MERRILL LYNCH
SENIOR FLOATING
RATE FUND, INC.
FUND LOGO
Quarterly Report
May 31, 1999
This report, including the financial information herein, is
transmitted to the shareholders of Merrill Lynch Senior Floating
Rate Fund, Inc. for their information. It is not a prospectus,
circular or representation intended for use in the purchase of
shares of the Fund or any securities mentioned in this report. Past
performance results shown in this report should not be considered a
representation of future performance. The Fund has the ability to
leverage its Common Stock to provide Common Stock shareholders with
a potentially higher rate of return. Leverage creates risk for
Common Stock shareholders, including the likelihood of greater
volatility of net asset value and market price of Common Stock
shares, and the risk that fluctuations in short-term interest rates
may reduce the Common Stock's yield. Statements and other
information herein are as dated and are subject to change.
Merrill Lynch
Senior Floating
Rate Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
Merrill Lynch Senior Floating Rate Fund, Inc.
DEAR SHAREHOLDER
Merrill Lynch Senior Floating Rate Fund, Inc.'s effective net
annualized yield for the quarter ended May 31, 1999 was 6.51%,
compared to a yield of 6.63% for the same period a year earlier. The
Fund's net asset value decreased slightly from $9.84 per share to
$9.81 per share during the May quarter. During the period, the Fund
earned $0.161 per share income dividends, representing a net
annualized yield of 6.51%, based on a quarter-end per share net
asset value of $9.81 per share. For the quarter ended May 31, 1999,
the Fund's total investment return was +1.34% based on the decrease
in net asset value and assuming reinvestment of the $0.159 per share
income dividends. Since inception (November 3, 1989) through May 31,
1999, the Fund's total investment return was +89.19%, based on a
change in per share net asset value from $10.00 per share to $9.81
per share, and assuming reinvestment of $6.567 per share income
dividends.
During the May quarter, the Fund's net asset value benefited from
improvement in certain cyclical sectors such as energy, steel and
paper. On the other hand, the modest decline in the Fund's net asset
value was primarily caused by weakness in the healthcare industry.
Federal legislation that took effect in 1998 has significantly
reduced Medicaid/ Medicare reimbursement payments to long-term
healthcare providers. However, we view the current difficulties
within the healthcare sector as temporary, and believe there may be
some relief for long-term healthcare providers in the next
12 months--18 months.
Investment Environment
Merrill Lynch Senior Floating Rate Fund, Inc.'s portfolio largely
consists of participations in leveraged bank loans. The high-yield
bond and bank loan markets are comprised of similar industry sectors
and issuers that often overlap across both markets. Therefore,
general economic conditions and expectations tend to move the two
markets in the same direction, although prices for high-yield bonds
typically move to a greater degree than the bank loans.
The higher price volatility of high-yield bonds relative to bank
loans is caused by two factors. First, bank loans are senior secured
obligations, offering investors protection that unsecured high-yield
bonds do not. Second, bank loans are floating rate instruments;
therefore, their principal value does not move conversely to
interest rate movements, as is the case with fixed-income, high-
yield bonds.
Late last summer, disruptions in the equity and emerging markets
pressured the high-yield bond market. This sharply decreased
liquidity and, in turn, caused price declines in all three markets
virtually across the board. This negatively impacted the leveraged
bank loan market as well. Bank loans experienced downward pressure
primarily as a result of many hedge fund managers and mutual fund
investors selling their bonds and loan positions to provide needed
liquidity. Although the credit environment had not changed
significantly, the problems of the fixed-income and emerging markets
negatively impacted the leveraged bank loan market.
Beginning in the first calendar quarter, the high-yield bond
environment began to stabilize. Until interest rates increased in
April 1999, the high-yield market had experienced significant
improvement from its low prices of September 1998. The bank loan
market has also stabilized and the prices on a large number of
issues have begun to improve.
As of May 31, 1999, more than 98% of the Fund's investments in
corporate loans were accruing interest at a yield spread above the
London Interbank Offered Rate (LIBOR), the rate that major
international banks charge each other for US dollar-denominated
deposits outside of the United States. LIBOR has tracked very
closely with other short-term interest rates in the United States,
particularly the Federal Funds rate. Since the reset period on the
Fund's floating rate investments is between 30 days and 90 days, the
yield of the Fund is likely to move within a two-month period after
any Federal Funds rate change.
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
Investment Activities
Merrill Lynch Senior Floating Rate Fund, Inc. ended the May quarter
with approximately $3.0 billion out of $3.3 billion, or 89%, of its
net assets committed for investment in corporate loan interests.
Assets not invested in loan interests were invested in high-quality,
short-term securities. We continue to maintain significant
diversification across the Fund's investments. At May 31, 1999, the
Fund was comprised of 223 borrowers across 50 industries. See the
"Portfolio Information" section on page 3 of this report to
shareholders, which provides listings of the Fund's ten largest
issuers and five largest industries as of May 31, 1999.
During the three-month period ended May 31, 1999, the Fund's
investment strategy remained unchanged: to invest in leveraged
transactions in which borrowers have strong market shares,
experienced managements, consistent cash flows and appropriate
risk/reward characteristics in the form of its floating rate spreads
over LIBOR. In addition, we look for companies with significant
underlying asset and franchise value, strong capital structures and
equity sponsors that support their investments. Throughout the
latest quarter, we have focused on the better-priced new-issue
market where transactions have been available at yields relative to
LIBOR that were 1%--1.5% greater than was the case in August 1998.
The transactions were also much more conservatively structured with
lower leverage and higher interest coverage as investors became more
demanding in the face of a potentially slowing US economy. Some of
these leveraged bank loans brought to market recently are now
trading above issue price.
In addition, we have intensified our analysis of out-of-favor
cyclical sectors. We see value in certain secondary issues within
those sectors. In some cases, we see opportunity to purchase bank
loans that have been marked down to levels well below our estimation
of their true economic value.
As difficult as the second half of 1998 was for the loan market and
the Fund, their performances illustrate the bank loan market's
ability to weather market fluctuations with less volatility than the
high-yield bond market. This attribute continues to draw many new
institutional buyers to the bank loan market. When there was almost
no liquidity in high-yield securities in the late summer and early
fall of 1998 and many markets lost their ability to price
transactions, the bank loan market maintained liquidity for most
generally syndicated transactions, albeit at lower levels. We
believe that both the technical and fundamental aspects are
improving in the bank loan sector. We also believe we have
positively positioned the Fund to benefit from further expected
improvements in the market over the rest of 1999 and into 2000.
In Conclusion
We thank you for your investment in Merrill Lynch Senior Floating
Rate Fund, Inc., and we look forward to reviewing our outlook and
strategy with you again in our next report to shareholders.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Richard C. Kilbride)
Richard C. Kilbride
Vice President and Portfolio Manager
(Gilles Marchand)
Gilles Marchand
Vice President and Portfolio Manager
(Paul Travers)
Paul Travers
Vice President and Portfolio Manager
July 15, 1999
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
PORTFOLIO INFORMATION
As of May 31, 1999
Quality Ratings* Percent of
S&P/Moody's Long-Term Investments
BBB/Baa 1.4%
BB/Ba 47.5
B/B 27.3
NR (Not Rated) 23.8
[FN]
*In cases where bonds are rated differently by Standard & Poor's
Corp. and Moody's Investors Service, Inc., bonds are categorized
according to the higher of the two ratings.
Percent of
Five Largest Industries Total Assets
Wireless Telecommunications 7.5%
Paper 7.5
Chemicals 6.1
Amusement & Recreational Services 4.9
Cable Television Services 4.6
Percent of
Ten Largest Holdings Total Assets
Riverwood International Corp. 3.3%
Starwood Hotels & Resorts Trust 2.8
AMF Group, Inc. 2.0
Lyondell Petrochemical Co. 1.9
Chancellor Media Corp. 1.9
Jefferson Smurfit Company/Container Corp.
of America 1.8
Ziff-Davis Inc. 1.7
Nextel Communications Inc. 1.6
Stone Container Corp. 1.4
Cellular, Inc. 1.4
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
S&P Moody's Face Senior Secured
Industries Rating Rating Amount Floating Rate Loan Interests* Cost Value
<S> <S> <S> <C> <S> <C> <C>
Advertising--0.4% BB- Ba2 $11,325,710 Outdoor Systems, Inc., Term,
due 6/30/2004 $ 11,306,728 $ 11,290,317
Aerospace--0.1% B+ Ba3 4,108,456 Aircraft, Term B, due 10/15/2005 4,108,456 4,103,320
Air NR++ Ba3 12,758,108 Atlas Freighter Leasing I, Term,
Transportation-- due 5/29/2004 12,750,591 12,750,134
1.2% NR++ Ba3 12,758,108 Atlas Freighter Leasing II, Term,
due 5/29/2004 12,754,502 12,750,134
Continental Airlines, Inc.:
BB Ba1 7,753,177 Term A, due 7/31/2002 7,723,977 7,588,422
BB Ba1 6,272,000 Term B, due 7/31/2003 6,272,000 6,185,760
-------------- --------------
39,501,070 39,274,450
Aircraft & B+ Ba3 7,255,501 Evergreen International Aviation,
Parts--0.8% Inc., Term B, due 5/31/2003 7,231,770 7,248,699
NR++ NR++ 10,390,625 Gulfstream Aerospace Corp., Term, due
9/30/2002 10,377,984 10,338,672
NR++ NR++ 2,013,449 Technetics Corp., Term A, due 6/20/2002 2,004,792 1,968,146
NR++ NR++ 5,185,309 WesternSky Industries, Term,
due 7/31/2003 5,181,026 5,133,456
-------------- --------------
24,795,572 24,688,973
Amusement & AMF Group, Inc.:
Recreational NR++ B+ 39,248,085 Axel A, due 5/03/2003 39,404,671 37,678,160
Services--5.0% NR++ B+ 25,175,907 Axel B, due 5/01/2004 25,256,596 24,168,870
NR++ B+ 4,345,821 Term A, due 3/31/2002 4,338,259 4,171,988
NR++ B1 3,428,571 ASC East Inc., Term, due 5/31/2006 3,418,271 3,411,429
NR++ B1 8,571,429 ASC West Inc., Term, due 5/31/2006 8,567,078 8,528,572
Amfac Resorts, Inc.:
NR++ NR++ 2,475,000 Term B, due 9/30/2004 2,471,917 2,456,437
NR++ NR++ 2,475,000 Term C, due 9/30/2005 2,471,809 2,458,758
KSL Recreation Group, Inc.:
B+ B2 11,200,000 Revolving Credit, due 4/30/2004 11,200,000 11,067,000
B+ B2 10,780,000 Term A, due 4/30/2005 10,819,775 10,658,725
B+ B2 10,780,000 Term B, due 4/30/2006 10,821,086 10,732,837
B+ NR++ 4,950,000 Kerastotes, Term B, due 12/31/2004 4,943,815 4,931,438
Metro Goldwyn Mayer Co.:
NR++ Ba2 4,710,000 Revolving Credit, due 9/30/2003 4,710,000 4,536,319
NR++ Ba2 4,000,000 Term A, due 12/31/2005 3,983,035 3,902,500
BB+ Ba2 17,500,000 Term B, due 12/31/2006 17,478,214 17,182,813
NR++ Ba3 13,454,728 Six Flags Entertainment Corp.,
Term B, due 11/03/2004 13,448,932 13,446,319
NR++ NR++ 4,200,000 Video Update Inc., Term B, due 4/30/2003 4,166,239 2,940,000
-------------- --------------
167,499,697 162,272,165
Apparel--1.3% Arena Brands, Inc.:
NR++ NR++ 1,177,361 Revolving Credit, due 6/01/2002 1,177,361 1,168,531
NR++ NR++ 3,427,254 Term A, due 6/01/2002 3,431,538 3,418,686
NR++ NR++ 7,104,729 Term B, due 6/01/2002 7,113,609 7,104,729
NR++ NR++ 3,250,000 CS Brooks Canada, Inc., Term,
due 6/25/2006 3,234,584 3,225,625
B+ B2 9,500,000 Humphreys Inc., Term B, due 1/15/2003 9,438,924 8,550,000
NR++ NR++ 4,975,000 Norcross Safety Products, Term, due
12/31/2005 4,933,172 4,875,500
NR++ NR++ 4,600,000 Renfro Corp., Term B, due 1/15/2003 4,584,941 4,594,250
Walls Industries:
NR++ NR++ 1,212,766 Term B, due 2/28/2005 1,210,354 1,209,734
NR++ NR++ 1,691,490 Term C, due 2/28/2006 1,687,985 1,687,261
BB- Ba3 6,048,000 The William Carter Co., Term,
due 10/31/2003 6,027,119 6,040,440
-------------- --------------
42,839,587 41,874,756
</TABLE>
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Senior Secured
Industries Rating Rating Amount Floating Rate Loan Interests* Cost Value
<S> <S> <S> <C> <S> <C> <C>
Automotive NR++ NR++ $ 3,860,162 AP Automotive, Term, due 12/19/2005 $ 3,860,162 $ 3,850,511
Equipment-- B+ Ba3 3,000,000 Accuride, Term C, due 1/21/2007 2,992,587 3,015,000
3.6% BB- NR++ 21,000,000 American Axel, Term B, due 3/31/2007 21,034,577 21,018,375
NR++ NR++ 7,000,000 Americanbump, Term B, due 10/31/2002 6,982,535 6,982,500
Breed Technologies, Inc.:
B+ B2 5,000,000 Term A, due 4/27/2004 4,822,346 3,675,000
B+ B2 9,625,247 Term B, due 4/27/2006 9,603,575 6,906,114
BB- Ba2 14,291,390 CSK Automotive, Inc., Term,
due 10/31/2003 14,243,555 14,224,399
BB- B1 10,912,000 Collins & Aikman Corp., Term B,
due 6/30/2005 10,837,693 10,877,900
NR++ NR++ 6,250,000 Dura Automotive, Term B, due 3/31/2006 6,242,347 6,265,625
NR++ Ba3 11,862,000 Exide Corporation, Term B, due 3/19/2005 11,853,904 11,743,380
NR++ Ba2 10,000,000 Federal-Mogul Corp., Term B,
due 2/24/2005 9,987,944 10,015,625
BB- B1 5,500,000 Johnstown America Industrial, Inc.,
Term B, due 4/29/2005 5,493,199 5,503,437
Safelite Glass Corp.:
BB- B1 3,092,143 Term B, due 12/31/2004 3,088,286 3,065,087
BB- B1 3,092,143 Term C, due 12/31/2005 3,088,159 3,065,087
NR++ Ba3 4,987,500 Stone Ridge, Term B, due 12/31/2005 4,969,478 5,018,672
-------------- --------------
119,100,347 115,226,712
Broadcasting NR++ NR++ 5,000,000 Capstar Radio Broadcasting, Term A,
Radio & due 11/30/2004 4,975,943 4,992,187
Television--3.0% Chancellor Media Corp.:
BB- Ba2 7,428,074 Revolving Credit, due 1/31/2003 7,428,074 7,270,227
BB- Ba2 53,115,082 Term, due 6/30/2005 52,916,966 52,815,545
NR++ NR++ 10,000,000 Emmis Communications, Term, due 2/28/2007 10,000,000 10,012,500
NR++ NR++ 4,633,696 Latin Communications, Term, due 3/31/2004 4,611,205 4,569,982
NR++ NR++ 4,500,000 Quoram Broad, Term B, due 9/30/2007 4,488,835 4,508,438
NR++ NR++ 4,578,750 Retlaw Broadcasting, Term, due 3/31/2006 4,568,465 4,574,171
NR++ Ba3 4,916,667 Sinclair Broadcasting, Term, due
12/31/2004 4,908,010 4,827,552
NR++ NR++ 3,731,250 Spartan Communications, Term B, due
6/30/2005 3,724,531 3,731,250
-------------- --------------
97,622,029 97,301,852
Building NR++ Ba3 3,028,756 Amerimax, Term C, due 6/30/2004 3,025,815 3,013,612
Materials--2.1% Behr Process Corp.:
NR++ NR++ 4,067,496 Term B, due 3/31/2004 4,063,314 4,067,496
NR++ NR++ 2,711,664 Term C, due 3/31/2005 2,708,732 2,711,664
NR++ NR++ 11,850,121 Dal-Tile International Inc.,
Term B, due 12/31/2003 11,805,664 11,583,493
NR++ NR++ 5,000,000 Dayton Superior Corp., Term,
due 9/30/2005 5,000,000 5,018,750
NR++ Ba3 945,387 Euramax Holdings Ltd., Term B,
due 6/30/2004 944,469 940,660
NR++ B1 13,307,143 Falcon Building Products, Inc.,
Term, due 6/30/2005 13,290,995 13,290,509
NR++ Ba3 24,707,915 National Gypsum Co., Term B,
due 9/20/2003 24,676,090 24,460,836
NR++ NR++ 3,990,000 Panolam Industries, Term B,
due 12/31/2005 3,975,468 4,004,962
-------------- --------------
69,490,547 69,091,982
Business NR++ NR++ 3,500,000 Muzak Audio, Term B, due 12/31/2006 3,491,411 3,514,219
Services--0.1%
</TABLE>
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Senior Secured
Industries Rating Rating Amount Floating Rate Loan Interests* Cost Value
<S> <S> <S> <C> <S> <C> <C>
Cable Television B+ Caa1 $ 5,000,000 Avalon Cable, Term B, due 10/31/2006 $ 4,964,384 $ 5,075,000
Services--4.7% BB+ Ba3 4,900,000 Bresnan Telecommunications, Term B,
due 1/29/2008 4,882,094 4,926,797
BB- Ba1 25,000,000 Charter Communications, Term B, due
3/18/2008 24,963,094 25,058,592
NR++ Ba2 24,131,250 Chelsea Communications, Term B, due
9/30/2004 24,054,306 24,010,594
BB- B1 5,000,000 Classic Cable, Inc., Term, due
10/31/2007 4,995,293 5,006,250
NR++ Ba3 4,987,500 Falcon Cable, Term C, due 12/31/2007 4,970,613 4,981,266
B+ Ba3 9,478,409 Intermedia Partners IV, Inc., Term,
due 1/01/2005 9,461,201 9,478,409
B+ Ba3 7,500,000 Intermedia Partners VI, Inc., Term B,
due 12/31/2007 7,493,100 7,490,625
NR++ NR++ 11,000,000 TW-Fanch One Co., Term B, due 12/31/2007 10,991,430 11,017,188
NR++ NR++ 17,000,000 Triax Midwest, Term B, due 6/30/2007 16,976,413 16,915,000
BB+ Baa3 38,958,819 Viacom, Inc., Term, due 7/01/2002 38,922,896 38,277,039
-------------- --------------
152,674,824 152,236,760
Chemicals--6.3% NR++ NR++ 12,176,604 AOC LLC, Term B, due 9/30/2006 12,148,218 11,978,734
NR++ NR++ 4,466,250 CII Carbon LLC, Term, due 6/25/2008 4,462,050 4,474,624
NR++ NR++ 11,198,323 Cedar Chemical, Term B, due 10/31/2003 11,141,656 11,170,327
NR++ NR++ 10,000,000 Epsillon, Term B, due 12/31/2005 10,000,000 10,000,000
B Ba3 3,555,556 Foamex International PLC, Revolving
Credit, due 6/30/2003 3,555,556 3,146,667
Huntsman Corp.:
NR++ Ba2 3,407,665 Term A, due 12/31/2002 3,405,546 3,373,588
NR++ Ba2 5,227,409 Term B, due 6/30/2004 5,224,056 5,175,135
NR++ B+ 9,063,925 Term C, due 12/31/2005 9,037,181 8,973,286
NR++ B+ 14,422,479 Term D, due 12/31/2002 14,413,306 14,206,142
Huntsman Specialty Chemicals:
BB Ba2 4,032,725 Term B, due 3/15/2004 4,030,281 4,022,643
BB Ba2 4,032,725 Term C, due 3/15/2005 4,023,814 4,025,163
NR++ Ba2 14,653,846 Koppers Industries, Term B,
due 11/30/2004 14,638,280 14,580,577
Lyondell Petrochemical Co.:
Ba2 NR++ 8,211,125 Term A, due 6/30/2003 8,207,553 8,152,107
Ba2 NR++ 37,522,521 Term B, due 6/30/2005 37,543,394 37,604,601
Ba2 NR++ 15,000,000 Term E, due 5/17/2006 14,981,307 15,150,000
NR++ B1 7,860,000 Pioneer Americans Acquisition Corp.,
Term, due 12/05/2006 7,860,000 7,860,000
NR++ Ba3 23,860,061 Sterling Chemicals, Inc., Term B,
due 9/30/2004 23,771,968 23,300,841
NR++ NR++ 9,750,000 Sybron Chemical, Term B, due 7/31/2004 9,738,959 9,774,375
NR++ Ba3 6,267,625 Texas Petrochemicals Corp., Term B, due
6/30/2004 6,250,467 6,251,956
-------------- --------------
204,433,592 203,220,766
Computer Related Fairchild Semiconductors Corp.:
Products--0.4% NR++ Ba3 4,500,000 Term, due 4/30/2006 4,491,106 4,528,125
BB- B+ 5,750,000 Term B, due 4/12/2007 5,738,633 5,785,937
NR++ NR++ 3,750,000 Stratus Computer, Inc., Term B,
due 2/26/2005 3,731,863 3,753,516
-------------- --------------
13,961,602 14,067,578
Consumer NR++ B1 8,348,863 Amscan Holdings, Inc., Axel,
Products--2.2% due 12/31/2004 8,348,863 7,722,699
B+ Ba3 3,277,778 Boyds Collection Ltd., Term B,
due 4/21/2005 3,272,336 3,271,632
Hedstrom Corp.:
NR++ B1 3,737,931 Revolving Credit, due 6/30/2003 3,737,931 3,513,655
B Ba3 4,310,345 Term A, due 6/30/2003 4,294,031 4,094,828
</TABLE>
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Senior Secured
Industries Rating Rating Amount Floating Rate Loan Interests* Cost Value
<S> <S> <S> <C> <S> <C> <C>
Consumer B+ B+ $ 4,250,000 Holmes Products, Term B,
Products due 2/05/2007 $ 4,229,349 $ 4,264,609
(concluded) BB Ba2 14,737,876 Playtex Family Products Inc.,
Term B, due 9/15/2003 14,682,555 14,553,653
NR++ NR++ 7,209,568 RTI Funding Corp., Term B,
due 2/07/2003 7,166,243 5,947,894
NR++ NR++ 14,925,000 Revlon Consumer Products Corp., Term,
due 5/30/2002 14,916,631 14,925,000
B Ba3 4,500,000 Samsonite Corporation, Term, due
6/24/2005 4,143,386 4,387,500
Scotts Company:
BB+ Ba3 2,546,012 Term B, due 6/04/2006 2,536,899 2,565,107
BB+ Ba3 2,453,988 Term C, due 6/04/2007 2,445,135 2,472,393
B+ NR++ 5,000,000 United Industries, Term B, due 1/20/2006 4,993,878 5,026,563
-------------- --------------
74,767,237 72,745,533
Diversified--0.8% NR++ NR++ 25,000,000 Bridge Information, Term B,
due 5/29/2005 24,944,469 25,062,500
Thermadyne:
NR++ NR++ 992,500 Term B, due 5/22/2005 994,981 992,810
NR++ NR++ 992,500 Term C, due 5/22/2006 994,981 992,810
-------------- --------------
26,934,431 27,048,120
Drilling--0.5% B- B1 13,214,286 Key Energy Services Inc.,
Term B, due 9/14/2004 13,020,225 13,016,071
BB+ Ba3 3,695,862 Rigco North America, Term,
due 9/30/1999 3,695,862 3,603,466
-------------- --------------
16,716,087 16,619,537
Drug/Proprietary B+ B1 4,937,500 Duane Reade Co., Term B, due 2/15/2005 4,924,331 4,918,984
Stores--0.2%
Electronics/ B+ Ba3 6,458,750 Amphenol Corp., Term B, due 5/19/2006 6,562,142 6,456,731
Electrical NR++ NR++ 5,433,333 Communications & Power II Acquisition
Components--3.0% Corp., Term B, due 8/11/2002 5,404,495 5,385,792
B+ NR++ 8,500,000 DD Inc., Term B, due 4/22/2005 8,449,681 8,330,000
Dynatech Corporation:
B+ NR++ 1,631,038 Term B, due 3/31/2005 1,631,038 1,633,077
B+ NR++ 1,631,038 Term C, due 3/31/2006 1,631,038 1,633,077
B+ NR++ 1,631,038 Term D, due 3/31/2007 1,631,038 1,633,077
NR++ Ba3 4,874,665 FME/Neopost, Term C, due 6/24/2006 4,864,290 4,838,105
NR++ NR++ 10,000,000 General Cable, Term B, due 6/30/2007 9,985,011 9,985,000
BB- B1 19,781,931 International Wire Group, Inc.,
Term B, due 9/30/2003 19,767,390 19,658,294
NR++ NR++ 17,910,000 SPX Corporation, Term B, due 9/30/2006 17,825,681 18,044,325
Superior Telecom:
B+ Ba3 9,790,000 Term A, due 5/27/2004 9,790,000 9,802,238
B+ Ba3 4,985,714 Term B, due 11/27/2005 4,985,714 5,010,643
B Ba3 6,656,442 Telex Communications, Inc., Term B, due
11/30/2004 6,643,239 6,257,056
-------------- --------------
99,170,757 98,667,415
Energy--0.3% Perf-O-Log Inc.:
NR++ NR++ 1,548,579 Term, due 8/11/2003 1,545,692 1,536,965
NR++ NR++ 4,119,082 Term B, due 8/11/2003 4,111,457 4,088,188
NR++ NR++ 1,237,500 Term C, due 8/11/2003 1,235,896 1,228,219
NR++ NR++ 1,776,786 Term D, due 12/31/2004 1,770,736 1,771,233
NR++ NR++ 710,714 Term E, due 12/31/2004 708,294 708,493
-------------- --------------
9,372,075 9,333,098
</TABLE>
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Senior Secured
Industries Rating Rating Amount Floating Rate Loan Interests* Cost Value
<S> <S> <S> <C> <S> <C> <C>
Financial Outsourcing Solutions, Inc.:
Services--1.9% NR++ B2 $ 3,971,633 Term B, due 10/15/2003 $ 3,968,806 $ 3,904,611
NR++ B2 37,291,658 Term C, due 10/15/2001 37,291,658 36,662,362
Willis Corroon Group PLC:
BB Ba2 12,125,000 Term B, due 11/19/2006 12,080,740 12,170,469
BB Ba2 4,122,500 Term C, due 11/19/2007 4,107,386 4,144,401
BB Ba2 4,122,500 Term D, due 5/19/2008 4,107,356 4,144,401
-------------- --------------
61,555,946 61,026,244
Food & Kindred B1 B+ 5,000,000 B & G Foods, Term B, due 3/15/2006 4,990,218 5,007,812
Products--2.8% Del Monte Corp.:
B+ B2 163,636 Revolving Credit, due 3/31/2003 163,636 161,795
B+ B2 2,444,140 Term A, due 3/31/2003 2,444,140 2,428,864
B+ B2 10,555,636 Term B, due 3/31/2005 10,549,733 10,582,026
Imperial Holly Corp.:
BB- Ba3 6,393,248 Term A, due 12/31/2003 6,388,148 6,273,374
BB- Ba3 5,275,763 Term B, due 12/31/2005 5,271,230 5,196,627
International Homefoods, Inc.:
BB- Ba3 106,631 Revolving Credit, due 11/21/2001 106,631 105,431
BB- Ba3 3,008,064 Term A, due 5/31/2004 3,006,623 3,003,364
BB- Ba3 6,932,053 Term B, due 9/30/2004 6,941,571 6,901,726
BB- Ba3 3,500,000 Pabst Brewing, Term B, due 4/30/2003 3,489,684 3,502,188
BB- B1 4,987,495 The Pantry Inc., Term B, due 1/31/2008 4,957,122 4,993,730
Specialty Foods, Inc.:
NR++ Ba3 6,391,033 Revolving Credit, due 1/31/2000 6,391,033 6,391,033
NR++ Ba3 10,992,127 Term, due 1/31/2000 10,952,957 10,998,998
Triarc Consulting:
NR++ NR++ 7,267,442 Term B, due 2/25/2006 7,240,847 7,303,780
NR++ NR++ 17,732,558 Term C, due 2/25/2007 17,667,389 17,821,220
-------------- --------------
90,560,962 90,671,968
Funeral Homes & B- Caa3 17,087,833 Loewen Group Capital, Term,
Parlors--1.0% due 7/15/2000 16,993,914 10,423,578
B- B1 14,583,333 Prime Succession Inc., Axel,
due 8/01/2003 14,547,094 14,473,958
BB- NR++ 6,720,944 Rose Hills Co., Axel A,
due 12/01/2003 6,709,116 6,699,941
-------------- --------------
38,250,124 31,597,477
Furniture & NR++ NR++ 10,000,000 Furniture Brands, Term, due 6/27/2007 10,000,000 9,937,500
Fixtures--1.1% Sealy Mattress:
B+ Ba3 3,012,121 Axel B, due 12/15/2004 3,008,977 3,015,886
B+ Ba3 2,169,697 Axel C, due 12/15/2005 2,167,356 2,172,409
B+ Ba3 2,772,727 Axel D, due 12/15/2006 2,769,660 2,776,193
B+ Ba3 10,475,694 Term A, due 12/15/2003 10,518,525 10,436,411
Simmons Co.:
NR++ NR++ 2,136,735 Term B, due 10/29/2005 2,126,730 2,144,747
NR++ NR++ 5,343,750 Term C, due 10/29/2006 5,318,436 5,363,789
-------------- --------------
35,909,684 35,846,935
Gaming--0.7% Alliance Gaming Corp.:
B+ B1 10,366,380 Term B, due 1/31/2005 10,366,380 9,938,767
B+ B1 4,139,139 Term C, due 7/31/2005 4,139,139 3,968,399
NR++ NR++ 10,000,000 Station Casinos, Term, due 12/31/2005 10,000,000 10,000,000
-------------- --------------
24,505,519 23,907,166
Grocery--1.3% B+ B1 4,987,500 Big V Super, Term B, due 8/10/2003 4,963,380 4,968,797
BB+ Ba2 19,669,247 Fred Meyer, Term, due 2/28/2003 19,557,021 19,570,901
B B2 10,000,000 Grand Union Co., Term, due 8/17/2003 9,976,556 10,018,750
</TABLE>
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Senior Secured
Industries Rating Rating Amount Floating Rate Loan Interests* Cost Value
<S> <S> <S> <C> <S> <C> <C>
Grocery Star Acquisition Co., Inc.:
(concluded) B Ba3 $ 3,444,279 Term B, due 12/31/2001 $ 3,436,918 $ 3,446,432
B Ba3 2,582,218 Term C, due 12/31/2002 2,575,440 2,583,832
-------------- --------------
40,509,315 40,588,712
Health Services-- Community Health Systems, Inc.:
4.3% NR++ NR++ 14,092,948 Term B, due 12/31/2003 14,044,530 14,044,503
NR++ NR++ 14,092,948 Term C, due 12/31/2004 14,040,746 14,044,503
NR++ NR++ 10,540,653 Term D, due 12/31/2005 10,499,459 10,517,595
B+ Ba3 5,556,060 Extendicare Health Services, Inc.,
Term B, due 12/31/2004 5,551,439 5,306,038
Genesis Health Ventures, Inc.:
B+ Ba3 4,963,927 Term B, due 9/30/2004 4,955,871 4,768,472
B+ Ba3 4,952,377 Term C, due 6/01/2005 4,944,097 4,757,377
Integrated Health Services, Inc.:
B+ Ba3 22,218,750 Term B, due 9/15/2004 22,185,018 20,496,797
B+ Ba3 9,875,000 Term C, due 12/31/2005 9,875,000 9,109,688
Magellen Health Services:
B1 Ba3 4,698,939 Term B, due 2/12/2005 4,692,930 4,393,508
B1 Ba3 4,698,939 Term C, due 2/12/2006 4,692,755 4,393,508
Mariner Post:
B+ Ba3 7,470,000 Term B, due 3/31/2005 7,463,763 6,088,050
B+ Ba3 7,470,000 Term C, due 3/31/2006 7,463,559 6,088,050
Multicare Companies, Inc.:
B+ B1 4,678,750 Term B, due 9/30/2004 4,671,009 4,456,509
B+ B1 1,555,625 Term C, due 6/01/2005 1,553,008 1,481,733
Paracelsus HealthCare Corp.:
NR++ B1 1,325,333 Term A, due 3/31/2003 1,319,847 1,239,187
NR++ B1 1,985,714 Term B, due 3/31/2004 1,977,138 1,856,643
NR++ Ba2 27,200,000 Total Renal Care, Term, due 3/31/2008 26,956,540 26,384,000
-------------- --------------
146,886,709 139,426,161
Hotels & Motels-- Patriot American Hospitality:
3.8% NR++ NR++ 12,160,927 Revolving Credit, due 7/18/2000 12,160,927 12,153,326
NR++ NR++ 19,966,667 Term B, due 3/31/2003 19,888,338 19,979,146
NR++ Ba1 90,000,000 Starwood Hotels & Resorts Trust,
Term, due 2/23/2003 89,940,234 90,168,750
-------------- --------------
121,989,499 122,301,222
Industrial NR++ NR++ 4,456,056 Volume Services America, Term B, due
Services--0.1% 12/03/2007 4,434,588 4,485,299
Insurance--0.2% BRW Acquisition:
NR++ NR++ 2,500,000 Term B, due 7/09/2006 2,497,136 2,475,000
NR++ NR++ 2,500,000 Term C, due 7/09/2007 2,497,095 2,475,000
-------------- --------------
4,994,231 4,950,000
Leasing & Rental B+ B1 7,000,000 MEDIQ PRN Life Support Services,
Services--1.8% Term, due 6/30/2006 6,993,648 6,860,000
Medical Specialties:
NR++ NR++ 12,845,455 Axel, due 6/30/2004 12,845,455 12,845,455
NR++ NR++ 4,418,182 Term, due 6/30/2001 4,418,182 4,418,182
NR++ Ba3 8,000,000 Nationsrent Inc., Term, due 9/24/2004 7,961,685 7,992,500
NR++ B1 7,250,000 Panavision, Term B, due 3/31/2005 7,231,873 7,213,750
NR++ Ba2 20,000,000 United Rentals Inc., Term, due 6/30/2005 19,982,038 19,950,000
-------------- --------------
59,432,881 59,279,887
</TABLE>
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Senior Secured
Industries Rating Rating Amount Floating Rate Loan Interests* Cost Value
<S> <S> <S> <C> <S> <C> <C>
Manufacturing-- NR++ NR++ $ 9,371,429 Channel Master, Term, due 10/10/2005 $ 9,371,429 $ 9,371,429
1.3% BB- B1 7,481,250 Enviromental Systems, Term B,
due 9/30/2005 7,457,776 7,528,008
NR++ NR++ 5,000,000 Metokote Corp., Term B, due 11/02/2005 4,964,640 5,031,250
NR++ NR++ 7,959,788 Polyfibron Technologies, Term B,
due 12/29/2003 7,959,788 7,959,788
NR++ B1 4,900,000 Terex Corp., Term B, due 3/06/2005 4,882,576 4,884,688
NR++ B1 3,500,000 Tokheim Corporation, Term, due 9/30/2004 3,483,535 3,482,500
WEC Company:
NR++ NR++ 2,902,083 Term B, due 9/30/2005 2,898,759 2,894,828
NR++ NR++ 2,072,917 Term C, due 9/30/2006 2,070,504 2,067,734
-------------- --------------
43,089,007 43,220,225
Measuring, NR++ NR++ 7,398,389 Chronograph Ltd., Term B, due 9/30/2001 7,398,389 7,398,389
Analyzing &
Controlling
Instruments--0.2%
Medical Alaris Medical Systems, Inc.:
Equipment--0.7% B+ B1 3,304,000 Term A, due 8/01/2002 3,316,852 3,281,285
B+ B1 4,228,138 Term B, due 11/01/2003 4,229,905 4,231,334
B+ B1 4,228,138 Term C, due 11/01/2004 4,229,778 4,231,334
B+ B1 2,021,449 Term D, due 5/01/2005 2,022,918 2,023,232
Stryker Corporation:
BB Ba2 1,966,901 Term B, due 12/04/2004 1,955,380 1,974,892
BB Ba2 8,008,099 Term C, due 12/04/2005 7,960,581 8,045,637
-------------- --------------
23,715,414 23,787,714
Metals & NR++ B3 10,188,203 Acme Metals, Inc., Term, due 12/01/2005 10,188,203 7,844,916
Mining--3.4% Centennial Resources Inc.:
NR++ NR++ 1,961,538 Term A, due 3/31/2002 1,946,578 26,971
NR++ NR++ 5,105,769 Term B, due 3/31/2004 5,062,590 70,204
NR++ NR++ 6,000,000 Handy & Harman, Term B, due 7/30/2006 5,986,168 5,985,000
Ispat Inland LP:
BB Ba3 19,353,750 Term B, due 7/15/2005 19,220,090 19,136,020
BB Ba3 19,353,750 Term C, due 7/15/2006 19,218,381 19,136,020
BB- Ba3 8,407,896 Neenah Foundry, Term B, due 9/30/2005 8,400,492 8,428,916
BB- B1 31,000,000 Ormet Corportation, Term,
due 8/15/2008 31,000,000 31,000,000
NR++ Ba2 5,000,000 P & L Coal Holdings, Term B,
due 6/30/2006 5,000,000 5,012,500
NR++ NR++ 4,970,000 Premirrefrac, Term B, due 4/15/2005 4,954,933 4,771,200
NR++ Ba3 10,078,190 UCAR Global Enterprises, Term B, due
12/31/2002 10,071,374 10,052,995
-------------- --------------
121,048,809 111,464,742
Other Telecommuni- Pacific Coin:
cations--0.3% NR++ NR++ 3,916,364 Acquisition Term, due 12/31/2003 3,916,364 3,916,364
BB- Ba2 2,056,352 Term A, due 12/31/2002 2,056,352 2,056,352
NR++ NR++ 2,715,625 Term B, due 12/31/2004 2,715,625 2,715,625
-------------- --------------
8,688,341 8,688,341
Packaging--0.9% B+ B1 14,962,500 Graham Packaging, Term D,
due 1/31/2007 14,966,518 14,981,203
NR++ B1 4,850,567 Ivex Packaging Corp., Term B,
due 10/02/2004 4,845,672 4,826,314
Packaging Co.:
BB NR++ 4,924,587 Term B, due 4/12/2007 4,906,338 4,963,060
BB NR++ 4,924,587 Term B, due 4/12/2008 4,906,303 4,963,060
-------------- --------------
29,624,831 29,733,637
</TABLE>
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Senior Secured
Industries Rating Rating Amount Floating Rate Loan Interests* Cost Value
<S> <S> <S> <C> <S> <C> <C>
Paging--0.3% NR++ Ba3 $ 9,088,666 PageNet Finance, Inc.,
Revolving Credit, due 12/31/2004 $ 9,088,666 $ 8,804,646
Paper--7.7% NR++ NR++ 6,500,000 Cellu Tissue, Term C, due 3/24/2005 6,477,776 6,435,000
BB Ba3 4,638,788 Crown Paper Co., Term B, due 8/22/2003 4,603,019 4,615,594
B+ Ba3 56,740,000 Jefferson Smurfit Company/Container
Corp. of America, Term B, due 3/24/2006 56,659,195 56,917,313
BB NR++ 4,975,000 Le Groupe Forex, Term B, due 6/30/2005 4,969,429 4,937,688
NR++ NR++ 7,250,000 Pacifica, Term B, due 12/31/2006 7,241,118 7,268,125
NR++ NR++ 6,500,000 Repap Brunswick, Term B, due 6/01/2004 6,515,000 6,288,750
Riverwood International Corp.:
B+ B1 14,381,313 Term A, due 2/28/2003 14,214,641 14,420,645
B+ B1 66,134,147 Term B, due 2/28/2004 65,367,686 66,315,018
B+ B1 25,472,987 Term C, due 8/28/2004 25,218,468 25,560,550
Stone Container Corp.:
B+ Ba3 28,020,684 Term C, due 4/01/2003 27,998,654 28,090,735
B+ Ba3 17,997,709 Term E, due 10/01/2003 18,149,425 18,042,703
Stronghaven:
NR++ NR++ 9,303,448 Term B, due 5/15/2004 9,269,345 8,373,103
NR++ NR++ 1,697,143 Term C, due 5/15/2004 1,697,143 1,527,429
-------------- --------------
248,380,899 248,792,653
Petroleum BB Ba2 11,000,000 Clark Refining & Marketing, Inc.,
Refineries--0.3% Term, due 11/15/2004 11,000,000 10,450,000
Pharmaceuticals-- Dade International, Inc.:
1.3% NR++ B1 4,059,977 Term A, due 12/31/2001 4,070,127 4,054,902
NR++ B1 9,134,681 Term B, due 12/31/2002 9,110,714 9,146,099
NR++ B1 4,166,483 Term C, due 12/31/2003 4,158,255 4,171,691
NR++ B1 2,725,352 Term D, due 12/31/2004 2,713,009 2,728,759
NR++ NR++ 7,357,143 Endo Pharmaceuticals, Term B,
due 6/30/2004 7,345,495 7,329,554
NR++ NR++ 15,000,000 Express Scripts, Term B, due 3/31/2007 14,980,289 14,983,125
-------------- --------------
42,377,889 42,414,130
Printing & NR++ B3 5,265,000 21st Century, Term A, due 9/15/2003 5,291,325 5,241,966
Publishing--4.0% B+ Ba3 14,955,000 Advanstar Communications, Term B,
due 4/30/2005 14,941,881 14,917,612
BB+ Ba1 8,375,000 Journal Register Co., Term B,
due 9/30/2006 8,365,410 8,312,188
NR++ Ba3 9,875,000 Morris Communications, Term B,
due 6/30/2005 9,859,545 9,813,281
NR++ Ba3 2,976,081 Penton Media, Term B, due 5/31/2006 2,961,893 2,968,641
Primedia:
NR++ Ba3 7,520,000 Revolving Credit, due 12/31/2000 7,520,000 7,454,200
NR++ Ba3 4,000,000 Term, due 12/31/2000 4,000,000 3,965,000
NR++ Ba3 4,000,000 Term, due 12/31/2000 4,000,000 3,975,000
NR++ Ba3 10,000,000 Term, due 7/31/2004 9,975,831 10,034,375
RH Donnolley Inc.:
NR++ NR++ 3,347,697 Term B, due 12/05/2005 3,344,701 3,335,144
NR++ NR++ 3,847,927 Term C, due 12/05/2006 3,844,419 3,833,498
Ziff-Davis Inc.:
NR++ Ba2 176,471 Revolving Credit, due 3/31/2005 176,471 173,934
NR++ Ba2 7,647,059 Term A, due 3/31/2005 7,620,333 7,640,559
NR++ Ba2 47,500,000 Term B, due 3/31/2006 47,335,735 47,648,438
-------------- --------------
129,237,544 129,313,836
</TABLE>
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
S&P Moody's Face Senior Secured
Industries Rating Rating Amount Floating Rate Loan Interests* Cost Value
<S> <S> <S> <C> <S> <C> <C>
Restaurants-- Domino & Bluefence:
0.5% B+ B1 $ 6,690,394 Term B, due 12/21/2006 $ 6,626,113 $ 6,709,210
B+ B1 6,690,394 Term C, due 12/21/2007 6,625,686 6,709,210
NR++ Ba3 3,617,596 Shoney's, Inc., Term B, due 4/30/2002 3,601,591 3,490,981
-------------- --------------
16,853,390 16,909,401
Retail NR++ B1 5,750,000 Advanced Store Company, Term B, due
Specialty--0.4% 4/15/2006 5,742,301 5,751,437
NR++ Ba2 7,476,340 Travel Centers of America, Term,
due 3/27/2005 7,447,985 7,497,368
-------------- --------------
13,190,286 13,248,805
Textile Mill Joan Fabrics Corp.:
Products--0.5% NR++ NR++ 3,172,366 Term B, due 6/30/2005 3,168,438 3,166,417
NR++ NR++ 1,646,770 Term C, due 6/30/2006 1,644,659 1,651,916
NR++ NR++ 10,421,250 Tartan Textiles, Term B, due 5/01/2005 10,398,200 10,395,197
-------------- --------------
15,211,297 15,213,530
Tower Construction NR++ NR++ 5,000,000 Spectracite, Term B, due 6/30/2006 4,987,657 5,026,563
& Leasing--0.2%
Transportation NR++ NR++ 7,406,250 North American Van Lines, Term B, due
Services--0.3% 3/30/2006 7,398,015 7,383,105
BB- Ba3 3,200,935 Petro Stopping Centers, Term B,
due 12/31/2003 3,195,132 3,178,929
-------------- --------------
10,593,147 10,562,034
Wired Telecom- NR++ Ba2 15,093,750 Flag Ltd., Term, due 1/30/2005 15,029,776 14,754,141
munications-- NR++ NR++ 5,000,000 IDT Corporation, Term B, due 5/10/2004 4,981,281 4,989,063
0.6% -------------- --------------
20,011,057 19,743,204
Wireless American Cellular Corp.:
Telecommunica- NR++ B2 2,500,000 Term B, due 6/30/2007 2,484,898 2,501,562
tions--7.7% NR++ B2 2,500,000 Term C, due 6/30/2007 2,484,871 2,501,562
Cellular Financial, Inc.:
NR++ B1 13,985,692 Term B, due 9/30/2006 13,976,575 14,038,138
NR++ B1 8,130,081 Term C, due 3/31/2007 8,111,835 8,160,569
NR++ B1 22,764,227 Term D, due 9/30/2007 22,712,588 22,849,593
Centennial Cellular:
B B2 2,743,056 Term Loan A (PR), due 11/30/2006 2,746,484 2,747,342
B B2 2,256,944 Term Loan A (US), due 11/30/2006 2,259,766 2,260,471
Dobson/Sygnet Operating Co.:
NR++ NR++ 2,500,000 Term B, due 3/23/2007 2,490,877 2,512,500
NR++ NR++ 2,500,000 Term C, due 12/23/2007 2,490,843 2,517,188
B B2 8,934,000 Iridium Operating LLC, Term,
due 12/29/2000 8,791,805 7,258,875
Nextel Communications Inc.:
B B1 258,960 Revolving Credit, due 3/31/2006 258,960 251,596
B B1 74,100 Revolving Credit, due 6/30/2003 74,100 71,993
B B1 4,270,000 Term A, due 3/31/2006 4,135,026 4,148,572
B B1 40,000,000 Term B, due 9/30/2006 39,955,269 40,087,500
B B1 7,500,000 Term C, due 3/31/2007 7,439,366 7,528,125
Omnipoint Communications Corp.:
NR++ B2 774,185 Term A, due 2/17/2006 773,502 733,540
NR++ B2 1,926,134 Term B, due 2/17/2006 1,924,435 1,825,012
NR++ B2 43,312,500 Term C, due 2/17/2006 43,129,954 41,038,594
PowerTel PCS, Inc.:
NR++ NR++ 15,000,000 Term, due 3/04/2001 15,000,000 14,962,500
NR++ NR++ 3,000,000 Term B, due 2/06/2003 3,000,000 2,992,500
NR++ NR++ 15,000,000 TeleCorp PCS, Term B, due 1/15/2008 14,971,880 14,896,875
</TABLE>
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
S&P Moody's Face Senior Secured
Industries Rating Rating Amount Floating Rate Loan Interests* Cost Value
<S> <S> <S> <C> <S> <C> <C>
Wireless NR++ NR++ $ 5,000,000 Tritel Holdings, Term B,
Telecommunica- due 12/31/2007 $ 4,938,265 $ 5,025,000
tions NR++ B1 10,000,000 Triton PCS, Term B, due 4/30/2007 9,977,934 9,878,125
(concluded) NR++ NR++ 20,000,000 VoiceStream PCS, Term B, due 6/30/2007 19,937,414 19,987,500
NR++ B1 20,000,000 Western Wireless, Term B, due 3/31/2006 20,000,000 20,075,000
-------------- --------------
254,066,647 250,850,232
Total Senior Secured Floating
Rate Loan Interests--85.6% 2,820,303,108 2,777,199,690
Shares
Held Warrants & Agreements
Cable Television Services--0.0% 707 Classic Cable, Inc. (a) 0 0
Drilling--0.0% 12,250 Rigco North America (a) 0 0
General Merchandise Stores--0.0% 2,288,402 Just For Feet, Inc. (b) 2,288,402 934,075
Total Investments in Warrants &
Agreements--0.0% 2,288,402 934,075
Face
Amount Short-Term Securities
Commercial Paper**--10.2% $20,000,000 First Data Corporation, 4.80%
due 7/07/1999 19,904,000 19,904,000
Ford Motor Credit Company:
50,000,000 4.79% due 6/07/1999 49,960,083 49,960,083
30,800,000 4.80% due 7/08/1999 30,648,053 30,648,053
General Electric Capital Corp.:
30,000,000 4.84% due 7/12/1999 29,834,633 29,834,633
50,000,000 4.84% due 7/13/1999 49,717,667 49,717,667
51,574,000 General Motors Acceptance Corp.,
4.94% due 6/01/1999 51,574,000 51,574,000
50,000,000 Metropolitan Life Insurance Company,
4.80% due 6/01/1999 50,000,000 50,000,000
50,000,000 Morgan Stanley, Dean Witter,
Discover & Co., 4.78% due 6/16/1999 49,900,417 49,900,417
-------------- --------------
331,538,853 331,538,853
US Government Agency Federal Home Loan Mortgage Corporation
Obligations**--3.7% Participation Certificates:
30,000,000 4.72% due 6/21/1999 29,921,333 29,921,333
90,214,000 4.75% due 7/14/1999 89,700,961 89,700,961
-------------- --------------
119,622,294 119,622,294
Total Investments in Short-Term
Securities--13.9% 451,161,147 451,161,147
Total Investments--99.5% $3,273,752,657 3,229,294,912
==============
Other Assets Less Liabilities--0.5% 17,024,691
--------------
Net Assets--Equivalent to $9.81 Per Share Based on 330,809,990 Shares Outstanding--100.0% $3,246,319,603
==============
<FN>
(a)Warrants entitle the Fund to purchase a predetermined number of
shares of common stock and are non-income producing. The purchase
price and number of shares are subject to adjustment under certain
conditions until the expiration date.
(b)Agreement represents an obligation by Just For Feet, Inc. to pay
an amount to the Fund on April 30, 2002, contingent upon the
earnings before income taxes and depreciation of Just For Feet, Inc.
as of January 31, 2002.
++Not Rated.
*The interest rates on senior secured floating rate loan interests
are subject to change periodically based on the change in the prime
rate of a US Bank, LIBOR (London Interbank Offered Rate), or, in
some cases, another base lending rate.
**Commercial Paper and certain US Government Agency Obligations are
traded on a discount basis; the interest rates shown reflect the
discount rates paid at the time of purchase by the Fund.
</TABLE>
Merrill Lynch Senior Floating Rate Fund, Inc.
May 31, 1999
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Charles C. Reilly, Director
Kevin A. Ryan, Director
Richard R. West, Director
Arthur Zeikel, Director
Joseph T. Monagle Jr., Senior Vice President
Richard C. Kilbride, Vice President
Gilles Marchand, Vice President
Paul Travers, Vice President
Donald C. Burke, Vice President and Treasurer
Patrick D. Sweeney, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
