UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-23199
First Trust Senior Floating Rate 2022 Target Term Fund
(Exact name of registrant as specified in charter)
120 East Liberty Drive
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive
Wheaton, IL 60187
(Name and address of agent for service)
registrant's telephone number, including area code: 630-765-8000
Date of fiscal year end: May 31
Date of reporting period: November 30, 2020
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
(a) The Report to Shareholders is attached herewith.
(b)
Target Term Fund (FIV)
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2 | |
4 | |
6 | |
13 | |
14 | |
15 | |
16 | |
17 | |
18 | |
23 |
Fund Statistics | |
Symbol on New York Stock Exchange | FIV |
Common Share Price | $8.72 |
Common Share Net Asset Value (“NAV”) | $9.35 |
Premium (Discount) to NAV | (6.74)% |
Net Assets Applicable to Common Shares | $335,017,785 |
Current Monthly Distribution per Common Share(1) | $0.0153 |
Current Annualized Distribution per Common Share | $0.1836 |
Current Distribution Rate on Common Share Price(2) | 2.11% |
Current Distribution Rate on NAV(2) | 1.96% |
Performance | ||||
Average Annual Total Returns | Cumulative Total Returns | |||
6 Months Ended 11/30/20 | 1 Year Ended 11/30/20 | Inception (12/21/16) to 11/30/20 | Inception (12/21/16) to 11/30/20 | |
Fund Performance(3) | ||||
NAV | 6.17% | 1.08% | 3.00% | 12.35% |
Market Value | 6.93% | -0.40% | 0.80% | 3.20% |
Index Performance | ||||
S&P/LSTA Leveraged Loan Index | 7.88% | 3.38% | 3.80% | 15.83% |
(1) | Most recent distribution paid or declared through 11/30/2020. Subject to change in the future. |
(2) | Distribution rates are calculated by annualizing the most recent distribution paid or declared through the report date and then dividing by Common Share Price or NAV, as applicable, as of 11/30/2020. Subject to change in the future. |
(3) | Total return is based on the combination of reinvested dividend, capital gain, and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
Credit Quality (S&P Ratings)(4) | % of Senior Loans and other Debt Securities(5) |
BBB- | 0.0%* |
BB+ | 2.0 |
BB | 6.6 |
BB- | 17.9 |
B+ | 36.6 |
B | 23.9 |
B- | 9.1 |
CCC+ | 0.5 |
CCC | 2.7 |
CCC- | 0.0* |
D | 0.7 |
Total | 100.0% |
* | Amount is less than 0.1%. |
Industry Classification | % of Senior Loans and other Securities(5) |
Software | 17.9% |
Health Care Providers & Services | 16.8 |
Pharmaceuticals | 12.4 |
Hotels, Restaurants & Leisure | 11.1 |
Insurance | 6.4 |
Diversified Financial Services | 5.2 |
Diversified Consumer Services | 4.4 |
Media | 4.1 |
Containers & Packaging | 3.9 |
Health Care Technology | 3.5 |
Food Products | 2.4 |
Entertainment | 2.0 |
Food & Staples Retailing | 2.0 |
Commercial Services & Supplies | 1.5 |
Auto Components | 1.5 |
Professional Services | 1.3 |
Aerospace & Defense | 0.8 |
Oil, Gas & Consumable Fuels | 0.7 |
Independent Power & Renewable Electricity Producers | 0.6 |
Electric Utilities | 0.4 |
Machinery | 0.4 |
Household Durables | 0.2 |
Communications Equipment | 0.2 |
Diversified Telecommunication Services | 0.1 |
IT Services | 0.1 |
Specialty Retail | 0.1 |
Total | 100.0% |
Top 10 Issuers | % of Senior Loans and other Securities(5) |
Asurion, LLC | 4.4% |
Pactiv LLC/Evergreen Packaging, LLC (fka Reynolds Group Holdings) | 3.6 |
AlixPartners, LLP | 3.4 |
CHG Healthcare Services, Inc. | 3.4 |
Change Healthcare Holdings, LLC | 3.3 |
SolarWinds Holdings, Inc. | 3.3 |
Pharmaceutical Product Development, Inc. (PPDI) | 3.2 |
Endo, LLC | 3.1 |
CityCenter Holdings, LLC | 2.8 |
Multiplan, Inc. (MPH) | 2.8 |
Total | 33.3% |
(4) | The ratings are by Standard & Poor’s except where otherwise indicated. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations except for those debt obligations that are only privately rated. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change. |
(5) | Percentages are based on long-term positions. Money market funds are excluded. |
1 | Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (c) – 141.4% | ||||||||
Aerospace & Defense – 1.1% | ||||||||
$3,703,215 | Transdigm, Inc., Tranche G Refinancing TL, 1 Mo. LIBOR + 2.25%, 0.00% Floor | 2.40% | 08/22/24 | $3,589,156 | ||||
Apparel Retail – 0.1% | ||||||||
300,110 | Burlington Coat Factory Warehouse Corp., Term Loan B-5, 1 Mo. LIBOR + 1.75%, 0.00% Floor | 1.90% | 11/17/24 | 293,108 | ||||
Application Software – 21.6% | ||||||||
1,509,849 | CCC Information Services, Inc. (Cypress), Term Loan B, 1 Mo. LIBOR + 3.00%, 1.00% Floor | 4.00% | 04/26/24 | 1,500,413 | ||||
8,795,547 | Hyland Software, Inc., Term Loan B, 1 Mo. LIBOR + 3.50%, 0.75% Floor | 4.25% | 07/01/24 | 8,746,116 | ||||
988,073 | Internet Brands, Inc. (WebMD/MH Sub I, LLC), 2020 June New Term Loan, 1 Mo. LIBOR + 3.75%, 1.00% Floor | 4.75% | 09/15/24 | 976,957 | ||||
8,603,772 | Internet Brands, Inc. (WebMD/MH Sub I, LLC), Initial Term Loan, 1 Mo. LIBOR + 3.50%, 0.00% Floor | 3.65% | 09/13/24 | 8,416,640 | ||||
11,075,715 | McAfee, LLC, Term Loan B, 1 Mo. LIBOR + 3.75%, 0.00% Floor | 3.90% | 09/30/24 | 11,043,928 | ||||
1,248,044 | Micro Focus International (MA Financeco, LLC), Miami Escrow TL B3, 1 Mo. LIBOR + 2.50%, 0.00% Floor | 2.65% | 06/21/24 | 1,212,163 | ||||
8,427,782 | Micro Focus International (MA Financeco, LLC), Seattle Spinco TLB, 1 Mo. LIBOR + 2.50%, 0.00% Floor | 2.65% | 06/21/24 | 8,185,483 | ||||
694,962 | Qlik Technologies (Project Alpha Intermediate Holding, Inc.), 2019 Incremental Term Loan B, 3 Mo. LIBOR + 4.25%, 0.00% Floor | 4.48% | 04/26/24 | 682,801 | ||||
5,470,092 | Qlik Technologies (Project Alpha Intermediate Holding, Inc.), Term Loan B, 3 Mo. LIBOR + 3.50%, 1.00% Floor | 4.50% | 04/26/24 | 5,360,690 | ||||
16,155,937 | SolarWinds Holdings, Inc., Initial Term Loan, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 02/05/24 | 15,930,077 | ||||
9,921,957 | Solera Holdings, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 03/03/23 | 9,780,767 | ||||
378,954 | Veeam Software Holdings Limited (VS Buyer, LLC), Term Loan B, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.40% | 02/28/27 | 373,743 | ||||
72,209,778 | ||||||||
Auto Parts & Equipment – 2.1% | ||||||||
5,801,767 | Gates Global, LLC, Initial B-2 Dollar Term Loans, 1 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 03/31/24 | 5,743,750 | ||||
2,478,430 | Lumileds (Bright Bidco B.V.), Term Loan B, 6 Mo. LIBOR + 3.50%, 1.00% Floor | 4.50% | 06/30/24 | 1,360,038 | ||||
7,103,788 | ||||||||
Broadcasting – 4.9% | ||||||||
1,008,475 | Cumulus Media Holdings, Inc., Term Loan B, 6 Mo. LIBOR + 3.75%, 1.00% Floor | 4.75% | 03/31/26 | 969,397 | ||||
160,058 | iHeartCommunications, Inc., Incremental Term Loan B, 1 Mo. LIBOR + 4.00%, 0.75% Floor | 4.75% | 05/01/26 | 157,589 | ||||
3,674,894 | iHeartCommunications, Inc., Term Loan B, 1 Mo. LIBOR + 3.00%, 0.00% Floor | 3.15% | 04/29/26 | 3,550,866 | ||||
4,205,492 | Nexstar Broadcasting, Inc., Incremental Term Loan B-4, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 09/19/26 | 4,150,821 | ||||
7,735,971 | Nexstar Broadcasting, Inc., Nexstar Term Loan B-3, 1 Mo. LIBOR + 2.25%, 0.00% Floor | 2.40% | 01/17/24 | 7,623,799 | ||||
16,452,472 | ||||||||
Cable & Satellite – 0.6% | ||||||||
2,236,825 | Cablevision (aka CSC Holdings, LLC), March 2017 Term Loan B-1, 1 Mo. LIBOR + 2.25%, 0.00% Floor | 2.39% | 07/17/25 | 2,177,706 |
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (c) (Continued) | ||||||||
Casinos & Gaming – 12.1% | ||||||||
$655,305 | Bally’s Corp. (fka Twin River), Term Loan B, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 05/10/26 | $627,454 | ||||
7,922,016 | Boyd Gaming Corp., Term Loan B, 1 Week LIBOR + 2.25%, 0.00% Floor | 2.35% | 09/15/23 | 7,798,274 | ||||
441,823 | Caesars Resort Collection, LLC, Term B-1 Loans, 1 Mo. LIBOR + 4.50%, 0.00% Floor | 4.65% | 06/30/25 | 437,334 | ||||
10,994,724 | Caesars Resort Collection, LLC, Term Loan B, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 12/22/24 | 10,627,830 | ||||
14,076,200 | CityCenter Holdings, LLC, Term Loan B, 1 Mo. LIBOR + 2.25%, 0.75% Floor | 3.00% | 04/18/24 | 13,550,173 | ||||
4,240,789 | Golden Nugget, Inc., Term Loan B, 2 Mo. LIBOR + 2.50%, 0.75% Floor | 3.25% | 10/04/23 | 4,035,577 | ||||
3,741,314 | Scientific Games International, Inc., Term Loan B5, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 08/14/24 | 3,608,048 | ||||
40,684,690 | ||||||||
Coal & Consumable Fuels – 1.0% | ||||||||
3,904,686 | Arch Coal, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 03/07/24 | 3,289,698 | ||||
Communications Equipment – 0.3% | ||||||||
853,380 | Commscope, Inc., Term Loan B, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.40% | 04/06/26 | 837,916 | ||||
Data Processing & Outsourced Services – 0.1% | ||||||||
474,051 | Cardtronics USA, Inc., Term Loan B, 1 Mo. LIBOR + 4.00%, 1.00% Floor | 5.00% | 06/30/27 | 473,013 | ||||
Electric Utilities – 0.5% | ||||||||
1,818,720 | PG&E Corp., Exit Term Loan, 3 Mo. LIBOR + 4.50%, 1.00% Floor | 5.50% | 06/23/25 | 1,830,087 | ||||
Environmental & Facilities Services – 2.2% | ||||||||
2,232,558 | Packers Holdings, LLC, Incremental Term Loan B, 1 Mo. LIBOR + 4.00%, 0.75% Floor | 4.75% | 12/04/24 | 2,221,395 | ||||
5,242,125 | Packers Holdings, LLC, Term Loan B, 1 Mo. LIBOR + 3.00%, 1.00% Floor | 4.00% | 12/04/24 | 5,158,251 | ||||
7,379,646 | ||||||||
Food Distributors – 1.6% | ||||||||
652,577 | US Foods, Inc., Incremental B-2019 Term Loan, 1 Mo. LIBOR + 2.00%, 0.00% Floor | 2.15% | 08/31/26 | 627,361 | ||||
4,961,233 | US Foods, Inc., Term Loan B, 1 Mo. LIBOR + 1.75%, 0.00% Floor | 1.90% | 06/27/23 | 4,793,246 | ||||
5,420,607 | ||||||||
Health Care Facilities – 4.9% | ||||||||
10,774,723 | Acadia Healthcare Company, Inc., Term Loan B4, 1 Mo. LIBOR + 2.50%, 0.00% Floor | 2.65% | 02/16/23 | 10,678,504 | ||||
1,012,712 | Gentiva Health Services, Inc. (Kindred at Home), Term Loan B, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.44% | 07/02/25 | 1,005,542 | ||||
4,697,054 | Select Medical Corporation, Term Loan B, 6 Mo. LIBOR + 2.50%, 0.00% Floor | 2.78% | 03/06/25 | 4,607,529 | ||||
16,291,575 |
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (c) (Continued) | ||||||||
Health Care Services – 14.2% | ||||||||
$2,485,292 | Air Methods Corp. (a/k/a ASP AMC Intermediate Holdings, Inc.), Term Loan B, 3 Mo. LIBOR + 3.50%, 1.00% Floor | 4.50% | 04/21/24 | $2,316,640 | ||||
5,368,792 | athenahealth, Inc. (VVC Holding Corp.), Term Loan B, 3 Mo. LIBOR + 4.50%, 0.00% Floor | 4.75% | 02/15/26 | 5,328,526 | ||||
16,289,476 | CHG Healthcare Services, Inc., Term Loan, 6 Mo. LIBOR + 3.00%, 1.00% Floor | 4.00% | 06/07/23 | 16,081,785 | ||||
3,324,251 | DuPage Medical Group (Midwest Physician Admin. Services, LLC), Repricing Term Loan, 1 Mo. LIBOR + 2.75%, 0.75% Floor | 3.50% | 08/15/24 | 3,271,628 | ||||
3,901,246 | Envision Healthcare Corporation, Initial Term Loan, 1 Mo. LIBOR + 3.75%, 0.00% Floor | 3.90% | 10/10/25 | 3,170,192 | ||||
5,248,626 | Exam Works (Gold Merger Co., Inc.), Term B-1 Loan, 3 Mo. LIBOR + 3.25%, 1.00% Floor | 4.25% | 07/27/23 | 5,213,198 | ||||
4,217,365 | Surgery Centers Holdings, Inc., Term Loan B, 1 Mo. LIBOR + 3.25%, 1.00% Floor | 4.25% | 08/31/24 | 4,125,469 | ||||
2,562,396 | Team Health, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 02/06/24 | 2,228,490 | ||||
5,765,397 | Verscend Technologies, Inc., Term Loan B, 1 Mo. LIBOR + 4.50%, 0.00% Floor | 4.65% | 08/27/25 | 5,738,357 | ||||
47,474,285 | ||||||||
Health Care Technology – 5.0% | ||||||||
675,626 | Change Healthcare Holdings, LLC, Closing Date Term Loan, 1 Mo. LIBOR + 2.50%, 1.00% Floor | 3.50% | 03/01/24 | 668,958 | ||||
15,463,963 | Change Healthcare Holdings, LLC, Closing Date Term Loan, 3 Mo. LIBOR + 2.50%, 1.00% Floor | 3.50% | 03/01/24 | 15,311,333 | ||||
1,701 | Press Ganey (Azalea TopCo, Inc.), Term Loan B, 1 Mo. LIBOR + 3.50%, 0.00% Floor | 3.65% | 07/25/26 | 1,659 | ||||
671,826 | Press Ganey (Azalea TopCo, Inc.), Term Loan B, 3 Mo. LIBOR + 3.50%, 0.00% Floor | 3.71% | 07/25/26 | 655,198 | ||||
16,637,148 | ||||||||
Hotels, Resorts & Cruise Lines – 1.8% | ||||||||
6,142,424 | Four Seasons Holdings, Inc., Term Loan B, 1 Mo. LIBOR + 2.00%, 0.00% Floor | 2.15% | 11/30/23 | 5,987,143 | ||||
Household Appliances – 0.3% | ||||||||
1,146,087 | Traeger Grills (TGP Holdings III, LLC), 2018 Refinancing Term Loan, 1 Mo. LIBOR + 4.00%, 1.00% Floor | 5.00% | 09/25/24 | 1,114,570 | ||||
Human Resource & Employment Services – 1.7% | ||||||||
5,962,936 | Alight, Inc. (fka Tempo Acq.), Non Extended Term Loan, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 05/01/24 | 5,843,678 | ||||
Hypermarkets & Super Centers – 1.3% | ||||||||
4,261,241 | BJ’s Wholesale Club, Inc., Term Loan B, 1 Mo. LIBOR + 2.00%, 0.00% Floor | 2.14% | 02/03/24 | 4,243,642 | ||||
Independent Power Producers & Energy Traders – 0.8% | ||||||||
2,748,037 | Calpine Corporation, Term Loan B5, 1 Mo. LIBOR + 2.25%, 0.00% Floor | 2.40% | 01/15/24 | 2,731,302 | ||||
Industrial Machinery – 0.5% | ||||||||
1,767,216 | Thyssenkrupp Elevator (Vertical U.S. Newco Inc.), Term Loan B, 6 Mo. LIBOR + 4.25%, 0.00% Floor | 4.57% | 07/31/27 | 1,761,579 | ||||
Insurance Brokers – 9.1% | ||||||||
2,078,166 | Alliant Holdings I, LLC, 2019 New Term Loan, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.39% | 05/10/25 | 2,024,778 |
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (c) (Continued) | ||||||||
Insurance Brokers (Continued) | ||||||||
$3,273,782 | Alliant Holdings I, LLC, Initial Term Loan, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.40% | 05/09/25 | $3,189,220 | ||||
1,666,667 | Alliant Holdings I, LLC, Term Loan B3, 1 Mo. LIBOR + 3.75%, 0.50% Floor | 4.25% | 10/08/27 | 1,657,300 | ||||
11,877,687 | Amwins Group, Inc., Term Loan B (First Lien), 1 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 01/25/24 | 11,825,782 | ||||
5,153 | HUB International Limited, 2019 Incremental Term Loan B2, 1 Mo. LIBOR + 4.00%, 1.00% Floor | 5.00% | 04/25/25 | 5,154 | ||||
2,040,383 | HUB International Limited, 2019 Incremental Term Loan B2, 3 Mo. LIBOR + 4.00%, 1.00% Floor | 5.00% | 04/25/25 | 2,040,995 | ||||
16,338 | HUB International Limited, Term Loan B, 2 Mo. LIBOR + 2.75%, 0.00% Floor | 2.94% | 04/25/25 | 15,929 | ||||
6,371,914 | HUB International Limited, Term Loan B, 3 Mo. LIBOR + 2.75%, 0.00% Floor | 2.96% | 04/25/25 | 6,212,616 | ||||
3,740,509 | USI, Inc. (fka Compass Investors, Inc.), Term Loan B, 3 Mo. LIBOR + 3.00%, 0.00% Floor | 3.22% | 05/15/24 | 3,659,004 | ||||
30,630,778 | ||||||||
Integrated Telecommunication Services – 0.2% | ||||||||
721,664 | Numericable (Altice France SA or SFR), Term Loan B-11, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 07/31/25 | 698,138 | ||||
Interactive Home Entertainment – 0.9% | ||||||||
3,005,730 | Playtika Holding Corp., Term Loan B, 6 Mo. LIBOR + 6.00%, 1.00% Floor | 7.00% | 12/10/24 | 3,017,332 | ||||
Leisure Facilities – 0.3% | ||||||||
1,059,627 | ClubCorp Holdings, Inc., Term Loan B, 3 Mo. LIBOR + 2.75%, 0.00% Floor | 2.97% | 09/18/24 | 938,173 | ||||
Managed Health Care – 5.0% | ||||||||
13,458,617 | Multiplan, Inc. (MPH), Term Loan B, 3 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 06/07/23 | 13,260,102 | ||||
3,379,179 | Versant Health (Wink Holdco, Inc.), Initial Term Loan, 1 Mo. LIBOR + 3.00%, 1.00% Floor | 4.00% | 12/02/24 | 3,372,421 | ||||
16,632,523 | ||||||||
Movies & Entertainment – 1.5% | ||||||||
6,737,046 | Cineworld Group PLC (Crown), Term Loan B, 6 Mo. LIBOR + 2.25%, 0.00% Floor | 2.77% | 02/28/25 | 5,144,745 | ||||
Other Diversified Financial Services – 7.5% | ||||||||
16,826,880 | AlixPartners, LLP, Term Loan B, 1 Mo. LIBOR + 2.50%, 0.00% Floor | 2.65% | 04/04/24 | 16,475,703 | ||||
8,648,518 | Refinitiv US Holdings, Inc., Term Loan B, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.40% | 10/01/25 | 8,591,351 | ||||
25,067,054 | ||||||||
Packaged Foods & Meats – 3.5% | ||||||||
3,005,216 | Hostess Brands, LLC (HB Holdings), Term Loan B, 1 Mo. LIBOR + 2.25%, 0.75% Floor | 3.00% | 08/03/25 | 2,968,402 | ||||
27,966 | Hostess Brands, LLC (HB Holdings), Term Loan B, 2 Mo. LIBOR + 2.25%, 0.75% Floor | 3.00% | 08/03/25 | 27,624 | ||||
8,041,591 | Hostess Brands, LLC (HB Holdings), Term Loan B, 3 Mo. LIBOR + 2.25%, 0.75% Floor | 3.00% | 08/03/25 | 7,943,082 |
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (c) (Continued) | ||||||||
Packaged Foods & Meats (Continued) | ||||||||
$675,414 | Simply Good Foods (Atkins Nutritionals, Inc.), Term Loan B, 1 Mo. LIBOR + 3.75%, 1.00% Floor | 4.75% | 07/07/24 | $675,974 | ||||
11,615,082 | ||||||||
Paper Packaging – 5.5% | ||||||||
1,470,355 | Graham Packaging Company, L.P., Initial Term Loan, 1 Mo. LIBOR + 3.75%, 0.75% Floor | 4.50% | 07/28/27 | 1,467,973 | ||||
17,342,206 | Pactiv LLC/Evergreen Packaging LLC (fka Reynolds Group Holdings), U.S. Term Loan, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 02/05/23 | 17,109,127 | ||||
18,577,100 | ||||||||
Pharmaceuticals – 17.3% | ||||||||
1,194,429 | Akorn, Inc., Exit Take Back Term Loan , 3 Mo. LIBOR + 7.50%, 1.00% Floor (d) (e) | 8.50% | 09/30/25 | 1,193,688 | ||||
5,826,840 | Bausch Health Companies, Inc. (Valeant), First Incremental Term Loan, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.89% | 06/01/25 | 5,732,154 | ||||
7,549,892 | Bausch Health Companies, Inc. (Valeant), Term Loan B, 1 Mo. LIBOR + 3.00%, 0.00% Floor | 3.14% | 06/01/25 | 7,455,518 | ||||
15,353,976 | Endo, LLC, Term Loan B, 3 Mo. LIBOR + 4.25%, 0.75% Floor | 5.00% | 04/29/24 | 14,874,164 | ||||
2,449,030 | GoodRX, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 10/15/25 | 2,405,560 | ||||
3,006,953 | Mallinckrodt International Finance S.A., 2017 Term Loan B, 3 Mo. LIBOR + 4.75%, 0.75% Floor (f) | 5.50% | 09/24/24 | 2,808,584 | ||||
565,619 | Mallinckrodt International Finance S.A., 2018 Incremental Term Loan, 6 Mo. LIBOR + 5.00%, 0.75% Floor (f) | 5.75% | 02/24/25 | 528,006 | ||||
7,834,469 | Parexel International Corp., Term Loan B, 1 Mo. LIBOR + 2.75%, 0.00% Floor | 2.90% | 09/27/24 | 7,658,194 | ||||
15,453,093 | Pharmaceutical Product Development, Inc. (PPDI/Jaguar), Term Loan B, 1 Mo. LIBOR + 2.50%, 1.00% Floor | 3.50% | 08/18/22 | 15,417,705 | ||||
58,073,573 | ||||||||
Research & Consulting Services – 0.1% | ||||||||
174,430 | Nielsen Finance, LLC (VNU, Inc.), Term Loan B5, 1 Mo. LIBOR + 3.75%, 1.00% Floor | 4.75% | 06/30/25 | 174,518 | ||||
Restaurants – 1.6% | ||||||||
13,712 | IRB Holding Corp. (Arby’s/Inspire Brands), Term Loan B, 3 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 02/05/25 | 13,460 | ||||
5,333,996 | IRB Holding Corp. (Arby’s/Inspire Brands), Term Loan B, 6 Mo. LIBOR + 2.75%, 1.00% Floor | 3.75% | 02/05/25 | 5,235,797 | ||||
5,249,257 | ||||||||
Specialized Consumer Services – 6.3% | ||||||||
2,131,085 | Asurion, LLC, Second Lien Replacement B-2 Term Loan, 1 Mo. LIBOR + 6.50%, 0.00% Floor | 6.65% | 08/04/25 | 2,142,635 | ||||
9,101,588 | Asurion, LLC, Term Loan B4, 1 Mo. LIBOR + 3.00%, 0.00% Floor | 3.15% | 08/04/22 | 9,056,080 | ||||
9,920,733 | Asurion, LLC, Term Loan B6, 1 Mo. LIBOR + 3.00%, 0.00% Floor | 3.15% | 11/03/23 | 9,811,208 | ||||
21,009,923 | ||||||||
Systems Software – 3.9% | ||||||||
2,677,377 | Applied Systems, Inc., 1st Lien Term Loan, 3 Mo. LIBOR + 3.00%, 1.00% Floor | 4.00% | 09/19/24 | 2,666,132 | ||||
6,554,740 | BMC Software Finance, Inc. (Boxer Parent), Term Loan B, 1 Mo. LIBOR + 4.25%, 0.00% Floor | 4.40% | 10/02/25 | 6,474,051 |
Principal Value | Description | Rate (a) | Stated Maturity (b) | Value | ||||
SENIOR FLOATING-RATE LOAN INTERESTS (c) (Continued) | ||||||||
Systems Software (Continued) | ||||||||
$1,250,387 | Misys Financial Software Ltd. (Almonde, Inc.) (Finastra), Term Loan B, 6 Mo. LIBOR + 3.50%, 1.00% Floor | 4.50% | 06/13/24 | $1,210,037 | ||||
4,694 | Riverbed Technology, Inc., Term Loan B, 2 Mo. LIBOR + 3.25%, 1.00% Floor | 4.25% | 04/24/22 | 4,221 | ||||
1,769,770 | Riverbed Technology, Inc., Term Loan B, 3 Mo. LIBOR + 3.25%, 1.00% Floor | 4.25% | 04/24/22 | 1,591,377 | ||||
1,267,527 | SUSE (Marcel Lux IV SARL), Facility B1 USD, 1 Mo. LIBOR + 3.25%, 0.00% Floor | 3.40% | 03/15/26 | 1,234,255 | ||||
13,180,073 | ||||||||
Total Senior Floating-Rate Loan Interests | 473,834,856 | |||||||
(Cost $481,333,303) | ||||||||
Principal Value | Description | Stated Coupon | Stated Maturity | Value | ||||
CORPORATE BONDS AND NOTES (c) – 0.8% | ||||||||
Broadcasting – 0.3% | ||||||||
1,290,000 | Diamond Sports Group, LLC/Diamond Sports Finance Co. (g) | 5.38% | 08/15/26 | 1,002,169 | ||||
Coal & Consumable Fuels – 0.0% | ||||||||
280,000 | Peabody Energy Corp. (g) | 6.38% | 03/31/25 | 71,400 | ||||
Movies & Entertainment – 0.5% | ||||||||
1,950,000 | AMC Entertainment Holdings, Inc. (g) | 10.50% | 04/15/25 | 1,567,312 | ||||
Total Corporate Bonds and Notes | 2,640,881 | |||||||
(Cost $2,285,352) |
Shares | Description | Value | ||
COMMON STOCKS (c) – 0.4% | ||||
Pharmaceuticals – 0.4% | ||||
101,688 | Akorn, Inc. (d) (h) (i) | 1,343,146 | ||
(Cost $1,166,044) | ||||
MONEY MARKET FUNDS (c) – 2.2% | ||||
7,339,044 | Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 0.01% (j) | 7,339,044 | ||
(Cost $7,339,044) | ||||
Total Investments – 144.8% | 485,157,927 | |||
(Cost $492,123,743) (k) | ||||
Outstanding Loans – (42.4)% | (142,000,000) | |||
Net Other Assets and Liabilities – (2.4)% | (8,140,142) | |||
Net Assets – 100.0% | $335,017,785 |
(a) | Senior Floating-Rate Loan Interests (“Senior Loans”) in which the Fund invests pay interest at rates which are periodically predetermined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the lending rate offered by one or more major European banks, such as the LIBOR, (ii) the prime rate offered by one or more United States banks or (iii) the certificate of deposit rate. Certain Senior Loans are subject to a LIBOR floor that establishes a minimum LIBOR rate. When a range of rates is disclosed, the Fund holds more than one contract within the same tranche with identical LIBOR period, spread and floor, but different LIBOR reset dates. |
(b) | Senior Loans generally are subject to mandatory and/or optional prepayment. As a result, the actual remaining maturity of Senior Loans may be substantially less than the stated maturities shown. |
(c) | All of these securities are available to serve as collateral for the outstanding loans. |
(d) | On October 1, 2020, Akorn Holding Company LLC completed a Bankruptcy Plan of Reorganization. In connection with the Plan of Reorganization, the Fund received a portion of a new exit term loan and a share of the newly issued common equity shares in the re-organized company. |
(e) | The issuer may pay interest on the loans (1) entirely in cash or (2) in the event that both the Payment-In-Kind (“PIK”) Toggle Condition has been satisfied and the issuer elects to exercise the PIK interest, 2.50% payable in cash and 7.00% payable as PIK interest. The first interest payment is scheduled for January 4, 2021. |
(f) | This issuer has filed for protection in bankruptcy court. |
(g) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A under the Securities Act of 1933, as amended (the “1933 Act”), and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Fund’s Board of Trustees, this security has been determined to be liquid by First Trust Advisors L.P. (the “Advisor”). Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and assumptions, which require subjective judgment. At November 30, 2020, securities noted as such amounted to $2,640,881 or 0.8% of net assets. |
(h) | Security received in a transaction exempt from registration under the 1933 Act. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. Pursuant to procedures adopted by the Fund’s Board of Trustees, this security has been determined to be illiquid by the Advisor. Although market instability can result in periods of increased overall market illiquidity, liquidity for the security is determined based on security-specific factors and assumptions, which require subjective judgment. At November 30, 2020, securities noted as such amounted to $1,343,146 or 0.4% of net assets. |
(i) | Non-income producing security. |
(j) | Rate shown reflects yield as of November 30, 2020. |
(k) | Aggregate cost for financial reporting purposes approximates the aggregate cost for federal income tax purposes. As of November 30, 2020, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $1,771,137 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $8,736,953. The net unrealized depreciation was $6,965,816. |
LIBOR | London Interbank Offered Rate |
Total Value at 11/30/2020 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Senior Floating-Rate Loan Interests* | $ 473,834,856 | $ — | $ 473,834,856 | $ — |
Corporate Bonds and Notes* | 2,640,881 | — | 2,640,881 | — |
Common Stocks* | 1,343,146 | — | 1,343,146 | — |
Money Market Funds | 7,339,044 | 7,339,044 | — | — |
Total Investments | $ 485,157,927 | $ 7,339,044 | $ 477,818,883 | $— |
* | See Portfolio of Investments for industry breakout. |
ASSETS: | |
Investments, at value (Cost $492,123,743) | $ 485,157,927 |
Receivables: | |
Investment securities sold | 15,782,102 |
Interest | 911,748 |
Prepaid expenses | 4,023 |
Total Assets | 501,855,800 |
LIABILITIES: | |
Outstanding loans | 142,000,000 |
Due to custodian | 6,518,675 |
Payables: | |
Investment securities purchased | 17,576,604 |
Investment advisory fees | 327,362 |
Excise tax | 292,769 |
Audit and tax fees | 33,517 |
Custodian fees | 26,745 |
Administrative fees | 25,666 |
Interest and fees on loans | 22,040 |
Shareholder reporting fees | 6,571 |
Trustees’ fees and expenses | 2,967 |
Legal fees | 2,217 |
Transfer agent fees | 1,769 |
Financial reporting fees | 771 |
Other liabilities | 342 |
Total Liabilities | 166,838,015 |
NET ASSETS | $335,017,785 |
NET ASSETS consist of: | |
Paid-in capital | $ 351,752,183 |
Par value | 358,316 |
Accumulated distributable earnings (loss) | (17,092,714) |
NET ASSETS | $335,017,785 |
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share) | $9.35 |
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized) | 35,831,569 |
INVESTMENT INCOME: | ||
Interest | $ 8,923,370 | |
Other | 152,353 | |
Total investment income | 9,075,723 | |
EXPENSES: | ||
Investment advisory fees | 1,953,220 | |
Interest and fees on loans | 521,898 | |
Excise tax expense | 169,501 | |
Administrative fees | 147,096 | |
Shareholder reporting fees | 34,993 | |
Audit and tax fees | 32,603 | |
Custodian fees | 30,379 | |
Legal fees | 28,739 | |
Listing expense | 20,496 | |
Transfer agent fees | 10,009 | |
Trustees’ fees and expenses | 8,189 | |
Financial reporting fees | 4,625 | |
Other | 18,731 | |
Total expenses | 2,980,479 | |
NET INVESTMENT INCOME (LOSS) | 6,095,244 | |
NET REALIZED AND UNREALIZED GAIN (LOSS): | ||
Net realized gain (loss) on investments | (2,572,171) | |
Net change in unrealized appreciation (depreciation) on investments | 15,681,439 | |
NET REALIZED AND UNREALIZED GAIN (LOSS) | 13,109,268 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ 19,204,512 |
Six Months Ended 11/30/2020 (Unaudited) | Year Ended 5/31/2020 | ||
OPERATIONS: | |||
Net investment income (loss) | $ 6,095,244 | $ 14,378,718 | |
Net realized gain (loss) | (2,572,171) | (7,431,479) | |
Net change in unrealized appreciation (depreciation) | 15,681,439 | (15,085,573) | |
Net increase (decrease) in net assets resulting from operations | 19,204,512 | (8,138,334) | |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||
Investment operations | (3,916,391) | (11,774,254) | |
Total increase (decrease) in net assets | 15,288,121 | (19,912,588) | |
NET ASSETS: | |||
Beginning of period | 319,729,664 | 339,642,252 | |
End of period | $ 335,017,785 | $ 319,729,664 | |
COMMON SHARES: | |||
Common Shares at end of period | 35,831,569 | 35,831,569 |
Cash flows from operating activities: | ||
Net increase (decrease) in net assets resulting from operations | $19,204,512 | |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities: | ||
Purchases of investments | (281,811,041) | |
Sales, maturities and paydown of investments | 247,782,456 | |
Net amortization/accretion of premiums/discounts on investments | (724,551) | |
Net realized gain/loss on investments | 2,572,171 | |
Net change in unrealized appreciation/depreciation on investments | (15,681,439) | |
Changes in assets and liabilities: | ||
Increase in interest receivable | (18,955) | |
Decrease in prepaid expenses | 18,403 | |
Increase in due to custodian | 6,518,675 | |
Decrease in interest and fees payable on loans | (144,161) | |
Increase in investment advisory fees payable | 25,920 | |
Decrease in audit and tax fees payable | (26,238) | |
Decrease in legal fees payable | (5,347) | |
Decrease in shareholder reporting fees payable | (11,682) | |
Decrease in administrative fees payable | (3,590) | |
Increase in custodian fees payable | 5,629 | |
Decrease in transfer agent fees payable | (3,338) | |
Increase in trustees’ fees and expenses payable | 231 | |
Increase in excise tax payable | 169,501 | |
Decrease in other liabilities payable | (3,359) | |
Cash used in operating activities | $(22,136,203) | |
Cash flows from financing activities: | ||
Distributions to Common Shareholders from investment operations | (3,916,391) | |
Repayment of borrowings | (52,000,000) | |
Proceeds from borrowings | 78,000,000 | |
Cash provided by financing activities | 22,083,609 | |
Decrease in cash | (52,594) | |
Cash at beginning of period | 52,594 | |
Cash at end of period | $— | |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest and fees | $666,059 | |
Cash paid during the year for excise taxes | $169,501 |
Six Months Ended 11/30/2020 (Unaudited) | Year Ended | Period Ended 5/31/2017 (a) | |||||||
5/31/2020 | 5/31/2019 | 5/31/2018 | |||||||
Net asset value, beginning of period | $ 8.92 | $ 9.48 | $ 9.64 | $ 9.88 | $ 9.85 | ||||
Income from investment operations: | |||||||||
Net investment income (loss) | 0.17 | 0.40 | 0.48 | 0.47 | 0.17 | ||||
Net realized and unrealized gain (loss) | 0.37 | (0.63) | (0.16) | (0.21) | 0.00 (b) | ||||
Total from investment operations | 0.54 | (0.23) | 0.32 | 0.26 | 0.17 | ||||
Distributions paid to shareholders from: | |||||||||
Net investment income | (0.11) | (0.33) | (0.48) | (0.50) | (0.13) | ||||
Common Shares offering costs charged to paid-in capital | — | — | — | — | (0.02) | ||||
Premiums from shares sold in at the market offering | — | — | — | — | 0.01 | ||||
Net asset value, end of period | $9.35 | $8.92 | $9.48 | $9.64 | $9.88 | ||||
Market value, end of period | $8.72 | $8.26 | $8.87 | $9.37 | $10.00 | ||||
Total return based on net asset value (c) | 6.17% | (2.30)% | 3.67% | 2.83% | 1.59% | ||||
Total return based on market value (c) | 6.93% | (3.30)% | (0.21)% | (1.24)% | 1.28% | ||||
Ratios to average net assets/supplemental data: | |||||||||
Net assets, end of period (in 000’s) | $ 335,018 | $ 319,730 | $ 339,642 | $ 345,578 | $ 353,941 | ||||
Ratio of total expenses to average net assets | 1.82% (d) | 2.41% | 2.66% | 2.10% | 1.69% (d) | ||||
Ratio of total expenses to average net assets excluding interest expense | 1.50% (d) | 1.41% | 1.38% | 1.33% | 1.28% (d) | ||||
Ratio of net investment income (loss) to average net assets | 3.72% | 4.34% | 5.01% | 4.84% | 3.86% (d) | ||||
Portfolio turnover rate | 32% | 68% | 61% | 95% | 61% | ||||
Indebtedness: | |||||||||
Total loans outstanding (in 000’s) | $ 142,000 | $ 116,000 | $ 148,000 | $ 119,000 | $ 128,000 | ||||
Asset coverage per $1,000 of indebtedness (e) | $ 3,359 | $ 3,756 | $ 3,295 | $ 3,904 | $ 3,765 |
(a) | The Fund was seeded on November 15, 2016 and commenced operations on December 21, 2016. |
(b) | Amount represents less than $0.01 per share. |
(c) | Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan, and changes in net asset value per share for net asset value returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
(d) | Annualized. |
(e) | Calculated by subtracting the Fund’s total liabilities (not including the loans outstanding) from the Fund’s total assets, and dividing by the outstanding loans balance in 000’s. |
1) | the fundamental business data relating to the borrower; |
2) | an evaluation of the forces which influence the market in which these securities are purchased and sold; |
(1) | The terms “security” and “securities” used throughout the Notes to Financial Statements include Senior Loans. |
3) | the type, size and cost of the security; |
4) | the financial statements of the borrower; |
5) | the credit quality and cash flow of the borrower, based on the Advisor’s or external analysis; |
6) | the information as to any transactions in or offers for the security; |
7) | the price and extent of public trading in similar securities (or equity securities) of the borrower, or comparable companies; |
8) | the coupon payments; |
9) | the quality, value and salability of collateral, if any, securing the security; |
10) | the business prospects of the borrower, including any ability to obtain money or resources from a parent or affiliate and an assessment of the borrower’s management; |
11) | the prospects for the borrower’s industry, and multiples (of earnings and/or cash flows) being paid for similar businesses in that industry; |
12) | the borrower’s competitive position within the industry; |
13) | the borrower’s ability to access additional liquidity through public and/or private markets; and |
14) | other relevant factors. |
1) | benchmark yields; |
2) | reported trades; |
3) | broker/dealer quotes; |
4) | issuer spreads; |
5) | benchmark securities; |
6) | bids and offers; and |
7) | reference data including market research publications. |
1) | the type of security; |
2) | the size of the holding; |
3) | the initial cost of the security; |
4) | transactions in comparable securities; |
5) | price quotes from dealers and/or third-party pricing services; |
6) | relationships among various securities; |
7) | information obtained by contacting the issuer, analysts, or the appropriate stock exchange; |
8) | an analysis of the issuer’s financial statements; and |
9) | the existence of merger proposals or tender offers that might affect the value of the security. |
• | Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
• | Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following: |
o | Quoted prices for similar investments in active markets. |
o | Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. |
o | Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). |
o | Inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
• | Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment. |
Distributions paid from: | |
Ordinary income | $11,774,254 |
Capital gains | — |
Return of capital | — |
Undistributed ordinary income | $4,262,569 |
Undistributed capital gains | — |
Total undistributed earnings | 4,262,569 |
Accumulated capital and other losses | (13,410,847) |
Net unrealized appreciation (depreciation) | (23,232,557) |
Total accumulated earnings (losses) | (32,380,835) |
Other | — |
Paid-in capital | 352,110,499 |
Total net assets | $319,729,664 |
(1) | If Common Shares are trading at or above net asset value (“NAV”) at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) NAV per Common Share on that date or (ii) 95% of the market price on that date. |
(2) | If Common Shares are trading below NAV at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the NYSE or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market within 30 days of the valuation date except where temporary curtailment or suspension of purchases is necessary to comply with federal securities laws. Interest will not be paid on any uninvested cash payments. |
FUND ACCOUNTANT, AND
CUSTODIAN
PUBLIC ACCOUNTING FIRM
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a) | Not applicable. |
(b) | There have been no changes, as of the date of filing, in any of the Portfolio Managers identified in response to paragraph (a)(1) of this item in the Registrant’s most recent annual report on Form N-CSR. |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
On October 19, 2020, after a thorough review, and consistent with the interests of the Fund, the Board of Trustees adopted Amended and Restated By-Laws, dated October 19, 2020 (the “Amended and Restated By-Laws”).
Among other changes, the Amended and Restated By-Laws contain new timelines for advance notice of nominees for Trustee to be brought before a meeting of shareholders. Further, the Amended and Restated By-Laws require compliance with certain procedural and informational requirements in connection with the advance notice of nominations, including a requirement to provide certain information about the nominee, and if requested, requires a nominee to sit for an interview with the Board to determine whether the nominee has the ability to critically review, evaluate, question and discuss information provided to the Board, and interact effectively with the other Trustees and management of the Fund, among other parties. Additionally, the Amended and Restated By-Laws include qualifications and eligibility requirements for Trustees. Any shareholder considering making a nomination should carefully review and comply with those provisions of the Amended and Restated By-Laws.
This discussion is only a high-level summary of certain aspects of the Amended and Restated By-Laws, and, is qualified in its entirety by reference to the Amended and Restated By-Laws. Shareholders should refer to the Amended and Restated By-Laws for more information. A copy of the Amended and Restated By-Laws can be found in the Current Report on Form 8-K filed by the Fund with the Securities and Exchange Commission on October 20, 2020, which is available at www.sec.gov, and may also be obtained by writing to the Secretary of the Fund at the Fund’s principal executive office.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, 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”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(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 (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a) | Not applicable. |
(b) | Not applicable. |
Item 13. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 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.
(registrant) | First Trust Senior Floating Rate 2022 Target Term Fund |
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | February 8, 2021 |
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 (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | February 8, 2021 |
By (Signature and Title)* | /s/ Donald P. Swade | |
Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Date: | February 8, 2021 |
* Print the name and title of each signing officer under his or her signature.