<PAGE>
TO OUR SHAREHOLDERS JULY 30, 1999
We are pleased to present MassMutual Corporate Investors' report for the second
quarter of 1999, and to announce that the quarterly dividend was increased to 43
cents per share from the 41 cents per share paid in the previous quarter. The
dividend is payable on August 13, 1999 to shareholders of record on July 30,
1999.
The Trust had a good quarter with net assets increasing to $209,184,815 or
$24.36 per share at June 30, 1999 from $200,859,398 or $23.39 per share on March
31, 1999. As the table below indicates, in terms of income and gain, the Trust
is performing well.
<TABLE>
<CAPTION>
Quarter Per Quarter Per YTD Ended Per YTD Ended Per
Ended 6/30/99 Share Ended 6/30/98 Share 6/30/99 Share 6/30/98 Share
------------- ----- ------------- ----- ------- ----- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value 209,184,815 24.36 215,605,563 25.16 209,184,815 24.36 215,605,563 25.16
Realized Gains 6,709,535 0.78 2,261,313 0.26 19,199,638 2.24 9,193,310 1.07
Net Income 3,856,236 0.45 3,260,991 0.38 7,664,324 0.89 6,696,328 0.78
</TABLE>
The Trust's total return for the quarter was 5.94%. By comparison, the table
below shows the returns for the Russell 2000 and Merrill Lynch High Yield
indexes, indexes with similar investments to the Trust, and the S&P 500 and
Lehman Government/Corporate indexes, which are good proxies for the stock and
bond markets respectively.
Total Return for Total Return for
the quarter the YTD
ended 6/30/99 ended 6/30/99
------------- -------------
MassMutual Corporate Investors* 5.94% 3.81%
Lehman Government/Corporate Bond Index -1.09% -2.27%
Merrill Lynch High Yield Index 0.67% 1.76%
S&P 500 Index 7.05% 12.38%
Russell 2000 Index 15.55% 9.28%
*Based on the change in net asset value with reinvestment of dividends.
New private placement investments were made during the quarter in Alpha Shirt
Company, Magnetic Data Technologies, Inc., NPC, Inc. and Safety Speed Cut
Manufacturing Company, Inc. The fixed income component of these investments
carried a weighted average coupon of approximately 12%. (A brief description of
these investments is provided in the Schedule of Investments).
Of the gains taken in the quarter, $4.5 million were from private placement
securities, mostly from the sale of the common stock of Supreme Industries. We
also realized over $2.2 million from the sale of public securities. Of the $2.24
per share of realized gains, $.54 per share represents net short-term gains
which, if not offset, must be distributed to shareholders each year.
During the quarter, the Trustees elected Stuart H. Reese as Trustee and Chairman
of the Board, replacing Richard G. Dooley, who was elected Vice Chairman. Mr.
Reese was the former President of the Trust. Additionally, I was elected
President of the Trust. Previously, I was Senior Vice President.
As of June 30, 1999, MassMutual's critical computer technology hardware and
software, including applications supporting the Trust, continued to be "Year
2000 Compliant" according to MassMutual Y2K certification standards. MassMutual
continues to seek assurances from vendors, customers, service providers,
governments and others, to determine their Year 2000 readiness. MassMutual will
consider the responses to these inquiries in the development of any contingency
plans needed for Year 2000.
Thank you for your continued interest in and support of Corporate Investors.
Sincerely,
/s/ Robert E. Joyal
Robert E. Joyal
President
<PAGE>
<TABLE>
<CAPTION>
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 and 1998 (Unaudited)
1999 1998
-------------- -------------
<S> <C> <C>
Assets:
Investments (Notes 2A, 2B and 5)
(See Schedule of Investments)
Corporate restricted securities at fair value
(Cost 1999 - $173,241,167; 1998 - $156,823,176) $ 171,777,779 $ 176,835,540
Corporate public securities at market value
(Cost 1999 - $54,789,028; 1998 - $46,761,118) 52,146,286 51,574,409
Short-term securities at cost plus earned discount which
approximates market value 1,770,000 4,474,649
-------------- -------------
225,694,065 232,884,598
Cash 201,311 427,625
Interest and dividends receivable, net 4,560,375 3,688,610
Receivable for investments sold 235,903 1,570,858
Other assets 8,085 16,212
-------------- -------------
Total assets $ 230,699,739 $ 238,587,903
-------------- -------------
Liabilities:
Payable for investments purchased $ 728,368 $ 1,965,152
Management fee payable (Note 3) 524,273 808,521
Note payable (Note 4A) 20,000,000 20,000,000
Interest payable (Note 4) 136,211 136,211
Accrued expenses 95,287 72,456
Accounts payable 30,785 --
-------------- -------------
Total liabilities 21,514,924 22,982,340
-------------- -------------
Net Assets:
Common shares, par value $1.00 per share; an unlimited number authorized 8,587,495 8,569,162
Additional paid-in capital 96,064,219 95,644,211
Retained net realized gain on investments, prior years 84,272,696 73,493,073
Undistributed net investment income (Note 2D) 4,913,568 3,862,019
Undistributed net realized gain on investments 19,452,967 9,211,443
Net unrealized appreciation/depreciation of investments (Notes 2A, 2B and 5) (4,106,130) 24,825,655
-------------- -------------
Total net assets 209,184,815 215,605,563
-------------- -------------
Total liabilities and net assets $ 230,699,739 $ 238,587,903
-------------- -------------
Common shares issued and outstanding 8,587,495 8,569,162
-------------- -------------
Net asset value per share $ 24.36 $ 25.16
-------------- -------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2
<PAGE>
<TABLE>
<CAPTION>
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED STATEMENT OF OPERATIONS
For the six months ended June 30, 1999 and 1998 (Unaudited)
1999 1998
------------ ------------
<S> <C> <C>
Investment Income (Note 2B):
Interest $ 9,181,237 $ 8,602,363
Dividends 291,977 382,008
------------ ------------
Total income 9,473,214 8,984,371
------------ ------------
Expenses:
Management fee (Note 3) 1,027,852 1,600,884
Trustees' fees and expenses 69,773 65,155
Transfer Agent/Registrar's expenses 54,000 30,000
Interest (Note 4) 533,000 533,000
Reports to shareholders 24,000 12,000
Audit and legal 27,504 27,514
Other 72,761 19,490
------------ ------------
Total expenses 1,808,890 2,288,043
------------ ------------
Net investment income (1999 - $.89 per share; 1998 - $.78 per share) 7,664,324 6,696,328
------------ ------------
Net realized and unrealized gain (loss) on investments (Notes 2A and 2B):
Net realized gain on investments 19,199,638 9,193,310
Net change in unrealized appreciation/depreciation of investments (19,177,677) 8,912,203
------------ ------------
Net gain on investments 21,961 18,105,513
------------ ------------
Net increase in net assets resulting from operations $ 7,686,285 $ 24,801,841
------------ ------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
3
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS MASSMUTUAL CORPORATE INVESTORS
For the six months ended June 30, 1999 and 1998
(Unaudited)
1999 1998
------------ ------------
<S> <C> <C>
Net increase (decrease) in cash:
Cash flows from operating activities:
Interest and dividends received $ 8,487,299 $ 8,501,895
Interest expense paid (533,000) (533,000)
Operating expenses paid (1,270,114) (1,750,052)
Federal income tax paid (5,820,900) (8,639,902)
------------ ------------
Net cash provided by (used for) operating activities 863,285 (2,421,059)
------------ ------------
Cash flows from investing activities:
Change in short-term portfolio securities, net 6,664,140 (1,587,745)
Purchase of portfolio securities (68,850,812) (58,337,903)
Proceeds from disposition of portfolio securities 67,086,076 71,985,147
------------ ------------
Net cash provided by investing activities 4,899,404 12,059,499
------------ ------------
Net cash provided by operating and investing activities 5,762,689 9,638,440
------------ ------------
Cash flows from financing activities:
Increase in receipts for shares issued on reinvestment of dividends -- 1,365,931
Cash dividends paid from net investment income (6,907,115) (6,189,199)
Cash dividends paid from net realized gain on investments (2,710,879) (4,467,858)
------------ ------------
Net cash used for financing activities (9,617,994) (9,291,126)
------------ ------------
Net increase (decrease) in cash (3,855,305) 347,314
Cash - beginning of year 4,056,616 80,311
------------ ------------
Cash - end of period $ 201,311 $ 427,625
------------ ------------
Reconciliation of net increase (decrease) in net assets to net cash from
operating and investing activities:
Net increase in net assets resulting from operations $ 7,686,285 $ 24,801,841
------------ ------------
(Increase) decrease in investments 2,808,484 (6,798,062)
Increase in interest and dividends receivable, net (602,926) (118,221)
(Increase) decrease in receivable for investments sold 965,687 (1,411,146)
Increase in other assets (8,085) (16,212)
Increase in payable for investments purchased 728,368 1,815,152
Increase in management fee payable 12,424 85,301
Decrease in accrued expenses (37,433) (80,311)
Increase in accounts payable 30,785 --
Decrease in accrued taxes (5,820,900) (8,639,902)
------------ ------------
Total adjustments to net assets from operations (1,923,596) (15,163,401)
------------ ------------
Net cash provided by operating and investing activities $ 5,762,689 $ 9,638,440
------------ ------------
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
4
<PAGE>
<TABLE>
<CAPTION>
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED STATEMENT OF
CHANGES IN NET ASSETS
For the six months ended June 30, 1999 and 1998
(Unaudited)
1999 1998
------------- -------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 7,664,324 $ 6,696,328
Net realized gain on investments 19,199,638 9,193,310
Net change in unrealized appreciation/depreciation of investments (19,177,677) 8,912,203
------------- -------------
Net increase in net assets resulting from operations 7,686,285 24,801,841
Increase in receipts for shares issued on reinvestment of dividends -- 1,365,931
Dividends to shareholders from:
Net investment income (1999 - $.41 per share; 1998 - $.40 per share) (3,520,873) (3,420,627)
------------- -------------
Total increase 4,165,412 22,747,145
Net Assets, beginning of year 205,019,403 192,858,418
------------- -------------
Net Assets, end of period (including undistributed net investment
income in 1999 - $4,913,784; 1998 - $3,862,019) $ 209,184,815 $ 215,605,563
============= =============
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
5
<PAGE>
<TABLE>
<CAPTION>
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SELECTED PER SHARE DATA
Selected data for each common share outstanding for the periods ended:
For the
six months For the
ended 6/30/99 year ended
(Unaudited) 12/31/98
------------- ------------
<S> <C> <C>
Net asset value:
Beginning of year $ 23.87 $ 22.65
----------- -----------
Net investment income .89 1.62
Net realized and unrealized gain on investments .01 1.51
----------- -----------
Total from investment operations .90 3.13
----------- -----------
Dividends from net investment income to common shareholders (0.41) (1.60)
Distributions from net realized gain on investments to common shareholders -- (.31)
----------- -----------
Total distributions (0.41) (1.91)
----------- -----------
Net asset value:
End of period $ 24.36 $ 23.87
=========== ===========
Per share market value:
End of period $ 22.38 $ 23.31
=========== ===========
Total investment return:
Market value (2.25)%* .77%
Net asset value 3.81%* 17.12%
Net assets (in millions):
End of period $ 209.18 $ 205.02
Ratio of operating expenses to average net assets .62%* 1.62%
Ratio of interest expenses to average net assets .26%* .52%
Ratio of total expenses to average net assets .88%* 2.14%
Ratio of net investment income to average net assets 3.74%* 6.76%
Portfolio turnover 30.43%* 60.14%
</TABLE>
*Percentages represent results for the period and are not annualized.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
6
<PAGE>
<TABLE>
<CAPTION>
MASSMUTUAL CORPORATE INVESTORS
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities - 82.12%: (A) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
Private Placement Investments - 76.95%
A T I Acquisition Corporation
A manufacturer of disposable nonwoven protection
products.
Senior Floating Rate Revolving Credit Note
due 2003 $ 493,183 12/16/98 $ 493,183 $ 493,182 $ 493,183
10% Senior Secured Note due 2006 $ 2,068,183 12/16/98 2,068,183 2,068,183 1,997,037
12% Subordinated Note due 2008 $ 1,590,910 12/16/98 1,581,365 1,495,455 1,515,819
Common Stock (B) 318,182 shs. 12/16/98 318,182 318,182 254,546
Warrant, exercisable until 2008, to purchase
common stock at $1 per share (B) 227,273 shs. 12/16/98 95,452 95,455 2,273
---------- ---------- ----------
4,556,365 4,470,457 4,262,858
---------- ---------- ----------
AccTech, LLC
A designer and marketer of specialized cleaning
products
Senior Floating Rate Revolving Credit Note
due 2002 (B) $ 812,520 10/31/96 812,520 812,520 40,626
Senior Secured Series A Floating Rate Note
due 2002 (B) $ 693,444 10/31/96 683,050 693,444 34,672
10.1% Senior Secured Series A Note due 2002 (B) $ 1,040,167 10/31/96 1,013,538 1,040,167 52,008
12% Senior Secured Series B Note due 2004 (B) $ 1,098,000 10/31/96 1,155,206 988,200 54,900
Membership Interests (B) 5 int. 10/31/96 264,080 146,736 --
Warrant, exercisable until 2004, to purchase
membership interests at $.01 per interest (B) 3 int. 10/31/96 -- 109,800 --
---------- ---------- ----------
3,928,394 3,790,867 182,206
---------- ---------- ----------
Adventure Entertainment Corporation
An owner and operator of themed family
entertainment centers
7% Redeemable Series B Preferred Stock 1,872 shs. 10/31/97 182,427 1,846,810 1,705,333
Warrant, exercisable until 2005, to purchase
Class A common stock at $.01 per share (B) 6,447 shs. 10/31/97 64 25,005 64
---------- ---------- ----------
182,491 1,871,815 1,705,397
---------- ---------- ----------
</TABLE>
- --------------------------------------------------------------------------------
7
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
Alpha Shirt Company
A domestic distributor of imprintable
apparel and other related items.
12% Senior Subordinated Note due 2007 $ 3,181,500 4/30/99 $3,162,411 $2,709,716 $3,100,372
Common Stock (B) 1,060 shs. 4/30/99 953,955 1,059,950 953,955
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share (B) 576 shs. 4/30/99 6 477,225 6
---------- ---------- ----------
4,116,372 4,246,891 4,054,333
---------- ---------- ----------
America's Body Co./LCP Holding Co.
A designer and manufacturer of commercial
work vehicles
12% Senior Subordinated Note due 2007 $ 3,500,000 11/2/98 2,986,665 3,006,332 3,354,050
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share (B) 58 shs. 11/2/98 513,333 513,333 1
---------- ---------- ----------
3,499,998 3,519,665 3,354,051
---------- ---------- ----------
Applied Process Solutions, Inc.
An engineer and manufacturer of process systems
for the oil and gas industry
Common Stock (B) 297 shs. 10/26/95 297 -- 48,017
Limited Partnership Interests of Maloney
Industries, Inc. (B) 568 uts. 10/20/95 506,250 665,856 85,909
Limited Partnership Interests of APS
Growth LLC (B) 800,000 uts. 9/28/98 682,583 800,000 640,000
---------- ---------- ----------
1,189,130 1,465,856 773,926
---------- ---------- ----------
Ardent Software, Inc. - O.T.C
A manufacturer and distributor of database
management software
Common Stock (B) 43,002 shs. 12/14/95 129,006 385,378 822,413
---------- ---------- ----------
Associated Vintage Group, Inc.
A provider of custom wine production services in
the United States
11% Senior Subordinated Note due 2005 $ 3,335,000 3/19/97 3,274,636 3,205,071 2,001,000
Common Stock (B) 31,350 shs. 3/19/97 123,750 165,000 82,501
Warrant, exercisable until 2005, to purchase
common stock at $.01 per share (B) 94,107 shs. 3/19/97 94,107 173,346 941
---------- ---------- ----------
3,492,493 3,543,417 2,084,442
---------- ---------- ----------
</TABLE>
- --------------------------------------------------------------------------------
8
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
Automatic Data Processing
A vertical application software company.
Common Stock (B) 11,635 shs. 5/12/98 $ 500,000 $ 500,000 $ 486,797
---------- ---------- ----------
Averstar, Inc.
A provider of software systems, services and
products to a variety of
information technology users.
13% Senior Subordinated Note due 2002 $ 799,318 8/31/95 813,520 732,664 816,983
Class A Common Stock (B) 13,453 shs. 8/31/95 15,799 18,384 33,901
Class B Common Stock (B) 37,200 shs. 8/31/95 43,689 50,837 93,744
Class G Common Stock (B) 96,846 shs. 8/31/95 113,733 104,000 244,051
Class A Common Stock of I E S Holdings (B) 2,941 shs. 2/27/98 -- -- --
Class B Common Stock of I E S Holdings (B) 8,134 shs. 2/27/98 -- -- --
Warrants, exercisable until 2002, to purchase
common stock of I E S Holdings at
$.01 per share (B) 21,176 shs. 2/27/98 -- -- --
---------- ---------- ----------
986,741 905,885 1,188,679
---------- ---------- ----------
Beta Brands, Inc. - T.S.E.
A manufacturer of hard candy and chocolate-coated
products sold primarily to the Canadian market.
Senior Secured Revolving Credit Note due 2006 $ 499,681 12/23/97 499,681 499,681 499,681
Senior Secured Tranche A Floating Rate Note
due 2004 $ 2,294,000 12/23/97 2,273,813 2,294,000 2,294,000
14.75% Senior Secured Tranche B Note
due 2005 $ 669,605 12/23/97 696,389 669,605 652,864
Senior Secured Trance C Floating Rate Note
due 2005 $ 711,000 1/13/99 711,000 711,000 711,000
Limited Partnership Interests of CM Equity
Partners (B) 811,168 int. 12/23/97 648,934 796,649 637,335
Warrant, exercisable until 2005, to purchase
common stock at $.81 per share (B) 214,419 shs. 12/23/97 2,144 -- 2,144
---------- ---------- ----------
4,831,961 4,970,935 4,797,024
---------- ---------- ----------
</TABLE>
- --------------------------------------------------------------------------------
9
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
----------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
C & K Manufacturing and Sales Company
A manufacturer and distributor of branded
packaging and supply products.
Senior Secured Floating Rate
Revolving Credit Facility due 2002 $ 651,700 8/29/96 $ 651,700 $ 651,700 $ 325,850
Senior Secured Series A Floating Rate Term
Note due 2002 $2,236,753 8/29/96 2,212,819 2,236,753 1,118,376
12% Series B Term Note due 2004 $ 533,000 8/29/96 524,738 512,921 266,500
Membership Interests (B) 266 int. 8/29/96 212,800 134,716 12,868
Warrant, exercisable until 2004, to purchase
membership interests at $.01 per interest (B) 16 int. 8/29/96 1 26,650 --
---------- ---------- ----------
3,602,058 3,562,740 1,723,594
---------- ---------- ----------
Cains Foods, L.P.
A producer of mayonnaise, sauce and pickle products
for both the retail and food service markets.
Senior Secured Floating Rate
Revolving Credit Note due 2005 $ 216,216 9/29/95 216,216 216,216 213,708
10% Senior Secured Term Note due 2004 $1,297,296 9/29/95 1,297,296 1,297,296 1,279,782
11.5% Senior Subordinated Note due 2004 $ 945,945 9/29/95 895,706 913,056 929,959
8% Junior Subordinated Convertible Note due
2004, convertible into partnership points at
$1,388.89 per point $ 108,108 9/29/95 108,108 108,108 166,465
Warrant, exercisable until 2006, to purchase
partnership points at $.01 per point (B) 39 pts. 9/29/95 50,261 50,261 62,856
---------- ---------- ----------
2,567,587 2,584,937 2,652,770
---------- ---------- ----------
Capitol Specialty Plastics, Inc.
A producer of desiccant stripes used for packaging
pharmaceutical products.
Common Stock (B) 109 shs. * 438 503 403
---------- ---------- ----------
*12/30/97 and 5/29/99.
</TABLE>
10
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
----------- ------------ --------------- --------- -----------
<S> <C> <C> <C> <C> <C>
Catalina Lighting, Inc. - N.Y.S.E.
A designer, importer and distributor of residential
and office lighting fixtures.
8% Convertible Subordinated Note due 2002,
convertible into common stock at $7.31 per share $ 1,500,000 3/31/94 $1,420,050 $1,500,000 $1,414,650
---------- ---------- ----------
CDnow, Inc. - O.T.C
A music entertainment company which uses the
internet as a global platform for the promoting and
merchandising of music and related merchandise
Warrant, exercisable until 2004, to
purchase common stock at $14.46 per share (B) 27,777 shs. 8/6/97 278 -- 79,123
---------- ---------- ----------
Chaparral Resources, Inc. - O.T.C
An international oil and gas exploration and
production company
Common Stock (B) 164 shs. 12/3/97 107 6,395 5,829
---------- ---------- ----------
Consumer Product Enterprises, Inc.
A manufacturer of colored acrylic felt for
consumer use
Senior Secured Floating Rate
Revolving Credit Notes due 2000 $ 415,260 12/8/95 415,260 415,260 411,232
10.75% Senior Secured Term Note due 2003 $ 1,014,061 12/8/95 1,024,557 1,014,061 993,070
12% Senior Subordinated Note due 2005 $ 800,575 12/8/95 803,858 766,158 750,539
Common Stock (B) 184,560 shs. 12/8/95 138,420 184,560 138,420
Warrant, exercisable until 2005, to
purchase common stock at $.01 per share (B) 138,420 shs. 12/8/95 1,384 50,853 1,384
---------- ---------- ----------
2,383,479 2,430,892 2,294,645
---------- ---------- ----------
Corvest Group, Inc.
A manufacturer and distributor of promotional products
12% Senior Subordinated Note due 2007 $ 3,863,636 * 3,737,681 3,570,678 3,670,841
Common Stock (B) 56 shs. * 86,923 96,591 86,923
Limited Partnership Interest 289,773 int. * 2,173 289,773 217,330
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share (B) 183 shs. * 2 297,203 2
---------- ---------- ----------
3,826,779 4,254,245 3,975,096
---------- ---------- ----------
</TABLE>
*3/5/99 and 3/24/99.
11
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
----------- ------------ --------------- --------- -----------
<S> <C> <C> <C> <C> <C>
D&K Healthcare Resources, Inc. - O.T.C.
A wholesale pharmaceutical distribution company.
Common Stock (B) 258,739 shs. 12/29/87 $ 852,753 $ 852,753 $5,868,520
---------- ---------- ----------
Delta Beverage Group, Inc.
A Pepsi soft drink bottler
Common Stock (B) 966 shs. 3/8/88 181,486 2,006,380 198,118
---------- ---------- ----------
Diversco, Inc./DHI Holdings, Inc.
A contract provider of janitorial and equipment
maintenance services and temporary production
labor to industrial customers
12% Senior Subordinated Note due 2006 $ 2,814,000 8/28/98 2,799,086 2,558,182 2,723,389
Membership Interests of MM/Lincap
Diversco Investments Ltd., LLC (B) 7,341 int. 8/27/98 587,272 734,090 587,272
Warrant, exercisable until 2003 & 2006, to
purchase common stock of DHI Holdings, Inc.
at $.01 per share (B) 3,627 shs. * 36 403,427 36
---------- ---------- ----------
3,386,394 3,695,699 3,310,697
---------- ---------- ----------
Eagle Pacific Industries, Inc. - O.T.C
An extruder of small and medium diameter plastic
pipe and tubing in the United States
8% Redeemable Convertible Preferred Stock,
convertible into common stock at $4.26 per share 3,300 shs. 5/9/97 3,286,140 3,300,000 3,260,070
---------- ---------- ----------
Evans Consoles, Inc.
A designer and manufacturer of consoles and
control center systems
Senior Secured Tranche A Floating Rate Note
due 2005 $ 1,280,000 3/2/98 1,270,272 1,280,000 1,272,192
8.85% Senior Secured Tranche A Note due 2005 $ 1,280,000 3/2/98 1,192,192 1,280,000 1,183,360
11.75% Senior Secured Tranche B Note due 2006 $ 700,000 3/2/98 743,750 599,086 717,010
Common Stock (B) 26,906 shs. 2/11/98 75,600 94,880 75,905
Limited Partnership Interests of CM Equity
Partners (B) 1,264 int. 2/11/98 101,156 126,445 101,156
Warrant, exercisable until 2006, to purchase
common stock at $.01 per share (B) 34,783 shs. 3/2/98 348 112,000 348
---------- ---------- ----------
3,383,318 3,492,411 3,349,971
---------- ---------- ----------
</TABLE>
*10/24/96 and 8/28/98.
- --------------------------------------------------------------------------------
12
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
Examination Management Services, Inc.
A national full-service evidence provider to the
insurance industry and a provider of occupational
health testing.
12% Senior Subordinated Note due 2007 $ 2,109,637 3/16/99 $2,027,572 $1,937,866 $1,975,886
Limited Partnership Interest (B) 214,363 int. 3/2/99 19,263 2,140,363 1,926,327
Warrants, exercisable until 2007, to purchase
common stock at $.01 per share (B) 77,233 shs. 3/16/99 77,233 175,803 77,233
---------- ---------- ----------
2,124,068 4,254,032 3,979,446
---------- ---------- ----------
Fleming Acquisition Corporation
A supplier of high-quality, premium printed labels for
distilled spirits, wine, food and household products.
Common Stock (B) 545 shs. 4/28/95 1,231,111 272,500 26,013
Warrant, exercisable until 2005, to purchase
common stock at $.01 per share (B) 380 shs. 4/28/95 98,235 170,455 18,123
Incentive Warrant, exercisable until
2000, to purchase common stock at $.01
per share (B) 19 shs. 4/28/95 3,339 2,273 915
---------- ---------- ----------
1,332,685 445,228 45,051
---------- ---------- ----------
Golden Bear Oil Specialties
A manufacturer of asphalt and specialty lubricating
and processing oils.
17% Senior Subordinated Note due 2005 $ 3,301,418 7/18/97 3,333,112 3,241,265 3,346,978
12% Series A Convertible Preferred stock 126 shs. 6/19/98 125,880 125,879 123,425
12% Preferred Stock 350 shs. 7/18/97 35,415 311,111 199,080
Common Stock (B) 20,800 shs. 7/18/97 86,738 77,840 208
Warrant, exercisable until 2005, to purchase
common stock at $.001 per share (B) 23,333 shs. 7/18/97 233 69,999 233
Warrant, exercisable until 2010, to purchase
common stock at $.001 per share (B) 17,111 shs. 7/18/97 171 -- 171
---------- ---------- ----------
3,581,549 3,826,094 3,670,095
---------- ---------- ----------
Grand Lyon Enterprises LLC
A manufacturer and marketer of Grand Lyon
Bordeaux Ketchup.
Limited Liability Interests (B) 220,347 int. 5/15/98 220,347 220,347 --
---------- ---------- ----------
</TABLE>
- --------------------------------------------------------------------------------
13
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
Hamilton Funeral Service Centers, Inc.
The largest privately held owner and operator of
funeral homes in the United States.
15% Senior Subordinated Note due 2007 $1,629,384 1/25/99 $1,565,675 $1,602,469 $1,518,586
Warrant, exercisable until 2007, to purchase
common stock at $1 per share (B) 187,933 shs. 1/25/99 1,879 26,915 1,879
---------- ---------- ----------
1,567,554 1,629,384 1,520,465
---------- ---------- ----------
Hartzell Manufacturing, Inc./CMS Holding Company
A provider of contract engineering, manufacturing,
and assembly services for a variety of industrial
manufacturing companies.
12.5% Senior Subordinated note due 2007 $2,626,300 * 2,659,129 2,361,819 2,569,309
Common Stock (B) 63,830 shs. * 540,618 801,438 601,079
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share (B) 30,022 shs. * 3,002 315,156 3,002
---------- ---------- ----------
3,202,749 3,478,413 3,173,390
---------- ---------- ----------
Hudson River Capital, LLC
An acquirer of controlling or substantial interests in
manufacturing and marketing entities.
Series A Preferred Units (B) 88,730 uts. 7/21/94 787,305 572,461 842,935
---------- ---------- ----------
Hussey Seating Company
A manufacturer of spectator seating products.
Senior Secured Floating Rate Revolving Note due 2003 $1,575,000 6/12/96 1,559,564 1,575,000 1,575,000
Senior Secured Floating Rate Note due 2003 $ 600,000 6/12/96 594,060 600,000 600,000
10% Senior Secured Note due 2003 $ 562,501 6/12/96 547,651 562,501 562,501
12% Subordinated Secured Note due 2006 $1,350,000 6/12/96 1,327,320 1,174,090 1,408,185
Warrant, exercisable until 2006, to purchase
common stock at $.01 per share (B) 3,553 shs. 6/12/96 36 225,000 311,744
---------- ---------- ----------
4,028,631 4,136,591 4,457,430
---------- ---------- ----------
Jackson Products, Inc.
A manufacturer and distributor of a variety of
industrial and highway safety products.
Common Stock (B) 434 shs. 8/16/95 43,426 43,426 178,220
Warrant, exercisable until 2005, to purchase
common stock at $.01 per share (B) 1,999 shs. 8/16/95 199,735 199,735 820,365
---------- ---------- ----------
243,161 243,161 998,585
---------- ---------- ----------
</TABLE>
*4/18/97 and 10/7/98.
- --------------------------------------------------------------------------------
14
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
Kappler Safety Group, Inc.
A manufacturer of protective apparel for the
industrial/safety, clean room and healthcare markets.
13% Senior Subordinated Note due 2004 $ 3,333,000 12/2/96 $3,383,995 $3,110,707 $3,204,346
Warrant, exercisable until 2004, to purchase
common stock at $.01 per share (B) 57,418 shs. 12/2/96 57,418 333,300 574
---------- ---------- ----------
3,441,413 3,444,007 3,204,920
---------- ---------- ----------
Latin Communications Group
An operator of Spanish-language media in
North America.
5% Subordinated Note due 2005 (B) $ 46,594 2/4/98 32,616 34,616 33,417
Common Stock (B) 98,586 shs. * 701,116 826,484 924,245
---------- ---------- ----------
733,732 861,100 957,662
---------- ---------- ----------
LIH Investors, L.P.
A Manufacturer and marketer of a broad line of
external accessories for new and used sport utility
vehicles, trucks and vans.
12.5% Senior Subordinated Note due 2006 $ 3,845,000 ** 3,345,150 3,260,691 3,637,754
Common Stock (B) 58,001 shs. ** 406,007 406,003 324,806
Warrant, exercisable until 2006, to purchase
common stock at $.11 per share (B) 108,404 shs. ** 541,241 602,127 1,084
---------- ---------- ----------
4,292,398 4,268,821 3,963,644
---------- ---------- ----------
Louis Dreyfus Natural Gas Corporation - A.S.E
An independent oil and gas company engaged
principally in the acquisition, development and
management of oil and gas properties.
Warrant, exercisable until 2004, to purchase
common stock at $17.81 per share (B) 103,342 shs. 12/27/91 49,714 38,712 549,376
---------- ---------- ----------
Magnetic Data Technologies, Inc./
MDT Holdings LLC
A provider of post-sales services to electronic
component manufacturers.
12% Senior Subordinated Note due 2007 $ 2,700,000 4/9/99 2,635,470 2,105,158 2,559,060
Limited Partnership Interests of MDT
Holdings LLC (B) 1,099,500 int. 4/8/99 989,550 1,099,500 989,550
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share (B) 665,776 shs. 4/9/99 6,658 603,257 6,658
---------- ---------- ----------
3,631,678 3,807,915 3,555,268
---------- ---------- ----------
</TABLE>
*2/14/95, 12/1/95, 2/27/96 and 2/4/98.
**12/23/98 and 1/28/99.
- --------------------------------------------------------------------------------
15
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
Maxtec International Corp.
A manufacturer and distributor of remote control
operating systems for overhead cranes.
Senior Floating Rate Revolving Credit
Facility due 2001 $ 461,536 6/28/95 $ 461,536 $ 461,536 $ 461,536
Common Stock (B) 76,923 shs. 6/28/95 192,115 230,769 221,538
Warrant, exercisable until 2005, to
purchase common stock at $.01 per share (B) 39,563 shs. 6/28/95 98,581 171,429 113,585
----------- ----------- ----------
752,232 863,734 796,659
----------- ----------- ----------
Mercury Computer Systems
A designer and marketer of high performance
computer systems for computationally intense
scientific and engineering applications.
Common Stock (B) 279,750 shs. 12/31/97 1,535,005 839,250 8,570,841
----------- ----------- ----------
Merit Industries, Inc.
A designer and manufacturer of coin-operated video
and dart games.
12% Senior Subordinated Note due 2006 $ 2,516,293 8/19/98 2,469,238 2,343,249 2,327,571
Limited Partnership Interest (B) 987,241 int. 8/12/98 888,516 919,472 827,505
Warrants, exercisable until 2006, to purchase
limited partnership interests at $.01 per share (B) 1,855 int. 8/19/98 19 185,411 19
----------- ----------- ----------
3,357,773 3,448,132 3,155,095
----------- ----------- ----------
NPC, Inc.
A manufacturer of flexible connectors and
equipment used in the installation of sewers and
storm drain pipelines.
Senior Secured Floating Rate Note due 2006 $ 3,381,356 6/25/99 3,352,953 3,381,356 3,352,953
12% Senior Secured Tranche B Note due 2007 $ 978,814 6/25/99 935,550 836,567 953,071
Limited Partnership Interests of Riverside XIII
Holding Company L.P. 355,932 int. 6/11/99 284,746 355,932 284,746
Warrant, exercisable until 2007, to purchase
common stock at $.01 per unit (B) 201 shs. 6/25/99 2 142,373 2
----------- ----------- ----------
4,573,251 4,716,228 4,590,772
----------- ----------- ----------
Nu Horizons Electronics Corp. - O.T.C
A distributor of high technology active and passive
electronic devices.
8.25% Convertible Subordinated Note
due 2002, convertible into common
stock at $9 per share $ 1,411,800 8/31/94 1,425,918 1,411,800 1,411,800
----------- ----------- ----------
</TABLE>
- --------------------------------------------------------------------------------
16
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
Olympic Boat Centers, Inc.
An operator of boat dealerships in Washington state,
Wisconsin, Minnesota and British Columbia.
12% Senior Subordinated Note due 2006 $ 2,774,000 8/7/98 $ 2,764,568 $ 2,449,226 $ 2,654,995
Limited Partnership Interest of Riverside VIII
Holding Company L.P. (B) 1,040,554 int. * 936,498 905,276 814,754
Warrant, exercisable until 2007, to purchase
limited partnership interests at $.01
per interest (B) 25,793 int. 8/7/98 258 350,400 258
----------- ----------- ----------
3,701,324 3,704,902 3,470,007
----------- ----------- ----------
PAR Acquisition Corp./Par Systems, Inc.
A manufacturer of robotic systems.
14.5% Senior Subordinated Note due 2000 $ 212,500 2/5/93 212,160 212,500 212,500
8% Convertible Preferred Stock due 2001,
convertible into common stock at $2 per share 83,333 shs. 2/5/93 166,667 166,667 183,333
Common Stock (B) 133,333 shs. 2/5/93 333,333 333,333 293,333
----------- ----------- ----------
712,160 712,500 689,166
----------- ----------- ----------
Pharmaceutical Buyers, Inc.
A group purchasing organization which specializes in
arranging and negotiating contracts for the purchase
of pharmaceutical goods and medical equipment.
10.5% Senior Secured Note due 2005 $ 725,625 11/30/95 756,174 725,625 738,541
10.5% Senior Secured Convertible Note due
2005, convertible into common stock at $50,000
per share $ 195,000 11/30/95 205,335 195,000 212,452
Common Stock 6 shs. 11/30/95 227,812 337,500 212,472
----------- ----------- ----------
1,189,321 1,258,125 1,163,465
----------- ----------- ----------
Plastipak Packaging, Inc.
A manufacturer of plastic containers.
10.64% Senior Subordinated Note due 2006 $ 3,500,000 10/25/96 3,403,750 3,430,895 3,451,000
Warrant, exercisable until 2006, to purchase
common stock at $.01 per share (B) 97 shs. 10/25/96 55,599 93,625 53,525
----------- ----------- ----------
3,459,349 3,524,520 3,504,525
----------- ----------- ----------
</TABLE>
*8/7/98 and 2/23/99.
- --------------------------------------------------------------------------------
17
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
Playcore, Inc - A.S.E.
A manufacturer and distributor of home playground
equipment and accessories.
12% Subordinated Note due 2005 $ 3,125,000 3/13/97 $ 2,585,000 $2,565,585 $2,913,438
Limited Partnership Interests of Green Grass
Capital II, LLC (B) 81,548 uts. 3/13/97 293,573 433,909 375,121
Warrant, exercisable until 2005, to purchase
limited partnership interests of Green Grass
Capital II, LLC at $.01 per unit (B) 148,044 uts. 3/13/97 531,774 680,722 679,818
----------- ----------- ----------
3,410,347 3,680,216 3,968,377
----------- ----------- ----------
Precision Dynamics, Inc.
A manufacturer of custom-designed solenoid valves
and controls
Revolving Credit Facility due 2003 $ 815,000 7/22/96 806,932 815,000 776,695
Senior Secured Floating Rate Term Note due 2003 $ 2,575,400 7/22/96 2,550,161 2,575,400 2,454,356
12% Senior Secured Term Note due 2004 $ 489,000 7/22/96 482,545 415,439 468,560
8% Preferred Stock 283 shs. 7/22/96 269,268 231,873 178,256
Common Stock (B) 599 shs. 7/22/96 21,699 28,978 14,211
Warrant, exercisable until 2004, to purchase
common stock at $.01 per share (B) 322 shs. 7/22/96 3 97,800 7,648
----------- ----------- ----------
4,130,608 4,164,490 3,899,726
----------- ----------- ----------
Process Chemicals, LLC
A specialty chemical company that manufactures
process chemicals for the fertilizer, asphalt and
concrete industries
6% Redeemable Preferred Membership Interests 2,525 int. * 248,410 2,653,219 2,547,621
Common Membership Interests 9,863 int. * 24,855 60,127 237,114
----------- ----------- ----------
273,265 2,713,346 2,784,735
----------- ----------- ----------
Protein Genetics, Inc.
A producer of bovine artificial insemination
products, related breeding and healthcare products
and specialty genetics sold to the dairy and beef
industries
11.67% Senior Secured Note due 2004 $ 1,200,000 8/12/94 1,184,160 1,200,000 720,000
11.51% Junior Secured Note due 1999 $ 600,000 8/12/94 587,280 600,000 300,000
9.8% Redeemable Exchangeable Preferred Stock 10,000 shs. 8/12/94 847,900 1,000,000 200,000
Common Stock (B) 1,492 shs. 8/12/94 15 -- 112
----------- ----------- ----------
2,619,355 2,800,000 1,220,112
----------- ----------- ----------
</TABLE>
*7/31/97 and 1/4/99.
- --------------------------------------------------------------------------------
18
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
RailTex, Inc. - O.T.C.
An operator of short-line railroads in the Midwest,
West and Canada.
12% Senior Subordinated Note due 2002 $ 1,500,000 2/16/93 $ 1,599,150 $ 1,500,000 $ 1,570,350
Common Stock (B) 35,500 shs. 2/16/93 340,800 340,800 467,933
------------ ----------- -----------
1,939,950 1,840,800 2,038,283
------------ ----------- -----------
Rent-Way, Inc. - O.T.C
An operator of rent-to-own stores across the
United States.
Warrant, exercisable until 2002, to purchase
common stock at $9.94 per share (B) 20,000 shs. 7/18/95 200 -- 286,494
------------ ----------- -----------
Safety Speed Cut Manufacturing, Inc.
A manufacturer of vertical panel saws and routers
for the wood working industry.
Senior Secured Floating Rate Tranche A Note $ 3,580,398 6/2/99 3,580,398 3,580,398 3,557,841
due 2007
12% Senior Secured Tranche B Note due 2007 $ 1,130,652 6/2/99 1,130,652 1,130,652 1,089,157
Class B Common Stock (B) 1,480 shs. 6/2/99 256,212 256,212 204,969
------------ ----------- -----------
4,967,262 4,967,262 4,851,967
------------ ----------- -----------
Sharp International Corporation
A designer and distributor of wrist watches, clocks,
pens and mechanical pencils.
11% Subordinated Debenture due 2006 $ 2,200,000 7/10/98 2,108,260 2,169,829 2,058,760
11% Subordinated Note due 2008 $ 2,050,000 3/26/99 2,026,630 2,018,430 1,982,350
Warrants, exercisable until 2006 and 2008,
to purchase common stock at $.01 per share (B) 75,579 shs. * 756 61,741 756
------------ ----------- -----------
4,135,646 4,250,000 4,041,866
------------ ----------- -----------
Star International, Inc.
A manufacturer of commercial cooking appliances.
9.65% Senior Secured Note due 2004 $ 1,173,134 5/27/94 1,173,134 1,173,134 1,164,101
10.5% Subordinated Note due 2004 $ 716,418 5/27/94 716,418 716,418 695,570
Common Stock (B) 4,310 shs. 5/27/94 259,735 259,735 149,188
Warrant, exercisable until 2004, to purchase
common stock at $.01 per share (B) 3,224 shs. 5/27/94 32 -- 111,567
------------ ----------- -----------
2,149,319 2,149,287 2,120,426
------------ ----------- -----------
Supreme Industries, Inc. - A.S.E.
A manufacturer of specialized truck bodies.
Common Stock (B) 90,887 shs. ** 207,886 267,354 792,426
Common Stock of TGC Industries, Inc (B) 6,361 shs. 9/30/86 3,166 9,497 6,261
------------ ----------- -----------
211,052 276,851 798,687
------------ ----------- -----------
</TABLE>
*7/10/98 and 3/26/99.
**5/23/79, 12/15/95 and 6/9/96.
- --------------------------------------------------------------------------------
19
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
The Tranzonic Companies
A producer of commercial and industrial supplies,
such as safety products, janitorial supplies, work
apparel, washroom and restroom supplies and
sanitary care products.
12.5% Senior Subordinated Note due 2006 $ 2,712,000 2/5/98 $ 2,762,172 $ 2,383,144 $ 2,724,746
Common Stock (B) 630 shs. 2/4/98 567,000 630,000 567,000
Warrants to purchase shares of Class B
common stock at .01 per share (B) 444 shs. 2/5/98 4 368,832 4
------------ ----------- -----------
3,329,176 3,381,976 3,291,750
------------ ----------- -----------
Tidewater Holdings, Inc.
An operator of a barge transportation line on the
Columbia/Snake River system.
Convertible Preferred Stock, convertible
into common stock at $1,000 per share (B) 1,120 shs. 7/25/96 1,008,000 1,120,000 1,167,869
Warrant, exercisable until 2008, to purchase
common stock at $.01 per share (B) 474 shs. 7/25/96 43 48,216 494,004
------------ ----------- -----------
1,008,043 1,168,216 1,661,873
------------ ----------- -----------
TransMontaigne Oil Company - A.S.E
An independent petroleum products marketing
company.
12.75% Senior Subordinated
Debenture due 2000 $ 1,200,000 3/28/91 1,274,280 1,183,792 1,227,720
Common Stock (B) 258,720 shs. * 400,000 798,595 2,762,638
Warrant, exercisable until 2001, to purchase
common stock at $3.60 per share (B) 74,606 shs. 3/28/91 7,461 42,000 568,356
------------ ----------- -----------
1,681,741 2,024,387 4,558,714
------------ ----------- -----------
Trend Technologies, Inc.
A manufacturer and assembler of plastic injection
molded parts.
12% Subordinated Note due 2005 $ 2,513,500 3/21/97 2,592,675 2,510,371 2,277,985
Limited Partnership Interests of Riverside V
Holding Company L.P. 720,715 uts. ** 655,759 775,845 581,905
Limited Partnership Interests of Riverside V-A
Holding Company L.P. 1,550,331 uts. ** 1,485,581 1,668,297 1,334,680
Warrant, exercisable until 2005, to purchase
common stock at $.01 per share (B) 3,131 uts. 3/21/97 3,131 3,131 313
------------ ----------- -----------
4,737,146 4,957,644 4,194,883
------------ ----------- -----------
</TABLE>
*3/28/91, 12/18/91, 9/30/92, 9/30/93, 9/30/94, 3/31/95 and 5/9/95.
**3/21/97, 10/16/97, 11/19/97 and 3/12/99.
- --------------------------------------------------------------------------------
20
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
-------------- ----------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C>
Tridex Corp. - O.T.C.
A designer and manufacturer of point-of-sale
monitors and keyboards used by retailers and
restaurants.
12% Senior Subordinated Note due 2005 $ 3,000,000 4/17/98 $ 30,000 $ 3,000,000 $ 900,000
Common Stock (B) 71,429 shs. 4/17/98 500,003 500,003 164,730
Warrant, exercisable until 2005, to purchase
common stock at $2.03 per share (B) 218,182 shs. 5/26/98 -- -- 104,335
------------ ------------ -----------
530,003 3,500,003 1,169,065
------------ ------------ -----------
Truseal Technologies, Inc.
A manufacturer of sealant systems for the North
American window and door market.
12.25% Senior Subordinated Note due 2006 $ 2,675,000 6/23/97 2,733,315 2,353,175 2,619,628
Limited Partnership Interests (B) 8,246 uts. 6/17/97 742,140 824,600 742,140
Warrant, exercisable until 2006, to purchase
limited partnership interests at $.01 per unit (B) 1,258 uts. 6/23/97 13 376,932 13
------------ ------------ -----------
3,475,468 3,554,707 3,361,781
------------ ------------ -----------
U.S. Netting, Inc.
A manufacturer of plastic netting for a wide
variety of industries.
Senior Secured Floating Rate
Revolving Note due 2000 $ 55,890 5/3/95 55,890 55,890 55,890
11% Senior Secured Note due 2005 $ 1,257,523 5/3/95 1,390,569 1,257,523 1,261,044
12% Subordinated Note due 2005 $ 652,050 5/3/95 733,622 625,941 655,571
Common Stock (B) 4,911 shs. 5/3/95 162,652 391,230 4,911
Warrant, exercisable until 2005, to purchase
common stock at $.01 per share (B) 2,795 shs. 5/3/95 92,549 35,923 28
------------ ------------ -----------
2,435,282 2,366,507 1,977,444
------------ ------------ -----------
U.S. Silica Company
A producer of high grade industrial and specialty
ground silica sands in North America.
Redeemable Preferred Stock Series A (B) 42,001 shs. 12/19/96 291,673 388,898 369,453
Convertible Preferred Stock Series B,
convertible into Series B common stock at
$9.26 per share (B) 84,002 shs. 12/19/96 583,352 777,802 738,907
Warrant, exercisable until 2005, to purchase
Series A preferred stock and Series B
preferred stock at $.01 per unit (B) 6,481 uts. 12/19/96 12,963 130 4,141
------------ ------------ -----------
887,988 1,166,830 1,112,501
------------ ------------ -----------
Victory Ventures, LLC
An acquirer of controlling or substantial interests in
other entities.
Series A Preferred Units (B) 11,270 uts. 12/2/96 12,701 26,768 22,540
------------ ------------ -----------
</TABLE>
- --------------------------------------------------------------------------------
21
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares, Units,
Warrants or Fair Value Fair Value
Principal Acquisition at Acquisition Cost at 6/30/99
Corporate Restricted Securities: (A) (Continued) Amount Date Date (Note 2B) (Note 2A)
----------- ------------ ------------- ------------ ----------
<S> <C> <C> <C> <C> <C>
Vitex Packaging, Inc.
A manufacturer of specialty packaging, primarily
envelopes and tags used on tea bags.
Senior Secured Floating Rate
Revolving Credit Facility due 2003 $ 489,676 1/2/98 $ 485,759 $ 489,676 $ 486,738
Senior Secured Floating Rate Term Tranche A $ 2,133,600 1/2/98 2,116,745 2,133,600 2,121,012
due 2005
12% Senior Secured Tranche B Note due 2007 $ 672,000 1/2/98 678,787 621,600 651,638
Limited Partnership Interests of Riverside VI
Holding Company L.P. 323,782 int. 12/30/97 2,590 300,443 240,343
Warrant, exercisable until 2007, to purchase
common stock at $.01 per share (B) 89 shs. 1/2/98 1 50,402 1
------------- ----------- ------------
3,283,882 3,595,721 3,499,732
------------- ----------- ------------
Total Private Placement Investments $ 147,465,569 161,648,589 160,977,165
------------- ----------- ------------
</TABLE>
22
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares, Units,
Warrants or Market Value
Interest Due Principal Cost at 6/30/99
Rule 144A Securities - 5.17%: (A) Rate Date Amount (Note 2B) (Note 2A)
------------- ----------- ------------ --------------- ----------------
<S> <C> <C> <C> <C> <C>
Bonds - 3.11%
ADV Glassifiber 9.875% 1/15/09 $ 500,000 $ 490,000 $ 482,500
Atlantic Coast Airlines, Inc. 8.750 1/1/07 541,708 541,708 513,615
Climachem, Inc. 10.750 12/1/07 175,000 168,000 167,344
Cuddy International Corp. 10.750 12/1/07 525,000 517,156 462,000
DeCrane Aircraft 12.000 9/30/08 700,000 700,000 717,500
Lyondell Petrochemical Company 9.625 5/1/07 575,000 575,000 598,000
Mrs. Fields Original Cookies, Inc. 10.125 12/1/04 800,000 776,008 704,000
MSX International, Inc. 11.375 1/15/08 500,000 490,250 485,000
Oxford Health Plans 11.000 5/15/05 100,000 100,000 101,000
Tjiwi Kima Fin Mauritius LTD 10.000 8/1/04 2,000,000 1,060,000 1,430,000
Von Hoffman Press, Inc. 10.875 5/15/07 850,000 851,112 850,000
------------ ------------ ------------
Total Bonds $ 7,266,708 6,269,234 6,510,959
============ ------------ ------------
Convertible Bonds - .96%
Antec Corp. 4.500 5/15/03 100,000 100,000 142,750
Arbor Software Corporation 4.500 3/15/05 200,000 200,000 145,750
Concentra Managed Care, Inc. 4.500 3/15/03 600,000 600,000 563,832
Key Energy Group 5.000 9/15/04 460,000 460,000 291,093
Mark IV Industries 4.750 11/1/04 750,000 711,875 666,180
Oak Industries 4.875 3/1/08 150,000 154,500 194,438
------------ ------------ ------------
Total Convertible Bonds $ 2,260,000 2,226,375 2,004,043
============ ------------ ------------
Convertible Preferred Stock - 1.06%
D T Industries 40,000 2,000,000 1,000,000
Newell Financial Trust 20,250 1,012,500 1,128,938
Jordan Telecom Products 88 70,469 89,862
------------ ------------
3,082,969 2,218,800
------------ ------------
Common Stock - .01%
Jordan Telecom Products (B) 70 14,000 14,000
------------ ------------
Total Common Stock 14,000 14,000
------------ ------------
Warrants - .03%
Energy Conversion Devices, Inc. (B) 32,500 -- 52,812
------------ ------------
Total Warrants -- 52,812
------------ ------------
Total Rule 144A Securities 11,592,578 10,800,614
------------ ------------
Total Corporate Restricted Securities 173,241,167 171,777,779
------------ ------------
</TABLE>
23
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares, Units,
Warrants or Market Value
Interest Due Principal Cost at 6/30/99
Corporate Public Securities - 24.93%: (A) Rate Date Amount (Note 2B) (Note 2A)
------------- ---------- ------------ -------------- -------------
<S> <C> <C> <C> <C> <C>
Bonds - 13.25%
Amtran, Inc. 10.500% 8/1/04 $ 600,000 $ 600,000 $ 606,000
Anchor Advanced Products 11.750 4/1/04 410,000 413,000 420,250
Archibald Candy Corp. 10.250 7/1/04 250,000 254,688 250,000
Bell Sports, Inc. 11.000 8/15/08 400,000 400,000 398,000
Cabot Safety Corporation 12.500 7/15/05 1,000,000 1,000,000 1,070,000
Callon Petroleum Company 10.125 9/15/02 500,000 497,120 485,625
Canadian Airlines Corporation 12.250 8/1/06 400,000 370,000 156,500
Canadian Airlines Corporation 10.000 5/1/05 455,000 456,000 336,700
Central Tractor Farm & Country, Inc. 10.625 4/1/07 600,000 586,500 597,000
Contifinancial Corporation 8.125 4/1/08 950,000 699,437 817,000
Continental Airlines, Inc. 11.500 4/2/08 567,920 607,675 646,202
Cross Timbers Oil Company 9.250 4/1/07 175,000 173,031 170,625
DecisionOne Corporation 9.750 8/1/07 525,000 523,250 21,000
Derby Cycle Corp. 10.000 5/15/08 460,000 460,000 370,300
Doe Run Resources Corp. 11.250 3/15/05 460,000 440,000 414,000
Doe Run Resources Corp. 11.354 3/15/03 160,000 135,600 137,600
Great Lakes Dredge & Dock Corp. 11.250 8/15/08 450,000 450,000 463,500
Grove Worldwide 9.250 5/1/08 335,000 292,325 247,900
Haynes International, Inc. 11.625 9/1/04 640,000 577,000 597,600
Hosiery Corporation of America 13.750 8/1/02 1,000,000 987,800 1,080,000
Integrated Health Services 9.500 9/15/07 450,000 325,969 328,500
Integrated Health Services 10.250 4/30/06 350,000 264,250 266,000
International Wire Group, Inc. 11.750 6/1/05 750,000 750,000 780,000
International Wire Group, Inc. 11.750 6/1/05 550,000 598,125 570,625
J H Haefner Company 10.000 5/15/08 125,000 110,937 127,188
Jordan Industries, Inc. 10.375 8/1/07 500,000 500,000 506,250
Jordan Telecom Products 9.875 8/1/07 1,150,000 1,139,907 1,138,500
JTM Industries / ISG Resources, Inc. 10.000 4/15/08 300,000 300,000 307,500
Kevco, Inc. 10.375 12/1/07 275,000 151,250 189,750
Keystone Consolidated Ind., Inc. 9.625 8/1/07 100,000 90,500 97,000
Loewen Group, Inc. 7.500 4/15/01 450,000 337,500 281,250
Loewen Group, Inc. 8.250 4/15/03 250,000 234,375 155,000
Loewen Group, Inc. 8.250 10/15/03 125,000 118,750 77,500
Lyondell Petrochemical Company 9.875 5/1/07 750,000 750,000 768,750
M J D Communications, Inc. 9.500 5/1/08 100,000 100,000 99,000
M J D Communications, Inc. 9.247 5/1/08 250,000 250,000 249,688
Magnum Hunter RE 10.000 6/1/07 725,000 661,125 681,500
McLeod, Inc. 9.500 11/1/08 225,000 225,000 225,000
MCMS, Inc. 9.750 3/1/08 600,000 600,000 330,000
Mediacom LLC 8.500 4/15/08 450,000 447,750 423,000
Mohegan Tribal Gaming Authority 8.750 1/1/09 160,000 160,000 159,000
Morris Materials Handling 9.500 4/1/08 300,000 300,000 120,000
Mrs. Fields Original Cookies, Inc. 10.125 12/1/04 175,000 154,000 157,500
NE Restaurant Company, Inc. 10.750 7/15/08 520,000 516,250 473,200
Neenah Corporation 11.125 5/1/07 575,000 581,875 563,500
Neff Corp. 10.250 6/1/08 230,000 227,688 234,600
</TABLE>
24
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Shares, Units,
Warrants or Market Value
Interest Due Principal Cost at 6/30/99
Corporate Public Securities: (Continued) Rate Date Amount (Note 2B) (Note 2A)
---------- --------- ------------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Bonds (Continued)
Nextel Communications 0.000% 2/15/08 $ 575,000 $ 362,312 $ 393,875
Northwest Airlines Corp. 10.150 1/2/05 511,460 511,460 538,500
Numatics, Inc. 9.625 4/1/08 820,000 790,175 664,200
Philipp Brothers Chemcals, Inc. 9.875 6/1/08 385,000 363,756 352,275
Pillotex Corporation 10.000 11/15/06 100,000 103,000 94,500
Remington Products Compny 11.000 5/15/06 600,000 595,506 492,000
Rent-A-Center, Inc. 11.000 8/15/08 450,000 450,000 451,125
Scovill Fastener, Inc. 11.250 11/30/07 500,000 500,000 255,000
Sun Media Corporation 9.500 5/15/07 450,000 469,750 466,875
Sun Media Corporation 9.500 2/15/07 175,000 175,875 181,562
Telex Communications, Inc. 10.500 5/1/07 1,150,000 1,162,938 874,000
Therma-Wave, Inc. 10.625 5/15/04 710,000 652,500 569,775
Trans World Airlines 11.500 12/15/04 500,000 494,110 440,000
Triton Energy 8.750 4/15/02 275,000 263,312 268,125
United Refining Company 10.750 6/15/07 1,750,000 1,750,000 1,137,500
Vintage Petroleum 8.625 2/1/09 375,000 364,688 364,688
W R Carpenter North America 10.625 6/15/07 625,000 631,917 593,750
Wavetek Corporation 10.125 6/15/07 130,000 130,000 115,050
Windmere Durable Holdings, Inc. 10.000 7/31/08 360,000 349,425 343,800
Worldtex, Inc. 9.625 12/15/07 600,000 600,000 525,000
------------ -------------- -------------
Total Bonds $ 31,814,380 30,539,401 27,717,203
------------ -------------- -------------
Common Stock - 7.01%
A M R Corporation (B) 4,900 356,105 334,425
American Country Holdings, Inc. (B) 405,590 760,889 481,638
Amerisource Health Corporation (B) 8,126 310,819 207,213
Ariba Inc. (B) 1,625 37,375 158,031
Associated Materials, Incorporated 40,802 458,665 545,727
Benson Petroleum, LTD. (B) 200,000 154,408 101,340
BP Prudhoe Bay Royalty Trust 26,180 372,266 196,350
Budget Group, The (B) 95,456 1,996,621 1,175,302
Career Blazers, Inc. (B) 105,000 577,500 525,000
Collins & Aikman Corporation 40,200 240,834 306,525
Complete Business Solutions (B) 5,417 167,927 97,167
Computer Horizons Corporation (B) 21,668 258,540 299,289
Cybersource Corporation (B) 1,950 21,450 28,763
Donaldson, Lufkin & Jenrette, Inc.-DLJ direct (B) 16,250 325,000 479,375
E-LOAN, Inc. (B) 1,625 22,750 62,664
Excalibur Technologies Corp. (B) 17,501 180,264 249,389
Florida Panthers Holdings, Inc. (B) 35,502 681,042 379,428
Florist Transworld Delivery, Inc. (B) 29,374 41,258 205,618
General Chemical Group, Inc. 10,200 149,298 31,875
GenTek, Inc. 10,200 112,100 141,525
GlobeSpan Inc. (B) 1,300 19,500 51,675
Goto.com, Inc. (B) 6,500 97,500 182,000
Hosiery Corporation of America (B) 1,000 -- 40,250
</TABLE>
25
<PAGE>
<TABLE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999 (Unaudited)
<CAPTION>
Shares, Units,
Warrants or Market Value
Interest Due Principal Cost at 6/30/99
Corporate Public Securities : (Continued) Rate Date Amount (Note 2B) (Note 2A)
-------- ------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Common Stock (Continued)
Irwin Naturals (B) 27,000 $ 151,000 $ 50,625
Juniper Networks Inc. 1,625 55,250 242,125
Network Access Solutions Corporation (B) 48,750 585,000 648,984
Network Plus, Corp. (B) 3,250 52,000 67,844
Midway Airlines Corp. (B) 27,088 505,057 277,652
Oxford Health Plans (B) 24,375 459,900 379,336
Pathways Group, Inc. (B) 28,655 640,350 189,840
Persistence Software, Inc. (B) 1,300 14,300 17,713
Phone.com, Inc. (B) 975 15,600 54,600
Princeton Video Image, Inc. (B) 12,250 85,750 55,508
R&B Falcon Corporation (B) 40,600 436,982 380,625
Rent-Way, Inc. - O.T.C. 20,725 1,200,008 2,972,853
Republic Services, Inc. (B) 28,520 481,275 705,870
Software.com, Inc. (B) 3,250 48,750 75,360
Swiss Army Brands, Inc. (B) 39,000 393,825 346,125
TSR, Inc. (B) 6,500 42,640 55,250
Viant Corporation (B) 650 10,400 22,750
Women First Healthcare, Inc. (B) 27,950 307,450 370,338
Young & Rubicam, Inc. 32,500 1,210,625 1,476,719
------------- ------------
Total Common Stock 14,038,273 14,670,686
------------- ------------
Convertible Bonds - 4.26%
Arbor Software Corporation 4.500% 3/15/05 50,000 35,500 36,438
Concentra Managed Care, Inc. 4.500 3/15/03 1,170,000 1,092,386 1,099,472
Conexant Systems, Inc. 4.250 5/1/06 425,000 425,000 602,969
Cymer, Inc. 3.500 8/6/04 500,000 400,000 430,325
Diamond Offshore Drilling 3.750 2/15/07 900,000 896,906 886,923
Dura Pharmaceuticals 3.500 7/15/02 590,000 597,031 443,975
Family Golf Centers, Inc. 5.750 10/15/04 1,905,000 1,660,530 1,199,312
Kellstorm Industries, Inc. 5.500 6/15/03 975,000 833,150 807,992
Magna International, Inc. 4.875 2/15/05 800,000 791,000 784,000
Mindspring Enterprises, Inc. 5.000 4/15/06 755,000 686,472 714,419
Oak Industries 4.875 3/1/08 225,000 203,000 291,656
Savoy Pictures Entertainment 7.000 7/1/03 900,000 937,500 882,000
World Color Press, Inc. 6.000 10/1/07 770,000 712,100 732,370
-------------- ------------- ------------
Total Convertible Bonds $ 9,965,000 9,270,575 8,911,851
============== ------------- ------------
Convertible Preferred Stock - .39%
PSINet, Inc. 17,900 895,000 812,212
------------- ------------
Total Convertible Preferred Stock 895,000 812,212
------------- ------------
Warrants - .02%
American Country Holdings, Inc. (B) 183,117 45,779 34,334
------------- ------------
Total Warrants 45,779 34,334
------------- ------------
Total Corporate Public Securities 54,789,028 52,146,286
------------- ------------
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE
INVESTORS
June 30, 1999
(Unaudited)
Market Value
Due Principal Cost at 6/30/99
Short-Term Securities: Yield Date Amount (Note 2B) (Note 2A)
----- ------ ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Commercial Paper - 0.85%
VF Corporation 6.000% 7/1/99 $ 1,770,000 $ 1,770,000 $ 1,770,000
----------- ------------ ------------
Total Short-Term Securities $ 1,770,000 1,770,000 1,770,000
----------- ------------ ------------
Total Investments - 107.90% $229,800,195 225,694,065
------------
Other Assets - 2.39 5,005,674
Liabilities - (10.29) (21,514,924)
------- ------------
Total Net Assets - 100.00% $209,184,815
------- ------------
</TABLE>
(A) In each of the convertible note, warrant, convertible preferred and common
stock investments, the issuer has agreed to provide certain registration
rights.
(B) Non-income producing security.
INDUSTRY CLASSIFICATION
Fair Value
at 6/30/99
Corporate Restricted Securities: (Note 2A)
----------
AEROSPACE & DEFENSE - .34%
DeCrane Aircraft $ 717,500
----------
AUTOMOBILE - 3.82%
America's Body Co./LCP Holding Co. 3,354,051
LIH Investors, L.P. 3,963,644
Mark IV Industries 666,180
----------
7,983,875
----------
BEVERAGE, FOOD & TOBACCO - 4.99%
Associated Vintage Group, Inc. 2,084,442
Beta Brands, Inc. 4,797,024
Cains Foods, L.P. 2,652,770
Delta Beverage Group, Inc. 198,118
Grand Lyon Enterprises LLC --
Mrs. Fields Original Cookies, Inc. 704,000
----------
10,436,354
----------
BROADCASTING & ENTERTAINMENT - .46%
Latin Communications Group 957,662
----------
BUILDINGS & REAL ESTATE - 1.99%
Supreme Industries, Inc. 798,687
Truseal Technologies, Inc. 3,361,781
----------
4,160,468
----------
CARGO TRANSPORT - 1.77%
RailTex, Inc. 2,038,283
Tidewater Holdings, Inc. 1,661,873
----------
3,700,156
----------
CHEMICAL, PLASTICS & RUBBER - 4.65%
AccTech, LLC 182,206
Lyondell Petrochemical Company 598,000
Process Chemicals, LLC 2,784,735
Trend Technologies, Inc. 4,194,883
U.S. Netting, Inc. 1,977,444
----------
9,737,268
----------
CONSUMER PRODUCTS - 5.51%
Alpha Shirt Company 4,054,333
Consumer Product Enterprises, Inc. 2,294,645
Newell Financial Trust 1,128,938
Sharp International Corp. 4,041,866
----------
11,519,782
----------
CONTAINERS, PACKAGING & GLASS - 4.17%
C & K Manufacturing and Sales Company 1,723,594
Capitol Specialty Plastics, Inc. 403
Plastipak Packaging, Inc. 3,504,525
Vitex Packaging, Inc. 3,499,732
----------
8,728,254
----------
- -------------------------------------------------------------------------------
27
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.) MASSMUTUAL CORPORATE INVESTORS
June 30, 1999 (Unaudited)
INDUSTRY CLASSIFICATION (Continued)
Fair Value
at 6/30/99
Corporate Restricted Securities: (Continued) (Note 2A)
------------
DIVERSIFIED/CONGLOMERATE -
MANUFACTURING - 20.96%
ADV Glassifiber $ 482,500
Corvest Promotional Products, Inc. 3,975,096
D T Industries 1,000,000
Eagle Pacific Industries, Inc. 3,260,070
Energy Conversion Devices, Inc. 52,812
Evans Consoles, Inc. 3,349,971
Fleming Acquisition Corporation 45,051
Golden Bear Oil Specialties 3,670,095
Hartzell Manufacturing, Inc./CMS Holding 3,173,390
Company
Hudson River Capital, LLC 842,935
Hussey Seating Company 4,457,430
Jackson Products, Inc. 998,585
Kappler Safety Group, Inc. 3,204,920
Maxtec International Corp. 796,659
NPC, Inc. 4,590,772
PAR Acquisition Corp. 689,166
Safety Speed Cut Manufacturing 4,851,967
The Tranzonic Companies 3,291,750
U.S. Silica Company 1,112,501
------------
43,845,670
------------
DIVERSIFIED/CONGLOMERATE -
SERVICE - 6.70%
Diversco, Inc./DHI Holdings, Inc. 3,310,697
Examination Management Services, Inc. 3,979,446
Hamilton Funeral Services 1,520,465
Magnetic Data Technologies, LLC 3,555,268
MSX International, Inc 485,000
Pharmaceutical Buyers, Inc. 1,163,465
------------
14,014,341
------------
ELECTRONICS - 8.46%
Arbor Software Corporation 145,750
Ardent Software, Inc. 822,413
Automatic Data Processing 486,797
Averstar, Inc. 1,188,679
Mercury Computer Systems 8,570,841
Nu Horizons Electronics Corp. 1,411,800
Precision Dynamics, Inc. 3,899,726
Tridex Corp. 1,169,065
------------
17,695,071
------------
FARMING & AGRICULTURE - .80%
Cuddy International Corp. 462,000
Protein Genetics, Inc. 1,220,112
------------
1,682,112
------------
HEALTHCARE, EDUCATION & CHILDCARE - 3.12%
Concentra Managed Care, Inc. 563,832
D&K Healthcare Resources, Inc. 5,868,520
Oxford Health Plans 101,000
------------
6,533,352
------------
HOME & OFFICE FURNISHINGS,
HOUSEWARES, AND DURABLE
CONSUMER PRODUCTS - 1.69%
Catalina Lighting, Inc. 1,414,650
Star International Holdings, Inc. 2,120,426
------------
3,535,076
------------
LEISURE, AMUSEMENT,
ENTERTAINMENT - 5.92%
Adventure Entertainment Corporation 1,705,397
CDnow, Inc. 79,123
Merit Industries, Inc. 3,155,095
Olympic Boat Centers, Inc. 3,470,007
Playcore, Inc. 3,968,377
------------
12,377,999
------------
MISCELLANEOUS - .77%
Climachem, Inc. 167,344
Tjiwi Kima Fin Mauritius LTD 1,430,000
Victory Ventures, LLC 22,540
------------
1,619,884
------------
OIL AND GAS - 2.95%
Applied Process Solutions, Inc. 773,926
Chaparral Resources, Inc. 5,829
Key Energy Group 291,093
Louis Dreyfus Natural Gas Corporation 549,376
TransMontaigne Oil Company 4,558,714
------------
6,178,938
------------
PERSONAL TRANSPORTATION - .25%
Atlantic Coast Airlines, Inc. 513,615
------------
PRINTING & PUBLISHING - .41%
Von Hoffman Press, Inc. 850,000
------------
RETAIL STORES - 2.18%
A T I Acquisition Corporation 4,262,858
Rent-Way, Inc. 286,494
------------
4,549,352
------------
TELECOMMUNICATIONS - .21%
Antec Corp. 142,750
Jordan Telecom Products 103,862
Oak Industries 194,438
441,050
------------
Total Corporate Restricted Securities $171,777,779
============
<PAGE>
NOTES TO FINANCIAL STATEMENTS MASSMUTUAL CORPORATE
INVESTORS
(Unaudited)
1. History
MassMutual Corporate Investors (the "Trust") is a closed-end,
non-diversified investment company. Massachusetts Mutual Life Insurance
Company ("MassMutual") acts as its investment adviser.
The Trust commenced operations in 1971 as a Delaware corporation. Pursuant
to an Agreement and Plan of Reorganization dated November 14, 1985,
approved by shareholders, the Trust was organized as a Massachusetts
business trust under the laws of the Commonwealth of Massachusetts,
effective November 28, 1985.
On January 27, 1998, the Board of Trustees authorized the formation of a
totally held subsidiary ("MMCI Subsidiary Trust") for the purpose of
holding certain investments. The results of MMCI Subsidiary Trust have been
consolidated in the accompanying financial statements.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed
consistently by the Trust in the preparation of the financial statements in
conformity with generally accepted accounting principles.
A. Valuation of Investments:
Valuation of a security in the Trust's portfolio is made on the basis of
market price whenever market quotations are readily available and all
securities of the same class held by the Trust can be readily sold in such
market.
Nearly all securities which are acquired by the Trust directly from the
issuers and shares into which such securities may be converted or which may
be purchased on the exercise of warrants attached to such securities will
be subject to legal or contractual delays in or restrictions on resale and
will therefore be "restricted securities". Generally speaking, as
contrasted with open-market sales of unrestricted securities which may be
effected immediately if the market is adequate, restricted securities can
be sold only in a directly negotiated transaction to a limited number of
purchasers or in a public offering for which a registration statement is in
effect under the Securities Act of 1933.
The value of restricted securities, and of any other assets for which there
are no reliable market quotations, is the fair value as determined in good
faith by the Board of Trustees of the Trust (the "Trustees"). Each
restricted security is valued by the Trustees at the time of the
acquisition thereof and at least quarterly thereafter. The Trustees have
established guidelines to aid in the valuation of each security. Generally,
restricted securities are initially valued at cost or less at the time of
acquisition by the Trust. Values greater or less than cost are used
thereafter for restricted securities in appropriate circumstances. Among
the factors ordinarily considered are the existence of restrictions upon
the sale of the security by the Trust; an estimate of the existence and
extent of a market for the security; the extent of any discount at which
the security was acquired; the estimated period of time during which the
security will not be freely marketable; the estimated expenses of
registering or otherwise qualifying the security for public sale; estimated
underwriting commissions if underwriting would be required to effect a
sale; in the case of a convertible security, whether or not it would trade
on the basis of its stock equivalent; in the case of a debt obligation
which would trade independently of any equity equivalent, the current
yields on comparable securities; the estimated amount of the floating
supply of such securities available; the proportion of the issue held by
the Trust; changes in the financial condition and prospects of the issuer;
the existence of merger proposals or tender offers affecting the issuer;
and any other factors affecting fair value, all in accordance with the
Investment Company Act of 1940. In making valuations, opinions of counsel
may be relied upon as to whether or not securities are restricted
securities and as to the legal requirements for public sale.
When market quotations are readily available for unrestricted securities of
an issuer, restricted securities of the same class are generally valued at
a discount from the market price of such unrestricted securities. The
Trustees, however, consider all factors in fixing any discount, including
the filing of a registration statement for such securities under the
Securities Act of 1933 and any other developments which are likely to
increase the probability that the securities may be publicly sold by the
Trust without restriction.
The Board of Trustees of the Trust meets at least once in each quarter to
value the Trust's portfolio securities as of the close of business on the
last business day of the preceding quarter. This valuation requires the
approval of a majority of the Trustees of the Trust, including a majority
of the Trustees who are not interested persons of the Trust (otherwise than
as Trustees) or of MassMutual. In making valuations, the Trustees will
consider reports by MassMutual analyzing each portfolio security in
accordance with the relevant factors referred to above. MassMutual has
agreed to provide such reports to the Trust at least quarterly.
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) MASSMUTUAL CORPORATE INVESTORS
The financial statements include restricted securities valued at
$171,777,779 (82.12% of net assets) as of June 30, 1999 ($176,835,540 at
June 30, 1998) whose values have been estimated by the Board of Trustees in
the absence of readily ascertainable market values. Due to the inherent
uncertainty of valuation, those estimated values may differ significantly
from the values that would have been used had a ready market for the
securities existed, and the differences could be material.
The values for corporate public securities are stated at the last reported
sales price or at prices based upon quotations obtained from brokers and
dealers as of June 30, 1999, subject to discount where appropriate, and are
approved by the Trustees.
Short-term securities with more than sixty days to maturity are valued at
fair value and short-term securities having a maturity of sixty days or
less are valued at amortized cost which approximates market value.
B. Accounting for Investments:
Investment transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date. Interest income is recorded on the
accrual basis.
The cost basis of debt securities is not adjusted for amortization of
premium since the Trust does not generally intend to hold such investments
until maturity; however, the Trust has elected to accrue, for financial
reporting purposes, certain discounts which are required to be accrued for
federal income tax purposes.
Realized gains and losses on investment transactions and unrealized
appreciation and depreciation of investments are reported for financial
statement and federal income tax purposes on the identified cost method.
The Trust does not accrue income when payment is delinquent and when
management believes payment is questionable.
C. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
D. Federal Income Taxes:
No provision for federal taxes on net investment income and short-term
capital gains is considered necessary because the Trust has elected to be
taxed as a "regulated investment company" under the Internal Revenue Code,
and intends to maintain this qualification and to distribute substantially
all of its net taxable income to its shareholders. In any year when net
long-term capital gains are realized by the Trust, management, after
evaluating the prevailing economic conditions, will recommend to the
Trustees either to designate the net realized long-term gains as
undistributed and to pay the federal capital gains taxes thereon or to
distribute all or a portion of such net gains.
3. Management Fee
Under the Investment Services Contract, MassMutual has agreed to invest for
its general account concurrently with the Trust in each restricted security
purchased by the Trust. MassMutual, in addition to originating and sharing
in the purchase of such securities, represents the Trust in any
negotiations with issuers, investment banking firms, securities brokers or
dealers and other institutions or investors relating to the Trust's
investments. MassMutual provides a continuing review of the investment
operations of the Trust. MassMutual also provides the Trust with office
space and office equipment, safekeeping facilities, accounting and
bookkeeping services, and necessary executive, clerical and secretarial
personnel for the performance of the foregoing services.
Under the investment services contract, as amended July 1, 1988, the Trust
pays MassMutual a quarterly base rate (the "Base Fee Rate") of 5/16 of 1%
of the value of the Trust's net assets as of the end of each fiscal
quarter, approximately equivalent to 1.25% of the net asset value of the
Trust on an annual basis, plus or minus a quarterly performance adjustment
(the "Performance Adjustment") of up to 1/16 of 1% approximately equivalent
to .25% on an annual basis.
The Performance Adjustment is based on the Trust's performance as compared
to a benchmark rate of return (the "Target Rate") equal to 5.0 percentage
points plus an unweighted, arithmetic average of the rates of return on the
Standard & Poor's Industrial Stock Price Index and the Lehman Brothers
Intermediate Corporate Bond Index over a rolling three-year period (the
"Measurement Period") comprising the twelve quarters ending on the last day
of each quarter (the "Valuation Date"). The
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) MASSMUTUAL CORPORATE INVESTORS
Performance Adjustment is equal to 5% of the difference between the Trust's
actual rate of return over the Measurement Period and the Target Rate. If
the Trust's actual rate of return exceeds the Target Rate, the Base Fee
Rate is increased by an amount equal to the Performance Adjustment; if the
Trust's actual rate of return is less than the Target Rate, the Base Fee
Rate is reduced by the Performance Adjustment. The advisory fee payable by
the Trust is equal to the Base Fee Rate (as adjusted by the Performance
Adjustment) times the net asset value of the Trust as of the Valuation
Date. The Performance Adjustments for the quarters ended March 31 and June
30, 1999 were:
Performance
Adjustment Amount
---------- ------
March 31, 1999 (0.0625%) (125,580)
June 30, 1999 (0.0625%) (130,740)
Total (0.1250%) (256,320)
4. Note Payable
On November 5, 1993, the Trust sold to MassMutual at par a $20,000,000
Senior Fixed Rate Convertible Note due November 15, 2000 (the "Note") which
accrues at 5.33% per annum. The Note holder, at its option, can convert the
principal amount of the Note into common shares. The dollar amount of
principal would be converted into an equivalent dollar amount of common
shares based upon the average price of the common shares for ten business
days prior to the notice of conversion.
5. Purchases and Sales of Investments
<TABLE>
<CAPTION>
For the For the
six months six months
ended 6/30/99 ended 6/30/98
<S> <C> <C>
Cost of Investments Acquired
Corporate restricted securities $ 48,390,159 $ 47,714,586
Corporate public securities 21,188,494 18,663,688
Short-term securities 270,229,976 190,298,352
Proceeds from Sales or Maturities
Corporate restricted securities $ 38,194,975 $ 37,554,813
Corporate public securities 27,925,414 35,710,065
Short-term securities 276,894,116 188,710,607
</TABLE>
The aggregate cost of investments was the same for financial reporting and
federal income tax purposes as of June 30, 1999. The net unrealized depreciation
of investments for financial reporting and federal tax purposes as of June 30,
1999 is $4,106,130 and consists of $29,219,532 appreciation and $33,325,662
depreciation.
The aggregate cost of investments was the same for financial reporting and
federal income tax purposes as of June 30, 1998. The net unrealized appreciation
of investments for financial reporting and federal tax purposes as of June 30,
1998 was $10,377,088 and consisted of $24,363,047 appreciation and $13,985,959
depreciation.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
6. Quarterly Results of Investment Operations
Amount Per Share Amount Per Share
March 31, 1999 March 31, 1998
<S> <C> <C> <C> <C>
Investment income $4,710,746 $4,573,718
Net investment income 3,808,088 0.44 3,435,337 0.40
Net realized and unrealized
gain (loss) on investments (7,968,093) (0.93) 14,075,440 1.65
June 30, 1999 June 30, 1998
Investment income 4,762,468 4,410,653
Net investment income 3,856,236 0.45 3,260,991 0.38
Net realized and unrealized
gain (loss) on investments 7,903,688 0.92 4,030,073 0.26
</TABLE>
7. Semi-Annual Report Disclosure
The Annual Meeting of Shareholders was held on Friday, April 23, 1999. The
Shareholders were asked to vote (1) to re-elect Marshall D. Butler as a
Trustee for a one-year term and to re-elect Jack A. Laughery and Corine T.
Norgaard as Trustees for three-year terms; (2) to ratify the selection of
PricewaterhouseCoopers LLP as auditors for the fiscal year ending December
31, 1999; and (3) to approve the continuance of the Trust's current
Investment Services Contract with Massachusetts Mutual Life Insurance
Company. The Shareholders approved all of the proposals. The results of the
Shareholder votes are set forth below. The results of the votes were as
follows:
<TABLE>
<CAPTION>
1. Election of Trustees:
SHARES: % of SHARES
TRUSTEE: FOR AGAINST TOTAL VOTED FOR
<S> <C> <C> <C> <C>
M. BUTLER 6,955,374.685 59,509.006 7,014,883.691 99.15%
J. LAUGHERY 6,958,311.636 56,572.055 7,014,883.691 99.19%
C. NORGAARD 6,957,351.636 57,532.055 7,014,883.691 99.18%
The Directors whose term of office continued after the meeting are Richard G. Dooley, Donald E. Benson, Milton Cooper,
Donald Glickman and Martin T. Hart.
2. Ratification of the selection of PricewaterhouseCoopers LLP as Auditors for
the fiscal year ending December 31, 1999.
SHARES: % OF SHARES
FOR AGAINST ABSTAINED TOTAL VOTED FOR
6,927,069.320 27,517.250 60,297.121 7,014,883.691 98.75%
3. Approval of continuance of the Trust's Investment Services Contract with
Massachusetts Mutual Life Insurance Company.
SHARES: % OF SHARES
FOR AGAINST ABSTAINED TOTAL VOTED FOR
6,904,477.003 30,625.918 79,780.770 7,014,883.691 98.43%
</TABLE>
