blwfinal.htm - Generated by SEC Publisher for SEC Filing

UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21349

Name of Fund: BlackRock Limited Duration Income Trust (BLW)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock
Limited Duration Income Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2011

Date of reporting period: 02/28/2011

Item 1 – Report to Stockholders



 

February 28, 2011

Semi-Annual Report (Unaudited)

BlackRock Defined Opportunity Credit Trust (BHL)

BlackRock Diversified Income Strategies Fund, Inc. (DVF)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

BlackRock Limited Duration Income Trust (BLW)

BlackRock Senior Floating Rate Fund, Inc.

BlackRock Senior Floating Rate Fund II, Inc.

Not FDIC Insured • No Bank Guarantee • May Lose Value



Table of Contents

  Page 
Dear Shareholder  3 
Semi-Annual Report:   
Fund Summaries  4 
The Benefits and Risks of Leveraging  16 
Derivative Financial Instruments  17 
Disclosure of Expenses  17 
Fund Financial Statements   
Schedules of Investments  18 
Statements of Assets and Liabilities  48 
Statements of Operations  50 
Statements of Changes in Net Assets  52 
Statements of Cash Flows  55 
Fund Financial Highlights  56 
Fund Notes to Financial Statements  62 
Master Senior Floating Rate LLC Portfolio Summary  74 
Master Senior Floating Rate LLC Financial Statements:   
Schedule of Investments  75 
Statement of Assets and Liabilities  81 
Statement of Operations  82 
Statements of Changes in Net Assets  82 
Statement of Cash Flows  83 
Master Senior Floating Rate LLC Financial Highlights  84 
Master Senior Floating Rate LLC Notes to Financial Statements  85 
Officers and Directors  89 
Additional Information  89 

 

2 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



Dear Shareholder

Over the past 12 months, we have seen a sluggish, stimulus-driven economic recovery at long last gain real traction, accelerate, and transition into a con-
sumption-driven expansion. For the most part, 2010 was plagued with widely fluctuating economic data, but as the year drew to a close, it became clear
that cyclical stimulus had beaten out structural problems as economic data releases generally became more positive and financial markets showed signs
of continuing improvement. Although the sovereign debt crises and emerging market inflation that troubled the global economy in 2010 remain a challenge,
overall investor sentiment considerably improved. Near the end of the period, geopolitical tensions across the Middle East North Africa (“MENA”) region
along with rising oil prices introduced new cause for concern about the future of the global economy. As of this writing, economic news remains fairly
positive although we face additional uncertainties related to the aftermath of the devastating earthquake in Japan, with particular focus on the damage
to nuclear power plants.

In the United States, strength from the corporate sector and increasing consumer spending have been key drivers of economic growth, while the housing
and labor markets have been the heaviest burdens. While housing has yet to show any meaningful sign of improvement, labor statistics have delivered a
mixed bag month after month, but became increasingly encouraging toward the end of the period when the unemployment rate fell to its lowest level
since April 2009.

Global equity markets experienced uneven growth and high volatility over the course of 2010, but ended the year strong. Following a strong start to 2011,
stocks lost their momentum on the back of geopolitical events in the MENA region and a sharp rise in oil prices. Overall, equities posted strong returns
for the
12-month period. US stocks outpaced most international markets and small cap stocks outperformed large caps as investors moved into
higher-risk assets.


Fixed income markets saw yields trend lower over most of 2010, until the fourth quarter brought an abrupt reversal in sentiment and risk tolerance that
drove yields sharply upward (pushing bond prices down) through year end. Improving economic data continued to pressure fixed income yields in 2011;
however, escalating geopolitical risks have acted as a counterweight, restoring relative stability to yield movements. Nevertheless, the yield curve remained
steep and higher-risk sectors outperformed the fixed income market.

The tax-exempt municipal market enjoyed a powerful rally during the period of low interest rates in 2010; however, when the yield trend reversed, the market
was dealt an additional blow as it became evident that the Build America Bond program would expire at year end. In addition, negative headlines regarding
fiscal challenges faced by state and local governments damaged investor confidence and further heightened volatility in the municipal market. Tax-exempt
mutual funds experienced heavy outflows, resulting in wider quality spreads and further downward pressure on municipal bond prices. These headwinds
began to abate as the period came to a close and municipals finally posted gains in February, following a five-month run of negative performance.

Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates
remained low. Yields on money market securities remain near all-time lows.

Total returns as of February 28, 2011  6-month  12-month 
US large cap equities (S&P 500 Index)  27.73%  22.57% 
US small cap equities (Russell 2000 Index)  37.55  32.60 
International equities (MSCI Europe, Australasia, Far East Index)  23.77  20.00 
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)  0.07  0.14 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)  (6.04)  4.76 
US investment grade bonds (Barclays Capital US Aggregate Bond Index)  (0.83)  4.93 
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)  (3.51)  1.72 
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  10.05  17.34 
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.   


While no one can peer into a crystal ball and eliminate the uncertainties presented by the economic landscape and financial markets, BlackRock can offer

investors the next best thing: partnership with the world’s largest asset management firm and a unique global perspective that allows us to identify trends
early and capitalize on market opportunities. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine,
where
you’ll find the most recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder
Perspectives
. As always, we thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the
months and years ahead.


THIS PAGE NOT PART OF YOUR FUND REPORT 3



Fund Summary as of February 28, 2011 BlackRock Defined Opportunity Credit Trust

Investment Objective

BlackRock Defined Opportunity Credit Trust’s (BHL) (the “Fund”) primary investment objective is high current income, with a secondary objective of long-
term capital appreciation. The Fund seeks to achieve its investment objectives by investing substantially all of its assets in loan and debt instruments and
loan-related and debt-related instruments (collectively "credit securities"). The Fund invests, under normal market conditions, at least 80% of its assets in
any combination of the following credit securities: (i) senior secured floating rate and fixed rate loans; (ii) second lien or other subordinated or unsecured
floating rate and fixed rate loans or debt; (iii) credit securities that are rated below investment grade quality; and (iv) investment grade corporate bonds.
The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objectives will be achieved.

Portfolio Management Commentary

How did the Fund perform?

For the six months ended February 28, 2011, the Fund returned 17.57%
based on market price and 8.77% based on net asset value (“NAV”). For
the same period, the Lipper Loan Participation Funds category posted an
average return of 14.91% based on market price and 9.11% based on NAV.
All returns reflect reinvestment of dividends. The Fund moved from a dis-
count to NAV to a premium by period end, which accounts for the difference
between performance based on price and performance based on NAV.
The following discussion relates to performance based on NAV.

What factors influenced performance?

The bank loan sector posted strong returns as risk assets rallied during the
period. Lower-quality sectors and credits outperformed their higher-quality
counterparts and the high yield sector outperformed bank loans. Because
the Fund invests primarily in bank loans, and it held an average of 10%
of its portfolio in corporate bonds during the period, the use of leverage had
a positive impact on returns as these sectors advanced. However, the Fund
maintains a lower level of leverage (at an average amount between 18%
and 23%) than the average level maintained by the leveraged funds in its
Lipper category, which detracted from performance on a relative basis. In
addition, the Fund maintains a relatively conservative portfolio, weighted
toward higher-quality speculative investments, which detracted from
performance as lower quality outperformed during the period.

Conversely, the Fund’s greater allocation to high yield bonds relative to its
Lipper category competitors had a positive impact on performance.

Describe recent portfolio activity.

During the period, the Fund modestly increased its level of risk and use of
leverage as market conditions improved. In particular, the Fund increased
exposure to lower-quality credits and sectors that are more favorably
impacted by rising commodity prices and an improving economy.

Describe portfolio positioning at period end.

At period end, the Fund held 86% of its total portfolio in floating rate loan
interests and 10% in corporate bonds, with the remainder in asset-backed
securities, common stocks and equity equivalents. Cash positions were neg-
ligible for most of the period. The Fund ended the period with leverage at
approximately 21% of its total managed assets.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

4 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



BlackRock Defined Opportunity Credit Trust

Fund Information   
Symbol on New York Stock Exchange (“NYSE”)  BHL 
Initial Offering Date  January 31, 2008 
Yield on Closing Market Price as of February 28, 2011 ($14.69)1  5.39% 
Current Monthly Distribution per Share2  $0.066 
Current Annualized Distribution per Share2  $0.792 
Leverage as of February 28, 20113  21% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 The distribution rate is not constant and is subject to change.
3 Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to borrowings) minus the sum of
liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging
on page 16.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  2/28/11  8/31/10  Change  High  Low 
Market Price  $14.69  $12.86  14.23%  $14.72  $12.81 
Net Asset Value  $14.32  $13.55  5.68%  $14.37  $13.55 

 

The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the Fund’s corporate
bond investments:

Portfolio Composition     
  2/28/11  8/31/10 
Floating Rate Loan Interests  86%  83% 
Corporate Bonds  10  15 
Asset-Backed Securities  3   
Other Interests  1  1 
Common Stocks    1 

 

Credit Quality Allocations4     
  2/28/11  8/31/10 
BBB/Baa  10%  11% 
BB/Ba  36  44 
B  54  44 
CCC/Caa    1 
4 Using the higher of Standard & Poor’s Corporation (“S&P’s”) or Moody’s Investors 
Service, Inc. (“Moody’s”) ratings.     

 

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 5



Fund Summary as of February 28, 2011 BlackRock Diversified Income Strategies Fund, Inc.

Investment Objective

BlackRock Diversified Income Strategies Fund, Inc.’s (DVF) (the “Fund”) investment objective is to provide shareholders with high current income. The Fund
seeks to achieve its investment objective by investing primarily in floating rate debt securities and instruments, including floating rate loans, bonds, certain
preferred securities (including certain convertible preferred securities), notes or other debt securities or instruments which pay a floating or variable rate of
interest until maturity. The Fund considers floating rate debt securities to include fixed rate debt securities held by the Fund where the Fund has entered into
certain derivative transactions at either the portfolio level or with respect to an individual security held by the Fund, including interest rate swap agreements,
in an attempt to convert the fixed rate payments it receives with respect to such securities into floating rate payments. The Fund may invest, under normal
market conditions, a substantial portion of its assets in below investment grade quality securities. The Fund may invest directly in such securities or
syntheti
cally through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Portfolio Management Commentary

How did the Fund perform?

For the six months ended February 28, 2011, the Fund returned 10.13%
based on market price and 8.93% based on NAV. For the same period,
the Lipper Loan Participation Funds category posted an average return of
14.91% based on market price and 9.11% based on NAV. All returns reflect
reinvestment of dividends. The Fund moved from a discount to NAV to a
premium by period end, which accounts for the difference between
performance based on price and performance based on NAV. The
following discussion relates to performance based on NAV.

What factors influenced performance?

The bank loan sector posted strong returns as risk assets rallied during the
period. Lower-quality sectors and credits outperformed their higher-quality
counterparts and the high yield sector outperformed bank loans. Because
the Fund invests primarily in bank loans, and it held an average of 14%
of its portfolio in corporate bonds during the period, the use of leverage had
a positive impact on returns as these sectors advanced. However, the Fund
maintains a lower level of leverage (at an average amount between 20%
and 26%) than the average level maintained by the leveraged funds in its
Lipper category, which detracted from performance on a relative basis. In
addition, the Fund maintains a relatively conservative portfolio, weighted
toward higher-quality speculative investments, which detracted from per-
formance as lower quality outperformed during the period.

Conversely, the Fund’s greater allocation to high yield bonds relative to its
Lipper category competitors had a positive impact on performance.

Describe recent portfolio activity.

During the period, the Fund modestly increased its level of risk and use of
leverage as market conditions improved. In particular, the Fund increased
exposure to lower-quality credits and sectors that are more favorably
impacted by rising commodity prices and an improving economy.

Describe portfolio positioning at period end.

At period end, the Fund held 80% of its total portfolio in floating rate loan
interests and 14% in corporate bonds, with the remainder in asset-backed
securities, common stocks and equity equivalents. Cash positions were neg-
ligible for most of the period. The Fund ended the period with leverage at
approximately 21% of its total managed assets.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

6 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



BlackRock Diversified Income Strategies Fund, Inc.

Fund Information   
Symbol on NYSE  DVF 
Initial Offering Date  January 31, 2005 
Yield on Closing Market Price as of February 28, 2011 ($11.11)1  6.86% 
Current Monthly Distribution per Share2  $0.0635 
Current Annualized Distribution per Share2  $0.7620 
Leverage as of February 28, 20113  21% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 The distribution rate is not constant and is subject to change.
3 Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Fund (including assets attributable to borrowings) minus the sum of liabilities
(other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 16.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  2/28/11  8/31/10  Change  High  Low 
Market Price  $11.11  $10.45  6.32%  $11.75  $10.18 
Net Asset Value  $11.01  $10.47  5.16%  $11.06  $10.47 

 

The following charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the Fund’s corporate bond investments:

Portfolio Composition     
  2/28/11  8/31/10 
Floating Rate Loan Interests  80%  76% 
Corporate Bonds  14  20 
Asset-Backed Securities  3   
Other Interests  2  2 
Common Stocks  1  2 

 

Credit Quality Allocations4     
  2/28/11  8/31/10 
BBB/Baa  8%  4% 
BB/Ba  35  32 
B  40  46 
CCC/Caa  9  11 
CC/Ca    1 
Not Rated  8  6 
4 Using the higher of S&P’s or Moody’s ratings.     

 

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 7



Fund Summary as of February 28, 2011 BlackRock Floating Rate Income Strategies Fund, Inc.

Investment Objective

BlackRock Floating Rate Income Strategies Fund, Inc.’s (FRA) (the “Fund”) investment objective is to provide shareholders with high current income and
such preservation of capital as is consistent with investment in a diversified, leveraged portfolio consisting primarily of floating rate debt securities and
instruments. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in floating rate debt
securities, including floating or variable rate debt securities that pay interest at rates that adjust whenever a specified interest rate changes and/or which
reset on predetermined dates (such as the last day of a month or calendar quarter). The Fund invests a substantial portion of its investments in floating rate
debt securities consisting of secured or unsecured senior floating rate loans that are rated below investment grade. The Fund may invest directly in such
securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Portfolio Management Commentary

How did the Fund perform?

For the six months ended February 28, 2011, the Fund returned 8.59%
based on market price and 9.47% based on NAV. For the same period, the
closed-end Lipper Loan Participation Funds category posted an average
return of 14.91% based on market price and 9.11% based on NAV. All
returns reflect reinvestment of dividends. The Fund's premium to NAV,
which narrowed during the period, accounts for the difference between
performance based on price and performance based on NAV. The
following discussion relates to performance based on NAV.

What factors influenced performance?

The bank loan sector posted strong returns as risk assets rallied during the
period. Lower-quality sectors and credits outperformed their higher-quality
counterparts and the high yield sector outperformed bank loans. Because
the Fund invests primarily in bank loans, and it held an average of 15% of
its portfolio in corporate bonds during the period, the use of leverage had a
positive impact on returns (on an absolute basis) as these sectors
advanced. Holding a greater allocation to high yield bonds relative to its
Lipper category competitors drove the Fund’s outperformance.

The Fund maintains a relatively conservative portfolio, weighted toward
higher-quality speculative investments, which detracted from performance as
lower quality outperformed during the period. In addition, the Fund main-
tains a lower level of leverage (at an average amount between 18% and
22% of its total managed assets) than the average level maintained by
its Lipper category competitors, which detracted from performance on a
relative basis.

Describe recent portfolio activity.

During the period, the Fund modestly increased its level of risk and use of
leverage as market conditions improved. In particular, the Fund increased
exposure to lower-quality credits and sectors that are more favorably
impacted by rising commodity prices and an improving economy.

Describe portfolio positioning at period end.

At period end, the Fund held 81% of its total portfolio in floating rate loan
interests and 15% in corporate bonds, with the remainder in asset-backed
securities, common stocks and equity equivalents. Cash positions were neg-
ligible for most of the period. The Fund ended the period with leverage at
approximately 18% of its total managed assets.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

8 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



BlackRock Floating Rate Income Strategies Fund, Inc.

Fund Information   
Symbol on NYSE  FRA 
Initial Offering Date  October 31, 2003 
Yield on Closing Market Price as of February 28, 2011 ($15.38)1  6.01% 
Current Monthly Distribution per Share2  $0.077 
Current Annualized Distribution per Share2  $0.924 
Leverage as of February 28, 20113  18% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 The distribution rate is not constant and is subject to change.
3 Represents loan outstanding as a percentage of managed assets, which is the total assets of the Fund (including any assets attributable to borrowings) that may be outstanding,
minus the sum of accrued liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits
and Risks of Leveraging on page 16.

The table below summarizes the changes in the Fund’s market price and NAV per share:

  2/28/11  8/31/10  Change  High  Low 
Market Price  $15.38  $14.61  5.27%  $15.84  $14.02 
Net Asset Value  $15.24  $14.36  6.13%  $15.26  $14.36 

 

The following charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the Fund’s corporate bond investments:

Portfolio Composition     
  2/28/11  8/31/10 
Floating Rate Loan Interests  81%  76% 
Corporate Bonds  15  22 
Asset-Backed Securities  3   
Other Interests  1  1 
Common Stocks    1 

 

Credit Quality Allocations4     
  2/28/11  8/31/10 
BBB/Baa  7%  5% 
BB/Ba  36  33 
B  46  50 
CCC/Caa  4  6 
CC/Ca    1 
Not Rated  7  5 
4 Using the higher of S&P’s or Moody’s ratings.     

 

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 9



Fund Summary as of February 28, 2011 BlackRock Limited Duration Income Trust

Investment Objective

BlackRock Limited Duration Income Trust’s (BLW) (the “Fund”) investment objective is to provide current income and capital appreciation. The Fund seeks
to achieve its investment objective by investing primarily in three distinct asset classes:

intermediate duration, investment grade corporate bonds, mortgage-related securities and asset-backed securities and US Government and agency securities;

senior, secured floating rate loans made to corporate and other business entities; and

US dollar-denominated securities of US and non-US issuers rated below investment grade, and to a limited extent, in non-US dollar denominated
securities of non-US issuers rated below investment grade.

The Fund’s portfolio normally has an average portfolio duration of less than five years (including the effect of anticipated leverage), although it may be
longer from time to time depending on market conditions. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Portfolio Management Commentary

How did the Fund perform?

For the six months ended February 28, 2011, the Fund returned 5.33%
based on market price and 8.73% based on NAV. For the same period, the
closed-end Lipper High Current Yield Funds (Leveraged) category posted
an average return of 9.98% based on market price and 12.87% based on
NAV. All returns reflect reinvestment of dividends. The Fund's discount to
NAV, which widened during the period, accounts for the difference between
performance based on price and performance based on NAV. The following
discussion relates to performance based on NAV.

What factors influenced performance?

High yield bonds delivered strong performance as risk assets rallied during
the period. While the Fund’s average allocation to high yield contributed to
performance on an absolute basis, its average allocation to bank loans and
to investment grade credit, both of which sectors underperformed high yield,
hurt performance relative to its Lipper category competitors, which invest pri-
marily in high yield bonds. The Fund maintained leverage at an average
amount between 20% and 22% of its total managed assets, which
detracted from relative performance versus competitors that maintained
higher levels of leverage, as would be expected when markets are advanc-
ing.

Security selection within the Fund’s high yield allocation had a positive
impact on performance, as did a bias toward lower-quality credits. Within
the Fund’s investment grade segment, limited exposure to corporate bonds
and a large allocation to securitized assets proved beneficial. In addition,
the Fund’s relatively modest portfolio duration and exposure to more
credit-sensitive sectors benefited performance as interest rates rose
during the period.

Describe recent portfolio activity.

Over the period, the Fund shifted its overall positioning from a more conser-
vative stance to that which is more consistent with a gradually improving
economy. In particular, the Fund increased exposure to lower-quality credits
and sectors that are more favorably impacted by higher commodity prices
and an improving economy.

Describe portfolio positioning at period end.

At period end, the Fund held 38% of its total portfolio in corporate bonds,
38% in floating rate loan interests, 10% in non-agency mortgage-backed
securities, 8% in U.S. government sponsored agency securities, and 4% in
asset-backed securities. The remainder of the portfolio was invested in tax-
able municipal bonds, equities and equity equivalents, while the Fund’s
cash position was negligible. The Fund ended the period with leverage at
approximately 21% of its total managed assets.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

10 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



BlackRock Limited Duration Income Trust

Fund Information   
Symbol on NYSE  BLW 
Initial Offering Date  July 30, 2003 
Yield on Closing Market Price as of February 28, 2011 ($17.00)1  6.71% 
Current Monthly Distribution per Share2  $0.095 
Current Annualized Distribution per Share2  $1.140 
Leverage as of February 28, 20113  21% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2 A change in the distribution rate was declared on March 1, 2011. The Monthly Distribution per Share was increased to $0.10. The Yield on Closing Market Price, Current Monthly
Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further
change in the future.
3 Represents reverse repurchase agreements outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to borrow-
ing) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and
Risks of Leveraging on page 16.

The table below summarizes the Fund’s market price and net asset value per share:

  2/28/11  8/31/10  Change  High  Low 
Market Price  $17.00  $16.76  1.43%  $17.84  $15.56 
Net Asset Value  $17.58  $16.79  4.71%  $17.58  $16.79 

 

The following unaudited charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the Fund’s corporate
bond and US government securities investments:

Portfolio Composition     
  2/28/11  8/31/10 
Floating Rate Loan Interests  38%  39% 
Corporate Bonds  38  34 
Non-Agency Mortgage-Backed Securities  10  11 
U.S. Government Sponsored Agency Securities  8  7 
Asset-Backed Securities  4  5 
Other Interests  1  1 
Taxable Municipal Bonds  1  1 
Foreign Agency Obligations    2 

 

Credit Quality Allocations4     
  2/28/11  8/31/10 
AAA/Aaa5  17%  18% 
AA/Aa  2  2 
A  5  6 
BBB/Baa  8  8 
BB/Ba  26  30 
B  33  28 
CCC/Caa  7  6 
Not Rated  2  2 

4 Using the higher of S&P’s or Moody’s ratings.
5 Includes US Government Sponsored Agency securities and US Treasury Obligations,
which are deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 11



Fund Summary as of February 28, 2011 BlackRock Senior Floating Rate Fund, Inc.

Investment Objective

BlackRock Senior Floating Rate Fund, Inc.’s (the “Fund”) investment objective is to provide as high a level of current income and such preservation of
capital as is consistent with investment in senior collateralized corporate loans (“corporate loans”) primarily in the form of participation interests, as defined
below, in corporate loans made by banks or other financial institutions. The Fund seeks to achieve its investment objective by investing its assets in the
Master Senior Floating Rate LLC ("Master LLC"), a separate closed-end, non-diversified management investment company. Master LLC may invest in a
corporate loan either by participating as a co-lender at the time the loan is originated or by buying a participation or assignment interest in the corporate
loan from a co-lender or a participant (collectively, “participation interests”). Master LLC invests, under normal market conditions, at least 80% of its assets
in corporate loans or participating in such loans that have floating or variable interest rates and, under normal market conditions, at least 65% of its
assets in floating rate or variable rate loans made to corporate borrowers or participating in such loans. Master LLC may invest directly in such securities
or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Portfolio Management Commentary

How did the Fund perform?

For the six months ended February 28, 2011, through its investment in
the Master LLC, the Fund returned 6.61% based on NAV while the closed-
end Lipper Loan Participation Funds category posted an average NAV return
of 9.11% for the same period. All returns reflect reinvestment of dividends.

What factors influenced performance?

The bank loan sector posted strong returns as risk assets rallied during the
period. Lower-quality sectors and credits outperformed their higher-quality
counterparts and the high yield sector outperformed bank loans. Because
the Master LLC does not employ leverage, the Fund is expected to underper-
form its Lipper category under strong market conditions as the category
includes many leveraged competitors. The Fund performed as expected
relative to its Lipper category as the bank loan and high yield sectors
advanced over the period.

The Master LLC maintains a relatively conservative portfolio, weighted
toward higher-quality credits and loan structures. This strategy had a nega-
tive impact on relative performance as lower quality outperformed during
the period.

Conversely, the Master LLC’s greater allocation to high yield bonds (averag-
ing 11% of the portfolio during the period) relative to the Fund’s Lipper
category competitors had a positive impact on performance as high yield
outperformed the bank loan sector.

The Master LLC frequently held cash committed for pending transactions;
these cash balances did not have a significant impact on performance.

Describe recent portfolio activity.

During the period, the Master LLC modestly increased its level of risk as
market conditions improved. In particular, the Master LLC increased expo-
sure to lower-quality credits and sectors that are more favorably impacted
by rising commodity prices and an improving economy.

Describe portfolio positioning at period end.

At period end, the Master LLC held 88% of its total portfolio in floating
rate loan interests and 12% in corporate bonds.

Effective March 21, 2011, the Fund merged into BlackRock Floating
Rate Income Portfolio, please refer to Notes 1 and 10 of the Notes to
Financial Statements.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

12 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



BlackRock Senior Floating Rate Fund, Inc.

Fund Information1   
Initial Offering Date  November 3, 1989 
Yield based on Net Asset Value as of February 28, 2011 ($7.92)2  3.55% 
Current Monthly Distribution per Share3  $0.021539 
Current Annualized Distribution per Share3  $0.280776 

1 The Fund is a continuously offered closed-end fund that does not trade on an exchange.
2 Yield based on net asset value is calculated by dividing the current annualized distribution per share by the net asset value. Past performance does not guarantee future results.
3 The distribution rate is not constant and is subject to change.

The table below summarizes the change in the Fund’s NAV per share:

  2/28/11  8/31/10  Change  High  Low 
Net Asset Value  $7.92  $7.59  4.35%  $7.92  $7.59 

 

Expense Example for Continuously Offered Closed-End Funds

    Actual      Hypothetical5     
  Beginning  Ending    Beginning  Ending     
  Account Value  Account Value  Expenses Paid  Account Value  Account Value  Expenses Paid  Annualized 
  September 1, 2010       February 28, 2011      During the Period4  September 1, 2010       February 28, 2011       During the Period4  Expense Ratio 
BlackRock Senior Floating               
Rate Fund, Inc.  $1,000.00  $1,066.10  $8.25  $1,000.00  $1,016.82  $8.05  1.61% 

4 Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
Because the Fund is a feeder fund, the expense table reflects the expenses of both the feeder fund and the Master LLC in which it invests.
5 Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent fiscal half year divided by 365.
See “Disclosure of Expenses for Continuously Offered Closed-End Funds” on page 17 for futher information on how expenses were calculated.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 13



Fund Summary as of February 28, 2011 BlackRock Senior Floating Rate Fund II, Inc.

Investment Objective

BlackRock Senior Floating Rate Fund II, Inc.’s (the “Fund”) investment objective is to provide as high a level of current income and such preservation of
capital as is consistent with investment in senior collateralized corporate loans (“corporate loans”) primarily in the form of participation interests, as defined
below, in corporate loans made by banks or other financial institutions. The Fund seeks to achieve its investment objective by investing its assets in the
Master Senior Floating Rate LLC ("Master LLC"), a separate closed-end, non-diversified management investment company. Master LLC may invest in a
corporate loan either by participating as a co-lender at the time the loan is originated or by buying a participation or assignment interest in the corporate
loan from a co-lender or a participant (collectively, “participation interests”). Master LLC invests, under normal market conditions, at least 80% of its assets
in corporate loans or participating in such loans that have floating or variable interest rates and, under normal market conditions, at least 65% of its
assets in floating rate or variable rate loans made to corporate borrowers or participating in such loans. Master LLC may invest directly in such securities
or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Portfolio Management Commentary

How did the Fund perform?

For the six months ended February 28, 2011, through its investment in
the Master LLC, the Fund returned 6.61% based on NAV while the closed-
end Lipper Loan Participation Funds category posted an average NAV return
of 9.11% for the same period. All returns reflect reinvestment of dividends.

What factors influenced performance?

The bank loan sector posted strong returns as risk assets rallied during the
period. Lower-quality sectors and credits outperformed their higher-quality
counterparts and the high yield sector outperformed bank loans. Because
the Master LLC does not employ leverage, the Fund is expected to underper-
form its Lipper category under strong market conditions as the category
includes many leveraged competitors. The Fund performed as expected
relative to its Lipper category as the bank loan and high yield sectors
advanced over the period.

The Master LLC maintains a relatively conservative portfolio, weighted
toward higher-quality credits and loan structures. This strategy had a nega-
tive impact on relative performance as lower quality outperformed during
the period.

Conversely, the Master LLC’s greater allocation to high yield bonds (averag-
ing 11% of the portfolio during the period) relative to the Fund’s Lipper
category competitors had a positive impact on performance as high yield
outperformed the bank loan sector.

The Master LLC frequently held cash committed for pending transactions;
these cash balances did not have a significant impact on performance.

Describe recent portfolio activity.

During the period, the Master LLC modestly increased its level of risk as
market conditions improved. In particular, the Master LLC increased expo-
sure to lower-quality credits and sectors that are more favorably impacted
by rising commodity prices and an improving economy.

Describe portfolio positioning at period end.

At period end, the Master LLC held 88% of its total portfolio in floating
rate loan interests and 12% in corporate bonds.

Effective March 21, 2011, the Fund merged into BlackRock Floating
Rate Income Portfolio, please refer to Notes 1 and 10 of the Notes to
Financial Statements.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

14 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



BlackRock Senior Floating Rate Fund II, Inc.

Fund Information1   
Initial Offering Date  March 26, 1999 
Yield based on Net Asset Value as of February 28, 2011 ($8.58)2  3.88% 
Current Monthly Distribution per Share3  $0.025547 
Current Annualized Distribution per Share3  $0.333023 

1 The Fund is a continuously offered closed-end fund that does not trade on an exchange.
2 Yield based on net asset value is calculated by dividing the current annualized distribution per share by the net asset value. Past performance does not guarantee future results.
3 The distribution rate is not constant and is subject to change.

The table below summarizes the change in the Fund’s NAV per share:

  2/28/11  8/31/10  Change  High  Low 
Net Asset Value  $8.58  $8.22  4.38%  $8.58  $8.22 

 

Expense Example for Continuously Offered Closed-End Funds

    Actual      Hypothetical5     
  Beginning  Ending    Beginning  Ending     
  Account Value  Account Value  Expenses Paid  Account Value  Account Value  Expenses Paid  Annualized 
  September 1, 2010      February 28, 2011     During the Period4  September 1, 2010       February 28, 2011      During the Period4  Expense Ratio 
BlackRock Senior Floating               
Rate Fund II, Inc.  $1,000.00  $1,066.10  $8.56  $1,000.00  $1,016.52  $8.35  1.67% 

4 Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
Because the Fund is a feeder fund, the expense table reflects the expenses of both the feeder fund and the Master LLC in which it invests.
5 Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.
See “Disclosure of Expenses for Continuously Offered Closed-End Funds” on page 17 for futher information on how expenses were calculated.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 15



The Benefits and Risks of Leveraging

BHL, DVF, FRA and BLW may utilize leverage to seek to enhance the yield
and NAV. However, these objectives cannot be achieved in all interest
rate environments.

The Funds may utilize leverage by borrowing through a credit facility, partici-
pation in the TALF, or through entering into reverse repurchase agreements
and treasury roll transactions. In general, the concept of leveraging is based
on the premise that the financing cost of assets to be obtained from lever-
age, which will be based on short-term interest rates, will normally be lower
than the income earned by each Fund on its longer-term portfolio invest-
ments. To the extent that the total assets of each Fund (including the
assets obtained from leverage) are invested in higher-yielding portfolio
investments, each Fund’s shareholders will benefit from the incremental
net income.

The interest earned on securities purchased with the proceeds from lever-
age is paid to shareholders in the form of dividends, and the value of these
portfolio holdings is reflected in the per share NAV. However, in order to
benefit shareholders, the yield curve must be positively sloped; that is,
short-term interest rates must be lower than long-term interest rates. If the
yield curve becomes negatively sloped, meaning short-term interest rates
exceed long-term interest rates, income to shareholders will be lower than if
the Funds had not used leverage.

To illustrate these concepts, assume a Fund’s capitalization is $100 million
and it borrows for an additional $30 million, creating a total value of $130
million available for investment in long-term securities. If prevailing short-
term interest rates are 3% and long-term interest rates are 6%, the yield
curve has a strongly positive slope. In this case, the Fund pays borrowing
costs and interest expense on the $30 million of borrowings based on the
lower short-term interest rates. At the same time, the securities purchased
by the Fund with assets received from the borrowings earn income based
on long-term interest rates. In this case, the borrowing costs and interest
expense of the borrowings is significantly lower than the income earned
on the Fund’s long-term investments, and therefore the shareholders are
the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental net income pickup will be
reduced or eliminated completely. Furthermore, if prevailing short-term inter-
est rates rise above long-term interest rates of 6%, the yield curve has a
negative slope. In this case, the Fund pays interest expense on the higher
short-term interest rates whereas the Fund’s total portfolio earns income
based on lower long-term interest rates.

Furthermore, the value of the Funds’ portfolio investments generally varies
inversely with the direction of long-term interest rates, although other
factors can influence the value of portfolio investments. In contrast, the
redemption value of the Funds’ borrowings does not fluctuate in relation
to interest rates. As a result, changes in interest rates can influence the
Funds’ NAV positively or negatively in addition to the impact on Fund
performance from leverage from borrowings discussed above.

The use of leverage may enhance opportunities for increased income to
the Funds and shareholders, but as described above, it also creates risks
as short or long-term interest rates fluctuate. Leverage also will generally
cause greater changes in the Funds’ NAVs, market prices and dividend
rates than comparable portfolios without leverage. If the income derived
from securities purchased with assets received from leverage exceeds the
cost of leverage, each Fund’s net income will be greater than if leverage
had not been used. Conversely, if the income from the securities purchased
is not sufficient to cover the cost of leverage, each Fund’s net income will
be less than if leverage had not been used, and therefore the amount
available for distribution to shareholders will be reduced. Each Fund
may be required to sell portfolio securities at inopportune times or at dis-
tressed values in order to comply with regulatory requirements applicable
to the use of leverage or as required by the terms of leverage instruments,
which may cause a Fund to incur losses. The use of leverage may limit
each Fund’s ability to invest in certain types of securities or use certain
types of hedging strategies. Each Fund will incur expenses in connection
with the use of leverage, all of which are borne by shareholders and may
reduce income.

Under the Investment Company Act of 1940, the Funds are permitted
to borrow through their credit facility, through participation in the TALF or
entering into reverse repurchase agreements up to 33 1 / 3 % of their total man-
aged assets. As of February 28, 2011, the Funds had outstanding leverage
from borrowings as a percentage of their total managed assets as follows:

  Percent of 
  Leverage 
BHL  21% 
DVF  21% 
FRA  18% 
BLW  21% 

 

16 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



Derivative Financial Instruments

The Funds may invest in various derivative instruments, including swaps,
financial futures contracts, foreign currency exchange contracts and
options, as specified in Note 2 of the Notes to Financial Statements,
which may constitute forms of economic leverage. Such instruments are
used to obtain exposure to a market without owning or taking physical cus-
tody of securities or to hedge market, interest rate, credit, equity and/or
foreign currency exchange rate risks. Such derivative instruments involve
risks, including the imperfect correlation between the value of a derivative
instrument and the underlying asset, possible default of the counterparty
to the transaction or illiquidity of the derivative instrument. The Funds’
ability to use a derivative instrument successfully depends on the invest-
ment advisor’s ability to predict pertinent market movements accurately,
which cannot be assured. The use of derivative instruments may result in
losses greater than if they had not been used, may require a Fund to sell
or purchase portfolio investments at inopportune times or for distressed
values, may limit the amount of appreciation a Fund can realize on an
investment, may result in lower dividends paid to shareholders or may
cause a Fund to hold an investment that it might otherwise sell. The
Funds’ investments in these instruments are discussed in detail in the
Notes to Financial Statements.

Disclosure of Expenses for Continuously Offered Closed-End Funds

Shareholders of BlackRock Senior Floating Rate Fund, Inc. and
BlackRock Senior Floating Rate Fund II, Inc. may incur the following charges:
(a) expenses related to transactions, including early withdrawal fees; and
(b) operating expenses including administration fees, and other Fund
expenses. The examples on the previous pages (which are based on a hypo-
thetical investment of $1,000 invested on September 1, 2010 and held
through February 28, 2011) are intended to assist shareholders both in
calculating expenses based on an investment in each Fund and in compar-
ing these expenses with similar costs of investing in other mutual funds.

The tables provide information about actual account values and actual
expenses. In order to estimate the expenses a shareholder paid during
the period covered by this report, shareholders can divide their account
value by $1,000 and then multiply the result by the number corresponding
to their Fund under the heading entitled “Expenses Paid During the Period.”

The tables also provide information about hypothetical account values and
hypothetical expenses based on each Fund’s actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in these
Funds and other funds, compare the 5% hypothetical example with the 5%
hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the tables are intended to highlight shareholders’
ongoing costs only and do not reflect any transactional expenses, such
as early withdrawal fees. Therefore, the hypothetical examples are useful
in comparing ongoing expenses only, and will not help shareholders deter-
mine the relative total expenses of owning different funds. If these trans-
actional expenses were included, shareholder expenses would have
been higher.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 17



Schedule of Investments February 28, 2011 (Unaudited)
BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Asset-Backed Securities    (000)  Value 
ARES CLO Funds (a)(b):       
Series 2005-10A, Class B, 0.69%, 9/18/17  USD  250  $ 220,000 
Series 2011-16A, Class C, 2.90%, 5/17/21 (c)    500  493,150 
Canaras Summit CLO Ltd., Series 2007-1A, Class B,       
0.78%, 6/19/21 (a)(b)    345  294,816 
Centurion CDO 9 Ltd., Series 2005-9A, Class B,       
1.07%, 7/17/19 (a)(b)    500  411,605 
Flagship CLO, Series 2006-1A, Class B,       
0.64%, 9/20/19 (a)(b)    1,000  825,000 
Fraser Sullivan CLO Ltd., Series 2006-2A, Class B,       
0.70%, 12/20/20 (a)(b)    500  441,875 
Gannett Peak CLO Ltd., Class A2:       
Series 2006-1A, 0.66%, 10/27/20 (a)(b)    380  327,275 
Series 2006-1X, 0.66%, 10/27/20    265  223,263 
Goldman Sachs Asset Management CLO Plc,       
Series 2007-1A, Class B, 0.75%, 8/01/22 (a)(b)    580  487,490 
KKR CLO Ltd., Series 2005-1A, Class B,       
0.75%, 4/26/17 (a)(b)    500  456,250 
LCM LP, Series 8A, Class C, 3.37%, 1/14/21 (a)(b)    300  299,250 
Landmark CDO Ltd., Series 2006-8A, Class B,       
0.66%, 10/19/20 (a)(b)    495  430,571 
MAPS CLO Fund LLC, Series 2005-1A, Class C,       
1.25%, 12/21/17 (a)(b)    260  226,850 
Portola CLO Ltd., Series 2007-1X, Class B1,       
1.76%, 11/15/21    350  323,750 
T2 Income Fund CLO Ltd., Series 2007-1A, Class B,       
0.90%, 7/15/19 (a)(b)    300  257,379 
Total Asset-Backed Securities — 4.4%      5,718,524 
Common Stocks (d)    Shares   
Capital Markets — 0.2%       
E*Trade Financial Corp.    16,300  260,474 
Hotels, Restaurants & Leisure — 0.2%       
BLB Worldwide Holdings, Inc.    21,020  210,200 
Software — 0.2%       
HMH Holdings/EduMedia    53,267  266,335 
Total Common Stocks — 0.6%      737,009 
    Par   
Corporate Bonds    (000)   
Airlines — 0.4%       
Air Canada, 9.25%, 8/01/15 (a)  USD  250  267,500 
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16    271  292,181 
      559,681 
Auto Components — 0.9%       
Delphi International Holdings Unsecured,       
12.00%, 10/06/14    13  14,215 
Icahn Enterprises LP, 7.75%, 1/15/16    1,125  1,161,562 
      1,175,777 
Chemicals — 0.4%       
CF Industries, Inc., 6.88%, 5/01/18    415  458,316 

 

    Par   
Corporate Bonds    (000)  Value 
Commercial Banks — 1.2%       
CIT Group, Inc.:       
7.00%, 5/01/16  USD  180  $ 181,575 
7.00%, 5/01/17    1,390  1,400,425 
      1,582,000 
Commercial Services & Supplies — 0.4%       
AWAS Aviation Capital Ltd., 7.00%, 10/15/16 (a)    476  489,090 
Consumer Finance — 0.4%       
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)    425  456,875 
Containers & Packaging — 0.6%       
Berry Plastics Corp., 8.25%, 11/15/15    700  749,875 
Diversified Financial Services — 1.0%       
Ally Financial, Inc., 2.51%, 12/01/14 (b)    1,025  1,007,221 
FCE Bank Plc, 7.13%, 1/15/13  EUR  50  72,707 
Reynolds Group Issuer, Inc., 6.88%, 2/15/21 (a)  USD  185  185,462 
      1,265,390 
Diversified Telecommunication Services — 0.4%       
ITC Deltacom, Inc., 10.50%, 4/01/16    180  197,550 
Qwest Communications International, Inc., Series B,       
7.50%, 2/15/14    347  352,205 
      549,755 
Electronic Equipment, Instruments & Components — 0.2%     
CDW LLC, 8.00%, 12/15/18 (a)    230  247,250 
Food Products — 0.4%       
B&G Foods, Inc., 7.63%, 1/15/18    300  320,250 
Smithfield Foods, Inc., 10.00%, 7/15/14    177  208,860 
      529,110 
Health Care Providers & Services — 0.2%       
HCA, Inc., 7.25%, 9/15/20    220  237,325 
Health Care Technology — 0.8%       
IMS Health, Inc., 12.50%, 3/01/18 (a)    850  996,625 
Hotels, Restaurants & Leisure — 0.2%       
MGM Resorts International, 11.13%, 11/15/17    240  276,600 
Household Durables — 0.6%       
Beazer Homes USA, Inc., 12.00%, 10/15/17    715  831,188 
Independent Power Producers & Energy Traders — 2.9%       
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (a)  890  965,650 
Energy Future Holdings Corp., 10.00%, 1/15/20 (a)    400  416,541 
Energy Future Intermediate Holding Co. LLC,       
10.00%, 12/01/20    1,325  1,383,104 
NRG Energy, Inc., 7.63%, 1/15/18 (a)    1,000  1,041,250 
      3,806,545 
Media — 1.2%       
Clear Channel Worldwide Holdings, Inc.:       
9.25%, 12/15/17    185  205,350 
Series B, 9.25%, 12/15/17    740  823,250 
UPC Germany GmbH, 8.13%, 12/01/17 (a)    500  536,250 
      1,564,850 
Metals & Mining — 0.7%       
FMG Resources August 2006 Pty Ltd.,       
7.00%, 11/01/15 (a)    385  399,437 
Novelis, Inc., 8.38%, 12/15/17 (a)    430  474,075 
      873,512 

 

Portfolio Abbreviations         
To simplify the listings of portfolio holdings in the  CAD  Canadian Dollar  GO  General Obligation 
Schedules of Investments, the names and descriptions of  EUR  Euro  MSCI  Morgan Stanley Capital International 
many of the securities have been abbreviated according  FKA  Formerly Known As  USD  US Dollar 
to the following list:  GBP  British Pound     
See Notes to Financial Statements.         

 

18 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



Schedule of Investments (continued)
BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Oil, Gas & Consumable Fuels — 0.1%       
Coffeyville Resources LLC, 9.00%, 4/01/15 (a)  USD  126  $ 137,340 
Paper & Forest Products — 0.2%       
Verso Paper Holdings LLC, 11.50%, 7/01/14    200  220,500 
Wireless Telecommunication Services — 1.1%       
Cricket Communications, Inc., 7.75%, 5/15/16    1,125  1,189,688 
Nextel Communications, Inc., Series E, 6.88%, 10/31/13  275  277,234 
      1,466,922 
Total Corporate Bonds — 14.3%      18,474,526 
Floating Rate Loan Interests (b)       
Aerospace & Defense — 3.0%       
DynCorp International, Term Loan, 6.25%, 7/07/16    773  779,344 
Hawker Beechcraft Acquisition Co., LLC:       
Letter of Credit Linked Deposit, 0.20%, 3/26/14    36  32,129 
Term Loan, 2.26% – 2.30%, 3/26/14    600  536,028 
SI Organization, New Tranche B Term Loan,       
4.50%, 11/22/16    875  881,562 
Scitor Corp., Term Loan B, 5.75%, 2/01/17    700  697,375 
TASC, Inc., Tranche A Term Loan, 5.50%, 12/18/14    153  153,287 
TransDigm, Inc., Term Loan (First Lien), 5.25%, 2/14/17    850  855,075 
      3,934,800 
Auto Components — 1.2%       
Allison Transmission, Inc., Term Loan, 3.02%, 8/07/14    729  726,576 
Armored Autogroup, Inc. (FKA Viking Aquisition, Inc.)       
Term Loan B, 6.00%, 11/02/16    520  522,600 
UCI International, Inc., Term Loan, 5.50%, 7/06/17    350  351,203 
      1,600,379 
Automobiles — 0.9%       
Ford Motor Co.:       
Tranche B-1 Term Loan, 3.02%, 12/15/13    1,202  1,201,645 
Tranche B-2 Term Loan, 3.02%, 12/15/13    20  19,631 
      1,221,276 
Biotechnology — 0.5%       
Grifols SA, Term Loan B, 6.00% 10/01/16    600  607,000 
Building Products — 3.5%       
Armstrong World Industries, Inc., Term Loan B,       
5.00%, 5/17/16    625  632,025 
CPG International I, Inc., Term Loan B, 6.00%, 2/03/17    800  802,504 
Goodman Global, Inc., Initial Term Loan (First Lien),       
5.75%, 10/13/16    2,244  2,260,858 
Momentive Performance Materials (Blitz 06-103 GmbH),       
Tranche B-2B Term Loan, 4.36%, 5/05/15  EUR  569  763,625 
      4,459,012 
Capital Markets — 1.9%       
American Capital Ltd., Term Loan B, 7.50%, 12/31/13  USD  220  221,022 
HarbourVest Partners, Term Loan (First Lien),       
6.25%, 11/10/16    988  992,438 
Nuveen Investments, Inc.:       
Extended Term Loan, (First Lien),       
5.50% – 5.81%, 5/13/17    782  779,207 
Non Extended Term Loan (First Lien), 3.30%, 11/13/14  541  524,554 
      2,517,221 
Chemicals — 7.3%       
AZ Chem US, Inc., Term Loan B, 6.75%, 11/18/16    495  499,731 
CF Industries, Inc., Term Loan B-1, 4.25%, 4/05/15    51  51,138 
Chemtura Corp., Term Facility, 5.50%, 8/16/16    750  755,938 
General Chemical Corp., Tranche B Term Loan, 5.00%,       
9/30/15    998  1,012,462 
Matrix Acquisition Corp. (MacDermid, Inc.), Tranche B       
Term Loan, 2.26%, 4/12/14    481  473,596 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Chemicals (concluded)       
Nexeo Solutions LLC, Term Loan B, 5.00%, 8/31/17  USD  575  $ 576,677 
PQ Corp. (FKA Niagara Acquisition, Inc.), Original Term     
Facility (First Lien), 3.52% – 3.56%, 7/30/14    827  813,668 
Rockwood Specialties Group, Inc., Term Loan B,       
3.75%, 2/01/18    800  808,500 
Solutia, Inc., Term Loan, 4.50%, 3/17/17    595  595,573 
Styron Sarl, Term Loan B, 6.00%, 7/27/17    1,200  1,210,800 
Tronox Worldwide LLC, Exit Term Loan, 7.00%, 12/24/15  1,375  1,386,454 
Univar, Inc., Term Loan B, 5.00% 6/30/17    1,200  1,204,126 
      9,388,663 
Commercial Banks — 1.4%       
CIT Group, Inc., Tranche 3 Term Loan, 6.25%, 8/11/15  1,830  1,853,256 
Commercial Services & Supplies — 5.0%       
ARAMARK Corp.:       
Letter of Credit - 1 Facility, 0.11%, 1/26/14    9  9,357 
Letter of Credit - 2 Facility, 0.11%, 7/26/16    14  13,891 
US Term Loan, 2.18%, 1/26/14    116  116,148 
US Term Loan B, 3.55%, 7/26/16    211  211,226 
AWAS Finance Luxembourg Sarl, Loan,       
7.75%, 6/10/16    242  247,990 
Adesa, Inc. (KAR Holdings, Inc.), Initial Term Loan,       
3.02%, 10/21/13    306  305,056 
Advanced Disposal Services, Inc., Term Loan (First Lien),     
6.00%, 1/14/15    396  398,475 
Altegrity, Inc., (FKA US Investigations Services, Inc.)       
Tranche D Term Loan, 7.75%, 2/21/15    746  761,175 
Casella Waste Systems, Inc., Term Loan B,       
7.00%, 4/09/14    556  555,609 
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16    825  832,071 
Diversey, Inc. (FKA Johnson Diversey, Inc.), Tranche B       
Dollar Term Loan, 5.25%, 11/24/15    429  428,958 
Protection One, Inc., Term Loan, 6.00%, 6/04/16    464  464,854 
Quad/Graphics, Inc., Term Loan, 5.50%, 4/20/16    274  272,371 
Synagro Technologies, Inc., Term Loan (First Lien),       
2.27%, 4/02/14    972  904,232 
Volume Services America, Inc. (Centerplate),       
Term Loan B, 10.50% – 10.75%, 8/24/16    499  503,528 
West Corp., Term Loan B, 4.53% – 4.71%, 7/15/16    400  402,426 
      6,427,367 
Communications Equipment — 1.9%       
Avaya, Inc. Term Loan B:       
3.06%, 10/24/14    558  540,816 
4.81%, 10/24/17    909  890,887 
CommScope, Inc., Term Loan B, 5.00%, 1/06/18    1,000  1,014,583 
      2,446,286 
Construction & Engineering — 0.6%       
Safway Services, LLC, First Out Tranche Loan,       
9.00%, 12/18/17    750  750,000 
Construction Materials — 0.3%       
Fairmount Minerals Ltd., Tranche B Term Loan,       
6.25% – 6.75%, 8/05/16    404  408,494 
Consumer Finance — 1.4%       
Springleaf Financial Funding Co. (FKA AGFS Funding Co.),     
Term Loan, 7.25%, 4/21/15    1,800  1,816,020 
Containers & Packaging — 1.3%       
Anchor Glass Container Corp., Term Loan (First Lien),       
6.00%, 3/02/16    171  171,162 
Berry Plastics Holding Corp., Term Loan C,       
2.29% – 2.31%, 4/03/15    506  491,568 
Graham Packaging Co., LP, Term Loan D, 6.00%, 9/16/16  998  1,005,160 
      1,667,890 
Diversified Consumer Services — 3.5%       
Coinmach Laundry Corp., Delayed Draw Term Loan,       
3.26%, 11/14/14    246  231,491 
Coinmach Service Corp., Term Loan, 3.31%, 11/14/14  1,457  1,366,049 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 19



Schedule of Investments (continued)
BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Diversified Consumer Services (concluded)       
Laureate Education:       
Closing Date Term Loan, 3.55%, 8/17/14  USD  739  $ 723,836 
Delayed Draw Term Loan, 3.55%, 8/15/14    111  108,368 
Series A New Term Loan, 7.00%, 8/15/14    1,125  1,131,562 
ServiceMaster Co.:       
Closing Date Term Loan, 2.76% – 2.81%, 7/24/14    928  913,024 
Delayed Draw Term Loan, 2.77%, 7/24/14    92  90,924 
      4,565,254 
Diversified Financial Services — 2.6%       
MSCI, Inc., Term Loan B, 4.75%, 6/01/16    761  764,667 
Reynolds Group Holdings, Inc., Term Loan E,       
4.25%, 2/09/18    2,000  2,010,416 
Whitelabel IV SA (Ontex):       
Facility B1, 6.75%, 8/11/17  EUR  151  210,384 
Facility B2, 6.75%, 8/11/17    249  348,157 
      3,333,624 
Diversified Telecommunication Services — 3.0%       
Hawaiian Telcom Communications, Inc., Term Loan,       
9.00%, 10/28/15  USD  655  665,975 
Integra Telecom Holdings, Inc., Term Loan,       
9.25%, 4/15/15    821  830,725 
Level 3 Financing, Inc.:       
Incremental Tranche A Term Loan,       
2.55%, 3/13/14    1,500  1,462,500 
Term Loan B, 11.50%, 3/13/14    125  134,063 
US Telepacific Corp., Term Loan B, 5.75%, 2/18/17    750  754,219 
      3,847,482 
Electric Utilities — 1.1%       
New Development Holdings LLC, Term Loan,       
7.00%, 7/03/17    1,387  1,400,924 
Electronic Equipment, Instruments & Components — 1.7%     
CDW LLC (FKA CDW Corp.):       
Extended Term Loan B, 3.51%, 7/15/17    495  494,615 
Non Extended Term Loan, 4.26%, 10/10/14    685  683,478 
Flextronics International Ltd., Closing Date Loan B,       
2.51%, 10/01/12    434  432,787 
Matinvest 2 SAS/Butterfly Wendel US, Inc.       
(Deutsche Connector):       
Facility B-2, 3.46%, 6/22/14    319  307,817 
Facility C-2, 4.21%, 6/22/15    268  258,514 
      2,177,211 
Energy Equipment & Services — 0.8%       
MEG Energy Corp., Tranche D Term Loan,       
6.00%, 4/03/16    967  976,040 
Food & Staples Retailing — 3.1%       
AB Acquisitions UK Topco 2 Ltd. (FKA Alliance Boots),       
Facility B1, 3.58%, 7/09/15  GBP  900  1,410,045 
Bolthouse Farms, Inc., Term Loan (First Lien),       
5.50% – 5.75%, 2/11/16  USD  478  481,091 
Pilot Travel Centers LLC, Initial Tranche B Term Loan,       
5.25%, 6/30/16    858  865,645 
Rite Aid Corp., Term Loan B, 6.00%, 7/09/14    219  219,278 
U.S. Foodservice, Inc., Term Loan B, 2.76%, 7/03/14    1,023  987,932 
      3,963,991 
Food Products — 6.5%       
Advance Pierre Foods, Term Loan (Second Lien):       
7.00%, 9/29/16    958  964,183 
11.25%, 9/29/17    500  512,500 
CII Investment, LLC (FKA Cloverhill):       
Delayed Draw Term Loan, 8.50%, 10/14/14    140  139,015 
Term Loan A, 8.50%, 10/14/14    427  422,464 
Term Loan B, 8.50%, 10/14/14    519  513,808 
Del Monte Corp., Term Loan B, 4.50%, 2/01/18    3,200  3,220,000 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Food Products (concluded)       
Green Mountain Coffee Roasters, Inc., Term Loan B       
Facility, 5.50%, 11/09/16  USD  400  $ 402,625 
Michael Foods Group, Inc. (FKA M-Foods Holdings, Inc.),       
Term Loan B, 4.25%, 2/25/18    482  482,484 
Michaels Stores, Inc., Term Loan B, 4.25%, 2/28/18    55  55,000 
Pinnacle Foods Finance LLC:       
Term Loan B, 2.76%, 4/02/14    135  134,494 
Tranche D Term Loan, 6.00%, 4/02/14    532  535,945 
Solvest, Ltd. (Dole):       
Tranche B-1 Term Loan, 5.00% – 5.50%, 3/02/17    282  284,059 
Tranche C-1 Term Loan, 5.00% – 5.50%, 3/02/17    701  705,208 
      8,371,785 
Health Care Equipment & Supplies — 0.9%       
Biomet, Inc., Dollar Term Loan, 3.26% – 3.30%, 3/25/15  201  200,342 
DJO Finance LLC (FKA ReAble Therapeutics Finance LLC),       
Term Loan, 3.26%, 5/20/14    339  336,865 
Fresenius SE:       
Tranche C-1 Dollar Term Loan, 4.50%, 9/10/14    415  417,101 
Tranche C-2 Term Loan, 4.50%, 9/10/14    226  227,096 
      1,181,404 
Health Care Providers & Services — 6.8%       
CHS/Community Health Systems, Inc.:       
Delayed Draw Term Loan, 2.51% – 2.56%, 7/25/14    54  53,679 
Extended Term Loan, 3.76% – 3.81%, 1/25/17    442  442,755 
Non Extended Term Loan, 2.51% – 2.56%, 7/25/14    1,058  1,049,453 
ConvaTec, Inc., Dollar Term Loan, 5.75%, 12/20/16    600  602,750 
DaVita, Inc., Tranche B Term Loan, 4.50%, 10/20/16    900  906,422 
HCA, Inc., Tranche A-1 Term Loan, 1.55%, 11/16/12    1,505  1,496,840 
Harden Healthcare, Inc.:       
Tranche A Additional Term Loan, 7.75%, 3/02/15    570  558,600 
Tranche A Term Loan, 8.50%, 2/22/15    360  352,889 
inVentiv Health, Inc. (FKA Ventive Health, Inc.):       
Term Loan B, 4.75%, 7/31/16    1,264  1,269,354 
Term Loan B2, 4.75%, 8/04/16    167  167,396 
Term Loan B2, 6.50%, 8/04/16    333  334,583 
Renal Advantage Holdings, Inc., Tranche B Term Loan,       
5.75%, 12/03/16    600  608,250 
Vanguard Health Holding Co. II, LLC (Vanguard Health       
Systems, Inc.), Initial Term Loan, 5.00%, 1/29/16    913  919,404 
      8,762,375 
Health Care Technology — 1.2%       
IMS Health, Inc., Tranche B Dollar Term Loan,       
5.25%, 2/26/16    957  965,289 
MedAssets, Inc., Term Loan B, 5.25%, 11/15/16    600  604,500 
      1,569,789 
Hotels, Restaurants & Leisure — 8.9%       
BLB Management Services, Inc., (Wembly, Inc.)       
Loan (Exit), 8.50%, 11/05/15    610  613,835 
Boyd Gaming Corp., Term Loan A, 3.81%, 12/31/15    325  321,074 
Dunkin' Brands, Inc., Term Loan B, 4.25%, 11/09/17    1,100  1,107,556 
Gateway Casinos & Entertainment, Ltd., Term Loan B,       
6.50% – 7.50%, 5/12/16  CAD  1,173  1,212,114 
Harrah's Operating Co., Inc.:       
Term Loan B-1, 3.30%, 1/28/15  USD  175  162,483 
Term Loan B-2, 3.30%, 1/28/15    145  134,332 
Term Loan B-3, 3.30%, 1/28/15    3,017  2,801,458 
Term Loan B-4, 9.50%, 10/31/16    268  283,476 
Penn National Gaming, Inc., Term Loan B,       
2.01% – 2.06%, 10/03/12    566  564,623 
Seaworld Parks & Entertainment, Inc. (FKA SW       
Aquisitions Co., Inc.) Term B Loan, 4.00%, 8/17/17    1,039  1,041,523 
Sea World, Term Loan B, 4.00%, 8/16/17    361  362,442 
Six Flags Theme Parks, Inc., Tranche B Term Loan       
(First Lien), 5.25% – 5.50%, 6/30/16    822  831,655 
Travelport LLC (FKA Travelport, Inc.), Extended Delayed       
Draw Term Loan, 4.96%, 8/21/15    219  212,665 

 

See Notes to Financial Statements.

20 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



Schedule of Investments (continued)
BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Hotels, Restaurants & Leisure (concluded)       
Universal City Development Partners Ltd., Term Loan,       
5.50%, 11/16/14  USD  496  $ 501,351 
VML US Finance LLC (FKA Venetian Macau):       
New Project Term Loan, 4.79%, 5/27/13    275  274,943 
Term B Delayed Draw Project Loan, 4.79%, 5/25/12  411  411,066 
Term B Funded Project Loan, 4.79%, 5/27/13    716  716,867 
      11,553,463 
Household Durables — 1.1%       
Visant Corp. (FKA Jostens), Tranche B Term Loan,       
7.00%, 12/20/16    1,398  1,404,499 
IT Services — 4.6%       
Ceridian Corp., US Term Loan, 3.26%, 11/09/14    796  783,628 
EVERTEC, Inc., Term Loan B, 7.00%, 8/20/16    273  275,326 
First Data Corp.:       
Initial Tranche B-1 Term Loan, 3.01%, 9/24/14    1,255  1,188,115 
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14    749  709,337 
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14    1,652  1,563,733 
TransUnion LLC, Replacement Term Loan, 4.75%, 2/03/18  1,468  1,476,261 
      5,996,400 
Independent Power Producers & Energy Traders — 0.9%     
Texas Competitive Electric Holdings Co., LLC (TXU), Initial     
Tranche B-3 Term Loan, 3.76% – 3.80%, 10/10/14  1,447  1,216,408 
Industrial Conglomerates — 1.7%       
Sequa Corp., Term Loan, 3.56%, 12/03/14    888  878,597 
Tomkins Plc, Term Loan A, 4.25%, 9/16/16    1,283  1,293,229 
      2,171,826 
Insurance — 0.9%       
CNO Financial Group, Inc., Term Loan, 7.50%, 9/30/16  1,200  1,207,000 
Internet & Catalog Retail — 0.1%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/26/14  179  179,086 
Machinery — 0.3%       
Navistar Financial Corp., Term Loan B, 4.55%, 12/16/12  375  373,594 
Marine — 0.3%       
Horizon Lines, LLC:       
Revolving Loan, 3.31%, 8/08/12    246  228,439 
Term Loan, 3.31%, 8/08/12    134  127,782 
      356,221 
Media — 21.8%       
Acosta, Inc., Term Loan, 4.75%, 2/03/18    1,100  1,108,250 
Affinion Group, Inc., Tranche B Term Loan:       
5.00%, 10/09/16    744  748,097 
5.00%, 10/31/16    300  301,125 
Atlantic Broadband Finance, LLC, Term Loan B,       
5.00%, 11/12/15    458  458,383 
Bresnan Telecommunications Co. LLC, Term Loan,       
4.50%, 11/30/17    1,450  1,458,861 
Cengage Learning Acquisitions, Inc. (Thomson Learning):     
Term Loan, 2.55%, 7/03/14    1,496  1,439,655 
Tranche 1 Incremental Term Loan, 7.50%, 7/03/14  375  376,736 
Cequel Communications, LLC, New Term Loan,       
2.26%, 11/05/13    531  529,518 
Charter Communications Operating, LLC:       
Term Loan B, 7.25%, 3/06/14    181  182,634 
Term Loan C, 3.56%, 9/06/16    1,610  1,613,589 
Clarke American Corp., Term Facility B, 2.80%, 6/30/14  616  587,704 
FoxCo Acquisition Sub, LLC, Term Loan, 7.50%, 7/14/15  648  647,069 
Getty Images, Inc., Initial Term Loan B, 5.25%, 10/29/16  998  1,009,657 
HMH Publishing Co., Ltd., Tranche A Term Loan,       
6.01%, 6/12/14    614  583,504 
Intelsat Jackson Holdings S.A. (FKA Intelsat Jackson       
Holdings Ltd.), Tranche B Term Loan, 5.25%, 3/07/18  3,000  3,020,157 
Interactive Data Corp., Term B Loan, 4.75%, 2/08/18  1,250  1,260,267 
Knology, Inc., Term Loan B, 4.00%, 8/31/17    550  553,437 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):       
Facility B1, 3.68%, 6/28/15  EUR  460  583,687 
Facility C1, 3.93%, 6/30/16    460  583,687 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Media (concluded)       
Mediacom Illinois, LLC (FKA Mediacom       
Communications, LLC):       
Tranche D Term Loan, 5.50%, 3/31/17  USD  199  $ 200,236 
Tranche E Term Loan, 4.50%, 10/23/17    498  497,189 
Newsday, LLC:       
Fixed Rate Term Loan, 10.50%, 8/01/13    800  850,500 
Floating Rate Term Loan, 6.55%, 8/01/13    500  508,125 
Nielsen Finance LLC:       
Class A Dollar Term Loan, 2.26%, 8/09/13    25  25,312 
Class B Dollar Term Loan, 4.01%, 5/01/16    1,147  1,152,634 
Sinclair Television Group, Inc., New Tranche B Term Loan,       
5.50%, 10/29/15    409  413,523 
Springer Science+Business Media SA, Facility A1,       
6.75%, 7/01/16  EUR  1,100  1,533,133 
Sunshine Acquisition Ltd. (FKA HIT Entertainment),       
Term Facility, 5.56%, 6/01/12  USD  1,018  995,912 
UPC Broadband Holding B.V., Term U, 4.88%, 12/31/17 EUR  630  866,971 
Univision Communications, Inc., Extended First Lien       
Term Loan, 4.52%, 3/31/17  USD  1,054  1,025,461 
Virgin Media Investment Holdings Ltd., Facility B,       
4.53%, 12/31/15  GBP  750  1,219,125 
Weather Channel, Term Loan B, 4.25%, 2/01/17  USD  1,150  1,160,637 
Yell Group Plc/Yell Finance (UK) Ltd., Facility A3,       
2.76%, 8/09/11    633  613,828 
      28,108,603 
Metals & Mining — 1.5%       
Euramax International, Inc., Domestic Term Loan:       
10.00%, 6/29/13    244  234,759 
14.00%, 6/29/13    237  228,546 
Novelis Corp., Term Loan, 5.25%, 12/01/16    1,400  1,416,500 
      1,879,805 
Multi-Utilities — 0.1%       
FirstLight Power Resources, Inc. (FKA NE Energy, Inc.):       
Synthetic Letter of Credit, 0.16%, 11/01/13    4  3,970 
Term B Advance (First Lien), 2.81%, 11/01/13    196  195,221 
      199,191 
Multiline Retail — 2.5%       
Dollar General Corp., Tranche B-2 Term Loan,       
3.01%, 7/07/14    316  315,687 
Hema Holding BV, Facility D, 5.91%, 1/01/17  EUR  1,800  2,440,455 
The Neiman Marcus Group, Inc., Tranche B-2 Term Loan,       
4.30%, 4/06/16  USD  521  523,415 
      3,279,557 
Oil, Gas & Consumable Fuels — 1.4%       
EquiPower Resources Holdings, LLC, Term Loan B,       
5.75%, 1/11/18    650  654,875 
Obsidian Natural Gas Trust, Term Loan,       
7.00%, 11/30/15    1,086  1,113,348 
      1,768,223 
Paper & Forest Products — 0.4%       
Georgia-Pacific LLC, Term Loan B, 2.30%, 12/23/12    548  547,981 
Personal Products — 1.1%       
NBTY, Inc., Term Loan B:       
6.25%, 9/20/17    800  808,166 
4.75%, 10/01/17    590  590,000 
      1,398,166 
Pharmaceuticals — 1.3%       
Axcan Intermediate Holdings, Inc., Term Loan,       
5.50%, 2/03/17    667  668,333 
Warner Chilcott Corp.:       
Additional Term Loan, 6.25%, 4/30/15    197  198,263 
Delayed Draw Term Loan B, 6.25%, 4/30/15    246  247,630 
Term Loan A, 6.00%, 10/30/14    435  434,785 
Term Loan B-1, 6.25%, 4/30/15    149  149,727 
Term Loan B-3, 6.50%, 2/20/16    5  5,375 
      1,704,113 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 21



Schedule of Investments (continued)
BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Professional Services — 1.7%       
Booz Allen Hamilton, Inc., Tranche B Term Loan,       
4.00%, 8/01/17  USD 1,325  $ 1,337,588 
Fifth Third Processing Solutions, LLC, Term Loan B       
(First Lien), 5.50%, 10/21/16    800  806,200 
      2,143,788 
Real Estate Investment Trusts (REITs) — 0.1%       
iStar Financial, Inc., Term Loan (Second Lien),       
1.76%, 6/28/11    100  98,625 
Real Estate Management & Development — 1.8%       
Realogy Corp.:       
Exit Term Loan, 3.29%, 10/16/16    275  265,203 
Initial Term Loan B, 4.56%, 10/10/13    201  192,971 
Synthetic Letter of Credit, 4.51%, 10/10/13    24  22,868 
Term Loan B, 4.56%, 10/16/16    1,754  1,682,067 
Term Loan C, 4.51%, 10/16/16    128  122,703 
      2,285,812 
Road & Rail — 0.2%       
Transtar Industries, Term Loan (First Lien), 6.25%, 12/07/16  225  228,375 
Semiconductors & Semiconductor Equipment — 0.7%       
Freescale Semiconductor, Inc., Term Loan B,       
4.51%, 12/01/16    443  442,383 
Microsemi Corp., Term Loan B, 5.00%, 10/25/17    500  501,250 
      943,633 
Software — 1.1%       
Rovi Corp., Term Loan B, 4.00%, 2/01/18    450  454,500 
Telcordia Technologies, Inc., Term Loan, 6.75%, 4/30/16    596  598,850 
Vertafore, Inc., New Term Loan B, 5.25%, 7/29/16    310  312,325 
      1,365,675 
Specialty Retail — 4.2%       
Burlington Coat Factory Warehouse Corp., Term Loan B,       
6.25%, 2/18/17    450  451,500 
Gymboree Corp., Term Loan B, 5.00%, 2/11/18    650  651,950 
J. Crew Group, Inc., Term Loan B, 5.25%, 2/01/18    1,300  1,300,000 
Matalan Finance Plc, Term Facility, 5.61%, 3/24/16  GBP  277  448,259 
Michaels Stores, Inc.:       
Term Loan B-1, 2.56%, 10/31/13  USD  334  333,231 
Term Loan B-2, 4.81% – 4.87%, 7/31/16    231  232,697 
Petco Animal Supplies, Inc., Term Loan B,       
4.75%, 11/24/17    1,100  1,100,000 
Toys 'R' Us Delaware, Inc., Initial Loan, 6.00%, 8/17/16    866  872,007 
      5,389,644 
Textiles, Apparel & Luxury Goods — 0.4%       
Philips Van Huesen Corp., US Tranche B Term Loan,       
5.25%, 5/06/16    541  543,547 
Wireless Telecommunication Services — 1.8%       
Digicel International Finance Ltd., US Term Loan       
(Non-Rollover), 2.81%, 3/30/12    704  695,064 
MetroPCS Wireless, Inc., Tranche B-2 Term Loan,       
3.81%, 11/03/16    773  776,230 
Vodafone Americas Finance 2 Inc., Initial Loan,       
6.88%, 7/30/15    776  803,675 
      2,274,969 
Total Floating Rate Loan Interests — 122.3%      157,865,747 
  Beneficial   
  Interest   
Other Interests (e)    (000)  Value 
Auto Components — 1.0%       
Delphi Debtor-in-Possession Holding Co. LLP,       
Class B Membership Interests    —(f)  $ 1,282,194 
Total Other Interests — 1.0%      1,282,194 
Total Long-Term Investments       
(Cost — $178,235,192) — 142.6%      184,078,000 

 

Short-Term Securities  Shares  Value 
BlackRock Liquidity Funds, TempFund, Institutional     
Class, 0.15%, (g)(h)  4,517,571  $    4,517,571 
Total Short-Term Securities     
(Cost — $4,517,571) — 3.5%    4,517,571 
Total Investments (Cost — $182,752,763*) — 146.1%    188,595,571 
Liabilities in Excess of Other Assets — (46.1%)    (59,524,659) 
Net Assets — 100.0%    $129,070,912 


* The cost and unrealized appreciation (depreciation) of investments as of

February 28, 2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $182,752,213 
Gross unrealized appreciation  $    6,512,224 
Gross unrealized depreciation  (668,866) 
Net unrealized appreciation  $    5,843,358 


(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(b) Variable rate security. Rate shown is as of report date.
(c) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
    Appreciation 
Counterparty  Value  (Depreciation) 
Bank of America & Co.  $ 493,150   


(d) Non-income producing security.

(e) Other interests represent beneficial interest in liquidation trusts and other reorgani-
zation entities and are non-income producing.
(f) Amount is less than $1,000.
(g) Investments in companies considered to be an affiliate of the Fund during the
period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
as amended, were as follows:

  Shares Held at  Net  Shares Held at   
Affiliate  August 31, 2010  Activity  February 28, 2011  Income 
BlackRock Liquidity       
Funds, TempFund,       
Institutional Class 1,172,197  3,345,374  4,517,571  $2,102 


(h) Represents the current yield as of report date.

For Fund compliance purposes, the Fund’s industry classifications refer to any one
or more of the industry sub-classifications used by one or more widely recognized
market indexes or rating group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine such
industry sub-classifications for reporting ease.
Foreign currency exchange contracts as of February 28, 2011 were as follows:

            Unrealized 
Currency    Currency    Settlement                   Appreciation 
Purchased    Sold  Counterparty  Date  (Depreciation) 
USD  1,175,902  CAD  1,166,000  Citibank NA  4/14/11  $ (23,058) 
USD  2,675,638  GBP  1,702,500  Citibank NA  4/14/11  (90,878) 
EUR  297,000  USD  402,890  UBS AG  4/27/11  6,661 
USD  57,230  EUR  42,500  Citibank NA  4/27/11  (1,376) 
USD  7,534,050  EUR  5,508,000  Royal Bank     
        of Scotland  4/27/11  (61,263) 
Total            $ (169,914) 


Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical or
similar assets or liabilities in markets that are not active, inputs other than quoted
prices that are observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and default
rates) or other market-corroborated inputs)

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



Schedule of Investments (concluded)
BlackRock Defined Opportunity Credit Trust (BHL)

Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund's own assumptions used in determining the fair value of investments
and derivatives)

The inputs or methodologies used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about the
Fund's policy regarding valuation of investments and derivatives and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of February 28, 2011 in deter-
mining the fair valuation of the Fund's investments and derivatives:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in         
Securities:         
Long-Term         
Investments:         
Asset-Backed         
Securities    $ 1,721,646  $ 3,996,878  $ 5,718,524 
Common Stocks .  $ 260,474    476,535  737,009 
Corporate Bonds.    18,460,311  14,215  18,474,526 
Floating Rate         
Loan Interests    141,373,620  16,492,127  157,865,747 
Other Interests    1,282,194    1,282,194 
Short-Term         
Securities  4,517,571      4,517,571 
Unfunded Loan         
Commitments .    26,074  1,656  27,730 
Liabilities:         
Unfunded Loan         
Commitments .      (4,560)  (4,560) 
Total  $ 4,778,045  $162,863,845  $ 20,976,851  $188,618,741 

 

Derivative Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Foreign currency         
exchange         
contracts  $ 6,661    $ 6,661 
Liabilities:         
Foreign currency         
exchange         
contracts    (176,575)     (176,575) 
Total  $ (169,914)    $ (169,914) 

1 Derivative financial instruments are foreign currency exchange contracts. Foreign
currency exchange contracts are valued at the unrealized appreciation/depreci-
ation on the instrument.

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

  Asset-Backed  Common  Corporate  Floating Rate  Unfunded Loan   
  Securities  Stocks  Bonds  Loan Interests  Commitments  Total 
Assets:             
Balance, as of August 31, 2010    $ 270,181  $ 12,664  $20,437,083    $20,719,928 
Accrued discounts/premiums  $ 14,544    981  238,946    254,471 
Net realized gain (loss)        136,631    136,631 
Net change in unrealized appreciation/depreciation2  (451,694)  17,481  570  845,429  $ 1,656  413,442 
Purchases  4,434,028  188,873    11,158,794    15,781,695 
Sales        (12,465,469)    (12,465,469) 
Transfers in3        1,366,049    1,366,049 
Transfers out3        (5,225,336)    (5,225,336) 
Balance, as of February 28, 2011  $ 3,996,878  $ 476,535  $ 14,215  $16,492,127  $ 1,656  $20,981,411 

2 Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in the unrealized appreciation/depreciation on the
securities still held on February 28, 2011 was $(148,175).
3 The Fund’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.
The following is a reconciliation of Level 3 derivative financial instruments for which
significant unobservable inputs were used in determining fair value:

  Unfunded Loan 
  Commitments 
Liabilities:   
Balance, as of August 31, 2010  $ (46,743) 
Accrued discounts/premiums   
Net realized gain (loss)   
Net change in unrealized appreciation/depreciation4  42,183 
Purchases   
Sales   
Transfers in5   
Transfers out5   
Balance, as of February 28, 2011  $ (4,560) 

4 Included in the related net change in unrealized appreciation/depreciation in
the Statements of Operations. The change in unrealized appreciation/deprecia-
tion on securities still held at February 28, 2011 was $42,183.
5 The Fund’s policy is to recognize transfers in and transfers out as of the end of
the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 23



Schedule of Investments February 28, 2011 (Unaudited)
BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

  Par   
Asset-Backed Securities  (000)  Value 
ARES CLO Funds (a)(b):     
Series 2005-10A, Class B, 0.69%, 9/18/17  USD 250  $ 220,000 
Series 2011-16A, Class C, 2.90%, 5/17/21 (c)  500  493,150 
Canaras Summit CLO Ltd., Series 2007-1A, Class B,     
0.78%, 6/19/21 (a)(b)  365  311,907 
Centurion CDO 9 Ltd., Series 2005-9A, Class B,     
1.07%, 7/17/19 (a)(b)  500  411,605 
Flagship CLO, Series 2006-1A, Class B,     
0.64%, 9/20/19 (a)(b)  1,000  825,000 
Fraser Sullivan CLO Ltd., Series 2006-2A, Class B,     
0.70%, 12/20/20 (a)(b)  500  441,875 
Gannett Peak CLO Ltd., Class A2:     
Series 2006-1A, 0.66%, 10/27/20 (a)(b)  405  348,806 
Series 2006-1X, 0.66%, 10/27/20  280  235,900 
KKR CLO Ltd., Series 2005-1A, Class B,     
0.75%, 4/26/17 (a)(b)  500  456,250 
LCM LP, Series 8A, Class C, 3.37%, 1/14/21 (a)(b)  350  349,125 
Landmark CDO Ltd., Series 2006-8A, Class B,     
0.66%, 10/19/20 (a)(b)  525  456,666 
MAPS CLO Fund LLC, Series 2005-1A, Class C,     
1.25%, 12/21/17 (a)(b)  275  239,937 
Portola CLO Ltd., Series 2007-1X, Class B1,     
1.76%, 11/15/21  370  342,250 
T2 Income Fund CLO Ltd., Series 2007-1A, Class B,     
0.90%, 7/15/19 (a)(b)  320  274,538 
Total Asset-Backed Securities — 4.0%    5,407,009 
Common Stocks (d)  Shares   
Capital Markets — 0.1%     
E*Trade Financial Corp.  14,300  228,514 
Chemicals — 0.0%     
Wellman Holdings, Inc.  1,613  81 
Construction Materials — 0.1%     
Nortek, Inc.  1,570  69,865 
Electrical Equipment — 0.0%     
Medis Technologies Ltd.  176,126  3,699 
Hotels, Restaurants & Leisure — 0.0%     
Buffets Restaurants Holdings, Inc.  688  2,924 
Metals & Mining — 0.1%     
Euramax International  468  123,887 
Paper & Forest Products — 0.8%     
Ainsworth Lumber Co. Ltd. (a)  349,782  1,155,679 
Software — 0.3%     
Bankruptcy Management Solutions, Inc.  536  1,877 
HMH Holdings/EduMedia  45,526  227,630 
TiVo, Inc.  13,755  141,401 
    370,908 
Total Common Stocks — 1.4%    1,955,557 
  Par   
Corporate Bonds  (000)   
Airlines — 0.5%     
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16  USD 271  292,182 
United Air Lines, Inc., 12.75%, 7/15/12  295  329,242 
    621,424 
Auto Components — 0.8%     
Delphi International Holdings Unsecured,     
12.00%, 10/06/14  13  14,215 
Icahn Enterprises LP, 7.75%, 1/15/16  1,065  1,099,612 
    1,113,827 

 

    Par   
Corporate Bonds    (000)  Value 
Capital Markets — 0.2%       
E*Trade Financial Corp., 3.95% 8/31/19 (a)(e)(f)  USD  83  $ 128,235 
KKR Group Finance Co., 6.38%, 9/29/20 (a)    80  82,426 
      210,661 
Chemicals — 1.0%       
CF Industries, Inc., 6.88%, 5/01/18    445  491,447 
Wellman Holdings, Inc., Subordinate Note (e):       
(Second Lien), 10.00%, 1/29/19 (a)    894  777,780 
(Third Lien), 5.00%, 1/29/19 (g)    301  117,329 
      1,386,556 
Commercial Banks — 1.3%       
CIT Group, Inc.:       
7.00%, 5/01/14    40  40,775 
7.00%, 5/01/16    120  121,050 
7.00%, 5/01/17    1,575  1,586,813 
Glitnir Banki HF, 6.38%, 9/25/12 (a)(d)(h)    365   
      1,748,638 
Commercial Services & Supplies — 0.7%       
AWAS Aviation Capital Ltd., 7.00%, 10/15/16 (a)    624  641,160 
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (a)    260  279,500 
      920,660 
Construction Materials — 0.5%       
Nortek, Inc., 11.00%, 12/01/13    639  680,083 
Consumer Finance — 0.3%       
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)    450  483,750 
Containers & Packaging — 0.5%       
Smurfit Kappa Acquisitions (a):       
7.25%, 11/15/17  EUR  250  365,689 
7.75%, 11/15/19    240  354,373 
      720,062 
Diversified Financial Services — 1.8%       
Ally Financial, Inc.:       
5.38%, 6/06/11    110  151,795 
6.88%, 9/15/11  USD  150  153,375 
7.50%, 12/31/13    20  21,800 
2.51%, 12/01/14 (b)    750  736,991 
8.00%, 3/15/20    20  22,525 
7.50%, 9/15/20 (a)    260  284,375 
8.00%, 11/01/31    30  34,350 
8.00%, 11/01/31    110  125,993 
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16    80  88,200 
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (a)    300  319,500 
Reynolds Group Issuer, Inc. (a):       
7.75%, 10/15/16  EUR  200  292,551 
6.88%, 2/15/21  USD  195  195,488 
      2,426,943 
Diversified Telecommunication Services — 0.4%       
ITC Deltacom, Inc., 10.50%, 4/01/16    220  241,450 
Qwest Communications International, Inc., Series B,       
7.50%, 2/15/14    347  352,205 
      593,655 
Electronic Equipment, Instruments & Components — 0.2%     
CDW LLC, 8.00%, 12/15/18 (a)    250  268,750 
Food Products — 0.4%       
B&G Foods, Inc., 7.63%, 1/15/18    300  320,250 
Smithfield Foods, Inc., 10.00%, 7/15/14    150  177,000 
      497,250 
Health Care Providers & Services — 0.2%       
HCA, Inc., 7.25%, 9/15/20    235  253,506 
Health Care Technology — 0.3%       
IMS Health, Inc., 12.50%, 3/01/18 (a)    400  469,000 

 

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



Schedule of Investments (continued)
BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Hotels, Restaurants & Leisure — 1.0%       
Caesars Entertainment Operating Co., Inc.,       
10.00%, 12/15/18  USD  25  $ 23,500 
Little Traverse Bay Bands of Odawa Indians,       
9.00%, 8/31/20 (a)    242  199,650 
MGM Resorts International, 11.13%, 11/15/17    390  449,475 
Travelport LLC, 4.94%, 9/01/14 (b)    810  722,925 
Tropicana Entertainment LLC, Series WI,       
9.63%, 12/15/14 (d)(h)    120  12 
      1,395,562 
Household Durables — 0.4%       
Beazer Homes USA, Inc., 12.00%, 10/15/17    500  581,250 
Independent Power Producers & Energy Traders — 2.7%     
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (a)  750  813,750 
Energy Future Holdings Corp., 10.00%, 1/15/20 (a)    400  416,541 
Energy Future Intermediate Holding Co. LLC,       
10.00%, 12/01/20    1,325  1,383,104 
NRG Energy, Inc., 7.63%, 1/15/18 (a)    1,000  1,041,250 
      3,654,645 
Industrial Conglomerates — 0.6%       
Sequa Corp., 13.50%, 12/01/15 (a)(g)    722  799,138 
Media — 2.5%       
CSC Holdings, Inc., 8.50%, 4/15/14    180  201,600 
Cengage Learning Acquisitions, Inc.,       
10.50%, 1/15/15 (a)    625  648,437 
Checkout Holding Corp., 10.69% 11/15/15 (a)(f)    425  274,125 
Clear Channel Worldwide Holdings, Inc., Series B,       
9.25%, 12/15/17    774  861,075 
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (a)  300  322,500 
UPC Germany GmbH, 8.13%, 12/01/17 (a)    1,000  1,072,500 
      3,380,237 
Metals & Mining — 0.7%       
FMG Resources August 2006 Pty Ltd.,       
7.00%, 11/01/15 (a)    410  425,375 
Novelis, Inc., 8.38%, 12/15/17 (a)    455  501,637 
RathGibson, Inc., 11.25%, 2/15/14 (d)(h)    1,390  139 
      927,151 
Multiline Retail — 0.2%       
Dollar General Corp., 11.88%, 7/15/17 (g)    215  248,594 
Oil, Gas & Consumable Fuels — 0.1%       
Coffeyville Resources LLC, 9.00%, 4/01/15 (a)    135  147,150 
Paper & Forest Products — 0.9%       
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (a)(g)    720  731,291 
Clearwater Paper Corp., 10.63%, 6/15/16    190  217,075 
Verso Paper Holdings LLC:       
11.50%, 7/01/14    160  176,400 
Series B, 4.05%, 8/01/14 (b)    170  169,150 
      1,293,916 
Pharmaceuticals — 0.2%       
Angiotech Pharmaceuticals, Inc., 4.06%, 12/01/13 (b)  260  218,400 
Valeant Pharmaceuticals International (a):       
6.75%, 10/01/17    45  46,575 
7.00%, 10/01/20    60  62,025 
      327,000 
Professional Services — 0.1%       
FTI Consulting, Inc., 6.75%, 10/01/20 (a)    85  85,000 
Real Estate Investment Trusts (REITs) — 0.0%       
Omega Healthcare Investors, Inc., 6.75%, 10/15/22 (a)  65  65,650 

 

    Par   
Corporate Bonds    (000)  Value 
Wireless Telecommunication Services — 1.4%       
Cricket Communications, Inc., 7.75%, 5/15/16  USD  850  $ 898,875 
Digicel Group Ltd. (a):       
9.13%, 1/15/15    279  290,579 
8.25%, 9/01/17    255  266,475 
iPCS, Inc., 2.43%, 5/01/13 (b)    200  197,500 
Nextel Communications, Inc., Series E, 6.88%, 10/31/13  225  226,828 
      1,880,257 
Total Corporate Bonds — 19.9%      27,180,315 
Floating Rate Loan Interests (b)       
Aerospace & Defense — 3.0%       
DynCorp International, Term Loan, 6.25%, 7/07/16    798  804,484 
Hawker Beechcraft Acquisition Co., LLC:       
Letter of Credit Linked Deposit, 0.20%, 3/26/14    38  33,861 
Term Loan, 2.26% - 2.30%, 3/26/14    632  564,912 
SI Organization Co., New Tranche B Term Loan       
4.50%, 11/22/16    1,075  1,083,062 
Scitor Corp., Term Loan B, 5.75%, 2/01/17    750  747,187 
TransDigm, Inc., Term Loan (First Lien), 5.25%, 2/14/17    900  905,373 
      4,138,879 
Auto Components — 1.2%       
Allison Transmission, Inc., Term Loan, 3.02%, 8/07/14    743  740,323 
Armored Autogroup, Inc. (FKA Viking Aquisition, Inc.),       
Term Loan B, 6.00%, 11/02/16    530  532,650 
UCI International, Inc., Term Loan, 5.50%, 7/06/17    350  351,204 
      1,624,177 
Biotechnology — 0.4%       
Grifols SA, Term Loan B, 6.00% 10/01/16    600  607,000 
Building Products — 3.2%       
Armstrong World Industries, Inc., Term Loan B,       
5.00%, 5/17/16    750  758,430 
CPG International I, Inc., Term Loan B, 6.00%, 2/03/17    850  852,660 
Goodman Global, Inc., Initial Term Loan (First Lien),       
5.75%, 10/13/16    2,244  2,260,858 
Momentive Performance Materials (Blitz 06-103 GmbH),       
Tranche B-2B Term Loan, 4.36%, 5/05/15  EUR  318  427,218 
      4,299,166 
Capital Markets — 1.9%       
American Capital Ltd., Term Loan B, 7.50%, 12/31/13  USD  237  238,174 
HarbourVest Partners, Term Loan (First Lien),       
6.25%, 11/10/16    988  992,438 
Nuveen Investments, Inc.:       
Extended Term Loan (First Lien), 5.80% – 5.81%, 5/13/17  862  858,789 
Non Extended Term Loan (First Lien), 3.30%, 11/13/14  588  570,094 
      2,659,495 
Chemicals — 6.9%       
AZ Chem US, Inc., Term Loan B, 6.75%, 11/18/16    594  599,677 
Chemtura Corp., Term Facility, 5.50%, 8/16/16    700  705,542 
General Chemical Corp., Tranche B Term Loan,       
7.25%, 9/30/15    998  1,012,463 
MacDermid, Inc., Tranche C Term Loan,       
3.07%, 4/12/14  EUR  236  314,568 
Nexeo Solutions LLC, Term Loan B, 5.00%, 8/31/17  USD  600  601,750 
PQ Corp. (FKA Niagara Acquisition, Inc.), Original Term       
Facility (First Lien), 3.52% – 3.56%, 7/30/14    809  795,733 
Rockwood Specialties Group, Inc., Term Loan B,       
3.75%, 2/01/18    850  859,031 
Solutia, Inc., Term Loan, 4.50%, 3/17/17    515  515,172 
Styron Sarl, Term Loan B, 6.00%, 7/27/17    1,300  1,311,700 
Tronox Worldwide LLC, Exit Term Loan, 7.00%, 12/24/15    1,330  1,341,079 
Univar, Inc., Term Loan B, 5.00% 6/30/17    1,300  1,304,469 
      9,361,184 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 25



Schedule of Investments (continued)
BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Commercial Banks — 1.2%       
CIT Group, Inc., Tranche 3 Term Loan, 6.25%, 8/11/15 USD  1,650  $ 1,670,968 
Commercial Services & Supplies — 4.0%       
ARAMARK Corp.:       
Letter of Credit - 1 Facility, 0.11%, 1/26/14    7  6,913 
Letter of Credit - 2 Facility, 0.11%, 7/26/16    10  9,758 
US Term Loan, 2.18%, 1/26/14    86  85,813 
US Term Loan B, 3.55%, 7/26/16    148  148,387 
AWAS Finance Luxembourg Sarl, Loan,       
7.75%, 6/10/16    262  268,528 
Advanced Disposal Services, Inc., Term Loan (First Lien),     
6.00%, 1/14/15    495  498,094 
Altegrity, Inc., (FKA US Investigations Services, Inc.)       
Tranche D Term Loan, 7.75%, 2/21/15    846  862,665 
Casella Waste Systems, Inc., Term Loan B,       
7.00%, 4/09/14    394  394,000 
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16    925  932,928 
Diversey, Inc. (FKA Johnson Diversey, Inc.), Tranche B       
Dollar Term Loan, 5.25%, 11/24/15    365  364,614 
Protection One, Inc., Term Loan, 6.00%, 6/04/16    449  450,056 
Quad/Graphics, Inc., Term Loan, 5.50%, 4/20/16    299  297,132 
Synagro Technologies, Inc., Term Loan (First Lien),       
2.27%, 4/02/14    714  663,930 
Volume Services America, Inc. (Centerplate),       
Term Loan B, 10.50% – 10.75%, 8/24/16    499  503,528 
      5,486,346 
Communications Equipment — 1.8%       
Avaya, Inc., Term Loan B:       
3.06%, 10/24/14    568  550,506 
4.81%, 10/24/17    914  895,777 
CommScope, Inc., Term Loan B, 5.00%, 1/06/18    1,000  1,014,583 
      2,460,866 
Construction & Engineering — 0.6%       
Safway Services, LLC, First Out Tranche Loan,       
9.00%, 12/18/17    800  800,000 
Construction Materials — 0.3%       
Fairmount Minerals Ltd., Tranche B Term Loan,       
6.25% – 6.75%, 8/05/16    404  408,494 
Consumer Finance — 1.5%       
Springleaf Financial Funding Co. (FKA AGFS       
Funding Co.), Term Loan, 7.25%, 4/21/15    2,050  2,068,245 
Containers & Packaging — 0.7%       
Anchor Glass Container Corp., Term Loan (First Lien),       
6.00%, 3/02/16    155  155,621 
Graham Packaging Co., LP, Term Loan D, 6.00%, 9/16/16  798  804,128 
      959,749 
Diversified Consumer Services — 3.4%       
Coinmach Service Corp., Term Loan,       
3.26% – 3.31%, 11/14/14    1,725  1,616,754 
Laureate Education:       
Closing Date Term Loan, 3.55%, 8/17/14    805  787,703 
Delayed Draw Term Loan, 3.55%, 8/15/14    120  117,930 
Series A New Term Loan, 7.00%, 8/15/14    1,199  1,206,109 
ServiceMaster Co.:       
Closing Date Term Loan, 2.76% – 2.81%, 7/24/14  864  850,820 
Delayed Draw Term Loan, 2.77%, 7/24/14    86  84,729 
      4,664,045 
Diversified Financial Services — 2.7%       
MSCI, Inc., Term Loan B, 4.75%, 6/01/16    951  955,834 
Reynolds Group Holdings, Inc., Term Loan E,       
4.25%, 2/09/18    2,150  2,161,197 
Whitelabel IV SA (Ontex):       
Facility B1, 6.75%, 8/11/17  EUR  160  223,532 
Facility B2, 6.75%, 8/11/17    265  369,917 
      3,710,480 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Diversified Telecommunication Services — 3.3%       
Hawaiian Telcom Communications, Inc., Term Loan,       
9.00%, 10/28/15  USD 1,366  $ 1,388,961 
Integra Telecom Holdings, Inc., Term Loan,       
9.25%, 4/15/15    821  830,725 
Level 3 Financing, Inc.:       
Incremental Tranche A Term Loan, 2.55%, 3/13/14    1,375  1,340,625 
Term Loan B, 11.50%, 3/13/14    125  134,063 
US Telepacific Corp., Term Loan B, 5.75%, 2/18/17    750  754,219 
      4,448,593 
Electric Utilities — 1.1%       
New Development Holdings LLC, Term Loan,       
7.00%, 7/03/17    1,437  1,450,527 
Electronic Equipment, Instruments & Components — 0.9%     
CDW LLC (FKA CDW Corp.):       
Extended Term Loan B, 3.51%, 7/15/17    467  466,684 
Non Extended Term Loan, 4.26%, 10/10/14    720  718,400 
Flextronics International Ltd., Delayed Draw:       
Term Loan A-2, 2.51%, 10/01/14    21  20,611 
Term Loan A-3, 2.51%, 10/01/14    24  24,046 
      1,229,741 
Energy Equipment & Services — 0.6%       
MEG Energy Corp., Tranche D Term Loan, 6.00%, 4/03/16  816  823,367 
Food & Staples Retailing — 3.0%       
AB Acquisitions UK Topco 2 Ltd. (FKA Alliance Boots),       
Facility B1, 3.58%, 7/09/15  GBP  750  1,175,037 
Bolthouse Farms, Inc., Term Loan (First Lien),       
5.50% – 5.75%, 2/11/16  USD  526  529,200 
Pilot Travel Centers LLC, Initial Tranche B Term Loan,       
5.25%, 6/30/16    1,288  1,298,468 
Rite Aid Corp., Term Loan B, 6.00%, 7/09/14    229  229,245 
U.S. Foodservice, Inc., Term Loan B, 2.76%, 7/03/14    883  852,695 
      4,084,645 
Food Products — 5.9%       
Advance Pierre Foods, Term Loan (Second Lien):       
7.00%, 9/29/16    928  934,216 
11.25%, 9/29/17    500  512,500 
CII Investment, LLC (FKA Cloverhill):       
Delayed Draw Term Loan, 8.50%, 10/14/14    119  117,628 
Term Loan A, 8.50%, 10/14/14    361  357,469 
Term Loan B, 8.50%, 10/14/14    439  434,760 
Del Monte Corp., Term Loan B, 4.50%, 2/01/18    3,350  3,370,938 
Green Mountain Coffee Roasters, Inc., Term Loan B       
Facility, 5.50%, 11/09/16    500  503,282 
Pinnacle Foods Finance LLC:       
Term Loan B, 2.76%, 4/02/14    150  149,438 
Tranche D Term Loan, 6.00%, 4/02/14    581  585,852 
Solvest, Ltd. (Dole):       
Tranche B-1 Term Loan, 5.00% – 5.50%, 3/02/17    305  306,998 
Tranche C-1 Term Loan, 5.00% – 5.50%, 3/02/17    752  757,186 
      8,030,267 
Health Care Equipment & Supplies — 0.6%       
DJO Finance LLC (FKA ReAble Therapeutics Finance LLC),       
Term Loan, 3.26%, 5/20/14    352  349,837 
Fresenius SE:       
Tranche C-1 Dollar Term Loan, 4.50%, 9/10/14    284  284,888 
Tranche C-2 Term Loan, 4.50%, 9/10/14    150  150,829 
      785,554 
Health Care Providers & Services — 6.2%       
CHS/Community Health Systems, Inc.:       
Delayed Draw Term Loan, 2.51% – 2.56%, 7/25/14    56  55,916 
Extended Term Loan, 3.76% – 3.81%, 1/25/17    311  311,669 
Non Extended Term Loan, 2.51% – 2.56%, 7/25/14    1,093  1,083,681 

 

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



Schedule of Investments (continued)
BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Health Care Providers & Services (concluded)       
ConvaTec, Inc., Dollar Term Loan, 5.75%, 12/20/16  USD  600  $ 602,750 
DaVita, Inc., Tranche B Term Loan, 4.50%, 10/20/16    800  805,709 
HCA, Inc.:       
Tranche A-1 Term Loan, 1.55%, 11/16/12    1,132  1,125,755 
Tranche B-1 Term Loan, 2.55%, 11/18/13    87  86,338 
Tranche B-2 Term Loan, 3.55%, 3/31/17    232  232,345 
Harden Healthcare, Inc.:       
Tranche A Additional Term Loan, 7.75%, 3/02/15    603  591,185 
Tranche A Term Loan, 8.50%, 2/22/15    360  352,889 
inVentiv Health, Inc. (FKA Ventive Health, Inc.):       
Term Loan B, 4.75%, 7/31/16    1,164  1,169,418 
Term Loan B2, 4.75%, 8/04/16    300  301,125 
Term Loan B2, 6.50%, 8/04/16    150  150,656 
Renal Advantage Holdings, Inc., Tranche B Term Loan,       
5.75%, 12/03/16    600  608,250 
Vanguard Health Holding Co. II, LLC (Vanguard Health       
Systems, Inc.), Initial Term Loan, 5.00%, 1/29/16    909  914,421 
      8,392,107 
Health Care Technology — 1.2%       
IMS Health, Inc., Tranche B Dollar Term Loan,       
5.25%, 2/26/16    993  1,001,565 
MedAssets, Inc., Term Loan B, 5.25%, 11/15/16    600  604,500 
      1,606,065 
Hotels, Restaurants & Leisure — 8.9%       
BLB Management Services, Inc. (Wembly, Inc.) Loan (Exit),     
8.50%, 11/05/15    428  429,994 
Blackstone UTP Capital LLC, Loan, 7.75%, 11/06/14    743  757,350 
Boyd Gaming Corp., Term Loan A, 3.81%, 12/31/15    400  395,168 
Dunkin' Brands, Inc., Term Loan B, 4.25%, 11/09/17    1,100  1,107,556 
Gateway Casinos & Entertainment, Ltd., Term Loan B,       
6.50% – 7.50%, 5/12/16  CAD  1,173  1,212,114 
Harrah's Operating Co., Inc.:       
Term Loan B-2, 3.30%, 1/28/15  USD  155  143,596 
Term Loan B-3, 3.30%, 1/28/15    3,346  3,106,791 
Term Loan B-4, 9.50%, 10/31/16    385  407,993 
Seaworld Parks & Entertainment, Inc. (FKA SW       
Aquisitions Co., Inc.), Term B Loan, 4.00%, 8/17/17    411  412,676 
Sea World, Term Loan B, 4.00%, 8/16/17    1,039  1,041,523 
Six Flags Theme Parks, Inc., Tranche B Term Loan       
(First Lien), 5.00% – 5.50%, 6/30/16    895  905,036 
Travelport LLC (FKA Travelport, Inc.), Extended Delayed       
Draw Term Loan, 4.96%, 8/21/15    229  222,331 
Universal City Development Partners Ltd., Term Loan,       
5.50%, 11/16/14    571  576,265 
VML US Finance LLC (FKA Venetian Macau):       
New Project Term Loan, 4.79%, 5/27/13    300  299,938 
Term B Delayed Draw Project Loan, 4.79%, 5/25/12    298  298,109 
Term B Funded Project Loan, 4.79%, 5/27/13    858  859,193 
      12,175,633 
Household Durables — 1.0%       
Visant Corp. (FKA Jostens):       
5.25%, 12/22/16    725  725,000 
Tranche B Term Loan, 7.00%, 12/20/16    599  603,857 
      1,328,857 
IT Services — 4.7%       
Ceridian Corp., US Term Loan, 3.26%, 11/09/14    1,030  1,014,396 
EVERTEC, Inc., Term Loan B, 7.00%, 8/20/16    209  210,829 
First Data Corp.:       
Initial Tranche B-1 Term Loan, 3.01%, 9/24/14    1,245  1,178,648 
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14    1,728  1,636,250 
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14    881  833,832 
TransUnion LLC, Replacement Term Loan, 4.75%, 2/03/18  1,468  1,476,261 
      6,350,216 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Independent Power Producers & Energy Traders — 0.8%       
Texas Competitive Electric Holdings Co., LLC (TXU):       
Initial Tranche B-1 Term Loan,       
3.76% – 3.80%, 10/10/14  USD 1,085  $ 914,694 
Initial Tranche B-2 Term Loan,       
3.76% – 3.80%, 10/10/14    228  192,397 
      1,107,091 
Industrial Conglomerates — 1.7%       
Sequa Corp., Term Loan, 3.56%, 12/03/14    897  886,969 
Tomkins Plc, Term Loan A, 4.25%, 9/16/16    1,480  1,492,188 
      2,379,157 
Insurance — 0.9%       
CNO Financial Group, Inc., Term Loan, 7.50%, 9/30/16    1,200  1,207,000 
Internet & Catalog Retail — 0.3%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/26/14    357  358,172 
Leisure Equipment & Products — 0.3%       
EB Sports Corp., Loan, 11.50%, 5/01/12    474  474,446 
Machinery — 0.3%       
Navistar Financial Corp., Term Loan B, 4.55%, 12/16/12    400  398,500 
Marine — 0.3%       
Horizon Lines, LLC:       
Revolving Loan, 3.31%, 8/08/12    246  228,439 
Term Loan, 3.31%, 8/08/12    134  127,782 
      356,221 
Media — 20.1%       
Acosta, Inc., Term Loan, 4.75%, 2/03/18    1,150  1,158,625 
Affinion Group, Inc., Tranche B Term Loan:       
5.00%, 10/09/16    744  748,097 
5.00%, 10/31/16    200  200,750 
Atlantic Broadband Finance, LLC, Term Loan B,       
5.00%, 11/12/15    483  482,508 
Bresnan Telecommunications Co. LLC, Term Loan,       
4.50%, 11/30/17    1,375  1,383,403 
Cengage Learning Acquisitions, Inc. (Thomson Learning):       
Term Loan, 2.55%, 7/03/14    997  959,770 
Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    482  484,500 
Charter Communications Operating, LLC:       
Term Loan B, 7.25%, 3/06/14    211  213,073 
Term Loan C, 3.56%, 9/06/16    1,031  1,033,740 
Clarke American Corp., Term Facility B, 2.80%, 6/30/14    571  544,355 
Ellis Communications KDOC, LLC, Loan,       
10.00%, 12/30/11    1,939  727,241 
FoxCo Acquisition Sub, LLC, Term Loan B, 7.50%, 7/14/15  524  523,036 
Getty Images, Inc., Initial Term Loan, 5.25%, 10/29/16    1,097  1,110,623 
HMH Publishing Co., Ltd., Tranche A Term Loan,       
6.01%, 6/12/14    730  693,401 
Intelsat Jackson Holdings S.A. (FKA Intelsat Jackson       
Holdings, Ltd.), Tranche B Term Loan, 5.25%, 3/07/18    3,000  3,020,157 
Interactive Data Corp., Term Loan, 4.75%, 2/08/18    1,350  1,361,089 
Knology, Inc., Term Loan B, 4.00%, 8/31/17    600  603,750 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG),       
Facility B1, 3.68%, 6/30/15  EUR  304  385,163 
Mediacom Illinois, LLC (FKA Mediacom       
Communications, LLC), Tranche D Term Loan,       
5.50%, 3/31/17  USD  718  722,102 
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13    2,000  2,126,250 
Nielsen Finance LLC:       
Class A Dollar Term Loan, 2.26%, 8/09/13    33  33,385 
Class B Dollar Term Loan, 4.01%, 5/01/16    1,018  1,022,397 
Sinclair Television Group, Inc., New Tranche B Term Loan,       
5.50%, 10/29/15    614  620,284 
Springer Science+Business Media SA, Facility A1,       
6.75%, 7/01/16  EUR  1,000  1,393,757 
Sunshine Acquisition Ltd. (FKA HIT Entertainment),       
Term Facility, 5.56%, 6/01/12  USD  918  898,401 
UPC Broadband Holding B.V., Term U, 4.88%, 12/31/17 EUR  660  908,255 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 27



Schedule of Investments (continued)
BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Media (concluded)       
Univision Communications, Inc., Extended First Lien       
Term Loan, 4.52%, 3/31/17  USD  1,134  $ 1,103,078 
Virgin Media Investment Holdings Ltd., Facility B,       
4.53%, 12/31/15  GBP  750  1,219,125 
Weather Channel, Term Loan B, 4.25%, 2/01/17  USD  1,200  1,211,100 
Yell Group Plc/Yell Finance (UK) Ltd., Facility A3,       
2.76%, 8/09/11    633  613,828 
      27,505,243 
Metals & Mining — 2.0%       
Euramax International, Inc., Domestic Term Loan:       
10.00%, 6/29/13    643  619,169 
14.00%, 6/29/13    626  602,834 
Novelis Corp., Term Loan, 5.25%, 12/01/16    1,500  1,517,679 
      2,739,682 
Multi-Utilities — 0.2%       
FirstLight Power Resources, Inc. (FKA NE Energy, Inc.):       
Synthetic Letter of Credit, 0.16%, 11/01/13    4  4,310 
Term B Advance (First Lien), 2.81%, 11/01/13    213  211,943 
      216,253 
Multiline Retail — 2.0%       
Dollar General Corp., Tranche B-2 Term Loan,       
3.01%, 7/07/14    270  270,395 
Hema Holding BV, Facility D, 5.91%, 1/01/17  EUR  1,400  1,898,131 
The Neiman Marcus Group, Inc., Tranche B-2 Term       
Loan, 4.30%, 4/06/16  USD  495  496,833 
      2,665,359 
Oil, Gas & Consumable Fuels — 1.9%       
EquiPower Resources Holdings, LLC, Term Loan B,       
5.75%, 1/11/18    700  705,250 
Obsidian Natural Gas Trust, Term Loan,       
7.00%, 11/30/15    1,153  1,181,772 
Turbo Beta Ltd., Dollar Facility, 14.50%, 3/15/18    1,817  744,987 
      2,632,009 
Personal Products — 0.9%       
NBTY, Inc., Term Loan B:       
6.25%, 9/20/17    650  656,635 
4.75%, 10/01/17    625  625,000 
      1,281,635 
Pharmaceuticals — 1.2%       
Axcan Intermediate Holdings, Inc., Term Loan,       
5.50%, 2/03/17    700  701,750 
Warner Chilcott Corp.:       
Delayed Draw Term Loan B, 6.25%, 4/30/15    176  176,598 
Term Loan A, 6.00%, 10/30/14    348  347,689 
Term Loan B-1, 6.25%, 4/30/15    106  107,070 
Term Loan B-3, 6.50%, 2/20/16    61  61,297 
Term Loan C B-3, 6.25%, 4/30/15    209  210,421 
      1,604,825 
Professional Services — 1.6%       
Booz Allen Hamilton, Inc., Tranche B Term Loan,       
4.00%, 8/01/17    1,400  1,413,300 
Fifth Third Processing Solutions, LLC, Term Loan B       
(First Lien), 5.50%, 10/21/16    700  705,425 
      2,118,725 
Real Estate Investment Trusts (REITs) — 0.1%       
iStar Financial, Inc., Term Loan (Second Lien),       
1.76%, 6/28/11    125  123,281 
Real Estate Management & Development — 2.0%       
Realogy Corp.:       
Initial Term Loan B, 4.56%, 10/10/13    201  192,971 
Synthetic Letter of Credit, 4.51%, 10/10/13    24  22,868 
Term Loan B, 4.56%, 10/16/16    2,532  2,428,464 
Term Loan C, 4.51%, 10/16/16    155  148,948 
      2,793,251 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Road & Rail — 0.2%       
Transtar Industries, Term Loan (First Lien),       
6.25%, 12/07/16  USD  275 $ 279,125 
Semiconductors & Semiconductor Equipment — 0.6%       
Freescale Semiconductor, Inc., Term Loan B,       
4.51%, 12/01/16    369  367,858 
Microsemi Corp., Term Loan B, 5.00%, 10/25/17    500  501,250 
      869,108 
Software — 0.9%       
Rovi Corp., Term Loan B, 4.00%, 2/01/18    500  505,000 
Telcordia Technologies, Inc., Term Loan, 6.75%, 4/30/16    446  448,385 
Vertafore, Inc., New Term Loan B, 5.25%, 7/29/16    335  337,512 
      1,290,897 
Specialty Retail — 4.4%       
Burlington Coat Factory Warehouse Corp., Term Loan B,       
6.25%, 2/18/17    425  426,416 
Gymboree Corp., Term Loan B, 5.00%, 2/11/18    700  702,100 
J. Crew Group, Inc., Term Loan B, 5.25%, 2/01/18    1,350  1,350,000 
Matalan Finance Plc, Term Facility, 5.61%, 3/24/16  GBP  277  448,263 
Michaels Stores, Inc.:       
Term Loan B, 4.25%, 2/28/18  USD  542  546,779 
Term Loan B-1, 2.56%, 10/31/13    223  221,776 
Term Loan B-2, 4.81%, 7/31/16    361  363,521 
Petco Animal Supplies, Inc., Term Loan B,       
4.75%, 11/24/17    1,150  1,150,001 
Toys 'R' Us Delaware, Inc., Initial Loan, 6.00%, 8/17/16    766  771,777 
      5,980,633 
Textiles, Apparel & Luxury Goods — 0.4%       
Philips Van Huesen Corp., US Tranche B Term Loan,       
5.25%, 5/06/16    599  601,526 
Wireless Telecommunication Services — 1.2%       
MetroPCS Wireless, Inc., Tranche B-2 Term Loan,       
3.81%, 11/03/16    506  508,342 
Vodafone Americas Finance 2 Inc., Initial Loan,       
6.88%, 7/30/15    1,035  1,071,566 
      1,579,908 
Total Floating Rate Loan Interests — 114.5%      156,186,713 
  Beneficial   
  Interest   
Other Interests (i)    (000)   
Auto Components — 1.0%       
Delphi Debtor-in-Possession Holding Co. LLP, Class B       
Membership Interests    —(j)  1,344,894 
Intermet Liquidating Trust, Class A    256  3 
      1,344,897 
Diversified Financial Services — 0.4%       
J.G. Wentworth LLC Preferred Equity Interests (k)    —(j)  596,461 
Hotels, Restaurants & Leisure — 0.0%       
Buffets, Inc.    360  4 
Household Durables — 0.5%       
Stanley Martin, Class B Membership Units (k)    1  648,116 
Metals & Mining — 0.6%       
RathGibson Acquisition Corp., LLC (k)    88  744,139 
Total Other Interests — 2.5%      3,333,617 
Warrants (l)    Shares   
Hotels, Restaurants & Leisure — 0.0%       
Buffets Restaurants Holdings, Inc. (Expires 4/29/14)    304  3 
Oil, Gas & Consumable Fuels — 0.0%       
Turbo Cayman Ltd. (No expiration)    1   

 

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



Schedule of Investments (continued)
BlackRock Diversified Income Strategies Fund, Inc. (DVF)
(Percentages shown are based on Net Assets)

Warrants (l)  Shares  Value 
Software — 0.0%     
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)                357  $ 4 
HMH Holdings/EduMedia (Expires 3/09/17)  4,970   
    4 
Total Warrants — 0.0%    7 
Total Long-Term Investments     
(Cost — $199,079,559) — 142.3%    194,063,218 
Short-Term Securities  Shares   
BlackRock Liquidity Funds, TempFund, Institutional     
Class, 0.15% (m)(n)  3,037,317  3,037,317 
Total Short-Term Securities     
(Cost — $3,037,317) — 2.2%    3,037,317 
Options Purchased  Contracts   
Over-the-Counter Call Options — 0.0%     
Marsico Parent Superholdco LLC,     
Strike Price USD 942.86, Expires 12/01/19,     
Broker Goldman Sachs Bank USA  13   
Total Options Purchased (Cost — $12,711) — 0.0%     
Total Investments (Cost — $202,129,587*) — 144.5%    197,100,535 
Liabilities in Excess of Other Assets — (44.5)%    (60,682,625) 
Net Assets — 100.0%    $136,417,910 


* The cost and unrealized appreciation (depreciation) of investments as of

February 28, 2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $200,043,870 
Gross unrealized appreciation  $    8,254,176 
Gross unrealized depreciation  (11,197,511) 
Net unrealized depreciation  $  (2,943,335) 


(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(b) Variable rate security. Rate shown is as of report date.
(c) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
    Appreciation 
Counterparty  Value  (Depreciation) 
Bank of America & Co.  $ 493,150   


(d) Non-income producing security.

(e) Convertible security.
(f) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(g) Represents a payment-in-kind security which may pay interest/dividends in
additional par/shares.
(h) Issuer filed for bankruptcy and/or is in default of interest payments.
(i) Other interests represent beneficial interest in liquidation trusts and other reorgani-
zation entities and are non-income producing.
(j) Amount is less than $1,000.
(k) The investment is held by a wholly owned taxable subsidiary of the Fund.
(l) Warrants entitle the Fund to purchase a predetermined number of shares of com-
mon stock and are non-income producing. The purchase price and number of
shares are subject to adjustment under certain conditions until the expiration date,
if any.
(m) Investments in companies considered to be an affiliate of the Fund during the
period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
as amended, were as follows:

  Shares Held at  Net  Shares Held at   
Affiliate  August 31, 2010  Activity  February 28, 2011  Income 
BlackRock Liquidity       
Funds, TempFund,       
Institutional Class             1,822,139  1,215,178  3,037,317  $2,262 


(n) Represents the current yield as of report date.


For Fund compliance purposes, the Fund’s industry classifications refer to any one
or more of the industry sub-classifications used by one or more widely recognized
market indexes or rating group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine such
industry sub-classifications for reporting ease.
Foreign currency exchange contracts as of February 28, 2011 were as follows:

            Unrealized 
Currency  Currency    Settlement                 Appreciation 
Purchased    Sold  Counterparty  Date  (Depreciation) 
USD  1,685,223  CAD  1,671,000  Citibank NA  4/14/11  $ (33,011) 
USD  2,394,276  GBP  1,534,500  Citibank NA  4/14/11  (99,244) 
USD  7,184,625  EUR  5,250,000  Citibank NA  4/27/11  (54,917) 
USD  205,380  EUR  150,000  Royal Bank     
        of Scotland  4/27/11  (1,464) 
Total            $ (188,636) 


Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives. These inputs are summarized in three broad levels for
financial statement purposes which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund's own assumptions used in determining the fair value of investments and
derivatives)

The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund's policy regarding valuation of investments and derivatives and
other significant accounting policies, please refer to Note 1 of the Notes to
Financial Statements.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 29



Schedule of Investments (concluded)
BlackRock Diversified Income Strategies Fund, Inc. (DVF)

The following tables summarize the inputs used as of February 28, 2011 in deter-
mining the fair valuation of the Fund's investments and derivatives:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments in         
Securities:         
Long-Term         
Investments:         
Asset-Backed         
Securities    $ 1,803,522  $ 3,603,487  $ 5,407,009 
Common Stocks  $ 446,403  1,281,443  227,711  1,955,557 
Corporate Bonds    26,071,329  1,108,986  27,180,315 
Floating Rate         
Loan Interests .    136,522,127  19,664,586  156,186,713 
Other Interests .    1,344,894  1,988,723  3,333,617 
Warrants      7  7 
Short-Term         
Securities  3,037,317      3,037,317 
Unfunded Loan         
Commitments .    30,646  361  31,007 
Liabilities:         
Unfunded Loan         
Commitments .      (4,760)  (4,760) 
Total  $ 3,483,720  $167,053,961  $26,589,101  $197,126,782 

 

Derivative Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Liabilities:         
Foreign currency         
exchange         
contracts  $ (186,636)     $ (186,636) 

1 Derivative financial instruments are foreign currency exchange contracts.
Foreign currency exchange contracts are shown at the unrealized appreciation/
depreciation on the instrument.

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

  Asset-Backed  Common  Corporate  Floating Rate  Other    Unfunded Loan 
  Securities  Stocks  Bonds  Loan Interests  Interests  Warrants  Commitments  Total 
Assets:                 
Balance, as of August 31, 2010  $ 338,985  $ 230,600  $ 904,927  $22,878,826  $ 1,589,042  $ 3  $ 3,118  $25,945,501 
Accrued discounts/premiums  66,762    13,336  420,178        500,276 
Net realized gain (loss)  (1,324,498)    1,665  (163,595)        (1,486,428) 
Net change in unrealized appreciation/                 
depreciation2  982,950  373,828  (16,201)  1,065,861  (431,019)    (2,757)  1,972,662 
Purchases  4,038,038    223,447  13,721,843  830,700  4    18,814,032 
Sales  (498,750)  (376,717)  (18,200)  (18,467,896)        (19,361,563) 
Transfers in3      12  4,827,416        4,827,428 
Transfers out3        (4,618,047)        (4,618,047) 
Balance, as of February 28, 2011  $ 3,603,487  $ 227,711  $ 1,108,986  $19,664,586  $ 1,988,723  $ 7  $ 361  $26,593,861 

2 Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in the unrealized appreciation/depreciation on the
securities still held on February 28, 2011 was $(41,679).
3 The Fund’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

The following is a reconciliation of Level 3 derivative financial instruments for which
significant unobservable inputs were used in determining fair value:

  Unfunded 
  Loan 
  Commitments 
Liabilities:   
Balance, as of August 31, 2010  $ (46,743) 
Accrued discounts/premiums   
Realized gain (loss)   
Change in unrealized appreciation/depreciation4  41,983 
Purchases   
Sales   
Transfers in5   
Transfers out5   
Balance, as of February 28, 2011  $ (4,760) 

4 Included in the related net change in unrealized appreciation/depreciation
on the Statements of Operations. The change in the unrealized appreciation/
depreciation on the securities still held on February 28, 2011 was $42,183.
5 The Fund’s policy is to recognize transfers in and transfers out as of the end of
the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.

30 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



Schedule of Investments February 28, 2011 (Unaudited)
 
BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

  Par   
Asset-Backed Securities  (000)  Value 
ARES CLO Funds (a)(b):     
Series 2005-10A, Class B, 0.69%, 9/18/17  USD 750  $ 660,000 
Series 2011-16A, Class C, 2.90%, 5/17/21 (c)  650  641,095 
Ballyrock CDO Ltd., Series 2006-1A, Class B,     
0.66%, 8/28/19 (a)(b)  1,000  857,500 
Canaras Summit CLO Ltd., Series 2007-1A, Class B,     
0.78%, 6/19/21 (a)(b)  750  640,905 
Centurion CDO 9 Ltd., Series 2005-9A, Class B,     
1.07%, 7/17/19 (a)(b)  620  510,390 
Flagship CLO, Series 2006-1A, Class B,     
0.64%, 9/20/19 (a)(b)  1,304  1,075,800 
Fraser Sullivan CLO Ltd., Series 2006-2A, Class B,     
0.70%, 12/20/20 (a)(b)  500  441,875 
Gannett Peak CLO Ltd., Class A2:     
Series 2006-1A, 0.66%, 10/27/20 (a)(b)  830  714,837 
Series 2006-1X, 0.66%, 10/27/20  575  484,438 
Goldman Sachs Asset Management CLO Plc,     
Series 2007-1A, Class B, 0.75%, 8/01/22 (a)(b)  1,255  1,054,827 
KKR CLO Ltd., Series 2005-1A, Class B,     
0.75%, 4/26/17 (a)(b)  500  456,250 
Landmark CDO Ltd., Series 2006-8A, Class B,     
0.66%, 10/19/20 (a)(b)  1,075  935,078 
MAPS CLO Fund LLC, Series 2005-1A, Class C,     
1.25%, 12/21/17 (a)(b)  575  501,688 
Portola CLO Ltd., Series 2007-1X, Class B1,     
1.76%, 11/15/21  765  707,625 
T2 Income Fund CLO Ltd., Series 2007-1A, Class B,     
0.90%, 7/15/19 (a)(b)  655  561,944 
Total Asset-Backed Securities — 3.6%    10,244,252 
Common Stocks (d)  Shares   
Chemicals — 0.0%     
GEO Specialty Chemicals, Inc.  13,117  5,036 
Wellman Holdings, Inc.  430  21 
    5,057 
Construction Materials — 0.0%     
Nortek, Inc.  1,540  68,530 
Electrical Equipment — 0.0%     
Medis Technologies Ltd.  71,654  1,505 
Paper & Forest Products — 0.4%     
Ainsworth Lumber Co. Ltd.  133,089  439,726 
Ainsworth Lumber Co. Ltd. (a)  152,951  505,350 
Western Forest Products, Inc. (a)  84,448  64,321 
    1,009,397 
Software — 0.2%     
HMH Holdings/EduMedia  92,606  463,030 
Total Common Stocks — 0.6%    1,547,519 
  Par   
Corporate Bonds  (000)   
Airlines — 0.2%     
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16  USD 541  584,363 
Auto Components — 0.8%     
Delphi International Holdings Unsecured,     
12.00%, 10/06/14  32  35,537 
Icahn Enterprises LP, 7.75%, 1/15/16  2,215  2,286,988 
    2,322,525 

 

    Par   
Corporate Bonds    (000)  Value 
Chemicals — 1.0%       
CF Industries, Inc., 6.88%, 5/01/18  USD  905  $ 999,459 
GEO Specialty Chemicals, Inc. (a):       
7.50%, 3/31/15 (e)(f)    857  856,987 
10.00%, 3/31/15    844  780,848 
Wellman Holdings, Inc., Subordinate Note (Third Lien),       
5.00%, 1/29/19 (e)(f)    476  185,485 
      2,822,779 
Commercial Banks — 1.2%       
CIT Group, Inc.:       
7.00%, 5/01/14    150  152,906 
7.00%, 5/01/16    400  403,500 
7.00%, 5/01/17    2,815  2,836,113 
      3,392,519 
Commercial Services & Supplies — 0.7%       
AWAS Aviation Capital Ltd., 7.00%, 10/15/16 (a)    1,249  1,283,347 
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (a)    530  569,750 
      1,853,097 
Construction Materials — 0.6%       
Nortek, Inc., 11.00%, 12/01/13    1,547  1,647,389 
Consumer Finance — 0.5%       
Credit Acceptance Corp., 9.13%, 2/01/17    360  387,900 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)    915  983,625 
      1,371,525 
Containers & Packaging — 1.2%       
Berry Plastics Corp., 8.25%, 11/15/15    1,600  1,714,000 
OI European Group BV, 6.88%, 3/31/17  EUR  143  205,474 
Smurfit Kappa Acquisitions (a):       
7.25%, 11/15/17    525  767,947 
7.75%, 11/15/19    500  738,277 
      3,425,698 
Diversified Financial Services — 1.6%       
Ally Financial, Inc., 2.51%, 12/01/14 (b)  USD  2,600  2,554,903 
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16    160  176,400 
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (a)    700  745,500 
Reynolds Group Issuer, Inc. (a):       
7.75%, 10/15/16  EUR  400  585,102 
6.88%, 2/15/21  USD  395  395,987 
      4,457,892 
Diversified Telecommunication Services — 0.6%       
ITC Deltacom, Inc., 10.50%, 4/01/16    540  592,650 
Qwest Communications International, Inc.:       
8.00%, 10/01/15    600  654,750 
Series B, 7.50%, 2/15/14    434  440,510 
      1,687,910 
Electronic Equipment, Instruments & Components — 0.2%     
CDW LLC, 8.00%, 12/15/18 (a)    500  537,500 
Food & Staples Retailing — 0.1%       
AmeriQual Group LLC, 9.50%, 4/01/12 (a)    250  247,500 
Food Products — 0.4%       
B&G Foods, Inc., 7.63%, 1/15/18    600  640,500 
Smithfield Foods, Inc., 10.00%, 7/15/14    363  428,340 
      1,068,840 
Health Care Equipment & Supplies — 0.5%       
DJO Finance LLC, 10.88%, 11/15/14    1,245  1,364,831 
Health Care Providers & Services — 0.8%       
HCA, Inc., 7.25%, 9/15/20    485  523,194 
Tenet Healthcare Corp.:       
9.00%, 5/01/15    175  192,500 
8.88%, 7/01/19    1,360  1,547,000 
      2,262,694 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 31



Schedule of Investments (continued)
BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Health Care Technology — 0.8%       
IMS Health, Inc., 12.50%, 3/01/18 (a)  USD  1,860  $ 2,180,850 
Hotels, Restaurants & Leisure — 0.3%       
Caesars Entertainment Operating Co., Inc.,       
10.00%, 12/15/18    45  42,300 
Little Traverse Bay Bands of Odawa Indians,       
9.00%, 8/31/20 (a)    473  390,225 
MGM Resorts International, 10.38%, 5/15/14    490  548,800 
      981,325 
Household Durables — 0.5%       
Beazer Homes USA, Inc., 12.00%, 10/15/17    1,200  1,395,000 
Independent Power Producers & Energy Traders — 2.5%     
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (a)  1,125  1,220,625 
Energy Future Holdings Corp., 10.00%, 1/15/20 (a)    1,000  1,041,352 
Energy Future Intermediate Holding Co. LLC,       
10.00%, 12/01/20    2,700  2,818,400 
NRG Energy, Inc., 7.63%, 1/15/18 (a)    2,000  2,082,500 
      7,162,877 
Industrial Conglomerates — 0.6%       
Sequa Corp., 13.50%, 12/01/15 (a)(e)    1,557  1,724,750 
Media — 2.1%       
CSC Holdings, Inc., 8.50%, 4/15/14    420  470,400 
Checkout Holding Corp., 10.69% 11/15/15 (a)(g)    870  561,150 
Clear Channel Worldwide Holdings, Inc.:       
9.25%, 12/15/17    401  445,110 
Series B, 9.25%, 12/15/17    1,604  1,784,450 
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (a)  615  661,125 
UPC Germany GmbH, 8.13%, 12/01/17 (a)    2,000  2,145,000 
      6,067,235 
Metals & Mining — 0.7%       
FMG Resources August 2006 Pty Ltd.,       
7.00%, 11/01/15 (a)    840  871,500 
Novelis, Inc., 8.38%, 12/15/17 (a)    935  1,030,837 
      1,902,337 
Multiline Retail — 0.2%       
Dollar General Corp., 11.88%, 7/15/17 (e)    445  514,531 
Oil, Gas & Consumable Fuels — 0.1%       
Coffeyville Resources LLC, 9.00%, 4/01/15 (a)    275  299,750 
Paper & Forest Products — 0.6%       
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (a)(e)    1,266  1,285,258 
Verso Paper Holdings LLC, Series B, 4.05%, 8/01/14 (b)  340  338,300 
      1,623,558 
Pharmaceuticals — 0.2%       
Angiotech Pharmaceuticals, Inc., 4.06%, 12/01/13 (b)  515  432,600 
Valeant Pharmaceuticals International (a):       
6.75%, 10/01/17    95  98,325 
7.00%, 10/01/20    120  124,050 
      654,975 
Professional Services — 0.1%       
FTI Consulting, Inc., 6.75%, 10/01/20 (a)    170  170,000 
Real Estate Investment Trusts (REITs) — 0.1%       
Omega Healthcare Investors, Inc., 6.75%, 10/15/22 (a)  140  141,400 
Wireless Telecommunication Services — 1.5%       
Cricket Communications, Inc., 7.75%, 5/15/16    1,700  1,797,750 
Digicel Group Ltd. (a):       
9.13%, 1/15/15 (e)    278  289,537 
8.25%, 9/01/17    315  329,175 
iPCS, Inc., 2.43%, 5/01/13 (b)    1,500  1,481,250 
Nextel Communications, Inc., Series E, 6.88%, 10/31/13  275  277,234 
      4,174,946 
Total Corporate Bonds — 20.7%      58,040,596 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Aerospace & Defense — 3.0%       
DynCorp International, Term Loan, 6.25%, 7/07/16  USD  1,746  $ 1,759,808 
Hawker Beechcraft Acquisition Co., LLC:       
Letter of Credit Linked Deposit, 0.20%, 3/26/14    78  69,322 
Term Loan, 2.26% – 2.30%, 3/26/14    1,337  1,195,033 
SI Organization Co., New Tranche B Term Loan,       
4.50%, 10/29,15    1,925  1,939,437 
Scitor Corp., Term Loan B, 5.75%, 2/01/17    1,550  1,544,188 
TransDigm, Inc., Term Loan (First Lien), 5.25%, 2/14/17    1,800  1,810,746 
      8,318,534 
Airlines — 0.7%       
Delta Air Lines, Inc., Credit-Linked Deposit Loan,       
0.11% – 2.26%, 4/30/12    1,888  1,873,344 
Auto Components — 1.1%       
Allison Transmission, Inc., Term Loan, 3.02%, 8/07/14    1,189  1,184,985 
GPX International Tire Corp., Tranche B Term Loan (d)(h):       
8.37%, 3/30/12    549   
12.00%, 4/11/12    9   
Armored Autogroup, Inc. (FKA Viking Aquisition, Inc.),       
Term Loan B, 6.00%, 11/02/16    1,090  1,095,450 
UCI International, Inc., Term Loan, 5.50%, 7/06/17    750  752,579 
      3,033,014 
Biotechnology — 0.4%       
Grifols SA, Term Loan B, 6.00%, 10/01/16    1,200  1,214,000 
Building Products — 3.6%       
Armstrong World Industries, Inc., Term Loan B,       
5.00%, 5/17/16    1,550  1,567,422 
CPG International I, Inc., Term Loan B, 6.00%, 2/03/17    1,800  1,805,634 
Goodman Global, Inc., Initial Term Loan (First Lien),       
5.75%, 10/13/16    4,738  4,772,922 
Momentive Performance Materials (Blitz 06-103 GmbH),       
Tranche B-2B Term Loan, 4.36%, 5/05/15  EUR  652  874,461 
PGT Industries, Inc., Tranche A-2 Term Loan,       
6.75%, 2/14/12  USD  1,068  1,047,035 
      10,067,474 
Capital Markets — 1.9%       
American Capital Ltd., Term Loan B, 7.50%, 12/31/13    456  459,196 
HarbourVest Partners, Term Loan (First Lien),       
6.25%, 11/10/16    1,975  1,984,875 
Nuveen Investments, Inc.:       
Extended Term Loan (First Lien),       
5.80% – 5.81%, 5/13/17    1,753  1,746,353 
Non Extended Term Loan (First Lien), 3.30%, 11/13/14  1,222  1,184,902 
      5,375,326 
Chemicals — 6.9%       
AZ Chem US, Inc., Term Loan B, 6.75%, 11/18/16    1,187  1,199,353 
Chemtura Corp., Term Facility, 5.50%, 8/16/16    1,400  1,411,084 
General Chemical Corp., Tranche B Term Loan,       
7.25%, 9/30/15    1,995  2,024,925 
MacDermid, Inc., Tranche C Term Loan,       
3.07%, 4/12/14  EUR  542  723,507 
Nexeo Solutions LLC, Term Loan B, 5.00%, 8/31/17  USD  1,200  1,203,500 
PQ Corp. (FKA Niagara Acquisition, Inc.), Original Term       
Facility (First Lien), 3.52% – 3.56%, 7/30/14    1,871  1,840,975 
Rockwood Specialties Group, Inc., Term Loan B,       
3.75%, 2/01/18    1,750  1,768,594 
Solutia, Inc., Term Loan, 4.50%, 3/17/17    1,067  1,068,392 
Styron Sarl, Term Loan B, 6.00%, 7/27/17    2,700  2,724,300 
Tronox Worldwide LLC, Exit Term Loan, 7.00%, 12/24/15    2,775  2,798,116 
Univar, Inc., Term Loan B, 5.00%, 6/30/17    2,700  2,709,283 
      19,472,029 
Commercial Banks — 1.2%       
CIT Group, Inc., Tranche 3 Term Loan, 6.25%, 8/11/15    3,250  3,291,301 

 

See Notes to Financial Statements.

32 SEMI-ANNUAL REPORT FEBRUARY 28, 2011



Schedule of Investments (continued)
BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Commercial Services & Supplies — 4.0%       
ARAMARK Corp.:       
Letter of Credit - 1 Facility, 0.11%, 1/26/14  USD  16  $ 16,310 
Letter of Credit - 2 Facility, 0.11%, 7/26/16    24  23,576 
US Term Loan, 2.18%, 1/26/14    203  202,466 
US Term Loan B, 3.55%, 7/26/16    358  358,490 
AWAS Finance Luxembourg Sarl, Loan,       
7.75%, 6/10/16    523  537,056 
Advanced Disposal Services, Inc., Term Loan (First Lien),     
6.00%, 1/14/15    1,089  1,095,806 
Altegrity, Inc., (FKA US Investigations Services, Inc.),       
Tranche D Term Loan, 7.75%, 2/21/15    1,741  1,776,075 
Casella Waste Systems, Inc., Term Loan B,       
7.00%, 4/09/14    739  738,750 
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16    1,875  1,891,070 
Diversey, Inc. (FKA Johnson Diversey, Inc.), Tranche B       
Dollar Term Loan, 5.25%, 11/24/15    772  772,124 
Protection One, Inc., Term Loan, 6.00%, 6/04/16    864  866,341 
Quad/Graphics, Inc., Term Loan, 5.50%, 4/20/16    572  569,503 
Synagro Technologies, Inc., Term Loan (First Lien),       
2.27%, 4/02/14    1,548  1,439,580 
Volume Services America, Inc. (Centerplate),       
Term Loan B, 10.50% – 10.75%, 8/24/16    998  1,007,056 
      11,294,203 
Communications Equipment — 1.8%       
Avaya, Inc., Term Loan B:       
3.06%, 10/24/14    1,187  1,150,857 
4.81%, 10/24/17    1,927  1,887,796 
CommScope, Inc., Term Loan B, 5.00%, 1/06/18    2,000  2,029,166 
      5,067,819 
Construction & Engineering — 0.6%       
Safway Services, LLC, First Out Tranche Loan,       
9.00%, 12/18/17    1,700  1,700,000 
Construction Materials — 0.3%       
Fairmount Minerals Ltd., Tranche B Term Loan,       
6.25% – 6.75%, 8/05/16    832  841,018 
Consumer Finance — 1.5%       
Springleaf Financial Funding Co. (FKA AGFS Funding       
Co.), Term Loan, 7.25%, 4/21/15    4,100  4,136,490 
Containers & Packaging — 0.8%       
Anchor Glass Container Corp., Term Loan (First Lien),       
6.00%, 3/02/16    305  306,441 
Berry Plastics Holding Corp., Term Loan C,       
2.29% – 2.31%, 4/03/15    278  270,501 
Graham Packaging Co., LP:       
Term Loan C, 6.75%, 4/05/14    626  629,767 
Term Loan D, 6.00%, 9/16/16    1,097  1,105,676 
      2,312,385 
Diversified Consumer Services — 3.1%       
Coinmach Service Corp., Term Loan,       
3.26% – 3.31%, 11/14/14    3,241  3,038,357 
Laureate Education:       
Closing Date Term Loan, 3.55%, 8/17/14    1,174  1,149,621 
Delayed Draw Term Loan, 3.55%, 8/15/14    176  172,114 
Series A New Term Loan, 7.00%, 8/15/14    2,454  2,467,924 
ServiceMaster Co.:       
Closing Date Term Loan, 2.76% – 2.81%, 7/24/14  1,833  1,804,094 
Delayed Draw Term Loan, 2.77%, 7/24/14    183  179,661 
      8,811,771 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Diversified Financial Services — 2.6%       
MSCI, Inc., Term Loan B, 4.75%, 6/01/16  USD  1,617  $ 1,624,918 
Reynolds Group Holdings, Inc., Term Loan E,       
4.25%, 2/09/18    4,400  4,422,915 
Whitelabel IV SA (Ontex):       
Facility B1, 6.75%, 8/11/17  EUR  339  473,363 
Facility B2, 6.75%, 8/11/17    561  783,353 
      7,304,549 
Diversified Telecommunication Services — 2.7%       
Hawaiian Telcom Communications, Inc., Term Loan,       
9.00%, 10/28/15  USD  1,350  1,373,062 
Integra Telecom Holdings, Inc., Term Loan,       
9.25%, 4/15/15    1,617  1,636,277 
Level 3 Financing, Inc.:       
Incremental Tranche A Term Loan, 2.55%, 3/13/14    2,950  2,876,250 
Term Loan B, 11.50%, 3/13/14    250  268,125 
US Telepacific Corp., Term Loan B, 5.75%, 2/18/17    1,500  1,508,438 
      7,662,152 
Electric Utilities — 1.0%       
New Development Holdings LLC, Term Loan,       
7.00%, 7/03/17    2,923  2,951,024 
Electronic Equipment, Instruments & Components — 0.9%     
CDW LLC (FKA CDW Corp.):       
Extended Term Loan B, 3.51%, 7/15/17    986  985,656 
Non Extended Term Loan, 4.26%, 10/10/14    1,490  1,486,689 
Flextronics International Ltd., Delayed Draw:       
Term Loan A-2, 2.51%, 10/01/14    39  38,932 
Term Loan A-3, 2.51%, 10/01/14    46  45,421 
      2,556,698 
Energy Equipment & Services — 0.7%       
MEG Energy Corp., Tranche D Term Loan,       
6.00%, 4/03/16    2,055  2,073,342 
Food & Staples Retailing — 3.0%       
AB Acquisitions UK Topco 2 Ltd. (FKA Alliance Boots),       
Facility B1, 3.58%, 7/09/15  GBP  1,825  2,859,258 
Bolthouse Farms, Inc., Term Loan (First Lien),       
5.50% – 5.75%, 2/11/16  USD  1,052  1,058,399 
Pilot Travel Centers LLC, Initial Tranche B Term Loan,       
5.25%, 6/30/16    2,361  2,380,524 
Rite Aid Corp., Term Loan B, 6.00%, 7/09/14    473  473,442 
U.S. Foodservice, Inc., Term Loan B, 2.76%, 7/03/14    1,782  1,719,795 
      8,491,418 
Food Products — 6.2%       
Advance Pierre Foods, Term Loan (Second Lien):       
7.00%, 9/29/16    1,965  1,978,925 
11.25%, 9/29/17    1,100  1,127,500 
CII Investment, LLC (FKA Cloverhill):       
Delayed Draw Term Loan, 8.50%, 10/14/14    248  245,950 
Term Loan A, 8.50%, 10/14/14    755  747,435 
Term Loan B, 8.50%, 10/14/14    918  909,044 
Del Monte Corp., Term Loan B, 4.50%, 2/01/18    6,950  6,993,437 
Green Mountain Coffee Roasters, Inc., Term Loan B       
Facility, 5.50%, 11/09/16    1,000  1,006,563 
Michaels Stores, Inc.:       
Term Loan B1, 2.56% – 2.63%, 10/31/13    125  125,990 
Term Loan B1, 4.81% – 4.87%, 10/31/13    965  972,608 
Pinnacle Foods Finance LLC:       
Term Loan B, 2.76%, 4/02/14    300  298,875 
Tranche D Term Loan, 6.00%, 4/02/14    1,213  1,222,032 
Solvest, Ltd. (Dole):       
Tranche B-1 Term Loan, 5.00% – 5.50%, 3/02/17    493  496,395 
Tranche C-1 Term Loan, 5.00% – 5.50%, 3/02/17    1,227  1,234,687 
      17,359,441 

 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 33



Schedule of Investments (continued)
BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Health Care Equipment & Supplies — %       
Biomet, Inc., Dollar Term Loan,       
3.26% – 3.30%, 3/25/15  USD  339  $ 338,773 
DJO Finance LLC (FKA ReAble Therapeutics Finance LLC),       
Term Loan, 3.26%, 5/20/14    800  793,822 
Fresenius SE:       
Tranche C-1 Dollar Term Loan, 4.50%, 9/10/14    627  630,002 
Tranche C-2 Term Loan, 4.50%, 9/10/14    334  335,687 
      2,098,284 
Health Care Providers & Services — 6.2%       
CHS/Community Health Systems, Inc.:       
Delayed Draw Term Loan, 2.51% – 2.56%, 7/25/14    115  113,699 
Extended Term Loan, 3.76% – 3.81%, 1/25/17    784  785,336 
Non Extended Term Loan, 2.51% – 2.56%, 7/25/14    2,213  2,194,807 
ConvaTec, Inc., Dollar Term Loan, 5.75%, 12/22/16    1,300  1,305,958 
DaVita, Inc., Tranche B Term Loan, 4.50%, 10/20/16    1,700  1,712,131 
HCA, Inc.:       
Tranche A-1 Term Loan, 1.55%, 11/19/12    1,319  1,312,038 
Tranche B-1, Term Loan, 2.55%, 11/18/13    636  633,918 
Tranche B-2, Term Loan, 3.55%, 3/31/17    1,166  1,168,704 
Harden Healthcare, Inc.:       
Tranche A Additional Term Loan, 7.75%, 3/02/15    1,235  1,210,300 
Tranche A Term Loan, 8.50%, 2/22/15    720  705,778 
inVentiv Health, Inc. (FKA Ventive Health, Inc.):       
Term Loan B, 4.75%, 7/31/16    2,433  2,443,781 
Term Loan B2, 4.75%, 8/04/16    567  568,792 
Term Loan B2, 6.50%, 8/04/16    283  284,573 
Renal Advantage Holdings, Inc., Tranche B Term Loan,       
5.75%, 12/03/16    1,200  1,216,500 
Vanguard Health Holding Co. II, LLC (Vanguard Health       
Systems, Inc.), Initial Term Loan, 5.00%, 1/29/16    1,802  1,813,846 
      17,470,161 
Health Care Technology — 1.1%       
IMS Health, Inc., Tranche B Dollar, Term Loan,       
5.25%, 2/26/16    1,876  1,891,229 
MedAssets, Inc., Term Loan B, 5.25%, 11/15/16    1,200  1,209,000 
      3,100,229 
Hotels, Restaurants & Leisure — 9.2%       
BLB Management Services, Inc. (Wembly, Inc.) Loan (Exit),     
8.50%, 11/05/15    891  896,266 
Blackstone UTP Capital LLC, Loan, 7.75%, 11/06/14    1,485  1,514,700 
Boyd Gaming Corp., Term Loan A, 3.81%, 12/31/15    450  444,564 
Dunkin' Brands, Inc., Term Loan B, 4.25%, 11/09/17    2,300  2,315,799 
Gateway Casinos & Entertainment, Ltd., Term Loan B,       
6.50% – 7.50%, 5/12/16  CAD  2,370  2,450,073 
Harrah's Operating Co., Inc.:       
Term Loan B-1, 3.30%, 1/28/15  USD  192  178,472 
Term Loan B-2, 3.30%, 1/28/15    315  291,825 
Term Loan B-3, 3.30%, 1/28/15    6,983  6,483,570 
Term Loan B-4, 9.50%, 10/31/16    575  609,340 
Seaworld Parks & Entertainment, Inc. (FKA SW       
Acquisitions Co., Inc.), Term B Loan, 4.00%, 8/17/17    2,326  2,331,087 
Sea World, Term Loan B, 4.00%, 8/16/17    674  677,162 
Six Flags Theme Parks, Inc., Tranche B Term Loan       
(First Lien), 5.50%, 6/30/16    1,790  1,810,072 
Travelport LLC (FKA Travelport, Inc.):       
Delayed Draw Term Loan, 4.96%, 8/21/15    473  459,163 
Extended Delayed Draw Term Loan, 4.96%, 8/21/15    148  143,523 
Term Loan B, 4.96%, 8/21/15    720  699,661 
Universal City Development Partners Ltd., Term Loan,       
5.50%, 11/16/14    1,141  1,152,529 
VML US Finance LLC (FKA Venetian Macau):       
New Project Term Loan, 4.79%, 5/27/13    758  757,833 
Term B Delayed Draw Project Loan, 4.79%, 5/25/12    234  234,700 
Term B Delayed Draw Project Loan, 4.79%, 5/25/12    705  706,283 
Term B Funded Project Loan, 4.79%, 5/27/13    1,635  1,636,749 
      25,793,371 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Household Durables — 1.0%       
Visant Corp. (FKA Jostens):       
7.00%, 12/20/16  USD  1,475  $ 1,475,000 
Tranche B Term Loan, 7.00%, 12/20/16    1,297  1,308,356 
      2,783,356 
IT Services — 4.4%       
Ceridian Corp., US Term Loan, 3.26%, 11/09/14    1,247  1,228,300 
EVERTEC, Inc., Term Loan B, 7.00%, 8/20/16    413  416,614 
First Data Corp.:       
Initial Tranche B-1 Term Loan, 3.01%, 9/24/14    2,770  2,622,373 
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14    3,818  3,615,224 
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14    1,270  1,202,048 
TransUnion LLC, Replacement Term Loan, 4.75%, 2/03/18  3,235  3,252,789 
      12,337,348