<PAGE>
MassMutual
CORPORATE
INVESTORS
[LOGO]
REPORT for the SIX
MONTHS ENDED 6/30/00
<PAGE>
MassMutual Corporate Investors
1295 State Street
Springfield, Massachusetts 01111
(413) 744-8480
[LOGO]
[LOGO]
Adviser
David L. Babson & Company,
Incorporated
Auditor
Deloitte & Touche, LLP
New York, New York 10281
Custodian
The Chase Manhattan Bank, N.A.
Transfer Agent & Registrar
Shareholder Financial Services, Inc.
P.O. Box 173673
Denver, Colorado 80217-3673
1-800-647-7374
Internet website: www.massmutual.com/mci
Investment Objective and Policy
MassMutual Corporate Investors, a closed-end investment company, was offered to
the public in September 1971 and its shares are listed on the New York Stock
Exchange. The share price of Corporate Investors can be found in the financial
section of most newspapers as "MassCp" or "MassMuInv" under the New York Stock
Exchange listings. The trading symbol is "MCI".
The Trust's investment objective is to maintain a portfolio of securities
providing a fixed yield and at the same time offering an opportunity for capital
gains. The principal investments are long-term corporate debt obligations and
occasionally preferred stocks purchased directly from issuers. These provide a
fixed yield and potential capital gains through warrants, conversion rights, or
other equity features which are a prerequisite to every private placement
purchased.
Corporate Investors' current portfolio is characterized by broad industrial
diversification. The entire portfolio is shown in the Schedule of Investments in
the Financial Section of this Report.
The Trust holds investments in a number of companies that are not publicly
traded at this time. Capital gains may be realized on holdings of private
companies through various methods, including directly negotiated sales, put
options and initial public offerings of stock.
The Trust pays quarterly dividends and intends to distribute substantially all
of its net income to shareholders each year. All distributions are paid in cash
unless the shareholder elects to participate in the Dividend Reinvestment and
Share Purchase Plan.
Dividends are distributed in January, May, August, and November.
<PAGE>
TO OUR SHAREHOLDERS
July 31, 2000
We are pleased to present the June 30, 2000 Quarterly Report of MassMutual
Corporate Investors. For the quarter ended June 30th, the Trust earned 49
cents per share, net of a performance fee, compared to 47 cents per share
earned in the previous quarter. We are also pleased to announce that we are
again increasing the dividend. The quarterly dividend was increased to 47
cents per share from the 45 cents per share paid in the previous quarter. The
dividend was payable on August 14, 2000 to shareholders of record on July 31,
2000.
During this past quarter, net assets increased to $211,394,097 or $24.62 per
share compared to $204,578,005 or $23.82 per share on March 31, 2000. This
increase translated into a 5.32% return for the three-month period ended June
30, 2000, based on change in net asset value with reinvestment of dividends.
For comparative purposes for the same period, in the equity markets, the S&P
Industrial Index returned -2.92% and the Russell 2000 returned -3.78%. The
bond markets, as measured by the Lehman Government/Corporate Intermediate
Index and the Merrill Lynch High Yield Index, returned 1.45% and 0.63%,
respectively.
As demonstrated by these returns, the Trust performed well this quarter.
According to Lipper Inc., for the quarter ended June 30th, the Trust ranked #2
out of 392 closed-end bond funds, trailing only MassMutual Participation
Investors, a closed-end bond fund also managed by David L. Babson.
The chart below shows the annualized long-term
performance of the Trust, based on change in net
asset value with reinvestment of dividends, for the
period ended June 30, 2000.
<TABLE>
<CAPTION>
6 months* 1 Year 5 Years 10 Years 25 Years
--------- ------ ------- -------- --------
<S> <C> <C> <C> <C>
14.04% 18.17% 18.89% 17.23% 15.63%
</TABLE>
*Periods less than a year are not annualized
The Trust closed on approximately $9.8 million of new and add-on private
placement securities during the quarter. Among the new securities were
Integration Technology Systems, Keepsake Quilting, Therma-Tru and TVI, Inc.
The weighted average coupon of the fixed income components of these
investments is 12.53%. (A brief description of these investments can be found
in the Schedule of Investments.)
During the second quarter we took the opportunity to realize approximately $11
million in losses which were previously carried on our books as unrealized
losses and therefore were already reflected in the Trust's net asset value.
Despite these losses, the Trust was able to take other gains, which reduced
the net realized losses to $5.2 million for the quarter. This brought our net
realized gains for the six months ended June 30, 2000 to $17.1 million ($1.99
per share). Of the gains realized in the past six months, $1.15 per share
represents short-term gains which, if not offset, must be distributed to
shareholders.
As existing shareholders may know, the Trust has in the past employed a modest
amount of leverage through an existing $20 million note agreement with
MassMutual. The existing note will mature in November 2000 and will be
extended for an additional 7 years.
We believe that the current market offers an attractive time to purchase
mezzanine structured investments. As a result, we have also entered into a
$25,000,000 Revolving Credit Agreement with Fleet National Bank. The
Investment Company Act of 1940 allows registered companies to borrow, provided
that immediately after any such borrowing there is an asset coverage of at
least 300 percent for all borrowings (33 1/3% leverage). Pro-forma, the total
leverage of the Trust would be approximately 17%. The leverage gives
MassMutual Corporate Investors the flexibility to pursue additional
investments as conditions warrant.
Thank you for your continued interest in and support of MassMutual Corporate
Investors.
Sincerely,
[/s/Robert E. Joyal]
Robert E. Joyal
President
1
<PAGE>
CONSOLIDATED STATEMENT OF
ASSETS AND LIABILITIES
June 30, 2000 and 1999
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
2000 1999
------------ ------------
<S> <C> <C>
Assets:
Investments (Notes 2A, 2B and 5)
(See Schedule of Investments)
Corporate restricted securities at fair value
(Cost 2000 - $203,050,169; 1999 - $173,241,167) $192,661,176 $171,777,779
Corporate public securities at market value
(Cost 2000 - $30,107,063; 1999 - $54,789,028) 26,158,824 52,146,286
Short-term securities at cost plus earned
discount which approximates market value 8,000,497 1,770,000
------------ ------------
226,820,497 225,694,065
Cash 1,996,776 201,311
Interest and dividends receivable, net 4,626,146 4,560,375
Receivable for investments sold 1,619,579 235,903
Other assets 8,085 8,085
------------ ------------
Total assets $235,071,083 $230,699,739
============ ============
Liabilities:
Payable for investments purchased $ 746,365 $ 728,368
Management fee payable (Note 3) 795,615 524,273
Note payable (Note 4) 20,000,000 20,000,000
Interest payable (Note 4) 136,211 136,211
Accrued expenses 93,526 95,287
Accounts payable 1,905,269 30,785
------------ ------------
Total liabilities 23,676,986 21,514,924
------------ ------------
Net Assets:
Common shares, par value $1.00 per share; an
unlimited number authorized 8,587,495 8,587,495
Additional paid-in capital 96,064,219 96,064,219
Retained net realized gain on investments, prior
years 98,556,100 84,272,696
Undistributed net investment income (Note 2D) 5,434,721 4,913,568
Undistributed net realized gain on investments
(Note 2D) 17,088,794 19,452,967
Net unrealized depreciation of investments (Note
2A, 2B and 5) (14,337,232) (4,106,130)
------------ ------------
Total net assets 211,394,097 209,184,815
------------ ------------
Total liabilities and net assets $235,071,083 $230,699,739
============ ============
Common shares issued and outstanding 8,587,495 8,587,495
============ ============
Net asset value per share $ 24.62 $ 24.36
============ ============
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
2
<PAGE>
CONSOLIDATED STATEMENT OF OPERATIONS
For the six months ended June 30, 2000 and 1999
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
2000 1999
------------ ------------
<S> <C> <C>
Investment Income (Note 2B):
Interest $ 10,070,230 $ 9,181,237
Dividends 253,946 291,977
------------ ------------
Total income 10,324,176 9,473,214
------------ ------------
Expenses:
Management fee (Note 3) 1,308,340 1,027,852
Trustees' fees and expenses 73,186 69,773
Transfer Agent/Registrar's expenses 47,250 54,000
Interest (Note 4) 533,000 533,000
Reports to shareholders 24,000 24,000
Audit and legal 27,333 27,504
Other 35,200 72,761
------------ ------------
Total expenses 2,048,309 1,808,890
------------ ------------
Net investment income (2000 - $.96 per share;
1999 - $.89 per share) 8,275,867 7,664,324
------------ ------------
Net realized and unrealized gain (loss) on invest-
ments (Notes 2A and 2B):
Net realized gain on investments 17,088,794 19,199,638
Net change in unrealized appreciation/depreciation
of investments 933,049 (19,177,677)
------------ ------------
Net gain on investments 18,021,843 21,961
------------ ------------
Net increase in net assets resulting from
operations $ 26,297,710 $ 7,686,285
============ ============
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
3
<PAGE>
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended June 30, 2000 and 1999
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
2000 1999
------------ ------------
<S> <C> <C>
Net increase (decrease) in cash:
Cash flows from operating activities:
Interest and dividends received $ 8,631,408 $ 8,487,299
Interest expense paid (533,000) (533,000)
Operating expenses paid 724,607 (1,270,114)
Federal income tax paid (7,499,999) (5,820,900)
------------ ------------
Net cash provided by operating activities 1,323,016 863,285
------------ ------------
Cash flows from investing activities:
Change in short-term portfolio securities, net 6,397,337 6,664,140
Purchase of portfolio securities (77,541,272) (68,850,812)
Proceeds from disposition of portfolio
securities 88,010,626 67,086,076
------------ ------------
Net cash provided by investing activities 16,866,691 4,899,404
------------ ------------
Net cash provided by operating and investing
activities 18,189,707 5,762,689
------------ ------------
Cash flows from financing activities:
Cash dividends paid from net investment income (7,785,994) (6,907,115)
Cash dividends paid from net realized gain on
investments (8,616,121) (2,710,879)
------------ ------------
Net cash used for financing activities (16,402,115) (9,617,994)
------------ ------------
Net increase (decrease) in cash 1,787,592 (3,855,305)
Cash - beginning of year 209,184 4,056,616
------------ ------------
Cash - end of period $ 1,996,776 $ 201,311
============ ============
Reconciliation of net increase in net assets to
net cash from
operating and investing activities:
Net increase in net assets resulting from
operations $ 26,297,710 $ 7,686,285
------------ ------------
(Increase) decrease in investments (1,226,029) 2,808,484
Increase in interest and dividends receivable,
net (958,173) (602,926)
(Increase) decrease in receivable for
investments sold (1,402,167) 965,687
Increase in other assets (8,085) (8,085)
Increase in payable for investments purchased 746,365 728,368
Increase in management fee payable 322,029 12,424
Increase (decrease) in accrued expenses 12,787 (37,433)
Increase in accounts payable 1,905,269 30,785
Decrease in accrued taxes (7,499,999) (5,820,900)
------------ ------------
Total adjustments to net assets from operations (8,108,003) (1,923,596)
------------ ------------
Net cash provided by operating and investing
activities $ 18,189,707 $ 5,762,689
============ ============
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
4
<PAGE>
CONSOLIDATED STATEMENT OF
CHANGES IN NET ASSETS
For the six months ended June 30, 2000 and 1999
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
2000 1999
------------ ------------
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income $ 8,275,867 $ 7,664,324
Net realized gain on investments 17,088,794 19,199,638
Net change in unrealized
appreciation/depreciation of investments 933,049 (19,177,677)
------------ ------------
Net increase in net assets resulting from opera-
tions 26,297,710 7,686,285
Dividends to shareholders from:
Net investment income (2000 - $.45 per share;
1999 - $.41 per share) (3,864,373) (3,520,873)
------------ ------------
Total increase 22,433,337 4,165,412
Net Assets, beginning of year 188,960,760 205,019,403
------------ ------------
Net Assets, end of period (including
undistributed net investment
income in 2000 - $5,434,721; 1999 - $4,913,568) $211,394,097 $209,184,815
============ ============
</TABLE>
See Notes to Financial Statements.
--------------------------------------------------------------------------------
5
<PAGE>
CONSOLIDATED SELECTED PER SHARE DATA
Selected data for each share of beneficial interest outstanding for the periods
ended:
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
For the
six months For the
ended 6/30/2000 year ended
(Unaudited) 12/31/99
--------------- ------------
<S> <C> <C>
Net asset value:
Beginning of year $ 22.00 $ 23.87
------------ ------------
Net investment income 0.96 1.80
Net realized and unrealized gain on investments 2.11 (0.94)
------------ ------------
Total from investment operations 3.07 0.86
------------ ------------
Dividends from net investment income to common
shareholders (0.45) (1.73)
Distributions from net realized gain on
investments to common shareholders -- (1.00)
------------ ------------
Total distributions (0.45) (2.73)
------------ ------------
Net asset value:
End of period $ 24.62 $ 22.00
============ ============
Per share market value:
End of period $ 20.50 $ 21.38
============ ============
Total investment return:
Market value (1.78)%* 7.35%
Net asset value 14.04%* 7.53%
Net assets (in millions):
End of period $ 211.39 $ 188.96
Ratio of operating expenses to average net
assets 0.76%* 1.30%
Ratio of interest expenses to average net
assets 0.27%* 0.52%
Ratio of expenses to average net assets 1.03%* 1.82%
Ratio of net investment income to average net
assets 4.16%* 7.63%
Portfolio turnover 37.12%* 68.04%
</TABLE>
*Percentages represent results for the period and are not annualized.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
6
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Principal Acquisition Acquisition Cost at 6/30/00
Corporate Restricted Amount Date Date (Note 2B) (Note 2A)
Securities - 91.14%: (A) ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Private Placement Investments - 84.24%
A T I Acquisition Corporation
A manufacturer of
disposable nonwoven
protection products.
Senior Floating Rate
Revolving Credit Note
due 2003 $ 922,726 12/16/98 $ 922,726 $ 922,726 $ 917,191
10% Senior Secured Note
due 2006 $ 2,068,183 12/16/98 2,068,183 2,068,183 1,959,397
12% Subordinated Note
due 2008 $ 1,590,910 12/16/98 1,495,455 1,495,455 1,449,637
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
------------ ------------ ------------
4,899,998 4,900,001 4,583,044
------------ ------------ ------------
AccTech, LLC
A designer and marketer
of specialized cleaning
products.
Membership Interests
(B) 4.65% int. 10/31/96 264,080 124,136 --
------------ ------------ ------------
Adorn, Inc.
A manufacturer of wall
panels, cabinets,
moldings and countertops
for houses and
recreational vehicles.
12.5% Subordinated Note
due 2010 $ 2,125,000 2/29/00 1,817,240 1,821,770 2,018,325
Warrant, exercisable
until 2010, to purchase
common stock at $.02
per share (B) 364 shs. 2/29/00 3,078 307,759 4
------------ ------------ ------------
1,820,318 2,129,529 2,018,329
------------ ------------ ------------
Adventure Entertainment
Corporation
An owner and operator of
themed family
entertainment centers.
19% Senior Subordinated
Note due 2004 $ 204,470 12/9/99 203,837 204,470 195,290
7% Redeemable Series B
Preferred Stock 2,006 shs. 10/31/97 195,536 1,981,317 1,727,120
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
------------ ------------ ------------
399,437 2,210,792 1,922,474
------------ ------------ ------------
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 2,773,752 3,104,190
Common Stock (B) 1,060 shs. 4/30/99 953,955 1,059,950 628,704
Warrant, exercisable
until 2007, to purchase
common stock at $.01
per share (B) 576 shs. 4/30/99 6 445,410 341,878
------------ ------------ ------------
4,116,372 4,279,112 4,074,772
------------ ------------ ------------
</TABLE>
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7
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
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 $ 3,042,649 $ 3,479,350
Warrant, exercisable
until 2007, to purchase
common stock at $.01
per share (B) 58 shs. 11/2/98 513,333 513,333 431,343
------------ ------------ ------------
3,499,998 3,555,982 3,910,693
------------ ------------ ------------
Averstar, Inc.
A provider of software
systems, services and
products to a variety of
information and
technology users.
Class A Common Stock
(B) 13,453 shs. 8/31/95 15,799 18,384 174,046
Class B Common Stock
(B) 37,200 shs. 8/31/95 43,689 50,837 481,275
Class G Common Stock
(B) 96,846 shs. 8/31/95 113,733 104,000 1,252,941
------------ ------------ ------------
173,221 173,221 1,908,262
------------ ------------ ------------
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 2005 $ 581,596 12/23/97 581,596 581,596 290,798
Senior Secured Tranche
A Floating Rate Note
due 2004 $ 2,294,000 * 2,273,813 2,294,000 1,147,000
17.75% Senior Secured
Tranche B Note due 2005 $ 706,139 12/23/97 734,385 706,139 353,070
Limited Partnership
Interests of CM Equity
Partners (B) 6.27% int. 12/22/97 6,489 783,881 7,868
Warrant, exercisable
until 2005, to purchase
common stock at $.81
per share (B) 214,419 shs. 12/23/97 2,144 -- 2,144
------------ ------------ ------------
3,598,427 4,365,616 1,800,880
------------ ------------ ------------
Better Minerals &
Aggregates
A producer of high grade
industrial and specialty
silica sands.
14% Redeemable
Preferred Stock 732 shs. 9/30/99 531,467 531,733 580,448
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
Common Stock (B) 20,027 shs. 9/30/99 719,161 799,068 719,161
Warrants, exercisable
until 2005 and 2010, to
purchase Series A and B
preferred stock and
common stock at $.01
per unit (B) 11,399 shs. ** 12,963 128,502 20,826
------------ ------------ ------------
2,138,616 2,626,003 2,428,795
------------ ------------ ------------
</TABLE>
*12/23/97 and 1/31/99.
**12/19/96 and 9/30/99.
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8
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<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 $ 652,244 8/29/96 $ 652,244 $ 652,244 $ 130,449
Senior Secured Series A
Floating Rate Term Note
due 2002 $ 2,183,497 8/29/96 2,160,133 2,183,497 436,699
12% Series B Term Note
due 2004 $ 533,000 8/29/96 524,738 515,880 106,600
Membership Interests
(B) 5.63% int. 8/29/96 212,800 125,750 --
Warrant, exercisable
until 2004, to purchase
membership interests at
$.01 per interest (B) 36 int. 8/29/96 2 26,650 --
------------ ------------ ------------
3,549,917 3,504,021 673,748
------------ ------------ ------------
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 $ 583,783 9/29/95 583,783 583,783 556,112
10% Senior Secured Term
Note due 2004 $ 1,081,080 9/29/95 1,081,080 1,081,080 1,037,512
11.5% Senior
Subordinated Note due
2004 $ 945,945 9/29/95 895,706 919,334 891,175
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 87,167
Warrant, exercisable
until 2006, to purchase
partnership points at
$.01 per point (B) 39 pts. 9/29/95 50,261 50,261 --
------------ ------------ ------------
2,718,938 2,742,566 2,571,966
------------ ------------ ------------
CapeSuccess LLC
A provider of
diversified staffing
services.
Preferred Membership
Interests 1,882 int. 3/31/98 8,395 8,395 7,556
Common Membership
Interests 24,318 int. 3/31/98 108,486 108,486 97,640
------------ ------------ ------------
116,881 116,881 105,196
------------ ------------ ------------
Capitol Specialty
Plastics, Inc.
A producer of dessicant
stripes used for
packaging
pharmaceuticals
products.
Common Stock (B) 109 shs. * 438 503 403
------------ ------------ ------------
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 -- 278
------------ ------------ ------------
Chaparral Resources,
Inc. - O.T.C.
An international oil and
gas exploration and
production company.
Common Stock (B) 164 shs. 12/3/97 107 6,395 959
------------ ------------ ------------
</TABLE>
*12/30/97 and 5/29/99
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9
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
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 $ 411,979
10.75% Senior Secured
Term Note due 2003 $ 813,918 12/8/95 822,342 813,918 778,919
12% Senior Subordinated
Note due 2005 $ 800,575 12/8/95 803,858 769,874 699,702
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
------------ ------------ ------------
2,181,264 2,234,465 2,030,404
------------ ------------ ------------
Corvest Group, Inc.
A manufacturer and
distributor of
promotional products.
12% Senior Subordinated
Note due 2007 $ 3,863,636 * 3,737,681 3,593,051 3,683,204
Common Stock (B) 56 shs. * 86,923 96,591 11,643
Limited Partnership
Interest 19.13% int. * 217,330 289,773 217,330
Warrant, exercisable
until 2007, to purchase
common stock at $.01
per share (B) 183 shs. * 2 297,203 38,043
------------ ------------ ------------
4,041,936 4,276,618 3,950,220
------------ ------------ ------------
D&K Healthcare
Resources, Inc. -
O.T.C.
A wholesale
pharmaceutical
distribution company.
Common Stock (B) 245,989 shs. 12/29/87 810,732 810,732 2,439,133
------------ ------------ ------------
Directed Electronics,
Inc.
A designer and
distributor of brand
name automotive security
systems, audio products,
and installation
accessories.
12% Senior Subordinated
Note due 2007 $ 3,355,267 12/22/99 3,315,004 2,957,983 3,264,004
8% Convertible Class B
Subordinated Promissory
Note due 2008 $ 74,562 12/22/99 70,707 74,562 69,566
Class B common stock
(B) 26,097 shs. 12/22/99 234,869 260,965 234,869
Limited Partnership
Interests 8.61% int. 12/22/99 469,737 521,930 469,737
Warrant, exercisable
until 2007, to purchase
common stock at $.01
per share (B) 45,255 shs. 12/22/99 453 413,816 453
------------ ------------ ------------
4,090,770 4,229,256 4,038,629
------------ ------------ ------------
</TABLE>
*3/5/99 and 3/24/99.
--------------------------------------------------------------------------------
10
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
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 $ 2,624,336
Membership Interests of
MM/Lincap Diversco
Investments Ltd., LLC
(B) 734,090 int. 8/27/98 587,272 734,090 587,272
Warrants, 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 3,211,644
------------ ------------ ------------
Eagle Pacific
Industries, Inc. -
O.T.C.
An extruder of small and
medium diameter plastic
pipe and tubing in the
United States.
14% Senior Subordinated
Note due 2007 $ 3,333,082 9/16/99 3,333,082 3,349,748 3,468,329
Warrant, exercisable
until 2007, to purchase
common stock at $.01
per share (B) 197,040 shs. 9/16/99 -- 1 3,212,442
------------ ------------ ------------
3,333,082 3,349,749 6,680,771
------------ ------------ ------------
Enzymatic Therapy, Inc.
A manufacturer and
distributor of branded
natural medicines and
nutritional supplements.
12% Senior Note due
2009 $ 1,593,750 3/30/00 1,553,588 1,317,814 1,541,634
Limited Partnership
Interest 531,250 int. 3/30/00 478,125 531,250 478,125
Warrant, exercisable
until 2009, to purchase
common stock at $.01
per share (B) 478 shs. 3/30/00 5 255,000 5
------------ ------------ ------------
2,031,718 2,104,064 2,019,764
------------ ------------ ------------
Evans Consoles, Inc.
A designer and
manufacturer of consoles
and control center
systems.
Senior Secured Tranche
A Floating Rate Note
due 2005 $ 1,257,700 3/2/98 1,248,141 1,257,700 1,235,313
8.85% Senior Secured
Tranche A Note due 2005 $ 1,257,700 3/2/98 1,171,422 1,257,700 1,150,041
11.75% Senior Secured
Tranche B Note due 2006 $ 700,000 3/2/98 743,750 609,132 686,980
Common Stock (B) 26,906 shs. 2/11/98 75,600 94,880 75,905
Limited Partnership
Interests of CM Equity
Partners (B) 126,445 int. 2/11/98 1,012 126,445 101,156
Warrant, exercisable
until 2006, to purchase
common stock at $.01
per share (B) 34,783 shs. 3/2/98 348 112,000 348
------------ ------------ ------------
3,240,273 3,457,857 3,249,743
------------ ------------ ------------
</TABLE>
*10/24/96 and 8/28/98.
--------------------------------------------------------------------------------
11
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<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 $ 1,951,027 $ 1,984,957
Limited Partnership 2,140,363
Interest (B) int. 3/1/99 1,926,327 2,140,363 1,926,327
Warrant, exercisable
until 2007, to purchase
common stock at $.01
per share (B) 77,233 shs. 3/16/99 77,233 175,803 77,233
------------ ------------ ------------
4,031,132 4,267,193 3,988,517
------------ ------------ ------------
Fasteners for Retail,
Inc.
A designer and marketer
of low-cost fasteners
for point of purchase
displays and signage in
retail environments.
12.5% Senior
Subordinated Note due
2007 $ 3,650,000 12/22/99 3,670,075 3,205,155 3,612,040
Class B Common Stock
(B) 600 shs. 12/22/99 480,000 600,000 480,000
Warrant, exercisable
until 2007, to purchase
common stock at $.02
per share (B) 589 shs. 12/22/99 6 462,927 6
------------ ------------ ------------
4,150,081 4,268,082 4,092,046
------------ ------------ ------------
Fleming Acquisition
Corporation
A supplier of high-
quality, premium printed
labels for distiller
spirits, wine, food and
household products.
Common Stock (B) 545 shs. 4/28/95 1,231,111 272,500 46,393
Warrant, exercisable
until 2005, to purchase
common stock at $.01
per share (B) 380 shs. 4/28/95 98,235 170,455 32,323
Incentive Warrant,
exercisable until 2005,
to purchase common
stock at $.01 per share
(B) 19 shs. 4/28/95 3,339 2,273 1,633
------------ ------------ ------------
1,332,685 445,228 80,349
------------ ------------ ------------
G C-Sun Holdings, LP
A value-added national
distributor of
maintenance, repair and
operating supplies such
as fasteners, electrical
components and tools.
12% Senior Subordinated
Note due 2008 $ 1,725,000 3/2/00 1,685,498 1,385,042 1,671,698
Warrant, exercisable
until 2008, to purchase
common stock at $.01
per share (B) 880 shs. 3/2/00 9 347,288 9
------------ ------------ ------------
1,685,507 1,732,330 1,671,707
------------ ------------ ------------
</TABLE>
--------------------------------------------------------------------------------
12
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquistion Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Golden Bear Oil
Specialties
A manufacturer of
asphalt and specialty
lubricating and
processing oils.
17% Senior Subordinated
Note due 2005 $ 3,434,795 7/18/97 $ 3,467,769 $ 3,381,713 $ 3,572,187
18% Bridge Preferred
Stock 289 shs. 5/30/00 285,366 288,540 286,376
12% Preferred Stock 393 shs. 7/18/97 39,786 311,111 213,391
Common Stock (B) 27,073 shs. 7/18/97 112,896 77,840 271
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
------------ ------------ ------------
3,906,221 4,129,203 4,072,629
------------ ------------ ------------
Grand Lyon Enterprises
LLC
A manufacturer and
marketer of Grand Lyon
Bordeaux Ketchup.
Limited Liability
Interests (B) 4.99% int. 5/15/98 220,347 220,347 --
------------ ------------ ------------
Hamilton Funeral
Services
The largest privately
held owner and operator
of funeral homes in the
United States.
15% Senior Subordinated
Note due 2007 $ 3,050,347 1/25/99 2,931,078 3,001,899 2,666,003
Warrant, exercisable
until 2007, to purchase
common stock at $1 per
share (B) 338,280 shs. 1/25/99 3,383 48,447 3,383
------------ ------------ ------------
2,934,461 3,050,346 2,669,386
------------ ------------ ------------
Hanover Compressor
Company
A provider of natural
gas handling equipment
and services.
Common Stock (B) 114,479 shs. 6/5/00 3,244,764 3,244,764 3,915,182
------------ ------------ ------------
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 2,383,988 2,545,410
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 3,500,582 3,149,491
------------ ------------ ------------
</TABLE>
*4/18/97 and 10/7/98.
--------------------------------------------------------------------------------
13
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Hudson River Capital,
LLC
An acquirer of
controlling or
substantial interests in
manufacturing and
marketing entities.
Series A Preferred
Units (B) 100,000 uts. 7/21/94 $ 887,304 $ 533,868 $ 950,000
------------ ------------ ------------
Hussey Seating Company
A manufacturer of
spectator seating
products.
Senior Secured Floating
Rate Revolving Note due
2003 $ 1,728,000 6/12/96 1,711,066 1,728,000 1,676,852
Senior Secured Floating
Rate Note due 2003 $ 1,575,000 * 1,559,407 1,575,000 1,522,867
10% Senior Secured Note
due 2003 $ 412,501 6/12/96 401,611 412,501 394,805
12% Subordinated
Secured Note due 2006 $ 1,350,000 6/12/96 1,327,320 1,195,739 1,218,240
Warrant, exercisable
until 2006, to purchase
common stock at $.01
per share (B) 4,189 shs. 6/12/96 42 225,000 42
------------ ------------ ------------
4,999,446 5,136,240 4,812,806
------------ ------------ ------------
Immedient Corporation
A provider of
diversified staffing
services.
Common Stock (B) 6,855 shs. 3/31/98 -- 37,702 33,932
------------ ------------ ------------
Integration Technology
Systems, Inc.
A manufacturer of steel
protective computer and
network systems for the
industrial and office
environments.
Senior Secured Floating
Rate Revolving Note due
2007 $ 100,707 6/1/00 145,822 100,707 99,730
11% Senior Secured Note
due 2007 $ 2,215,548 6/1/00 2,138,890 2,215,548 2,157,722
Common Stock (B) 228 shs. 6/1/00 209,760 262,200 209,760
------------ ------------ ------------
2,494,472 2,578,455 2,467,212
------------ ------------ ------------
Jackson Products, Inc.
A manufacturer and
distributer 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
------------ ------------ ------------
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 3,167,238 3,202,346
Warrant, exercisable
until 2004, to purchase
common stock at $.01
per share (B) 57,418 shs. 12/2/96 57,418 333,300 24,288
------------ ------------ ------------
3,441,413 3,500,538 3,226,634
------------ ------------ ------------
</TABLE>
*6/12/96 and 6/11/99.
--------------------------------------------------------------------------------
14
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Keepsake Quilting, Inc.
A seller of quilting
fabrics, books,
patterns, kits and
notions to consumers.
Senior Secured Floating
Rate Revolving Note due
2005 $ 73,386 6/16/00 $ 72,358 $ 73,386 $ 72,366
Senior Secured Floating
Rate Tranche A Note due
2007 $ 1,284,247 6/16/00 1,267,552 1,284,247 1,267,680
12% Senior Secured
Tranche B Note due 2008 $ 550,392 6/16/00 534,651 504,652 530,688
Limited Partnership
Interests of Riverside
X Holding Company L.P.
(B) 5.90% int. 6/12/00 381,128 412,888 371,599
Warrant, exercisable
until 2008, to purchase
common stock at $.01
per share (B) 1,108 shs. 6/12/00 11 45,866 11
------------ ------------ ------------
2,255,700 2,321,039 2,242,344
------------ ------------ ------------
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 3,298,607 3,355,916
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 4,306,737 3,681,806
------------ ------------ ------------
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 1,548,477
------------ ------------ ------------
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 2,145,962 1,916,730
Limited Partnership
Interests of MDT
Holdings LLC (B) 3.90% int. 4/9/99 989,550 1,099,500 824,625
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 3,848,719 2,748,013
------------ ------------ ------------
</TABLE>
*12/23/96 and 1/28/99.
--------------------------------------------------------------------------------
15
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<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. 6/28/95 192,115 230,769 328,846
Warrant, exercisable
until 2005, to purchase
common stock at $.01
per share (B) 39,563 shs. 6/28/95 98,581 171,429 168,776
------------ ------------ ------------
752,232 863,734 959,158
------------ ------------ ------------
Merit Industries, Inc.
A designer and
manufacturer of coin-
operated video and dart
games.
12% Senior Subordinated
Note due 2006 $ 2,667,270 8/19/98 2,617,393 2,511,749 1,333,635
Limited Partnership
Interests of Riverside
X Holding Company L.P.
(B) 7.51% int. * 1,393,163 1,547,961 386,990
Warrant, exercisable
until 2006, to purchase
limited partnership
interests at $.01 per
share (B) 1,855 int. 8/19/98 19 185,411 19
------------ ------------ ------------
4,010,575 4,245,121 1,720,644
------------ ------------ ------------
Nexell Therapeutics
A provider of cell
therapy technology to
the medical community.
3% Cumulative
Convertible Preferred
Stock Series B, due
2008, convertible into
common stock at $11 per
share 3,875 shs. 11/24/99 378,556 3,875,000 4,716,049
Warrant, exercisable
until 2008, to purchase
common stock at $12 per
share (B) 46,131 shs. 11/24/99 1,845 -- 119,368
------------ ------------ ------------
380,401 3,875,000 4,835,417
------------ ------------ ------------
NPC, Inc.
A manufacturer of
flexible connectors and
equipment used in the
installation of sewers
and storm drain
pipelines.
Senior Secured Floating
Rate Revolving Note due
2006 $ 142,373 6/25/99 142,373 142,373 141,250
Senior Secured Floating
Rate Note due 2006 $ 3,221,186 6/25/99 3,221,186 3,221,186 3,198,960
12% Senior Secured
Tranche B Note due 2007 $ 978,814 6/25/99 836,440 846,598 932,516
Limited Partnership
Interests of Riverside
XIII Holding Company
L.P. 4.45% int. 6/11/99 339,692 339,692 271,754
Warrant, exercisable
until 2007, to purchase
common stock at $.01
per share (B) 201 shs. 6/25/99 142,373 142,373 2
------------ ------------ ------------
4,682,064 4,692,222 4,544,482
------------ ------------ ------------
</TABLE>
*8/12/98 and 8/11/99.
--------------------------------------------------------------------------------
16
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<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 $ 2,480,505 $ 2,638,629
12% Senior Subordinated
Note due 2008 $ 307,071 2/9/00 300,131 269,340 300,070
Limited Partnership
Interest of Riverside
VIII Holding Company
L.P. (B) 10.58% int. * 1,005,153 1,005,133 904,619
Warrant, exercisable
until 2007, to purchase
common stock at $.01
per share (B) 28,648 shs. ** 286 389,188 123,503
------------ ------------ ------------
4,070,138 4,144,166 3,966,821
------------ ------------ ------------
PAR Acquisition Corp.
A manufacturer of fuel
handling systems for
nuclear power plants and
hazardous waste.
8% Convertible
Preferred Stock due
2001,
convertible into common
stock at $2 per share 83,333 shs. 2/5/93 166,667 166,667 270,000
Common Stock (B) 133,333 shs. 2/5/93 333,333 333,333 432,000
------------ ------------ ------------
500,000 500,000 702,000
------------ ------------ ------------
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 $ 587,411 11/30/95 612,141 587,411 590,407
10.5% Senior Secured
Convertible Note due
2005, convertible into
common stock at $50,000
per share $ 195,000 11/30/95 205,335 195,000 207,090
Common Stock 6 shs. 11/30/95 227,812 337,500 223,670
------------ ------------ ------------
1,045,288 1,119,911 1,021,167
------------ ------------ ------------
Polymer Technologies,
Inc./Poli-Twine Western,
Inc.
A leading manufacturer
of polypropylene twine
for the hay bailing
marketplace.
11% Senior Subordinated
Note due 2010 $ 1,806,250 3/1/00 1,752,604 1,705,820 1,740,502
10% Junior Subordinated
Note due 2010 $ 239,062 3/1/00 205,594 239,062 204,040
Common Stock (B) 159,375 shs. 3/1/00 71,719 79,688 71,719
Warrant, exercisable
until 2010, to purchase
common stock at $.01
per share (B) 159,375 shs. 3/1/00 1,594 103,541 1,594
------------ ------------ ------------
2,031,511 2,128,111 2,017,855
------------ ------------ ------------
</TABLE>
*8/7/98 and 2/23/99.
**8/7/98 and 2/28/00.
--------------------------------------------------------------------------------
17
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Precision Dynamics, Inc.
A manufacturer of
custom-designed solenoid
valves and controls.
Senior Secured Floating
Rate Revolving Credit
Facility due 2003 $ 619,400 7/22/96 $ 613,268 $ 619,400 $ 593,199
Senior Secured Floating
Rate Term Note due 2003 $ 2,379,800 7/22/96 2,356,478 2,379,800 2,297,220
12% Senior Secured Term
Note due 2004 $ 489,000 7/22/96 482,545 426,729 461,567
8% Preferred Stock 313 shs. 7/22/96 297,216 231,903 179,000
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
------------ ------------ ------------
3,771,209 3,784,610 3,552,845
------------ ------------ ------------
Process Chemicals, LLC
A speciality chemical
company that
manufactures process
chemicals for the
fertilizer, asphalt and
concrete industries.
6% Redeemable Preferred
Membership Interests 2,525 int. * 248,410 2,615,375 2,469,959
Common Membership
Interests 9,863 int. * 24,855 13,049 237,114
------------ ------------ ------------
273,265 2,628,424 2,707,073
------------ ------------ ------------
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 $ 520,000 8/12/94 513,136 520,000 312,000
9.8% Redeemable
Exchangeable Preferred
Stock 1,004 shs. 8/12/94 85,087 100,350 20,070
Common Stock (B) 1,492 shs. 8/12/94 15 -- 112
------------ ------------ ------------
598,238 620,350 332,182
------------ ------------ ------------
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 -- 372,724
------------ ------------ ------------
Safety Speed Cut
Manufacturing
A manufacturer of
vertical panel saws and
routers for the wood
working industry.
Senior Secured Floating
Rate Tranche A Note due
2007 $ 3,203,514 6/2/99 3,203,514 3,203,514 3,185,895
12% Senior Secured
Tranche B Note Due 2007 $ 1,130,652 6/2/99 1,130,652 1,130,652 1,066,883
Class B common stock
(B) 1,480 shs. 6/2/99 256,212 256,212 204,969
------------ ------------ ------------
4,590,378 4,590,378 4,457,747
------------ ------------ ------------
</TABLE>
*7/31/97 and 1/4/99.
--------------------------------------------------------------------------------
18
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Snyder Industries, Inc.
A manufacturer of
proprietary rotationally
molded polythylene
containers.
12.5% Senior
Subordinated Note due
2007 $ 3,125,000 12/6/99 $ 3,036,875 $ 2,714,744 $ 3,012,188
Warrant, exercisable
until 2007, to purchase
common stock at $.01
per share (B) 513 shs. 12/6/99 5 426,136 5
------------ ------------ ------------
3,036,880 3,140,880 3,012,193
------------ ------------ ------------
SpectaGuard Acquisition
LLC
The tenth largest
provider of security
officers in the United
States.
14% Senior Subordinated
Note due 2008 $ 2,000,000 3/1/00 1,957,800 1,964,020 1,943,400
14% Preferred Stock 109 shs. 3/1/00 92,395 108,854 91,404
Common stock (B) 100,179 shs. 3/1/00 11,875 14,844 11,871
Warrant, exercisable
until 2008, to purchase
common stock at $.01
per share (B) 257,000 shs. 3/1/00 2,570 35,980 2,570
------------ ------------ ------------
2,064,640 2,123,698 2,049,245
------------ ------------ ------------
Star International Inc.
A manufacturer of
commercial cooking
appliances.
11% Senior Secured Note
due 2004 $ 2,670,650 1/25/00 2,564,358 2,512,579 2,557,949
9.65% Senior Secured
Note due 2004 $ 938,508 5/27/94 938,508 938,508 885,951
10.5% Subordinated Note
due 2004 $ 716,418 5/27/94 651,654 716,418 639,761
Common Stock (B) 4,310 shs. 5/27/94 233,762 259,735 264,110
Warrant, exercisable
until 2004, to purchase
common stock at $.01
per share (B) 4,621 shs. 5/27/94 85,629 171,830 283,117
------------ ------------ ------------
4,473,911 4,599,070 4,630,888
------------ ------------ ------------
Strategic Equipment &
Supply Partners, Inc.
A provider of kitchen
and restaurant design,
equipment fabrication
and installation
services.
12% Senior Subordinated
Note due 2008 $ 3,875,000 1/14/00 3,807,188 3,236,871 3,780,450
Warrant, exercisable
until 2008, to purchase
common stock at $.01
per share (B) 30,290 shs. 1/14/00 303 658,750 303
------------ ------------ ------------
3,807,491 3,895,621 3,780,753
------------ ------------ ------------
Supreme Industries,
Inc. - A.S.E.
A manufacturer of
modular homes and truck
bodies.
Common Stock (B) 100,202 shs. * 229,193 267,351 426,109
Common Stock of TGC
Industries, Inc. (B) 6,361 shs. 9/30/86 3,166 9,497 5,665
------------ ------------ ------------
232,359 276,848 431,774
------------ ------------ ------------
</TABLE>
*5/23/79, 12/15/95 and 6/9/96.
--------------------------------------------------------------------------------
19
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<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
2007 $ 2,712,000 2/5/98 $ 2,762,172 $ 2,397,472 $ 2,692,745
Common Stock (B) 630 shs. 2/5/98 567,000 630,000 567,000
Warrant, exercisable
until 2006, to purchase
shares of Class B
common stock at $.01
per share (B) 444 shs. 2/5/98 4 368,832 114,242
------------ ------------ ------------
3,329,176 3,396,304 3,373,987
------------ ------------ ------------
Therma-Tru Corporation
A manufacturer of
residential exterior
entry door systems.
12% Senior Subordinated
Note due 2009 $ 1,236,000 5/9/00 1,169,256 950,248 1,197,684
Limited Partnership
Interest of KT Holding
Company L.P. (B) .52% int. 5/5/00 695,430 772,700 695,430
Warrant, exercisable
until 2009, to purchase
common stock at $.01
per share (B) 739 shs. 5/9/00 7 287,370 7
------------ ------------ ------------
1,864,693 2,010,318 1,893,121
------------ ------------ ------------
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 1,120,000 802,388
Warrant, exercisable
until 2008, to purchase
common stock at $.01
per share (B) 474 shs. 7/25/96 43 48,216 339,406
------------ ------------ ------------
1,008,043 1,168,216 1,141,794
------------ ------------ ------------
TransMontaigne Oil
Company - A.S.E.
An independent petroleum
products marketing
company.
12.75% Senior
Subordinated Debenture
due 2000 $ 600,000 3/28/91 637,140 593,100 608,520
Common Stock (B) 258,720 shs. * 400,000 798,595 1,346,948
Warrant, exercisable
until 2001, to purchase
common stock at $3.60
per share (B) 74,606 shs. 3/28/91 7,461 42,000 160,127
------------ ------------ ------------
1,044,601 1,433,695 2,115,595
------------ ------------ ------------
</TABLE>
*3/28/91, 12/18/91, 9/30/92, 9/30/93, 9/30/94, 3/31/95 and 5/9/95.
--------------------------------------------------------------------------------
20
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Trend Technologies, Inc.
A manufacturer and
assembler of plastic
injection molded parts.
Limited Partnership
Interests of Riverside
V Holding Company L.P. 8.28% int. * $ 181,444 $ 200,874 $ 160,694
Limited Partnership
Interests of Riverside
V-A Holding Company
L.P. 8.28% int. * 524,465 548,386 411,306
------------ ------------ ------------
705,909 749,260 572,000
------------ ------------ ------------
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 3,000,000 600,000
Common Stock (B) 71,429 shs. 4/17/98 500,003 500,003 22,322
Warrant, exercisable
until 2005, to purchase
common stock at $2.03
per share (B) 218,182 shs. 5/26/98 -- 1 2,182
------------ ------------ ------------
530,003 3,500,004 624,504
------------ ------------ ------------
Tronair, Inc.
A designer, engineer and
manufacturer of ground
support equipment for
the business, commuter
and commercial aviation
markets.
Senior Secured
Revolving Credit
Facility due 2005 $ 217,925 1/20/00 217,925 217,925 217,925
10.5% Senior Secured
Term Note due 2008 $ 2,368,750 1/20/00 2,264,999 2,368,750 2,260,735
12% Senior Subordinated
Note due 2010 $ 1,326,500 1/20/00 1,269,991 1,230,169 1,267,869
Common Stock (B) 227,400 shs. 1/20/00 181,920 227,400 181,920
Warrant, exercisable
until 2010, to purchase
common stock at $.01
per share (B) 260,563 shs. 1/20/00 2,606 98,540 2,606
------------ ------------ ------------
3,937,441 4,142,784 3,931,055
------------ ------------ ------------
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 2,387,297 2,575,222
Limited Partnership
Interests (B) 10.04% int. 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 3,588,829 3,317,375
------------ ------------ ------------
TVI, Inc.
A retailer of used
clothing in the United
States, Canada and
Australia.
15.971% Senior
Subordinated Note due
2008 $ 1,859,377 5/2/00 1,179,580 1,771,657 1,803,595
Common Stock (B) 357,167 shs. 5/2/00 318,750 354,167 318,750
------------ ------------ ------------
1,498,330 2,125,824 2,122,345
------------ ------------ ------------
</TABLE>
*3/21/97, 10/16/97, 11/19/97 and 3/12/99.
--------------------------------------------------------------------------------
21
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
U.S. Netting, Inc.
A manufacturer of
plastic netting for a
wide variety of
industries.
Senior Secured
Revolving Credit
Facility due 2005 $ 251,505 5/3/95 $ 251,505 $ 251,505 $ 129,651
11% Senior Secured Note
due 2005 $ 1,071,223 5/3/95 1,184,559 1,071,223 663,194
12% Subordinated Note
due 2005 $ 652,050 5/3/95 733,622 629,173 421,485
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
------------ ------------ ------------
2,424,887 2,379,054 1,219,269
------------ ------------ ------------
Unidigital, Inc.
A provider within the
digital image and
digital media services
sector.
14% Senior Subordinated
Note due 2006 $ 4,289,431 9/14/99 4,074,959 4,076,931 4,094,261
Warrant, exercisable
until 2006, to purchase
limited partnership
interests at $5.425 per
unit (B) 146,654 shs. 9/14/99 212,546 212,500 1,467
------------ ------------ ------------
4,287,505 4,289,431 4,095,728
------------ ------------ ------------
Unipac Corporation
A manufacturer of
laminated materials
which are used to seal a
variety of packaging
containers.
Limited Partnership
Interests of Riverside
II Holding Company L.P.
(B) 50,968 uts. * 46,715 50,968 --
------------ ------------ ------------
USFlow Corporation
A distributor of
industrial pipes, valves
and fittings.
12.5% Senior
Subordinated Note due
2007 $ 3,463,000 12/14/99 3,490,704 3,018,431 3,420,405
Class B Common Stock
(B) 664 shs. 12/14/99 597,780 664,200 597,780
Warrant, exercisable
until 2007, to purchase
common stock at $.01
per share (B) 565 shs. 12/14/99 6 461,733 6
------------ ------------ ------------
4,088,490 4,144,364 4,018,191
------------ ------------ ------------
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 27,415 22,540
------------ ------------ ------------
</TABLE>
*2/9/96 and 9/25/96.
--------------------------------------------------------------------------------
22
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares,
Units,
Warrants, Fair Value
Ownership or at Fair Value
Corporate Restricted Principal Acquisition Acquisition Cost at 6/30/00
Securities (A) Amount Date Date (Note 2B) (Note 2A)
(Continued) ------------ ----------- ------------ ------------ ------------
<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 $ 975,975 1/2/98 $ 985,832 $ 975,975 $ 971,680
Senior Secured Floating
Rate Tranche A Note due
2005 $ 1,999,200 1/2/98 1,983,406 1,999,200 1,988,404
12% Senior Secured
Tranche B Note due 2007 $ 672,000 1/2/98 678,787 621,600 639,475
Senior Secured Floating
Rate Tranch C Note due
2006 $ 680,000 9/17/99 670,286 670,286 680,000
Limited Partnership
Interests of Riverside
VI Holding Company L.P. 5.85% int. * 280,973 351,216 280,973
Warrant, exercisable
until 2007, to purchase
common stock at $.01 per
share (B) 118 shs. 1/2/98 1 60,117 1
------------ ------------ ------------
4,599,285 4,678,394 4,560,533
------------ ------------ ------------
Total Private Placement
Investments $170,590,455 $187,209,448 $178,072,228
============ ------------ ------------
</TABLE>
*12/30/97 and 9/9/99.
--------------------------------------------------------------------------------
23
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares or Market Value
Corporate Restricted Interest Due Principal Cost at 6/30/00
Securities: (A) Rate Date Amount (Note 2B) (Note 2A)
(Continued) ------------ -------- ------------ ------------ ------------
Rule 144A Securities -
6.90%: (A)
<S> <C> <C> <C> <C> <C>
Bonds - 1.01%
360 Networks, Inc. 13.000% 05/01/08 $ 1,200,000 $ 1,171,462 $ 1,200,000
Climachem, Inc. 10.750 12/01/07 175,000 168,000 43,750
Cuddy International
Corp. 10.750 12/01/07 525,000 517,156 114,187
Flextronics
International 9.875 07/01/10 275,000 272,855 277,062
Tekni-Plex, Inc. 12.750 06/15/10 505,000 498,082 503,738
------------ ------------ ------------
Total Bonds $ 2,680,000 2,627,555 2,138,737
============ ------------ ------------
Convertible Bonds - 4.34%
Akami Technologies 5.250 07/01/07 $ 1,525,000 1,525,000 1,761,146
Commscope, Inc. 4.000 12/15/06 250,000 250,000 269,952
Conexant Systems, Inc. 4.000 02/01/07 1,120,000 1,089,592 853,821
Diamond Offshore
Drilling, Inc. (B) 0.000 06/06/20 1,250,000 624,500 586,525
Echostar Communications,
Inc. 4.875 01/01/07 400,000 400,000 378,740
Getty Images, Inc. 5.000 03/15/07 1,050,000 1,050,000 834,750
Hyperion Solutions Corp. 4.500 03/15/05 200,000 200,000 179,344
Rational Software Corp. 5.000 02/01/07 1,000,000 1,000,000 1,469,170
Semtech Corp. 4.500 02/01/07 825,000 824,807 863,132
Triquint Semiconductor,
Inc. 4.000 03/01/07 875,000 818,442 782,539
Viropharma, Inc. 6.000 03/01/07 215,000 147,282 80,625
Vitesse Semiconductor
Corp. 4.000 03/15/05 1,215,000 908,500 1,120,242
------------ ------------ ------------
Total Convertible Bonds $ 9,925,000 8,838,123 9,179,986
============ ------------ ------------
Convertible Preferred
Stock - 1.53%
Alliant Energy
Resources, Inc. 25,000 1,611,034 1,718,750
D T Industries, Inc. 40,000 2,000,000 1,000,000
Psinet, Inc. 15,000 750,000 504,375
------------ ------------
Total Convertible
Preferred Stock 4,361,034 3,223,125
------------ ------------
Common Stock - 0.00%
Jordan Telecom Products
(B) 70 14,000 2,100
------------ ------------
Total Common Stock 14,000 2,100
------------ ------------
Warrants - 0.02%
Winsloew Escrow
Corporation (B) 900 9 45,000
------------ ------------
Total Warrants 9 45,000
------------ ------------
Total Rule 144A
Securities 15,840,721 14,588,948
------------ ------------
Total Corporate
Restricted Securities 203,050,169 192,661,176
------------ ------------
</TABLE>
--------------------------------------------------------------------------------
24
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Shares or Market Value
Interest Due Principal Cost at 6/30/00
Corporate Public Rate Date Amount (Note 2B) (Note 2A)
Securities - 12.38%: (A) ------------ -------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Bonds - 4.90%
Allied Waste NA, Inc. 10.000% 08/01/09 $ 1,000,000 $ 790,000 $ 845,000
Cabot Safety
Corporation 12.500 07/15/05 1,000,000 1,000,000 1,000,000
Canadian Airlines
Corporation 10.000 05/01/05 455,000 456,000 474,338
Central Tractor 10.625 04/01/07 600,000 586,500 420,000
Derby Cycle Corporation 10.000 05/15/08 460,000 460,000 184,000
EV International, Inc. 11.000 03/15/07 1,000,000 600,000 680,000
GFSI, Inc. 9.625 03/01/07 145,000 120,401 105,850
Grove Worldwide 9.250 05/01/08 335,000 292,325 123,950
Haynes International,
Inc. 11.625 09/01/04 640,000 577,000 448,000
Kevco, Inc. 10.375 12/01/07 275,000 151,250 82,500
LLS Corporation 11.625 08/01/09 500,000 445,000 472,500
MCMS, Inc. 9.750 03/01/08 600,000 600,000 360,000
Morris Materials
Handling 9.500 04/01/08 300,000 300,000 39,000
MSX International, Inc. 11.375 01/15/08 500,000 490,250 472,500
Neff Corporation 10.250 06/01/08 230,000 227,687 142,600
Numatics, Inc. 9.625 04/01/08 820,000 790,175 656,000
Pillotex Corporation 10.000 11/15/06 100,000 103,000 35,000
Remington Products
Company 11.000 05/15/06 600,000 595,506 507,000
Sports Club Company 11.375 03/15/06 600,000 582,000 570,000
Trans World Airlines 11.500 12/15/04 500,000 494,110 367,500
United Refining Company 10.750 06/15/07 1,365,000 1,365,000 750,750
W R Carpenter North
America 10.625 06/15/07 625,000 631,917 125,000
Woods Equipment
Company, Inc. 12.000 07/15/09 800,000 800,000 672,000
Winsloew Escrow
Corporation 12.750 08/15/07 900,000 879,472 828,000
------------ ------------ ------------
Total Bonds $ 14,350,000 13,337,593 10,361,488
============ ------------ ------------
Common Stock - 4.11%
Accelerated Networks,
Inc. (B) 500 7,500 21,094
American Country
Holdings Inc. (B) 101,397 760,886 253,493
Associated Materials,
Inc. 43,240 497,673 648,600
Benson Petroleum, LTD.
(B) 200,000 154,408 229,480
BP Prudhoe Bay Royalty
Trust 26,180 336,064 312,524
Budget Group, Inc. (B) 95,456 1,996,621 393,750
Charles River Lab
Int'l, Inc. (B) 6,500 104,000 144,219
Computer Horizons Corp.
(B) 21,668 258,540 291,164
Dreamlife, Inc. (B) 73,125 813,719 265,078
Excalibur Technologies
Corp. (B) 29,200 1,008,033 1,166,175
Exfo Electro-Optical
Engineering (B) 1,400 36,400 61,425
Florist Transworld
Delivery, Inc. (B) 29,374 41,258 176,244
PepsiAmericas, Inc. (B) 332,296 2,006,380 996,888
Rent-Way, Inc. (B) 120,725 1,200,008 3,523,661
Swiss Army Brands, Inc.
(B) 39,000 393,825 199,875
------------ ------------
Total Common Stock 9,615,315 8,683,670
------------ ------------
</TABLE>
--------------------------------------------------------------------------------
25
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
<TABLE>
<CAPTION>
Market
Shares or Value
Corporate Public Interest Principal Cost at 6/30/00
Securities (A) Rate Due Date Amount (Note 2B) (Note 2A)
(Continued) ------------ -------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Convertible Bonds -
3.36%
Clear Channel
Communication, Inc. 1.500% 12/01/02 $ 500,000 500,000 489,025
Conexant Systems, Inc. 4.000 02/01/07 170,000 133,450 129,598
Cox Communications,
Inc. 0.426 04/19/20 2,400,000 1,030,291 1,251,648
Cymer, Inc. 3.500 08/06/04 575,000 569,500 663,665
Cypress Semiconductor
Corporation 3.750 07/01/05 885,000 858,000 847,865
Cypress Semiconductor
Corporation 4.000 02/01/05 210,000 210,000 240,563
Hyperion Solutions,
Inc. 4.500 03/15/05 50,000 35,500 44,836
Kellstorm Industries,
Inc. 5.500 06/15/03 975,000 833,150 414,853
LSI Logic Corporation 4.000 02/15/05 525,000 522,637 557,156
Networks Associates,
Inc. 0.000 02/13/18 2,950,000 1,026,990 1,032,294
Solectron, Inc. 0.000 05/08/20 1,695,000 981,608 1,067,850
Tower Automotive, Inc. 5.000 08/01/04 450,000 407,250 351,423
------------ ------------ ------------
Total Convertible Bonds $ 11,385,000 7,108,376 7,090,776
============ ------------ ------------
Warrants - 0.01%
American Country
Holdings, Inc. (B) 183,117 45,779 22,890
------------ ------------
Total Warrants 45,779 22,890
------------ ------------
Total Corporate Public
Securities 30,107,063 26,158,824
------------ ------------
<CAPTION>
<S> <C> <C> <C> <C> <C>
Commercial Paper - 3.78%
Countrywide Home Loans,
Inc. 7.051 07/03/00 $ 635,000 $ 634,755 $ 634,755
Enron Corporation 6.879 07/17/00 1,510,000 1,505,470 1,505,470
Maytag Corporation 7.358 07/05/00 2,000,000 1,998,389 1,998,389
Public Service Company
of Colorado 6.903 07/19/00 3,875,000 3,861,883 3,861,883
------------ ------------ ------------
Total Short-Term
Securities $ 8,020,000 8,000,497 8,000,497
============ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Market Value
Interest Due Principal Cost at 6/30/00
Rate/Yield Date Amount (Note 2B) (Note 2A)
Short-Term Securities: ------------ -------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total Investments - 107.30% $241,157,729 $226,820,497
============ ------------
Other Assets - 3.90 8,250,586
Liabilities - (11.20) (23,676,986)
--------- ------------
Total Net
Assets - 100.00% $211,394,097
========= ============
</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.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
26
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
INDUSTRY CLASSIFICATION
<TABLE>
<CAPTION>
Fair Value
At 6/30/00
(Note 2A)
Corporate Restricted Securities: ------------
<S> <C>
AUTOMOBILE - 3.59%
America's Body Co./LCP Holding Co. $ 3,910,693
LIH Investors, L.P. 3,681,806
------------
7,592,499
------------
BEVERAGE, FOOD & TOBACCO - 2.07%
Beta Brands, Inc. 1,800,880
Cains Foods, L.P. 2,571,966
Grand Lyon Enterprises --
------------
4,372,846
------------
BROADCASTING & ENTERTAINMENT - 0.18%
Echostar Communications, Inc. 378,740
------------
BUILDINGS & REAL ESTATE - 5.41%
Adorn, Inc. 2,018,329
Strategic Equipment & Supply Partners, Inc 3,780,753
Supreme Industries, Inc. 431,774
Therma-Tru Corporation 1,893,121
Truseal Technologies, Inc. 3,317,375
------------
11,441,352
------------
CARGO TRANSPORT - 0.54%
Tidewater Holdings, Inc. 1,141,794
------------
CHEMICAL, PLASTICS & RUBBER - 2.13%
AccTech, LLC --
Process Chemicals, LLC 2,707,073
Trend Technologies, Inc. 572,000
U.S. Netting, Inc. 1,219,269
------------
4,498,342
------------
CONSUMER PRODUCTS - 6.61%
Alpha Shirt Company 4,074,772
Consumer Product Enterprises, Inc. 2,030,404
Corvest Group, Inc. 3,950,220
G C-Sun Holdings, LP 1,671,707
Keepsake Quilting, Inc. 2,242,344
------------
13,969,447
------------
CONTAINERS, PACKAGING & GLASS - 4.18%
C & K Manufacturing and Sales Company 673,748
Capitol Specialty Plastics, Inc. 403
Fleming Acquisition Corporation 80,349
Snyder Industries, Inc. 3,012,193
Tekni-Plex, Inc. 503,738
Unipac Corporation --
Vitex Packaging, Inc. 4,560,533
------------
8,830,964
------------
</TABLE>
<TABLE>
<CAPTION>
Fair Value
At 6/30/00
(Note 2A)
Corporate Restricted Securities: (Continued) ------------
<S> <C>
DIVERSIFIED/CONGLOMERATE MANUFACTURING - 18.15%
Commscope, Inc. $ 269,952
D T Industries, Inc. 1,000,000
Eagle Pacific Industries, Inc. 6,680,771
Evans Consoles, Inc. 3,249,743
Hartzell Manufacturing, Inc./CMS Holding Company 3,149,491
Hudson River Capital, LLC 950,000
Hussey Seating Company 4,812,806
Jackson Products, Inc. 998,585
Kappler Safety Group, Inc. 3,226,634
Maxtec International Corp. 959,158
NPC, Inc. 4,544,482
PAR Acquisition Corp. 702,000
Safety Speed Cut Manufacturing 4,457,747
The Tranzonic Companies 3,373,987
------------
38,375,356
------------
DIVERSIFIED/CONGLOMERATE SERVICE - 7.42%
Diversco, Inc./DHI Holdings, Inc. 3,211,644
Examination Management Services, Inc. 3,988,517
Hamilton Funeral Services 2,669,386
Magnetic Data Technologies, Inc./ MDT Holdings LLC 2,748,013
Pharmaceutical Buyers, Inc. 1,021,167
SpectaGuard Acquisition LLC 2,049,245
------------
15,687,972
------------
ELECTRONICS - 11.06%
Akami Technologies 1,761,146
Averstar, Inc. 1,908,262
Conexant Systems, Inc. 853,821
Directed Electronics, Inc. 4,038,629
Flextronics International 277,062
Hyperion Solutions Corp. 179,344
Integration Technology Systems, Inc. 2,467,212
Precision Dynamics, Inc. 3,552,845
Psinet, Inc. 504,375
Rational Software Corp. 1,469,170
Semtech Corporation 863,132
Tridex Corp. 624,504
Triquint Semiconductor, Inc. 782,539
Unidigital, Inc. 4,095,728
------------
23,377,769
------------
</TABLE>
--------------------------------------------------------------------------------
27
<PAGE>
CONSOLIDATED SCHEDULE OF INVESTMENTS (CONT.)
June 30, 2000
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
INDUSTRY CLASSIFICATION (Continued)
<TABLE>
<CAPTION>
Fair Value
At 6/30/00
(Note 2A)
Corporate Restricted Securities: (Continued) ------------
<S> <C>
FARMING & AGRICULTURE - 1.17%
Cuddy International Corp. $ 114,187
Polymer Technologies, Inc./Poli-Twine Western, Inc. 2,017,855
Protein Genetics, Inc. 332,182
------------
2,464,224
------------
HEALTHCARE, EDUCATION & CHILDCARE - 4.43%
D&K Healthcare Resources, Inc. 2,439,133
Enzymatic Therapy, Inc. 2,019,764
Nexell Therapeutics 4,835,417
Viropharma, Inc. 80,625
------------
9,374,939
------------
HOME & OFFICE FURNISHINGS, HOUSEWARES, AND DURABLE CONSUMER
PRODUCTS - 4.13%
Fasteners for Retail, Inc. 4,092,046
Star International Holdings, Inc. 4,630,888
------------
8,722,934
------------
LEISURE, AMUSEMENT, ENTERTAINMENT - 3.60%
Adventure Entertainment Corporation 1,922,474
CDnow, Inc. 278
Merit Industries, Inc. 1,720,644
Olympic Boat Centers, Inc. 3,966,821
------------
7,610,217
------------
MINING, STEEL, IRON & NON PRECIOUS METALS - 1.15%
Better Minerals & Aggregates 2,428,795
------------
MISCELLANEOUS - 2.02%
CapeSuccess LLC 105,196
Climachem, Inc. 43,750
Immedient Corporation 33,932
USFlow Corporation 4,018,191
Victory Ventures, LLC 22,540
Winsloew Escrow Corporation 45,000
------------
4,268,609
------------
</TABLE>
<TABLE>
<CAPTION>
Fair Value
At 6/30/00
(Note 2A)
Corporate Restricted Securities: (Continued) ------------
<S> <C>
OIL AND GAS - 5.79%
Chaparral Resources, Inc. $ 959
Diamond Offshore Drilling, Inc. 586,525
Golden Bear Oil Specialties 4,072,629
Hanover Compressor Company 3,915,182
Louis Dreyfus Natural Gas Corporation 1,548,477
TransMontaigne Oil Company 2,115,595
------------
12,239,367
------------
PERSONAL TRANSPORTATION - 1.86%
Tronair, Inc. 3,931,055
------------
PRINTING & PUBLISHING - 0.39%
Getty Images, Inc. 834,750
------------
RETAIL STORES - 3.35%
A T I Acquisition Corporation 4,583,044
Rent-Way, Inc. 372,724
TVI, Inc. 2,122,345
------------
7,078,113
------------
TELECOMMUNICATIONS - 1.10%
360 Networks, Inc 1,200,000
Jordan Telecom Products 2,100
Vitesse Semiconductor Corp. 1,120,242
------------
2,322,342
------------
UTILITIES - 0.81%
Alliant Energy Resources, Inc. 1,718,750
------------
Total Corporate Restricted
Securities - 91.14% $192,661,176
------------
</TABLE>
--------------------------------------------------------------------------------
28
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
MASSMUTUAL CORPORATE INVESTORS
1.History
MassMutual Corporate Investors (the "Trust") is a closed-end, non-
diversified investment company. David L. Babson and Company Incorporated
("Babson") 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 Babson. In making valuations, the Trustees will consider
reports by Babson analyzing each portfolio security in accordance with the
relevant factors referred to above. Babson has agreed to provide such
reports to the Trust at least quarterly.
-------------------------------------------------------------------------------
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The financial statements include restricted securities valued at
$192,661,176 (91.14% of net assets) as of June 30, 2000 ($171,777,779 at
June 30, 1999) 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, 2000, 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 an investment services contract, Babson has agreed to invest for
MassMutual Life Insurance Company's general account concurrently with the
Trust in each restricted security purchased by the Trust. Babson, 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. Babson provides a continuing review of
the investment operations of the Trust. Babson 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 Babson 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 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
-------------------------------------------------------------------------------
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 Adjustment for the quarters ended March 31 and June 30, 2000
was:
<TABLE>
<CAPTION>
Performance
Adjustment Amount
----------- --------
<S> <C> <C>
March 31, 2000 (0.0625%) (128,204)
June 30, 2000 0.0625% 132,603
------- --------
Total 0.0000% 4,399
</TABLE>
4.Senior Secured Indebtedness
A.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. MassMutual has signed a commitment
to extend the Note for an additional seven years, at an interest rate of
7.39% per annum, subject to appropriate documentation to be completed by
November, 2000.
B.Revolving Credit Agreement
The Trust entered into a Revolving Credit Agreement with Fleet National Bank
as of June 29, 2000, in the principal amount of $25,000,000, maturing on May
31, 2005. The interest rate on the outstanding revolving loans is determined
for periods of one, three or six months (as selected by the Trust) and is
set at an annual rate equal to LIBOR plus .37% (London Interbank Offered
Rate). The Trust also agreed to pay an up-front fee equal to 0.10% on the
total commitment. The facility fee is 0.15% per annum of the total
commitment.
As of June 30, 2000, there were no outstanding loans against the Revolver.
5.Purchases and Sales of Investments
<TABLE>
<CAPTION>
For the For the
six months six months
ended 6/30/2000 ended 6/30/1999
--------------- ---------------
Cost of Investments Acquired
-------------------------------
<S> <C> <C>
Corporate restricted securities $ 58,387,854 $ 48,390,159
Corporate public securities 19,899,783 21,188,494
Short-term securities 315,506,911 270,229,976
<CAPTION>
Proceeds from Sales or
Maturities
-------------------------------
<S> <C> <C>
Corporate restricted securities $ 55,997,040 $ 38,194,975
Corporate public securities 32,415,884 27,925,414
Short-term securities 321,904,249 276,894,116
</TABLE>
The aggregate cost of investments was the same for financial reporting and
federal income tax purposes as of June 30, 2000. The net unrealized
depreciation of investments for financial reporting and federal tax purposes
as of June 30, 2000 is $14,337,232 and consists of $23,441,407 appreciation
and $37,778,639 depreciation.
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.
-------------------------------------------------------------------------------
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
6.Quarterly Results of Investment Operations
<TABLE>
<CAPTION>
Amount Per Share Amount Per Share
----------- --------- ----------- ---------
March 31, 2000 March 31, 1999
--------------------- ----------------------
<S> <C> <C> <C> <C>
Investment income $ 4,958,909 $ 4,710,746
Net investment income 4,063,971 $0.47 3,808,088 $ 0.44
Net realized and unrealized
gain (loss) on investments 11,553,274 1.35 (7,968,093) (0.93)
<CAPTION>
June 30, 2000 June 30, 1999
--------------------- ----------------------
<S> <C> <C> <C> <C>
Investment income 5,365,267 4,762,468
Net investment income 4,211,896 0.49 3,856,236 0.45
Net realized and unrealized
gain on investments 6,468,569 0.76 7,903,688 0.92
</TABLE>
--------------------------------------------------------------------------------
32
<PAGE>
Trustees
Donald E. Benson*
Milton Cooper
Richard G. Dooley
Donald Glickman
Martin T. Hart*
Jack A. Laughery
Corine T. Norgaard
Stuart H. Reese
[LOGO]
Officers
Stuart H. Reese, Chairman
Richard G. Dooley, Vice Chairman
Robert E. Joyal, President
Charles C. McCobb, Jr., Vice President &
Chief Financial
Officer
Stephen L. Kuhn, Vice President &
Secretary
Michael P. Hermsen, Vice President
Mary Wilson Kibbe, Vice President
Michael L. Klofas, Vice President
Richard C. Morrison, Vice President
Clifford M. Noreen, Vice President
Mark B. Ackerman, Treasurer
Victoria Fortier, Comptroller
*Member of the Audit Committee
Dividend Reinvestment and Share Purchase Plan
MassMutual Corporate Investors offers a Dividend Reinvestment and Share Purchase
Plan. The Plan provides a simple way for shareholders to add to their holdings
in the Trust through the receipt of dividend shares issued by the Trust or
through the reinvestment of cash dividends in Trust shares purchased in the open
market. A shareholder may join the Plan by filling out and mailing an
authorization card to Shareholder Financial Services, Inc., the Transfer Agent.
Participating shareholders will continue to participate until they notify the
Transfer Agent, in writing, of their desire to terminate participation. Unless a
shareholder elects to participate in the Plan, he or she will, in effect, have
elected to receive dividends and distributions in cash.
Participating shareholders may also make additional contributions to the Plan
from their own funds. Such contributions may be made by personal check or other
means in an amount not less than $10 nor more than $5,000 per quarter.
Whenever the Trust declares a dividend payable in cash or shares, the Transfer
Agent, acting on behalf of each participating shareholder, will take the
dividend in shares only if the net asset value is lower than the market price
plus an estimated brokerage commission as of the close of business on the
valuation day. The valuation day is the last day preceding the day of dividend
payment. When the dividend is to be taken in shares, the number of shares to be
received is determined by dividing the cash dividend by the net asset value as
of the close of business on the valuation date or, if greater than net asset
value, 95% of the closing share price. If the net asset value of the shares is
higher than the market value plus an estimated commission, the Transfer Agent,
consistent with obtaining the best price and execution, will buy shares on the
open market at current prices promptly after the dividend payment date.
The reinvestment of dividends does not, in any way, relieve participating
shareholders of any federal, state or local tax. For federal income tax
purposes, the amount reportable in respect of a dividend received in
newly-issued shares of the Trust will be the fair market value of the shares
received, which will be reportable as ordinary income and/or capital gains.
As compensation for its services, the Transfer Agent receives a fee of 5% of any
dividend and cash contribution (in no event in excess of $2.50 per distribution
per shareholder.)
Any questions regarding the Plan should be addressed to Shareholder Financial
Services, Inc., Agent for MassMutual Corporate Investors' Dividend Reinvestment
and Share Purchase Plan, P.O. Box 173673, Denver CO 80217-3673.
<PAGE>
[LOGO]
