N-Q - VLT
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| OMB APPROVAL |
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OMB Number: 3235-0578
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment
Company Act file
number 811-05769
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| Invesco High Income Trust II |
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| (Exact name of registrant as specified in charter) |
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| 1555 Peachtree Street, N.E., Suite 1800 Atlanta, Georgia
30309 |
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| (Address of principal executive offices) (Zip code) |
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| Sheri Morris 1555 Peachtree Street, N.E., Suite
1800 Atlanta, Georgia 30309 |
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| (Name and address of agent for service) |
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Registrant’s telephone number, including area code: (713) 626-1919
Date of fiscal year end:
2/28
Date of
reporting period: 11/30/17
Item 1. Schedule of Investments.
Invesco High
Income Trust II
Quarterly Schedule of Portfolio Holdings
November 30,
2017
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| invesco.com/us |
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VK-CE-HINC2-QTR-1 11/17 |
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Invesco Advisers, Inc. |
Schedule of Investments(a)
November 30, 2017
(Unaudited)
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Principal
Amount |
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Value |
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| U.S. Dollar Denominated Bonds & Notes–130.39%(b) |
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| Advertising–1.03% |
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| Lamar Media Corp., Sr. Unsec. Gtd. Global Notes,
5.75%, 02/01/2026 |
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$ |
1,261,000 |
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$ |
1,358,727 |
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| Aerospace & Defense–2.66% |
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| Bombardier Inc. (Canada),
Sr. Unsec. Notes,
6.00%,
10/15/2022(c) |
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375,000 |
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368,906 |
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| 7.50%, 03/15/2025(c) |
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299,000 |
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300,869 |
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| CBC Ammo LLC/CBC FinCo Inc.
(Brazil), Sr. Unsec.
Notes,
7.25%, 11/15/2021(c) |
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297,000 |
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309,622 |
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| KLX Inc., Sr. Unsec. Gtd. Notes, 5.88%, 12/01/2022(c) |
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659,000 |
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691,126 |
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| Moog Inc., Sr. Unsec. Gtd. Notes, 5.25%, 12/01/2022(c) |
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455,000 |
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473,769 |
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| TransDigm Inc.,
Sr. Unsec. Gtd. Sub. Global Notes,
6.50%, 07/15/2024 |
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154,000 |
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157,850 |
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| 6.50%, 05/15/2025 |
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1,189,000 |
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1,216,466 |
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3,518,608 |
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| Agricultural & Farm Machinery–0.69% |
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| Titan International, Inc., Sr. Sec. Gtd. First Lien Notes,
6.50%, 11/30/2023(c) |
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914,000 |
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911,441 |
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| Air Freight & Logistics–0.20% |
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| XPO Logistics, Inc., Sr. Unsec. Gtd. Notes,
6.50%, 06/15/2022(c) |
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249,000 |
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261,139 |
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| Alternative Carriers–0.81% |
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| Level 3 Financing, Inc.,
Sr. Unsec. Gtd. Global
Notes, 5.25%, 03/15/2026 |
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466,000 |
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458,136 |
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| 5.38%, 05/01/2025 |
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612,000 |
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615,244 |
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1,073,380 |
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| Aluminum–1.01% |
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| Alcoa Nederland Holding B.V., Sr. Unsec. Gtd. Notes,
6.75%, 09/30/2024(c) |
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800,000 |
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884,240 |
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| Novelis Corp., Sr. Unsec. Gtd. Notes,
6.25%, 08/15/2024(c) |
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431,000 |
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455,783 |
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1,340,023 |
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| Apparel Retail–2.03% |
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| Gap, Inc. (The), Sr. Unsec. Global Bonds,
5.95%, 04/12/2021 |
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403,000 |
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435,480 |
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| Hot Topic, Inc., Sr. Sec. Gtd. First Lien Notes,
9.25%, 06/15/2021(c) |
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849,000 |
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635,689 |
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Principal
Amount |
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Value |
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| Apparel Retail–(continued) |
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| L Brands, Inc.,
Sr. Unsec. Gtd. Global Notes,
5.63%, 02/15/2022 |
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$ |
999,000 |
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$ |
1,080,618 |
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| 6.75%, 07/01/2036 |
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104,000 |
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104,260 |
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| 6.88%, 11/01/2035 |
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416,000 |
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422,240 |
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2,678,287 |
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| Auto Parts & Equipment–0.74% |
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| Dana Financing Luxembourg S.a.r.l., Sr. Unsec. Gtd. Notes,
5.75%, 04/15/2025(c) |
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265,000 |
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282,145 |
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| Dana Inc., Sr. Unsec. Notes,
5.50%, 12/15/2024 |
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229,000 |
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243,679 |
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| Delphi Jersey Holdings PLC, Sr. Unsec. Notes,
5.00%, 10/01/2025(c) |
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445,000 |
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453,068 |
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978,892 |
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| Automobile Manufacturers–0.00% |
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| Motors Liquidation Co., Sr. Unsec. Deb.,
0.00%, 07/15/2033(d)(f) |
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1,640,000 |
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0 |
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| Automotive Retail–1.08% |
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| Lithia Motors, Inc., Sr. Unsec. Gtd. Notes,
5.25%, 08/01/2025(c) |
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230,000 |
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242,075 |
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| Murphy Oil USA, Inc., Sr. Unsec. Gtd. Global Notes,
5.63%, 05/01/2027 |
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613,000 |
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645,182 |
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| Penske Automotive Group Inc., Sr. Unsec. Sub. Gtd. Notes,
5.50%, 05/15/2026 |
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535,000 |
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545,700 |
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1,432,957 |
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| Broadcasting–3.27% |
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| Clear Channel Worldwide Holdings, Inc.,
Series B,
Sr. Unsec. Gtd. Global Notes, 6.50%, 11/15/2022 |
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520,000 |
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528,450 |
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| Sr. Unsec. Gtd. Sub. Global Notes,
7.63%, 03/15/2020 |
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847,000 |
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841,707 |
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| Netflix, Inc., Sr. Unsec. Global Notes,
5.75%, 03/01/2024 |
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475,000 |
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508,250 |
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| Nexstar Broadcasting, Inc., Sr. Unsec. Gtd. Notes,
5.63%, 08/01/2024(c) |
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525,000 |
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538,125 |
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| Sirius XM Radio Inc.,
Sr. Unsec. Gtd.
Notes,
5.38%, 04/15/2025(c) |
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3,000 |
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3,162 |
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| 5.38%, 07/15/2026(c) |
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585,000 |
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614,250 |
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| 6.00%, 07/15/2024(c) |
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663,000 |
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705,266 |
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| Tribune Media Co., Sr. Unsec. Gtd. Global Notes,
5.88%, 07/15/2022 |
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575,000 |
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589,375 |
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4,328,585 |
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See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
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Principal
Amount |
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Value |
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| Building Products–1.43% |
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| Builders FirstSource, Inc.,
Sr. Unsec. Gtd.
Notes,
10.75%, 08/15/2023(c) |
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$ |
705,000 |
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$ |
796,650 |
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| Gibraltar Industries Inc., Sr. Unsec. Gtd. Sub. Global
Notes, 6.25%, 02/01/2021 |
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557,000 |
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568,418 |
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| Standard Industries Inc., Sr. Unsec. Notes, 5.00%,
02/15/2027(c) |
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500,000 |
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521,250 |
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1,886,318 |
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| Cable & Satellite–12.10% |
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| AMC Networks Inc.,
Sr. Unsec. Gtd. Global
Notes,
4.75%, 08/01/2025 |
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121,000 |
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120,395 |
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| 5.00%, 04/01/2024 |
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491,000 |
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498,365 |
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| CCO Holdings LLC/CCO Holdings Capital Corp., |
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| Sr. Unsec. Global Notes,
5.75%, 09/01/2023 |
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675,000 |
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696,937 |
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| Sr. Unsec. Notes,
5.75%, 02/15/2026(c) |
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1,445,000 |
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1,502,800 |
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| CSC Holdings LLC,
Sr. Unsec. Gtd.
Notes,
6.63%, 10/15/2025(c) |
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215,000 |
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232,200 |
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| Sr. Unsec. Notes,
10.13%, 01/15/2023(c) |
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1,395,000 |
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1,581,581 |
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| 10.88%, 10/15/2025(c) |
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419,000 |
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496,917 |
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| DISH DBS Corp.,
Sr. Unsec. Gtd. Global Notes,
5.88%, 11/15/2024 |
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1,665,000 |
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1,679,236 |
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| 7.88%, 09/01/2019 |
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1,076,000 |
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1,154,236 |
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| Hughes Satellite Systems Corp.,
Sr. Sec. Gtd. First Lien
Global Notes,
5.25%, 08/01/2026 |
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171,000 |
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174,206 |
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| Sr. Unsec. Gtd. Global Notes,
7.63%, 06/15/2021 |
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619,000 |
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687,090 |
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| Intelsat Jackson Holdings S.A. (Luxembourg),
Sr. Unsec.
Gtd. Global Bonds,
5.50%, 08/01/2023 |
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515,000 |
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|
422,944 |
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| Sr. Unsec. Gtd. Global Notes,
7.25%, 10/15/2020 |
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893,000 |
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848,350 |
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| 7.50%, 04/01/2021 |
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448,000 |
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419,440 |
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| SFR Group S.A. (France),
Sr. Sec. Gtd. First Lien
Bonds,
6.00%, 05/15/2022(c) |
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910,000 |
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|
918,531 |
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| Sr. Sec. Gtd. First Lien Notes,
7.38%, 05/01/2026(c) |
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|
503,000 |
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|
508,659 |
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| Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW
GmbH (Germany), Sr. Sec. Gtd. First Lien Bonds,
5.00%, 01/15/2025(c) |
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|
855,000 |
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|
888,131 |
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| UPC Holding B.V. (Netherlands), Sr. Sec. First Lien Notes,
5.50%, 01/15/2028(c) |
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|
200,000 |
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199,500 |
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| UPCB Finance IV Ltd. (Netherlands), Sr. Sec. First Lien
Notes, 5.38%, 01/15/2025(c) |
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450,000 |
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|
459,000 |
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Principal
Amount |
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Value |
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| Cable & Satellite–(continued) |
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| Virgin Media Finance PLC (United Kingdom), REGS, Sr. Unsec.
Gtd. Euro Notes, 6.00%, 10/15/2024(c) |
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$ |
218,000 |
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$ |
226,448 |
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| Virgin Media Secured Finance PLC (United Kingdom), |
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| Sr. Sec. Gtd. First Lien Notes,
5.50%, 08/15/2026(c) |
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|
519,000 |
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543,237 |
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| REGS,
Sr. Sec. Gtd. First Lien Euro Bonds,
5.50%, 01/15/2025(c) |
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|
630,000 |
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|
659,138 |
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| VTR Finance B.V. (Chile), Sr. Sec. First Lien Notes,
6.88%, 01/15/2024(c) |
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620,000 |
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|
657,200 |
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| Ziggo Bond Finance B.V. (Netherlands), REGS, Sr. Unsec.
Euro Notes, 5.88%, 01/15/2025(c) |
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250,000 |
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251,250 |
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| Ziggo Secured Finance B.V. (Netherlands), Sr. Sec. Gtd.
First Lien Notes, 5.50%, 01/15/2027(c) |
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175,000 |
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176,313 |
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16,002,104 |
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| Casinos & Gaming–4.48% |
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| Boyd Gaming Corp.,
Sr. Unsec. Gtd. Global
Notes,
6.38%, 04/01/2026 |
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230,000 |
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251,275 |
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| 6.88%, 05/15/2023 |
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890,000 |
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|
952,300 |
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| Codere Finance 2 (Luxembourg) S.A. (Spain), Sr. Sec. Gtd.
First Lien Notes, 7.63%, 11/01/2021(c) |
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240,000 |
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|
245,850 |
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| MGM Resorts International,
Sr. Unsec. Gtd. Global Notes,
6.63%, 12/15/2021 |
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|
525,000 |
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|
585,370 |
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| Sr. Unsec. Gtd. Notes,
4.63%, 09/01/2026 |
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|
450,000 |
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|
461,250 |
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| 6.00%, 03/15/2023 |
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|
325,000 |
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|
359,125 |
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| 7.75%, 03/15/2022 |
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|
327,000 |
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|
380,138 |
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| Pinnacle Entertainment, Inc.,
Sr. Unsec. Global Notes,
5.63%, 05/01/2024 |
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|
867,000 |
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|
903,847 |
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| Scientific Games International Inc.,
Sr. Unsec. Gtd.
Global Notes, 10.00%, 12/01/2022 |
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|
806,000 |
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|
890,630 |
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| Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., |
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| Sr. Unsec. Gtd. Notes,
5.25%, 05/15/2027(c) |
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|
236,000 |
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|
240,866 |
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| 5.50%, 03/01/2025(c) |
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|
626,000 |
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|
648,098 |
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| |
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|
5,918,749 |
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| Commodity Chemicals–0.36% |
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| Koppers Inc., Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2025(c) |
|
|
446,000 |
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|
|
480,141 |
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| Construction & Engineering–0.21% |
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|
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|
|
| AECOM, Sr. Unsec. Gtd. Global Notes,
5.13%, 03/15/2027 |
|
|
266,000 |
|
|
|
271,799 |
|
See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
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Principal
Amount |
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|
Value |
|
|
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| Construction Machinery & Heavy Trucks–0.94% |
|
|
|
|
|
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|
|
| Meritor Inc., Sr. Unsec. Gtd. Notes,
6.25%, 02/15/2024 |
|
$ |
305,000 |
|
|
$ |
322,156 |
|
| Oshkosh Corp., Sr. Unsec. Gtd. Global Notes, 5.38%,
03/01/2025 |
|
|
429,000 |
|
|
|
457,958 |
|
| Terex Corp., Sr. Unsec. Gtd. Notes, 5.63%, 02/01/2025(c) |
|
|
444,000 |
|
|
|
469,252 |
|
| |
|
|
|
1,249,366 |
|
|
|
| Construction Materials–0.15% |
|
|
|
|
|
|
|
|
| James Hardie International Finance DAC (Ireland), Sr.
Unsec. Notes, 4.75%, 01/15/2025(c) |
|
|
200,000 |
|
|
|
204,500 |
|
|
|
| Consumer Finance–2.59% |
|
|
|
|
|
|
|
|
| Ally Financial Inc.,
Sr. Unsec. Global Notes,
4.63%, 03/30/2025 |
|
|
704,000 |
|
|
|
748,880 |
|
| 5.13%, 09/30/2024 |
|
|
900,000 |
|
|
|
983,250 |
|
| Sr. Unsec. Gtd. Global Notes,
8.00%, 03/15/2020 |
|
|
240,000 |
|
|
|
268,200 |
|
| Discover Financial Services, Inc.,
Series C, Jr. Unsec.
Sub. Global Notes, 5.50% (e) |
|
|
356,000 |
|
|
|
367,570 |
|
| Navient Corp.,
Sr. Unsec. Medium-Term Notes,
7.25%, 01/25/2022 |
|
|
325,000 |
|
|
|
351,406 |
|
| 8.00%, 03/25/2020 |
|
|
640,000 |
|
|
|
699,200 |
|
| |
|
|
|
3,418,506 |
|
|
|
| Copper–0.65% |
|
|
|
|
|
|
|
|
| First Quantum Minerals Ltd. (Zambia), Sr. Unsec. Gtd.
Notes, 7.00%, 02/15/2021(c) |
|
|
825,000 |
|
|
|
858,000 |
|
|
|
| Data Processing & Outsourced Services–1.32% |
|
|
|
|
|
|
|
|
| First Data Corp.,
Sr. Sec. Gtd. First Lien Notes,
5.00%, 01/15/2024(c) |
|
|
400,000 |
|
|
|
415,500 |
|
| Sr. Unsec. Gtd. Notes,
7.00%, 12/01/2023(c) |
|
|
1,254,000 |
|
|
|
1,330,024 |
|
| |
|
|
|
1,745,524 |
|
|
|
| Diversified Banks–1.80% |
|
|
|
|
|
|
|
|
| Bank of America Corp., Series K,
Jr. Unsec. Sub. Global
Notes, 8.00% (e) |
|
|
202,000 |
|
|
|
203,771 |
|
| Dresdner Funding Trust I (Germany), REGS, Jr. Unsec.
Sub. Euro Notes, 8.15%, 06/30/2031(c) |
|
|
385,000 |
|
|
|
509,382 |
|
| JPMorgan Chase & Co., Series 1, Jr. Unsec. Sub.
Global Notes, 7.90% (e) |
|
|
460,000 |
|
|
|
468,855 |
|
| Royal Bank of Scotland Group PLC (The) (United Kingdom),
Unsec. Sub. Global Bonds, 5.13%, 05/28/2024 |
|
|
1,129,000 |
|
|
|
1,200,673 |
|
| |
|
|
|
2,382,681 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
|
| Diversified Chemicals–1.35% |
|
|
|
|
|
|
|
|
| Chemours Co. (The),
Sr. Unsec. Gtd. Global Notes,
6.63%, 05/15/2023 |
|
$ |
1,205,000 |
|
|
$ |
1,280,312 |
|
| 7.00%, 05/15/2025 |
|
|
210,000 |
|
|
|
230,738 |
|
| Trinseo Materials Operating S.C.A./Trinseo Materials
Finance, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 09/01/2025(c) |
|
|
264,000 |
|
|
|
276,178 |
|
| |
|
|
|
1,787,228 |
|
|
|
| Diversified Metals & Mining–1.69% |
|
|
|
|
|
|
|
|
| Freeport-McMoRan Inc.,
Sr. Unsec. Gtd. Global Notes,
5.40%, 11/14/2034 |
|
|
630,000 |
|
|
|
615,825 |
|
| HudBay Minerals, Inc. (Canada), Sr. Unsec. Gtd. Notes,
7.63%, 01/15/2025(c) |
|
|
532,000 |
|
|
|
589,855 |
|
| Teck Resources Ltd. (Canada),
Sr. Unsec. Gtd. Global
Notes, 4.75%, 01/15/2022 |
|
|
503,000 |
|
|
|
530,665 |
|
| Sr. Unsec. Notes,
6.13%, 10/01/2035 |
|
|
445,000 |
|
|
|
502,850 |
|
| |
|
|
|
2,239,195 |
|
|
|
| Diversified Support Services–0.19% |
|
|
|
|
|
|
|
|
| Jaguar Holding Co. II/Pharmaceutical Product Development,
LLC,
Sr. Unsec. Gtd. Notes, 6.38%, 08/01/2023(c) |
|
|
240,000 |
|
|
|
247,800 |
|
|
|
| Electric Utilities–0.24% |
|
|
|
|
|
|
|
|
| Southern Co. (The), Series B,
Jr. Unsec. Sub. Global
Notes, 5.50%, 03/15/2057 |
|
|
298,000 |
|
|
|
316,249 |
|
|
|
| Electrical Components & Equipment–1.36% |
|
|
|
|
|
|
|
|
| EnerSys, Sr. Unsec. Gtd. Notes, 5.00%, 04/30/2023(c) |
|
|
970,000 |
|
|
|
1,023,350 |
|
| Sensata Technologies B.V.,
Sr. Unsec. Gtd.
Notes,
4.88%, 10/15/2023(c) |
|
|
320,000 |
|
|
|
335,360 |
|
| 5.00%, 10/01/2025(c) |
|
|
415,000 |
|
|
|
445,087 |
|
| |
|
|
|
1,803,797 |
|
|
|
| Environmental & Facilities Services–0.82% |
|
|
|
|
|
|
|
|
| Advanced Disposal Services, Inc.,
Sr. Unsec. Gtd. Notes,
5.63%, 11/15/2024(c) |
|
|
397,000 |
|
|
|
410,895 |
|
| Core & Main LP, Sr. Unsec. Notes,
6.13%, 08/15/2025(c) |
|
|
595,000 |
|
|
|
609,131 |
|
| Wrangler Buyer Corp., Sr. Unsec. Notes,
6.00%, 10/01/2025(c) |
|
|
61,000 |
|
|
|
62,220 |
|
| |
|
|
|
1,082,246 |
|
|
|
| Food Distributors–0.82% |
|
|
|
|
|
|
|
|
| US Foods, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 06/15/2024(c) |
|
|
1,025,000 |
|
|
|
1,081,375 |
|
See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
|
|
| Food Retail–2.16% |
|
|
|
|
|
|
|
|
|
|
|
| 1011778 BC ULC/ New Red Finance, Inc. (Canada), Sec. Gtd.
Second Lien Notes, 5.00%, 10/15/2025(c) |
|
$ |
1,234,000 |
|
|
$ |
1,271,020 |
|
| Albertsons Cos. LLC/ Safeway Inc./New Albertson’s,
Inc./Albertson’s LLC, Sr. Unsec. Gtd. Global Notes, 6.63%, 06/15/2024 |
|
|
714,000 |
|
|
|
685,440 |
|
| Ingles Markets, Inc., Sr. Unsec. Global Notes,
5.75%, 06/15/2023 |
|
|
899,000 |
|
|
|
894,505 |
|
| |
|
|
|
|
|
|
2,850,965 |
|
|
|
|
| Gas Utilities–1.76% |
|
|
|
|
|
|
|
|
|
|
| AmeriGas Partners, L.P./AmeriGas Finance Corp., |
|
|
|
|
|
| Sr. Unsec. Global Notes,
5.63%, 05/20/2024 |
|
|
404,000 |
|
|
|
424,200 |
|
| 5.88%, 08/20/2026 |
|
|
622,000 |
|
|
|
648,435 |
|
| Ferrellgas L.P./Ferrellgas Finance Corp., Sr. Unsec. Global
Notes, 6.50%, 05/01/2021 |
|
|
373,000 |
|
|
|
355,282 |
|
| Suburban Propane Partners, L.P./Suburban Energy Finance
Corp., Sr. Unsec. Global Notes, 5.50%, 06/01/2024 |
|
|
900,000 |
|
|
|
895,500 |
|
| |
|
|
|
|
|
|
2,323,417 |
|
|
|
|
| General Merchandise Stores–0.49% |
|
|
|
|
|
|
|
|
|
|
|
| Dollar Tree, Inc., Sr. Unsec. Gtd. Global Notes,
5.75%, 03/01/2023 |
|
|
622,000 |
|
|
|
653,878 |
|
|
|
|
| Health Care Equipment–0.97% |
|
|
|
|
|
|
|
|
|
|
|
| Eagle Holding Co. II, LLC, Sr.
Unsec. PIK Notes, 8.38%
PIK Rate, 7.63% Cash Rate, 05/15/2022(c)(g) |
|
|
507,000 |
|
|
|
515,873 |
|
| Hill-Rom Holdings,
Inc., Sr.
Unsec. Gtd. Notes, 5.00%, 02/15/2025(c) |
|
|
596,000 |
|
|
|
609,410 |
|
| Teleflex Inc.,
Sr. Unsec. Gtd. Global Notes,
4.88%, 06/01/2026 |
|
|
109,000 |
|
|
|
113,457 |
|
| 5.25%, 06/15/2024 |
|
|
42,000 |
|
|
|
44,310 |
|
| |
|
|
|
|
|
|
1,283,050 |
|
|
|
|
| Health Care Facilities–6.15% |
|
|
|
|
|
|
|
|
|
|
|
| Acadia Healthcare Co., Inc., Sr.
Unsec. Gtd. Global
Notes, 6.50%, 03/01/2024 |
|
|
495,000 |
|
|
|
513,563 |
|
| Community Health Systems, Inc.,
Sr. Sec. Gtd. First Lien
Global Notes, 5.13%, 08/01/2021 |
|
|
285,000 |
|
|
|
267,900 |
|
| Sr. Sec. Gtd. First Lien Notes,
6.25%, 03/31/2023 |
|
|
677,000 |
|
|
|
636,380 |
|
| Sr. Unsec. Gtd. Global Notes,
6.88%, 02/01/2022 |
|
|
159,260 |
|
|
|
96,750 |
|
| 8.00%, 11/15/2019 |
|
|
435,000 |
|
|
|
390,956 |
|
| HCA Healthcare, Inc., Sr. Unsec. Notes,
6.25%, 02/15/2021 |
|
|
610,000 |
|
|
|
654,987 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
|
|
| Health Care Facilities–(continued) |
|
|
|
|
|
|
|
|
|
|
|
| HCA, Inc.,
Sr. Sec. Gtd. First Lien Global
Notes,
5.88%, 03/15/2022 |
|
$ |
742,000 |
|
|
$ |
805,997 |
|
| Sr. Sec. Gtd. First Lien Notes,
5.25%, 04/15/2025 |
|
|
699,000 |
|
|
|
746,182 |
|
| Sr. Unsec. Gtd. Global Notes,
7.50%, 02/15/2022 |
|
|
283,000 |
|
|
|
320,186 |
|
| Sr. Unsec. Gtd. Notes,
5.38%, 02/01/2025 |
|
|
540,000 |
|
|
|
561,600 |
|
| 5.88%, 02/15/2026 |
|
|
360,000 |
|
|
|
383,850 |
|
| HealthSouth Corp., Sr. Unsec. Gtd. Global Notes,
5.75%, 09/15/2025 |
|
|
620,000 |
|
|
|
646,350 |
|
| LifePoint Health, Inc.,
Sr. Unsec. Gtd. Global
Notes,
5.38%, 05/01/2024 |
|
|
430,000 |
|
|
|
423,013 |
|
| Sr. Unsec. Gtd. Notes,
5.88%, 12/01/2023 |
|
|
110,000 |
|
|
|
112,338 |
|
| Tenet Healthcare Corp.,
Sec. Gtd. Second Lien
Notes,
7.50%, 01/01/2022(c) |
|
|
106,000 |
|
|
|
112,228 |
|
| Sr. Unsec. Global Notes,
6.75%, 06/15/2023 |
|
|
909,000 |
|
|
|
853,324 |
|
| 8.13%, 04/01/2022 |
|
|
605,000 |
|
|
|
601,219 |
|
| |
|
|
|
|
|
|
8,126,823 |
|
|
|
|
| Health Care Services–2.76% |
|
|
|
|
|
|
|
|
|
|
|
| AMN Healthcare, Inc., Sr. Unsec. Gtd. Notes,
5.13%, 10/01/2024(c) |
|
|
410,000 |
|
|
|
424,350 |
|
| DaVita Inc., Sr. Unsec. Gtd. Global Notes,
5.00%, 05/01/2025 |
|
|
467,000 |
|
|
|
468,751 |
|
| Envision Healthcare Corp., Sr. Unsec. Gtd. Notes,
6.25%, 12/01/2024(c) |
|
|
204,000 |
|
|
|
215,985 |
|
| MEDNAX, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 12/01/2023(c) |
|
|
848,000 |
|
|
|
871,320 |
|
| MPH Acquisition Holdings LLC, Sr.
Unsec. Gtd. Notes,
7.13%, 06/01/2024(c) |
|
|
970,000 |
|
|
|
1,043,963 |
|
| Surgery Center Holdings, Inc.,
Sr. Unsec. Gtd.
Notes,
6.75%, 07/01/2025(c) |
|
|
130,000 |
|
|
|
118,950 |
|
| 8.88%, 04/15/2021(c) |
|
|
96,000 |
|
|
|
97,200 |
|
| Team Health Holdings, Inc., Sr.
Unsec. Gtd. Notes,
6.38%, 02/01/2025(c) |
|
|
450,000 |
|
|
|
409,500 |
|
| |
|
|
|
|
|
|
3,650,019 |
|
|
|
|
| Home Improvement Retail–0.70% |
|
|
|
|
|
|
|
|
|
|
|
| Hillman Group Inc. (The), Sr.
Unsec. Gtd. Notes,
6.38%, 07/15/2022(c) |
|
|
933,000 |
|
|
|
926,003 |
|
|
|
|
| Homebuilding–3.71% |
|
|
|
|
|
|
|
|
|
|
| Ashton Woods USA LLC/Ashton Woods Finance Co., |
|
|
|
|
|
| Sr. Unsec. Notes,
6.75%, 08/01/2025(c) |
|
|
343,000 |
|
|
|
345,573 |
|
| 6.88%, 02/15/2021(c) |
|
|
402,000 |
|
|
|
413,055 |
|
See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
| Homebuilding–(continued) |
|
|
|
|
|
|
| Beazer Homes USA, Inc.,
Sr. Unsec. Gtd. Global Notes,
6.75%, 03/15/2025 |
|
$ |
641,000 |
|
|
$ 677,665 |
| 8.75%, 03/15/2022 |
|
|
400,000 |
|
|
439,500 |
| Sr. Unsec. Notes,
5.88%, 10/15/2027(c) |
|
|
85,000 |
|
|
85,425 |
| CalAtlantic Group, Inc.,
Sr. Unsec. Gtd. Global Notes,
8.38%, 01/15/2021 |
|
|
112,000 |
|
|
129,920 |
| Sr. Unsec. Gtd. Notes,
5.25%, 06/01/2026 |
|
|
133,000 |
|
|
140,149 |
| 5.38%, 10/01/2022 |
|
|
640,000 |
|
|
693,600 |
| KB Home, Sr. Unsec. Gtd. Notes,
7.50%, 09/15/2022 |
|
|
400,000 |
|
|
461,000 |
| Lennar Corp., Sr. Unsec. Gtd. Global Notes,
4.75%, 11/15/2022 |
|
|
135,000 |
|
|
143,100 |
| Meritage Homes Corp.,
Sr. Unsec. Gtd. Global Notes,
6.00%, 06/01/2025 |
|
|
433,000 |
|
|
468,051 |
| 7.15%, 04/15/2020 |
|
|
300,000 |
|
|
329,250 |
| Taylor Morrison Communities Inc./ Taylor Morrison Holdings
II, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 04/15/2023(c) |
|
|
548,000 |
|
|
583,960 |
| |
|
|
4,910,248 |
|
|
| Household Products–1.79% |
|
|
|
|
|
|
| Reynolds Group Issuer Inc./LLC,
Sr. Sec. Gtd. First Lien
Global Notes, 5.75%, 10/15/2020 |
|
|
287,000 |
|
|
292,202 |
| Sr. Sec. Gtd. First Lien Notes,
5.13%, 07/15/2023(c) |
|
|
207,000 |
|
|
215,021 |
| Sr. Unsec. Gtd. Notes,
7.00%, 07/15/2024(c) |
|
|
614,000 |
|
|
659,927 |
| Spectrum Brands, Inc., Sr. Unsec. Gtd. Global Notes,
5.75%, 07/15/2025 |
|
|
663,000 |
|
|
699,465 |
| Springs Industries, Inc., Sr. Sec. Global Notes, 6.25%,
06/01/2021 |
|
|
492,000 |
|
|
504,300 |
| |
|
|
2,370,915 |
|
| Independent Power Producers & Energy Traders–2.08% |
|
|
|
| AES Corp. (The),
Sr. Unsec. Global
Notes,
8.00%, 06/01/2020 |
|
|
40,000 |
|
|
45,500 |
| Sr. Unsec. Notes,
5.50%, 04/15/2025 |
|
|
1,199,000 |
|
|
1,269,441 |
| Calpine Corp., Sr. Unsec. Global Notes,
5.50%, 02/01/2024 |
|
|
294,000 |
|
|
285,180 |
| Dynegy Inc., Sr. Unsec. Gtd. Global Notes,
7.38%, 11/01/2022 |
|
|
275,000 |
|
|
294,594 |
| NRG Energy, Inc.,
Sr. Unsec. Gtd. Global
Notes,
6.25%, 05/01/2024 |
|
|
306,000 |
|
|
325,890 |
| 6.63%, 03/15/2023 |
|
|
338,000 |
|
|
351,385 |
| 6.63%, 01/15/2027 |
|
|
167,000 |
|
|
180,777 |
| |
|
|
2,752,767 |
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
|
| Industrial Machinery–0.48% |
|
|
|
|
|
|
|
|
| Mueller Industries, Inc., Unsec. Sub. Deb., 6.00%,
03/01/2027 |
|
$ |
401,000 |
|
|
$ |
414,033 |
|
| TriMas Corp., Sr. Unsec. Gtd. Notes, 4.88%, 10/15/2025(c) |
|
|
216,000 |
|
|
|
218,565 |
|
| |
|
|
|
632,598 |
|
|
|
| Integrated Oil & Gas–0.27% |
|
|
|
|
|
|
|
|
| California Resources Corp., Sec. Gtd. Second Lien
Notes,
8.00%, 12/15/2022(c) |
|
|
479,000 |
|
|
|
356,256 |
|
|
|
| Integrated Telecommunication Services–2.64% |
|
|
|
|
|
|
|
|
| CenturyLink, Inc.,
Series S,
Sr. Unsec.
Notes,
6.45%, 06/15/2021 |
|
|
587,000 |
|
|
|
585,896 |
|
| Series Y,
Sr. Unsec. Global Notes,
7.50%, 04/01/2024 |
|
|
580,000 |
|
|
|
566,950 |
|
| Cincinnati Bell Inc., Sr. Unsec. Gtd. Notes,
7.00%, 07/15/2024(c) |
|
|
417,000 |
|
|
|
405,533 |
|
| Frontier Communications Corp.,
Sr. Unsec. Global
Notes,
8.50%, 04/15/2020 |
|
|
727,000 |
|
|
|
666,114 |
|
| 10.50%, 09/15/2022 |
|
|
320,000 |
|
|
|
254,400 |
|
| 11.00%, 09/15/2025 |
|
|
510,000 |
|
|
|
393,975 |
|
| Telecom Italia Capital S.A. (Italy),
Sr. Unsec. Gtd.
Global Notes,
6.38%, 11/15/2033 |
|
|
224,000 |
|
|
|
259,840 |
|
| 7.20%, 07/18/2036 |
|
|
289,000 |
|
|
|
360,166 |
|
| |
|
|
|
3,492,874 |
|
|
|
| Internet Software & Services–1.55% |
|
|
|
|
|
|
|
|
| CyrusOne L.P./CyrusOne Finance Corp.,
Sr. Unsec. Gtd.
Notes,
5.00%, 03/15/2024(c) |
|
|
162,000 |
|
|
|
168,885 |
|
| 5.00%, 03/15/2024(c) |
|
|
160,000 |
|
|
|
166,800 |
|
| 5.38%, 03/15/2027(c) |
|
|
350,000 |
|
|
|
367,500 |
|
| Equinix Inc.,
Sr. Unsec. Notes,
5.75%,
01/01/2025 |
|
|
62,000 |
|
|
|
66,573 |
|
| 5.88%, 01/15/2026 |
|
|
1,171,000 |
|
|
|
1,273,462 |
|
| |
|
|
|
2,043,220 |
|
|
|
| Leisure Facilities–0.77% |
|
|
|
|
|
|
|
|
| Cedar Fair L.P./Canada’s Wonderland Co./Magnum
Management Corp., Sr. Unsec. Gtd. Global Notes, 5.38%, 06/01/2024 |
|
|
295,000 |
|
|
|
310,488 |
|
| Six Flags Entertainment Corp., Sr. Unsec. Gtd. Notes,
4.88%, 07/31/2024(c) |
|
|
700,000 |
|
|
|
714,000 |
|
| |
|
|
|
1,024,488 |
|
|
|
| Managed Health Care–1.09% |
|
|
|
|
|
|
|
|
| Centene Corp., Sr. Unsec. Notes,
4.75%, 01/15/2025 |
|
|
306,000 |
|
|
|
314,660 |
|
| Molina Healthcare, Inc., Sr. Unsec. Gtd. Notes,
4.88%, 06/15/2025(c) |
|
|
331,000 |
|
|
|
332,655 |
|
See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
|
|
| Managed Health Care–(continued) |
|
|
|
|
|
|
|
|
|
|
|
| WellCare Health Plans Inc., Sr.
Unsec. Notes,
5.25%, 04/01/2025 |
|
$ |
745,000 |
|
|
$ |
790,631 |
|
| |
|
|
|
|
|
|
1,437,946 |
|
|
|
|
| Metal & Glass Containers–1.62% |
|
|
|
|
|
|
|
|
|
|
| Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc. (Ireland), |
|
|
|
|
|
| Sr. Sec. Gtd. First Lien Notes,
4.25%, 09/15/2022(c) |
|
|
227,000 |
|
|
|
232,646 |
|
| Sr. Unsec. Gtd. Notes,
6.00%, 02/15/2025(c) |
|
|
200,000 |
|
|
|
213,020 |
|
| 7.25%, 05/15/2024(c) |
|
|
335,000 |
|
|
|
368,081 |
|
| Ball Corp., Sr. Unsec. Gtd. Global Notes,
5.25%, 07/01/2025 |
|
|
425,000 |
|
|
|
466,969 |
|
| Berry Global, Inc.,
Sec. Gtd. Second Lien Global
Notes,
6.00%, 10/15/2022 |
|
|
333,000 |
|
|
|
352,564 |
|
| Sec. Gtd. Second Lien Notes,
5.50%, 05/15/2022 |
|
|
494,000 |
|
|
|
512,525 |
|
| |
|
|
|
|
|
|
2,145,805 |
|
|
|
|
| Movies & Entertainment–1.00% |
|
|
|
|
|
|
|
|
|
|
|
| AMC Entertainment Holdings, Inc.,
Sr. Unsec. Gtd. Sub.
Global Notes, 5.75%, 06/15/2025 |
|
|
860,000 |
|
|
|
841,725 |
|
| Lions Gate Entertainment Corp.,
Sr. Unsec. Gtd.
Notes,
5.88%, 11/01/2024(c) |
|
|
457,000 |
|
|
|
484,991 |
|
| |
|
|
|
|
|
|
1,326,716 |
|
|
|
|
| Oil & Gas Drilling–1.40% |
|
|
|
|
|
|
|
|
|
|
|
| Ensco PLC, Sr. Unsec. Global Notes,
4.50%, 10/01/2024 |
|
|
560,000 |
|
|
|
457,100 |
|
| Noble Holding International Ltd.
(United Kingdom), Sr.
Unsec. Gtd. Global Notes, 7.75%, 01/15/2024 |
|
|
422,000 |
|
|
|
367,140 |
|
| Precision Drilling Corp. (Canada),
Sr. Unsec. Gtd.
Global Notes, 5.25%, 11/15/2024 |
|
|
372,000 |
|
|
|
350,610 |
|
| 6.50%, 12/15/2021 |
|
|
152,000 |
|
|
|
155,420 |
|
| 7.75%, 12/15/2023 |
|
|
92,000 |
|
|
|
95,450 |
|
| Transocean Inc., Sr. Unsec. Gtd. Global Notes,
7.50%, 04/15/2031 |
|
|
480,000 |
|
|
|
424,800 |
|
| |
|
|
|
|
|
|
1,850,520 |
|
|
|
| Oil & Gas Equipment & Services–1.01% |
|
|
|
|
|
|
|
|
| Archrock Partners, L.P./Archrock Partners Finance Corp.,
Sr. Unsec. Gtd. Global Notes, 6.00%, 10/01/2022 |
|
|
230,000 |
|
|
|
230,575 |
|
| SESI, L.L.C., Sr. Unsec. Gtd. Global Notes,
7.13%, 12/15/2021 |
|
|
503,000 |
|
|
|
515,575 |
|
| Weatherford International Ltd.,
Sr. Unsec. Gtd.
Notes,
6.50%, 08/01/2036 |
|
|
511,000 |
|
|
|
411,355 |
|
| 8.25%, 06/15/2023 |
|
|
175,000 |
|
|
|
174,016 |
|
| |
|
|
|
|
|
|
1,331,521 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
|
| Oil & Gas Exploration & Production–8.35% |
|
|
|
|
|
|
|
|
| Callon Petroleum Co., Sr. Unsec. Gtd. Global Notes,
6.13%, 10/01/2024 |
|
$ |
525,000 |
|
|
$ |
543,375 |
|
| Concho Resources Inc., Sr. Unsec. Gtd. Global Notes,
4.38%, 01/15/2025 |
|
|
420,000 |
|
|
|
438,375 |
|
| Continental Resources Inc., Sr. Unsec. Gtd. Global Notes,
3.80%, 06/01/2024 |
|
|
765,000 |
|
|
|
757,350 |
|
| Denbury Resources Inc., Sr. Unsec. Gtd. Sub. Notes,
5.50%, 05/01/2022 |
|
|
314,000 |
|
|
|
207,240 |
|
| EP Energy LLC/Everest Acquisition Finance Inc., Sr. Sec.
Gtd. First Lien Notes, 8.00%, 11/29/2024(c) |
|
|
410,000 |
|
|
|
412,050 |
|
| Gulfport Energy Corp., Sr. Unsec. Gtd. Global Notes,
6.00%, 10/15/2024 |
|
|
488,000 |
|
|
|
492,270 |
|
| Newfield Exploration Co., Sr. Unsec. Global Notes,
5.63%, 07/01/2024 |
|
|
666,000 |
|
|
|
722,610 |
|
| Oasis Petroleum Inc., Sr. Unsec. Gtd. Global Notes,
6.88%, 01/15/2023 |
|
|
641,000 |
|
|
|
655,423 |
|
| Parsley Energy LLC/Parsley Finance Corp., Sr. Unsec. Gtd.
Notes, 6.25%, 06/01/2024(c) |
|
|
887,000 |
|
|
|
942,437 |
|
| QEP Resources, Inc.,
Sr. Unsec. Global
Notes,
5.25%, 05/01/2023 |
|
|
220,000 |
|
|
|
223,850 |
|
| 5.63%, 03/01/2026 |
|
|
207,000 |
|
|
|
210,856 |
|
| Sr. Unsec. Notes,
6.88%, 03/01/2021 |
|
|
591,000 |
|
|
|
641,974 |
|
| Range Resources Corp.,
Sr. Unsec. Gtd. Global Notes,
4.88%, 05/15/2025 |
|
|
497,000 |
|
|
|
487,060 |
|
| 5.88%, 07/01/2022 |
|
|
429,000 |
|
|
|
442,943 |
|
| RSP Permian, Inc., Sr. Unsec. Gtd. Global Notes,
5.25%, 01/15/2025 |
|
|
479,000 |
|
|
|
490,975 |
|
| SM Energy Co.,
Sr. Unsec. Global
Notes,
6.13%, 11/15/2022 |
|
|
292,000 |
|
|
|
297,110 |
|
| 6.75%, 09/15/2026 |
|
|
270,000 |
|
|
|
274,388 |
|
| Southwestern Energy Co., Sr.
Unsec. Global Notes,
4.10%, 03/15/2022 |
|
|
691,000 |
|
|
|
682,362 |
|
| Whiting Petroleum Corp., Sr. Unsec. Gtd. Global Notes,
6.25%, 04/01/2023 |
|
|
880,000 |
|
|
|
884,400 |
|
| WildHorse Resource Development Corp., Sr. Unsec. Gtd.
Global Notes, 6.88%, 02/01/2025 |
|
|
663,000 |
|
|
|
677,990 |
|
| WPX Energy Inc., Sr. Unsec. Notes,
5.25%, 09/15/2024 |
|
|
563,000 |
|
|
|
555,963 |
|
| |
|
|
|
|
|
|
11,041,001 |
|
|
|
| Oil & Gas Storage & Transportation–7.58% |
|
|
|
|
|
|
|
| Andeavor Logistics LP/Tesoro Logistics Finance Corp., |
|
|
|
|
|
| Sr. Unsec. Gtd. Global Notes,
6.38%, 05/01/2024 |
|
|
1,321,000 |
|
|
|
1,440,220 |
|
| Sr. Unsec. Gtd. Notes,
5.25%, 01/15/2025 |
|
|
149,000 |
|
|
|
157,381 |
|
See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
| Oil & Gas Storage & Transportation–(continued) |
|
|
|
|
| Antero Midstream Partners LP/Antero Midstream Finance
Corp., Sr. Unsec. Gtd. Global Notes, 5.38%, 09/15/2024 |
|
$ |
860,000 |
|
|
$ |
892,250 |
|
| Antero Resources Corp., Sr. Unsec. Gtd. Global Notes,
5.63%, 06/01/2023 |
|
|
794,000 |
|
|
|
831,715 |
|
| Energy Transfer Equity, L.P., Sr. Sec. First Lien Notes,
5.88%, 01/15/2024 |
|
|
1,102,000 |
|
|
|
1,184,650 |
|
| Energy Transfer Partners, L.P., Series A, Jr. Unsec. Sub.
Global Notes,
6.25% (e) |
|
|
400,000 |
|
|
|
394,750 |
|
| Holly Energy Partners L.P./Holly Energy Finance Corp., Sr.
Unsec. Gtd. Notes,
6.00%, 08/01/2024(c) |
|
|
253,000 |
|
|
|
265,018 |
|
| NGPL PipeCo. LLC, Sr. Unsec. Bonds,
4.88%, 08/15/2027(c) |
|
|
99,000 |
|
|
|
103,150 |
|
| Plains All American Pipeline, L.P., Series B, Jr. Unsec.
Sub. Notes, 6.13% (e) |
|
|
423,000 |
|
|
|
419,299 |
|
| Sabine Pass Liquefaction, LLC, Sr. Sec. First Lien Global
Notes,
5.63%, 03/01/2025 |
|
|
1,627,000 |
|
|
|
1,792,978 |
|
| SemGroup Corp., Sr. Unsec. Gtd. Notes,
6.38%, 03/15/2025(c) |
|
|
515,000 |
|
|
|
513,712 |
|
| Targa Resources Partners L.P./Targa Resources Partners Finance Corp., |
|
|
|
|
|
| Sr. Unsec. Gtd. Global Bonds,
5.13%, 02/01/2025 |
|
|
478,000 |
|
|
|
490,548 |
|
| 5.25%, 05/01/2023 |
|
|
266,000 |
|
|
|
273,315 |
|
| Williams Cos., Inc. (The), Sr. Unsec. Global Notes, 4.55%,
06/24/2024 |
|
|
876,000 |
|
|
|
912,135 |
|
| Sr. Unsec. Notes, 7.88%, 09/01/2021 |
|
|
304,000 |
|
|
|
355,680 |
|
| |
|
|
|
|
|
|
10,026,801 |
|
|
|
| Other Diversified Financial Services–0.91% |
|
|
|
|
|
|
|
|
| Lincoln Finance Ltd. (Netherlands), Sr. Sec. Gtd. First
Lien Notes,
7.38%, 04/15/2021(c) |
|
|
521,000 |
|
|
|
547,701 |
|
| LPL Holdings Inc., Sr. Unsec. Gtd. Notes, 5.75%, 09/15/2025(c) |
|
|
474,000 |
|
|
|
488,813 |
|
| VFH Parent LLC/Orchestra
Co-Issuer Inc., Sec. Gtd. Second Lien Notes,
6.75%, 06/15/2022(c) |
|
|
165,000 |
|
|
|
173,456 |
|
| |
|
|
|
|
|
|
1,209,970 |
|
|
|
| Packaged Foods & Meats–1.78% |
|
|
|
|
|
|
|
|
| B&G Foods, Inc., Sr. Unsec. Gtd. Notes,
5.25%,
04/01/2025 |
|
|
359,000 |
|
|
|
367,939 |
|
| JBS Investments GmbH (Brazil), Sr. Unsec. Gtd.
Notes,
7.25%, 04/03/2024(c) |
|
|
355,000 |
|
|
|
353,562 |
|
| REGS,
Sr. Unsec. Gtd. Euro Notes,
7.25%, 04/03/2024(c) |
|
|
200,000 |
|
|
|
199,750 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
|
| Packaged Foods & Meats–(continued) |
|
|
|
|
|
|
|
|
| JBS USA Lux S.A./JBS USA Finance Inc. (Brazil), Sr. Unsec.
Gtd. Notes,
5.75%, 06/15/2025(c) |
|
$ |
176,000 |
|
|
$ |
172,700 |
|
| Lamb Weston Holdings Inc., Sr. Unsec. Gtd. Notes, 4.63%,
11/01/2024(c) |
|
|
412,000 |
|
|
|
427,965 |
|
| TreeHouse Foods, Inc., Sr. Unsec. Gtd. Notes, 6.00%,
02/15/2024(c) |
|
|
796,000 |
|
|
|
836,795 |
|
| |
|
|
|
|
|
|
2,358,711 |
|
|
|
| Paper Packaging–0.80% |
|
|
|
|
|
|
|
|
| Graphic Packaging International Inc., Sr. Unsec. Gtd.
Notes, 4.88%, 11/15/2022 |
|
|
477,000 |
|
|
|
509,794 |
|
| Plastipak Holdings Inc., Sr. Unsec. Notes, 6.25%,
10/15/2025(c) |
|
|
536,000 |
|
|
|
548,060 |
|
| |
|
|
|
|
|
|
1,057,854 |
|
|
|
| Paper Products–1.58% |
|
|
|
|
|
|
|
|
| Clearwater Paper Corp., Sr. Unsec. Gtd. Global Notes,
4.50%, 02/01/2023 |
|
|
729,000 |
|
|
|
730,823 |
|
| Mercer International Inc. (Canada), Sr. Unsec. Global
Notes,
6.50%, 02/01/2024 |
|
|
200,000 |
|
|
|
211,750 |
|
| 7.75%, 12/01/2022 |
|
|
228,000 |
|
|
|
241,965 |
|
| PH Glatfelter Co., Sr. Unsec. Gtd. Global Notes, 5.38%,
10/15/2020 |
|
|
381,000 |
|
|
|
387,191 |
|
| Rayonier A.M. Products Inc., Sr. Unsec. Gtd. Notes, 5.50%,
06/01/2024(c) |
|
|
527,000 |
|
|
|
522,578 |
|
| |
|
|
|
|
|
|
2,094,307 |
|
|
|
| Pharmaceuticals–1.91% |
|
|
|
|
|
|
|
|
| Catalent Pharma Solutions, Inc., Sr. Unsec. Gtd. Notes,
4.88%, 01/15/2026(c) |
|
|
113,000 |
|
|
|
114,695 |
|
| Endo DAC/Endo Finance LLC/Endo Finco Inc., Sr. Unsec. Gtd.
Notes,
6.00%, 07/15/2023(c) |
|
|
275,000 |
|
|
|
211,750 |
|
| Valeant Pharmaceuticals International, Inc., Sr. Sec. Gtd.
First Lien Notes,
5.50%, 11/01/2025(c) |
|
|
346,000 |
|
|
|
351,190 |
|
| Sr. Unsec. Gtd. Notes,
5.63%, 12/01/2021(c) |
|
|
1,136,000 |
|
|
|
1,062,160 |
|
| 5.88%, 05/15/2023(c) |
|
|
227,000 |
|
|
|
198,909 |
|
| 6.13%, 04/15/2025(c) |
|
|
400,000 |
|
|
|
344,500 |
|
| 7.25%, 07/15/2022(c) |
|
|
250,000 |
|
|
|
244,062 |
|
| |
|
|
|
|
|
|
2,527,266 |
|
|
|
| Restaurants–1.05% |
|
|
|
|
|
|
|
|
| Aramark Services, Inc., Sr. Unsec. Gtd. Notes, 5.00%,
04/01/2025(c) |
|
|
433,000 |
|
|
|
462,227 |
|
| Carrols Restaurant Group, Inc., Sec. Gtd. Second Lien
Global Notes,
8.00%, 05/01/2022 |
|
|
651,000 |
|
|
|
690,874 |
|
See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
|
| Restaurants–(continued) |
|
|
|
|
|
|
|
|
| KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America
LLC,
Sr. Unsec. Gtd. Notes, 4.75%, 06/01/2027(c) |
|
$ |
232,000 |
|
|
$ |
238,009 |
|
| |
|
|
|
1,391,110 |
|
|
|
| Security & Alarm Services–1.00% |
|
|
|
|
|
|
|
|
| Prime Security Services Borrower, LLC/Prime Finance, Inc.,
Sec. Gtd. Second Lien Notes, 9.25%, 05/15/2023(c) |
|
|
1,196,000 |
|
|
|
1,323,075 |
|
|
|
| Semiconductor Equipment–0.20% |
|
|
|
|
|
|
|
|
| Entegris Inc., Sr. Unsec. Gtd. Notes,
4.63%, 02/10/2026(c) |
|
|
252,000 |
|
|
|
258,615 |
|
|
|
| Semiconductors–0.81% |
|
|
|
|
|
|
|
|
| Micron Technology, Inc., Sr. Unsec. Global Notes, 5.50%,
02/01/2025 |
|
|
595,000 |
|
|
|
630,879 |
|
| NXP B.V./NXP Funding LLC (Netherlands), Sr. Unsec. Gtd.
Notes, 5.75%, 03/15/2023(c) |
|
|
420,000 |
|
|
|
435,750 |
|
| |
|
|
|
1,066,629 |
|
|
|
| Specialized Consumer Services–1.14% |
|
|
|
|
|
|
|
|
| ServiceMaster Co., LLC (The),
Sr. Unsec. Gtd.
Notes,
5.13%, 11/15/2024(c) |
|
|
424,000 |
|
|
|
431,420 |
|
| Sr. Unsec. Notes,
7.45%, 08/15/2027 |
|
|
992,000 |
|
|
|
1,078,800 |
|
| |
|
|
|
1,510,220 |
|
|
|
| Specialized Finance–3.60% |
|
|
|
|
|
|
|
|
| AerCap Global Aviation Trust (Ireland), Jr. Unsec. Gtd.
Sub. Notes, 6.50%, 06/15/2045(c) |
|
|
430,000 |
|
|
|
470,850 |
|
| Aircastle Ltd.,
Sr. Unsec. Global
Notes,
7.63%, 04/15/2020 |
|
|
155,000 |
|
|
|
170,694 |
|
| Sr. Unsec. Notes,
5.00%, 04/01/2023 |
|
|
840,000 |
|
|
|
890,400 |
|
| 5.50%, 02/15/2022 |
|
|
159,000 |
|
|
|
171,919 |
|
| CIT Group Inc.,
Sr. Unsec. Global Notes,
5.00%, 08/15/2022 |
|
|
618,000 |
|
|
|
662,032 |
|
| 5.00%, 08/01/2023 |
|
|
415,000 |
|
|
|
447,661 |
|
| Fly Leasing Ltd. (Ireland), Sr. Unsec. Global Notes,
6.75%, 12/15/2020 |
|
|
1,022,000 |
|
|
|
1,058,613 |
|
| MSCI Inc., Sr. Unsec. Gtd. Notes., 5.25%, 11/15/2024(c) |
|
|
830,000 |
|
|
|
881,875 |
|
| |
|
|
|
4,754,044 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
|
| Specialized REIT’s–1.12% |
|
|
|
|
|
|
|
|
| GLP Capital LP/GLP Financing II Inc., Sr. Unsec. Gtd.
Notes, 5.38%, 04/15/2026 |
|
$ |
535,000 |
|
|
$ |
578,800 |
|
| Iron Mountain Inc., Sr. Unsec. Gtd. Notes,
6.00%, 08/15/2023 |
|
|
386,000 |
|
|
|
406,381 |
|
| Iron Mountain US Holdings, Inc., Sr. Unsec. Gtd. Notes,
5.38%, 06/01/2026(c) |
|
|
474,000 |
|
|
|
498,885 |
|
| |
|
|
|
1,484,066 |
|
|
|
| Specialty Chemicals–3.45% |
|
|
|
|
|
|
|
|
| Ashland LLC, Sr. Unsec. Gtd. Global Notes, 4.75%,
08/15/2022 |
|
|
425,000 |
|
|
|
444,125 |
|
| Axalta Coating Systems, LLC, Sr. Unsec. Gtd.
Notes, 4.88%, 08/15/2024(c) |
|
|
472,000 |
|
|
|
495,600 |
|
| GCP Applied Technologies Inc., Sr. Unsec. Gtd. Notes,
9.50%, 02/01/2023(c) |
|
|
630,000 |
|
|
|
703,237 |
|
| Kraton Polymers LLC/Kraton Polymers Capital Corp., Sr.
Unsec. Gtd. Notes, 10.50%, 04/15/2023(c) |
|
|
623,000 |
|
|
|
708,662 |
|
| Platform Specialty Products Corp., Sr. Unsec. Gtd. Notes,
5.88%, 12/01/2025(c) |
|
|
579,000 |
|
|
|
584,066 |
|
| PolyOne Corp., Sr. Unsec. Global Notes,
5.25%, 03/15/2023 |
|
|
395,000 |
|
|
|
425,613 |
|
| PQ Corp.,
Sr. Sec. Gtd. First Lien Notes,
6.75%, 11/15/2022(c) |
|
|
448,000 |
|
|
|
484,400 |
|
| Sr. Unsec. Gtd. Notes,
5.75%, 12/15/2025(c) |
|
|
88,000 |
|
|
|
90,200 |
|
| Valvoline Inc., Sr. Unsec. Gtd. Notes,
5.50%, 07/15/2024(c) |
|
|
380,000 |
|
|
|
404,700 |
|
| Venator Finance S.a.r.l./Venator Materials Corp., Sr.
Unsec. Gtd. Notes, 5.75%, 07/15/2025(c) |
|
|
205,000 |
|
|
|
216,788 |
|
| |
|
|
|
4,557,391 |
|
|
|
| Steel–1.71% |
|
|
|
|
|
|
|
|
| ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes, 7.50%,
10/15/2039 |
|
|
392,000 |
|
|
|
494,900 |
|
| Steel Dynamics, Inc., Sr. Unsec. Gtd. Global Notes,
5.00%, 12/15/2026 |
|
|
365,000 |
|
|
|
386,674 |
|
| SunCoke Energy Partners, L.P./ SunCoke Energy Partners
Finance Corp., Sr. Unsec. Gtd. Notes, 7.50%, 06/15/2025(c) |
|
|
439,000 |
|
|
|
464,791 |
|
| United States Steel Corp., Sr. Unsec. Global Notes,
6.88%, 08/15/2025 |
|
|
876,000 |
|
|
|
910,865 |
|
| |
|
|
|
2,257,230 |
|
|
|
| Systems Software–0.34% |
|
|
|
|
|
|
|
|
| Symantec Corp., Sr. Unsec. Notes, 5.00%, 04/15/2025(c) |
|
|
433,000 |
|
|
|
454,650 |
|
See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
|
|
| Technology Distributors–0.35% |
|
|
|
|
|
|
|
|
| CDW LLC/CDW Finance Corp., Sr. Unsec. Gtd. Notes,
5.00%,
09/01/2025 |
|
$ |
441,000 |
|
|
$ |
463,050 |
|
|
| Technology Hardware, Storage & Peripherals–3.11% |
|
|
|
|
| CommScope Technologies LLC, Sr. Unsec. Gtd.
Notes,
6.00%, 06/15/2025(c) |
|
|
1,253,000 |
|
|
|
1,346,975 |
|
| Dell International LLC/ EMC Corp., Sr. Unsec. Gtd.
Notes,
7.13%, 06/15/2024(c) |
|
|
1,191,000 |
|
|
|
1,292,736 |
|
| Diebold Nixdorf, Inc., Sr. Unsec. Gtd. Global Notes, 8.50%,
04/15/2024 |
|
|
554,000 |
|
|
|
597,627 |
|
| Western Digital Corp., Sr. Unsec. Gtd. Global Notes,
10.50%, 04/01/2024 |
|
|
757,000 |
|
|
|
880,486 |
|
| |
|
|
|
4,117,824 |
|
|
|
| Trading Companies & Distributors–2.14% |
|
|
|
|
|
|
|
|
| BMC East, LLC, Sr. Sec. Gtd. First Lien Notes, 5.50%,
10/01/2024(c) |
|
|
647,000 |
|
|
|
669,645 |
|
| H&E Equipment Services, Inc., Sr. Unsec. Gtd.
Notes,
5.63%, 09/01/2025(c) |
|
|
735,000 |
|
|
|
771,750 |
|
| Herc Rentals Inc., Sec. Gtd. Second Lien Notes, 7.75%,
06/01/2024(c) |
|
|
612,000 |
|
|
|
673,261 |
|
| United Rentals North America, Inc., Sr. Unsec. Gtd. Global
Notes,
5.50%, 07/15/2025 |
|
|
469,000 |
|
|
|
500,657 |
|
| Sr. Unsec. Gtd. Notes,
5.50%, 05/15/2027 |
|
|
197,000 |
|
|
|
209,313 |
|
| |
|
|
|
|
|
|
2,824,626 |
|
|
|
| Trucking–1.11% |
|
|
|
|
|
|
|
|
| Avis Budget Car Rental LLC/Avis Budget Finance Inc., Sr.
Unsec. Gtd. Notes, 5.25%, 03/15/2025(c) |
|
|
269,000 |
|
|
|
265,974 |
|
| Hertz Corp. (The), Sec. Gtd. Second Lien Notes, 7.63%,
06/01/2022(c) |
|
|
179,000 |
|
|
|
185,215 |
|
| Kenan Advantage Group Inc. (The), Sr. Unsec. Notes, 7.88%,
07/31/2023(c) |
|
|
982,000 |
|
|
|
1,021,280 |
|
| |
|
|
|
1,472,469 |
|
|
|
| Wireless Telecommunication Services–5.93% |
|
|
|
|
|
|
|
|
| Altice Luxembourg S.A. (Luxembourg), Sr. Unsec. Gtd.
Notes,
7.63%, 02/15/2025(c) |
|
|
206,000 |
|
|
|
188,748 |
|
| 7.75%, 05/15/2022(c) |
|
|
666,000 |
|
|
|
636,862 |
|
| Altice US Finance I Corp., Sr. Sec. Notes, 5.50%,
05/15/2026(c) |
|
|
425,000 |
|
|
|
431,375 |
|
| CB Escrow Corp., Sr. Unsec. Notes, 8.00%, 10/15/2025(c) |
|
|
84,000 |
|
|
|
84,840 |
|
| SBA Communications Corp., Sr. Unsec. Global
Notes,
4.88%, 09/01/2024 |
|
|
895,000 |
|
|
|
928,562 |
|
|
|
|
|
|
|
|
| |
|
Principal
Amount |
|
|
Value |
|
| Wireless Telecommunication Services–(continued) |
|
|
|
| Sprint Communications Inc., Sr. Unsec. Global Notes,
11.50%, 11/15/2021 |
|
|
$ 390,000 |
|
|
$ 475,800 |
| Sprint Corp., Sr. Unsec. Gtd. Global Notes,
7.25%, 09/15/2021 |
|
|
816,000 |
|
|
871,080 |
| 7.63%, 02/15/2025 |
|
|
335,000 |
|
|
356,608 |
| 7.88%, 09/15/2023 |
|
|
1,599,000 |
|
|
1,726,920 |
| T-Mobile USA, Inc.,
Sr. Unsec. Gtd. Global Bonds, 6.50%, 01/15/2026 |
|
|
351,000 |
|
|
385,549 |
| Sr. Unsec. Gtd. Global Notes,
6.38%, 03/01/2025 |
|
|
1,270,000 |
|
|
1,366,456 |
| Wind Tre S.p.A. (Italy),
Sr. Sec. Gtd. Notes,
5.00%, 01/20/2026(c) |
|
|
400,000 |
|
|
384,644 |
| |
|
|
7,837,444 |
| Total U.S. Dollar Denominated
Bonds & Notes
(Cost $168,683,018) |
|
|
172,435,999 |
|
| Variable Rate Senior Loan
Interests–1.28%(h) |
|
|
| Business Equipment & Services–0.57% |
|
|
|
|
|
|
| Itron, Inc., Bridge Loan, —, 06/30/2018(f)(i) |
|
|
752,000 |
|
|
752,000 |
|
|
| Food & Drug Retailers–0.71% |
|
|
|
|
|
|
| Albertson’s LLC, Term Loan B-4, 4.10% (3 mo. USD LIBOR + 2.75%), 08/25/2021 |
|
|
968,573 |
|
|
942,847 |
| Total Variable Rate Senior Loan
Interests
(Cost $1,682,331) |
|
|
1,694,847 |
|
| Non-U.S. Dollar Denominated Bonds &
Notes–0.66%(j) |
|
|
| Food Retail–0.29% |
|
|
|
|
|
|
| Iceland Bondco PLC (United Kingdom), REGS, Sr. Sec. Gtd.
Euro Notes,
4.63%, 03/15/2025(c) |
|
GBP |
300,000 |
|
|
385,566 |
|
|
| Health Care Services–0.37% |
|
|
|
|
|
|
| Synlab Unsecured Bondco PLC (United Kingdom), REGS, Sr.
Unsec. Gtd. Euro Bonds, 8.25%, 07/01/2023(c) |
|
EUR |
375,000 |
|
|
488,990 |
| Total
Non-U.S. Dollar Denominated Bonds & Notes
(Cost $823,581) |
|
|
874,556 |
| |
|
Shares |
|
|
|
|
|
| Preferred Stock–0.09% |
|
|
|
|
|
| Specialized Finance–0.09% |
|
|
|
|
|
|
| CIT Group Inc., Series A, 5.80% Pfd.
(Cost
$115,000) |
|
|
115,000 |
|
|
118,881 |
See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
|
|
|
|
|
|
|
|
|
| |
|
Shares |
|
|
Value |
|
|
|
| Money Market Funds–1.65% |
|
|
|
|
|
|
|
|
| Invesco Government & Agency Portfolio –
Institutional Class, 0.98% (k) |
|
|
762,221 |
|
|
$ |
762,221 |
|
| Invesco Liquid Assets Portfolio – Institutional Class,
0.88% (k) |
|
|
544,337 |
|
|
|
544,446 |
|
| Invesco Treasury Portfolio – Institutional Class,
0.98% (k) |
|
|
871,109 |
|
|
|
871,109 |
|
| Total Money Market Funds
(Cost
$2,177,776) |
|
|
|
2,177,776 |
|
| TOTAL INVESTMENTS IN
SECURITIES–134.07%
(Cost $173,481,706) |
|
|
|
177,302,059 |
|
| OTHER ASSETS LESS
LIABILITIES–1.89% |
|
|
|
2,492,519 |
|
| BORROWINGS–(35.96)% |
|
|
|
(47,550,000) |
|
| NET ASSETS–100.00% |
|
|
$ |
132,244,578 |
|
|
|
|
| Investment Abbreviations: |
|
|
| Deb. |
|
—Debentures |
| EUR |
|
—Euro |
| GBP |
|
—British Pound Sterling |
| Gtd. |
|
—Guaranteed |
| Jr. |
|
—Junior |
| LIBOR |
|
—London Interbank Offered Rate |
| Pfd. |
|
—Preferred |
| PIK |
|
—Pay-in-Kind |
| REGS |
|
—Regulation S |
| REIT |
|
—Real Estate Investment Trust |
| Sec. |
|
—Secured |
| Sr. |
|
—Senior |
| Sub. |
|
—Subordinated |
| Unsec. |
|
—Unsecured |
| USD |
|
—U.S. Dollar |
Notes to Schedule of Investments:
| (a) |
Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and
Standard & Poor’s. |
| (b) |
Calculated as a percentage of net assets. Amounts in excess of 100% are due to the Trust’s use of leverage. |
| (c) |
Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration
under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at November 30, 2017 was $69,650,719, which represented 52.67% of the Trust’s Net Assets. |
| (d) |
Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The value of this security at November 30, 2017 represented less than 1% of the Trust’s Net Assets.
|
| (e) |
Perpetual bond with no specified maturity date. |
| (f) |
Security valued using significant unobservable inputs (Level 3). See Note 2. |
| (g) |
All or a portion of this security is Pay-in-Kind.
Pay-in-Kind securities pay interest income in the form of securities. |
| (h) |
Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the
Trust’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days but not greater than one year; and/or have interest rates that float at
a margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank. |
| (i) |
This variable rate interest will settle after November 30, 2017, at which time the interest rate will be determined. |
| (j) |
Foreign denominated security. Principal amount is denominated in the currency indicated. |
| (k) |
The money market fund and the Trust are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of November 30, 2017.
|
See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Open Forward Foreign Currency Contracts |
|
| Settlement
Date |
|
Counterparty |
|
Contract to |
|
|
Unrealized
Appreciation |
|
| |
|
Deliver |
|
|
Receive |
|
|
(Depreciation) |
|
|
02/28/2018 |
|
Barclays Bank PLC |
|
EUR |
|
|
523,839 |
|
|
USD |
|
|
618,758 |
|
|
$ |
(8,350) |
|
| 02/28/2018 |
|
Barclays Bank PLC |
|
GBP |
|
|
299,000 |
|
|
USD |
|
|
397,265 |
|
|
|
(8,444) |
|
| Total
Forward Foreign Currency Contracts—Currency Risk |
|
|
$ |
(16,794) |
|
|
|
|
|
|
|
|
|
| EUR — Euro |
|
GBP — British Pound Sterling |
|
USD — U. S. Dollar |
See accompanying notes which are an
integral part of this schedule.
Invesco High Income Trust II
Notes to Quarterly Schedule of Portfolio Holdings
November 30, 2016
(Unaudited)
NOTE 1 — Significant Accounting Policies
| A. |
Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by
an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size
trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations),
individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a trust may hold or transact in the same securities in smaller, odd lot
sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal
payments.
Variable rate senior loan interests are fair valued using quotes provided by an independent pricing service.
Quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in
similar groups of securities and other market data.
A security listed or traded on an exchange (except convertible
securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day,
the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent
pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally
traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and
asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end
registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in
open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the
customary trading session on the exchange where the security is principally traded.
Foreign securities’ (including
foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities
will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close
of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price
of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing
service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the
approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining
adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential
for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by
independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in
good faith by or under the supervision of the Fund’s officers following procedures approved by the Board of Directors. Issuer
Invesco High Income Trust II
| A. |
Security Valuations – (continued) |
specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s
fair value.
The Trust may invest in securities that are subject to interest rate risk, meaning the risk that the prices
will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual
characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Trust investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the
issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value
received upon actual sale of those investments.
| B. |
Securities Transactions and Investment Income – Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the
securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind income received in the form of securities in-lieu of cash is recorded as interest income. Dividend income (net of
withholding tax, if any) is recorded on the ex-dividend date. |
The
Trust may periodically participate in litigation related to Trust investments. As such, the Trust may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for
investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups
are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and
unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction
costs are included in the calculation of the Trust’s net asset value and, accordingly, they reduce the Trust’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income
reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense
limitation arrangements between the Trust and the investment adviser.
| C. |
Country Determination – For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is
located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of
its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains
50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America,
unless otherwise noted. |
| D. |
Securities Purchased on a When-Issued and Delayed Delivery Basis – The Trust may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued
and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Trust on such interests or securities in connection with such transactions prior to the date the Trust actually takes delivery of such
interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Trust will generally purchase these securities
with the intention of acquiring such securities, they may sell such securities prior to the settlement date. |
| E. |
Foreign Currency Translations – Foreign currency is valued at the close of the NYSE based on
quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities
(net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not separately account for the portion of the
results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of
market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from
(1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes
recorded on the Trust’s books and the U.S. dollar equivalent of the amounts |
Invesco High Income Trust II
| E. |
Foreign Currency Translations – (continued) |
actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period
end, resulting from changes in exchange rates.
The Trust may invest in foreign securities, which may be subject to foreign
taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Trust invests and are
shown in the Statement of Operations.
| F. |
Forward Foreign Currency Contracts – The Trust may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to
manage or minimize currency or exchange rate risk. |
The Trust may also enter into forward foreign currency
contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Trust may also enter into forward foreign currency contracts that do not provide for
physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Trust will set aside liquid assets in an amount equal to the daily mark-to-market obligation for
forward foreign currency contracts.
A forward foreign currency contract is an obligation between two parties
(“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Trust owns or
intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation
(depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated
with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of
Assets and Liabilities.
| G. |
Leverage Risk – The Trust may utilize leverage to seek to enhance the yield of the Trust by borrowing or issuing preferred shares. There are risks associated with borrowing or issuing preferred shares in an
effort to increase the yield and distributions on the common shares, including that the costs of the financial leverage may exceed the income from investments made with such leverage, the higher volatility of the net asset value of the common
shares, and that fluctuations in the interest rates on the borrowing or dividend rates on preferred shares may affect the yield and distributions to the common shareholders. There can be no assurance that the Trust’s leverage strategy will be
successful. |
| H. |
Bank Loan Risk – Although the resale, or secondary market for floating rate loans has grown substantially over the past decade, both in overall size and number of market participants, there is no organized
exchange or board of trade on which floating rate loans are traded. Instead, the secondary market for floating rate loans is a private, unregulated interdealer or interbank resale market. Such a market may therefore be subject to irregular trading
activity, wide bid/ask spreads, and extended trade settlement periods, which may impair the Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective
investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations.
Similar to other asset classes, bank loan funds may be exposed to counterparty credit risk, or the risk than an entity with which the Trust has unsettled or open transactions may fail to or be unable to perform on its commitments. The Trust seeks to
manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. |
| I. |
Other Risks – The Fund may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive
to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims. |
Invesco High Income Trust II
NOTE 2 — Additional Valuation Information
Generally Accepted Accounting Principles (“GAAP”) defines fair value as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available
unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation
inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
|
|
|
| Level 1 – |
|
Prices are determined using quoted prices in an active market for identical assets. |
| Level 2 – |
|
Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates,
prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. |
| Level 3 – |
|
Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the
period), unobservable inputs may be used. Unobservable inputs reflect the Trust’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best
available information. |
The following is a summary of the tiered valuation input levels, as of November 30, 2017. The level
assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may
materially differ from the value received upon actual sale of those investments.
The Trust’s policy is to recognize transfers in and
out of the valuation levels as of the end of the reporting period. During the nine months ended November 30, 2017, there were no material transfers between valuation levels.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| U.S. Dollar Denominated Bonds &
Notes |
|
$ |
— |
|
|
$ |
172,435,999 |
|
|
$ |
— |
|
|
$ |
172,435,999 |
|
| Variable Rate Senior Loan Interests |
|
|
— |
|
|
|
942,847 |
|
|
|
752,000 |
|
|
|
1,694,847 |
|
|
Non-U.S. Dollar Denominated Bonds & Notes |
|
|
— |
|
|
|
874,556 |
|
|
|
— |
|
|
|
874,556 |
|
| Preferred Stock |
|
|
— |
|
|
|
118,881 |
|
|
|
— |
|
|
|
118,881 |
|
| Money Market Funds |
|
|
2,177,776 |
|
|
|
— |
|
|
|
— |
|
|
|
2,177,776 |
|
| Investments Matured |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
6 |
|
| |
|
|
2,177,776 |
|
|
|
174,372,283 |
|
|
|
752,006 |
|
|
|
177,302,065 |
|
| Forward Foreign Currency Contracts* |
|
|
— |
|
|
|
(16,794) |
|
|
|
— |
|
|
|
(16,794) |
|
| Total
Investments |
|
$ |
2,177,776 |
|
|
$ |
174,355,489 |
|
|
$ |
752,006 |
|
|
$ |
177,285,271 |
|
| * |
Unrealized appreciation (depreciation). |
NOTE 3 — Senior Loan Participation Commitments
The Trust invests in participations, assignments, or acts as a party to the primary lending syndicate of a Senior Loan interest to corporations, partnerships,
and other entities. When the Trust purchases a participation of a Senior Loan interest, the Trust typically enters into a contractual agreement with the lender or other third party selling the participation, but not with the borrower directly. As
such, the Trust assumes the credit risk of the borrower, selling participant or other persons interpositioned between the Trust and the borrower.
At the nine months ended November 30, 2017, the following sets forth the selling participants with respect to interest in Senior Loans
purchased by the Trust on a participation basis.
|
|
|
|
|
| Selling Participant
|
|
Principal Amount
|
|
Value
|
| Wells Fargo Bank, N.A. |
|
$ 752,000 |
|
$ 752,000 |
Invesco High Income Trust II
| Item 2. |
Controls and Procedures. |
| |
(a) |
As of November 17, 2017, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal
Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule
30a-3(c) under the Investment Company Act of 1940 (“Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of November 17,
2017, the Registrant’s disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on Form N-Q is recorded, processed,
summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow
timely decisions regarding required disclosure. |
| |
(b) |
There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under
the Act) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Certifications of PEO and PFO as required by Rule 30a-2(a) under the Investment
Company Act of 1940.
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: Invesco High Income Trust II
|
|
|
| By: |
|
/s/ Sheri Morris |
|
|
Sheri Morris |
|
|
Principal Executive Officer |
|
|
| Date: |
|
January 29, 2018 |
Pursuant to the requirements of the Securities and 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/ Sheri Morris |
|
|
Sheri Morris |
|
|
Principal Executive Officer |
|
|
| Date: |
|
January 29, 2018 |
|
|
| By: |
|
/s/ Kelli Gallegos |
|
|
Kelli Gallegos |
|
|
Principal Financial Officer |
|
|
| Date: |
|
January 29, 2018 |
EXHIBIT INDEX
Certifications of Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) as required by Rule 30a-2(a)
under the Investment Company Act of 1940, as amended.