FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-08271
FRANKLIN FLOATING RATE TRUST
(Exact name of registrant as specified in charter)
ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
(Address of principal executive offices) (Zip code)
MURRAY L. SIMPSON, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
Date of fiscal year end: 7/31
Date of reporting period: 10/31/04
Item 1. Schedule of Investments.
FRANKLIN FLOATING RATE TRUST
QUARTERLY STATEMENT OF INVESTMENTS
OCTOBER 31, 2004
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CONTENTS
Statement of Investments .................................................. 3
Notes to Statement of Investments ......................................... 19
[LOGO](R)
FRANKLIN(R) TEMPLETON(R)
INVESTMENTS
FRANKLIN o Templeton o Mutual Series
Quarterly Statement of Investments | 1
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FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED)
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COUNTRY PRINCIPAL AMOUNT VALUE
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Bonds 1.6%
Broadcasting 1.0%
Paxson Communications Corp., senior secured note, 144A, 4.35%,
1/15/10 ............................................................... United States $ 10,450,000 $ 10,567,563
Comcorp Holdings Inc., PIK, 12.50%, 6/04/10 ............................. United States 2,690,741 2,071,870
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12,639,433
---------------
Financial Conglomerates .2%
Finova Group Inc., 7.50%, 11/15/09 ...................................... United States 4,686,220 2,155,661
---------------
Steel .4%
Ispat Inland ULC, senior secured note, 8.35%, 4/01/10 ................... United States 5,000,000 5,512,500
---------------
Wireless Communications
Cricket Communications Inc., senior secured note, PIK, 13.00%,
8/16/11 ............................................................... United States 230,100 252,823
---------------
Total Bonds (Cost $21,448,458) .......................................... 20,560,417
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Senior Floating Rate Interests 83.0%
Advertising/Marketing Services .3%
Adams Outdoor Advertising,
Second Lien Term Loan, 5.58%, 4/05/12 ................................ United States 1,000,000 1,018,125
Term Loan, 4.23 - 4.33%, 10/05/11 .................................... United States 2,992,500 3,034,269
(a)DIMAC Holdings, Term Loan B, 10.00%, 3/31/05 ............................ United States 558,337 --
---------------
4,052,394
---------------
Aerospace & Defense 2.0%
Anteon International Corp., Term Loan B, 3.725%, 12/19/10 ............... United States 2,977,500 3,016,115
CACI International Inc., Term Loan B, 3.21 - 3.45%, 4/23/11 ............. United States 995,000 1,004,950
DRS Technologies Inc., Term Loan B, 3.53 - 4.01%, 11/04/10 .............. United States 1,598,644 1,613,631
ILC Industries Inc.,
First Lien Term Loan, 4.90%, 8/04/10 ................................. United States 992,500 1,008,817
Second Lien Term Loan, 7.65%, 2/05/11 ................................ United States 500,000 504,710
Standard Aero Holdings Inc., Term Loan B, 4.451 - 4.525%, 8/18/12 ....... United States 1,356,923 1,376,429
Titan Corp., Term Loan B, 4.61 - 4.69%, 2/23/06 ......................... United States 10,256,023 10,393,844
TransDigm Inc., Term Loan B, 4.09%, 7/22/10 ............................. United States 992,512 1,006,470
United Defense Industries Inc., Term Loan B, 3.96 - 3.98%, 8/13/09 ...... United States 772,487 780,116
Vought Aircraft Industries,
Term Loan B, 3.50%, 6/30/07 .......................................... United States 276,496 279,779
Term Loan C, 3.50%, 6/30/08 .......................................... United States 2,059,114 2,083,566
Term Loan X, 5.21%, 12/31/06 ......................................... United States 2,034,329 2,047,410
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25,115,837
---------------
Apparel/Footwear .2%
St. John Knits Inc., Term Loan B, 5.938%, 7/31/07 ....................... United States 2,124,704 2,141,304
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Quarterly Statement of Investments | 3
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT VALUE
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Senior Floating Rate Interests (cont.)
Auto Parts: Original Equipment Manufacturer 4.7%
Dayco Products LLC, Term Loan B, 4.87 - 5.12%, 6/18/11 .................. United States $ 5,286,750 $ 5,372,660
Exide Technologies,
USD EURO Borrower, 5.25%, 5/04/10 .................................... United States 1,000,000 1,002,500
USD US Borrower, 5.25%, 5/04/10 ...................................... United States 1,000,000 1,002,500
Federal-Mogul Corp., DIP, Term Loan, 4.938%, 2/06/05 .................... United States 959,540 962,007
GenCorp Inc., Term Loan B, 5.875%, 3/28/07 .............................. United States 8,345,965 8,391,175
Grand Vehicle Works, Term Loan B, 4.92 - 5.08%, 7/23/10 ................. United States 1,246,875 1,237,523
Hayes Lemmerz, Term Loan, 5.33 - 6.00%, 6/03/09 ......................... United States 8,567,500 8,724,457
Hilite International Inc., Term Loan B, 6.21 - 6.56%, 3/31/09 ........... United States 810,650 814,704
Key Plastics and Key Safety,
First Lien Term Loan, 4.78 - 4.84%, 7/31/10 .......................... United States 2,493,750 2,524,144
Term Loan C, 7.53 - 7.71%, 7/31/11 ................................... United States 2,000,000 2,003,750
Metaldyne Corp., Term Loan D, 6.313%, 12/31/09 .......................... United States 1,302,784 1,299,798
Plastech Engineered Products Inc., First Lien Term Loan, 4.73%,
3/11/10 ............................................................... United States 1,468,966 1,493,754
Progressive Moulded Products, Term Loan B, 4.52 - 4.844%, 8/13/11 ....... Canada 1,000,000 1,003,438
Tenneco Automotive Inc.,
L/C Term Loan, 4.88%, 12/12/10 ....................................... United States 4,655,172 4,744,398
Term Loan B, 4.84%, 12/12/10 ......................................... United States 10,267,241 10,459,752
TRW Automotive Inc.,
Term Loan A1, 3.625%, 2/28/09 ........................................ United States 2,987,989 3,027,580
Term Loan D1, 4.125%, 2/28/11 ........................................ United States 4,792,337 4,872,709
Term Loan E, 5.25%, 10/31/10 ......................................... United States 2,000,000 2,000,000
---------------
60,936,849
---------------
Automotive Aftermarket .3%
Keystone Automotive Operations Inc., Term Loan, 4.25 - 4.438%,
10/30/09 .............................................................. United States 2,336,956 2,367,264
United Components Inc., Term Loan C, 4.00%, 6/30/10 ..................... United States 856,667 869,320
---------------
3,236,584
---------------
Beverages: Alcoholic .2%
Constellation Brands Inc., Term Loan B, 3.50%, 11/30/08 ................. United States 1,000,000 1,005,982
Southern Wine & Spirits of America Inc., Term Loan B, 4.23%,
6/21/08 ............................................................... United States 989,910 1,003,057
---------------
2,009,039
---------------
Beverages: Non-Alcoholic .4%
Dr. Pepper Bottling Co. of Texas, Term Loan, 4.16 - 4.47%, 12/18/10 ..... United States 3,186,079 3,232,277
Sunny Delight Beverages Co., First Lien Term Loan, 5.98%, 8/23/10 ....... United States 2,000,000 2,005,000
---------------
5,237,277
---------------
Broadcasting 1.7%
Cumulus Media Inc., Term Loan E, 3.625%, 3/28/10 ........................ United States 1,396,500 1,419,193
Emmis Operating Co., Term Loan B, 3.59%, 11/10/11 ....................... United States 8,250,000 8,338,687
Entravision Communications Corp.,
Multi-Draw Term Loan, 3.65%, 2/23/12 ................................. United States 1,500,000 1,517,344
Term Loan B, 3.65%, 2/23/12 .......................................... United States 3,000,000 3,034,689
4 | Quarterly Statement of Investments
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT VALUE
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Senior Floating Rate Interests (cont.)
Broadcasting (cont.)
Gray Television, Term Loan C, 3.45 - 3.76%, 12/31/10 .................... United States $ 1,750,000 $ 1,770,563
Mission Broadcasting Inc., Term Loan D, 3.73%, 12/31/10 ................. United States 645,192 645,998
NEP Supershooters LP, First Lien Term Loan, 5.70%, 2/03/11 .............. United States 1,500,000 1,516,875
Nexstar Finance LLC, Term Loan D, 3.35%, 12/31/10 ....................... United States 352,309 353,409
Sinclair Broadcasting,
Term Loan A, 3.71%, 6/30/09 .......................................... United States 1,500,000 1,510,313
Term Loan C, 3.71%, 12/31/09 ......................................... United States 1,500,000 1,516,250
---------------
21,623,321
---------------
Building Products 1.6%
Atrium Cos. Inc., Term Loan, 4.70 - 4.82%, 11/30/08 ..................... United States 997,488 1,014,113
Builders FirstSource Inc., Term Loan, 5.04%, 3/17/10 .................... United States 1,661,650 1,676,190
Building Materials Holding Corp., Term Loan B, 4.75%, 8/13/10 ........... United States 987,500 993,055
Headwaters Inc., Term Loan B, 5.33 - 7.00%, 4/30/11 ..................... United States 4,812,500 4,870,649
Masonite International Corp.,
Term Loan C, 4.563%, 8/31/08 ......................................... United States 2,833,546 2,870,294
Term Loan C2, 4.063%, 8/31/08 ........................................ United States 994,997 1,012,099
NCI Building Systems, Term Loan B, 3.82 - 3.84%, 6/07/10 ................ United States 2,750,000 2,785,236
Norcraft Cos. LP, Term Loan, 4.96%, 10/21/09 ............................ United States 677,778 682,156
Nortek Inc., Term Loan, 4.62 - 6.25%, 8/25/11 ........................... United States 4,000,000 4,063,332
Ply Gem Industries Inc., Incremental Term Loan, 4.59%, 2/12/11 .......... United States 1,000,000 1,009,688
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20,976,812
---------------
Cable/Satellite Television 8.1%
Bresnan Broadband Holdings LLC,
Term Loan A, 5.73 - 6.01%, 3/31/10 ................................... United States 1,250,000 1,265,625
Term Loan B, 5.31 - 5.48%, 9/30/10 ................................... United States 1,000,000 1,014,063
Century Cable (Adelphia),
Discretionary Term Loan, 6.75%, 12/31/09 ............................. United States 3,000,000 2,957,187
Term Loan, 6.75%, 12/31/09 ........................................... United States 1,000,000 989,286
Charter Communications Operating LLC, Term Loan B, 5.29 - 5.38%,
4/23/11 ............................................................... United States 9,476,250 9,414,749
DirecTV Holdings LLC, Term Loan, 3.95 - 4.07%, 3/06/10 .................. United States 9,085,102 9,213,202
Grapeclose Ltd. (Inmarsat),
Term Loan B, 4.829 - 4.889%, 10/10/10 ................................ United Kingdom 5,750,000 5,783,425
Term Loan C, 5.329 - 5.389%, 10/10/11 ................................ United Kingdom 5,750,000 5,801,750
Insight Midwest,
Additional Term Loan, 4.75%, 12/31/09 ................................ United States 3,970,000 4,033,135
Term Loan B, 4.563%, 12/31/09 ........................................ United States 2,977,500 3,024,851
MCC Iowa (Broadband), Term Loan B1, 4.17 - 4.48%, 9/12/10 ............... United States 2,992,500 3,024,295
Mediacom LLC Group, Term Loan B, 4.16 - 4.47%, 4/01/13 .................. United States 5,000,000 5,040,180
(b)NTL Investment Holdings, Term Loan B, 5.204%, 5/31/12 ................... United Kingdom 12,500,000 12,632,813
Olympus Cable Holdings (Adelphia), Term Loan B, 6.75%, 9/30/10 .......... United States 2,000,000 1,974,218
Panamsat Corp., Term Loan B, 4.66%, 8/01/11 ............................. United States 6,000,000 6,040,566
UCA-HHC (Adelphia), Term Loan, 6.00%, 3/31/08 ........................... United States 20,935,000 20,579,105
UPC Distribution Holdings B.V., Term Loan C2, 7.325 - 7.3813%,
3/31/09 ............................................................... United States 11,442,500 11,657,047
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104,445,497
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Quarterly Statement of Investments | 5
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT VALUE
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Senior Floating Rate Interests (cont.)
Casinos/Gaming 2.7%
Alliance Gaming Corp., Term Loan B, 3.538%, 8/22/09 ..................... United States $ 1,814,326 $ 1,837,567
Ameristar Casinos Inc., Term Loan B1, 4.00%, 12/20/06 ................... United States 2,862,465 2,898,246
Boyd Gaming, Term Loan B, 3.69 - 3.92%, 5/14/11 ......................... United States 1,995,000 2,022,182
Global Cash Access LLC, Term Loan, 4.71%, 3/10/10 ....................... United States 975,000 992,672
Greektown Casinos, Term Loan D, 5.19 - 5.34%, 12/31/05 .................. United States 4,368,430 4,417,575
Green Valley Ranch Gaming LLC, Term Loan B, 4.725%, 12/05/10 ............ United States 992,500 1,007,387
Isle of Capri, Term Loan B, 3.98 - 4.225%, 4/25/08 ...................... United States 825,000 835,312
Isle of Capri Black Hawk LLC, Term Loan C, 4.68 - 5.06%, 12/31/07 ....... United States 987,419 1,000,868
Marina District Finance Co. Inc., Term Loan B, 3.93%, 10/14/11 .......... United States 2,800,000 2,821,582
Penn National Gaming Inc., Term Loan D, 4.48%, 3/03/09 .................. United States 1,935,892 1,966,325
Scientific Games Corp., Term Loan C, 4.50%, 12/31/09 .................... United States 6,255,704 6,349,539
Venetian Casino Resorts, Term Loan B, 4.29%, 8/01/11 .................... United States 8,377,273 8,532,604
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34,681,859
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Catalog/Specialty Distribution .1%
Affinity Group Inc.,
Term Loan B1, 5.975 - 6.02%, 6/23/09 ................................. United States 230,408 233,096
Term Loan B2, 5.975%, 6/23/09 ........................................ United States 576,020 582,741
Oriental Trading Co. Inc., Term Loan B, 4.75%, 7/29/10 .................. United States 927,058 941,543
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1,757,380
---------------
Chemicals: Major Diversified 1.7%
Celanese, Term Loan, 4.48 - 4.53%, 4/06/11 .............................. Luxembourg 4,000,000 4,075,000
Huntsman International LLC, Term Loan B, 5.188%, 12/31/10 ............... United States 8,000,000 8,142,000
Huntsman LLC, Term Loan B, 5.44%, 3/31/10 ............................... United States 1,200,000 1,218,625
(b)Invista Canada Co., Term Loan B2, 4.75%, 4/29/11 ........................ Canada 2,447,059 2,490,519
(b)Invista SARL, Term Loan B1, 4.75%, 4/29/11 .............................. Luxembourg 5,552,941 5,660,529
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21,586,673
---------------
Chemicals: Specialty 1.5%
Brenntag, Term Loan B2, 4.922%, 2/27/12 ................................. United States 1,500,000 1,526,250
Ineos Group Ltd., Term Loan C, 5.476 - 5.671%, 6/30/09 .................. United States 2,154,834 2,188,503
Nalco Co., Term Loan B, 4.42 - 4.43%, 11/04/10 .......................... United States 8,659,533 8,821,224
Rockwood Specialties Group Inc., Term Loan B, 4.63%, 7/30/11 ............ United States 5,300,000 5,360,038
Sovereign Specialty Chemicals Inc., Term Loan B, 6.341%, 12/31/07 ....... United States 982,500 978,816
Westlake Chemical Corp., Term Loan B, 4.27 - 7.50%, 7/31/10 ............. United States 754,167 764,065
---------------
19,638,896
---------------
Coal .3%
CONSOL Energy Inc., Term Loan B, 4.34%, 6/08/10 ......................... United States 1,000,000 1,020,938
Foundation Coal, Term Loan B, 4.04%, 7/30/11 ............................ United States 2,650,000 2,683,125
---------------
3,704,063
---------------
Commercial Printing/Forms .1%
American Reprographics, Term Loan B, 4.84%, 6/17/09 ..................... United States 992,500 1,010,489
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Construction Materials .2%
St. Marys Cement Inc., Term Loan B, 3.975%, 11/24/09 .................... Canada 2,977,500 3,008,207
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6 | Quarterly Statement of Investments
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT VALUE
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Senior Floating Rate Interests (cont.)
Consumer Sundries .7%
Central Garden & Pet Co., Term Loan, 4.21%, 5/14/09 ..................... United States $ 1,975,000 $ 1,998,453
NBTY Inc., Term Loan C, 3.75%, 7/22/09 .................................. United States 691,248 698,541
Rayovac Corp., Term Loan C, 4.213 - 4.56%, 10/01/09 ..................... United States 2,164,637 2,182,950
United Industries Corp.,
Second Lien Term Loan, 6.48%, 10/31/11 ............................... United States 1,147,125 1,167,917
Term Loan B, 4.48 - 4.63%, 4/30/11 ................................... United States 2,988,261 3,038,687
---------------
9,086,548
---------------
Containers/Packaging 1.4%
ACI Operations Property Ltd., Term Loan A, 4.48%, 4/01/07 ............... Australia 754,857 766,966
Berry Plastics Corp., Term Loan C, 3.71%, 7/22/10 ....................... United States 1,418,261 1,438,649
Graham Packaging Co.,
First Lien Term Loan, 4.375 - 6.25%, 9/01/11 ......................... United States 8,000,000 8,122,504
Second Lien Term Loan, 6.125%, 3/01/12 ............................... United States 374,302 383,581
Graphic Packaging International Corp., Term Loan C, 4.46 - 4.63%,
8/08/10 ............................................................... United States 3,928,478 4,004,690
Greif Brothers, Term Loan B, 3.88%, 8/15/09 ............................. United States 214,225 216,581
Kerr Group Inc., Term Loan B, 5.48 - 7.00%, 8/11/10 ..................... United States 1,742,837 1,761,355
Owens-Brockway Glass Container Inc., Term Loan B, 4.64%, 4/01/08 ........ United States 1,785,714 1,817,336
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18,511,662
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Data Processing Services .3%
InfoUSA Inc.,
Term Loan A, 4.17%, 3/25/08 .......................................... United States 916,667 927,639
Term Loan B, 6.411%, 6/04/10 ......................................... United States 2,992,500 3,028,320
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3,955,959
---------------
Drug Store Chains 1.4%
Duane Reade Inc., Term Loan, 5.21%, 7/30/10 ............................. United States 1,000,000 1,012,875
General Nutrition Centers Inc., Term Loan, 4.94%, 12/04/09 .............. United States 992,500 1,003,666
Jean Coutu Group, Term Loan B, 4.25 - 4.438%, 7/28/11 ................... United States 9,500,000 9,658,156
Rite Aid Corp., Term Loan, 3.59 - 3.68%, 8/23/09 ........................ United States 6,000,000 6,067,500
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17,742,197
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Electric Utilities 4.1%
AES Corp., Term Loan B, 4.00 - 6.00%, 4/30/08 ........................... United States 1,857,143 1,888,482
Calpine Corp., Second Lien Term Loan, 7.82%, 7/15/07 .................... United States 10,852,575 9,141,037
Calpine Generating Co., First Priority Term Loan, 5.59%, 3/22/09 ........ United States 2,500,000 2,515,312
Centerpoint Energy Inc., Term Loan B, 5.34%, 10/07/06 ................... United States 15,827,027 15,906,162
Cogentrix Delaware Holdings Inc., Term Loan, 4.21%, 2/19/09 ............. United States 3,980,000 4,052,965
Coleto Creek WLE LP,
Term Loan B, 4.225%, 7/31/11 ......................................... United States 1,745,625 1,780,174
Term Loan C, 5.63%, 7/31/12 .......................................... United States 1,000,000 1,016,667
Dynegy Holdings Inc., Term Loan B, 5.84%, 5/27/10 ....................... United States 4,987,500 5,098,163
Midwest Generation, Term Loan, 4.38 - 5.47%, 4/27/11 .................... United States 1,906,261 1,937,436
NRG Energy, Term Loan B, 1.875 - 5.93%, 6/23/10 ......................... United States 576,064 594,930
Pike Electric Inc., Term Loan B, 4.125%, 7/02/12 ........................ United States 3,227,058 3,286,895
Quanta Services Inc., Term Loan B, 1.84 - 4.89%, 12/15/08 ............... United States 3,000,000 3,030,000
Quarterly Statement of Investments | 7
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT VALUE
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Senior Floating Rate Interests (cont.)
Electric Utilities (cont.)
Teton Power Funding LLC, Term Loan B, 5.16%, 2/20/11 .................... United States $ 848,782 $ 862,575
TNP Enterprises, Term Loan, 6.983%, 12/31/06 ............................ United States 987,500 1,006,016
---------------
52,116,814
---------------
Electrical Products .1%
Enersys Capital Inc., Term Loan D, 3.62 - 3.921%, 3/17/11 ............... United States 1,446,375 1,456,051
---------------
Electronic Components .2%
Seagate Technology HDD Holdings, Term Loan B, 3.938%, 5/13/07 ........... Cayman Islands 2,100,042 2,132,330
Seagate Technology (US) Holdings, Term Loan B, 3.938%, 5/13/07 .......... United States 839,958 852,872
---------------
2,985,202
---------------
Electronics/Appliances .6%
(b)Alliance Laundry Systems LLC, Term Loan, 5.025%, 7/31/09 ................ United States 2,900,000 2,927,188
Directed Electronics Inc., Term Loan, 6.14 - 6.38%, 6/15/10 ............. United States 2,743,125 2,765,413
Juno Lighting Inc., First Lien Term Loan, 4.34 - 6.25%, 10/21/10 ........ United States 2,219,697 2,251,605
---------------
7,944,206
---------------
Engineering & Construction 1.0%
Brand Services Inc., Term Loan B, 5.09 - 5.21%, 10/16/09 ................ United States 791,359 798,283
URS Corp., Term Loan B, 3.941%, 8/22/08 ................................. United States 2,802,259 2,818,899
Washington Group, Synthetic Term Loan, 1.86%, 10/01/07 .................. United States 9,700,000 9,712,610
---------------
13,329,792
---------------
Environmental Services 1.6%
Allied Waste North America Inc.,
L/C Term Loan, 4.119%, 1/15/10 ....................................... United States 2,121,429 2,146,290
Term Loan B, 4.42 - 4.63%, 1/15/10 ................................... United States 10,061,917 10,178,012
Term Loan C, 4.63 - 4.67%, 1/15/10 ................................... United States 983,951 994,559
Duratek Inc., Term Loan B, 5.938 - 6.125%, 12/16/09 ..................... United States 1,565,217 1,565,217
EnviroSolutions Inc.,
Delay Draw, 6.35%, 3/01/09 ........................................... United States 864,545 864,545
Term Loan B, 6.35%, 3/01/09 .......................................... United States 1,317,273 1,317,274
IESI Corp., Term Loan, 5.07 - 5.09%, 10/10/10 ........................... United States 990,000 1,005,469
Waste Connections Inc., Term Loan, 3.37 - 3.66%, 10/22/10 ............... United States 2,970,000 3,006,198
---------------
21,077,564
---------------
Finance/Rental/Leasing .5%
United Rentals (North America) Inc.,
L/C Term Loan, 4.03 - 4.21%, 2/11/11 ................................. United States 1,053,333 1,064,306
Term Loan B, 3.611%, 2/11/11 ......................................... United States 5,306,667 5,373,663
---------------
6,437,969
---------------
Food Distributors .2%
Doane Pet Care Co.,
Term Loan B, 6.86%, 12/31/05 ......................................... United States 158,310 159,299
Term Loan C, 7.23%, 12/31/06 ......................................... United States 81,043 81,583
8 | Quarterly Statement of Investments
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT VALUE
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Senior Floating Rate Interests (cont.)
Food Distributors (cont.)
OSI Group LLC,
Dutch Term Loan, 4.27%, 9/02/11 ...................................... United States $ 750,000 $ 759,844
German Term Loan, 4.27%, 9/02/11 ..................................... United States 600,000 607,875
U.S. Term Loan, 4.27%, 9/02/11 ....................................... United States 1,350,000 1,368,985
---------------
2,977,586
---------------
Food: Major Diversified 1.9%
Birds Eye Foods Inc. (Agrilink Foods), Term Loan B, 4.71%, 8/08/08 ...... United States 7,452,119 7,554,585
Del Monte Corp., Term Loan B, 4.38%, 12/20/10 ........................... United States 635,972 647,996
Dole Food Co. Inc., Term Loan D, 4.00 - 4.375%, 3/28/08 ................. United States 1,366,269 1,390,015
Luiginos Inc., Term Loan, 4.813 - 5.00%, 4/02/11 ........................ United States 4,477,500 4,519,476
Pinnacle Foods Holding Corp., Term Loan B, 4.20 - 4.26%, 11/25/10 ....... United States 9,950,000 10,049,500
---------------
24,161,572
---------------
Food: Meat/Fish/Dairy .5%
American Seafoods, Term Loan B, 4.25 - 4.438%, 4/15/09 .................. United States 1,270,899 1,279,240
Keystone Foods Intermediate LLC, Term Loan, 4.25 - 4.438%, 6/15/11 ...... United States 983,214 994,275
Land O'Lakes Inc., Term Loan B, 5.71%, 10/11/08 ......................... United States 695,661 707,980
Michael Foods Inc., Term Loan B, 3.84 - 4.214%, 11/21/10 ................ United States 1,985,000 2,014,156
Pierre Foods Inc., Term Loan B, 4.30 - 4.48%, 6/29/10 ................... United States 997,500 1,006,228
---------------
6,001,879
---------------
Food: Specialty/Candy 1.1%
Atkins Nutritionals Inc., First Lien Term Loan, 5.23%, 11/21/09 ......... United States 1,895,000 1,565,270
Leiner Health Products Inc., Term Loan B, 4.89%, 6/09/11 ................ United States 1,995,000 2,024,925
Meow Mix,
First Lien Term Loan, 6.12 - 6.20%, 8/21/09 .......................... United States 3,764,718 3,689,424
Second Lien Term Loan, 8.84%, 8/21/09 ................................ United States 1,000,000 945,000
Nellson Neutraceuticals Inc.,
First Lien Term Loan, 4.98%, 10/04/09 ................................ United States 2,266,913 2,249,911
Second Lien Term Loan, 7.48%, 4/04/10 ................................ United States 1,000,000 960,000
Otis Spunkmeyer Inc., Term Loan B, 5.625%, 6/21/11 ...................... United States 1,995,000 2,019,937
Reddy Ice Group Inc., Term Loan, 4.46%, 8/15/09 ......................... United States 990,000 1,002,169
---------------
14,456,636
---------------
Forest Products .2%
Roseburg Forest Products (RLC Industries), Term Loan B, 3.96%,
2/20/10 ............................................................... United States 2,124,107 2,137,383
---------------
Home Furnishings 1.3%
Knoll Inc., Term Loan, 4.84%, 10/01/11 .................................. United States 4,000,000 4,051,200
National Bedding Co., Term Loan B, 3.84 - 3.93%, 8/21/08 ................ United States 4,674,513 4,730,023
Sealy Mattress Co., Term Loan C, 4.29 - 4.34%, 4/02/12 .................. United States 1,958,007 1,986,153
Simmons Holdings Inc., Term Loan B, 3.875 - 4.75%, 12/02/11 ............. United States 3,427,407 3,465,966
Springs Industries Inc., Term Loan B, 6.00%, 9/05/08 .................... United States 1,957,021 1,970,170
---------------
16,203,512
---------------
Home Improvement Chains .2%
Harbor Freight Tools USA Inc., Term Loan B, 4.461 - 4.639%, 7/15/10 ..... United States 2,000,000 2,020,626
---------------
Quarterly Statement of Investments | 9
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------------------------
Senior Floating Rate Interests (cont.)
Homebuilding .6%
Lake Las Vegas Resort Lenders, Term Loan B, 4.516%, 11/01/09 ............ United States $ 1,000,000 $ 1,000,000
LandSource Communities Development LLC, Term Loan B, 4.50%,
3/31/10 ............................................................... United States 6,000,000 6,101,250
---------------
7,101,250
---------------
Hospital/Nursing Management 2.1%
Ardent Health Services LLC, Term Loan B, 5.75%, 8/12/11 ................. United States 4,500,000 4,504,221
Beverly Enterprises Inc., Term Loan B, 4.43 - 4.73%, 10/22/08 ........... United States 1,980,000 2,011,349
Community Health Systems Inc., Term Loan B, 3.54%, 8/19/11 .............. United States 2,000,000 2,008,572
Iasis Healthcare LLC, Term Loan B, 4.225 - 4.25%, 6/22/11 ............... United States 9,226,875 9,363,359
MedCath Corp., Term Loan B, 5.06 - 6.50%, 7/02/11 ....................... United States 2,493,750 2,530,378
National Mentor Inc., Term Loan B, 7.00%, 11/01/11 ...................... United States 1,200,000 1,200,000
Triad Hospitals Inc., Term Loan B, 4.21%, 9/30/08 ....................... United States 740,268 751,557
Vanguard Health Holding Co. II LLC, Term Loan B, 4.21 - 5.31%,
9/23/11 ............................................................... United States 4,750,000 4,834,612
---------------
27,204,048
---------------
Hotel/Resorts/Cruiselines .1%
Wyndham International Inc., Term Loan B, 6.625%, 6/30/06 ................ United States 1,877,781 1,882,476
---------------
Household/Personal Care .3%
Prestige Brands Inc., Term Loan B, 4.86%, 6/24/11 ....................... United States 3,482,500 3,518,049
---------------
Industrial Conglomerates 1.2%
Invensys (BTR Dunlop),
Bonding Facility, 4.821%, 3/05/09 .................................... United States 2,000,000 2,021,250
Term Loan B, 4.611%, 9/05/09 ......................................... United States 1,235,723 1,253,487
Roper Industries Inc., Term Loan, 3.59 - 4.12%, 12/19/08 ................ United States 2,887,500 2,897,427
SPX Corp., Term Loan B, 3.938%, 9/30/09 ................................. United States 3,243,241 3,281,754
TriMas Corp., Term Loan B, 5.50 - 5.625%, 12/06/09 ...................... United States 5,727,117 5,784,388
---------------
15,238,306
Industrial Machinery 1.6%
Colfax Corp.,
Term Loan B, 4.875%, 5/30/09 ......................................... United States 2,985,414 3,000,341
Term Loan C, 8.25%, 5/30/10 .......................................... United States 1,000,000 1,012,500
Dresser Inc., Unsecured Term Loan, 5.19%, 3/01/10 ....................... United States 1,500,000 1,515,937
Dresser-Rand Group Inc., Term Loan B, 4.068%, 10/26/11 .................. United States 2,500,000 2,539,845
Flowserve Corp., Term Loan C, 4.563 - 4.75%, 6/30/09 .................... United States 908,262 923,305
Gleason Corp., Term Loan, 4.52 - 4.70125%, 7/20/11 ...................... United States 4,000,000 4,050,000
Itron Inc., Term Loan B, 4.25%, 11/24/10 ................................ United States 1,724,730 1,742,336
Rexnord Corp., Term Loan, 5.01 - 6.50%, 11/25/09 ........................ United States 1,755,556 1,773,111
Sensus Metering Systems Inc., Term Loan, 4.391 - 4.421%, 12/16/10 ....... United States 3,940,000 3,978,581
---------------
20,535,956
---------------
10 | Quarterly Statement of Investments
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------------------------
Senior Floating Rate Interests (cont.)
Industrial Specialties .6%
Ionics Inc., Term Loan B, 4.73%, 2/01/11 ................................ United States $ 5,237,028 $ 5,304,130
Polypore, Term Loan B, 4.21%, 11/13/11 .................................. United States 2,244,375 2,273,833
---------------
7,577,963
---------------
Information Technology Services 1.3%
Relizon Co.,
(b)Incremental Term Loan, 5.02%, 2/20/11 ............................... United States 350,807 350,807
Term Loan B, 4.73%, 2/20/11 ......................................... United States 2,268,422 2,284,017
Transfirst Holdings, Term Loan B, 5.70%, 3/31/10 ........................ United States 4,987,500 5,031,141
Verifone Inc., Term Loan B, 4.63%, 6/30/11 .............................. United States 997,500 1,013,086
Worldspan, Term Loan, 5.813 - 7.50%, 6/30/07 ............................ United States 935,801 940,774
Xerox Corp., Term Loan, 3.73%, 9/30/08 .................................. United States 7,500,000 7,557,810
---------------
17,177,635
---------------
Insurance Brokers/Services .3%
Alliant Resources Group Inc., Term Loan B, 5.475 - 5.67%, 8/31/11 ....... United States 3,740,625 3,792,059
---------------
Investment Banks/Brokers .4%
Refco Group Ltd. LLC, Term Loan B, 4.66%, 7/28/11 ....................... United States 5,000,000 5,014,585
---------------
Life/Health Insurance .8%
Conseco Inc., Term Loan, 5.41%, 6/22/10 ................................. United States 9,975,000 10,184,894
---------------
Major Telecommunications .8%
Alec Holdings, Term Loan B, 5.25%, 8/20/10 .............................. United States 4,962,500 5,013,157
Consolidated Communications Inc., Term Loan B, 4.48 - 4.725%,
10/14/11 .............................................................. United States 2,491,667 2,516,583
(a)E.Spire Communications, Term Loan C, 8.75%, 8/01/06 ..................... United States 16,877,867 --
Qwest Corp., Term Loan A, 6.50%, 6/30/07 ................................ United States 3,000,000 3,122,946
(a)WCI Capital Corp., Term Loan B, 10.25%, 3/31/07 ......................... United States 30,500,000 --
(a)Winstar Communications Inc., DIP, 7.75%, 2/20/49 ........................ United States 3,926,973 393
---------------
10,653,079
---------------
Managed Health Care .3%
Multiplan Inc., Term Loan, 4.73%, 3/04/09 ............................... United States 2,487,500 2,515,484
Pacificare Health Systems Inc., Term Loan, 4.113 - 4.56%, 6/03/08 ....... United States 987,500 996,553
---------------
3,512,037
---------------
Marine Shipping .2%
Horizon Lines LLC, Term Loan, 4.73%, 7/07/11 ............................ United States 2,294,250 2,336,310
(b)U.S. Shipping Partners LP, Term Loan, 3.87%, 4/25/09 .................... United States 480,769 486,178
---------------
2,822,488
---------------
Media Conglomerates .3%
Canwest Media Inc., Term Loan E, 4.065%, 5/15/09 ........................ Canada 3,765,232 3,810,491
---------------
Medical Distributors .5%
VWR International Inc., Term Loan B, 4.58%, 4/07/11 ..................... United States 6,407,334 6,519,462
---------------
Quarterly Statement of Investments | 11
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------------------------
Senior Floating Rate Interests (cont.)
Medical Specialties .5%
Conmed Corp., Term Loan C, 4.15 - 4.16%, 12/15/09 ....................... United States $ 856,741 $ 864,460
DJ Orthopedics Inc., Term Loan B, 4.25 - 4.563%, 6/03/09 ................ United States 962,500 972,727
Fisher Scientific International Inc., Term Loan B, 3.46%, 6/30/11 ....... United States 1,995,000 2,014,014
Medex Inc., Term Loan B, 4.89%, 5/21/09 ................................. United States 987,500 1,000,256
PerkinElmer Inc., Term Loan B, 3.94%, 12/26/08 .......................... United States 2,153,333 2,178,232
---------------
7,029,689
---------------
Medical/Nursing Services 2.4%
Alliance Imaging, Term Loan C, 4.25 - 4.50%, 11/30/08 ................... United States 1,321,684 1,318,174
Davita Inc., Term Loan B, 3.74 - 4.17%, 6/30/10 ......................... United States 9,534,765 9,666,612
Insight Health Services, Term Loan B, 5.475%, 10/17/08 .................. United States 9,000,000 8,977,500
MedQuest Inc., Term Loan B, 5.73%, 7/31/09 .............................. United States 987,500 994,906
Sheridan Healthcare, Term Loan B, 4.44 - 6.50%, 3/31/10 ................. United States 975,000 984,243
Team Health Inc., Term Loan B, 5.23%, 3/23/11 ........................... United States 4,735,693 4,780,090
US Oncology Inc., Term Loan B, 4.688 - 4.875%, 8/20/11 .................. United States 3,990,000 4,029,900
---------------
30,751,425
---------------
Miscellaneous Commercial Services 2.1%
Buhrmann, Term Loan C1, 4.32%, 12/02/10 United States 5,260,316 5,323,913
CCC Information Services Inc., Term Loan B, 4.96%, 8/15/10 .............. United States 1,628,708 1,640,923
Corrections Corp. (Prision Realty), Term Loan D, 3.96 - 4.36%, 3/31/08 .. United States 3,643,659 3,707,423
DS Waters Enterprises LP, Term Loan, 6.37 - 6.67%, 11/07/09 ............. United States 3,894,808 3,793,543
Global Imaging Systems, Term Loan B, 3.68 - 3.98%, 5/15/10 .............. United States 990,019 1,002,394
JohnsonDiversey Inc., Term Loan B, 4.425%, 5/03/08 ...................... United States 4,221,771 4,296,707
Language Lines Inc., Term Loan B, 6.16%, 6/11/11 ........................ United States 3,453,947 3,496,500
Mitchell International Inc., Term Loan B, 4.98%, 7/30/11 ................ United States 1,955,000 1,977,606
US Investigations Services Inc., Term Loan C, 5.41%, 1/10/09 ............ United States 2,363,783 2,381,512
---------------
27,620,521
---------------
Miscellaneous Manufacturing .6%
Day International Group Inc., Term Loan D, 5.46 - 5.48%, 1/01/10 ........ United States 1,325,745 1,338,174
Mueller Group, Term Loan, 4.54 - 4.88%, 4/14/11 ......................... United States 6,047,706 6,096,844
Norcross Safety Products, Term Loan, 4.92%, 3/20/09 ..................... United States 754,231 760,124
---------------
8,195,142
---------------
Movies/Entertainment 5.4%
24 Hour Fitness Inc., Term Loan, 5.375%, 7/01/09 ........................ United States 2,977,500 3,007,751
Brooklyn Basketball LLC (New Jersey), Term Loan B, 5.438%, 8/16/08 ...... United States 2,000,000 2,000,000
Carmike Cinemas Inc., Term Loan, 5.225%, 2/02/09 ........................ United States 1,588,000 1,643,580
CH Operating LLC, Term Loan B, 6.50 - 6.563%, 6/21/07 ................... United States 2,801,724 2,808,729
Cinemark USA Inc., Term Loan, 4.06 - 4.35%, 4/02/11 ..................... United States 995,000 1,006,194
Cinram International, Term Loan D, 4.80%, 9/30/09 ....................... Canada 7,139,062 7,235,439
Detroit Red Wings Inc., Term Loan, 4.725%, 8/30/06 ...................... United States 801,404 803,408
Hollywood Entertainment, Term Loan, 5.44 - 5.46%, 3/31/08 ............... United States 1,875,000 1,883,203
Loews Cineplex Entertainment Corp, Term Loan B, 3.94 - 4.09%,
7/30/11 ............................................................... United States 2,000,000 2,027,500
Metro-Goldwyn-Mayer Studios Inc., Term Loan B, 4.48%, 4/30/11 ........... United States 8,500,000 8,540,375
Mets II LLC, Term Loan, 5.16%, 8/23/05 .................................. United States 3,000,000 3,022,500
New Jersey Devils LLC, Term Loan, 5.66%, 9/30/06 ........................ United States 1,900,000 1,904,332
12 | Quarterly Statement of Investments
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------------------------
Senior Floating Rate Interests (cont.)
Movies/Entertainment (cont.)
Rainbow National Services LLC, Term Loan B, 4.50%, 3/31/12 .............. United States $ 8,500,000 $ 8,648,750
Regal Cinemas Inc., Term Loan B, 4.225%, 11/10/10 ....................... United States 13,506,821 13,689,163
Six Flags Theme Parks, Term Loan B, 4.19%, 6/30/09 ...................... United States 1,806,358 1,820,471
Warner Music, Term Loan B, 4.319 - 4.97%, 2/28/11 ....................... United States 6,965,000 7,072,581
Yankee Holdings, Term Loan, 4.194 - 4.29%, 6/25/07 ...................... United States 785,714 798,482
Yankee Nets, Term Loan, 4.24 - 4.60%, 6/25/07 ........................... United States 1,714,286 1,742,143
---------------
69,654,601
---------------
Oil & Gas Pipelines .1%
Magellan Midstream Holdings LP, Term Loan B, 4.65%, 6/17/08 ............. United States 1,015,532 1,030,765
---------------
Oil & Gas Production .4%
Williams Production RMT Co., Term Loan C, 4.37%, 5/30/08 ................ United States 4,937,688 4,992,841
---------------
Oil Refining/Marketing .7%
Getty Petroleum Marketing, Term Loan B, 5.23%, 5/18/10 .................. United States 1,966,667 1,998,625
La Grange Acquisition LP, Term Loan, 4.96%, 1/08/08 ..................... United States 3,000,000 3,049,689
Lyondell-Citgo Refining LP, Term Loan, 4.09 - 4.37%, 5/21/07 ............ United States 997,500 1,004,982
Tesoro Petroleum Corp.,
L/C Term Loan, 1.87%, 4/30/07 ........................................ United States 2,000,000 2,010,000
Term Loan, 7.37%, 4/15/08 ............................................ United States 485,000 500,156
---------------
8,563,452
---------------
Other Consumer Services .4%
Alderwoods Group Inc., Term Loan B1, 4.48 - 4.81%, 8/19/10 .............. United States 1,341,185 1,356,018
Coinstar Inc., Term Loan, 4.29%, 7/01/11 ................................ United States 1,995,000 2,028,666
Weight Watchers,
Additional Term Loan, 3.39%, 3/31/10 ................................. United States 1,000,000 1,007,500
Term Loan B, 3.48%, 3/31/10 .......................................... United States 992,500 1,001,805
---------------
5,393,989
---------------
Other Consumer Specialties 1.8%
American Safety Razor Co., Term Loan, 5.02%, 4/22/11 .................... United States 1,492,500 1,514,887
Home Interiors & Gifts Inc., Term Loan, 6.23 - 6.42%, 4/02/11 ........... United States 3,937,500 3,802,641
Jostens Intermediate Holding Corp., Term Loan B, 2.50 - 4.54%,
10/01/11 .............................................................. United States 4,055,172 4,121,069
Sola International Inc., Term Loan, 4.48%, 12/05/09 ..................... United States 975,000 988,406
Solo Cup Co., Term Loan B, 4.09 - 4.475%, 2/23/11 ....................... United States 11,959,950 12,103,218
---------------
22,530,221
---------------
Other Transportation 1.1%
Great Lakes Dredge & Dock Corp., Term Loan B, 4.46 - 5.57%,
12/19/10 .............................................................. United States 958,541 958,541
Laidlaw International Inc., Term Loan B, 5.59%, 6/17/09 ................. United States 9,400,000 9,557,158
TransCore Holdings Inc.,
Term Loan B, 5.21 - 6.50%, 12/03/07 .................................. United States 1,874,968 1,877,312
Term Loan C, 5.21%, 12/03/07 ......................................... United States 1,985,000 1,987,481
---------------
14,380,492
---------------
Quarterly Statement of Investments | 13
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------------------------
Senior Floating Rate Interests (cont.)
Personnel Services .1%
Allied Security Holdings LLC, Term Loan, 6.23%, 8/02/10 ................. United States $ 1,200,000 $ 1,215,000
---------------
Publishing: Books/Magazines 2.4%
Advanstar Communications, Term Loan B, 6.44%, 10/11/07 .................. United States 178,063 179,101
American Media Inc., Term Loan C, 4.75 - 4.813%, 4/01/07 ................ United States 896,326 910,331
CBD Media LLC, Term Loan D, 4.29%, 12/31/09 ............................. United States 812,500 812,500
Dex Media West LLC, Term Loan B, 3.93 - 4.21%, 3/09/10 .................. United States 8,467,591 8,599,897
F&W Publications Inc., Term Loan B, 5.45%, 12/31/09 ..................... United States 1,830,862 1,852,033
Primedia Inc., Term Loan B, 4.75%, 6/30/09 .............................. United States 4,906,204 4,750,432
Reader's Digest Association, Term Loan B, 3.57%, 5/20/08 ................ United States 310,158 314,374
R.H. Donnelley Inc., Term Loan B, 4.05 - 4.31%, 6/30/11 ................. United States 7,381,499 7,497,603
Transwestern Publishing Co., Term Loan B, 3.938 - 5.75%, 2/25/11 ........ United States 3,700,000 3,747,408
Weekly Reader, Second Lien Term Loan, 6.761%, 3/23/09 ................... United States 2,500,000 2,495,312
---------------
31,158,991
---------------
Publishing: Newspapers .5%
Freedom Communications, Term Loan B, 3.75 - 3.79%, 5/17/09 .............. United States 2,500,000 2,541,875
Journal Register, Term Loan B, 3.42 - 3.76%, 8/13/12 .................... United States 3,000,000 3,015,000
MediaNews Group Inc., Term Loan C, 3.37 - 5.25%, 12/30/10 ............... United States 924,955 930,541
---------------
6,487,416
---------------
Pulp & Paper 2.0%
Appleton Papers Inc., Term Loan B, 3.98%, 6/01/10 ....................... United States 897,750 909,196
Boise Cascade LLC, Term Loan B, 4.25%, 10/01/11 ......................... United States 4,424,658 4,505,545
Boise Land and Timber Corp., Term Loan C, 4.25%, 10/01/10 ............... United States 4,075,342 4,112,457
Intertape Polymer Group Inc., Term Loan B, 4.138%, 8/01/11 .............. United States 3,800,000 3,868,875
Koch Cellulose LLC,
L/C Term Loan, 3.84%, 5/03/11 ........................................ United States 643,132 653,382
Term Loan B, 4.22%, 5/03/11 .......................................... United States 2,563,261 2,604,114
MDCP Acquisitions I (Jefferson Smurfit),
Term Loan B, 4.795%, 9/12/10 ......................................... Irish Republic 1,000,000 1,003,080
Term Loan C, 5.295%, 9/12/11 ......................................... Irish Republic 1,000,000 1,003,540
Smurfit-Stone Container Canada Inc., Term Loan C, 5.75%, 10/28/11 ....... Canada 1,610,594 1,610,594
Smurfit-Stone Container Enterprises,
L/C Term Loan, 1.916%, 10/28/10 ...................................... United States 654,975 654,975
Term Loan B, 5.75%, 10/28/11 ......................................... United States 5,234,431 5,327,672
---------------
26,253,430
---------------
Railroads .1%
RailAmerica Inc.,
CAD Term Loan, 3.938%, 9/29/11 ....................................... United States 161,812 164,576
U.S. Term Loan, 3.938%, 9/29/11 ...................................... United States 1,368,837 1,392,221
---------------
1,556,797
---------------
14 | Quarterly Statement of Investments
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
---------------------------------------------------------------------------------------------------------------------------------
COUNTRY PRINCIPAL AMOUNT VALUE
---------------------------------------------------------------------------------------------------------------------------------
Senior Floating Rate Interests (cont.)
Real Estate Investment Trusts .6%
Crescent Real Estate Funding XII,
Term Loan, 4.09 - 4.12%, 1/12/06 ..................................... United States $ 2,904,593 $ 2,931,823
Term Loan B, 4.09 - 4.12%, 3/05/06 ................................... United States 854,770 862,784
Newkirk Master LP, Term Loan, 6.079 - 6.475%, 11/24/06 .................. United States 3,974,088 4,011,345
---------------
7,805,952
---------------
Recreational Products 1.5%
Amscan Holdings Inc., Term Loan B, 4.591 - 6.25%, 4/30/12 ............... United States 997,500 1,009,969
BRP Holdings LP, 4.46%, 12/18/10 ........................................ United States 8,955,000 9,106,116
PlayPower Inc., Term Loan, 6.37 - 6.48%, 2/07/10 ........................ United States 925,000 931,937
Pure Fishing Inc., Term Loan B, 4.85 - 5.06%, 9/12/11 ................... United States 1,492,500 1,514,544
Riddell Bell Holdings Inc., Term Loan B, 4.75%, 9/28/11 ................. United States 1,000,000 1,016,250
True Temper Sports Inc., Term Loan, 4.21 - 6.25%, 3/15/11 ............... United States 5,875,909 5,729,952
---------------
19,308,768
---------------
Restaurants .6%
CKE Restaurants Inc., Term Loan, 4.875%, 4/30/09 ........................ United States 672,170 686,453
Denny's Inc., Term Loan B, 4.16%, 9/27/09 ............................... United States 1,000,000 1,022,188
Dominos Inc., Term Loan, 4.25%, 6/25/10 ................................. United States 2,523,014 2,574,264
Jack In The Box Inc., Term Loan B, 4.02 - 4.51%, 12/19/10 ............... United States 2,977,500 3,020,302
---------------
7,303,207
---------------
Semiconductors .2%
Fairchild Semiconductor Corp., Term Loan, 4.188%, 6/19/08 ............... United States 2,962,500 3,002,310
---------------
Services to the Health Industry .5%
Accredo Health Inc., Term Loan B, 3.71%, 8/02/11 ........................ United States 3,990,000 4,019,925
Quintiles Transnational Corp., Term Loan B, 6.23%, 9/25/09 .............. United States 1,683,000 1,705,089
Sterigenics International Inc., Term Loan B, 4.86%, 6/08/11 ............. United States 997,500 1,009,969
---------------
6,734,983
---------------
Specialty Stores .3%
Pantry Inc., Term Loan, 4.21%, 3/12/11 .................................. United States 2,459,377 2,497,365
Petco Animal Supplies Inc., Term Loan D, 4.46%, 10/02/08 ................ United States 1,561,558 1,585,957
---------------
4,083,322
---------------
Specialty Telecommunications .6%
D&E Communications Inc., Term Loan B, 4.50 - 6.50%, 12/31/11 ............ United States 2,332,251 2,366,507
GCI Holdings Inc., Term Loan, 4.27%, 10/31/07 ........................... United States 2,384,777 2,411,010
(a)Pacific Crossing Ltd., Term Loan B, 5.50%, 7/28/06 ...................... United States 21,149,553 1,057,478
Valor Telecom,
First Lien Term Loan, 4.29 - 4.37%, 6/30/07 .......................... United States 1,911,394 1,911,394
Term Loan B, 4.20%, 6/30/08 .......................................... United States 196,081 196,081
---------------
7,942,470
---------------
Quarterly Statement of Investments | 15
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT VALUE
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Senior Floating Rate Interests (cont.)
Steel .4%
Copperweld Holding Co., Term Loan, 6.451%, 12/17/11 ..................... United States $ 5,290,404 $ 5,025,884
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Tobacco .2%
Commonwealth Brands Inc., Term Loan, 6.00%, 8/22/07 ..................... United States 1,937,083 1,963,718
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Trucking .3%
Comcar Industries, Term Loan B, 6.91 - 8.75%, 12/31/09 .................. United States 2,487,500 2,473,172
Flexi-Van Leasing Inc., Term Loan B, 3.98 - 4.07%, 9/20/07 .............. United States 746,488 750,220
Kenan Advantage, Term Loan, 5.475%, 6/30/10 ............................. United States 997,500 1,008,722
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4,232,114
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Wholesale Distributors .4%
Interline Brands, Term Loan B, 5.46 - 5.475%, 11/30/09 .................. United States 2,812,500 2,845,898
National Waterworks Inc., Term Loan B, 4.34%, 11/22/09 .................. United States 933,673 944,567
Nebraska Book Co., Term Loan C, 4.67%, 3/04/11 .......................... United States 995,000 1,003,079
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4,793,544
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Wireless Communications 2.0%
AAT Communications Corp., Term Loan B, 4.46 - 4.64%, 12/31/11 ........... United States 3,000,000 3,041,250
Dobson Cellular Systems Inc., Term Loan, 5.36 - 5.41%, 3/31/10 .......... United States 3,636,885 3,627,567
Nextel Finance (Nextel Communications Inc.), Term Loan E, 4.188%,
12/15/10 .............................................................. United States 1,588,000 1,594,419
Nextel Partners Inc., Term Loan C, 4.313%, 5/31/11 ...................... United States 6,500,000 6,610,364
SBA Communications Corp., Term Loan, 5.37 - 5.62%, 10/31/08 ............. United States 7,976,923 8,059,189
SpectraSite Communications Inc.,
Term Loan A, 4.106 - 4.12%, 6/30/07 .................................. United States 1,710,023 1,714,565
Term Loan C, 3.87%, 2/22/07 .......................................... United States 995,909 998,737
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25,646,091
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Total Senior Floating Rate Interests (Cost $1,124,080,299) 1,068,967,552
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Asset-Backed Securities .6%
(c)Ares IV, 1A, D2, 144A, 7.919%, 12/22/12 ................................. Cayman Islands 1,400,000 1,166,760
(c)Centurion CDO II Ltd., 1A, D2, 144A, 7.68%, 11/12/12 .................... Cayman Islands 2,500,000 2,282,000
(c)Clydesdale CLO Ltd., 2001-1A, D1, 144A, 8.133%, 3/22/13 ................. Cayman Islands 2,000,000 1,951,800
(c)First Dominion Funding II, 1A, D2, 144A, 7.31%, 4/25/14 ................. Cayman Islands 3,000,000 2,323,200
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Total Asset-Backed Securities (Cost $8,770,415) 7,723,760
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SHARES/WARRANTS
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Common Stocks and Warrants .7%
Auto Parts: Original Equipment Manufacturer
(d)Exide Technologies., wts., 3/18/06 ...................................... United States 74,278 --
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Commercial Printing/Forms
(d)Vertis Holdings Inc., wts., 6/30/11 ..................................... United States 39,812 --
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16 | Quarterly Statement of Investments
FRANKLIN FLOATING RATE TRUST
STATEMENT OF INVESTMENTS, OCTOBER 31, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY SHARES/WARRANTS VALUE
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Common Stocks and Warrants (cont.)
Specialty Telecommunications
(d)IDT Corp. ............................................................... United States 53,428 $ 738,375
(d)Global Crossing Ltd. .................................................... United States 2,684 37,415
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775,790
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Steel
(d)Copperweld Holding Co., A ............................................... United States 242 --
(d)Copperweld Holding Co., B ............................................... United States 1,741 --
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--
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Wireless Communications .7%
(d)Arch Wireless Inc. ...................................................... United States 253,746 7,254,598
(d)Leap Wireless International Inc. ........................................ United States 38,068 767,070
(d)Teligent Inc. ........................................................... United States 115 690,000
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8,711,668
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Total Common Stocks and Warrants (Cost $6,315,654) 9,487,458
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Total Long Term Investments (Cost $1,160,614,826) 1,106,739,187
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Short Term Investments (Cost $186,581,250) 14.5%
Money Fund
(e)Franklin Institutional Fiduciary Trust Money Market Portfolio ........... United States 186,581,250 186,581,250
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Total Investments (Cost $1,347,196,076) 100.4% .......................... 1,293,320,437
Other Assets, less Liabilities (.4)% .................................... (5,624,435)
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Net Assets 100.0% ....................................................... $ 1,287,696,002
===============
(a) Defaulted security.
(b) Security purchased on a delayed delivery basis.
(c) See Note 2 regarding restricted securities.
(d) Non-income producing.
(e) The Franklin Institutional Fiduciary Trust Money Market Portfolio is
managed by the Fund's investment manager.
Glossary of Terms
CDO - Collateralized Debt Obligation
CLO - Collateralized Loan Obligation
DIP - Debtor-in-Possession
L/C - Line of Credit
LLC - Limited Liability Corp.
LP - Limited Partnership
PIK - Payment-in-Kind
Quarterly Statement of Investments | See Notes to Statement of Investments. | 17
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18 | Quarterly Statement of Investments
FRANKLIN FLOATING RATE TRUST
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
The Franklin Floating Rate Trust (the Fund) is registered under the Investment
Company Act of 1940 as a non-diversified, closed-end, continuously offered
investment company. The Fund seeks current income and preservation of capital.
1. INCOME TAXES
At October 31, 2004, the unrealized appreciation (depreciation) based on the
cost of investments for income tax purposes was as follows:
Cost of investments ........................................ $ 1,347,836,200
===============
Unrealized appreciation .................................... $ 20,657,633
Unrealized depreciation .................................... (75,173,396)
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Net unrealized appreciation (depreciation) ................. $ (54,515,763)
===============
2. RESTRICTED SECURITIES
At October 31, 2004, the Fund held investments in restricted and illiquid
securities that were valued under approved methods by the Trustees, as follows:
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PRINCIPAL AMOUNT ISSUER DATE COST VALUE
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$ 1,400,000 Ares IV, 1A, D2, 144A, 7.919%,
12/22/12 ................................. 11/14/00 $ 1,400,000 $ 1,166,760
2,500,000 Centurion CDO II Ltd., 1A, D2, 144A,
7.68%, 11/12/12 .......................... 11/07/00 2,500,000 2,282,000
2,000,000 Clydesdale CLO Ltd., 2001-1A, D1, 144A,
8.133%, 3/22/13 .......................... 5/23/01 1,880,000 1,951,800
3,000,000 First Dominion Funding II, 1A, D2, 144A,
7.31%, 4/25/14 ........................... 5/03/99 2,990,415 2,323,200
-----------
Total Restricted Securities (.60% of Net Assets) ........................................ $ 7,723,760
===========
For information on the Fund's policy regarding valuation of investments and
other significant accounting policies, please refer to the Fund's most recent
semiannual or annual shareholder report.
Quarterly Statement of Investments | 19
Item 2. Controls and Procedures.
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.
Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio
Holdings on Form N-Q, the Registrant had carried out an evaluation, under the
supervision and with the participation of the Registrant's management, including
the Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.
(b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Quarterly Schedule of Portfolio Holdings
on Form N-Q.
Item 3. Exhibits.
(A) Certification pursuant to Section 30a-2 under the Investment Company Act of
1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration,
and Galen G. Vetter, Chief Financial Officer.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) FRANKLIN FLOATING RATE TRUST
By /S/JIMMY D. GAMBILL
---------------------
Chief Executive Officer - Finance and Administration
Date December 16, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /S/JIMMY D. GAMBILL
---------------------
Chief Executive Officer - Finance and Administration
Date December 16, 2004
By /S/GALEN G. VETTER
---------------------
Chief Financial Officer
Date December 16, 2004
Exhibit A
I, Jimmy D. Gambill, certify that:
1. I have reviewed this report on Form N-Q of Franklin Floating Rate Trust;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the registrant
as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
December 16, 2004
/s/JIMMY D. GAMBILL
Chief Executive Officer - Finance and Administration
I, Galen G. Vetter, certify that:
1. I have reviewed this report on Form N-Q of Franklin Floating Rate Trust;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the registrant
as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
December 16, 2004
/s/GALEN G. VETTER
Chief Financial Officer