OMB APPROVAL | ||||
OMB Number: | 3235-0570 | |||
Expires: | January 31, 2017 | |||
Estimated average burden | ||||
hours per response: | 20.6 |
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) |
Sheri Morris 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: 8/31/16
Item 1. Report to Stockholders.
| ||||
![]() |
Semiannual Report to Shareholders
|
August 31, 2016 | ||
| ||||
Invesco Dynamic Credit Opportunities Fund | ||||
NYSE: VTA |
| ||||
2 | Letters to Shareholders | |||
3 | Fund Performance | |||
3 | Share Repurchase Program Notice | |||
4 | Dividend Reinvestment Plan | |||
5 | Schedule of Investments | |||
23 | Financial Statements | |||
26 | Notes to Financial Statements | |||
36 | Financial Highlights | |||
38 | Approval of Investment Advisory and Sub-Advisory Contracts | |||
40 | Proxy Results | |||
Unless otherwise noted, all data provided by Invesco. | ||||
| ||||
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
Letters to Shareholders
Bruce Crockett |
Dear Fellow Shareholders: As independent chair of the Invesco Funds Board, I can assure you that the members of the Board are strong advocates for the interests of investors in Invescos mutual funds. We work hard to represent your interests through oversight of the quality of the investment management services your funds receive and other matters important to your investment. This includes but is not limited to: monitoring how the portfolio management teams of the Invesco funds are performing in light of changing economic and market conditions; assessing each portfolio management teams investment performance within the context of the funds investment strategy; and monitoring for potential conflicts of interests that may impact the nature of the services that your funds receive. We believe one of the most important services we provide our fund shareholders is the annual review of the funds advisory and sub-advisory contracts with Invesco Advisers and its |
affiliates. This review is required by the Investment Company Act of 1940 and 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 received from Invesco and a variety of independent sources, such as performance and fee data prepared by Lipper Inc., an independent, third-party firm widely recognized as a leader in its field. We also meet with our independent legal counsel and other independent advisers to review and help us assess the information that we have received. Our goal is to assure that you receive quality investment management services for a reasonable fee.
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 complete list of its investments as of the close of the reporting period. The investment professionals at Invesco invest with high conviction and a long-term perspective. At Invesco, investing with high conviction means trusting our research-driven insights, having confidence in our investment processes and building portfolios that reflect our beliefs. Our goal is to look past market noise in an effort to find attractive opportunities at attractive prices. Of course, investing with high conviction cant guarantee a profit or ensure investment success; no investment strategy or risk analysis can. To learn more about how we invest with high conviction, visit invesco.com/HighConviction. Our website, invesco.com/us, offers timely information about your Fund. Also, you can obtain updates to help you stay informed about the markets, the economy and investing by |
connecting with Invesco on Twitter, LinkedIn or Facebook. Additionally, you can access our blog at blog.invesco.us.com. Our goal is to provide you the information you want, when and where you want it.
Finally, Im pleased to share with you Invescos commitment to both the Principles for Responsible Investment and to considering environmental, social and governance issues in our robust investment process. I invite you to learn more at invesco.com/esg.
For questions about your account, contact an Invesco client services representative at 800 341 2929. For
Invesco-related questions or comments, please email me directly at phil@invesco.com.
All of us at Invesco look forward to serving your investment management needs. Thank you for investing with us.
Sincerely,
Philip Taylor
Senior Managing Director, Invesco Ltd.
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, 2016
(Unaudited)
Interest Rate |
Maturity Date |
Principal Amount (000)* |
Value | |||||||||||||
Variable Rate Senior Loan Interests101.17%(a)(b) |
||||||||||||||||
Aerospace & Defense2.70% | ||||||||||||||||
Abacus Innovations Corp., Term Loan B |
3.27 | % | 08/16/2023 | $ | 4,394 | $ | 4,426,660 | |||||||||
BE Aerospace, Inc., Term Loan |
3.75 | % | 12/16/2021 | 414 | 418,723 | |||||||||||
CAMP International Holding Co., First Lien Term Loan(c) |
| 08/18/2023 | 2,402 | 2,393,832 | ||||||||||||
Consolidated Aerospace Manufacturing, LLC, First Lien Term Loan |
4.75 | % | 08/11/2022 | 1,716 | 1,612,765 | |||||||||||
IAP Worldwide Services, |
||||||||||||||||
Revolver Loan(d) |
0.00 | % | 07/18/2018 | 1,156 | 1,132,412 | |||||||||||
Revolver Loan |
7.00 | % | 07/18/2018 | 289 | 283,103 | |||||||||||
Second Lien Term Loan (Acquired 07/22/2014-08/18/2014; Cost $1,575,378) |
8.00 | % | 07/18/2019 | 1,673 | 1,522,458 | |||||||||||
PRV Aerospace, LLC, Term Loan |
7.00 | % | 05/09/2018 | 2,315 | 2,199,344 | |||||||||||
TransDigm Inc., |
||||||||||||||||
Delayed Draw Term Loan F |
3.75 | % | 06/09/2023 | 2,416 | 2,410,693 | |||||||||||
Term Loan E |
3.75 | % | 05/16/2022 | 6,580 | 6,577,693 | |||||||||||
Term Loan F |
3.75 | % | 06/09/2023 | 2,684 | 2,678,547 | |||||||||||
25,656,230 | ||||||||||||||||
Air Transport0.48% | ||||||||||||||||
Delta Air Lines, Inc., Revolver Loan(d) |
0.00 | % | 10/18/2017 | 1,032 | 1,016,790 | |||||||||||
Gol LuxCo S.A. (Luxembourg), First Lien Term Loan (Acquired 08/19/2015; Cost $3,459,821) |
6.50 | % | 08/31/2020 | 3,488 | 3,496,564 | |||||||||||
4,513,354 | ||||||||||||||||
Automotive2.20% | ||||||||||||||||
Autoparts Holdings Ltd., First Lien Term Loan |
7.00 | % | 07/29/2017 | 776 | 736,827 | |||||||||||
BBB Industries, LLC, Second Lien Term Loan |
9.75 | % | 11/03/2022 | 610 | 558,274 | |||||||||||
CH Hold Corp., Term Loan A (Acquired 02/25/2016; Cost $2,188,861) |
6.25 | % | 11/20/2019 | 2,208 | 2,205,605 | |||||||||||
FCA US LLC, Term Loan B |
3.50 | % | 05/24/2017 | 702 | 703,908 | |||||||||||
Federal-Mogul Corp., |
||||||||||||||||
Term Loan B |
4.00 | % | 04/15/2018 | 1,004 | 991,414 | |||||||||||
Term Loan C |
4.75 | % | 04/15/2021 | 12,484 | 11,958,681 | |||||||||||
Goodyear Tire & Rubber Co., Second Lien Term Loan |
3.75 | % | 04/30/2019 | 50 | 50,231 | |||||||||||
Transtar Holding Co., |
||||||||||||||||
First Lien Term Loan(e) |
0.00 | % | 10/09/2018 | 3,446 | 2,765,380 | |||||||||||
Second Lien Term Loan(e) |
0.00 | % | 10/09/2019 | 1,010 | 158,228 | |||||||||||
Wand Intermediate I L.P., Second Lien Term Loan |
8.25 | % | 09/17/2022 | 818 | 763,156 | |||||||||||
20,891,704 | ||||||||||||||||
Beverage & Tobacco0.08% | ||||||||||||||||
Winebow Holdings, Inc., Second Lien Term Loan (Acquired 06/27/2014; Cost $822,204) |
8.50 | % | 12/31/2021 | 827 | 735,693 | |||||||||||
Building & Development1.05% | ||||||||||||||||
Beacon Roofing Supply, Inc., Term Loan B |
4.00 | % | 10/01/2022 | 1,127 | 1,132,114 | |||||||||||
Beazer Homes USA, Inc., Term Loan |
6.41 | % | 03/11/2018 | 1,364 | 1,356,893 | |||||||||||
Capital Automotive L.P., Second Lien Term Loan |
6.00 | % | 04/30/2020 | 1,554 | 1,567,793 | |||||||||||
Lake at Las Vegas Joint Venture, LLC, |
||||||||||||||||
Exit Revolver Loan (Acquired 07/16/2012; Cost $57,342)(d) |
0.00 | % | 02/28/2017 | 57 | 37,273 | |||||||||||
PIK Exit Revolver Loan (Acquired 07/15/2010-03/31/2016; Cost $774,481)(f) |
5.00 | % | 02/28/2017 | 717 | 466,140 | |||||||||||
Mannington Mills, Inc., Term Loan |
4.75 | % | 10/01/2021 | 1,148 | 1,147,503 | |||||||||||
Mueller Water Products, Inc., Term Loan B |
4.00 | % | 11/25/2021 | 61 | 61,758 | |||||||||||
Norrmalm 3 AB (Sweden), Term Loan B-1 |
4.00 | % | 05/31/2021 | EUR | 333 | 375,012 |
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 | |||||||||||||
Building & Development(continued) | ||||||||||||||||
Re/Max International, Inc., Term Loan |
4.00 | % | 07/31/2020 | $ | 1,216 | $ | 1,216,948 | |||||||||
Realogy Group LLC, Term Loan B |
3.75 | % | 07/20/2022 | 477 | 480,697 | |||||||||||
Stardust Finance Holdings, Inc., Term Loan |
6.50 | % | 03/13/2022 | 1,417 | 1,410,263 | |||||||||||
Tamarack Resort LLC, |
||||||||||||||||
PIK Term Loan A (Acquired 03/07/2014-06/30/2016; Cost $242,173)(f) |
12.00 | % | 03/07/2018 | 242 | 33,824 | |||||||||||
PIK Term Loan B (Acquired 03/07/2014-06/30/2016; Cost $105,819)(f) |
6.50 | % | 02/28/2019 | 176 | 0 | |||||||||||
WireCo WorldGroup, Inc., First Lien Term Loan(c) |
| 07/22/2023 | 693 | 695,087 | ||||||||||||
9,981,305 | ||||||||||||||||
Business Equipment & Services9.48% | ||||||||||||||||
Allied Universal Holdco LLC, |
||||||||||||||||
Delayed Draw Term Loan(d) |
0.00 | % | 07/28/2022 | 421 | 420,806 | |||||||||||
Term Loan |
5.50 | % | 07/28/2022 | 2,120 | 2,120,861 | |||||||||||
Alorica Inc., Term Loan B |
5.50 | % | 06/30/2022 | 1,901 | 1,920,414 | |||||||||||
Asurion LLC, |
||||||||||||||||
Second Lien Term Loan |
8.50 | % | 03/03/2021 | 10,682 | 10,670,417 | |||||||||||
Term Loan B-1 |
5.00 | % | 05/24/2019 | 778 | 779,421 | |||||||||||
Term Loan B-2 |
4.25 | % | 07/08/2020 | 9,544 | 9,520,640 | |||||||||||
Brickman Group Ltd. LLC, Second Lien Term Loan |
7.50 | % | 12/17/2021 | 708 | 701,267 | |||||||||||
Caraustar Industries, Inc., Term Loan |
8.00 | % | 05/01/2019 | 214 | 215,282 | |||||||||||
Checkout Holding Corp., |
||||||||||||||||
Second Lien Term Loan |
7.75 | % | 04/11/2022 | 2,492 | 1,769,393 | |||||||||||
Term Loan B |
4.50 | % | 04/09/2021 | 4,025 | 3,581,966 | |||||||||||
Connolly, LLC, Second Lien Term Loan |
8.00 | % | 05/14/2022 | 209 | 208,758 | |||||||||||
Crossmark Holdings, Inc., |
||||||||||||||||
First Lien Term Loan |
4.50 | % | 12/20/2019 | 1,939 | 1,335,165 | |||||||||||
Second Lien Term Loan |
8.75 | % | 12/21/2020 | 677 | 306,563 | |||||||||||
Equinix, Inc., Term Loan B |
4.00 | % | 01/08/2023 | 634 | 638,280 | |||||||||||
First Data Corp., |
||||||||||||||||
Term Loan |
4.52 | % | 03/24/2021 | 14,674 | 14,767,140 | |||||||||||
Term Loan |
4.27 | % | 07/10/2022 | 1,237 | 1,242,408 | |||||||||||
Genesys Telecom Holdings, U.S., Inc., Term Loan B |
4.50 | % | 11/13/2020 | 460 | 459,588 | |||||||||||
Global Payments Inc., Term Loan B |
4.02 | % | 04/22/2023 | 1,179 | 1,190,916 | |||||||||||
Hillman Group Inc. (The), Term Loan B |
4.50 | % | 06/30/2021 | 1,502 | 1,504,329 | |||||||||||
Inmar, Inc., Second Lien Term Loan |
8.00 | % | 01/27/2022 | 186 | 174,445 | |||||||||||
KAR Auction Services, Inc., Term Loan B-3 |
4.25 | % | 03/09/2023 | 3,376 | 3,424,959 | |||||||||||
Karman Buyer Corp., Second Lien Term Loan |
7.50 | % | 07/25/2022 | 2,507 | 2,394,216 | |||||||||||
Kronos Inc., Second Lien Term Loan |
9.75 | % | 04/30/2020 | 1,236 | 1,265,526 | |||||||||||
Lonestar Intermediate Super Holdings, LLC, Term Loan B(c) |
| 08/31/2021 | 3,328 | 3,320,924 | ||||||||||||
Peak 10, Inc., Second Lien Term Loan |
8.25 | % | 06/17/2022 | 416 | 382,412 | |||||||||||
Sensus USA, Inc., Term Loan |
6.50 | % | 04/05/2023 | 3,383 | 3,399,101 | |||||||||||
SolarWinds Holdings, Inc., Term Loan |
5.50 | % | 02/03/2023 | 6,817 | 6,857,437 | |||||||||||
Spin Holdco Inc., First Lien Term Loan |
4.25 | % | 11/14/2019 | 4,162 | 4,130,633 | |||||||||||
TaxAct, Inc., Term Loan |
7.00 | % | 12/31/2022 | 1,386 | 1,399,978 | |||||||||||
TNS Inc., |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 02/14/2020 | 361 | 362,686 | |||||||||||
Second Lien Term Loan |
9.00 | % | 08/14/2020 | 182 | 180,867 | |||||||||||
Trans Union LLC, Term Loan B-2 |
3.50 | % | 04/09/2021 | 1,450 | 1,457,250 | |||||||||||
U.S. Security Associates Holdings, Inc., Term Loan |
6.00 | % | 07/14/2023 | 1,588 | 1,592,175 | |||||||||||
Ventia Deco LLC, Term Loan B |
5.00 | % | 05/21/2022 | 1,100 | 1,106,526 |
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) | ||||||||||||||||
Wash MultiFamily Laundry Systems, LLC, |
||||||||||||||||
First Lien Term Loan |
4.25 | % | 05/13/2022 | $ | 109 | $ | 108,885 | |||||||||
First Lien Term Loan |
4.25 | % | 05/13/2022 | 623 | 621,739 | |||||||||||
Second Lien Term Loan (Acquired 05/05/2015; Cost $132,644) |
8.00 | % | 05/12/2023 | 133 | 132,163 | |||||||||||
Second Lien Term Loan (Acquired 05/05/2015; Cost $23,236) |
8.00 | % | 05/14/2023 | 23 | 23,148 | |||||||||||
WEX Inc., Term Loan B |
4.25 | % | 07/01/2023 | 4,221 | 4,262,451 | |||||||||||
89,951,135 | ||||||||||||||||
Cable & Satellite Television4.44% | ||||||||||||||||
Charter Communications Operating, LLC, Term Loan I |
3.50 | % | 01/24/2023 | 6,016 | 6,055,501 | |||||||||||
CSC Holdings, LLC, Term Loan |
5.00 | % | 10/09/2022 | 9,571 | 9,667,495 | |||||||||||
ION Media Networks, Inc., Term Loan B-1 |
4.75 | % | 12/18/2020 | 2,843 | 2,854,064 | |||||||||||
Numericable-SFR S.A. (France), |
||||||||||||||||
Term Loan B-5 |
4.56 | % | 07/29/2022 | 1,320 | 1,322,975 | |||||||||||
Term Loan B-6 |
4.75 | % | 02/10/2023 | 1,824 | 1,832,742 | |||||||||||
Telenet Financing USD LLC, Term Loan AD |
4.25 | % | 06/30/2024 | 2,126 | 2,136,433 | |||||||||||
UPC Financing Partnership, Term Loan AN(c) |
| 08/23/2024 | 10,780 | 10,759,937 | ||||||||||||
WaveDivision Holdings, LLC, Term Loan |
4.00 | % | 10/14/2019 | 344 | 344,932 | |||||||||||
WideOpenWest Finance LLC, Term Loan B(c) |
| 08/19/2023 | 2,998 | 2,987,849 | ||||||||||||
Ziggo B.V. (Netherlands), Term Loan C(c) |
| 08/31/2024 | EUR | 3,774 | 4,203,058 | |||||||||||
42,164,986 | ||||||||||||||||
Chemicals & Plastics3.00% | ||||||||||||||||
Chemours Co. (The), Term Loan B |
3.75 | % | 05/12/2022 | 465 | 459,677 | |||||||||||
Chromaflo Technologies Corp., |
||||||||||||||||
First Lien Term Loan B |
4.50 | % | 12/02/2019 | 764 | 764,394 | |||||||||||
Second Lien Term Loan |
8.25 | % | 06/02/2020 | 520 | 478,739 | |||||||||||
Colouroz Investment LLC (Germany), |
||||||||||||||||
Second Lien Term Loan |
8.25 | % | 09/05/2022 | EUR | 7,505 | 8,224,778 | ||||||||||
Second Lien Term Loan B-2 |
8.25 | % | 09/05/2022 | 11,565 | 10,967,436 | |||||||||||
Ineos Holdings Ltd., Term Loan |
3.75 | % | 05/04/2018 | 288 | 288,832 | |||||||||||
MacDermid, Inc., First Lien Term Loan |
5.50 | % | 06/07/2020 | 823 | 823,830 | |||||||||||
Otter Products, LLC, Term Loan B |
5.75 | % | 06/03/2020 | 3,699 | 3,291,865 | |||||||||||
Oxea Finance LLC, First Lien Term Loan B-2 |
4.25 | % | 01/15/2020 | 1,166 | 1,117,368 | |||||||||||
Prolampac Intermediate Inc., |
||||||||||||||||
First Lien Term Loan |
5.75 | % | 08/18/2022 | 42 | 42,577 | |||||||||||
Second Lien Term Loan (Acquired 08/06/2015; Cost $754,513) |
9.25 | % | 08/18/2023 | 769 | 756,982 | |||||||||||
Royal Holdings, Inc., Second Lien Term Loan |
8.50 | % | 06/19/2023 | 392 | 387,482 | |||||||||||
Tata Chemicals North America Inc., Term Loan |
3.75 | % | 08/07/2020 | 826 | 826,634 | |||||||||||
28,430,594 | ||||||||||||||||
Clothing & Textiles0.80% | ||||||||||||||||
ABG Intermediate Holdings 2 LLC, |
||||||||||||||||
First Lien Term Loan |
5.50 | % | 05/27/2021 | 2,446 | 2,438,005 | |||||||||||
Second Lien Term Loan |
9.50 | % | 05/27/2022 | 1,269 | 1,247,063 | |||||||||||
Ascena Retail Group, Inc., Term Loan B |
5.25 | % | 08/21/2022 | 3,722 | 3,630,094 | |||||||||||
Samsonite IP Holdings, S.a.r.l (Luxembourg), Term Loan B |
4.00 | % | 05/13/2023 | 296 | 300,186 | |||||||||||
7,615,348 | ||||||||||||||||
Conglomerates0.29% | ||||||||||||||||
Epiq Systems, Inc., Term Loan |
4.50 | % | 08/27/2020 | 1,439 | 1,436,479 | |||||||||||
Penn Engineering & Manufacturing Corp., Term Loan B |
4.00 | % | 08/29/2021 | 1,263 | 1,265,530 | |||||||||||
Spectrum Brands, Inc., Term Loan |
3.51 | % | 06/23/2022 | 15 | 15,516 | |||||||||||
2,717,525 |
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 | |||||||||||||
Containers & Glass Products3.41% | ||||||||||||||||
Aenova Holding GmbH (Germany), Second Lien Term Loan |
8.50 | % | 08/06/2021 | EUR | 2,750 | $ | 2,709,252 | |||||||||
Berlin Packaging, LLC, |
||||||||||||||||
Second Lien Term Loan |
7.75 | % | 09/30/2022 | $ | 449 | 449,738 | ||||||||||
Term Loan |
4.50 | % | 10/01/2021 | 1,632 | 1,636,298 | |||||||||||
Berry Plastics Group, Inc., Term Loan G |
3.50 | % | 01/06/2021 | 1,397 | 1,396,774 | |||||||||||
Duran Group (Germany), |
||||||||||||||||
Term Loan B (Acquired 07/15/2015; Cost $5,667,845) |
8.25 | % | 11/28/2019 | EUR | 5,175 | 5,743,520 | ||||||||||
Term Loan C (Acquired 07/15/2015; Cost $1,483,279) |
8.25 | % | 11/28/2019 | 1,483 | 1,475,863 | |||||||||||
Hoffmaster Group, Inc., |
||||||||||||||||
First Lien Term Loan |
5.25 | % | 05/09/2020 | 2,145 | 2,146,405 | |||||||||||
Second Lien Term Loan (Acquired 05/06/2014; Cost $436,724) |
10.00 | % | 05/09/2021 | 441 | 421,313 | |||||||||||
Klockner Pentaplast of America, Inc., Revolver Loan(d) |
0.00 | % | 01/28/2020 | EUR | 5,000 | 5,573,765 | ||||||||||
LA Holding B.V. (Netherlands), |
||||||||||||||||
Term Loan A (Acquired 09/15/2014; Cost $73,438) |
5.88 | % | 10/31/2016 | EUR | 57 | 62,988 | ||||||||||
Term Loan B-1A (Acquired 09/15/2014-12/16/2015; Cost $3,281,856) |
6.50 | % | 06/18/2018 | EUR | 2,600 | 2,886,158 | ||||||||||
Term Loan B-1B (Acquired 09/15/2014-12/16/2015; Cost $3,531,598) |
6.50 | % | 06/18/2018 | EUR | 2,798 | 3,105,788 | ||||||||||
Term Loan B-1C (Acquired 09/15/2014-12/16/2015; Cost $1,150,922) |
6.50 | % | 06/18/2018 | EUR | 912 | 1,012,267 | ||||||||||
Ranpak Corp., |
||||||||||||||||
Second Lien Term Loan (Acquired 05/15/2015; Cost $338,655) |
8.25 | % | 10/03/2022 | 245 | 226,415 | |||||||||||
Term Loan B-1 |
4.25 | % | 10/01/2021 | 339 | 335,683 | |||||||||||
Reynolds Group Holdings Inc., Term Loan |
4.25 | % | 02/05/2023 | 2,477 | 2,483,738 | |||||||||||
Tekni-Plex, Inc., Second Lien Term Loan |
8.75 | % | 06/01/2023 | 683 | 655,902 | |||||||||||
32,321,867 | ||||||||||||||||
Cosmetics & Toiletries0.93% | ||||||||||||||||
Coty Inc., Term Loan B |
3.75 | % | 10/27/2022 | 1,455 | 1,465,534 | |||||||||||
Galleria Co., Delayed Draw Term Loan |
3.75 | % | 01/26/2023 | 3,238 | 3,256,219 | |||||||||||
Revlon Consumer Products Corp., Term Loan B(c) |
| 09/07/2023 | 4,084 | 4,085,890 | ||||||||||||
8,807,643 | ||||||||||||||||
Drugs0.89% | ||||||||||||||||
BPA Laboratories, |
||||||||||||||||
First Lien Term Loan |
3.25 | % | 07/03/2017 | 1,605 | 1,222,161 | |||||||||||
Second Lien Term Loan |
3.25 | % | 07/03/2017 | 1,395 | 802,230 | |||||||||||
Endo Pharmaceuticals Holding Inc., Term Loan B |
3.75 | % | 09/25/2022 | 1,151 | 1,146,398 | |||||||||||
Valeant Pharmaceuticals International, Inc. (Canada), |
||||||||||||||||
Series C-2, Term Loan B(c) |
| 12/11/2019 | 3,172 | 3,181,106 | ||||||||||||
Series F-1, Term Loan B |
5.50 | % | 04/01/2022 | 2,069 | 2,074,646 | |||||||||||
8,426,541 | ||||||||||||||||
Ecological Services & Equipment0.19% | ||||||||||||||||
Waste Industries USA, Inc., Term Loan |
3.50 | % | 02/27/2020 | 600 | 602,228 | |||||||||||
WCA Waste Corp., Term Loan(c) |
| 08/11/2023 | 1,218 | 1,220,677 | ||||||||||||
1,822,905 | ||||||||||||||||
Electronics & Electrical13.90% | ||||||||||||||||
4L Technologies Inc., Term Loan |
5.50 | % | 05/08/2020 | 6,142 | 5,512,846 | |||||||||||
Avago Technologies Cayman Finance Ltd. (Luxembourg), Term Loan B3 |
3.51 | % | 02/01/2023 | 16,238 | 16,403,146 | |||||||||||
AVG Technologies N.V. (Netherlands), Term Loan |
5.75 | % | 10/15/2020 | 1,033 | 1,035,397 | |||||||||||
Blackboard Inc., Term Loan B-3 |
4.75 | % | 10/04/2018 | 1,518 | 1,501,733 | |||||||||||
Cavium, Inc., Term Loan B |
3.75 | % | 08/16/2022 | 1,402 | 1,408,366 | |||||||||||
CommScope, Inc., Term Loan 5 |
3.75 | % | 12/29/2022 | 2,690 | 2,705,834 |
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 | |||||||||||||
Electronics & Electrical(continued) | ||||||||||||||||
Compuware Corp., |
||||||||||||||||
Term Loan B-1 |
6.25 | % | 12/15/2019 | $ | 342 | $ | 342,408 | |||||||||
Term Loan B-2 |
6.25 | % | 12/15/2021 | 1,699 | 1,660,375 | |||||||||||
Dell International LLC, |
||||||||||||||||
Term Loan A-2(c) |
| 09/07/2021 | 4,250 | 4,124,125 | ||||||||||||
Term Loan B(c) |
| 09/07/2023 | 11,153 | 11,226,849 | ||||||||||||
Diamond US Holding LLC, Term Loan B |
4.75 | % | 12/17/2021 | 1,467 | 1,448,056 | |||||||||||
Diebold, Inc., Term Loan |
5.25 | % | 11/06/2023 | 2,777 | 2,795,323 | |||||||||||
Hyland Software, Inc., |
||||||||||||||||
First Lien Term Loan |
4.75 | % | 07/01/2022 | 726 | 728,417 | |||||||||||
Second Lien Term Loan |
8.25 | % | 07/03/2023 | 327 | 329,429 | |||||||||||
Lattice Semiconductor Corp., Term Loan |
5.25 | % | 03/10/2021 | 1,731 | 1,711,343 | |||||||||||
Lully Finance LLC, |
||||||||||||||||
Second Lien Term Loan B-1 |
9.50 | % | 10/16/2023 | 766 | 758,557 | |||||||||||
Second Lien Term Loan B-2 |
9.25 | % | 10/16/2023 | EUR | 5,500 | 6,192,492 | ||||||||||
MA Finance Co., LLC, Term Loan C |
4.50 | % | 11/20/2019 | 3,560 | 3,573,295 | |||||||||||
MACOM Technology Solutions Holdings, Inc., Term Loan(c) |
| 05/07/2021 | 896 | 902,933 | ||||||||||||
Mediaocean LLC, Term Loan |
5.75 | % | 08/15/2022 | 1,470 | 1,464,081 | |||||||||||
Micron Technology, Inc., Term Loan |
6.64 | % | 04/26/2022 | 1,178 | 1,192,586 | |||||||||||
Microsemi Corp., Term Loan B |
3.75 | % | 01/15/2023 | 2,727 | 2,749,701 | |||||||||||
Mirion Technologies, Inc., Term Loan |
5.75 | % | 03/31/2022 | 1,508 | 1,510,957 | |||||||||||
MKS Instruments, Inc., Term Loan B |
4.25 | % | 05/01/2023 | 1,968 | 1,989,129 | |||||||||||
MSC Software Corp., |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 05/29/2020 | 78 | 77,942 | |||||||||||
Second Lien Term Loan |
8.50 | % | 06/01/2021 | 450 | 436,887 | |||||||||||
MTS Systems Corp., Term Loan B |
5.00 | % | 07/05/2023 | 1,403 | 1,418,480 | |||||||||||
Natel Engineering Co., Inc., Term Loan |
6.75 | % | 04/10/2020 | 1,427 | 1,425,077 | |||||||||||
Neustar, Inc., Term Loan (Acquired 12/02/2015; Cost $3,307,582) |
4.52 | % | 01/22/2018 | 3,154 | 3,150,207 | |||||||||||
ON Semiconductor Corp., Term Loan B |
5.25 | % | 03/31/2023 | 9,137 | 9,268,105 | |||||||||||
RP Crown Parent, LLC, |
||||||||||||||||
First Lien Term Loan |
6.00 | % | 12/21/2018 | 8,238 | 8,244,260 | |||||||||||
Second Lien Term Loan |
11.25 | % | 12/21/2019 | 707 | 712,806 | |||||||||||
SS&C Technologies Inc., |
||||||||||||||||
Term Loan B-1 |
4.00 | % | 07/08/2022 | 1,826 | 1,840,981 | |||||||||||
Term Loan B-2 |
4.00 | % | 07/08/2022 | 233 | 234,538 | |||||||||||
Sybil Software LLC, |
||||||||||||||||
Term Loan B |
4.25 | % | 03/20/2020 | 245 | 245,604 | |||||||||||
Term Loan B(c) |
| 08/03/2022 | EUR | 1,896 | 2,149,784 | |||||||||||
Term Loan B(c) |
| 08/03/2022 | 3,933 | 3,946,349 | ||||||||||||
TTM Technologies, Inc., Term Loan B |
6.00 | % | 05/31/2021 | 361 | 362,129 | |||||||||||
Veritas US Inc., |
||||||||||||||||
Term Loan B-1 |
6.63 | % | 01/27/2023 | EUR | 12,022 | 12,622,329 | ||||||||||
Term Loan B-1 |
6.63 | % | 01/27/2023 | 5,273 | 4,868,369 | |||||||||||
VF Holding Corp., First Lien Term Loan |
4.75 | % | 06/30/2023 | 1,771 | 1,778,416 | |||||||||||
Western Digital Corp., Term Loan B-1 |
4.50 | % | 04/29/2023 | 5,781 | 5,823,436 | |||||||||||
131,873,077 | ||||||||||||||||
Equipment Leasing0.20% | ||||||||||||||||
IBC Capital US LLC, First Lien Term Loan |
4.75 | % | 09/09/2021 | 1,923 | 1,860,227 | |||||||||||
Financial Intermediaries2.20% | ||||||||||||||||
Black Knight InfoServ, LLC, Term Loan B |
3.75 | % | 05/27/2022 | 272 | 273,591 | |||||||||||
iPayment Inc., Term Loan |
6.75 | % | 05/08/2017 | 4,057 | 3,904,789 |
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 Intermediaries(continued) | ||||||||||||||||
LPL Holdings, Inc., Term Loan B |
4.75 | % | 11/20/2022 | $ | 2,123 | $ | 2,139,154 | |||||||||
MoneyGram International, Inc., Term Loan |
4.25 | % | 03/27/2020 | 4,248 | 4,028,595 | |||||||||||
RJO Holdings Corp., Term Loan |
7.28 | % | 12/10/2017 | 3,311 | 2,756,432 | |||||||||||
RPI Finance Trust, Term Loan B-4 |
3.50 | % | 11/09/2020 | 1,966 | 1,979,108 | |||||||||||
SAM Finance Lux S.a r.l. (Luxembourg), Term Loan |
5.00 | % | 12/17/2020 | GBP | 1,031 | 1,357,698 | ||||||||||
Stiphout Finance LLC, |
||||||||||||||||
First Lien Term Loan |
4.75 | % | 10/26/2022 | 315 | 314,313 | |||||||||||
Second Lien Term Loan (Acquired 07/21/2015; Cost $69,840) |
9.00 | % | 10/26/2023 | 70 | 69,461 | |||||||||||
Second Lien Term Loan |
9.00 | % | 10/26/2023 | EUR | 3,580 | 4,043,228 | ||||||||||
20,866,369 | ||||||||||||||||
Food & Drug Retailers3.09% | ||||||||||||||||
Adria Group Holding B.V. (Netherlands), Term Loan |
10.50 | % | 06/04/2018 | EUR | 17,045 | 17,996,057 | ||||||||||
Albertsons, LLC, |
||||||||||||||||
Term Loan B-4 |
4.50 | % | 08/25/2021 | 10,765 | 10,826,457 | |||||||||||
Term Loan B-6 |
4.75 | % | 06/22/2023 | 64 | 64,837 | |||||||||||
Rite Aid Corp., |
||||||||||||||||
Second Lien Term Loan |
5.75 | % | 08/21/2020 | 99 | 99,719 | |||||||||||
Second Lien Term Loan |
4.88 | % | 06/21/2021 | 298 | 298,878 | |||||||||||
29,285,948 | ||||||||||||||||
Food Products4.09% | ||||||||||||||||
AdvancePierre Foods, Inc., Term Loan B |
4.50 | % | 06/02/2023 | 4,480 | 4,520,252 | |||||||||||
Candy Intermediate Holdings, Inc., Term Loan |
5.50 | % | 06/15/2023 | 2,483 | 2,484,275 | |||||||||||
Charger OpCo B.V., Term Loan B-1 |
4.25 | % | 07/02/2022 | 3,975 | 4,009,613 | |||||||||||
Chefs Warehouse Parent, LLC, |
||||||||||||||||
Delayed Draw Term Loan(d) |
0.00 | % | 06/22/2022 | 148 | 144,758 | |||||||||||
Delayed Draw Term Loan |
5.75 | % | 06/22/2022 | 57 | 56,154 | |||||||||||
First Lien Term Loan |
5.75 | % | 06/22/2022 | 1,248 | 1,223,353 | |||||||||||
CSM Bakery Supplies LLC, |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 07/03/2020 | 161 | 153,348 | |||||||||||
Second Lien Term Loan |
8.75 | % | 07/03/2021 | 1,411 | 1,287,844 | |||||||||||
Dole Food Co., Inc., Term Loan B |
4.50 | % | 11/01/2018 | 1,332 | 1,338,454 | |||||||||||
Frontier Midco Ltd. (United Kingdom), Term Loan B |
5.27 | % | 11/27/2020 | GBP | 1,250 | 1,640,821 | ||||||||||
Hearthside Group Holdings, LLC, |
||||||||||||||||
Revolver Loan(d) |
0.00 | % | 06/02/2019 | 562 | 558,377 | |||||||||||
Revolver Loan |
3.74 | % | 06/02/2019 | 916 | 911,040 | |||||||||||
Hostess Brands, LLC, Second Lien Term Loan |
8.50 | % | 08/03/2023 | 737 | 740,457 | |||||||||||
JBS USA, LLC, Term Loan B |
4.00 | % | 10/30/2022 | 6,215 | 6,218,632 | |||||||||||
Keurig Green Mountain, Inc., Term Loan B |
5.25 | % | 03/03/2023 | 10,863 | 10,989,663 | |||||||||||
Post Holdings, Inc., Revolver Loan(d) |
0.00 | % | 01/29/2019 | 2,283 | 2,281,171 | |||||||||||
Shearers Foods, LLC, Second Lien Term Loan |
7.75 | % | 06/30/2022 | 241 | 219,738 | |||||||||||
38,777,950 | ||||||||||||||||
Food Service2.02% | ||||||||||||||||
Portillos Holdings, LLC, Second Lien Term Loan |
8.00 | % | 08/01/2022 | 471 | 471,228 | |||||||||||
Red Lobster Management, LLC, Term Loan |
6.25 | % | 07/28/2021 | 1,122 | 1,128,347 | |||||||||||
Restaurant Holding Co., LLC, First Lien Term Loan (Acquired 02/28/2014; Cost $1,003,075) |
8.75 | % | 02/28/2019 | 1,024 | 962,101 | |||||||||||
TMK Hawk Parent, Corp., |
||||||||||||||||
First Lien Term Loan |
5.25 | % | 10/01/2021 | 2,101 | 2,107,322 | |||||||||||
Second Lien Term Loan |
8.50 | % | 10/01/2022 | 646 | 646,340 | |||||||||||
US Foods, Inc., Term Loan B |
4.00 | % | 06/27/2023 | 10,065 | 10,128,655 |
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 Service(continued) | ||||||||||||||||
Weight Watchers International, Inc., Term Loan B-2 |
4.00 | % | 04/02/2020 | $ | 2,791 | $ | 2,152,110 | |||||||||
Yum! Brands, Inc., First Lien Term Loan B |
3.26 | % | 06/16/2023 | 1,558 | 1,569,932 | |||||||||||
19,166,035 | ||||||||||||||||
Health Care5.39% | ||||||||||||||||
Acadia Healthcare Co., Inc., |
||||||||||||||||
Term Loan B |
3.75 | % | 02/11/2022 | 660 | 661,561 | |||||||||||
Term Loan B-2 |
4.50 | % | 02/16/2023 | 2,275 | 2,290,869 | |||||||||||
BSN Medical Luxembourg Holding S.a.r.l. (Luxembourg), Second Lien Term Loan(c) |
| 07/23/2024 | EUR | 8,750 | 9,760,189 | |||||||||||
CareCore National, LLC, Term Loan B |
5.50 | % | 03/05/2021 | 1,407 | 1,379,291 | |||||||||||
Community Health Systems, Inc., |
||||||||||||||||
Revolver Loan(d) |
0.00 | % | 01/27/2019 | 1,160 | 1,122,367 | |||||||||||
Term Loan F |
4.08 | % | 12/31/2018 | 2,329 | 2,300,452 | |||||||||||
Term Loan G |
3.75 | % | 12/31/2019 | 565 | 544,926 | |||||||||||
DJO Finance LLC, Term Loan |
4.25 | % | 06/07/2020 | 506 | 489,539 | |||||||||||
Explorer Holdings, Inc., Term Loan |
6.00 | % | 05/02/2023 | 897 | 903,462 | |||||||||||
Greatbatch Ltd., Term Loan B |
5.25 | % | 10/27/2022 | 3,665 | 3,640,736 | |||||||||||
HC Group Holdings III, Inc., Term Loan |
6.00 | % | 04/07/2022 | 1,729 | 1,737,015 | |||||||||||
HCA, Inc., |
||||||||||||||||
Term Loan B-6 |
3.77 | % | 03/18/2023 | 1,314 | 1,331,188 | |||||||||||
Term Loan B-7 |
3.57 | % | 02/15/2024 | 2,208 | 2,231,794 | |||||||||||
Kindred Healthcare, Inc., Term Loan |
4.25 | % | 04/09/2021 | 267 | 265,080 | |||||||||||
Kinetic Concepts, Inc., Term Loan F-1 |
5.00 | % | 11/04/2020 | 2,431 | 2,445,173 | |||||||||||
MPH Acquisition Holdings LLC, Term Loan B |
5.00 | % | 06/07/2023 | 7,802 | 7,897,875 | |||||||||||
National Surgical Hospitals, Inc., Term Loan |
4.50 | % | 06/01/2022 | 1,061 | 1,048,475 | |||||||||||
New Millennium HoldCo, Inc., Term Loan |
7.50 | % | 12/21/2020 | 4,552 | 2,227,407 | |||||||||||
Phillips-Medisize Corp., Second Lien Term Loan |
8.25 | % | 06/16/2022 | 416 | 417,462 | |||||||||||
Surgical Care Affiliates, LLC, Term Loan |
4.25 | % | 03/17/2022 | 1,347 | 1,355,446 | |||||||||||
Tunstall Group Finance Ltd. (United Kingdom), Acquisition Facility Loan(d) |
0.00 | % | 10/18/2019 | GBP | 4,000 | 4,727,338 | ||||||||||
Western Dental Services, Inc., Term Loan |
7.50 | % | 11/01/2018 | 2,414 | 2,402,068 | |||||||||||
51,179,713 | ||||||||||||||||
Home Furnishings1.27% | ||||||||||||||||
Hilding Anders International AB (Sweden), |
||||||||||||||||
Jr. Term Loan |
12.00 | % | 06/30/2020 | EUR | 3,434 | 76,603 | ||||||||||
Second Lien Term Loan |
5.50 | % | 06/30/2018 | EUR | 7,250 | 7,136,790 | ||||||||||
Mattress Holding Corp., |
||||||||||||||||
Term Loan |
6.25 | % | 10/20/2021 | 682 | 683,184 | |||||||||||
Term Loan |
6.25 | % | 10/20/2021 | 4,131 | 4,135,347 | |||||||||||
12,031,924 | ||||||||||||||||
Industrial Equipment1.46% | ||||||||||||||||
Accudyne Industries LLC, |
||||||||||||||||
Revolver Loan(d) |
0.00 | % | 09/13/2019 | 3,112 | 2,661,692 | |||||||||||
Term Loan |
4.00 | % | 12/13/2019 | 3,186 | 2,855,395 | |||||||||||
Crosby US Acquisition Corp., |
||||||||||||||||
First Lien Term Loan |
4.00 | % | 11/23/2020 | 572 | 471,372 | |||||||||||
Second Lien Term Loan |
7.00 | % | 11/22/2021 | 862 | 582,768 | |||||||||||
Delachaux S.A. (France), Term Loan B-3 |
5.50 | % | 10/28/2021 | GBP | 2,522 | 3,222,966 | ||||||||||
Filtration Group Corp., Second Lien Term Loan |
8.25 | % | 11/22/2021 | 273 | 270,232 | |||||||||||
Gardner Denver, Inc., Term Loan |
4.25 | % | 07/30/2020 | 355 | 337,948 | |||||||||||
North American Lifting Holdings, Inc., First Lien Term Loan |
5.50 | % | 11/27/2020 | 2,273 | 1,767,619 | |||||||||||
Tank Holding Corp., Term Loan |
5.25 | % | 03/16/2022 | 806 | 772,161 |
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 | |||||||||||||
Industrial Equipment(continued) | ||||||||||||||||
Terex Corp., Term Loan |
3.50 | % | 08/13/2021 | $ | 142 | $ | 141,411 | |||||||||
Virtuoso US LLC, Term Loan |
4.25 | % | 02/11/2021 | 806 | 809,242 | |||||||||||
13,892,806 | ||||||||||||||||
Insurance0.01% | ||||||||||||||||
York Risk Services Holding Corp., Term Loan |
4.75 | % | 10/01/2021 | 66 | 59,344 | |||||||||||
Leisure Goods, Activities & Movies3.87% | ||||||||||||||||
Alpha Topco Ltd. (United Kingdom), |
||||||||||||||||
Second Lien Term Loan |
7.75 | % | 07/29/2022 | 7,778 | 7,721,018 | |||||||||||
Term Loan B-3 |
4.75 | % | 07/30/2021 | 6,201 | 6,180,210 | |||||||||||
AMC Entertainment, Inc., Term Loan |
4.00 | % | 12/15/2022 | 1,671 | 1,683,864 | |||||||||||
Bright Horizons Family Solutions, Inc., Term Loan B-1 |
4.25 | % | 01/30/2020 | 284 | 285,735 | |||||||||||
Cinemark USA, Inc., Term Loan B |
3.32 | % | 05/06/2022 | 142 | 143,356 | |||||||||||
CWGS Group, LLC, Term Loan |
5.75 | % | 02/20/2020 | 679 | 679,679 | |||||||||||
Equinox Holdings Inc., Revolver Loan(d) |
0.00 | % | 02/01/2018 | 1,047 | 942,553 | |||||||||||
Fitness First Finance Ltd. (United Kingdom), Term Loan A-1 (Acquired 04/22/2015; Cost $9,228,758) |
4.52 | % | 04/22/2017 | GBP | 6,212 | 7,932,362 | ||||||||||
Life Time Fitness, Inc., Term Loan B |
4.25 | % | 06/10/2022 | 233 | 234,042 | |||||||||||
Regal Cinemas Corp., Term Loan |
3.50 | % | 04/01/2022 | 1,527 | 1,535,954 | |||||||||||
Seaworld Parks & Entertainment, Inc., Term Loan B-2 |
3.00 | % | 05/14/2020 | 2,457 | 2,398,699 | |||||||||||
UFC Holdings, LLC, |
||||||||||||||||
First Lien Term Loan |
5.00 | % | 08/18/2023 | 4,065 | 4,083,087 | |||||||||||
Second Lien Term Loan |
8.50 | % | 08/18/2024 | 1,437 | 1,453,086 | |||||||||||
William Morris Endeavor Entertainment, LLC, First Lien Term Loan |
5.25 | % | 05/06/2021 | 1,482 | 1,487,053 | |||||||||||
36,760,698 | ||||||||||||||||
Lodging & Casinos4.54% | ||||||||||||||||
B&B Hotels S.A.S. (France), Term Loan B |
6.00 | % | 03/14/2023 | EUR | 8,500 | 9,488,438 | ||||||||||
Belmond Interfin Ltd. (Bermuda), Term Loan |
4.00 | % | 03/21/2021 | 1,297 | 1,290,945 | |||||||||||
Boyd Gaming Corp., Term Loan B-2(c) |
| 08/18/2023 | 1,461 | 1,469,180 | ||||||||||||
Caesars Growth Properties Holdings, LLC, Term Loan B |
6.25 | % | 05/08/2021 | 3,749 | 3,627,460 | |||||||||||
Cannery Casino Resorts, LLC, First Lien Term Loan |
6.00 | % | 10/02/2018 | 4,291 | 4,294,743 | |||||||||||
ESH Hospitality, Inc., Term Loan B(c) |
| 08/30/2023 | 3,338 | 3,352,359 | ||||||||||||
Harrahs Operating Co., Inc., |
||||||||||||||||
Term Loan B-4(g) |
1.50 | % | 10/31/2016 | 296 | 322,429 | |||||||||||
Term Loan B-6(g) |
1.50 | % | 03/01/2017 | 4,218 | 4,446,559 | |||||||||||
Hilton Worldwide Finance, LLC, |
||||||||||||||||
Term Loan B-1 |
3.50 | % | 10/26/2020 | 86 | 86,121 | |||||||||||
Term Loan B-2 |
3.10 | % | 10/25/2023 | 878 | 884,080 | |||||||||||
MGM Growth Properties Operating Partnership L.P., Term Loan B |
4.00 | % | 04/25/2023 | 1,743 | 1,759,535 | |||||||||||
Scientific Games International, Inc., |
||||||||||||||||
Revolver Loan(d) |
0.00 | % | 10/18/2018 | 2,562 | 2,273,453 | |||||||||||
Revolver Loan |
3.52 | % | 10/18/2018 | 594 | 527,177 | |||||||||||
Term Loan |
6.00 | % | 10/18/2020 | 6,298 | 6,309,309 | |||||||||||
Station Casinos LLC, Term Loan B |
3.75 | % | 06/08/2023 | 936 | 939,015 | |||||||||||
Twin River Management Group, Inc., Term Loan |
5.25 | % | 07/10/2020 | 2,007 | 2,018,494 | |||||||||||
43,089,297 | ||||||||||||||||
Nonferrous Metals & Minerals1.09% | ||||||||||||||||
American Rock Salt Co. LLC, |
||||||||||||||||
First Lien Term Loan |
4.75 | % | 05/20/2021 | 140 | 133,853 | |||||||||||
Term Loan |
4.75 | % | 05/20/2021 | 36 | 34,377 |
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 | |||||||||||||
Nonferrous Metals & Minerals(continued) | ||||||||||||||||
Arch Coal, Inc., |
||||||||||||||||
DIP Term Loan(d)(g) |
0.00 | % | 01/31/2017 | $ | 2,049 | $ | 2,053,858 | |||||||||
Term Loan(g) |
7.50 | % | 05/16/2018 | 5,643 | 3,009,468 | |||||||||||
Dynacast International LLC, |
||||||||||||||||
First Lien Term Loan B-1 |
4.50 | % | 01/28/2022 | 236 | 235,638 | |||||||||||
Second Lien Term Loan (Acquired 01/29/2015; Cost $538,613) |
9.50 | % | 01/30/2023 | 547 | 535,092 | |||||||||||
EP Minerals, LLC, Term Loan |
5.50 | % | 08/20/2020 | 382 | 381,007 | |||||||||||
Levantina Group (Spain), Term Loan (Acquired 04/29/2014-12/31/2015; Cost $6,116,621)(f) |
10.00 | % | 06/30/2020 | EUR | 6,097 | 1,088,120 | ||||||||||
Novelis Inc., Term Loan |
4.00 | % | 06/02/2022 | 2,873 | 2,883,334 | |||||||||||
10,354,747 | ||||||||||||||||
Oil & Gas6.86% | ||||||||||||||||
Ameriforge Group Inc., First Lien Term Loan |
5.00 | % | 12/19/2019 | 26 | 13,488 | |||||||||||
Ascent Resources Marcellus, LLC, First Lien Term Loan |
5.25 | % | 08/04/2020 | 3,142 | 1,575,846 | |||||||||||
Bronco Midstream Funding, LLC, Term Loan |
5.00 | % | 08/17/2020 | 2,231 | 2,019,215 | |||||||||||
California Resources Corp., Term Loan(c) |
| 12/31/2021 | 1,262 | 1,324,771 | ||||||||||||
CITGO Holding Inc., Term Loan B |
9.50 | % | 05/12/2018 | 4,394 | 4,435,645 | |||||||||||
CJ Holding Co., |
||||||||||||||||
DIP Delayed Draw Term Loan(d)(g) |
0.00 | % | 03/31/2017 | 153 | 156,367 | |||||||||||
DIP Delayed Draw Term Loan(g) |
10.00 | % | 03/31/2017 | 51 | 52,123 | |||||||||||
Term Loan B-2(e)(g) |
0.00 | % | 03/24/2022 | 979 | 736,722 | |||||||||||
Crestwood Holdings LLC, Term Loan B-1 |
9.00 | % | 06/19/2019 | 1,561 | 1,430,207 | |||||||||||
Drillships Financing Holding Inc., Term Loan B-1 |
6.00 | % | 03/31/2021 | 7,872 | 3,660,295 | |||||||||||
Drillships Ocean Ventures, Inc., Term Loan |
5.50 | % | 07/25/2021 | 3,847 | 2,628,990 | |||||||||||
EFR Benelux B.V. (Netherlands), Second Lien Term Loan |
8.50 | % | 08/28/2019 | EUR | 6,650 | 7,395,491 | ||||||||||
Fieldwood Energy LLC, |
||||||||||||||||
First Lien Term Loan |
8.00 | % | 08/31/2020 | 2,034 | 1,705,951 | |||||||||||
First Lien Term Loan |
8.38 | % | 09/30/2020 | 1,103 | 746,980 | |||||||||||
Second Lien Term Loan |
8.38 | % | 09/30/2020 | 1,363 | 504,197 | |||||||||||
Term Loan |
3.88 | % | 09/28/2018 | 2,331 | 2,006,851 | |||||||||||
Floatel International Ltd., Term Loan |
6.00 | % | 06/27/2020 | 3,786 | 2,413,274 | |||||||||||
Gulf Finance, LLC, Term Loan B |
6.25 | % | 08/25/2023 | 3,624 | 3,528,895 | |||||||||||
HGIM Corp., Term Loan B |
5.50 | % | 06/18/2020 | 4,882 | 2,880,302 | |||||||||||
Jonah Energy LLC, Second Lien Term Loan |
7.50 | % | 05/12/2021 | 1,778 | 1,564,645 | |||||||||||
NGPL PipeCo LLC, Term Loan |
6.75 | % | 09/15/2017 | 168 | 168,565 | |||||||||||
Osum Productions Corp. (Canada), Term Loan (Acquired 08/04/2014-08/03/2016; Cost $1,996,165) |
6.50 | % | 07/31/2020 | 2,135 | 1,323,930 | |||||||||||
Pacific Drilling S.A. (Luxembourg), Term Loan |
4.50 | % | 06/03/2018 | 341 | 93,871 | |||||||||||
Paragon Offshore Finance Co. (Cayman Islands), Term Loan(g) |
5.25 | % | 07/16/2021 | 1,407 | 328,235 | |||||||||||
Petroleum GEO-Services ASA, Term Loan |
3.25 | % | 03/19/2021 | 3,915 | 2,572,202 | |||||||||||
Samchully Midstream 3 LLC, Term Loan (Acquired 10/14/2014-08/09/2016; Cost $1,864,098) |
5.75 | % | 10/20/2021 | 1,913 | 1,741,216 | |||||||||||
Samson Investment Co., Second Lien Term Loan(e)(g) |
0.00 | % | 09/25/2018 | 6,590 | 1,608,041 | |||||||||||
Seadrill Operating L.P., Term Loan |
4.00 | % | 02/21/2021 | 11,454 | 5,555,046 | |||||||||||
Seventy Seven Operating LLC, Term Loan |
3.75 | % | 06/25/2020 | 3,336 | 2,931,222 | |||||||||||
Southcross Energy Partners, L.P., Term Loan |
5.25 | % | 08/04/2021 | 1,046 | 855,621 | |||||||||||
Targa Resources Corp., Term Loan B |
5.75 | % | 02/25/2022 | 612 | 613,499 | |||||||||||
Veresen Midstream US LLC, Term Loan B-1 |
5.25 | % | 03/31/2022 | 3,348 | 3,322,885 | |||||||||||
Weatherford International Ltd. (Bermuda), Term Loan(c) |
| 07/13/2020 | 3,376 | 3,207,534 | ||||||||||||
65,102,122 |
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 | |||||||||||||
Publishing1.39% | ||||||||||||||||
Getty Images, Inc., |
||||||||||||||||
Revolver Loan(d) |
0.00 | % | 10/18/2017 | $ | 4,196 | $ | 3,923,053 | |||||||||
Term Loan |
4.75 | % | 10/18/2019 | 4,626 | 3,943,821 | |||||||||||
Merrill Communications LLC, Term Loan |
6.25 | % | 06/01/2022 | 3,813 | 3,517,562 | |||||||||||
ProQuest LLC, Term Loan B |
5.75 | % | 10/24/2021 | 1,860 | 1,848,233 | |||||||||||
13,232,669 | ||||||||||||||||
Radio & Television2.44% | ||||||||||||||||
Block Communications, Inc., Incremental Term Loan B |
4.00 | % | 11/07/2021 | 694 | 696,946 | |||||||||||
Gray Television, Inc., Term Loan |
3.94 | % | 06/13/2021 | 36 | 36,302 | |||||||||||
iHeartCommunications, Inc., |
||||||||||||||||
Term Loan D |
7.27 | % | 01/30/2019 | 12,067 | 9,310,034 | |||||||||||
Term Loan E |
8.02 | % | 07/31/2019 | 15,948 | 12,269,960 | |||||||||||
Sinclair Television Group Inc., Term Loan B-1 |
3.50 | % | 07/30/2021 | 788 | 792,063 | |||||||||||
23,105,305 | ||||||||||||||||
Retailers (except Food & Drug)7.03% | ||||||||||||||||
Cortefiel, S.A. (Spain), |
||||||||||||||||
PIK Term Loan B-1(f) |
1.00 | % | 03/20/2017 | EUR | 2,530 | 1,843,842 | ||||||||||
PIK Term Loan B-2(f) |
1.00 | % | 03/21/2018 | EUR | 1,930 | 1,406,161 | ||||||||||
PIK Term Loan B-3(f) |
1.00 | % | 03/21/2018 | EUR | 898 | 654,782 | ||||||||||
PIK Term Loan B-3(f) |
1.00 | % | 03/21/2018 | EUR | 2,361 | 1,720,371 | ||||||||||
Davids Bridal, Inc., Term Loan |
5.00 | % | 10/11/2019 | 1,073 | 1,010,190 | |||||||||||
Fullbeauty Brands Holdings Corp., First Lien Term Loan |
5.75 | % | 10/14/2022 | 3,938 | 3,708,111 | |||||||||||
Harbor Freight Tools USA, Inc., Term Loan B |
4.00 | % | 08/19/2023 | 336 | 337,353 | |||||||||||
J. Crew Group, Inc., Term Loan |
4.00 | % | 03/05/2021 | 656 | 522,099 | |||||||||||
Kirk Beauty One GmbH (Germany), Term Loan B-8 |
4.75 | % | 08/13/2022 | EUR | 1,538 | 1,738,146 | ||||||||||
Lands End, Inc., Term Loan B |
4.25 | % | 04/02/2021 | 3,265 | 2,646,366 | |||||||||||
National Vision, Inc., Second Lien Term Loan |
6.75 | % | 03/13/2022 | 93 | 86,692 | |||||||||||
Nine West Holdings, Inc., Term Loan |
4.75 | % | 10/08/2019 | 2,502 | 1,275,910 | |||||||||||
Payless, Inc., |
||||||||||||||||
Second Lien Term Loan |
8.50 | % | 03/11/2022 | 1,222 | 203,159 | |||||||||||
Term Loan |
5.00 | % | 03/11/2021 | 4,025 | 2,059,453 | |||||||||||
Petco Animal Supplies, Inc., |
||||||||||||||||
Term Loan B-1 |
5.00 | % | 01/26/2023 | 4,066 | 4,105,744 | |||||||||||
Term Loan B-2 |
5.00 | % | 01/26/2023 | 1,460 | 1,472,883 | |||||||||||
Pier 1 Imports (U.S.), Inc., Term Loan |
4.50 | % | 04/30/2021 | 863 | 787,092 | |||||||||||
Pilot Travel Centers LLC, Term Loan B |
3.27 | % | 05/25/2023 | 595 | 599,086 | |||||||||||
Savers Inc., Term Loan |
5.00 | % | 07/09/2019 | 2,636 | 2,309,540 | |||||||||||
Sears Roebuck Acceptance Corp., Term Loan |
5.50 | % | 06/30/2018 | 13,663 | 13,296,005 | |||||||||||
THOM Europe S.A.S. (France), Revolver Loan (Acquired 05/21/2015-09/14/2015; Cost $6,728,001)(d) |
0.00 | % | 01/18/2019 | EUR | 7,000 | 7,808,151 | ||||||||||
Toys R Us Property Co. I, LLC, Term Loan |
6.00 | % | 08/21/2019 | 7,144 | 6,840,468 | |||||||||||
Toys R Us-Delaware, Inc., |
||||||||||||||||
Term Loan A-1 |
8.25 | % | 10/24/2019 | 1,038 | 1,022,842 | |||||||||||
Term Loan A-1 |
8.25 | % | 10/24/2019 | 1,288 | 1,268,324 | |||||||||||
Term Loan B-2 |
5.25 | % | 05/25/2018 | 147 | 139,203 | |||||||||||
Vivarte (France), Term Loan |
4.00 | % | 10/29/2019 | EUR | 6,156 | 5,918,259 | ||||||||||
Wilton Brands LLC, Term Loan B |
8.50 | % | 08/30/2018 | 2,267 | 1,898,603 | |||||||||||
66,678,835 |
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 | |||||||||||||
Steel0.62% | ||||||||||||||||
Fortescue Metals Group Ltd., Term Loan B |
3.75 | % | 06/30/2019 | $ | 5,898 | $ | 5,875,288 | |||||||||
Surface Transport0.70% | ||||||||||||||||
Avis Budget Car Rental, LLC, Term Loan |
3.25 | % | 03/15/2022 | 1,624 | 1,633,305 | |||||||||||
Hertz Corp. (The), Term Loan B |
3.50 | % | 06/30/2023 | 184 | 185,202 | |||||||||||
Kenan Advantage Group, Inc., |
||||||||||||||||
Delayed Draw Term Loan(d) |
0.00 | % | 01/31/2017 | 46 | 45,804 | |||||||||||
Term Loan |
4.00 | % | 07/31/2022 | 383 | 380,179 | |||||||||||
Term Loan B |
4.00 | % | 07/29/2022 | 123 | 122,263 | |||||||||||
PODS Holding, LLC, First Lien Term Loan |
4.50 | % | 02/02/2022 | 1,536 | 1,541,663 | |||||||||||
U.S. Shipping Corp., Term Loan B |
5.25 | % | 06/26/2021 | 2,160 | 2,138,749 | |||||||||||
XPO Logistics, Inc., Term Loan B-2(c) |
| 10/30/2021 | 605 | 608,830 | ||||||||||||
6,655,995 | ||||||||||||||||
Telecommunications4.48% | ||||||||||||||||
Communications Sales & Leasing, Inc., Term Loan |
5.00 | % | 10/24/2022 | 4,843 | 4,853,981 | |||||||||||
Fairpoint Communications, Inc., Term Loan |
7.50 | % | 02/14/2019 | 3,829 | 3,840,614 | |||||||||||
Frontier Communications Corp., Delayed Draw Term Loan A |
3.03 | % | 03/31/2021 | 3,469 | 3,363,500 | |||||||||||
GTT Communications, Inc., Term Loan B |
5.75 | % | 10/22/2022 | 1,897 | 1,902,300 | |||||||||||
Intelsat Jackson Holdings S.A., Term Loan B-2 |
3.75 | % | 06/30/2019 | 3,588 | 3,417,099 | |||||||||||
Level 3 Communications, Inc., Term Loan B-II |
3.50 | % | 05/31/2022 | 9,510 | 9,569,265 | |||||||||||
LTS Buyer LLC, First Lien Term Loan B |
4.00 | % | 04/13/2020 | 43 | 43,576 | |||||||||||
Nextgen Finance, LLC, Term Loan B |
5.00 | % | 05/31/2021 | 3,014 | 2,933,290 | |||||||||||
Syniverse Holdings, Inc., |
||||||||||||||||
Term Loan |
4.00 | % | 04/23/2019 | 2,709 | 2,420,417 | |||||||||||
Term Loan |
4.00 | % | 04/23/2019 | 4,064 | 3,624,747 | |||||||||||
T-Mobile USA, Inc., Term Loan |
3.50 | % | 11/09/2022 | 971 | 978,885 | |||||||||||
Windstream Corp., Term Loan B-6 |
5.75 | % | 03/29/2021 | 3,424 | 3,454,855 | |||||||||||
XO Communications, LLC, Term Loan |
4.25 | % | 03/20/2021 | 518 | 518,572 | |||||||||||
Zayo Group, LLC, Term Loan B |
3.75 | % | 05/06/2021 | 1,612 | 1,616,156 | |||||||||||
42,537,257 | ||||||||||||||||
Utilities4.58% | ||||||||||||||||
APLP Holdings L.P., Term Loan |
6.00 | % | 04/13/2023 | 1,880 | 1,894,495 | |||||||||||
Aria Energy Operating LLC, Term Loan |
5.50 | % | 05/27/2022 | 881 | 854,837 | |||||||||||
Calpine Corp., |
||||||||||||||||
Term Loan B-5 |
3.50 | % | 05/27/2022 | 2,798 | 2,803,829 | |||||||||||
Term Loan B-6 |
4.00 | % | 01/15/2023 | 7,110 | 7,158,076 | |||||||||||
Term Loan B-7 |
3.64 | % | 05/31/2023 | 5,025 | 5,051,922 | |||||||||||
Dayton Power & Light Co. (The), Term Loan B |
4.00 | % | 08/24/2022 | 334 | 336,945 | |||||||||||
Dynegy Inc., |
||||||||||||||||
Term Loan B-2 |
4.00 | % | 04/23/2020 | 225 | 224,943 | |||||||||||
Term Loan C |
5.00 | % | 06/27/2023 | 6,218 | 6,234,798 | |||||||||||
Energy Future Intermediate Holding Co. LLC, DIP Term Loan |
4.25 | % | 12/19/2016 | 1,548 | 1,556,175 | |||||||||||
Granite Acquisition, Inc., |
||||||||||||||||
First Lien Term Loan B |
5.00 | % | 12/17/2021 | 2,689 | 2,633,345 | |||||||||||
Second Lien Term Loan B |
8.25 | % | 12/17/2022 | 652 | 616,643 | |||||||||||
Term Loan C |
5.00 | % | 12/17/2021 | 119 | 116,393 | |||||||||||
Meter Reading Holding, LLC, Term Loan B(c) |
| 08/29/2023 | 2,395 | 2,388,846 | ||||||||||||
Southeast PowerGen LLC, Term Loan B |
4.50 | % | 12/02/2021 | 1,064 | 1,034,775 | |||||||||||
Texas Competitive Electric Holdings Co., LLC, |
||||||||||||||||
DIP Term Loan B(g) |
5.00 | % | 10/31/2017 | 7,599 | 7,629,968 | |||||||||||
DIP Term Loan C(g) |
5.00 | % | 10/31/2017 | 1,733 | 1,740,168 |
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 | |||||||||||||
Utilities(continued) | ||||||||||||||||
TPF II Power, LLC, Term Loan |
5.00 | % | 10/02/2021 | $ | 870 | $ | 875,991 | |||||||||
USIC Holding, Inc., First Lien Term Loan |
4.00 | % | 07/10/2020 | 258 | 256,373 | |||||||||||
43,408,522 | ||||||||||||||||
Total Variable Rate Senior Loan Interests |
959,830,958 | |||||||||||||||
Bonds & Notes27.64% |
||||||||||||||||
Aerospace & Defense0.38% | ||||||||||||||||
LMI Aerospace, Inc. |
7.38 | % | 07/15/2019 | 2,894 | 2,959,115 | |||||||||||
TransDigm Inc.(h) |
6.38 | % | 06/15/2026 | 609 | 627,270 | |||||||||||
3,586,385 | ||||||||||||||||
Air Transport0.43% | ||||||||||||||||
Mesa Airlines, Inc.(h) |
5.75 | % | 07/15/2025 | 4,011 | 4,041,112 | |||||||||||
Automotive0.69% | ||||||||||||||||
Adient Global Holdings Ltd. (Jersey)(h) |
3.50 | % | 08/15/2024 | EUR | 5,608 | 6,526,305 | ||||||||||
Building & Development0.67% | ||||||||||||||||
Cemex, S.A.B. de C.V. (Mexico)(h) |
4.63 | % | 06/15/2024 | EUR | 2,121 | 2,475,930 | ||||||||||
CMC Di Ravenna (Italy)(h) |
7.50 | % | 08/01/2021 | EUR | 4,532 | 3,897,575 | ||||||||||
6,373,505 | ||||||||||||||||
Business Equipment & Services3.78% | ||||||||||||||||
AA BondCo PLC (United Kingdom)(h) |
5.50 | % | 07/31/2022 | GBP | 793 | 1,073,869 | ||||||||||
Dream Secured Bondco AB (Sweden)(h)(i) |
8.25 | % | 10/21/2023 | EUR | 1,000 | 1,164,708 | ||||||||||
Dream Secured Bondco AB (Sweden)(h)(i) |
8.25 | % | 10/21/2023 | EUR | 7,530 | 8,770,255 | ||||||||||
Dream Secured Bondco AB (Sweden)(h)(i) |
8.25 | % | 10/21/2023 | SEK | 34,923 | 4,260,938 | ||||||||||
ICBPI (United Kingdom)(h)(i) |
8.00 | % | 05/30/2021 | EUR | 7,000 | 7,823,768 | ||||||||||
ICBPI (United Kingdom)(h) |
8.25 | % | 05/30/2021 | EUR | 2,000 | 2,345,346 | ||||||||||
TeamSystem S.p.A. (Italy) (Acquired 02/25/2016; Cost $7,103,781)(h)(i) |
7.25 | % | 05/20/2022 | EUR | 6,500 | 7,250,427 | ||||||||||
West Corp.(h) |
4.75 | % | 07/15/2021 | 3,143 | 3,213,718 | |||||||||||
35,903,029 | ||||||||||||||||
Cable & Satellite Television3.58% | ||||||||||||||||
Altice Financing S.A. (Luxembourg)(h) |
5.25 | % | 02/15/2023 | EUR | 4,500 | 5,317,686 | ||||||||||
Altice Financing S.A. (Luxembourg)(h) |
6.63 | % | 02/15/2023 | 536 | 560,790 | |||||||||||
Altice Financing S.A. (Luxembourg)(h) |
7.50 | % | 05/15/2026 | 8,064 | 8,467,200 | |||||||||||
Cequel Communications, LLC(h) |
5.50 | % | 05/15/2026 | 7,531 | 7,982,860 | |||||||||||
Numericable-SFR S.A. (France)(h) |
5.63 | % | 05/15/2024 | EUR | 3,250 | 3,851,789 | ||||||||||
Numericable-SFR S.A. (France)(h) |
6.00 | % | 05/15/2022 | 346 | 354,910 | |||||||||||
Numericable-SFR S.A. (France)(h) |
7.38 | % | 05/01/2026 | 1,345 | 1,388,712 | |||||||||||
UPC Broadband Holdings, B.V. (Netherlands)(h) |
6.88 | % | 01/15/2022 | 189 | 199,892 | |||||||||||
Virgin Media Investment Holdings Ltd. (United Kingdom) |
5.13 | % | 02/15/2022 | GBP | 100 | 136,075 | ||||||||||
Virgin Media Investment Holdings Ltd. (United Kingdom)(h) |
5.13 | % | 01/15/2025 | GBP | 2,366 | 3,327,502 | ||||||||||
Virgin Media Investment Holdings Ltd. (United Kingdom)(h) |
5.50 | % | 08/15/2026 | 2,252 | 2,347,710 | |||||||||||
33,935,126 | ||||||||||||||||
Chemicals & Plastics0.32% | ||||||||||||||||
Chemours Co. (The) |
6.63 | % | 05/15/2023 | 605 | 586,850 | |||||||||||
Hexion Specialty Chemicals, Inc. |
6.63 | % | 04/15/2020 | 2,834 | 2,468,774 | |||||||||||
3,055,624 | ||||||||||||||||
Clothing & Textiles0.42% | ||||||||||||||||
SMCP S.A.S. (France)(h)(i) |
6.00 | % | 11/01/2022 | EUR | 3,481 | 3,950,832 |
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 | |||||||||||||
Containers & Glass Products1.96% | ||||||||||||||||
Ardagh Glass Finance PLC(h)(i) |
4.07 | % | 05/15/2021 | $ | 1,163 | $ | 1,189,167 | |||||||||
Ardagh Glass Finance PLC(h) |
4.63 | % | 05/15/2023 | 1,132 | 1,160,300 | |||||||||||
Ardagh Glass Finance PLC(h) |
6.75 | % | 05/15/2024 | EUR | 3,945 | 4,785,491 | ||||||||||
Ardagh Glass Finance PLC(h) |
7.00 | % | 11/15/2020 | 178 | 179,216 | |||||||||||
Ardagh Glass Finance PLC(h) |
8.38 | % | 06/15/2019 | EUR | 814 | 959,368 | ||||||||||
Ardagh Glass Finance PLC(h) |
8.63 | % | 06/15/2019 | 4,000 | 4,200,000 | |||||||||||
Reynolds Group Holdings Inc.(h)(i) |
4.13 | % | 07/15/2021 | 1,310 | 1,332,925 | |||||||||||
Reynolds Group Holdings Inc.(h) |
5.63 | % | 12/15/2016 | 1,833 | 1,837,582 | |||||||||||
Reynolds Group Holdings Inc. |
5.75 | % | 10/15/2020 | 1,563 | 1,615,751 | |||||||||||
Reynolds Group Holdings Inc. |
6.88 | % | 02/15/2021 | 1,043 | 1,087,328 | |||||||||||
Reynolds Group Holdings Inc. |
9.88 | % | 08/15/2019 | 275 | 283,938 | |||||||||||
18,631,066 | ||||||||||||||||
Electronics & Electrical1.49% | ||||||||||||||||
Blackboard Inc.(h) |
7.75 | % | 11/15/2019 | 2,234 | 2,116,715 | |||||||||||
Dell International LLC(h) |
5.45 | % | 06/15/2023 | 4,067 | 4,338,897 | |||||||||||
Interoute Finco PLC (Luxembourg)(h)(i) |
6.25 | % | 10/15/2020 | EUR | 300 | 338,065 | ||||||||||
Micron Technology, Inc.(h) |
7.50 | % | 09/15/2023 | 2,590 | 2,881,375 | |||||||||||
Veritas US Inc.(h) |
7.50 | % | 02/01/2023 | EUR | 4,093 | 4,428,571 | ||||||||||
14,103,623 | ||||||||||||||||
Financial Intermediaries4.46% | ||||||||||||||||
Arrow Global Finance (United Kingdom)(h)(i) |
4.99 | % | 11/01/2021 | EUR | 4,750 | 5,380,938 | ||||||||||
Cabot Financial S.A. (Luxembourg)(h)(i) |
5.88 | % | 11/15/2021 | EUR | 2,500 | 2,688,514 | ||||||||||
Cabot Financial S.A. (Luxembourg)(h) |
6.50 | % | 04/01/2021 | GBP | 8,560 | 10,875,240 | ||||||||||
Garfunkelux Holdco 3 S.A. (Luxembourg)(h) |
7.50 | % | 08/01/2022 | EUR | 4,725 | 5,473,021 | ||||||||||
Garfunkelux Holdco 3 S.A. (Luxembourg)(h) |
11.00 | % | 11/01/2023 | GBP | 7,400 | 9,850,918 | ||||||||||
Lindorff Group AB (Norway)(h)(i) |
5.50 | % | 08/15/2020 | EUR | 3,587 | 4,022,126 | ||||||||||
Lindorff Group AB (Norway)(h) |
9.50 | % | 08/15/2022 | EUR | 3,402 | 4,018,463 | ||||||||||
42,309,220 | ||||||||||||||||
Food & Drug Retailers0.47% | ||||||||||||||||
Adria Group Holding B.V. (Netherlands)(h)(i) |
4.95 | % | 08/08/2017 | EUR | 4,000 | 4,439,572 | ||||||||||
Food Products0.03% | ||||||||||||||||
Wagamama Finance PLC (United Kingdom)(h) |
7.88 | % | 02/01/2020 | GBP | 210 | 293,824 | ||||||||||
Health Care2.18% | ||||||||||||||||
Care UK Health & Social Care PLC (United Kingdom)(h)(i) |
5.53 | % | 07/15/2019 | GBP | 4,029 | 4,682,251 | ||||||||||
DJO Finance LLC(h) |
8.13 | % | 06/15/2021 | 2,144 | 1,897,440 | |||||||||||
DJO Finance LLC(h) |
10.75 | % | 04/15/2020 | 3,041 | 2,516,427 | |||||||||||
IDH Finance PLC (United Kingdom)(h) |
6.25 | % | 08/15/2022 | GBP | 4,295 | 5,635,182 | ||||||||||
IDH Finance PLC (United Kingdom)(h)(i) |
6.41 | % | 08/15/2022 | GBP | 3,500 | 4,573,043 | ||||||||||
Kinetic Concepts, Inc.(h) |
7.88 | % | 02/15/2021 | 229 | 247,893 | |||||||||||
Unilabs SubHolding AB (Sweden)(h)(i) |
7.25 | % | 07/15/2018 | EUR | 1,000 | 1,116,008 | ||||||||||
20,668,244 | ||||||||||||||||
Lodging & Casinos1.57% | ||||||||||||||||
ESH Hospitality, Inc.(h) |
5.25 | % | 05/01/2025 | 1,833 | 1,842,165 | |||||||||||
Schumann S.p.A. (Italy)(h)(i) |
6.63 | % | 07/31/2022 | EUR | 2,860 | 3,198,562 | ||||||||||
Schumann S.p.A. (Italy)(h) |
7.00 | % | 07/31/2023 | EUR | 681 | 784,292 | ||||||||||
Travelodge Hotels Ltd. (United Kingdom)(h)(i) |
7.89 | % | 05/15/2023 | GBP | 5,203 | 6,796,884 | ||||||||||
Travelodge Hotels Ltd. (United Kingdom)(h) |
8.50 | % | 05/15/2023 | GBP | 1,625 | 2,280,038 | ||||||||||
14,901,941 |
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 | |||||||||||||
Nonferrous Metals & Minerals0.54% | ||||||||||||||||
TiZir Ltd. (United Kingdom) |
9.00 | % | 09/28/2017 | $ | 6,200 | $ | 5,115,000 | |||||||||
Oil & Gas0.25% | ||||||||||||||||
Drill Rigs Holdings Inc.(h) |
6.50 | % | 10/01/2017 | 4,342 | 1,427,432 | |||||||||||
FTS International, Inc.(h)(i) |
8.15 | % | 06/15/2020 | 1,207 | 986,723 | |||||||||||
2,414,155 | ||||||||||||||||
Radio & Television0.32% | ||||||||||||||||
Clear Channel International B.V.(h) |
8.75 | % | 12/15/2020 | 2,883 | 3,070,395 | |||||||||||
Retailers (except Food & Drug)1.96% | ||||||||||||||||
Claires Stores Inc.(h) |
6.13 | % | 03/15/2020 | 734 | 400,030 | |||||||||||
Matalan (United Kingdom)(h) |
6.88 | % | 06/01/2019 | GBP | 403 | 427,328 | ||||||||||
New Look PLC (United Kingdom)(h) |
8.00 | % | 07/01/2023 | GBP | 8,500 | 9,989,784 | ||||||||||
Targus Group International, Inc., PIK (Acquired 12/16/2009-12/14/2015; Cost $6,083,868)(f)(h)(j) |
10.00 | % | 06/14/2019 | 2,725 | 0 | |||||||||||
TWIN SET Simona Barbieri S.p.A. (Italy)(h)(i) |
5.58 | % | 07/15/2019 | EUR | 7,250 | 7,825,399 | ||||||||||
18,642,541 | ||||||||||||||||
Steel0.02% | ||||||||||||||||
Fortescue Metals Group Ltd.(h) |
9.75 | % | 03/01/2022 | 172 | 199,520 | |||||||||||
Surface Transport0.10% | ||||||||||||||||
WFS Global Holding SAS (France)(h) |
12.50 | % | 12/30/2022 | EUR | 1,000 | 953,766 | ||||||||||
Telecommunications1.97% | ||||||||||||||||
Cellnex Telecom SAU (Spain)(h) |
2.38 | % | 01/16/2024 | EUR | 1,700 | 1,960,928 | ||||||||||
Communications Sales & Leasing, Inc.(h) |
6.00 | % | 04/15/2023 | 842 | 886,205 | |||||||||||
Goodman Networks Inc. |
12.13 | % | 07/01/2018 | 4,887 | 2,419,065 | |||||||||||
Wind Telecomunicazioni S.p.A. (Italy)(h) |
7.00 | % | 04/23/2021 | EUR | 8,835 | 10,286,159 | ||||||||||
Wind Telecomunicazioni S.p.A. (Italy)(h) |
7.38 | % | 04/23/2021 | 500 | 518,750 | |||||||||||
Windstream Services, LLC |
6.38 | % | 08/01/2023 | 20 | 18,150 | |||||||||||
Windstream Services, LLC |
7.50 | % | 06/01/2022 | 2,709 | 2,624,344 | |||||||||||
18,713,601 | ||||||||||||||||
Utilities0.05% | ||||||||||||||||
Calpine Corp.(h) |
6.00 | % | 01/15/2022 | 430 | 452,575 | |||||||||||
Calpine Corp.(h) |
7.88 | % | 01/15/2023 | 1 | 156 | |||||||||||
452,731 | ||||||||||||||||
Total Bonds & Notes |
262,281,117 | |||||||||||||||
Structured Products8.16% |
||||||||||||||||
Adagio V CLO Ltd. (Ireland)(h)(i) |
6.70 | % | 10/15/2029 | EUR | 786 | 863,585 | ||||||||||
ALME Loan Funding V B.V. (Ireland)(h)(i) |
6.00 | % | 07/15/2029 | EUR | 1,250 | 1,308,588 | ||||||||||
Apidos Cinco CDO(h)(i) |
5.07 | % | 05/14/2020 | 930 | 930,973 | |||||||||||
Apidos CLO IX(h)(i) |
6.78 | % | 07/15/2023 | 1,304 | 1,304,442 | |||||||||||
Apidos CLO X(h)(i) |
7.01 | % | 10/30/2022 | 955 | 957,348 | |||||||||||
Apidos CLO XI(h)(i) |
5.93 | % | 01/17/2023 | 2,756 | 2,578,105 | |||||||||||
Apidos CLO XV(h)(i) |
5.45 | % | 10/20/2025 | 1,000 | 905,491 | |||||||||||
Atrium X LLC(h)(i) |
5.18 | % | 07/16/2025 | 750 | 663,852 | |||||||||||
Avoca CLO XII Ltd. (Italy)(h)(i) |
5.21 | % | 10/15/2027 | EUR | 1,000 | 1,054,575 | ||||||||||
Avoca CLO XIV Ltd. (United Kingdom)(h)(i) |
4.75 | % | 07/12/2028 | EUR | 1,750 | 1,782,062 | ||||||||||
Avoca CLO XV Ltd. (United Kingdom)(h)(i) |
5.00 | % | 01/15/2029 | EUR | 1,000 | 1,007,689 | ||||||||||
Avoca CLO XVI Ltd. (United Kingdom)(h)(i) |
6.25 | % | 07/15/2029 | EUR | 2,235 | 2,365,519 | ||||||||||
Babson CLO Ltd. 2013-II(h)(i) |
5.18 | % | 01/18/2025 | 2,365 | 2,134,854 |
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 | |||||||||||||
Structured Products-(continued) | ||||||||||||||||
Babson Euro CLO 2014-1 B.V. (Netherlands)(h)(i) |
4.31 | % | 04/15/2027 | EUR | 2,000 | $ | 2,009,041 | |||||||||
Bosphorus CLO II (Ireland)(h)(i) |
8.75 | % | 10/15/2025 | EUR | 1,250 | 1,356,020 | ||||||||||
Cairn CLO VI B.V. (Netherlands)(h)(i) |
6.25 | % | 07/25/2029 | EUR | 1,898 | 2,045,533 | ||||||||||
Callidus MAPS CLO Fund II, Ltd.(h)(i) |
4.95 | % | 07/20/2022 | $ | 1,002 | 992,439 | ||||||||||
Carlyle Global Market Strategies CLO 2012-2 Ltd.(h)(i) |
6.80 | % | 07/20/2023 | 2,174 | 2,178,750 | |||||||||||
Carlyle Global Market Strategies CLO 2012-3 Ltd.(h)(i) |
6.17 | % | 10/04/2024 | 623 | 614,146 | |||||||||||
Carlyle Global Market Strategies CLO 2013-1 Ltd.(h)(i) |
6.32 | % | 02/14/2025 | 1,200 | 1,175,736 | |||||||||||
Carlyle High Yield Partners X, Ltd.(h)(i) |
3.89 | % | 04/19/2022 | 504 | 479,588 | |||||||||||
Centurion CDO 15 Ltd.(h)(i) |
2.91 | % | 03/11/2021 | 2,750 | 2,613,849 | |||||||||||
Duane Street CLO 2007-4(h)(i) |
5.07 | % | 11/14/2021 | 407 | 386,796 | |||||||||||
Elm Park CLO, Ltd.(h)(i) |
6.40 | % | 04/16/2029 | EUR | 2,000 | 2,223,731 | ||||||||||
Euro Galaxy 2013-3 (Netherlands)(h)(i) |
5.20 | % | 01/17/2027 | EUR | 1,579 | 1,640,211 | ||||||||||
Flagship CLO VI(h)(i) |
5.41 | % | 06/10/2021 | 922 | 885,083 | |||||||||||
Flagship CLO VI(h)(i) |
5.41 | % | 06/10/2021 | 3,085 | 2,960,100 | |||||||||||
Gallatin Funding Ltd.(h)(i) |
6.35 | % | 07/15/2023 | 1,838 | 1,702,251 | |||||||||||
Halcyon Loan Investors CLO II, Ltd.(h)(i) |
4.31 | % | 04/24/2021 | 2,121 | 2,088,406 | |||||||||||
ING Investment Management CLO 2012-4, Ltd.(h)(i) |
6.43 | % | 10/15/2023 | 4,765 | 4,704,428 | |||||||||||
ING Investment Management CLO 2013-3, Ltd.(h)(i) |
5.18 | % | 01/18/2026 | 1,573 | 1,364,738 | |||||||||||
ING Investment Management CLO III, Ltd.(h)(i) |
4.18 | % | 12/13/2020 | 1,842 | 1,844,293 | |||||||||||
ING Investment Management CLO IV, Ltd.(h)(i) |
4.96 | % | 06/14/2022 | 395 | 378,453 | |||||||||||
Inwood Park CLO Ltd.(h)(i) |
4.20 | % | 01/20/2021 | 1,000 | 986,687 | |||||||||||
Keuka Park CLO 2013-1(h)(i) |
5.20 | % | 10/21/2024 | 328 | 287,125 | |||||||||||
KKR Financial CLO 2012-1, Ltd.(h)(i) |
6.15 | % | 12/15/2024 | 4,900 | 4,723,246 | |||||||||||
Madison Park Funding IX, Ltd.(h)(i) |
6.07 | % | 08/15/2022 | 450 | 440,533 | |||||||||||
Madison Park Funding X, Ltd.(h)(i) |
5.95 | % | 01/20/2025 | 1,185 | 1,155,523 | |||||||||||
Madison Park Funding XIV, Ltd.(h)(i) |
5.45 | % | 07/20/2026 | 750 | 664,700 | |||||||||||
Madison Park Funding XIV, Ltd.(h)(i) |
6.10 | % | 07/20/2026 | 1,060 | 815,143 | |||||||||||
Northwoods Capital X Ltd.(h)(i) |
4.37 | % | 11/04/2025 | 692 | 647,756 | |||||||||||
Octagon Investment Partners XIV Ltd.(h)(i) |
5.93 | % | 01/15/2024 | 725 | 674,433 | |||||||||||
Octagon Investment Partners XIX Ltd.(h)(i) |
5.53 | % | 04/15/2026 | 1,639 | 1,354,767 | |||||||||||
Octagon Investment Partners XVIII Ltd.(h)(i) |
6.07 | % | 12/16/2024 | 2,365 | 2,142,946 | |||||||||||
Orwell Park CLO Ltd.(h)(i) |
4.45 | % | 07/18/2029 | EUR | 1,125 | 1,113,043 | ||||||||||
Pacifica CDO VI, Ltd.(h)(i) |
4.57 | % | 08/15/2021 | 1,538 | 1,537,027 | |||||||||||
Regatta IV Funding Ltd. 2014-1(h)(i) |
5.66 | % | 07/25/2026 | 1,000 | 813,750 | |||||||||||
Silverado CLO 2006-II Ltd.(h)(i) |
4.43 | % | 10/16/2020 | 2,050 | 1,898,514 | |||||||||||
St. James River CLO Ltd. 2007-1(h)(i) |
4.96 | % | 06/11/2021 | 294 | 294,308 | |||||||||||
St. Pauls IV CLO (Ireland)(h)(i) |
4.50 | % | 04/25/2028 | EUR | 1,000 | 1,010,018 | ||||||||||
St. Pauls IV CLO (Ireland)(h)(i) |
5.70 | % | 04/25/2028 | EUR | 500 | 450,751 | ||||||||||
Symphony CLO VIII, Ltd.(h)(i) |
6.47 | % | 01/09/2023 | 3,116 | 3,130,222 | |||||||||||
Symphony CLO XI, Ltd.(h)(i) |
5.93 | % | 01/17/2025 | 1,030 | 949,328 | |||||||||||
TriMaran CLO VII Ltd.(h)(i) |
4.05 | % | 06/15/2021 | 926 | 846,558 | |||||||||||
Total Structured Products |
77,437,053 | |||||||||||||||
Shares | ||||||||||||||||
Common Stocks & Other Equity Interests5.58%(k) |
||||||||||||||||
Aerospace & Defense0.03% | ||||||||||||||||
IAP Worldwide Services(h)(l) |
221 | 275,782 | ||||||||||||||
Building & Development0.76% | ||||||||||||||||
Axia Acquisition Corp. (Acquired 03/19/2010; Cost $1,404,030)(h)(l) |
101 | 902,023 | ||||||||||||||
BMC Stock Holdings, Inc.(l) |
267,933 | 5,342,584 | ||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class A (Acquired 07/15/2010; Cost $24,140,508)(h)(l) |
2,339 | 0 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
19 Invesco Dynamic Credit Opportunities Fund
Shares | Value | |||||||||||||||
Building & Development(continued) | ||||||||||||||||
Lake at Las Vegas Joint Venture, LLC, Class B (Acquired 07/15/2010; Cost $285,788)(h)(l) |
28 | $ | 0 | |||||||||||||
Newhall Holding Co., LLC, Class A(h)(l) |
237,569 | 623,619 | ||||||||||||||
Tamarack Resort LLC (Acquired 03/07/2014; Cost $0)(h)(l) |
10,076 | 0 | ||||||||||||||
WCI Communities, Inc.(l) |
18,849 | 354,738 | ||||||||||||||
7,222,964 | ||||||||||||||||
Chemicals & Plastics0.00% | ||||||||||||||||
LyondellBasell Industries N.V., Class A |
344 | 27,138 | ||||||||||||||
Conglomerates0.01% | ||||||||||||||||
Euramax International, Inc.(h)(l) |
1,870 | 130,886 | ||||||||||||||
Drugs0.00% | ||||||||||||||||
BPA Laboratories, Class A, Wts. expiring 04/29/2024 (Acquired 04/29/2014; Cost $0)(h)(l) |
4,658 | 0 | ||||||||||||||
BPA Laboratories, Class B, Wts. expiring 04/29/2024 (Acquired 04/29/2014; Cost $0)(h)(l) |
7,468 | 0 | ||||||||||||||
0 | ||||||||||||||||
Financial Intermediaries0.00% | ||||||||||||||||
RJO Holdings Corp.(h)(l) |
2,144 | 21,441 | ||||||||||||||
RJO Holdings Corp., Class A(h)(l) |
1,142 | 571 | ||||||||||||||
RJO Holdings Corp., Class B(h)(l) |
3,333 | 1,667 | ||||||||||||||
23,679 | ||||||||||||||||
Forest Products0.04% | ||||||||||||||||
Verso Corp., Class A(l) |
61,544 | 388,343 | ||||||||||||||
Health Care0.01% | ||||||||||||||||
New Millennium Holdco, Inc.(h)(l) |
148,019 | 112,198 | ||||||||||||||
Leisure Goods, Activities & Movies0.65% | ||||||||||||||||
Metro-Goldwyn-Mayer Inc., Class A(h)(l) |
75,602 | 6,054,435 | ||||||||||||||
Lodging & Casinos0.33% | ||||||||||||||||
Twin River Worldwide Holdings, Inc.(h)(l) |
41,966 | 3,126,467 | ||||||||||||||
Nonferrous Metals & Minerals0.00% | ||||||||||||||||
Levantina Group (Spain) (Acquired 04/29/2014-06/24/2015; Cost $0)(h)(l) |
36,932 | 0 | ||||||||||||||
Oil & Gas0.00% | ||||||||||||||||
Seventy Seven Operating LLC(l) |
200 | 3,250 | ||||||||||||||
Seventy Seven Operating LLC, Wts. expiring 08/01/2021(h)(l) |
1,087 | 3,804 | ||||||||||||||
7,054 | ||||||||||||||||
Publishing0.52% | ||||||||||||||||
Affiliated Media, Inc.(h)(l) |
87,369 | 2,402,642 | ||||||||||||||
Merrill Communications LLC, Class A(h)(l) |
602,134 | 2,408,536 | ||||||||||||||
Tronc, Inc. |
6,064 | 102,785 | ||||||||||||||
4,913,963 | ||||||||||||||||
Retailers (except Food & Drug)0.00% | ||||||||||||||||
Targus Group International, Inc. (Acquired 12/16/2009; Cost $0)(h)(j)(l) |
62,413 | 0 | ||||||||||||||
Surface Transport3.23% | ||||||||||||||||
Nobina Europe AB (Sweden)(l) |
4,969,706 | 30,622,907 | ||||||||||||||
Utilities0.00% | ||||||||||||||||
Bicent Power, LLC Series A, Wts. expiring 08/21/2022 (Acquired 08/21/2012; Cost $0)(h)(l) |
2,024 | 0 | ||||||||||||||
Bicent Power, LLC Series B, Wts. expiring 08/21/2022 (Acquired 08/21/2012; Cost $0)(h)(l) |
3,283 | 0 | ||||||||||||||
0 | ||||||||||||||||
Total Common Stocks & Other Equity Interests |
52,905,816 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
20 Invesco Dynamic Credit Opportunities Fund
Shares | Value | |||||||||||||||
Preferred Stocks0.00%(k) |
||||||||||||||||
Building & Development0.00% | ||||||||||||||||
Tamarack Resort LLC , Class B (Acquired 03/07/2014; Cost $42,952)(h) |
182 | $ | 0 | |||||||||||||
United Subcontractors, Inc.(h)(l) |
2 | 50 | ||||||||||||||
50 | ||||||||||||||||
Financial Intermediaries0.00% | ||||||||||||||||
RJO Holdings Corp.(h)(l) |
649 | 42,178 | ||||||||||||||
Retailers (except Food & Drug)0.00% | ||||||||||||||||
Vivarte (France) (Acquired 10/29/2014-01/06/2016; Cost $0)(h)(l) |
5,748 | 0 | ||||||||||||||
Total Preferred Stocks |
42,228 | |||||||||||||||
Money Market Funds7.49% |
||||||||||||||||
Liquid Assets PortfolioInstitutional Class, 0.38%(m) |
35,519,889 | 35,519,889 | ||||||||||||||
Premier PortfolioInstitutional Class, 0.37%(m) |
35,519,888 | 35,519,888 | ||||||||||||||
Total Money Market Funds |
71,039,777 | |||||||||||||||
TOTAL INVESTMENTS(n)150.04% (Cost $1,493,334,100) |
1,423,536,949 | |||||||||||||||
BORROWINGS(31.09)% |
(295,000,000 | ) | ||||||||||||||
VARIABLE RATE TERM PREFERRED SHARES(13.15)% |
(124,795,033 | ) | ||||||||||||||
OTHER ASSETS LESS LIABILITIES(5.80)% |
(54,983,340 | ) | ||||||||||||||
NET ASSETS100.00% |
$ | 948,758,576 |
Investment Abbreviations:
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. Variable rate senior loan interests in the Funds portfolio generally have variable rates which adjust to a base, such as the London Interbank 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 variable rate senior loan interests will have an expected average life of three to five years. |
(c) | This variable rate interest will settle after August 31, 2016, 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) | Defaulted security. Currently, the issuer is partially or fully in default with respect to principal and/or interest payments. The aggregate value of these securities at August 31, 2016 was $5,268,371, which represented less than 1% of the Funds Net Assets. |
(f) | All or a portion of this security is Payment-in-Kind. |
Issuer | Cash Rate | PIK Rate | ||||||
Cortefiel, S.A., PIK Term Loan B-1 |
4.25 | % | 1.00 | % | ||||
Cortefiel, S.A., PIK Term Loan B-2 |
4.25 | 1.00 | ||||||
Cortefiel, S.A., PIK Term Loan B-3 |
4.25 | 1.00 | ||||||
Cortefiel, S.A., PIK Term Loan B-3 |
5.65 | 1.00 | ||||||
Lake at Las Vegas Joint Venture, LLC, PIK Exit Revolver Loan |
| 5.00 | ||||||
Levantina Group, PIK Term Loan |
| 10.00 | ||||||
Tamarack Resort LLC, PIK Term Loan A |
4.00 | 12.00 | ||||||
Tamarack Resort LLC, PIK Term Loan B |
0.00 | 6.50 | ||||||
Targus Group International, Inc., PIK |
| 10.00 |
(g) | The borrower has filed for protection in federal bankruptcy court. |
(h) | Security purchased or received in a transaction exempt from registration under 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, 2016 was $336,510,079, which represented 35.47% of the Funds Net Assets. |
(i) | Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
21 Invesco Dynamic Credit Opportunities Fund
(j) | Affiliated company during the period. The Investment Company Act of 1940 defines an affiliated person as an issuance 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, 2016 was $0, which represented less than 1% of the Funds Net Assets. See Note 5. |
(k) | Securities acquired through the restructuring of senior loans. |
(l) | Non-income producing security. |
(m) | The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of August 31, 2016. |
(n) | Calculated as a percentage of net assets. Amounts in excess of 100% are due to the Trusts use of leverage. |
* | Principal amounts are denominated in U.S. dollars unless otherwise noted. |
Portfolio Composition+*
By credit quality, based on Total Investments
as of August 31, 2016
BBB+ |
0.4 | % | ||
BBB |
2.0 | |||
BBB- |
3.7 | |||
BB+ |
2.7 | |||
BB |
15.1 | |||
BB- |
10.5 | |||
B+ |
13.5 | |||
B |
14.6 | |||
B- |
7.4 | |||
CCC+ |
11.0 | |||
CCC |
2.5 | |||
CCC- |
0.9 | |||
D |
1.0 | |||
Non-Rated |
10.8 | |||
Equity |
3.9 |
+ | 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. |
* | Excluding money market fund holdings. |
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, 2016
(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, 2016
(Unaudited)
Investment income: |
| |||
Interest |
$ | 44,922,662 | ||
Dividends (net of foreign withholding taxes of $233,468) |
1,276,260 | |||
Interest and dividends from affiliates |
189,631 | |||
Other income |
998,622 | |||
Total investment income |
47,387,175 | |||
Expenses: |
||||
Advisory fees |
8,346,567 | |||
Administrative services fees |
108,572 | |||
Custodian fees |
238,915 | |||
Interest, facilities and maintenance fees |
3,662,253 | |||
Transfer agent fees |
31,006 | |||
Trustees and officers fees and benefits |
14,395 | |||
Registration and filing fees |
57,059 | |||
Reports to shareholders |
56,006 | |||
Professional services fees |
159,378 | |||
Other |
41,089 | |||
Total expenses |
12,715,240 | |||
Less: Fees waived |
(14,291 | ) | ||
Net expenses |
12,700,949 | |||
Net investment income |
34,686,226 | |||
Realized and unrealized gain (loss): |
||||
Net realized gain (loss) from: |
||||
Investment securities |
(3,686,484 | ) | ||
Foreign currencies |
(3,093,295 | ) | ||
Forward foreign currency contracts |
19,688,860 | |||
12,909,081 | ||||
Change in net unrealized appreciation (depreciation) of: |
||||
Investment securities |
98,688,687 | |||
Foreign currencies |
(329,506 | ) | ||
Forward foreign currency contracts |
(16,939,894 | ) | ||
81,419,287 | ||||
Net realized and unrealized gain |
94,328,368 | |||
Net increase in net assets from operations applicable to common shares |
$ | 129,014,594 |
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, 2016 and the year ended February 29, 2016
(Unaudited)
August 31, 2016 |
February 29, 2016 |
|||||||
Operations: |
| |||||||
Net investment income |
$ | 34,686,226 | $ | 72,220,670 | ||||
Net realized gain (loss) |
12,909,081 | (36,055,204 | ) | |||||
Change in net unrealized appreciation (depreciation) |
81,419,287 | (100,191,734 | ) | |||||
Net increase (decrease) in net assets from operations applicable to common shareholders |
129,014,594 | (64,026,268 | ) | |||||
Distributions to common shareholders from net investment income |
(33,342,428 | ) | (41,491,092 | ) | ||||
Return of capital applicable to common shareholders |
| (25,193,764 | ) | |||||
Net increase (decrease) in net assets applicable to common shares |
95,672,166 | (130,711,124 | ) | |||||
Net assets applicable to common shares: |
| |||||||
Beginning of period |
853,086,410 | 983,797,534 | ||||||
End of period (includes undistributed net investment income of $(10,398,751) and $(11,742,549), respectively) |
$ | 948,758,576 | $ | 853,086,410 |
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, 2016
(Unaudited)
Cash provided by operating activities: |
||||
Net increase in net assets resulting from operations |
$ | 129,014,594 | ||
Adjustments to reconcile the change in net assets applicable to common shares from operations to net cash provided by operating activities: |
| |||
Purchases of investments |
(580,024,006 | ) | ||
Proceeds from sales of investments |
638,449,615 | |||
Net change in unfunded loan commitments |
(16,336,320 | ) | ||
Net change in transactions in forward foreign currency contracts |
16,939,894 | |||
Amortization of loan fees |
(759,309 | ) | ||
Increase in interest receivables and other assets |
(233,605 | ) | ||
Accretion of discounts on investment securities |
(4,295,392 | ) | ||
Increase in accrued expenses and other payables |
255,433 | |||
Net realized loss from investment securities |
3,686,484 | |||
Net change in unrealized appreciation on investment securities |
(98,688,687 | ) | ||
Net cash provided by operating activities |
88,008,701 | |||
Cash provided by (used in) financing activities: |
||||
Dividends paid to shareholders |
(33,323,615 | ) | ||
Proceeds from borrowings |
30,000,000 | |||
Net cash provided by (used in) financing activities |
(3,323,615 | ) | ||
Net increase in cash and cash equivalents |
84,685,086 | |||
Cash and cash equivalents at beginning of period |
20,473,826 | |||
Cash and cash equivalents at end of period |
$ | 105,158,912 | ||
Supplemental disclosure of cash flow information: |
||||
Cash paid during the period for interest, facilities and maintenance fees |
$ | 3,715,395 |
Notes to Financial Statements
August 31, 2016
(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 asked 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 asked prices. For purposes of determining net asset value (NAV) 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).
26 Invesco Dynamic Credit Opportunities Fund
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.
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, if available, 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, company performance and returns of referenced assets.
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/asked 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 Fund 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 the Statement of Changes in Net Assets, or the net investment income per share and the 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. |
27 Invesco Dynamic Credit Opportunities Fund
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. |
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 floating rate note obligations, if any. |
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, 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 between two parties (Counterparties) 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. | Industry Focus To the extent that the Fund invests a greater amount of its assets 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. |
N. | Bank Loan Risk 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, which may impair the Funds ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. 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 fail to or be unable to perform on its commitments. The Fund seeks to manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. |
O. | 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. |
P. | Other Risks The Fund may invest all or substantially of its assets in senior secured floating rate loans and senior secured debt securities that are determined to be 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.
Q. | Leverage Risk The Fund may utilize leverage to seek to enhance the yield of the Fund 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 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 Affiliated Sub-Adviser(s).
The Adviser has contractually agreed, through at least June 30, 2018, 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, 2016, the Adviser waived advisory fees of $14,291.
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, 2016, 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.
29 Invesco Dynamic Credit Opportunities Fund
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. |
The following is a summary of the tiered valuation input levels, as of August 31, 2016. 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.
During the six months ended August 31, 2016, there were transfers from Level 3 to Level 2 of $31,050,083, due to third-party vendor quotations utilizing more than one market quote and from Level 2 to Level 3 of $27,728,801, due to third party vendor quotations utilizing single market quotes.
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Variable Rate Senior Loan Interests |
$ | | $ | 847,585,209 | $ | 112,245,749 | $ | 959,830,958 | ||||||||
Bonds & Notes |
| 255,030,690 | 7,250,427 | 262,281,117 | ||||||||||||
Structured Products |
| 77,437,053 | | 77,437,053 | ||||||||||||
Equity Securities |
107,878,272 | 9,923,773 | 6,185,776 | 123,987,821 | ||||||||||||
107,878,272 | 1,189,976,725 | 125,681,952 | 1,423,536,949 | |||||||||||||
Forward Foreign Currency Contracts* |
| (822,317 | ) | | (822,317 | ) | ||||||||||
Total Investments |
$ | 107,878,272 | $ | 1,189,154,408 | $ | 125,681,952 | $ | 1,422,714,632 |
* | 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, 2016:
Value 02/29/16 |
Purchases | Sales | Accrued Discounts/ Premiums |
Net Realized Gain |
Net Change in Unrealized Appreciation |
Transfers into Level 3 |
Transfers out of Level 3 |
Value 08/31/16 |
||||||||||||||||||||||||||||
Variable Rate Senior Loan Interests |
$ | 121,544,132 | $ | 28,053,775 | $ | (51,116,255 | ) | $ | 500,687 | $ | 1,069,713 | $ | 851,210 | $ | 25,320,265 | $ | (13,977,778 | ) | $ | 112,245,749 | ||||||||||||||||
Bonds & Notes |
16,349,408 | 7,101,199 | (137,971 | ) | 28,101 | | 981,995 | | (17,072,305 | ) | 7,250,427 | |||||||||||||||||||||||||
Equity Securities |
3,731,621 | | | | | 45,619 | 2,408,536 | | 6,185,776 | |||||||||||||||||||||||||||
Total |
$ | 141,625,161 | $ | 35,154,974 | $ | (51,254,226 | ) | $ | 528,788 | $ | 1,069,713 | $ | 1,878,824 | $ | 27,728,801 | $ | (31,050,083 | ) | $ | 125,681,952 |
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, 2016:
Value | ||||||||
Risk Exposure/Derivative Type | Assets | Liabilities | ||||||
Currency risk: |
||||||||
Forward foreign currency contracts(a) |
$ | 388,910 | $ | (1,211,227 | ) |
(a) | Values are disclosed on the Statement of Assets and Liabilities under the caption Unrealized appreciation on forward foreign currency contracts outstanding and Unrealized depreciation on forward foreign currency contracts outstanding. |
30 Invesco Dynamic Credit Opportunities Fund
Effect of Derivative Investments for the six months ended August 31, 2016
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
Location of Gain (Loss) on Statement of Operations |
||||
Forward Foreign Currency Contracts |
||||
Realized Gain: |
||||
Currency risk |
$ | 19,688,860 | ||
Change in Net Unrealized Appreciation (Depreciation): |
||||
Currency risk |
(16,939,894 | ) | ||
Total |
$ | 2,748,966 |
The table below summarizes the average notional value of forward foreign currency contracts outstanding during the period.
Forward Foreign Currency Contracts |
||||
Average notional value |
$ | 394,015,124 |
Open Forward Foreign Currency Contracts | ||||||||||||||||||||||||||
Settlement Date
|
Counterparty |
Contract to | Notional Value |
Unrealized Appreciation (Depreciation) |
||||||||||||||||||||||
Deliver | Receive | |||||||||||||||||||||||||
09/15/16 |
Barclays Bank PLC | EUR | 70,000,000 | USD | 78,093,050 | $ | 78,122,097 | $ | (29,047 | ) | ||||||||||||||||
09/15/16 |
Goldman Sachs & Co. | EUR | 81,881,752 | USD | 91,380,854 | 91,382,488 | (1,634 | ) | ||||||||||||||||||
09/15/16 |
JPMorgan Chase & Co. | EUR | 70,000,000 | USD | 78,100,400 | 78,122,097 | (21,697 | ) | ||||||||||||||||||
09/15/16 |
Citibank, N.A. | GBP | 25,000,000 | USD | 32,429,950 | 32,837,731 | (407,781 | ) | ||||||||||||||||||
09/15/16 |
Goldman Sachs & Co. | GBP | 24,202,373 | USD | 31,419,279 | 31,790,041 | (370,762 | ) | ||||||||||||||||||
09/15/16 |
JPMorgan Chase & Co. | GBP | 23,000,000 | USD | 29,842,615 | 30,210,713 | (368,098 | ) | ||||||||||||||||||
09/15/16 |
Citibank, N.A. | SEK | 132,256,249 | USD | 15,648,812 | 15,458,501 | 190,311 | |||||||||||||||||||
09/15/16 |
Goldman Sachs & Co. | SEK | 142,000,000 | USD | 16,795,978 | 16,597,379 | 198,599 | |||||||||||||||||||
09/15/16 |
Citibank, N.A. | USD | 596,623 | SEK | 5,000,000 | 584,415 | (12,208 | ) | ||||||||||||||||||
Total forward foreign currency contracts currency risk |
$ | (822,317 | ) |
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 the Funds 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.
31 Invesco Dynamic Credit Opportunities Fund
The following tables present derivative instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements as of August 31, 2016.
Gross amounts of Recognized Assets |
Gross Amounts Not Offset in the Statement of Assets and Liabilities |
|||||||||||||||||||
Financial Instruments |
Collateral Received | Net Amount |
||||||||||||||||||
Counterparty | Non-Cash | Cash | ||||||||||||||||||
Citibank, N.A. |
$ | 190,311 | $ | (190,311 | ) | $ | | $ | | $ | | |||||||||
Goldman Sachs & Co. |
198,599 | (198,599 | ) | | | | ||||||||||||||
Total |
$ | 388,910 | $ | (388,910 | ) | $ | | $ | | $ | | |||||||||
Gross amounts of Recognized Liabilities |
Gross Amounts Not Offset in the Statement of Assets and Liabilities |
|||||||||||||||||||
Financial Instruments |
Collateral Pledged | Net Amount |
||||||||||||||||||
Counterparty | Non-Cash | Cash | ||||||||||||||||||
Barclays Bank PLC |
$ | 29,047 | $ | | $ | | $ | | $ | 29,047 | ||||||||||
Citibank, N.A. |
419,989 | (190,311 | ) | | | 229,678 | ||||||||||||||
Goldman Sachs & Co. |
372,396 | (198,599 | ) | | | 173,797 | ||||||||||||||
JPMorgan Chase & Co. |
389,795 | | | | 389,795 | |||||||||||||||
Total |
$ | 1,211,227 | $ | (388,910 | ) | $ | | $ | | $ | 822,317 |
NOTE 5Investments in Other Affiliates
The 1940 Act defines an affiliated person as an issuance 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, 2016.
Value 02/29/16 |
Purchases at Cost |
Proceeds from Sales |
Change in Unrealized Appreciation (Depreciation) |
Realized Gain (Loss) |
Value 08/31/16 |
Interest Income |
||||||||||||||||||||||
Targus Group International, Inc. Notes |
$ | 0 | $ | | $ | | $ | | $ | | $ | 0 | $ | 136,254 | ||||||||||||||
Targus Group International, Inc. Common Shares |
0 | | | | | 0 | | |||||||||||||||||||||
Total |
$ | 0 | $ | | $ | | $ | | $ | | $ | 0 | $ | 136,254 |
NOTE 6Trustees and Officers Fees and Benefits
Trustees and Officers Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees and Officers Fees and Benefits includes amounts accrued by the Fund to fund such deferred compensation amounts.
NOTE 7Cash Balances and Borrowings
The Fund has entered into a $400 million revolving credit and security agreement which will expire on November 18, 2016. The revolving credit and security agreement is secured by the assets of the Fund.
During the six months ended August 31, 2016, the average daily balance of borrowing under the revolving credit and security agreement was $285,054,348 with a weighted interest rate of 0.81%. 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.
32 Invesco Dynamic Credit Opportunities Fund
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, 2016. 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 | |||||||
Accudyne Industries LLC |
Revolver Loan | $ | 3,111,708 | $ | 2,661,692 | |||||
Allied Universal Holdco LLC |
Delayed Draw Term Loan | 420,673 | 420,806 | |||||||
Arch Coal, Inc. |
DIP Term Loan | 2,048,736 | 2,053,858 | |||||||
Chefs Warehouse Parent, LLC |
Delayed Draw Term Loan | 147,712 | 144,758 | |||||||
CJ Holding Co. |
DIP Delayed Draw Term Loan | 152,554 | 156,367 | |||||||
Community Health Systems, Inc. |
Revolver Loan | 1,159,686 | 1,122,367 | |||||||
Delta Air Lines, Inc. |
Revolver Loan | 1,032,274 | 1,016,790 | |||||||
Equinox Holdings Inc. |
Revolver Loan | 1,047,281 | 942,553 | |||||||
Getty Images, Inc. |
Revolver Loan | 4,195,778 | 3,923,053 | |||||||
Hearthside Group Holdings, LLC |
Revolver Loan | 561,580 | 558,377 | |||||||
IAP Worldwide Services |
Revolver Loan | 1,155,523 | 1,132,412 | |||||||
Kenan Advantage Group, Inc. |
Delayed Draw Term Loan | 46,179 | 45,804 | |||||||
Klockner Pentaplast of America, Inc. |
Revolver Loan | EUR 5,000,000 | 5,573,765 | |||||||
Lake at Las Vegas Joint Venture, LLC |
Exit Revolver Loan | 57,342 | 37,273 | |||||||
Post Holdings, Inc. |
Revolver Loan | 2,282,597 | 2,281,171 | |||||||
Scientific Games International, Inc. |
Revolver Loan | 2,561,637 | 2,273,453 | |||||||
THOM Europe S.A.S. |
Revolver Loan | EUR 7,000,000 | 7,808,151 | |||||||
Tunstall Group Finance Ltd. |
Acquisition Facility Loan | GBP 4,000,000 | 4,727,338 | |||||||
$ | 36,879,988 |
* | 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 eight 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 carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund had a capital loss carryforward as of February 29, 2016, which expires as follows:
Capital Loss Carryforward* | ||||||||||||
Expiration | Short-Term | Long-Term | Total | |||||||||
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 |
| 20,763,359 | 20,763,359 | |||||||||
$ | 310,213,405 | $ | 20,763,359 | $ | 330,976,764 |
* | 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. |
33 Invesco Dynamic Credit Opportunities Fund
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, 2016 was $608,933,781 and $623,182,146, 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 |
$ | 63,937,682 | ||
Aggregate unrealized (depreciation) of investment securities |
(141,146,997 | ) | ||
Net unrealized appreciation (depreciation) of investment securities |
$ | (77,209,315 | ) | |
Cost of investments for tax purposes is $1,500,746,264. |
NOTE 11Common Shares of Beneficial Interest
Transactions in common shares of beneficial interest were as follows:
Six months ended August 31, 2016 |
Year ended February 29, 2016 |
|||||||
Beginning shares |
74,094,284 | 74,094,284 | ||||||
Shares issued through dividend reinvestment |
| | ||||||
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 were being amortized over the original 3 year life of the VRTP Shares. In addition, the Fund incurred costs in connection with the extension of the VRTP Shares that are recorded as a deferred charge and are being amortized over the extended term. Amortization of these costs is included in Interest, facilities and maintenance fees on the Statement of Operations, and the unamortized balance is included in the value of Variable rate term preferred shares on the Statement of Assets and Liabilities.
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, 2016 were $125,000,000 and 1.80%, 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.
34 Invesco Dynamic Credit Opportunities Fund
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, 2016, 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 |
$ | 4,195,778 | $ | 3,923,053 | ||||
Citibank, N.A. |
3,111,707 | 2,661,692 | ||||||
Goldman Sachs Lending Partners LLC |
2,282,597 | 2,281,171 | ||||||
Goldman Sachs Lending Partners LLC |
EUR 7,000,000 | 7,808,151 | ||||||
Total |
$ | 16,674,067 |
Currency Abbreviations:
EUR | Euro |
NOTE 14Dividends
The Fund declared the following dividends from net investment income subsequent to August 31, 2016:
Declaration Date | Amount per Share | Record Date | Payable Date | |||||||||
September 1, 2016 |
$ | 0.075 | September 14, 2016 | September 30, 2016 | ||||||||
October 3, 2016 |
$ | 0.075 | October 14, 2016 | October 31, 2016 |
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 August 31, |
Year ended February 29, |
Years ended February 28, | Year ended February 29, |
|||||||||||||||||||||
2016 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Net asset value per common share, beginning of period |
$ | 11.51 | $ | 13.28 | $ | 13.82 | $ | 13.15 | $ | 12.37 | $ | 13.29 | ||||||||||||
Net investment income(a) |
0.47 | 0.97 | 0.92 | 0.84 | 0.91 | 0.84 | ||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) |
1.27 | (1.84 | ) | (0.56 | ) | 0.73 | 0.77 | (0.88 | ) | |||||||||||||||
Total from investment operations |
1.74 | (0.87 | ) | 0.36 | 1.57 | 1.68 | (0.04 | ) | ||||||||||||||||
Dividends from net investment income |
(0.45 | ) | (0.56 | ) | (0.90 | ) | (0.90 | ) | (0.90 | ) | (0.88 | ) | ||||||||||||
Return of capital |
| (0.34 | ) | | | | | |||||||||||||||||
Total distributions |
(0.45 | ) | (0.90 | ) | (0.90 | ) | (0.90 | ) | (0.90 | ) | (0.88 | ) | ||||||||||||
Net asset value per common share, end of period |
$ | 12.80 | $ | 11.51 | $ | 13.28 | $ | 13.82 | $ | 13.15 | $ | 12.37 | ||||||||||||
Market value per common share, end of period |
$ | 11.67 | $ | 9.97 | $ | 12.07 | $ | 12.90 | $ | 13.29 | $ | 11.62 | ||||||||||||
Total return at net asset value(b) |
15.78 | % | (6.03 | )% | 3.29 | % | 12.65 | % | 14.13 | % | 0.35 | % | ||||||||||||
Total return at market value(c) |
21.87 | % | (10.44 | )% | 0.57 | % | 4.04 | % | 23.00 | % | (2.36 | )% | ||||||||||||
Net assets applicable to common shares, end of period (000s omitted) |
$ | 948,759 | $ | 853,086 | $ | 983,798 | $ | 1,024,187 | $ | 974,021 | $ | 916,236 | ||||||||||||
Portfolio turnover rate(d) |
45 | % | 88 | % | 103 | % | 121 | % | 129 | % | 132 | % | ||||||||||||
Ratio/supplement data based on average net assets applicable to common shares outstanding: |
|
|||||||||||||||||||||||
Ratio of expenses |
2.76 | %(e)(f) | 2.68 | %(f) | 2.52 | %(f) | 2.25 | %(f) | 2.09 | %(f) | 2.21 | % | ||||||||||||
Ratio of expenses excluding interest, facilities and maintenance fees |
1.97 | %(e) | 2.01 | % | 1.96 | % | 1.82 | % | 1.72 | % | 1.86 | % | ||||||||||||
Ratio of net investment income |
7.52 | %(e) | 7.61 | % | 6.72 | % | 6.28 | % | 7.15 | % | 6.73 | % | ||||||||||||
Senior indebtedness: |
||||||||||||||||||||||||
Total amount of preferred shares outstanding (000s omitted) |
$ | 125,000 | $ | 125,000 | $ | 125,000 | $ | 125,000 | ||||||||||||||||
Total borrowings (000s omitted) |
$ | 295,000 | $ | 265,000 | $ | 361,000 | $ | 331,000 | $ | 240,000 | $ | 232,000 | ||||||||||||
Asset coverage per $1,000 unit of senior indebtedness(g) |
$ | 4,640 | $ | 4,691 | $ | 4,071 | $ | 4,472 | $ | 5,058 | $ | 4,949 | ||||||||||||
Asset coverage per preferred share(h) |
$ | 859,007 | $ | 782,469 | $ | 887,038 | $ | 919,350 | ||||||||||||||||
Liquidating preference per preferred share |
$ | 100,000 | $ | 100,000 | $ | 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 the common share market price at the beginning of the period indicated, reinvestment of all distributions for the period in accordance with the Trusts 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 and is not annualized for periods less than one year, if applicable. |
(e) | Ratios are annualized and based on average daily net assets applicable to common shares (000s omitted) of $914,673. |
(f) | Includes fee waivers which were less than 0.005% per share. |
(g) | Calculated by subtracting the Funds total liabilities (not including the preferred shares at liquidation value 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. |
(h) | Calculated by subtracting the Funds total liabilities (not including preferred shares at liquidation value) from the Funds total assets and dividing by the total number of preferred shares outstanding. |
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
36 Invesco Dynamic Credit Opportunities Fund
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
A Joint Annual Meeting (Meeting) of Shareholders of Invesco Dynamic Credit Opportunities Fund (the Fund) was held on August 26, 2016. The Meeting was held for the following purposes:
(1) | Election of Trustees by Common Shareholders and Preferred Shareholders voting together as a single class. |
(2) | Election of Trustees by Preferred Shareholders voting as a separate class. |
The results of the voting on the above matters were as follows:
Matters | Votes For | Votes Withheld |
||||||||
(1) | Albert R. Dowden | 67,247,109 | 924,615 | |||||||
Eli Jones | 67,345,725 | 825,999 | ||||||||
Raymond Stickel, Jr. | 67,321,803 | 849,921 | ||||||||
(2) | Prema Mathai-Davis | 1,250 | 0 |
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. |
PricewaterhouseCoopers LLP informed the Trust that it has identified an issue related to its independence under Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the Loan Rule). The Loan Rule prohibits accounting firms, such as PricewaterhouseCoopers LLP, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm.
The Loan Rule specifically provides that an accounting firm would not be independent if it receives a loan from a lender that is a record or beneficial owner of more than ten percent of an audit clients equity securities. For purposes of the Loan Rule, audit clients include the Funds as well as all registered investment companies advised by the Adviser and its affiliates, including other subsidiaries of the Advisers parent company, Invesco Ltd. (collectively, the Invesco Fund Complex). PricewaterhouseCoopers LLP informed the Trust it has relationships with lenders who hold, as record owner, more than ten percent of the shares of certain funds within the Invesco Fund Complex. These relationships call into question PricewaterhouseCoopers LLPs independence under the Loan Rule with respect to those funds, as well as all other funds in the Invesco Fund Complex.
On June 20, 2016, the SEC Staff issued a no-action letter to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter) related to the audit independence issue described above. In that letter, the SEC confirmed that it would not recommend enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. PricewaterhouseCoopers LLP has communicated that the circumstances which called into question its independence under the Loan Rule with respect to the audits of the Funds are consistent with the circumstances described in the no action letter. PricewaterhouseCoopers LLP also concluded that its objectivity and impartiality was not impaired with respect to the planning for and execution of the Funds audits and that they have complied with PCAOB Rule 3526(b)(1) and (2), which are conditions to the Funds relying on the no action letter. Therefore, the Adviser, the Funds and PricewaterhouseCoopers LLP have concluded that PricewaterhouseCoopers LLP can continue as the Funds independent registered public accounting firm. The Invesco Fund Complex intends to rely upon the no-action letter.
If in the future the independence of PricewaterhouseCoopers LLP is called into question under the Loan Rule by circumstances that are not addressed in the SECs no-action letter, the Fund will need to take other action in order for the Funds filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Such additional actions could result in additional costs, impair the ability of the Funds to issue new shares or have other material adverse effects on the Funds. In addition, the SEC has indicated that the no-action relief will expire 18 months from its issuance after which the Invesco Funds will no longer be able rely on the letter unless its term is extended or made permanent by the SEC Staff.
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 12, 2016, 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 12, 2016, 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/ Sheri Morris | |
Sheri Morris | ||
Principal Executive Officer | ||
Date: | November 4, 2016 |
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/ Sheri Morris | |
Sheri Morris | ||
Principal Executive Officer | ||
Date: | November 4, 2016 | |
By: | /s/ Kelli Gallegos | |
Kelli Gallegos | ||
Principal Financial Officer | ||
Date: | November 4, 2016 |
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. |