N-Q 1 a05-11897_3nq.htm N-Q

 

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

811-02932

 

Morgan Stanley High Yield Securities Inc.

(Exact name of registrant as specified in charter)

1221 Avenue of the Americas, New York, New York

 

10020

(Address of principal executive offices)

 

(Zip code)

 

 

 

Ronald E. Robison
1221 Avenue of the Americas, New York, New York 10020

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

212-762-4000

 

 

Date of fiscal year end:

August 31, 2005

 

 

Date of reporting period:

May 31, 2005

 

 


 

Item 1.  Schedule of Investments.

 

The Fund’s schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows:

 

Morgan Stanley High Yield Securities Inc.

Portfolio of Investments May 31, 2005 (unaudited)

 

PRINCIPAL
AMOUNT IN
THOUSANDS

 

 

 

COUPON
RATE

 

MATURITY
DATE

 

VALUE

 

 

 

CORPORATE BONDS (94.6%)

 

 

 

 

 

 

 

 

 

Advertising/Marketing Services (0.5%)

 

 

 

 

 

 

 

$

790

 

Interpublic Group of Companies, Inc. (The)

 

5.40

%

11/15/09

 

758,369

 

1,490

 

Interpublic Group of Companies, Inc. (The)

 

6.25

 

11/15/14

 

1,370,430

 

 

 

 

 

 

 

 

 

2,128,799

 

 

 

Aerospace & Defense (0.9%)

 

 

 

 

 

 

 

4,070

 

K&F Acquisition Inc. - 144A*

 

7.75

 

11/15/14

 

4,090,350

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative Power Generation (0.8%)

 

 

 

 

 

 

 

3,615

 

Ormat Funding Corp.

 

8.25

 

12/30/20

 

3,651,396

 

 

 

 

 

 

 

 

 

 

 

 

 

Aluminum (0.9%)

 

 

 

 

 

 

 

4,175

 

Novelis, Inc. - 144A*

 

7.25

 

02/15/15

 

4,112,375

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel/Footwear (1.6%)

 

 

 

 

 

 

 

1,970

 

Brown Shoe Co., Inc. - 144A*

 

8.75

 

05/01/12

 

2,019,250

 

3,905

 

Levi Strauss & Co. - 144A*

 

7.73

 

04/01/12

 

3,641,412

 

1,650

 

Oxford Industries, Inc.

 

8.875

 

06/01/11

 

1,716,000

 

 

 

 

 

 

 

 

 

7,376,662

 

 

 

Auto Parts: O.E.M. (0.8%)

 

 

 

 

 

 

 

3,540

 

TRW Automotive, Inc.

 

9.375

 

02/15/13

 

3,840,900

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadcasting (1.0%)

 

 

 

 

 

 

 

4,391

 

Canwest Media Inc. - 144A* (Canada)

 

8.00

 

09/15/12

 

4,588,080

 

 

 

 

 

 

 

 

 

 

 

 

 

Building Products (2.7%)

 

 

 

 

 

 

 

865

 

Interface Inc.

 

7.30

 

04/01/08

 

852,025

 

4,460

 

Interface Inc.

 

9.50

 

02/01/14

 

4,482,300

 

4,050

 

Nortek Inc.

 

8.50

 

09/01/14

 

3,645,000

 

3,150

 

NTK Holdings Inc. - 144A*

 

10.75

††

03/01/14

 

1,433,250

 

2,490

 

PLY Gem Industries, Inc.

 

9.00

 

02/15/12

 

1,979,550

 

 

 

 

 

 

 

 

 

12,392,125

 

 

 

Cable/Satellite TV (4.7%)

 

 

 

 

 

 

 

1,780

 

Charter Communications Holdings LLC

 

10.75

 

10/01/09

 

1,388,400

 

1,340

 

Charter Communications Holdings/Charter Capital

 

13.50

††

01/15/11

 

1,025,100

 

4,465

 

Charter Communications Holdings/Charter Capital

 

11.75

††

05/15/11

 

2,913,412

 

2,065

 

Intelsat Bermuda Ltd. - 144A*

 

7.805

**

01/15/12

 

2,106,300

 

285

 

Intelsat Bermuda Ltd. - 144A*

 

8.25

 

01/15/13

 

291,413

 

2,760

 

Intelsat Bermuda Ltd. - 144A*

 

8.625

 

01/15/15

 

2,846,250

 

4,515

 

Kabel Deutschland - 144A* (Germany)

 

10.625

 

07/01/14

 

4,842,338

 

1,780

 

Renaissance Media Group LLC

 

10.00

 

04/15/08

 

1,791,125

 

5,520

 

Telenet Group Holding NV - 144A* (Belgium)

 

11.50

††

06/15/14

 

4,140,000

 

 

 

 

 

 

 

 

 

21,344,338

 

 

 

Casino/Gaming (2.5%)

 

 

 

 

 

 

 

27,175

 

Aladdin Gaming Holdings/Capital Corp. LLC (Series B) (b) (f)

 

13.50

 

03/01/10

 

0

 

3,755

 

Isle of Capri Casinos

 

7.00

 

03/01/14

 

3,708,063

 

5,255

 

MGM Mirage Inc.

 

6.00

 

10/01/09

 

5,274,706

 

27,634

 

Resort At Summerlin LP/Ras Co. (Series B) (a) (b) (f)

 

13.00

 

12/15/07

 

0

 

2,595

 

Station Casinos, Inc.

 

6.00

 

04/01/12

 

2,614,462

 

 

 

 

 

 

 

 

 

11,597,231

 

 

 

Chemicals: Major Diversified (1.4%)

 

 

 

 

 

 

 

4,230

 

Equistar Chemical Funding

 

10.125

 

09/01/08

 

4,610,700

 

1,575

 

Huntsman Advanced Materials Corp. - 144A*

 

11.00

 

07/15/10

 

1,803,375

 

 

 

 

 

 

 

 

 

6,414,075

 

 

1


 

 

 

Chemicals: Specialty (5.9%)

 

 

 

 

 

 

 

2,400

 

Innophos Inc. - 144A*

 

8.875

 

08/15/14

 

2,352,000

 

1,173

 

Innophos Inc. - 144A*

 

11.268

†

02/15/15

 

1,055,467

 

945

 

ISP Chemco

 

10.25

 

07/01/11

 

1,022,963

 

4,065

 

ISP Holdings Inc. (Series B)

 

10.625

 

12/15/09

 

4,359,712

 

1,135

 

Koppers Industry Inc.

 

9.875

 

10/15/13

 

1,214,450

 

775

 

Millennium America, Inc.

 

7.00

 

11/15/06

 

794,375

 

2,425

 

Millennium America, Inc.

 

9.25

 

06/15/08

 

2,625,062

 

1,140

 

Nalco Co.

 

7.75

 

11/15/11

 

1,197,000

 

4,235

 

Nalco Co.

 

8.875

 

11/15/13

 

4,446,750

 

3,855

 

Rhodia SA (France)

 

8.875

 

06/01/11

 

3,720,075

 

3,815

 

Rockwood Specialties, Inc.

 

10.625

 

05/15/11

 

4,101,125

 

 

 

 

 

 

 

 

 

26,888,979

 

 

 

Coal (0.2%)

 

 

 

 

 

 

 

930

 

Foundation PA Coal Co.

 

7.25

 

08/01/14

 

962,550

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction Materials (0.6%)

 

 

 

 

 

 

 

2,850

 

RMCC Acquisition Co. - 144A*

 

9.50

 

11/01/12

 

2,693,250

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Sundries (0.4%)

 

 

 

 

 

 

 

1,985

 

Amscan Holdings, Inc.

 

8.75

 

05/01/14

 

1,855,975

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer/Business Services (0.1%)

 

 

 

 

 

 

 

725

 

Muzak LLC/Muzak Finance Corp.

 

10.00

 

02/15/09

 

583,625

 

 

 

 

 

 

 

 

 

 

 

 

 

Containers/Packaging (3.0%)

 

 

 

 

 

 

 

1,415

 

Graham Packaging Company Inc. - 144A*

 

8.50

 

10/15/12

 

1,429,150

 

2,255

 

Graham Packaging Company Inc. - 144A*

 

9.875

 

10/15/14

 

2,249,363

 

2,850

 

Graphic Packaging International Corp.

 

9.50

 

08/15/13

 

2,793,000

 

850

 

Owens-Brockway Glass Containers Corp.

 

8.75

 

11/15/12

 

939,250

 

1,765

 

Owens-Illinois Inc.

 

7.35

 

05/15/08

 

1,853,250

 

2,105

 

Owens-Illinois Inc.

 

7.50

 

05/15/10

 

2,231,300

 

1,155

 

Pliant Corp. (Issued 04/10/02)

 

13.00

 

06/01/10

 

929,775

 

1,530

 

Pliant Corp. (Issued 08/29/00)

 

13.00

 

06/01/10

 

1,231,650

 

 

 

 

 

 

 

 

 

13,656,738

 

 

 

Drugstore Chains (1.8%)

 

 

 

 

 

 

 

1,005

 

Jean Coutu Group PJC Inc. (Canada)

 

7.625

 

08/01/12

 

1,030,125

 

3,685

 

Jean Coutu Group PJC Inc. (Canada)

 

8.50

 

08/01/14

 

3,602,087

 

2,235

 

Rite Aid Corp.

 

7.125

 

01/15/07

 

2,235,000

 

1,615

 

Rite Aid Corp.

 

8.125

 

05/01/10

 

1,602,888

 

 

 

 

 

 

 

 

 

8,470,100

 

 

 

Electric Utilities (7.1%)

 

 

 

 

 

 

 

1,330

 

AES Corp. (The)

 

7.75

 

03/01/14

 

1,416,450

 

377

 

AES Corp. (The)

 

8.875

 

02/15/11

 

418,470

 

537

 

AES Corp. (The)

 

9.375

 

09/15/10

 

606,810

 

1,100

 

AES Corp. (The) - 144A*

 

9.00

 

05/15/15

 

1,237,500

 

2,405

 

Allegheny Energy, Inc.

 

7.75

 

08/01/05

 

2,419,430

 

460

 

CMS Energy Corp.

 

7.50

 

01/15/09

 

479,550

 

3,010

 

CMS Energy Corp.

 

8.50

 

04/15/11

 

3,288,425

 

1,040

 

IPALCO Enterprises, Inc.

 

8.625

**

11/14/11

 

1,170,000

 

3,160

 

Monongahela Power Co.

 

5.00

 

10/01/06

 

3,199,152

 

3,235

 

MSW Energy Holdings/Finance

 

7.375

 

09/01/10

 

3,267,350

 

695

 

MSW Energy Holdings/Finance

 

8.50

 

09/01/10

 

722,800

 

1,940

 

Nevada Power Co.

 

8.25

 

06/01/11

 

2,177,650

 

3,130

 

Nevada Power Co.

 

9.00

 

08/15/13

 

3,529,075

 

3,320

 

PSEG Energy Holdings Inc.

 

8.625

 

02/15/08

 

3,519,200

 

5,355

 

Reliant Energy, Inc.

 

6.75

 

12/15/14

 

5,127,413

 

 

 

 

 

 

 

 

 

32,579,275

 

 

 

Electrical Products (1.0%)

 

 

 

 

 

 

 

3,485

 

Rayovac Corp.

 

8.50

 

10/01/13

 

3,650,537

 

860

 

Rayovac Corp. - 144A*

 

7.375

 

02/01/15

 

842,800

 

 

 

 

 

 

 

 

 

4,493,337

 

 

 

Electronic Components (0.3%)

 

 

 

 

 

 

 

1,630

 

Sanmina-SCI Corp. - 144A*

 

6.75

 

03/01/13

 

1,548,500

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Equipment/Instruments (0.7%)

 

 

 

 

 

 

 

3,070

 

Xerox Corp.

 

7.125

 

06/15/10

 

3,284,900

 

 

 

 

 

 

 

 

 

 

 

 

 

Environmental Services (1.0%)

 

 

 

 

 

 

 

1,515

 

Allied Waste North America, Inc.

 

6.375

 

04/15/11

 

1,454,400

 

1,515

 

Allied Waste North America, Inc.

 

6.50

 

11/15/10

 

1,488,487

 

1,546

 

Allied Waste North America, Inc.

 

9.25

 

09/01/12

 

1,669,680

 

 

 

 

 

 

 

 

 

4,612,567

 

 

 

Financial Conglomerates (0.1%)

 

 

 

 

 

 

 

795

 

General Motors Acceptance Corp.

 

6.875

 

08/28/12

 

684,334

 

 

2


 

 

 

Food Retail (0.4%)

 

 

 

 

 

 

 

1,419

 

CA FM Lease Trust - 144A*

 

8.50

 

07/15/17

 

1,623,032

 

 

 

 

 

 

 

 

 

 

 

 

 

Food: Meat/Fish/Dairy (2.5%)

 

 

 

 

 

 

 

1,995

 

Michael Foods Inc. (Series B)

 

8.00

 

11/15/13

 

2,049,862

 

2,730

 

Pilgrim’s Pride Corp.

 

9.625

 

09/15/11

 

3,003,000

 

1,770

 

PPC Escrow Corp.

 

9.25

 

11/15/13

 

1,969,125

 

4,375

 

Smithfield Foods Inc.

 

7.00

 

08/01/11

 

4,604,688

 

 

 

 

 

 

 

 

 

11,626,675

 

 

 

Forest Products (0.9%)

 

 

 

 

 

 

 

EUR

1,240

 

Crown Euro Holdings - (France)

 

6.25

 

09/01/11

 

1,575,793

 

$

695

 

Tembec Industries Inc. (Canada)

 

7.75

 

03/15/12

 

519,512

 

2,500

 

Tembec Industries Inc. (Canada)

 

8.50

 

02/01/11

 

1,925,000

 

 

 

 

 

 

 

 

 

4,020,305

 

 

 

Gas Distributors (1.2%)

 

 

 

 

 

 

 

850

 

Dynegy Holdings, Inc.

 

6.875

 

04/01/11

 

811,750

 

3,390

 

Dynegy Holdings, Inc. - 144A*

 

9.875

 

07/15/10

 

3,703,575

 

730

 

Northwest Pipeline Corp.

 

8.125

 

03/01/10

 

797,525

 

 

 

 

 

 

 

 

 

5,312,850

 

 

 

Home Building (1.1%)

 

 

 

 

 

 

 

2,100

 

Tech Olympic USA, Inc.

 

10.375

 

07/01/12

 

2,236,500

 

290

 

Tech Olympic USA, Inc.

 

7.50

 

01/15/15

 

266,800

 

1,850

 

Tech Olympic USA, Inc. (Issued 02/03/03)

 

9.00

 

07/01/10

 

1,914,750

 

815

 

Tech Olympic USA, Inc. (Issued 11/27/02)

 

9.00

 

07/01/10

 

843,525

 

 

 

 

 

 

 

 

 

5,261,575

 

 

 

Home Furnishings (0.3%)

 

 

 

 

 

 

 

1,235

 

Tempur-Pedic Inc.

 

10.25

 

08/15/10

 

1,377,025

 

 

 

 

 

 

 

 

 

 

 

 

 

Hospital/Nursing Management (1.6%)

 

 

 

 

 

 

 

2,055

 

Community Health System Inc.

 

6.50

 

12/15/12

 

2,055,000

 

2,680

 

Medcath Holdings Corp.

 

9.875

 

07/15/12

 

3,028,400

 

800

 

Tenet Healthcare Corp.

 

7.375

 

02/01/13

 

788,000

 

1,150

 

Tenet Healthcare Corp.

 

9.875

 

07/01/14

 

1,242,000

 

 

 

 

 

 

 

 

 

7,113,400

 

 

 

Hotels/Resorts/Cruiselines (0.3%)

 

 

 

 

 

 

 

1,140

 

Starwood Hotels & Resorts Worldwide, Inc.

 

7.875

 

05/01/12

 

1,281,075

 

 

 

 

 

 

 

 

 

 

 

 

 

Household/Personal Care (0.2%)

 

 

 

 

 

 

 

1,105

 

Del Laboratories, Inc. - 144A*

 

8.00

 

02/01/12

 

988,975

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial Machinery (1.2%)

 

 

 

 

 

 

 

1,111

 

Flowserve Corp.

 

12.25

 

08/15/10

 

1,197,102

 

875

 

Goodman Global Holding Company, Inc. - 144A*

 

5.53

**

06/15/12

 

840,000

 

3,585

 

Goodman Global Holding Company, Inc. - 144A*

 

7.875

 

12/15/12

 

3,244,425

 

 

 

 

 

 

 

 

 

5,281,527

 

 

 

Industrial Specialties (1.6%)

 

 

 

 

 

 

 

4,010

 

Johnsondiversy, Inc.

 

9.625

 

05/15/12

 

4,050,100

 

3,070

 

UCAR Finance, Inc.

 

10.25

 

02/15/12

 

3,192,800

 

 

 

 

 

 

 

 

 

7,242,900

 

 

 

Investment Banks/Brokers (1.0%)

 

 

 

 

 

 

 

4,535

 

Refco Finance Holdings

 

9.00

 

08/01/12

 

4,761,750

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Managers (0.4%)

 

 

 

 

 

 

 

1,845

 

JSG Funding PLC (Ireland)

 

9.625

 

10/01/12

 

1,812,713

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical Distributors (0.6%)

 

 

 

 

 

 

 

220

 

AmerisourceBergen Corp.

 

7.25

 

11/15/12

 

241,450

 

2,185

 

AmerisourceBergen Corp.

 

8.125

 

09/01/08

 

2,381,650

 

 

 

 

 

 

 

 

 

2,623,100

 

 

 

Medical Specialties (0.2%)

 

 

 

 

 

 

 

715

 

Fisher Scientific International, Inc.

 

6.75

 

08/15/14

 

745,387

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical/Nursing Services (1.6%)

 

 

 

 

 

 

 

1,340

 

DaVita Inc. - 144A*

 

6.625

 

03/15/13

 

1,360,100

 

680

 

DaVita Inc. - 144A*

 

7.25

 

03/15/15

 

686,800

 

4,000

 

Fresenius Medical Care Capital Trust

 

7.875

 

06/15/11

 

4,320,000

 

665

 

National Nephrology Assoc. Inc. - 144A*

 

9.00

 

11/01/11

 

744,800

 

 

 

 

 

 

 

 

 

7,111,700

 

 

 

Metal Fabrications (1.6%)

 

 

 

 

 

 

 

1,680

 

General Cable Corp.

 

9.50

 

11/15/10

 

1,797,600

 

2,385

 

Hexcel Corp. - 144A*

 

6.75

 

02/01/15

 

2,367,112

 

4,010

 

Trimas Corp.

 

9.875

 

06/15/12

 

3,268,150

 

 

 

 

 

 

 

 

 

7,432,862

 

 

3


 

 

 

Miscellaneous Commercial Services (2.5%)

 

 

 

 

 

 

 

1,940

 

Advanstar Communications, Inc.

 

10.768

**

08/15/08

 

2,056,864

 

2,225

 

Advanstar Communications, Inc.

 

10.75

 

08/15/10

 

2,391,875

 

2,471

 

Iron Mountain Inc.

 

7.75

 

01/15/15

 

2,446,290

 

2,800

 

Iron Mountain Inc.

 

8.625

 

04/01/13

 

2,870,000

 

1,910

 

Vertis Inc. - 144A*

 

13.50

 

12/07/09

 

1,461,150

 

 

 

 

 

 

 

 

 

11,226,179

 

 

 

Miscellaneous Manufacturing (1.5%)

 

 

 

 

 

 

 

8,350

 

Associated Materials Inc.

 

11.25

††

03/01/14

 

4,968,250

 

2,120

 

Propex Fabrics Inc.

 

10.00

 

12/01/12

 

2,003,400

 

 

 

 

 

 

 

 

 

6,971,650

 

 

 

Movies/Entertainment (0.4%)

 

 

 

 

 

 

 

1,800

 

Marquee Inc. - 144A*

 

7.518

**

08/15/10

 

1,890,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil & Gas Pipelines (3.0%)

 

 

 

 

 

 

 

4,275

 

El Paso Production Holdings

 

7.75

 

06/01/13

 

4,456,687

 

2,525

 

Pacific Energy Partners/Finance

 

7.125

 

06/15/14

 

2,638,625

 

1,435

 

Southern Natural Gas

 

8.875

 

03/15/10

 

1,570,193

 

4,700

 

Williams Companies, Inc. (The)

 

7.875

 

09/01/21

 

5,240,500

 

 

 

 

 

 

 

 

 

13,906,005

 

 

 

Oil & Gas Production (3.1%)

 

 

 

 

 

 

 

3,560

 

Chesapeake Energy Corp.

 

7.50

 

09/15/13

 

3,862,600

 

3,710

 

Hilcorp Energy/Finance - 144A*

 

10.50

 

09/01/10

 

4,099,550

 

1,400

 

Magnum Hunter Resources, Inc.

 

9.60

 

03/15/12

 

1,547,000

 

1,830

 

Plains E & P Corp.

 

7.125

 

06/15/14

 

1,962,675

 

2,400

 

Vintage Petroleum, Inc.

 

7.875

 

05/15/11

 

2,544,000

 

 

 

 

 

 

 

 

 

14,015,825

 

 

 

Oil Refining/Marketing (1.7%)

 

 

 

 

 

 

 

2,270

 

CITGO Petroleum Corp.

 

6.00

 

10/15/11

 

2,235,950

 

3,000

 

Husky Oil Ltd.

 

8.90

 

08/15/28

 

3,318,837

 

1,815

 

Tesoro Petroleum Corp.

 

9.625

 

04/01/12

 

1,996,500

 

 

 

 

 

 

 

 

 

7,551,287

 

 

 

Oilfield Services/Equipment (1.3%)

 

 

 

 

 

 

 

1,040

 

CIE Generale de Geophysique SA - 144A*

 

7.50

 

05/15/15

 

1,045,200

 

625

 

Hanover Compressor Co.

 

8.625

 

12/15/10

 

646,875

 

575

 

Hanover Compressor Co.

 

9.00

 

06/01/14

 

598,000

 

1,715

 

Hanover Equipment Trust 2001 A (Series A)

 

8.50

 

09/01/08

 

1,783,600

 

1,655

 

Hanover Equipment Trust 2001 B (Series B)

 

8.75

 

09/01/11

 

1,725,338

 

 

 

 

 

 

 

 

 

5,799,013

 

 

 

Other Metals/Minerals (0.0%)

 

 

 

 

 

 

 

3,750

 

Murrin Holdings Property Ltd. (Australia) (b) (f)

 

9.375

 

08/31/07

 

375

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Transportation (2.1%)

 

 

 

 

 

 

 

3,345

 

CHC Helicopter Corp.

 

7.375

 

05/01/14

 

3,244,650

 

1,670

 

CHC Helicopter Corp. - 144A*

 

7.375

 

05/01/14

 

1,619,900

 

4,305

 

Laidlaw International Inc.

 

10.75

 

06/15/11

 

4,891,556

 

 

 

 

 

 

 

 

 

9,756,106

 

 

 

Pharmaceuticals: Major (1.2%)

 

 

 

 

 

 

 

1,370

 

VWR International Inc.

 

6.875

 

04/15/12

 

1,332,325

 

1,795

 

VWR International Inc.

 

8.00

 

04/15/14

 

1,696,275

 

2,525

 

Warner Chilcott Corp. - 144A*

 

8.75

 

02/01/15

 

2,449,250

 

 

 

 

 

 

 

 

 

5,477,850

 

 

 

Publishing: Books/Magazines (3.0%)

 

 

 

 

 

 

 

1,756

 

Dex Media East/Finance

 

12.125

 

11/15/12

 

2,111,590

 

2,741

 

Dex Media West/Finance

 

9.875

 

08/15/13

 

3,145,298

 

355

 

Houghton Mifflin Co

 

8.25

 

02/01/11

 

370,975

 

1,310

 

Houghton Mifflin Co.

 

11.50

††

10/15/13

 

903,900

 

3,540

 

Houghton Mifflin Co.

 

9.875

 

02/01/13

 

3,717,000

 

3,355

 

PRIMEDIA, Inc.

 

8.875

 

05/15/11

 

3,539,525

 

 

 

 

 

 

 

 

 

13,788,288

 

 

 

Pulp & Paper (1.7%)

 

 

 

 

 

 

 

3,255

 

Abitibi-Consolidated Inc. (Canada)

 

6.00

 

06/20/13

 

2,860,331

 

4,350

 

Georgia-Pacific Corp.

 

8.875

 

02/01/10

 

4,959,000

 

 

 

 

 

 

 

 

 

7,819,331

 

 

 

Real Estate Investment Trusts (0.8%)

 

 

 

 

 

 

 

380

 

HMH Properties, Inc. (Series B)

 

7.875

 

08/01/08

 

388,550

 

3,345

 

Host Marriott LP - 144A*

 

6.375

 

03/15/15

 

3,286,463

 

 

 

 

 

 

 

 

 

3,675,013

 

 

 

Specialty Stores (2.3%)

 

 

 

 

 

 

 

830

 

Autonation, Inc.

 

9.00

 

08/01/08

 

906,775

 

2,980

 

General Nutrition Centers Inc.

 

8.50

 

12/01/10

 

2,287,150

 

3,720

 

Petro Stopping Centers LP/Petro Financial Corp.

 

9.00

 

02/15/12

 

3,757,200

 

3,515

 

Sonic Automotive, Inc.

 

8.625

 

08/15/13

 

3,466,669

 

 

 

 

 

 

 

 

 

10,417,794

 

 

4


 

 

 

Specialty Telecommunications (3.0%)

 

 

 

 

 

 

 

2,070

 

American Tower Corp.

 

7.125

 

10/15/12

 

2,155,388

 

2,070

 

American Tower Corp.

 

7.50

 

05/01/12

 

2,173,500

 

467

 

Panamsat Corp.

 

9.00

 

08/15/14

 

510,198

 

4,690

 

Panamsat Holding Corp. - 144A*

 

10.375

††

11/01/14

 

3,236,100

 

3,250

 

Qwest Communications International - 144A*

 

7.268

**

02/15/09

 

3,225,625

 

1,290

 

Qwest Services Corp. - 144A*

 

13.50

 

12/15/07

 

1,420,613

 

400

 

U.S. West Communications Corp.

 

5.625

 

11/15/08

 

392,000

 

585

 

U.S. West Communications Corp.

 

6.625

 

09/15/05

 

589,388

 

 

 

 

 

 

 

 

 

13,702,812

 

 

 

Steel (1.2%)

 

 

 

 

 

 

 

3,570

 

Amsted Industries Inc. - 144A*

 

10.25

 

10/15/11

 

3,837,750

 

1,356

 

United States Steel Corp.

 

9.75

 

05/15/10

 

1,488,210

 

 

 

 

 

 

 

 

 

5,325,960

 

 

 

Telecommunication Equipment (0.5%)

 

 

 

 

 

 

 

2,170

 

Nortel Networks Ltd.

 

6.125

 

02/15/06

 

2,191,700

 

 

 

 

 

 

 

 

 

 

 

 

 

Telecommunications (1.2%)

 

 

 

 

 

 

 

3,440

 

Axtel SA (Mexico)

 

11.00

 

12/15/13

 

3,698,000

 

6,501

 

Exodus Communications, Inc. (a) (b) (f)

 

11.625

 

07/15/10

 

0

 

3,255

 

Primus Telecommunication Group, Inc.

 

8.00

 

01/15/14

 

1,725,150

 

28,549

 

Rhythms Netconnections, Inc. (a) (b) (f)

 

12.75

 

04/15/09

 

0

 

4,309

 

Rhythms Netconnections, Inc. (a) (b) (f)

 

14.00

 

02/15/10

 

0

 

13,439

 

Rhythms Netconnections, Inc. (Series B) (a) (b) (f)

 

13.50

 

05/15/08

 

0

 

 

 

 

 

 

 

 

 

5,423,150

 

 

 

Trucks/Construction/Farm Machinery (1.5%)

 

 

 

 

 

 

 

2,939

 

Manitowoc Inc. (The)

 

10.50

 

08/01/12

 

3,306,375

 

3,370

 

NMHG Holding Co.

 

10.00

 

05/15/09

 

3,589,050

 

 

 

 

 

 

 

 

 

6,895,425

 

 

 

Wholesale Distributors (1.9%)

 

 

 

 

 

 

 

3,450

 

Buhrmann US, Inc.

 

8.25

 

07/01/14

 

3,381,000

 

995

 

Buhrmann US, Inc. - 144A*

 

7.875

 

03/01/15

 

950,225

 

1,300

 

Fisher Scientific International, Inc.

 

8.00

 

09/01/13

 

1,417,000

 

3,070

 

Nebraska Book Company, Inc.

 

8.625

 

03/15/12

 

2,809,050

 

 

 

 

 

 

 

 

 

8,557,275

 

 

 

Wireless Telecommunications (4.0%)

 

 

 

 

 

 

 

3,845

 

MetroPCS, Inc.

 

10.75

 

10/01/11

 

4,605,233

 

1,850

 

Rogers Wireless Communications Inc.

 

7.50

 

03/15/15

 

1,984,125

 

1,295

 

Rogers Wireless Communications Inc. - 144A*

 

8.00

 

12/15/12

 

1,384,031

 

1,920

 

Rural Cellular Corp.

 

7.51

**

03/15/10

 

1,953,600

 

3,865

 

SBA Communications Corp.

 

9.75

††

12/15/11

 

3,401,200

 

2,015

 

SBA Communications Corp. - 144A

 

8.50

 

12/01/12

 

2,145,975

 

2,710

 

Ubiquitel Operating Co.

 

9.875

 

03/01/11

 

2,940,350

 

 

 

 

 

 

 

 

 

18,414,514

 

 

 

TOTAL CORPORATE BONDS

 

 

 

 

 

 

 

 

 

(Cost $507,681,258)

 

 

 

 

 

432,272,864

 

 

PRINCIPAL
AMOUNT IN
THOUSANDS

 

 

 

COUPON
RATE

 

MATURITY
DATE

 

VALUE

 

 

 

CONVERTIBLE BONDS (0.6%)

 

 

 

 

 

 

 

 

 

Hotels/Resorts/Cruiselines (0.0%)

 

 

 

 

 

 

 

1,643

 

Premier Cruises Ltd. - 144A* (a) (b) (f)

 

10.00

†

08/15/05

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Telecommunication Equipment (0.6%)

 

 

 

 

 

 

 

2,815

 

Nortel Networks Corp. (Canada)

 

4.25

 

09/01/08

 

2,586,281

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CONVERTIBLE BONDS

 

 

 

 

 

 

 

 

 

(Cost $4,319,325)

 

 

 

 

 

2,586,281

 

 

 

 

 

 

 

 

 

 

 

NUMBER OF
SHARES

 

 

 

 

 

 

 

VALUE

 

 

 

COMMON STOCKS (d) (0.5%)

 

 

 

 

 

 

 

 

 

Aerospace & Defense (0.0%)

 

 

 

 

 

 

 

1

 

Orbital Sciences Corp. (c)

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel/Footwear Retail (0.0%)

 

 

 

 

 

 

 

5,421,101

 

County Seat Stores Corp. (c) (f)

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Casino/Gaming (0.0%)

 

 

 

 

 

 

 

212,312

 

Fitzgeralds Gaming Corp. + (f)

 

 

 

 

 

0

 

 

5


 

 

 

Food: Specialty/Candy (0.0%)

 

 

 

 

 

 

 

13,317

 

SFAC New Holdings Inc. ++ (c) (f)

 

 

 

 

 

0

 

2,447

 

SFAC New Holdings Inc. (c) (f)

 

 

 

 

 

0

 

1,069,725

 

Specialty Foods Acquisition Corp. - 144A* (f)

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

0

 

 

 

Hotels/Resorts/Cruiselines (0.0%)

 

 

 

 

 

 

 

981,277

 

Premier Holdings Inc. +++ (c) (f)

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical/Nursing Services (0.0%)

 

 

 

 

 

 

 

1,754,896

 

Raintree Healthcare Corp. (c) (f)

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants (0.5%)

 

 

 

 

 

 

 

111,558

 

American Restaurant Group Holdings, Inc. (c) (f)

 

 

 

 

 

0

 

13,107

 

American Restaurant Group Holdings, Inc. (c) (f)

 

 

 

 

 

0

 

64,807

 

American Restaurant Group Holdings, Inc. - 144A* (f)

 

 

 

 

 

0

 

787,160

 

Catalina Restaurant Group (c) (f)

 

 

 

 

 

1,912,799

 

 

 

 

 

 

 

 

 

1,912,799

 

 

 

Specialty Telecommunications (0.0%)

 

 

 

 

 

 

 

34,159

 

Birch Telecom Inc. (c) (f)

 

 

 

 

 

342

 

1,448,200

 

PFB Telecom NV (Series B) (c) (f)

 

 

 

 

 

0

 

1

 

XO Communications Inc. (c)

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

344

 

 

 

Telecommunications (0.0%)

 

 

 

 

 

 

 

49,597

 

Viatel Holdings Bermuda Ltd. (c)

 

 

 

 

 

3,472

 

 

 

 

 

 

 

 

 

 

 

 

 

Textiles (0.0%)

 

 

 

 

 

 

 

2,389,334

 

U.S. Leather, Inc. (c) (f)

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Telecommunications (0.0%)

 

 

 

 

 

 

 

5,199

 

USA Mobility, Inc. (c)

 

 

 

 

 

137,565

 

315,021

 

Vast Solutions, Inc. (Class B1) (c) (f)

 

 

 

 

 

0

 

315,021

 

Vast Solutions, Inc. (Class B2) (c) (f)

 

 

 

 

 

0

 

315,021

 

Vast Solutions, Inc. (Class B3) (c) (f)

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

137,565

 

 

 

TOTAL COMMON STOCKS

 

 

 

 

 

 

 

 

 

(Cost $296,107,775)

 

 

 

 

 

2,054,190

 

 

 

 

 

 

 

 

 

 

 

NUMBER OF
SHARES

 

 

 

 

 

 

 

VALUE

 

 

 

NON-CONVERTIBLE PREFERRED STOCKS (1.5%)

 

 

 

 

 

 

 

 

 

Broadcasting (0.1%)

 

 

 

 

 

 

 

90

 

Paxson Communications Corp. †

 

 

 

 

 

586,907

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Utilities (1.1%)

 

 

 

 

 

 

 

4,269

 

TNP Enterprises, Inc. (Series D) †

 

 

 

 

 

4,962,713

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants (0.3%)

 

 

 

 

 

 

 

1,589

 

Catalina Restaurant Group (Units)‡ (f)

 

 

 

 

 

1,430,002

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL NON-CONVERTIBLE PREFERRED STOCKS

 

 

 

 

 

 

 

 

 

(Cost $7,051,847)

 

 

 

 

 

6,979,622

 

 

 

 

 

 

 

 

 

 

 

NUMBER OF
SHARES

 

 

 

 

 

EXPIRATION
DATE

 

VALUE

 

 

 

WARRANTS (d) (0.0%)

 

 

 

 

 

 

 

 

 

Casino/Gaming (0.0%)

 

 

 

 

 

 

 

319,500

 

Aladdin Gaming Enterprises, Inc. - 144A* (f)

 

 

 

03/01/10

 

$

0

 

23,000

 

Resort At Summerlin LP - 144A* (f)

 

 

 

12/15/07

 

0

 

 

 

 

 

 

 

 

 

0

 

 

 

Electric Utilities (0.0%)

 

 

 

 

 

 

 

1,850

 

TNP Enterprises, Inc. - 144A*

 

 

 

04/01/11

 

57,350

 

 


 

 

 

Restaurants (0.0%)

 

 

 

 

 

 

 

4,500

 

American Restaurant Group Holdings, Inc. - 144A* (f)

 

 

 

08/15/08

 

0

 

334,250

 

Catalina Restaurant Group (c) (f)

 

 

 

07/10/12

 

0

 

 

 

 

 

 

 

 

 

0

 

 

 

TOTAL WARRANTS

 

 

 

 

 

 

 

 

 

(Cost $58,970)

 

 

 

 

 

57,350

 

 

 

 

 

 

 

 

 

 

 

PRINCIPAL
AMOUNT IN
THOUSANDS

 

 

 

Coupon
Rate

 

Maturity
Date

 

VALUE

 

 

 

SHORT-TERM INVESTMENT (0.6%)

 

 

 

 

 

 

 

 

 

REPURCHASE AGREEMENT

 

 

 

 

 

 

 

$

2,753

 

Joint repurchase agreement account (dated 05/31/05; proceeds $2,753,232) (e)

 

 

 

 

 

 

 

 

 

(Cost $2,753,000)

 

3.04

%

06/01/05

 

2,753,000

 

 

 

TOTAL INVESTMENTS

 

 

 

 

 

 

 

 

 

(Cost $817,972,175) (g)

 

 

 

97.8

%

446,703,307

 

 

 

OTHER ASSETS IN EXCESS OF LIABILITIES

 

 

 

2.2

 

10,066,253

 

 

 

NET ASSETS

 

 

 

100.0

%

$

456,769,560

 

 

*

 

Resale is restricted to qualified institutional investors.

+

 

Resale is restricted, acquired 12/22/98 at a cost basis of $957,527.

++

 

Resale is restricted, acquired 06/10/99 at a cost basis of $133.

+++

 

Resale is restricted, acquired between 03/06/98 and 07/12/99 at a cost basis of $13,231,546.

**

 

Floating rate security. Rate shown is the rate in effect at May 31, 2005.

†

 

Payment-in-kind security.

††

 

Currently a zero coupon bond and is scheduled to pay interest at the rate shown at a future specified date.

‡

 

Consists of one or more class of securities traded together as a unit; preferred stocks with attached warrants.

(a)

 

Issuer in bankruptcy.

(b)

 

Non-income producing security; bond in default.

(c)

 

Acquired through exchange offer.

(d)

 

Non-income producing securities.

(e)

 

Collateralized by federal agency and U.S. Treasury obligations.

(f)

 

Securities with total market value equal to $3,343,518 have been valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Trustees.

(g)

 

The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $17,218,118 and the aggregate gross unrealized depreciation is $388,486,986, resulting in net unrealized depreciation of $371,268,868.

 

Forward Foreign Currency Contracts Open at May 31, 2005:

 

CONTRACTS TO DELIVER

 

IN EXCHANGE FOR

 

DELIVERY DATE

 

UNREALIZED
APPRECIATION

 

 

 

 

 

 

 

 

 

EUR

1,375,000

 

$

1,803,058

 

07/26/05

 

$

107,766

 

 

Currency Abbreviations:

EUR        Euro.

 

6


 

Item 2.  Controls and Procedures.

 

(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

 

(b)  There were no changes in the Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

 

Item 3.  Exhibits.

 

(a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Morgan Stanley High Yield Securities Inc.

 

/s/ Ronald E. Robison

 

Ronald E. Robison

Principal Executive Officer

July 20, 2005

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

/s/ Ronald E. Robison

 

Ronald E. Robison

Principal Executive Officer

July 20, 2005

 

/s/ Francis Smith

 

Francis Smith

Principal Financial Officer

July 20, 2005