successful. |
NOTE 2Advisory Fees and Other Fees Paid to Affiliates
The Fund has entered into an investment advisory agreement with Invesco Advisers, Inc. (the Adviser or Invesco). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser monthly based on the annual rate of 1.25% of the Funds average daily managed assets. Managed assets for this purpose means the Fundss net assets, plus assets attributable to outstanding preferred shares and the amount of any borrowings incurred for the purpose of leverage (whether or not such borrowed amounts are reflected in the Funds financial statements for purposes of GAAP.)
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the Affiliated Sub-Advisers) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2016, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.
For the six months ended August 31, 2014, the Adviser waived advisory fees of $4,684.
The Fund has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the six months ended August 31, 2014, expenses incurred under this agreement are shown in the Statement of Operations as Administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (SSB) serves as custodian and fund accountant and provides certain administrative services to the Fund.
Certain officers and trustees of the Fund are officers and directors of Invesco.
NOTE 3Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investments assigned level:
Level 1 | Prices are determined using quoted prices in an active market for identical assets. |
Level 2 | Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. |
Level 3 | Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Funds own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
30 Invesco Dynamic Credit Opportunities Fund
The following is a summary of the tiered valuation input levels, as of August 31, 2014. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
For the three months ended August 31, 2014, there were transfers from Level 1 to Level 2 of $656,508 due to securities not trading in an active market, from Level 1 to Level 3 of $4,153,729 and from Level 2 to Level 3 of $45,587,345 due to third-party vendor quotations utilizing single market quotes and from Level 3 to Level 2 of $15,559,786 due to third-party vendor quotations utilizing more than one market quote.
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Variable Rate Senior Loan Interests |
$ | | $ | 1,020,081,704 | $ | 154,699,167 | $ | 1,174,780,871 | ||||||||
Notes |
| 260,442,844 | | 260,442,844 | ||||||||||||
Structured Products |
| 77,677,130 | | 77,677,130 | ||||||||||||
Equity Securities |
10,816,181 | 44,909,464 | 6,209,721 | 61,935,366 | ||||||||||||
10,816,181 | 1,403,111,142 | 160,908,888 | 1,574,836,211 | |||||||||||||
Forward Foreign Currency Contracts* |
| 12,497,459 | | 12,497,459 | ||||||||||||
Total Investments |
$ | 10,816,181 | $ | 1,415,608,601 | $ | 160,908,888 | $ | 1,587,333,670 |
* | Unrealized appreciation (depreciation). |
A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the reporting period in relation to net assets.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) during the six months ended August 31, 2014:
Beginning |
Purchases |
Sales |
Accrued |
Net realized |
Net Change in |
Transfers |
Transfers |
Ending |
||||||||||||||||||||||||||||
Variable Rate Senior Loan Interests |
$ | 83,725,277 | $ | 84,200,817 | $ | (29,294,606 | ) | $ | 144,353 | $ | (2,124,263 | ) | $ | 954,056 | $ | 35,914,533 | $ | (18,821,000 | ) | $ | 154,699,167 | |||||||||||||||
Notes |
1,865,968 | 386,162 | | | | | | (2,252,130 | ) | | ||||||||||||||||||||||||||
Equity Securities |
9,313,929 | 42,952 | | | (4,090,000 | ) | 6,626,956 | 60,043 | (5,744,159 | ) | 6,209,721 | |||||||||||||||||||||||||
Total |
$ | 94,905,174 | $ | 84,629,931 | $ | (29,294,606 | ) | $ | 144,353 | $ | (6,214,263 | ) | $ | 7,581,012 | $ | 35,974,576 | $ | (26,817,289 | ) | $ | 160,908,888 |
Securities determined to be Level 3 at the end of the reporting period were valued utilizing quotes from a third-party vendor pricing service. A significant change in third-party pricing information could result in a significantly lower or higher value in Level 3 investments.
NOTE 4Derivative Investments
Value of Derivative Investments at Period-End
The table below summarizes the value of the Funds derivative investments, detailed by primary risk exposure, held as of August 31, 2014:
Risk Exposure/Derivative Type
|
Value | |||||||
Assets | Liabilities | |||||||
Currency risk: |
||||||||
Forward foreign currency contracts(a) |
$ | 12,505,317 | $ | (7,858 | ) |
(a) | Values are disclosed on the Statement of Assets and Liabilities under the caption Forward foreign currency contracts outstanding. |
Effect of Derivative Investments for the six months ended August 31, 2014
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain on Statement of Operations |
||||
Forward Foreign Currency Contracts |
||||
Realized Gain: |
||||
Currency risk |
$ | 4,151,228 | ||
Change in Unrealized Appreciation: |
||||
Currency risk |
16,445,553 | |||
Total |
$ | 20,596,781 |
The table below summarizes the average notional value of forward foreign currency contracts outstanding during the period.
Forward Foreign Currency Contracts |
||||
Average notional value |
$ | 473,676,558 |
31 Invesco Dynamic Credit Opportunities Fund
Open Forward Foreign Currency Contracts at Period-End | ||||||||||||||||||||||||||
Settlement
|
Contract to | Notional Value |
Unrealized Appreciation (Depreciation) |
|||||||||||||||||||||||
Counterparty | Deliver | Receive | ||||||||||||||||||||||||
09/05/14 |
Goldman Sachs & Co. | EUR | 140,000,000 | USD | 188,713,840 | $ | 183,955,045 | $ | 4,758,795 | |||||||||||||||||
09/05/14 |
JPMorgan Chase Bank N.A. | EUR | 130,000,000 | USD | 175,303,440 | 170,815,399 | 4,488,041 | |||||||||||||||||||
09/05/14 |
Goldman Sachs & Co. | GBP | 59,500,000 | USD | 101,483,497 | 98,777,412 | 2,706,085 | |||||||||||||||||||
09/05/14 |
Goldman Sachs & Co. | GBP | 4,000,000 | USD | 6,632,640 | 6,640,498 | (7,858 | ) | ||||||||||||||||||
09/05/14 |
Goldman Sachs & Co. | SEK | 200,000,000 | USD | 29,167,598 | 28,615,202 | 552,396 | |||||||||||||||||||
Total open forward foreign currency contracts Currency Risk |
|
$ | 12,497,459 |
Currency Abbreviations:
EUR | Euro | |
GBP | British Pound Sterling | |
SEK | Swedish Krona | |
USD | U.S. Dollar |
Offsetting Assets and Liabilities
Accounting Standards Update (ASU) No. 2011-11, Disclosures about Offsetting Assets and Liabilities, which was subsequently clarified in Financial Accounting Standards Board ASU 2013-01 Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities is intended to enhance disclosures about financial instruments and derivative instruments that are subject to offsetting arrangements on the Statement of Assets and Liabilities and to enable investors to better understand the effect of those arrangements on its financial position. In order for an arrangement to be eligible for netting, the Fund must have a basis to conclude that such netting arrangements are legally enforceable. The Fund enters into netting agreements and collateral agreements in an attempt to reduce the Funds Counterparty credit risk by providing for a single net settlement with a Counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement.
There were no derivative instruments subject to a netting agreement for which the Fund is not currently netting. The following tables present derivative instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements as of August 31, 2014.
Assets: | ||||||||||||||||||||||||
Gross amounts presented in Statement of Assets & Liabilities |
Gross amounts offset in Statement of Assets & Liabilities |
Net amounts of assets presented in the Statement of Assets & Liabilities |
Collateral Received | |||||||||||||||||||||
Counterparty | Financial Instruments |
Cash | Net Amount |
|||||||||||||||||||||
Goldman Sachs & Co. |
$ | 8,017,276 | $ | (7,858 | ) | $ | 8,009,418 | $ | | $ | | $ | 8,009,418 | |||||||||||
JPMorgan Chase Bank N.A. |
4,488,041 | | 4,488,041 | | | 4,488,041 | ||||||||||||||||||
Total |
$ | 12,505,317 | $ | (7,858 | ) | $ | 12,497,459 | $ | | $ | | $ | 12,497,459 | |||||||||||
Liabilities: | ||||||||||||||||||||||||
Gross amounts presented in Statement of Assets & Liabilities |
Gross amounts offset in Statement of Assets & Liabilities |
Net amounts of liabilities presented in the Statement of Assets & Liabilities |
Collateral Pledged | Net Amount |
||||||||||||||||||||
Counterparty | Financial Instruments |
Cash | ||||||||||||||||||||||
Goldman Sachs & Co. |
$ | 7,858 | $ | (7,858 | ) | $ | | $ | | $ | | $ | |
NOTE 5Investments in Other Affiliates
The 1940 Act defines affiliates as those issuances in which a fund holds 5% or more of the outstanding voting securities. The Fund has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The following is a summary of the investments in other affiliates for the six months ended August 31, 2014.
Value 02/28/14 |
Purchases at Cost |
Proceeds from Sales |
Change in Unrealized Appreciation (Depreciation) |
Realized Gain (Loss) |
Value 08/31/14 |
Interest/ Dividend Income |
||||||||||||||||||||||
Targus International Inc. Notes |
$ | 1,865,968 | $ | 386,162 | $ | | $ | | $ | | $ | 2,252,130 | $ | 112,607 | ||||||||||||||
Targus International Inc. Common Shares |
759,566 | | | (40,568 | ) | | 718,998 | | ||||||||||||||||||||
Total |
$ | 2,625,534 | $ | 386,162 | $ | | $ | (40,568 | ) | $ | | $ | 2,971,128 | $ | 112,607 |
NOTE 6Trustees and Officers Fees and Benefits
Trustees and Officers Fees and Benefits include amounts accrued by the Trust to pay remuneration to certain Trustees and Officers of the Trust. Effective August 29, 2014, Trustees will have the option to defer compensation payable by the Trust, and Trustees and Officers Fees and Benefits will include amounts accrued by the Trust to fund such deferred compensation amounts.
During the six months ended August 31, 2014, the Trust did not pay any legal fees for services rendered by Skadden, Arps, Slate, Meagher & Flom LLP as counsel to the Trust. A trustee of the Trust is Of Counsel of Skadden, Arps, Slate, Meagher & Flom LLP. Effective August 29, 2014, Skadden, Arps, Slate, Meagher & Flom LLP is no longer counsel to the Trust.
32 Invesco Dynamic Credit Opportunities Fund
NOTE 7Cash Balances and Borrowings
Effective August 27, 2014, the Fund has entered into a $400 million revolving credit and security agreement which will expire on August 25, 2015. The revolving credit and security agreement is secured by the assets of the Fund. Prior to August 27, 2014, the revolving credit and security agreement was $350 million.
During the six months ended August 31, 2014, the average daily balance of borrowing under the revolving credit and security agreement was $308,010,811 with a weighted interest rate of 1.08%. Expenses under the credit and security agreement are shown in the Statement of Operations as Interest, facilities and maintenance fees.
Additionally, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8Unfunded Loan Commitments
Pursuant to the terms of certain Senior Loan agreements, the Fund held the following unfunded loan commitments as of August 31, 2014. The Fund intends to reserve against such contingent obligations by designating cash, liquid securities and liquid Senior Loans as a reserve.
Borrower | Type | Principal Amount* |
Value | |||||||
Davids Bridal, Inc. |
Asset-Backed Revolver Loan |
$1,848,394 | $ 1,719,006 | |||||||
Delta Air Lines, Inc. |
Revolver Loan |
1,032,274 | 6,861,525 | |||||||
Delta Air Lines, Inc. |
Revolver Loan |
7,019,463 | 1,006,467 | |||||||
Dream Secured BondCo AB |
Revolver Loan |
EUR 3,097,371 | 3,988,395 | |||||||
Equinox Holdings Inc. |
Revolver Loan |
837,825 | 777,082 | |||||||
Getty Images, Inc. |
Revolver Loan |
2,975,696 | 3,737,130 | |||||||
H.J. Heinz Co. |
Revolver Loan |
6,837,334 | 6,780,311 | |||||||
Lake at Las Vegas Joint Venture, LLC |
PIK Exit Revolver Loan |
40,531 | 12,261 | |||||||
Surgical Care Affiliates, LLC |
Revolver Loan |
6,250,000 | 6,206,563 | |||||||
Tunstall Group Finance Ltd. |
Acquisition Facility Loan |
GBP 4,000,000 | 4,486,623 | |||||||
Tyrol Acquisition 2 SAS |
Revolver Loan |
EUR 1,937,856 | 2,390,352 | |||||||
Vitalia Holdco S.a r.l. |
Revolver Loan | EUR 2,000,000 | 2,612,973 | |||||||
$40,578,688 |
* | Principal amounts are denominated in U.S. Dollars unless otherwise noted. |
Currency Abbreviations:
EUR Euro
GBP British Pound Sterling
NOTE 9Tax Information
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds fiscal year-end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
33 Invesco Dynamic Credit Opportunities Fund
The Fund had a capital loss carryforward as of February 28, 2014, which expires as follows:
Capital Loss Carryforward* | ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
February 29, 2016 |
$ | 431,578 | $ | | $ | 431,578 | ||||||
February 28, 2017 |
76,783,001 | | 76,783,001 | |||||||||
February 28, 2018 |
230,817,698 | | 230,817,698 | |||||||||
February 28, 2019 |
2,612,706 | | 2,612,706 | |||||||||
Not subject to expiration |
| 73,094,677 | 73,094,677 | |||||||||
$ | 310,644,983 | $ | 73,094,677 | $ | 383,739,660 |
* | Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 10Investment Securities
The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended August 31, 2014 was $998,320,953 and $922,240,268, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.
Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis | ||||
Aggregate unrealized appreciation of investment securities |
$ | 59,581,948 | ||
Aggregate unrealized (depreciation) of investment securities |
(65,011,847 | ) | ||
Net unrealized appreciation (depreciation) of investment securities |
$ | (5,429,899 | ) |
Cost of investments for tax purposes is $1,580,266,110.
NOTE 11Common Shares of Beneficial Interest
Transactions in common shares of beneficial interest were as follows:
Six months ended August 31, 2014 |
Year ended February 28, 2014 |
|||||||
Beginning shares |
74,094,284 | 74,073,880 | ||||||
Shares issued through dividend reinvestment |
| 20,404 | ||||||
Ending shares |
74,094,284 | 74,094,284 |
The Fund may, when appropriate, purchase shares in the open market or in privately negotiated transactions at a price not above market value or net asset value, whichever is lower at the time of purchase.
NOTE 12Variable Rate Term Preferred Shares
On August 29, 2013, the Fund issued in the aggregate 1,250 VRTP Shares of the following series: (i) 2016/9-VTA C-1 (the C-1 Series), (ii) 2016/9-VTA C-2 (the C-2 Series), (iii) 2016/9-VTA C-3 (the C-3 Series), (iv) 2016/9-VTA C-4 (the C-4 Series) and (v) 2016/9-VTA L-1 (the L-1 Series), each with a liquidation preference of $100,000 per share, pursuant to an offering exempt from registration under the 1933 Act. Proceeds from the issuance of VRTP Shares on August 24, 2013 were used to repay a portion of the Funds outstanding borrowings under the existing revolving credit agreement. VRTP Shares are a floating-rate form of preferred shares with a mandatory redemption date. The Fund is required to redeem all outstanding VRTP Shares on September 1, 2017, unless earlier redeemed, repurchased or extended. VRTP Shares are subject to optional and mandatory redemption in certain circumstances. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. On or prior to the redemption date, the Fund will be required to segregate assets having a value equal to 110% of the redemption amount.
The Fund incurred costs in connection with the issuance of the VRTP Shares. These costs were recorded as a deferred charge and are being amortized over the 3 year life of the VRTP Shares. Amortization of these costs is included in Interest, facilities and maintenance fees on the Statement of Operations and the unamortized balance is included in Deferred offering costs on the Statement of Assets and Liabilities.
34 Invesco Dynamic Credit Opportunities Fund
Dividends paid on the VRTP Shares (which are treated as interest expense for financial reporting purposes) are declared daily and paid monthly. The rate for dividends was equal to the sum of an applicable base rate (defined below) plus a ratings spread of 1.20%-5.20%, which is based on the long term rating assigned to the VRTP Shares by Moodys and Fitch.
Series | Applicable Base Rate | |
C-1 Series |
Equal to the weighted average interest rate paid or payable as interest on commercial paper notes issued by CHARTA, LLC to purchase shares of the C-1 Series | |
C-2 Series |
Equal to the weighted average interest rate paid or payable as interest on commercial paper notes issued by CAFCO, LLC to purchase shares of the C-2 Series | |
C-3 Series |
Equal to the weighted average interest rate paid or payable as interest on commercial paper notes issued by CIESCO, LLC to purchase shares of the C-3 Series | |
C-4 Series |
Equal to the weighted average interest rate paid or payable as interest on commercial paper notes issued by CRC Funding, LLC to purchase shares of the C-4 Series | |
L-1 Series |
30 day London Interbank Offered Rate by Citibank in London, England |
The average aggregate liquidation preference outstanding and the average annualized dividend rate of the VRTP Shares during the six months ended August 31, 2014 were $125,000,000 and 1.41%, respectively.
The Fund is subject to certain restrictions relating to the VRTP Shares, such as maintaining certain asset coverage and leverage ratio requirements. Failure to comply with these restrictions could preclude the Fund from declaring any distributions to common shareholders or purchasing common shares and/or could trigger the mandatory redemption of VRTP Shares at liquidation preference.
The liquidation preference of VRTP Shares, which are considered debt of the Fund for financial reporting purposes, is recorded as a liability under the caption Variable rate term preferred shares on the Statement of Assets and Liabilities. Unpaid dividends on VRTP Shares are recognized as Accrued interest expense on the Statement of Assets and Liabilities. Dividends paid on VRTP Shares are recognized as a component of Interest, facilities and maintenance fees on the Statement of Operations.
NOTE 13Senior Loan Participation Commitments
The Fund invests in participations, assignments, or acts as a party to the primary lending syndicate of a Senior Loan interest to corporations, partnerships, and other entities. When the Fund purchases a participation of a Senior Loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation, but not with the borrower directly. As such, the Fund assumes the credit risk of the borrower, selling participant or other persons interpositioned between the Fund and the borrower.
At the six months ended August 31, 2014, the following sets forth the selling participants with respect to interest in Senior Loans purchased by the Fund on a participation basis.
Selling Participant | Principal Amount* |
Value | ||||||
Barclays Bank PLC |
$2,975,696 | $ 3,737,130 | ||||||
Goldman Sachs Lending Partners LLC |
8,685,727 | 8,499,317 | ||||||
Merrill Lynch Capital Services, Inc. |
EUR | 2,018,731 | 2,490,112 | |||||
Total |
$14,726,559 |
* | Principal amounts are denominated in U.S. Dollars unless otherwise noted. |
Currency Abbreviations:
EUR | Euro |
NOTE 14Dividends
The Fund declared the following dividends from net investment income subsequent to August 31, 2014:
Declaration Date | Amount per Share | Record Date | Payable Date | |||||||||
September 2, 2014 |
$ | 0.075 | September 15, 2014 | September 30, 2014 | ||||||||
October 1, 2014 |
$ | 0.075 | October 16, 2014 | October 31, 2014 |
35 Invesco Dynamic Credit Opportunities Fund
NOTE 15Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
Six months ended
|
Years ended February 28, | Year ended
|
Seven months ended
|
Years ended July 31, | ||||||||||||||||||||||||
2014 | 2013 | 2010 | 2009 | |||||||||||||||||||||||||
Net asset value per common share, beginning of period |
$ | 13.82 | $ | 13.15 | $ | 12.37 | $ | 13.29 | $ | 12.53 | $ | 11.00 | $ | 15.69 | ||||||||||||||
Net investment income(a) |
0.47 | 0.84 | 0.91 | 0.84 | 0.43 | 0.80 | 1.07 | |||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) |
0.06 | 0.73 | 0.77 | (0.88 | ) | 0.93 | 1.79 | (4.41 | ) | |||||||||||||||||||
Total from investment operations |
0.53 | 1.57 | 1.68 | (0.04 | ) | 1.36 | 2.59 | (3.34 | ) | |||||||||||||||||||
Dividends from net investment income |
(0.45 | ) | (0.90 | ) | (0.90 | ) | (0.88 | ) | (0.60 | ) | (1.06 | ) | (1.35 | ) | ||||||||||||||
Net asset value per common share, end of period |
$ | 13.90 | $ | 13.82 | $ | 13.15 | $ | 12.37 | $ | 13.29 | $ | 12.53 | $ | 11.00 | ||||||||||||||
Market value per common share, end of period |
$ | 12.63 | $ | 12.90 | $ | 13.29 | $ | 11.62 | $ | 12.83 | $ | 11.94 | $ | 10.00 | ||||||||||||||
Total return at net asset value(b) |
4.14 | % | 12.65 | % | 14.13 | % | 0.35 | % | 11.30 | % | ||||||||||||||||||
Total return at market value(c) |
1.37 | % | 4.04 | % | 23.00 | % | (2.36 | )% | 12.79 | % | 30.65 | % | (11.84 | )% | ||||||||||||||
Net assets applicable to common shares, end of period (000s omitted) |
$ | 1,029,794 | $ | 1,024,187 | $ | 974,021 | $ | 916,236 | $ | 983,818 | $ | 927,104 | $ | 814,401 | ||||||||||||||
Portfolio turnover rate(d)(e) |
61 | % | 121 | % | 129 | % | 132 | % | 88 | % | 56 | % | 36 | % | ||||||||||||||
Ratios/supplement data based on average net assets applicable to common shares outstanding: |
|
|||||||||||||||||||||||||||
Ratio of expenses |
2.45 | %(f)(j) | 2.25 | %(j) | 2.09 | %(j) | 2.21 | % | 2.22 | %(g) | 2.29 | % | 3.76 | % | ||||||||||||||
Ratio of expenses excluding interest, facilities and maintenance fees |
1.93 | %(f) | 1.82 | % | 1.72 | % | 1.86 | % | 1.71 | %(g) | 1.74 | % | 2.97 | % | ||||||||||||||
Ratio of net investment income |
6.70 | %(f) | 6.28 | % | 7.15 | % | 6.73 | % | 5.72 | %(g) | 6.56 | % | 10.42 | % | ||||||||||||||
Senior indebtedness: |
||||||||||||||||||||||||||||
Total amount of preferred shares outstanding (000s omitted) |
$ | 125,000 | $ | 125,000 | ||||||||||||||||||||||||
Total borrowings (000s omitted) |
$ | 359,000 | $ | 331,000 | $ | 240,000 | $ | 232,000 | $ | 281,000 | $ | 252,500 | $ | 214,000 | ||||||||||||||
Asset coverage per $1,000 unit of senior |
$ | 4,217 | $ | 4,472 | $ | 5,058 | $ | 4,949 | $ | 4,501 | $ | 4,672 | $ | 4,806 | ||||||||||||||
Asset coverage per preferred share(i) |
$ | 923,835 | $ | 919,350 | ||||||||||||||||||||||||
Liquidating preference per preferred share |
$ | 100,000 | $ | 100,000 |
(a) | Calculated using average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Not annualized for periods less than one year, if applicable. |
(c) | Total return assumes an investment at market price at the beginning of the period indicated, reinvestment of all distributions for the period in accordance with the Funds dividend reinvestment plan, and sale of all shares at the closing common share market price at the end of the period indicated. Not annualized for periods less than one year, if applicable. |
(d) | Calculation includes the proceeds from principal repayments and sales of variable rate senior loan interests. |
(e) | Portfolio turnover is not annualized for periods less than one year, if applicable. |
(f) | Ratios are annualized and based on average net assets (000s omitted) of $1,029,863. |
(g) | Annualized. |
(h) | Calculated by subtracting the Funds total liabilities (not including the preferred shares and borrowings) from the Funds total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness. |
(i) | Calculated by subtracting the Funds total liabilities (not including the preferred shares) from the Funds total assets and dividing by the total number of preferred shares outstanding. |
(j) | Includes fee waivers which were less than $0.005 per share. |
36 Invesco Dynamic Credit Opportunities Fund
NOTE 16Legal Proceedings
Terms used in the Legal Proceedings Note are defined terms solely for the purpose of this note.
Pending Litigation and Regulatory Inquiries
The Fund is named as a defendant in an adversary proceeding in the Bankruptcy Court of the Southern District of Florida. The complaint was filed on July 14, 2008 by the Official Committee of Unsecured Creditors of TOUSA, Inc., on behalf of certain subsidiaries of TOUSA, Inc. (the Conveying Subsidiaries), and filed as amended on October 17, 2008. The Committee made allegations against the Fund in two separate capacities: as Transeastern Lenders and as First Lienholders (collectively, the Lenders). The Transeastern Lenders loaned money to form a joint venture between TOUSA, Inc. and Falcone/Ritchie LLC. TOUSA, Inc. later repaid the loans from the Transeastern Lenders as part of a global settlement of claims against it. The repayment was financed using proceeds of new loans (the New Loans), for which the Conveying Subsidiaries conveyed first and second priority liens on their assets to two groups of lienholders (the First and Second Lienholders, collectively New Lenders). The Conveying Subsidiaries were not obligated on the original debt to the Transeastern Lenders. The Committee alleged, inter alia, that both the repayment to the Transeastern Lenders and the grant of liens to the First and Second Lienholders should be avoided as fraudulent transfers under the bankruptcy laws. More specifically, the Committee alleged: (1) that the Conveying Subsidiaries transfer of liens to secure the New Loans was a fraudulent transfer under 11 U.S.C. § 548 because the Conveying Subsidiaries were insolvent at the time of the transfer and did not receive reasonably equivalent value for the liens; and (2) that the Transeastern Lenders were, under 11 U.S.C. § 550, entities for whose benefit the liens were fraudulently transferred to the New Lenders. The case was tried in 2009 and on October 13, 2009, the Bankruptcy Court rendered a Final Judgment against the Lenders, which was later amended on October 30, 2009, requiring the Lenders to post bonds equal to 110% of the damages and disgorgement ordered against them. The Transeastern Lenders and First Lienholders separately appealed the decision to the District Court for the Southern District of Florida. On February 11, 2011, the District Court, issued an order in the Transeastern Lenders appeal that: 1) quashed the Bankruptcy Courts Order as it relates to the liability of the Transeastern Lenders; 2) made null and void the Bankruptcy Courts imposition of remedies as to the Transeastern Lenders; 3) discharged all bonds deposited by Transeastern Lenders, unless any further appeals are filed, in which case the bonds would remain in effect pending resolution of appeals; 4) dismissed as moot additional appeal proceedings of the Transeastern Lenders that were contingent upon the District Courts decision concerning liability; and 5) closed all District Court appeal proceedings concerning the Transeastern Lenders. The Committee appealed to the Eleventh Circuit Court of Appeals. In a decision filed on May 15, 2012, the Eleventh Circuit reversed the District Courts opinion, affirmed the liability findings of the Bankruptcy Court against the Transeastern Lenders, and remanded the case to the District Court to review the remedies ordered by the Bankruptcy Court. The appeal of the Transeastern Lenders is currently pending before the District Court. The First Lienholders, having paid its obligations under the bankruptcy plan, have been fully and finally released pursuant to a court order dated August 30, 2013.
Management of Invesco and the Fund believe that the outcome of the proceedings described above will have no material adverse effect on the Fund or on the ability of Invesco to provide ongoing services to the Fund.
37 Invesco Dynamic Credit Opportunities Fund
Approval of Investment Advisory and Sub-Advisory Contracts
38 Invesco Dynamic Credit Opportunities Fund |
39 Invesco Dynamic Credit Opportunities Fund |
Proxy Results
An Annual Meeting (Meeting) of Shareholders of Invesco Dynamic Credit Opportunities Fund (the Fund) was held on August 29, 2014. The Meeting was held for the following purposes:
(1) | Elect four Class I Trustees, three by the holders of Common Shares and the holders of Preferred Shares voting together as a single class, and one by the holders of Preferred Shares, voting separately, each of whom will serve until the later of the Funds annual meeting of shareholders in 2016 or until a successor shall have been duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against |
Votes Abstain |
|||||||||||
(1) | Albert R. Dowden | 61,967,460 | 678,628 | 664,416 | ||||||||||
Dr. Prema Mathai-Davis | 61,950,069 | 706,562 | 653,873 | |||||||||||
Raymond Stickel, Jr. | 61,972,516 | 649,166 | 688,822 | |||||||||||
Hugo F. Sonnenschein(P) | 1,250 | 0 | 0 |
(2) | Elect five Class II Trustees, four by the holders of Common Shares and the holders of Preferred Shares voting together as a single class, and one by the holders of Preferred Shares, voting separately, each of whom will serve until the later of the Funds annual meeting of shareholders in 2017 or until a successor shall have been duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against |
Votes Abstain |
|||||||||||
(2) | David C. Arch | 61,962,860 | 658,632 | 689,012 | ||||||||||
Dr. Larry Soll | 61,911,783 | 719,804 | 678,917 | |||||||||||
Philip A. Taylor | 61,984,173 | 624,910 | 701,421 | |||||||||||
Suzanne H. Woolsey | 61,565,822 | 1,095,878 | 648,804 | |||||||||||
Frank S. Bayley(P) | 1,250 | 0 | 0 |
(3) | Elect five Class III Trustees by the holders of Common Shares and the holders of Preferred Shares voting together as a single class, each of whom will serve until the later of the Funds annual meeting of shareholders in 2015 or until a successor shall have been duly elected and qualified. |
The results of the voting on the above matter were as follows:
Matter | Votes For | Votes Against |
Votes Abstain |
|||||||||||
(3) | James T. Bunch | 61,934,308 | 696,545 | 679,651 | ||||||||||
Bruce L. Crockett | 61,945,981 | 691,972 | 672,551 | |||||||||||
Rodney F. Dammeyer | 61,947,170 | 697,863 | 665,471 | |||||||||||
Jack M. Fields | 62,032,171 | 603,159 | 675,174 | |||||||||||
Martin L. Flanagan | 62,092,586 | 591,127 | 626,791 |
(P) | Election of Trustee by preferred shareholders only. |
40 Invesco Dynamic Credit Opportunities Fund
Correspondence information
Send general correspondence to Computershare Trust Company, N.A., P.O. Box 30170, College Station, TX 77842-3170.
Fund holdings and proxy voting information
The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter ends. For the second and fourth quarters, the lists appear in the Funds semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/us. Shareholders can also look up the Funds Forms N-Q on the SEC website at sec.gov. Copies of the Funds Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file number for the Fund is shown below.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 341 2929 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov. Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. In addition, this information is available on the SEC website at sec.gov. |
SEC file number: 811-22043 | VK-CE-DCO-SAR-1 |
ITEM 2. | CODE OF ETHICS. |
There were no amendments to the Code of Ethics (the Code) that applies to the Registrants Principal Executive Officer (PEO) and Principal Financial Officer (PFO) during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
ITEM 6. | SCHEDULE OF INVESTMENTS. |
Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
None.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | As of August 20, 2014, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (PEO) and Principal Financial Officer (PFO), to assess the effectiveness of the Registrants disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the Act), as amended. Based on that evaluation, the Registrants officers, including the PEO and PFO, concluded that, as of August 20, 2014, the Registrants disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is |
recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure. |
(b) | There have been no changes in the Registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrants internal control over financial reporting. |
ITEM 12. | EXHIBITS. |
12(a) (1) | Not applicable. |
12(a) (2) | Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. |
12(a) (3) | Not applicable. |
12(b) | Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Invesco Dynamic Credit Opportunities Fund
By: | /s/ Philip A. Taylor | |
Philip A. Taylor | ||
Principal Executive Officer | ||
Date: | November 7, 2014 |
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Philip A. Taylor | |
Philip A. Taylor | ||
Principal Executive Officer | ||
Date: | November 7, 2014 |
By: | /s/ Sheri Morris | |
Sheri Morris | ||
Principal Financial Officer | ||
Date: | November 7, 2014 |
EXHIBIT INDEX
12(a) (1) | Not applicable. | |
12(a) (2) | Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. | |
12(a) (3) | Not applicable. | |
12(b) | Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940. |