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 811-08603
Name of Fund: BlackRock Debt Strategies Fund, Inc. (DSU)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock Debt Strategies Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 02/28/2009
Date of reporting period: 09/01/2008 - 11/30/2008
Item 1 - Schedule of Investments
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Industry Corporate Bonds (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Aerospace & Defense - 2.4% Alliant Techsystems, Inc., 3%, 8/15/24 (a)(b) USD 5,000 $ 5,537,500
Hawker Beechcraft Acquisition Co. LLC, 8.50%, 4/01/15 4,000 1,880,000
--------------
7,417,500
----------------------------------------------------------------------------------------------------------------------------------
Auto Components - 0.2% Allison Transmission, Inc., 11%, 11/01/15 (b) 320 156,800
Allison Transmission, Inc., 11.25%, 11/01/15 (b)(c) 1,020 413,100
The Goodyear Tire & Rubber Co., 8.625%, 12/01/11 2 1,492
Lear Corp., 8.75%, 12/01/16 700 150,500
Venture Holdings Co. LLC, 12%, 6/01/09 (d)(e)(f) 4,450 --
Venture Holdings Co. LLC Series B, 9.50%,
7/01/05 (d)(e)(f)(g) 1,800 180
--------------
722,072
----------------------------------------------------------------------------------------------------------------------------------
Building Products - 3.4% Building Materials Corp. of America, 7.75%, 8/01/14 4,000 2,540,000
CPG International I, Inc., 9.904%, 7/01/12 (h) 7,500 4,200,000
CPG International I, Inc., 10.50%, 7/01/13 1,300 728,000
Momentive Performance Materials, Inc. Series WI, 9.75%,
12/01/14 1,600 620,000
Ply Gem Industries, Inc., 11.75%, 6/15/13 4,500 2,666,250
--------------
10,754,250
----------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 2.2% E*Trade Financial Corp., 12.50%, 11/30/17 (b) 10,625 6,959,375
----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 7.2% American Pacific Corp., 9%, 2/01/15 1,490 1,296,300
ARCO Chemical Co., 9.80%, 2/01/20 3,550 1,136,000
GEO Specialty Chemicals Corp., 7.50%, 3/31/15 (a)(b)(c)(e) 3,917 2,933,054
GEO Specialty Chemicals, Inc., 12.553%, 12/31/09 (a) 6,415 4,803,231
Hexion U.S. Finance Corp., 6.649%, 11/15/14 (h) 4,600 2,254,000
MacDermid, Inc., 9.50%, 4/15/17 (b) 6,360 3,434,400
NOVA Chemicals Corp., 5.72%, 11/15/13 (h) 12,305 6,583,175
--------------
22,440,160
----------------------------------------------------------------------------------------------------------------------------------
Commercial Services & US Investigations Services, Inc., 10.50%, 11/01/15 (b) 3,400 2,482,000
Supplies - 1.3% West Corp., 11%, 10/15/16 3,270 1,406,100
--------------
3,888,100
----------------------------------------------------------------------------------------------------------------------------------
Construction Materials - 2.1% Nortek Holdings, Inc., 10%, 12/01/13 6,830 4,781,000
Nortek, Inc., 8.50%, 9/01/14 5,850 1,784,250
--------------
6,565,250
----------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 5.5% Berry Plastics Holding Corp., 5.871%, 9/15/14 (h) 375 176,250
Packaging Dynamics Finance Corp., 10%, 5/01/16 (b) 6,215 2,858,900
Smurfit Kappa Funding Plc, 7.75%, 4/01/15 13,625 9,128,750
Smurfit-Stone Container Enterprises, Inc., 8.375%, 7/01/12 1,600 448,000
Smurfit-Stone Container Enterprises, Inc., 8%, 3/15/17 2,600 689,000
Wise Metals Group LLC, 10.25%, 5/15/12 6,325 3,889,875
--------------
17,190,775
----------------------------------------------------------------------------------------------------------------------------------
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Industry Corporate Bonds (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Diversified Consumer NBC Acquisition Corp., 11%, 3/15/13 (i)
Services - 0.6% USD 3,875 $ 1,976,250
----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Archimedes Funding III Ltd., 5.50%, 11/29/11 (b) 5,744 2,010,291
Services - 2.8% FCE Bank Plc, 7.125%, 1/16/12 EUR 7,800 5,450,457
Ford Motor Credit Co. LLC, 7.569%, 1/13/12 (h) USD 2,680 1,179,200
--------------
8,639,948
----------------------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication Qwest Corp., 5.246%, 6/15/13 (h) 1,675 1,172,500
Services - 0.4%
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Electric Utilities - 1.3% NSG Holdings LLC, 7.75%, 12/15/25 (b) 5,380 4,196,400
----------------------------------------------------------------------------------------------------------------------------------
Electronic Equipment & Muzak Holdings, LLC, 13%, 3/15/10 (i) 2,675 668,750
Instruments - 0.2%
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Food & Staples Retailing - 0.2% Rite Aid Corp., 9.375%, 12/15/15 1,910 563,450
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Health Care Equipment & DJO Finance LLC, 10.875%, 11/15/14 8,750 6,387,500
Supplies - 2.0%
----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & Community Health Systems, Inc. Series WI, 8.875%, 7/15/15 4,000 3,210,000
Services - 1.4% Tenet Healthcare Corp., 6.375%, 12/01/11 515 391,400
Tenet Healthcare Corp., 6.50%, 6/01/12 1,150 839,500
--------------
4,440,900
----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure - HRP Myrtle Beach Holdings LLC, 14.50%, 4/01/14 (b)(d) 7,141 35,707
4.3% HRP Myrtle Beach Operations LLC, 7.383%, 4/01/12 (b)(d) 5,000 2,200,000
HRP Myrtle Beach Operations LLC, 12.50%, 4/01/13 (b)(d) 5,000 950,000
Harrah's Operating Co., Inc., 10.75%, 2/01/16 (b) 9,131 2,031,647
Harrah's Operating Co., Inc., 10.75%, 2/01/18 (b)(c) 4,260 380,680
Little Traverse Bay Bands of Odawa Indians, 10.25%, 2/15/14 (b) 2,560 1,676,800
Shingle Springs Tribal Gaming Authority, 9.375%, 6/15/15 (b) 1,370 616,500
Snoqualmie Entertainment Authority, 6.875%, 2/01/14 (b)(h) 1,015 598,850
Station Casinos, Inc., 7.75%, 8/15/16 3,400 1,037,000
Travelport LLC, 6.828%, 9/01/14 (h) 2,160 518,400
Tropicana Entertainment LLC Series WI, 9.625%, 12/15/14 (d)(f) 530 18,550
Tunica-Biloxi Gaming Authority, 9%, 11/15/15 (b) 3,000 2,535,000
Universal City Florida Holding Co. I, 7.943%, 5/01/10 (h) 2,000 920,000
--------------
13,519,134
----------------------------------------------------------------------------------------------------------------------------------
Household Durables - 0.2% Stanley-Martin Communities LLC, 9.75%, 8/15/15 2,250 596,250
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IT Services - 0.5% First Data Corp., 9.875%, 9/24/15 2,500 1,437,500
----------------------------------------------------------------------------------------------------------------------------------
Independent Power Producers & Energy Future Holding Corp., 11.25%, 11/01/17 (b)(c) 3,200 1,704,000
Energy Traders - 1.4%
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Industry Corporate Bonds (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Texas Competitive Electric Holdings Co. LLC, 10.25%,
11/01/15 (b) USD 2,000 $ 1,280,000
Texas Competitive Electric Holdings Co. LLC, 10.50%,
11/01/16 (b)(c) 2,400 1,296,000
--------------
4,280,000
----------------------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates - 1.6% Sequa Corp., 11.75%, 12/01/15 (b) 5,100 2,244,000
Sequa Corp., 13.50%, 12/01/15 (b)(c) 6,823 2,908,196
--------------
5,152,196
----------------------------------------------------------------------------------------------------------------------------------
Insurance - 2.4% Alliant Holdings I, Inc., 11%, 5/01/15 (b) 2,500 1,781,250
American International Group, Inc., 8.25%, 8/15/18 (b) 7,500 5,003,985
USI Holdings Corp., 6.024%, 11/15/14 (b)(h) 1,630 670,337
--------------
7,455,572
----------------------------------------------------------------------------------------------------------------------------------
Machinery - 1.4% ESCO Corp., 5.871%, 12/15/13 (b)(h) 3,070 1,995,500
RBS Global, Inc., 8.875%, 9/01/16 1,685 1,044,700
Titan International, Inc., 8%, 1/15/12 1,530 1,193,400
--------------
4,233,600
----------------------------------------------------------------------------------------------------------------------------------
Marine - 0.2% Navios Maritime Holdings, Inc., 9.50%, 12/15/14 465 279,000
Titan Petrochemicals Group Ltd., 8.50%, 3/18/12 (b) 1,760 440,000
--------------
719,000
----------------------------------------------------------------------------------------------------------------------------------
Media - 4.6% Affinion Group, Inc., 10.125%, 10/15/13 1,080 739,800
Canadian Satellite Radio Holdings, Inc., 12.75%, 2/15/14 5,000 1,650,000
Charter Communications Holdings LLC, 10%, 4/01/09 2,402 2,113,760
Charter Communications Holdings LLC, 11.125%, 1/15/11 1,319 547,385
Charter Communications Holdings LLC, 10%, 5/15/11 1,978 810,980
Local Insight Regatta Holdings, Inc., 11%, 12/01/17 2,665 1,252,550
Network Communications, Inc., 10.75%, 12/01/13 20 6,600
Nielsen Finance LLC, 10%, 8/01/14 2,000 1,440,000
Sinclair Broadcast Group, Inc. Class A, 4.875%, 7/15/18 (i) 3,235 1,730,725
TL Acquisitions, Inc., 10.50%, 1/15/15 (b) 5,230 2,824,200
Virgin Media, Inc., 6.50%, 11/15/16 (a)(b) 3,000 1,248,750
--------------
14,364,750
----------------------------------------------------------------------------------------------------------------------------------
Metals & Mining - 2.4% Aleris International, Inc., 9%, 12/15/14 (c) 1,100 66,000
Aleris International, Inc., 10%, 12/15/16 1,500 157,500
RathGibson, Inc., 11.25%, 2/15/14 4,440 2,708,400
Ryerson, Inc., 10.568%, 11/01/14 (b)(h) 6,720 4,435,200
--------------
7,367,100
----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels - Chaparral Energy, Inc., 8.50%, 12/01/15 1,410 521,700
0.9% Compton Petroleum Finance Corp., 7.625%, 12/01/13 2,220 910,200
SandRidge Energy, Inc., 7.508%, 4/01/14 (h) 2,000 1,335,266
--------------
2,767,166
----------------------------------------------------------------------------------------------------------------------------------
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Industry Corporate Bonds (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 7.1% Abitibi-Consolidated, Inc., 5.496%, 6/15/11 (h) USD 6,500 $ 975,000
Ainsworth Lumber Co. Ltd., 11%, 7/29/15 (b) 9,811 6,573,284
Bowater, Inc., 9%, 8/01/09 640 278,400
Bowater, Inc., 4.996%, 3/15/10 (h) 7,600 2,508,000
Domtar Corp., 7.125%, 8/15/15 3,775 2,567,000
NewPage Corp., 9.443%, 5/01/12 (h) 8,000 4,200,000
NewPage Corp., 10%, 5/01/12 2,720 1,468,800
NewPage Corp., 12%, 5/01/13 3,325 1,147,125
Verso Paper Holdings LLC Series B, 6.943%, 8/01/14 (h) 4,400 2,376,000
--------------
22,093,609
----------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 2.5% Angiotech Pharmaceuticals, Inc., 5.953%, 12/01/13 (h) 5,000 2,850,000
Elan Finance Plc, 6.149%, 11/15/11 (h) 4,825 2,726,125
Elan Finance Plc, 7.75%, 11/15/11 3,525 2,115,000
--------------
7,691,125
----------------------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts RAIT Financial Trust, 6.875%, 4/15/27 (a)(b) 3,500 1,365,000
(REITs) - 0.4%
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Real Estate Management & Realogy Corp., 10.50%, 4/15/14 6,500 1,137,500
Development - 0.6% Realogy Corp., 12.375%, 4/15/15 5,333 853,280
--------------
1,990,780
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Road & Rail - 0.0% Swift Transportation Co., Inc., 9.899%, 5/15/15 (b)(h) 1,350 155,250
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Semiconductors & Semiconductor Spansion, Inc., 5.328%, 6/01/13 (b)(h) 3,370 707,700
Equipment - 0.2%
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Software - 0.2% BMS Holdings, Inc., 10.595%, 2/15/12 (b)(c)(h) 1,477 561,141
----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 2.4% Buffets, Inc., 12.50%, 11/01/14 (d)(f) 1,440 3,600
General Nutrition Centers, Inc., 7.584%, 3/15/14 (c)(h) 5,560 3,169,200
General Nutrition Centers, Inc., 10.75%, 3/15/15 4,480 2,576,000
Michaels Stores, Inc., 10%, 11/01/14 2,240 705,600
Michaels Stores, Inc., 11.375%, 11/01/16 2,785 612,700
United Auto Group, Inc., 7.75%, 12/15/16 1,380 503,700
--------------
7,570,800
----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Digicel Group Ltd., 8.875%, 1/15/15 (b) 3,560 1,833,400
Services - 3.0% Digicel Group Ltd., 9.125%, 1/15/15 (b)(c) 7,248 3,660,240
FiberTower Corp., 9%, 11/15/12 (a)(b) 2,150 647,687
FiberTower Corp., 9%, 11/15/12 (a) 350 105,437
iPCS, Inc., 5.318%, 5/01/13 (h) 1,250 875,000
Nordic Telephone Co. Holdings ApS, 8.875%, 5/01/16 (b) 2,600 1,885,000
Orascom Telecom Finance SCA, 7.875%, 2/08/14 (b) 755 415,250
--------------
9,422,014
----------------------------------------------------------------------------------------------------------------------------------
Total Corporate Bonds - 69.5% 217,432,867
----------------------------------------------------------------------------------------------------------------------------------
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Aerospace & Defense - 0.2% IAP Worldwide Services, Inc. Term Loan, 8.063%, 12/31/12 USD 1,050 $ 645,646
----------------------------------------------------------------------------------------------------------------------------------
Airlines - 0.8% Delta Air Lines, Inc. Credit-Linked Deposit Loan,
1.751% - 4.581%, 4/30/12 1,980 1,309,275
US Airways Group, Inc. Term Loan, 3.936%, 3/23/14 2,227 1,025,752
--------------
2,335,027
----------------------------------------------------------------------------------------------------------------------------------
Auto Components - 3.3% Allison Transmission, Inc. Term Loan, 4.38% - 5.57%, 8/07/14 7,574 4,511,804
Dana Holding Corp. Term Advance, 6.75% - 8.02%, 1/31/15 2,972 1,763,530
Goodyear Tire & Rubber Co., Second Lien Term Loan, 2.90%,
4/30/14 2,000 1,250,000
Intermet Corp. Letter of Credit, 1.648% - 6.88%, 11/08/10 (d) 1,688 1,350,320
Intermet Corp. Line of Credit, 7.814%, 11/09/10 78 62,784
Intermet Corp. Term Loan B, 7.817%, 11/08/10 (d) 1,169 935,278
Intermet Corp. Term Loan B, 7.817%, 5/15/11 122 97,874
Metaldyne Co. LLC DF Loan, 1.751% - 8.313%, 1/11/12 87 29,423
Metaldyne Co. LLC Initial Tranche Term Loan B, 7.875%, 1/11/14 588 200,077
--------------
10,201,090
----------------------------------------------------------------------------------------------------------------------------------
Automobiles - 0.2% Ford Motor Co. Term Loan, 4.43%, 12/15/13 996 398,353
General Motors Corp. Term Loan B, 5.795%, 11/29/13 796 306,441
--------------
704,794
----------------------------------------------------------------------------------------------------------------------------------
Beverages - 0.1% Culligan International Second Lien Term Loan, 9.184% -
9.711%, 4/24/13 EUR 1,500 343,036
----------------------------------------------------------------------------------------------------------------------------------
Biotechnology - 0.4% Talecris Biotherapeutics Holdings Corp. First Lien Term
Loan, 4.91% - 5.64%, 12/06/13 USD 1,485 1,302,988
----------------------------------------------------------------------------------------------------------------------------------
Building Products - 1.3% Building Material Corp. of America Term Loan Advance,
6.50% - 6.625%, 2/22/14 2,985 1,839,518
Masonite International Term Loan, 5%, 4/06/13 1,943 1,125,007
Masonite International U.S. Term Loan, 5%, 4/06/13 1,962 1,135,954
--------------
4,100,479
----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 4.4% Huish Detergents, Inc. Tranche Term Loan B, 5.77%, 4/26/14 2,970 2,311,620
PQ Corp. (Niagara Acquisition, Inc.) First Lien Term Loan,
6.72% - 7.02%, 5/29/16 1,995 1,234,406
PQ Corp. (Niagara Acquisition, Inc.) Second Lien Term Loan,
9.97%, 5/29/15 12,500 5,937,500
Rockwood Specialties Group, Inc. Tranche E Term Loan,
3.546%, 12/13/12 614 491,424
Solutia, Inc. Term Loan, 8.50%, 2/28/14 3,242 2,374,644
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Wellman, Inc. Second Lien Term Loan, 11.661%, 2/10/10 (d)(f) USD 10,000 $ 1,500,000
--------------
13,849,594
----------------------------------------------------------------------------------------------------------------------------------
Commercial Services & Supplies - ARAMARK Corp. Line of Credit Facility Letter of Credit,
2.5% 2.469%, 1/26/14 235 186,214
ARAMARK Corp. U.S. Term Loan, 5.637%, 1/26/14 3,701 2,931,139
John Maneely Co. Term Loan, 5.856% - 8%, 12/28/13 1,337 839,379
NES Rentals Holdings, Inc. Term Loan C, 9.125%, 7/12/13 3,020 1,328,798
West Corp. Term Loan B-2, 3.774% - 4.733%, 10/31/13 3,940 2,445,297
--------------
7,730,827
----------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 0.2% SafeNet, Inc. First Lien Term Loan, 7.75%, 5/11/15 988 513,500
----------------------------------------------------------------------------------------------------------------------------------
Computers & Peripherals - 0.4% Intergraph Corp. First Lien Initial Term Loan, 4.196%, 5/15/14 419 321,345
Intergraph Corp. Second Lien Term Loan, 8.196%, 11/17/14 1,000 765,000
--------------
1,086,345
----------------------------------------------------------------------------------------------------------------------------------
Construction & Engineering - 0.1% Brand Energy & Infrastructure Services, Inc.
(FR Brand Acquisition Corp.) Letter of Credit,
4.625% - 6.063%, 1/31/14 493 332,438
----------------------------------------------------------------------------------------------------------------------------------
Construction Materials - 0.5% Headwaters, Inc. Term Loan B-1 (First Lien), 8.27%, 4/30/11 1,869 1,682,143
----------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 1.1% Berry Plastics Group, Inc. Term Loan B, 11.334%, 6/15/14 9,685 2,905,656
Consolidated Container Co. LLC Second Lien Term Loan,
7.123% - 8.106%, 7/14/14 350 61,250
Graham Packaging Co., L.P. New Term Loan,
4.438% - 6.313%, 9/30/11 489 370,962
--------------
3,337,868
----------------------------------------------------------------------------------------------------------------------------------
Distributors - 0.3% Keystone Automotive Operations, Inc. Term Loan,
4.909% - 5.633%, 1/12/12 1,668 834,162
----------------------------------------------------------------------------------------------------------------------------------
Diversified Consumer Services - Coinmach Corp. Term Loan,
1.3% 4.46% - 5.22%, 11/15/14 5,224 3,917,763
----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Services - J.G. Wentworth LLC First Lien Term Loan, 6.012%,
0.4% 4/03/14 4,000 1,300,000
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Diversified Telecommunication Hawaiian Telcom Term Loan C, 6.262%, 6/01/14 (e) 4,500 1,792,499
Services - 2.1% Winstar Communications Debtor In Possession, 6.366%,
12/31/06 (d)(f)(g) 3,162 4,782,330
--------------
6,574,829
----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.3% Generac Acquisition Corp. First Lien Term Loan, 6.65%, 11/10/13 1,749 1,042,426
----------------------------------------------------------------------------------------------------------------------------------
Energy Equipment & Dresser, Inc. Second Lien Term Loan, 7.986%, 5/15/15 2,500 1,431,250
Services - 1.6% Dresser, Inc. Term Loan B, 3.686% - 4.486%, 5/15/14 2,912 1,983,617
MEG Energy Corp. Delayed Draw Term Loan, 5.77%, 3/23/13 1,242 832,266
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
MEG Energy Corp. Initial Term Loan, 5.77%, 3/23/13 USD 1,219 $ 816,563
--------------
5,063,696
----------------------------------------------------------------------------------------------------------------------------------
Food & Staples Retailing - 0.5% Bolthouse Farms, Inc. Second Lien Term Loan, 9.262%, 12/01/13 1,000 645,000
DS Waters of America, Term Loan, 5.409%, 3/31/12 1,000 600,000
McJunkin Corp. Term Loan, 7.012%, 1/30/14 491 391,035
--------------
1,636,035
----------------------------------------------------------------------------------------------------------------------------------
Food Products - 2.1% Dole Food Co., Inc. Credit-Linked Deposit, 4.689%, 4/12/13 608 427,482
Dole Food Co., Inc. Tranche Term Loan B, 3.50% - 5%, 4/12/13 1,078 757,676
Dole Food Co., Inc. Tranche Term Loan C, 3.50% - 6.813%,
4/12/13 4,016 2,822,880
Jetro Holdings, Inc. Term Loan, 4.02%, 5/11/14 1,938 1,530,625
Sturm Foods, Inc. First Lien Initial Term Loan,
5.875% - 6%, 1/22/14 (c) 985 568,838
Sturm Foods, Inc. Second Lien Initial Term Loan, 9.50%, 6/30/14 1,250 581,250
--------------
6,688,751
----------------------------------------------------------------------------------------------------------------------------------
Health Care Equipment & Biomet, Inc. Dollar Term Loan, 6.762%, 3/25/15 1,985 1,610,922
Supplies - 1.3% DJO Finance LLC Term Loan, 4.436% - 6.762%, 11/20/13 3,474 2,605,313
--------------
4,216,235
----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & CCS Medical, Inc. First Lien Term Loan, 7.02%, 8/01/12 475 238,832
Services - 0.8% Rotech Healthcare, Inc. Term Loan B, 9.135%, 9/26/11 3,578 2,325,767
--------------
2,564,599
----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Golden Nugget, Inc. Term Loan Second Lien, 4.69%, 11/30/14 1,500 225,000
Leisure - 2.6% Green Valley Ranch Gaming, LLC Term Loan, 5.018%, 2/26/14 750 52,500
HRP Myrtle Beach Term Loan, 18.50% - 19.359%, 12/31/08 157 156,600
Harrah's Operating Co., Inc. Term Loan B-1,
6.535% - 6.762%, 1/28/15 553 323,170
Harrah's Operating Co., Inc. Term Loan B-2, 6.535% -
6.762%, 1/28/15 697 406,582
Harrah's Operating Co., Inc. Term Loan B-3, 4.436% -
6.762%, 1/28/15 492 286,538
Las Vegas Sands LLC Delay Draw Term Loan, 5.52%, 5/23/14 798 385,257
Las Vegas Sands LLC Tranche Term Loan B,
5.52%, 5/04/14 3,160 1,525,578
OSI Restaurant Partners, Inc. Revolving Credit, 2.639%, 5/15/14 75 32,782
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
OSI Restaurant Partners, Inc. Term Loan B, 3.75%, 5/15/14 USD 883 $ 384,804
QCE LLC Second Lien Term Loan, 9.512%, 11/05/13 6,000 2,850,000
VML US Finance LLC Delay Draw Term Loan, 6.02%, 5/25/12 1,279 716,024
VML US Finance LLC Term Loan B, 6.02%, 5/25/13 1,221 683,987
--------------
8,028,822
----------------------------------------------------------------------------------------------------------------------------------
Household Durables - 1.0% American Residential Services LLC Second Lien Term Loan,
10%, 4/17/15 3,015 2,974,553
----------------------------------------------------------------------------------------------------------------------------------
Household Products - 0.8% Spectrum Brands, Inc. Letter of Credit, 2.70%, 4/15/13 282 167,459
Spectrum Brands, Inc. Term Loan B-1, 5.768% - 8.32%, 4/15/13 4,104 2,437,912
--------------
2,605,371
----------------------------------------------------------------------------------------------------------------------------------
IT Services - 2.1% Activant Solutions Inc. Term Loan B, 6.063% - 6.25%, 5/02/13 3,560 2,171,562
Audio Visual Services Group, Inc. Tranche Lien
Term Loan B, 9.27%, 8/28/13 1,000 325,000
Ceridian Corp. U.S. Term Loan, 4.423%, 11/09/14 3,500 2,520,000
First Data Corp. Term Loan B-2, 4.149% - 6.512%, 9/24/14 977 661,005
RedPrairie Corp. Term Loan, 5.188% - 6%, 7/17/12 883 662,205
RedPrairie Corp. Term Loan, 5.875%, 7/17/12 295 221,063
--------------
6,560,835
----------------------------------------------------------------------------------------------------------------------------------
Independent Power Producers & Texas Competitive Electric Holdings Co. LLC
Energy Traders - 0.7% Term Loan B-2, 5.268% - 7.262%, 10/10/14 2,970 2,007,686
Texas Competitive Electric Holdings Co. LLC Term Loan B-3,
5.268% - 7.262%, 10/10/14 200 134,950
--------------
2,142,636
----------------------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates - 0.3% Sequa Corp. Term Loan B, 5.02% - 7.02%, 12/03/14 1,395 951,959
----------------------------------------------------------------------------------------------------------------------------------
Insurance - 0.4% Alliant Holdings I, Term Loan, 6.762%, 10/23/14 1,980 1,257,300
----------------------------------------------------------------------------------------------------------------------------------
Internet & Catalog Retail - 0.4% FTD Group, Inc. Tranche Term Loan B, 7.50% - 8.035%, 8/26/14 1,500 1,297,500
----------------------------------------------------------------------------------------------------------------------------------
Machinery - 2.1% Harrington Holdings, Inc. First Lien Term Loan, 3.686%,
1/11/14 985 748,600
Navistar International Corp. Revolving Credit-Linked Deposit,
4.686% - 7.126%, 1/19/12 1,867 1,008,000
Navistar International Corp. Term Advance, 4.686%, 1/19/12 5,133 2,772,000
OshKosh Truck Corp. Term Loan B, 2.93% - 4.62%, 12/06/13 1,780 1,117,585
Rexnord Corp. Payment In Kind Term Loan, 9.81%, 3/02/13 1,261 983,565
--------------
6,629,750
----------------------------------------------------------------------------------------------------------------------------------
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Media - 12.9% Affinion Group Holdings, Inc. Term Loan, 9.868%, 3/01/12 USD 4,000 $ 1,600,000
Cequel Communications, LLC (Cebridge) Second Lien Term Loan,
8.235% - 9.193%, 5/05/14 10,251 5,638,149
Cequel Communications, LLC (Cebridge) Term Loan B, 4.235% -
6.334%, 11/05/13 1,574 1,048,356
ClientLogic Holding Corp. Term Loan B,
4.678% - 6.789%, 1/30/14 911 500,864
Easton-Bell Sports, Inc. Term Loan B, 9.27%, 5/01/12 4,448 1,556,808
Education Media and Publishing Group Ltd. First Lien Term
Loan B, 7.516%, 11/14/14 5,053 3,183,409
Education Media and Publishing Group Ltd. Second Lien Term
Loan, 13.016%, 11/14/14 18,834 11,300,634
Ellis Communications Term Loan, 10%, 12/30/11 6,330 3,797,986
GateHouse Media Operating, Inc. Delay Draw Term Loan,
4.20% - 5%, 9/15/14 347 79,833
GateHouse Media Operating, Inc. Initial
Term Loan B, 4.20%, 8/28/14 670 154,000
Getty Images, Inc. Initial Term Loan, 8.053%,
6/30/15 1,000 853,750
Insight Midwest Holdings, LLC Delay Draw Term Loan,
4.85%, 4/06/14 1,025 796,572
Multicultural Radio Broadcasting Inc. Term Loan,
4.928%, 12/15/12 423 295,750
NEP II Inc. Term Loan B, 6.012%, 2/16/14 985 640,244
Newsday, LLC Term Loan, 9.75%, 7/02/13 3,250 2,697,500
Penton Media Inc. Second Lien Term Loan, 8.42%, 2/01/14 1,000 400,000
ProSiebenSat.1 Media AG Term Loan B, 7.526%, 6/30/15 EUR 337 39,225
ProSiebenSat.1 Media AG Term Loan B, 7.776%, 6/30/16 674 78,449
Thomson Learning, Inc. Term Loan B-2, 7.50%, 7/05/14 USD 6,733 5,655,825
--------------
40,317,354
----------------------------------------------------------------------------------------------------------------------------------
Metals & Mining - 0.6% Euramax International Plc First Lien Term Loan, 7.50%,
6/29/12 2,436 1,144,828
Euramax International Plc Second Lien Term Loan, 11.75%,
6/29/13 2,500 875,000
--------------
2,019,828
----------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 0.7% Coleto Creek Letter of Credit, 6.512%, 7/31/13 452 314,787
Coleto Creek Term Loan B, 3.662%, 7/31/13 32 22,187
Energy Transfer Equity, LP Term Loan B, 4.138%, 11/01/12 750 609,750
NE Energy Second Lien Term Loan, 7.711%, 10/31/14 750 555,000
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Industry Floating Rate Loan Interests (000) Value
----------------------------------------------------------------------------------------------------------------------------------
USPF Holdings Term Loan, 3.159%, 4/15/14 USD 925 $ 684,825
--------------
2,186,549
----------------------------------------------------------------------------------------------------------------------------------
Multiline Retail - 0.5% Neiman Marcus Group, Inc. Term Loan, 4.565%, 4/06/13 2,500 1,562,500
----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Big West Oil & Gas Delay Advanced Term Loan, 5.25%, 5/15/14 962 529,375
Fuels - 3.9% Big West Oil & Gas Initial Finance Term Loan, 5.25%, 5/15/14 766 421,094
Petroleum Geo-Services ASA Term Loan, 5.51%, 6/06/15 1,907 1,401,400
Scorpion Drilling Ltd. Second Lien Term Loan, 8.936%, 5/05/15 3,500 3,325,000
Turbo Beta Plc Bridge Loan, 14.50%, 3/15/18 5,958 5,838,759
Western Refining Inc. LP Term Loan, 9.25%, 5/30/14 1,375 777,127
--------------
12,292,755
----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 1.3% Boise Paper Holdings LLC (Aldabra Sub LLC)
Second Lien Term Loan, 7.50%, 2/05/15 1,492 1,208,925
Verso Paper Finance Holdings LLC Term Loan, 10.012%, 2/01/13 3,671 2,796,354
--------------
4,005,279
----------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 0.1% Pharmaceutical Technologies & Services (PTS)
Term Loan, 6.012%, 4/10/14 513 310,703
----------------------------------------------------------------------------------------------------------------------------------
Real Estate Management & Enclave First Lien Term Loan, 6.14%, 3/01/12 4,000 2,619,601
Development - 1.7% Georgian Towers Term Loan, 6.14%, 3/01/12 4,000 2,717,948
--------------
5,337,549
----------------------------------------------------------------------------------------------------------------------------------
Road & Rail - 0.8% Rail America, Inc. Canadian Term Loan, 7.883%, 6/30/09 242 198,419
Rail America, Inc. Term Loan, 7.883%, 6/30/09 744 610,429
Rail America, Inc. U.S. Term Loan, 7.883%, 6/30/09 1,878 1,540,288
--------------
2,349,136
----------------------------------------------------------------------------------------------------------------------------------
Software - 1.1% Aspect Software Second Lien Term Loan, 9.188%, 7/05/12 7,000 3,500,000
----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 0.6% ADESA, Inc. (KAR Holdings Inc.) Initial Term Loan B, 6.02%,
10/20/13 1,914 1,135,774
Claire's Stores Inc. Term Loan B, 4.186% - 6.512%, 5/29/14 1,476 606,668
--------------
1,742,442
----------------------------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods - Renfro Corp. Tranche Term Loan B, 5.42% - 7.02%,
0.1% 9/30/13 692 276,978
----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication IPC Systems Inc. Tranche Term Loan B-1, 6.012%, 5/31/14 1,853 917,373
Services - 0.3%
----------------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Loan Interests - 61.2% 191,271,443
----------------------------------------------------------------------------------------------------------------------------------
Industry Common Stocks Shares
----------------------------------------------------------------------------------------------------------------------------------
Building Products - 0.0% Neenah Enterprises Inc. (f) 144,858 50,700
----------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 0.2% E*Trade Financial Corp. (f) 484,043 653,458
----------------------------------------------------------------------------------------------------------------------------------
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Industry Common Stocks Shares Value
----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 0.0% GEO Specialty Chemicals, Inc. (e)(i) 339,340 $ 130,273
GenTek Inc. (f) 403 7,423
--------------
137,696
----------------------------------------------------------------------------------------------------------------------------------
Commercial Services & New Outsourcing Solutions, Inc. (f) 90,876 181,752
Supplies - 0.1%
----------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 0.4% Loral Space & Communications Ltd. (f) 150,354 1,270,491
----------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 0.3% Smurfit Kappa Plc 36,342 85,721
Viskase Cos., Inc. (f) 1,428,423 714,211
--------------
799,932
----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Preferred Term Securities VI, Ltd. (b)(f) 35,000 980,000
Services - 0.3%
----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.1% Medis Technologies Ltd. (f) 286,757 192,127
SunPower Corp. Class B (f) 4,893 127,307
--------------
319,434
----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure - HRP PIK Corp. Class B (b)(e)(f) 5,000 50
0.0% Lodgian, Inc. (f) 27,787 61,131
--------------
61,181
----------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable EXCO Resources, Inc. (f) 378,859 2,905,849
Fuels - 0.9%
----------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 0.9% Ainsworth Lumber Co. Ltd. 1,190,019 1,256,995
Ainsworth Lumber Co. Ltd. (b) 1,335,501 1,409,528
Western Forest Products, Inc. (b)(f) 211,149 83,424
--------------
2,749,947
----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 0.6% Movie Gallery, Inc. (f) 503,737 2,014,948
----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication American Tower Corp. Class A (f) 18,671 508,598
Services - 0.2%
----------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks - 4.0% 12,633,986
----------------------------------------------------------------------------------------------------------------------------------
Preferred Securities
----------------------------------------------------------------------------------------------------------------------------------
Par
Capital Trusts (000)
----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Citigroup, Inc., 8.40% (g)(j) USD 4,200 2,479,890
Services - 0.8%
----------------------------------------------------------------------------------------------------------------------------------
Total Preferred Securities - 0.8% 2,479,890
----------------------------------------------------------------------------------------------------------------------------------
Warrants (k) Shares
----------------------------------------------------------------------------------------------------------------------------------
Building Products - 0.0% Neenah Enterprises Inc. (expires 9/30/13) 130,547 39,164
----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 0.0% GenTek Inc. Tranche C (expires 11/10/10) 231 693
----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & HealthSouth Corp. (expires 1/16/14) 126,761 1
Services - 0.0%
----------------------------------------------------------------------------------------------------------------------------------
Media - 0.0% Sirius Satellite Radio, Inc. (expires 5/15/09) 15,000 75
----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 0.0% Movie Gallery, Inc. (expires 5/15/15) (e) 62,323 31,162
----------------------------------------------------------------------------------------------------------------------------------
Total Warrants - 0.0% 71,095
----------------------------------------------------------------------------------------------------------------------------------
Beneficial
Interest
Other Interests (l) (000)
----------------------------------------------------------------------------------------------------------------------------------
Airlines - 0.1% Delta Air Lines, Inc. Default 8.33% Escrow USD 5,505 82,575
Delta Air Lines, Inc. Default 10% Escrow 4,200 63,000
--------------
145,575
----------------------------------------------------------------------------------------------------------------------------------
Media - 0.0% Adelphia Escrow (e) 7,500 750
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Beneficial
Interest
Industry Other Interests (l) (000) Value
----------------------------------------------------------------------------------------------------------------------------------
Adelphia Preferred Escrow (e) USD 5 1
Adelphia Recovery Trust (e) 9,406 $ 37,624
Adelphia Recovery Trust Series ACC-6B INT (e) 500 50
--------------
38,425
----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 0.0% Movie Gallery, Inc. Default Escrow (e) 21,700 217
----------------------------------------------------------------------------------------------------------------------------------
Total Other Interests - 0.1% 184,217
----------------------------------------------------------------------------------------------------------------------------------
Total Long-Term Investments
(Cost - $783,104,312) - 135.6% 424,073,498
----------------------------------------------------------------------------------------------------------------------------------
Short-Term Securities
----------------------------------------------------------------------------------------------------------------------------------
BlackRock Liquidity Series, LLC
Cash Sweep Series, 1.64% (m)(n) 2,765 2,764,966
----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost - $2,764,966) - 0.9% 2,764,966
----------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $785,869,278*) - 136.5% 426,838,464
Liabilities in Excess of Other Assets - (36.5)% (114,206,170)
--------------
Net Assets - 100.0% $ 312,632,294
==============
* The cost and unrealized appreciation (depreciation) of investments as of
November 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 786,304,407
=============
Gross unrealized appreciation $ 5,014,545
Gross unrealized depreciation (364,480,488)
-------------
Net unrealized depreciation $(359,465,943)
=============
(a) Convertible security.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration to qualified institutional investors.
(c) Represents a payment-in-kind security which may pay interest/dividends in
additional par/shares.
(d) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) Security is fair valued.
(f) Non-income producing security.
(g) As a result of bankruptcy proceedings, the company did not repay the
principal amount of the security upon maturity.
(h) Variable rate security. Rate shown is as of report date.
(i) Represents a step bond. Rate shown is as of report date.
(j) Security is perpetual in nature and has no stated maturity date.
(k) Warrants entitle the Fund to purchase a predetermined number of shares of
common stock and are non-income producing. The purchase price and number
of shares are subject to adjustment under certain conditions until the
expiration date.
(l) "Other interests" represent beneficial interest in liquidation trusts and
other reorganization entities and are non-income producing.
(m) Represents the current yield as of report date.
(n) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Affiliate Net Activity Income
--------------------------------------------------------------------------
BlackRock Liquidity Series, LLC
Cash Sweep Series $2,764,966 $98,023
--------------------------------------------------------------------------
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments November 30, 2008 (Unaudited)
o For Fund compliance purposes, the Fund's industry classifications refer to
any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report, which may combine industry sub-classifications for reporting
ease.
o Foreign currency exchange contracts as of November 30, 2008 were as
follows:
--------------------------------------------------------------------------
Unrealized
Currency Currency Settlement Appreciation
Purchased Sold Date (Depreciation)
--------------------------------------------------------------------------
USD 6,223,987 EUR 4,929,500 12/10/08 $ (37,307)
USD 633,843 EUR 489,000 12/10/08 12,731
USD 2,026,599 CAD 2,400,000 1/21/09 90,388
--------------------------------------------------------------------------
Total $ 65,812
===========
o Currency Abbreviations:
CAD Canadian Dollar
EUR Euro
GBP British Pound
USD U.S. Dollar
o Credit default swaps on traded indexes - buy protection outstanding as of
November 30, 2008 were as follows:
--------------------------------------------------------------------------
Pay Notional
Fixed Amount Unrealized
Issuer Rate Counterparty Expiration (000)(1) Appreciation
--------------------------------------------------------------------------
Dow Jones
CDX North Credit
America High Suisse
Yield Index 5.00% International June 2013 USD 7,440 $ 1,207,528
--------------------------------------------------------------------------
(1) The maximum potential amount the Fund may receive should a negative credit
event take place as defined under the terms of the agreement.
o Credit default swaps on traded indexes - sold protection outstanding as of
November 30, 2008 were as follows:
--------------------------------------------------------------------------
Pay Notional
Fixed Amount Unrealized
Issuer Rate Counterparty Expiration (000)(1) Depreciation
--------------------------------------------------------------------------
BAA Ferovial
Junior Term Deutsche
Loan 2.00% Bank AG June 2012 GBP 900 $ (307,958)
--------------------------------------------------------------------------
(1) The maximum potential amount the Fund may receive should a negative credit
event take place as defined under the terms of the agreement.
o Effective March 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are
used in determining the fair value of investments, which are follows:
o Level 1 - price quotations in active markets/exchanges for
identical securities
BlackRock Debt Strategies Fund, Inc.
Schedule of Investments November 30, 2008 (Unaudited)
o Level 2 - other observable inputs (including, but not limited
to: quoted prices for similar assets or liabilities in markets
that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss
severities, credit risks, and default rates) or other
market-corroborated inputs)
o Level 3 - unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs
are not available (including the Fund's own assumption used in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For
information about the Fund's policy regarding valuation of investments and other
significant accounting policies, please refer to the Fund's most recent
financial statements as contained in its semi-annual report.
The following table summarizes the inputs used as November 30, 2008 in
determining the fair valuation of the Fund's investments:
-------------------------------------------------------------------------------
Other
Valuation Investments in Financial
Inputs Securities Instruments*
-------------------------------------------------------------------------------
Level 1 $ 9,847,357 --
Level 2 324,562,087 $ 1,273,340
Level 3 92,429,020 (307,958)
-------------------------------------------------------------------------------
Total $ 426,838,464 $ 965,382
===========
* Other financial instruments are foreign currency exchange contracts and
swaps.
The following is a reconciliation of investments for unobservable inputs (Level
3) used in determining fair value:
--------------------------------------------------------------------------------
Investments in Other Financial
Securities Instruments**
--------------------------------------------------------------------------------
Balance, as of March 1, 2008 $ 192,289,712 $ (157,226)
Accrued discounts/premiums 363,895 --
Realized gain (loss) (13,727,935) --
Change in unrealized depreciation (30,155,287) (150,732)
Net purchases (sales) (43,424,963) --
Net transfers in/out of Level 3 (12,916,402) --
--------------------------------------------------------------------------------
Balance, as of November 30, 2008 $ 92,429,020 $ (307,958)
====================================
** Other financial instruments are swaps.
Item 2 - Controls and Procedures
2(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the registrant's last fiscal quarter that have
materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
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.
BlackRock Debt Strategies Fund, Inc.
By: /s/ Donald C. Burke
--------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock Debt Strategies Fund, Inc.
Date: January 20, 2009
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/ Donald C. Burke
--------------------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock Debt Strategies Fund, Inc.
Date: January 20, 2009
By: /s/ Neal J. Andrews
--------------------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Debt Strategies Fund, Inc.
Date: January 20, 2009