UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-08985
LMP Corporate Loan Fund Inc.
(Exact name of registrant as specified in charter)
620 Eighth Avenue, 49th Floor, New York, N.Y. 10018
(Address of principal executive offices) (Zip code)
Robert I. Frenkel, Esq.
Legg Mason & Co., LLC
100 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrant’s telephone number, including area code: (888) 777-0102
Date of fiscal year end: September 30
Date of reporting period: December 31, 2013
| ITEM 1. | SCHEDULE OF INVESTMENTS |
LMP CORPORATE LOAN FUND INC.
FORM N-Q
DECEMBER 31, 2013
LMP CORPORATE LOAN FUND INC.
| Schedule of investments (unaudited) | December 31, 2013 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| SENIOR LOANS (a) - 130.8% | ||||||||||||||||
| Basic Industry - 11.0% |
||||||||||||||||
| Alpha Natural Resources LLC, Term Loan B |
3.500 | % | 5/22/20 | $ | 1,699,662 | $ | 1,673,955 | |||||||||
| Arch Coal Inc., Term Loan B |
6.250 | % | 5/16/18 | 267,478 | 264,335 | |||||||||||
| Atlas Iron Ltd., Term Loan B |
8.750 | % | 12/7/17 | 1,733,744 | 1,738,078 | |||||||||||
| Bowie Resource Holdings LLC, First Lien Term Loan |
6.750 | % | 8/14/20 | 1,185,000 | 1,193,887 | |||||||||||
| Bowie Resource Holdings LLC, Second Lien Delayed Draw Term Loan |
11.750 | % | 2/16/21 | 750,000 | 735,000 | |||||||||||
| Constellium Holdco B.V., USD Term Loan B |
6.000 | % | 3/25/20 | 952,800 | 981,384 | |||||||||||
| Eagle Spinco Inc., Term Loan |
3.500 | % | 1/27/17 | 138,047 | 138,852 | |||||||||||
| Essar Steel Algoma Inc., ABL Term Loan |
9.250 | % | 9/19/14 | 992,462 | 1,002,387 | |||||||||||
| Exopack LLC, New Term Loan B |
5.250 | % | 5/8/19 | 850,000 | 866,469 | |||||||||||
| Expera Specialty Solutions LLC, Term Loan B |
7.500 | % | 12/21/18 | 298,500 | 302,977 | |||||||||||
| Fairmount Minerals Ltd., Term Loan B2 |
5.000 | % | 9/5/19 | 299,250 | 304,051 | |||||||||||
| FMG Resources (August 2006) Pty Ltd., New Term Loan B |
4.250 | % | 6/28/19 | 1,444,513 | 1,466,481 | |||||||||||
| Foresight Energy LLC, Term Loan B |
5.500 | % | 8/19/20 | 500,000 | 506,250 | |||||||||||
| Murray Energy Corp., First Lien Term Loan |
5.250 | % | 11/21/19 | 930,000 | 940,075 | |||||||||||
| Oxbow Carbon LLC, Second Lien Term Loan |
8.000 | % | 1/17/20 | 320,000 | 326,600 | |||||||||||
| Peabody Energy Corp., Term Loan B |
4.250 | % | 9/24/20 | 698,250 | 704,298 | |||||||||||
| Walter Energy Inc., Term Loan B |
6.750 | % | 4/2/18 | 1,079,495 | 1,061,054 | |||||||||||
|
|
|
|||||||||||||||
| Total Basic Industry |
14,206,133 | |||||||||||||||
|
|
|
|||||||||||||||
| Capital Goods - 6.3% |
||||||||||||||||
| ABC Supply Co. Inc., Term Loan |
3.500 | % | 4/16/20 | 1,266,825 | 1,271,080 | |||||||||||
| ADS Waste Holdings Inc., New Term Loan B |
4.250 | % | 10/9/19 | 1,386,000 | 1,395,777 | |||||||||||
| Ardagh Packaging Finance PLC, USD Term Loan B |
4.250 | % | 12/5/19 | 240,001 | 241,801 | |||||||||||
| BakerCorp International Inc., New Term Loan |
4.250 | % | 2/14/20 | 885,524 | 883,680 | |||||||||||
| Clondalkin Acquisitions B.V., First Lien Term Loan B |
5.750 | % | 5/29/20 | 238,800 | 242,084 | |||||||||||
| Filtration Group Corp., First Lien Term Loan |
4.500 | % | 11/21/20 | 160,000 | 161,800 | |||||||||||
| Filtration Group Corp., Second Lien Term Loan |
8.250 | % | 11/21/21 | 100,000 | 102,250 | |||||||||||
| Waste Industries USA Inc., Term Loan B |
4.000 | % | 3/17/17 | 1,557,927 | 1,563,770 | |||||||||||
| Wilsonart International Holdings LLC, Term Loan B |
4.000 | % | 10/31/19 | 497,488 | 494,316 | |||||||||||
| WP CPP Holdings LLC, First Lien Term Loan |
4.750 | % | 12/27/19 | 975,194 | 983,727 | |||||||||||
| WP CPP Holdings LLC, New Second Lien Term Loan |
8.750 | % | 4/30/21 | 750,000 | 764,062 | |||||||||||
|
|
|
|||||||||||||||
| Total Capital Goods |
8,104,347 | |||||||||||||||
|
|
|
|||||||||||||||
| Communications - 12.3% |
||||||||||||||||
| Charter Communications Operating LLC, Term Loan E |
3.000 | % | 7/1/20 | 616,900 | 612,369 | |||||||||||
| Cricket Communications Inc., Term Loan C |
4.750 | % | 3/9/20 | 995,000 | 998,553 | |||||||||||
| Crown Castle International Corp., New Term Loan |
3.250 | % | 1/31/19 | 310,120 | 310,825 | |||||||||||
| CSC Holdings Inc., New Term Loan B |
2.669 | % | 4/17/20 | 746,250 | 740,053 | |||||||||||
| Cumulus Media Holdings Inc., 2013 Term Loan |
— | 12/12/20 | 150,000 | 151,312 | (b) | |||||||||||
| Getty Images Inc., Term Loan B |
4.750 | % | 10/18/19 | 987,513 | 923,736 | |||||||||||
| Intelsat Jackson Holdings SA, Term Loan B1 |
3.750 | % | 4/2/18 | 966,171 | 971,377 | |||||||||||
| Level 3 Financing Inc., 2020 Term Loan B |
4.000 | % | 1/15/20 | 310,000 | 312,635 | |||||||||||
| Level 3 Financing Inc., New 2019 Term Loan |
4.000 | % | 8/1/19 | 1,000,000 | 1,007,375 | |||||||||||
| McGraw-Hill Global Education Holdings LLC, Term Loan |
9.000 | % | 3/22/19 | 1,115,625 | 1,139,053 | |||||||||||
| NEP/NCP Holdco Inc., Term Loan |
4.750 | % | 1/22/20 | 999,900 | 1,006,024 | |||||||||||
| Nine Entertainment Group Ltd., Term Loan B |
3.250 | % | 2/5/20 | 744,375 | 743,445 | |||||||||||
| Syniverse Holdings Inc., Term Loan |
4.000 | % | 4/23/19 | 1,175,787 | 1,178,236 | |||||||||||
| Telesat LLC, USD Term Loan B2 |
3.500 | % | 3/28/19 | 1,337,991 | 1,345,239 | |||||||||||
See Notes to Schedule of Investments.
1
LMP CORPORATE LOAN FUND INC.
| Schedule of investments (unaudited) (cont’d) | December 31, 2013 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| Communications - continued |
||||||||||||||||
| TWCC Holding Corp., REFI Term Loan B |
3.500 | % | 2/13/17 | $ | 448,780 | $ | 451,350 | |||||||||
| Univision Communications Inc., Converted Extended Term Loan |
4.500 | % | 3/2/20 | 538,598 | 542,349 | |||||||||||
| Univision Communications Inc., Term Loan C3 |
4.000 | % | 3/2/20 | 1,945,300 | 1,955,200 | |||||||||||
| UPC Financing Partnership, USD Term Loan AH |
3.250 | % | 6/30/21 | 1,000,000 | 999,531 | |||||||||||
| Village Roadshow Films (BVI) Ltd., Term Loan B |
4.750 | % | 11/21/17 | 162,000 | 163,620 | |||||||||||
| Windstream Corp., Term Loan B4 |
3.500 | % | 1/23/20 | 297,000 | 297,927 | |||||||||||
|
|
|
|||||||||||||||
| Total Communications |
15,850,209 | |||||||||||||||
|
|
|
|||||||||||||||
| Consumer Cyclical - 25.2% |
||||||||||||||||
| Advantage Sales & Marketing Inc., New First Lien Term Loan |
4.250 | % | 12/18/17 | 941,229 | 945,641 | |||||||||||
| Autoparts Holdings Ltd., First Lien Term Loan |
6.500 | % | 7/28/17 | 192,897 | 191,771 | |||||||||||
| Autoparts Holdings Ltd., Second Lien Term Loan |
10.500 | % | 1/29/18 | 900,000 | 857,250 | |||||||||||
| Brickman Group Holdings Inc., First Lien Term Loan |
— | 12/5/20 | 230,000 | 231,150 | (b) | |||||||||||
| Caesars Entertainment Operating Co., Extended Term Loan B6 |
5.488 | % | 1/26/18 | 1,472,583 | 1,408,958 | |||||||||||
| Caesars Entertainment Resort Properties LLC, Term Loan B |
7.000 | % | 10/12/20 | 710,000 | 707,338 | |||||||||||
| Camping World Inc., Term Loan |
— | 2/20/20 | 1,070,000 | 1,078,025 | (b) | |||||||||||
| Cannery Casino Resorts LLC, New Second Lien Term Loan |
10.000 | % | 10/2/19 | 500,000 | 464,167 | |||||||||||
| Cannery Casino Resorts LLC, New Term Loan B |
6.000 | % | 10/2/18 | 242,999 | 242,118 | |||||||||||
| CCM Merger Inc., New Term Loan B |
5.000 | % | 3/1/17 | 458,215 | 463,370 | |||||||||||
| Chrysler Group LLC, New Term Loan B |
4.250 | % | 5/24/17 | 299,235 | 301,291 | |||||||||||
| CityCenter Holdings LLC, Term Loan B |
5.000 | % | 10/16/20 | 1,890,000 | 1,921,211 | |||||||||||
| CKX Inc., Term Loan B |
9.000 | % | 6/21/17 | 300,000 | 273,000 | |||||||||||
| Container Store Inc., New Term Loan B |
4.250 | % | 4/6/19 | 1,234,550 | 1,240,321 | |||||||||||
| Crossmark Holdings Inc., First Lien Term Loan |
4.500 | % | 12/20/19 | 514,800 | 512,548 | |||||||||||
| Dunkin Brands Inc., Term Loan B3 |
3.750 | % | 2/14/20 | 764,959 | 768,715 | |||||||||||
| Equinox Holdings Inc., Repriced Term Loan B |
4.500 - 5.500 | % | 1/31/20 | 1,786,500 | 1,802,132 | |||||||||||
| Four Seasons Holdings Inc., First Lien Term Loan |
4.250 | % | 6/27/20 | 269,325 | 270,672 | |||||||||||
| Gymboree Corp., Initial Term Loan |
5.000 | % | 2/23/18 | 2,000,000 | 1,874,500 | |||||||||||
| Hilton Worldwide Finance LLC, USD Term Loan B2 |
3.750 | % | 10/26/20 | 1,736,842 | 1,752,764 | |||||||||||
| J. Crew Group Inc., Term Loan B1 |
4.000 | % | 3/7/18 | 1,488,550 | 1,499,239 | |||||||||||
| Landry’s Inc., Term Loan B |
4.000 | % | 4/24/18 | 1,974,587 | 1,992,688 | |||||||||||
| MGM Resorts International, Term Loan B |
3.500 | % | 12/20/19 | 990,000 | 990,722 | |||||||||||
| Michaels Stores Inc., New Term Loan |
3.750 | % | 1/28/20 | 1,084,550 | 1,090,394 | |||||||||||
| Mohegan Tribal Gaming Authority, New Term Loan B |
5.500 | % | 11/19/19 | 700,000 | 712,250 | |||||||||||
| Monitronics International Inc., New Term Loan B |
4.250 | % | 3/23/18 | 989,984 | 999,678 | |||||||||||
| Neiman Marcus Group Inc., New Term Loan B |
5.000 | % | 10/26/20 | 870,000 | 882,196 | |||||||||||
| Oceania Cruises Inc., New Term Loan B |
6.750 | % | 7/2/20 | 1,167,075 | 1,179,475 | |||||||||||
| Peppermill Casinos Inc., Term Loan B |
7.250 | % | 10/17/19 | 990,000 | 1,009,387 | |||||||||||
| Petco Animal Supplies Inc., New Term Loan |
4.000 | % | 11/24/17 | 992,327 | 998,943 | |||||||||||
| Realogy Corp., Extended Term Loan |
4.500 | % | 3/5/20 | 992,500 | 1,004,131 | |||||||||||
| Regent Seven Seas Cruises Inc., REFI Term Loan B |
4.750 | % | 12/21/18 | 1,000,000 | 1,013,750 | |||||||||||
| Schaeffler AG, USD Term Loan C |
4.250 | % | 1/27/17 | 880,000 | 888,690 | |||||||||||
| Wendy’s International Inc., New Term Loan B |
3.250 | % | 5/15/19 | 835,251 | 837,265 | |||||||||||
|
|
|
|||||||||||||||
| Total Consumer Cyclical |
32,405,750 | |||||||||||||||
|
|
|
|||||||||||||||
| Consumer Non-Cyclical - 30.9% |
||||||||||||||||
| AdvancePierre Foods Inc., Second Lien Term Loan |
9.500 | % | 10/10/17 | 1,660,000 | 1,610,200 | |||||||||||
| Akorn Inc., Term Loan B |
— | 8/27/20 | 420,000 | 423,937 | (b) | |||||||||||
| Alvogen Pharma U.S. Inc., New Term Loan B |
7.000 | % | 5/23/18 | 1,226,388 | 1,244,784 | |||||||||||
| Anchor Hocking LLC, New Term Loan |
7.500 | % | 5/21/20 | 2,099,450 | 2,121,320 | |||||||||||
See Notes to Schedule of Investments.
2
LMP CORPORATE LOAN FUND INC.
| Schedule of investments (unaudited) (cont’d) | December 31, 2013 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| Consumer Non-Cyclical - continued |
||||||||||||||||
| Aramark Corp., USD Term Loan D |
4.000 | % | 9/9/19 | $ | 730,000 | $ | 734,404 | |||||||||
| ARC Document Solutions Inc., Term Loan B |
— | 12/19/18 | 340,000 | 339,150 | (b) | |||||||||||
| Ardent Medical Services Inc., Term Loan |
— | 7/2/18 | 1,000,000 | 1,005,417 | (b) | |||||||||||
| Biomet Inc., Term Loan B2 |
3.665 - 3.747 | % | 7/25/17 | 1,296,171 | 1,308,117 | |||||||||||
| BioScrip Inc., Delayed Draw Term Loan |
6.500 | % | 7/31/20 | 255,516 | 254,557 | |||||||||||
| BioScrip Inc., Term Loan B |
6.500 | % | 7/31/20 | 425,859 | 424,262 | |||||||||||
| Catalent Pharma Solutions Inc., Dollar Term Loan B1 |
3.669 | % | 9/15/16 | 672,941 | 677,007 | |||||||||||
| Catalent Pharma Solutions Inc., Dollar Term Loan B2 |
4.250 | % | 9/15/17 | 196,515 | 197,989 | |||||||||||
| CRC Health Corp., Extended Term Loan |
4.667 | % | 11/16/15 | 987,592 | 992,530 | |||||||||||
| CSM Bakery Supplies LLC, First Lien Term Loan |
4.750 | % | 7/3/20 | 1,027,425 | 1,032,242 | |||||||||||
| CSM Bakery Supplies LLC, Second Lien Term Loan |
8.500 | % | 7/3/21 | 330,000 | 333,712 | |||||||||||
| Del Monte Foods Co., Term Loan |
4.000 | % | 3/8/18 | 1,025,565 | 1,029,682 | |||||||||||
| Dole Food Co. Inc., New Term Loan B |
4.500 | % | 11/1/18 | 590,000 | 593,319 | |||||||||||
| DS Waters of America Inc., New Term Loan |
5.250 | % | 8/31/20 | 160,000 | 162,800 | |||||||||||
| Envision Healthcare Corp., Term Loan |
4.000 | % | 5/25/18 | 1,205,586 | 1,211,179 | |||||||||||
| FGI Operating Co. LLC, Term Loan |
5.500 | % | 4/19/19 | 992,456 | 1,003,621 | |||||||||||
| H.J. Heinz Co., Term Loan B1 |
3.250 | % | 6/7/19 | 427,850 | 430,844 | |||||||||||
| H.J. Heinz Co., Term Loan B2 |
3.500 | % | 6/5/20 | 498,747 | 503,194 | |||||||||||
| Healogics Inc., First Lien Term Loan |
5.250 | % | 2/5/19 | 148,875 | 150,178 | |||||||||||
| Healogics Inc., Second Lien Term Loan |
9.250 | % | 2/5/20 | 500,000 | 512,708 | |||||||||||
| Jarden Corp., Add-On Term Loan B1 |
2.919 | % | 9/30/20 | 229,425 | 229,449 | |||||||||||
| Language Line LLC, New Term Loan B |
6.250 | % | 6/20/16 | 1,229,328 | 1,227,023 | |||||||||||
| Merge Healthcare Inc., Term Loan B |
6.000 | % | 4/23/19 | 898,729 | 844,806 | |||||||||||
| Michael Foods Group Inc., Term Loan |
4.250 | % | 2/23/18 | 1,731,310 | 1,745,376 | |||||||||||
| New HB Acquisition LLC, Term Loan |
6.750 | % | 4/9/20 | 1,100,000 | 1,141,250 | |||||||||||
| Pacific Industrial Services U.S. Finco LLC, USD First Lien Term Loan |
5.000 | % | 10/2/18 | 458,850 | 466,450 | |||||||||||
| Par Pharmaceutical Cos. Inc., REFI Term Loan B |
4.250 | % | 9/30/19 | 626,834 | 631,222 | |||||||||||
| Party City Holdings Inc., REFI Term Loan B |
4.250 | % | 7/29/19 | 1,942,217 | 1,952,656 | |||||||||||
| Pharmaceutical Product Development LLC, New Term Loan B |
4.000 | % | 12/5/18 | 851,400 | 858,999 | |||||||||||
| Physiotherapy Associates Holdings Inc., Exit Term Loan |
— | 10/10/16 | 420,000 | 417,900 | (b) | |||||||||||
| Radnet Management Inc., Term Loan B |
4.250 - 5.500 | % | 10/10/18 | 833,672 | 830,024 | |||||||||||
| Regionalcare Hospital Partners Inc., REFI Term Loan |
6.000 | % | 11/4/18 | 1,687,271 | 1,657,744 | |||||||||||
| ServiceMaster Co., New Term Loan |
4.250 | % | 1/31/17 | 990,000 | 979,324 | |||||||||||
| Sun Products Corp., New Term Loan |
5.500 | % | 3/23/20 | 1,987,487 | 1,888,113 | |||||||||||
| Supervalu Inc., REFI Term Loan B |
5.000 | % | 3/21/19 | 1,930,480 | 1,952,599 | |||||||||||
| Universal Health Services Inc., Term Loan B |
2.417 | % | 11/15/16 | 635,937 | 639,515 | |||||||||||
| ValleyCrest Cos., LLC, New Term Loan |
5.500 | % | 6/13/19 | 1,970,100 | 1,974,411 | |||||||||||
| Visant Corp., Term Loan B |
5.250 | % | 12/22/16 | 999,587 | 988,654 | |||||||||||
| Wilsonart International Holdings LLC, Incremental Term Loan B2 |
4.000 | % | 10/31/19 | 120,000 | 119,363 | |||||||||||
| WNA Holdings Inc., USD Second Lien Term Loan |
8.500 | % | 12/7/20 | 1,000,000 | 1,016,250 | |||||||||||
|
|
|
|||||||||||||||
| Total Consumer Non-Cyclical |
39,858,281 | |||||||||||||||
|
|
|
|||||||||||||||
| Electric - 7.8% |
||||||||||||||||
| Astoria Generating Co. Acquisitions LLC, New Term Loan |
8.500 | % | 10/26/17 | 1,468,671 | 1,499,880 | |||||||||||
| EFS Cogen Holdings I Inc., Term Loan B |
5.000 | % | 12/1/20 | 290,000 | 292,175 | |||||||||||
| Equipower Resources Holdings LLC, Term Loan C |
4.250 | % | 12/31/19 | 1,956,002 | 1,966,598 | |||||||||||
| GIM Channelview Cogeneration LLC, Term Loan B |
4.250 | % | 5/8/20 | 338,300 | 341,471 | |||||||||||
| La Frontera Generation LLC, Term Loan |
4.500 | % | 9/30/20 | 298,922 | 302,565 | |||||||||||
| Moxie Liberty LLC, Term Loan B1 |
— | 8/20/20 | 310,000 | 316,975 | (b) | |||||||||||
See Notes to Schedule of Investments.
3
LMP CORPORATE LOAN FUND INC.
| Schedule of investments (unaudited) (cont’d) | December 31, 2013 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| Electric - continued |
||||||||||||||||
| Northeast Wind Capital II LLC, Term Loan B |
5.000 | % | 11/11/20 | $ | 1,751,194 | $ | 1,768,706 | |||||||||
| Panda Temple II Power LLC, New Term Loan B |
7.250 | % | 4/3/19 | 250,000 | 257,500 | |||||||||||
| Sapphire Power Finance LLC, New Term Loan |
6.000 | % | 7/10/18 | 308,450 | 310,571 | |||||||||||
| Star West Generation LLC, New Term Loan B |
4.250 | % | 3/13/20 | 1,061,975 | 1,073,258 | |||||||||||
| Topaz Power Holdings LLC, Term Loan |
5.250 | % | 2/26/20 | 1,486,241 | 1,483,454 | |||||||||||
| Windsor Financing LLC, Term Loan B |
6.250 | % | 12/5/17 | 436,223 | 449,310 | |||||||||||
|
|
|
|||||||||||||||
| Total Electric |
10,062,463 | |||||||||||||||
|
|
|
|||||||||||||||
| Energy - 8.3% |
||||||||||||||||
| Chesapeake Energy Corp., New Unsecured Term Loan |
5.750 | % | 12/1/17 | 2,000,000 | 2,045,000 | |||||||||||
| EP Energy LLC, Term Loan B3 |
3.500 | % | 5/24/18 | 1,000,000 | 1,001,518 | |||||||||||
| Frac Tech International LLC, Term Loan B |
8.500 | % | 5/6/16 | 1,349,999 | 1,359,281 | |||||||||||
| Pacific Drilling S.A., Term Loan B |
4.500 | % | 6/4/18 | 995,000 | 1,007,023 | |||||||||||
| Philadelphia Energy Solutions LLC, Term Loan B |
6.250 | % | 4/4/18 | 426,775 | 377,696 | |||||||||||
| Quicksilver Resources Inc., New Second Lien Term Loan |
7.000 | % | 6/21/19 | 600,000 | 595,500 | |||||||||||
| Rice Energy LLC, Second Lien Term Loan |
8.500 | % | 10/25/18 | 1,131,450 | 1,159,736 | |||||||||||
| Samson Investment Co., Second Lien Term Loan |
6.000 | % | 9/25/18 | 500,000 | 502,656 | |||||||||||
| Teine Energy Ltd., Second Lien Term Loan |
7.500 | % | 5/9/19 | 1,985,000 | 2,014,775 | |||||||||||
| Tesoro Corp., Term Loan B |
2.419 | % | 5/30/16 | 127,200 | 128,392 | |||||||||||
| TPF II LC LLC, Term Loan B |
6.500 | % | 8/16/19 | 507,450 | 507,450 | |||||||||||
|
|
|
|||||||||||||||
| Total Energy |
10,699,027 | |||||||||||||||
|
|
|
|||||||||||||||
| Financial Other - 3.7% |
||||||||||||||||
| Cunningham Lindsey U.S. Inc., First Lien Term Loan |
5.000 | % | 12/10/19 | 1,093,950 | 1,094,976 | |||||||||||
| Cunningham Lindsey U.S. Inc., Second Lien Term Loan |
9.250 | % | 6/10/20 | 779,545 | 777,272 | |||||||||||
| Flying Fortress Inc., New Term Loan |
3.500 | % | 6/30/17 | 900,000 | 902,812 | |||||||||||
| Wall Street Systems Inc., New Second Lien Term Loan |
9.250 | % | 10/26/20 | 2,000,000 | 2,021,200 | |||||||||||
|
|
|
|||||||||||||||
| Total Financial Other |
4,796,260 | |||||||||||||||
|
|
|
|||||||||||||||
| Industrial Other - 7.3% |
||||||||||||||||
| Allflex Holdings III Inc., New First Lien Term Loan |
4.250 | % | 7/17/20 | 887,775 | 893,047 | |||||||||||
| Allflex Holdings III Inc., New Second Lien Term Loan |
8.000 | % | 7/19/21 | 490,000 | 497,810 | |||||||||||
| Eastman Kodak Co., Exit Term Loan |
7.250 | % | 9/3/19 | 990,013 | 989,394 | |||||||||||
| Generac Power Systems Inc., Term Loan B |
3.500 | % | 5/31/20 | 1,496,250 | 1,501,394 | |||||||||||
| Intelligrated Inc., First Lien Term Loan |
4.500 | % | 7/30/18 | 785,549 | 788,985 | |||||||||||
| Laureate Education Inc., Term Loan B |
5.000 | % | 6/15/18 | 1,736,995 | 1,749,661 | |||||||||||
| Lineage Logistics Holdings LLC, Term Loan |
4.500 | % | 4/26/19 | 497,500 | 497,914 | |||||||||||
| Mirror Bidco Corp., USD Term Loan |
5.250 | % | 12/27/19 | 1,732,500 | 1,745,494 | |||||||||||
| Silver II U.S. Holdings LLC, Term Loan |
4.000 | % | 12/13/19 | 727,990 | 729,469 | |||||||||||
|
|
|
|||||||||||||||
| Total Industrial Other |
9,393,168 | |||||||||||||||
|
|
|
|||||||||||||||
| Insurance - 0.8% |
||||||||||||||||
| Multiplan Inc., New Term Loan B |
4.000 | % | 8/25/17 | 999,317 | 1,007,957 | |||||||||||
|
|
|
|||||||||||||||
| Natural Gas - 0.8% |
||||||||||||||||
| BBTS Borrower LP, Term Loan B |
7.750 | % | 5/31/19 | 992,500 | 1,001,805 | |||||||||||
|
|
|
|||||||||||||||
| Technology - 10.7% |
||||||||||||||||
| Activision Blizzard Inc., Term Loan B |
3.250 | % | 10/12/20 | 927,675 | 934,877 | |||||||||||
| BMC Software Finance Inc., USD Term Loan |
5.000 | % | 9/10/20 | 1,750,000 | 1,761,590 | |||||||||||
| CompuCom Systems Inc., REFI Term Loan B |
4.250 | % | 5/11/20 | 1,054,700 | 1,055,140 | |||||||||||
| Dell Inc., USD Term Loan B |
4.500 | % | 4/29/20 | 820,000 | 823,075 | |||||||||||
| Eastman Kodak Co., Exit Second Lien Term Loan |
0.000 | % | 7/31/20 | 1,000,000 | 1,007,500 | (b) | ||||||||||
See Notes to Schedule of Investments.
4
LMP CORPORATE LOAN FUND INC.
| Schedule of investments (unaudited) (cont’d) | December 31, 2013 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| Technology - continued |
||||||||||||||||
| Expert Global Solutions Inc., Term Loan B |
8.500 | % | 4/3/18 | $ | 869,481 | $ | 869,481 | |||||||||
| First Data Corp., 2018 Term Loan |
4.166 | % | 9/24/18 | 500,000 | 501,285 | |||||||||||
| First Data Corp., Extended 2018 Term Loan B |
4.164 | % | 3/23/18 | 1,250,000 | 1,253,048 | |||||||||||
| InfoGroup Inc., New Term Loan |
8.000 | % | 5/25/18 | 942,287 | 774,246 | |||||||||||
| Infor (U.S.) Inc., USD Term Loan B2 |
5.250 | % | 4/5/18 | 1,213,064 | 1,214,328 | |||||||||||
| Kronos Inc., REFI Term Loan |
4.500 | % | 10/30/19 | 1,353,535 | 1,366,506 | |||||||||||
| Kronos Inc., Second Lien Term Loan |
9.750 | % | 4/30/20 | 145,000 | 150,558 | |||||||||||
| Sophia LP, New Term Loan B |
4.500 | % | 7/19/18 | 301,918 | 304,057 | |||||||||||
| SunGard Data Systems Inc., Term Loan D |
4.500 | % | 1/31/20 | 990,000 | 998,039 | |||||||||||
| Vertafore Inc., Second Lien Term Loan |
9.750 | % | 10/27/17 | 800,000 | 815,800 | |||||||||||
|
|
|
|||||||||||||||
| Total Technology |
13,829,530 | |||||||||||||||
|
|
|
|||||||||||||||
| Transportation - 5.7% |
||||||||||||||||
| American Airlines Inc., Exit Term Loan |
3.750 | % | 6/27/19 | 1,880,550 | 1,899,356 | |||||||||||
| Commercial Barge Line Co., First Lien Term Loan |
7.500 | % | 9/23/19 | 923,025 | 916,102 | |||||||||||
| Commercial Barge Line Co., Second Lien Term Loan |
10.750 | % | 3/22/20 | 540,000 | 530,550 | |||||||||||
| Delta Air Lines Inc., New Term Loan B |
3.500 | % | 4/20/17 | 1,079,376 | 1,089,036 | |||||||||||
| Hertz Corp., Term Loan B2 |
3.000 | % | 3/11/18 | 1,071,900 | 1,073,048 | |||||||||||
| Syncreon Global Finance U.S. Inc., Term Loan B |
5.250 | % | 10/28/20 | 980,000 | 978,775 | |||||||||||
| U.S. Airways Group Inc., Term Loan B1 |
4.000 | % | 5/23/19 | 560,000 | 564,667 | |||||||||||
| United Airlines Inc., New Term Loan B |
4.000 | % | 4/1/19 | 308,450 | 311,339 | |||||||||||
|
|
|
|||||||||||||||
| Total Transportation |
7,362,873 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL SENIOR LOANS (Cost - $167,164,225) |
168,577,803 | |||||||||||||||
|
|
|
|||||||||||||||
| CORPORATE BONDS & NOTES - 7.4% | ||||||||||||||||
| CONSUMER DISCRETIONARY - 2.2% | ||||||||||||||||
| Hotels, Restaurants & Leisure - 0.2% |
||||||||||||||||
| Paris Las Vegas Holding LLC/Harrah’s Las Vegas LLC/Flamingo Las Vegas Holding LLC, Senior Secured Notes |
8.000 | % | 10/1/20 | 300,000 | 313,500 | (c) | ||||||||||
|
|
|
|||||||||||||||
| Media - 2.0% |
||||||||||||||||
| Carmike Cinemas Inc., Secured Notes |
7.375 | % | 5/15/19 | 500,000 | 547,500 | |||||||||||
| DISH DBS Corp., Senior Notes |
6.750 | % | 6/1/21 | 190,000 | 202,350 | |||||||||||
| Lynx I Corp., Senior Secured Notes |
5.375 | % | 4/15/21 | 670,000 | 673,350 | (c) | ||||||||||
| National CineMedia LLC, Senior Notes |
7.875 | % | 7/15/21 | 1,000,000 | 1,105,000 | |||||||||||
|
|
|
|||||||||||||||
| Total Media |
2,528,200 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL CONSUMER DISCRETIONARY |
2,841,700 | |||||||||||||||
|
|
|
|||||||||||||||
| ENERGY - 1.3% | ||||||||||||||||
| Energy Equipment & Services - 0.2% |
||||||||||||||||
| Atwood Oceanics Inc., Senior Notes |
6.500 | % | 2/1/20 | 220,000 | 235,950 | |||||||||||
|
|
|
|||||||||||||||
| Oil, Gas & Consumable Fuels - 1.1% |
||||||||||||||||
| Globe Luxembourg SCA, Senior Secured Notes |
9.625 | % | 5/1/18 | 490,000 | 510,139 | (c) | ||||||||||
| MarkWest Energy Partners LP/MarkWest Energy Finance Corp., Senior Notes |
4.500 | % | 7/15/23 | 100,000 | 94,250 | |||||||||||
| MEG Energy Corp., Senior Notes |
6.500 | % | 3/15/21 | 750,000 | 793,125 | (c) | ||||||||||
|
|
|
|||||||||||||||
| Total Oil, Gas & Consumable Fuels |
1,397,514 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL ENERGY |
1,633,464 | |||||||||||||||
|
|
|
|||||||||||||||
| FINANCIALS - 0.3% | ||||||||||||||||
| Real Estate Management & Development - 0.3% |
||||||||||||||||
| Howard Hughes Corp., Senior Notes |
6.875 | % | 10/1/21 | 350,000 | 365,750 | (c) | ||||||||||
|
|
|
|||||||||||||||
| INDUSTRIALS - 1.6% | ||||||||||||||||
| Airlines - 0.2% |
||||||||||||||||
| American Airlines, Pass-Through Trust, Senior Secured Notes |
5.600 | % | 7/15/20 | 200,000 | 202,000 | (c) | ||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
5
LMP CORPORATE LOAN FUND INC.
| Schedule of investments (unaudited) (cont’d) | December 31, 2013 |
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
| Machinery - 0.9% |
||||||||||||||||
| Briggs & Stratton Corp. |
6.875 | % | 12/15/20 | $ | 1,050,000 | $ | 1,158,937 | |||||||||
|
|
|
|||||||||||||||
| Transportation Infrastructure - 0.5% |
||||||||||||||||
| Aguila 3 SA, Senior Secured Notes |
7.875 | % | 1/31/18 | 640,000 | 681,600 | (c) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL INDUSTRIALS |
2,042,537 | |||||||||||||||
|
|
|
|||||||||||||||
| MATERIALS - 0.4% | ||||||||||||||||
| Chemicals - 0.2% |
||||||||||||||||
| Eagle Spinco Inc., Senior Notes |
4.625 | % | 2/15/21 | 150,000 | 147,563 | (c) | ||||||||||
| Omnova Solutions Inc., Senior Notes |
7.875 | % | 11/1/18 | 188,000 | 203,040 | |||||||||||
|
|
|
|||||||||||||||
| Total Chemicals |
350,603 | |||||||||||||||
|
|
|
|||||||||||||||
| Metals & Mining - 0.2% |
||||||||||||||||
| St. Barbara Ltd., Senior Secured Notes |
8.875 | % | 4/15/18 | 270,000 | 226,125 | (c) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL MATERIALS |
576,728 | |||||||||||||||
|
|
|
|||||||||||||||
| TELECOMMUNICATION SERVICES - 1.6% | ||||||||||||||||
| Diversified Telecommunication Services - 1.2% |
||||||||||||||||
| Intelsat Jackson Holdings SA, Senior Notes |
7.250 | % | 10/15/20 | 500,000 | 549,375 | |||||||||||
| Wind Acquisition Finance SA, Senior Secured Notes |
6.500 | % | 4/30/20 | 870,000 | 930,900 | (c) | ||||||||||
|
|
|
|||||||||||||||
| Total Diversified Telecommunication Services |
1,480,275 | |||||||||||||||
|
|
|
|||||||||||||||
| Wireless Telecommunication Services - 0.4% |
||||||||||||||||
| SoftBank Corp., Senior Notes |
4.500 | % | 4/15/20 | 550,000 | 539,000 | (c) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL TELECOMMUNICATION SERVICES |
2,019,275 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL CORPORATE BONDS & NOTES (Cost - $9,036,763) |
9,479,454 | |||||||||||||||
|
|
|
|||||||||||||||
| SHARES | ||||||||||||||||
| COMMON STOCKS - 1.4% | ||||||||||||||||
| CONSUMER DISCRETIONARY - 0.2% | ||||||||||||||||
| Automobiles - 0.2% |
||||||||||||||||
| Dayco Products LLC |
4,912 | 243,144 | *(d) | |||||||||||||
|
|
|
|||||||||||||||
| ENERGY - 1.2% | ||||||||||||||||
| Oil, Gas & Consumable Fuels - 1.2% |
||||||||||||||||
| SemGroup Corp., Class A Shares |
24,938 | 1,626,706 | ||||||||||||||
|
|
|
|||||||||||||||
| TOTAL COMMON STOCKS (Cost - $687,306) |
1,869,850 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $176,888,294) |
|
179,927,107 | ||||||||||||||
|
|
|
|||||||||||||||
| FACE AMOUNT |
||||||||||||||||
| SHORT-TERM INVESTMENTS - 11.2% | ||||||||||||||||
| Repurchase Agreements - 11.2% |
||||||||||||||||
| Barclays Capital Inc. repurchase agreement dated 12/31/13; Proceeds at maturity - $11,400,006; (Fully collateralized by U.S. Treasury Notes, 2.000% due 4/30/16; Market Value - $11,849,423) |
0.010 | % | 1/2/14 | $ | 11,400,000 | 11,400,000 | ||||||||||
| State Street Bank & Trust Co. repurchase agreement dated 12/31/13; Proceeds at maturity - $3,031,000; (Fully collateralized by U.S. government agency obligations, 2.000% due 1/30/23; Market value - $3,094,447) |
0.000 | % | 1/2/14 | 3,031,000 | 3,031,000 | |||||||||||
|
|
|
|||||||||||||||
| TOTAL SHORT-TERM INVESTMENTS (Cost - $14,431,000) |
14,431,000 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL INVESTMENTS - 150.8% (Cost - $191,319,294#) |
194,358,107 | |||||||||||||||
| Auction Rate Cumulative Preferred Stock, at Liquidation Value - (27.2)% |
|
(35,000,000 | ) | |||||||||||||
| Liabilities in Excess of Other Assets - (23.6)% |
(30,439,224 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| TOTAL NET ASSETS - 100.0% |
$ | 128,918,883 | ||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
6
LMP CORPORATE LOAN FUND INC.
| Schedule of investments (unaudited) (cont’d) | December 31, 2013 |
| * | Non-income producing security. |
| (a) | Interest rates disclosed represent the effective rates on collateralized and uncollateralized senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan. |
| (b) | All or a portion of this loan is unfunded as of December 31, 2013. The interest rate for fully unfunded term loans is to be determined. |
| (c) | Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted. |
| (d) | Security is valued in good faith in accordance with procedures approved by the Board of Directors (See Note 1). |
| # | Aggregate cost for federal income tax purposes is substantially the same. |
Abbreviations used in this schedule:
| REFI | — Refinancing | |
| Second Lien | — Subordinate Lien to First Lien | |
| Term | — Term loan typically with a First Lien on specified assets |
See Notes to Schedule of Investments.
7
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
LMP Corporate Loan Fund Inc. (the “Fund”) was incorporated in Maryland on and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s investment objective is to maximize current income consistent with prudent efforts to preserve capital.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).
(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.
The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North American Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Directors quarterly.
The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.
8
Notes to Schedule of Investments (unaudited) (continued)
GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:
| • | Level 1– quoted prices in active markets for identical investments |
| • | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:
| ASSETS |
||||||||||||||||
| DESCRIPTION |
QUOTED PRICES (LEVEL 1) |
OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) |
TOTAL | ||||||||||||
| Long-term investments†: |
||||||||||||||||
| Senior loans |
— | $ | 168,577,803 | — | $ | 168,577,803 | ||||||||||
| Corporate bonds & notes |
— | 9,479,454 | — | 9,479,454 | ||||||||||||
| Common stocks: |
||||||||||||||||
| Consumer discretionary |
— | 243,144 | — | 243,144 | ||||||||||||
| Energy |
$ | 1,626,706 | — | — | 1,626,706 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total long-term investments |
$ | 1,626,706 | $ | 178,300,401 | — | $ | 179,927,107 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Short-term investments† |
— | 14,431,000 | — | 14,431,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total investments |
$ | 1,626,706 | $ | 192,731,401 | — | $ | 194,358,107 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| † | See Schedule of Investments for additional detailed categorizations. |
(b) Repurchase agreements. The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Fund’s holding period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked-to-market and measured against the value of the agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.
(c) Senior loans. Senior Loans generally are arranged through private negotiations between a borrower and several financial institutions (“Lenders”) represented in each case by one or more such Lenders acting as agent of the Lenders. On behalf of the Lenders, the agent will be primarily responsible for negotiating the loan agreement that establishes the relative terms and conditions of the Senior Loan and rights of the borrower and the Lenders. Also, an agent typically administers the terms of the loan agreement and is responsible for the monitoring of collateral and collection of principal and interest and fee payments from the borrower and the apportionment of these payments to the credit of all investors which are parties to the loan agreement. The Fund may act as one of the group of Lenders in a Senior Loan, and purchase assignments and participations in Senior Loans from third parties. Senior Loans are subject to credit risks, including the risk of nonpayment of scheduled interest or loan payments.
The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.
9
Notes to Schedule of Investments (unaudited) (continued)
(d) Unfunded loan commitments. The Fund may enter into certain credit agreements where all or a portion of which may be unfunded. The Fund is obligated to fund these commitments at the borrower’s discretion. The commitments are disclosed in the accompanying Schedule of Investments. At December 31, 2013, the Fund had sufficient cash and/or securities to cover these commitments.
(e) Security transactions. Security transactions are accounted for on a trade date basis.
2. Investments
At December 31, 2013, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
| Gross unrealized appreciation |
$ | 3,935,325 | ||
| Gross unrealized depreciation |
(896,512 | ) | ||
|
|
|
|||
| Net unrealized appreciation |
$ | 3,038,813 | ||
|
|
|
3. Derivative instruments and hedging activities
GAAP requires enhanced disclosure about an entity’s derivative and hedging activities.
During the period ended December 31, 2013, the Fund did not invest in any derivative instruments.
10
| ITEM 2. | CONTROLS AND PROCEDURES. |
| (a) | The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting. |
| ITEM 3. | EXHIBITS. |
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
LMP Corporate Loan Fund Inc.
| By: | /s/ KENNETH D. FULLER | |
| Kenneth D. Fuller | ||
| Chief Executive Officer | ||
| Date: |
February 25, 2014 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ KENNETH D. FULLER | |
| Kenneth D. Fuller | ||
| Chief Executive Officer | ||
| Date: |
February 25, 2014 | |
| By | /s/ RICHARD F. SENNETT | |
| Richard F. Sennett | ||
| Principal Financial Officer | ||
| Date: |
February 25, 2014 | |