Ivy High Income Opportunties Fund

 

 

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: 811-22800

Ivy High Income Opportunities Fund

(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)

Wendy J. Hills

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 913-236-2000

Date of fiscal year end: September 30

Date of reporting period: June 30, 2016

 

 

 

ITEM 1.    SCHEDULE OF INVESTMENTS.

SCHEDULE OF INVESTMENTS

Ivy High Income Opportunities Fund (in thousands)

    JUNE 30, 2016 (UNAUDITED)

 

 

CORPORATE DEBT SECURITIES    Principal        Value  

Consumer Discretionary

        

Advertising – 0.7%

  

Acosta, Inc.,

        

7.750%, 10–1–22 (A)

    $ 200         $ 175   

Lamar Media Corp.,

        

5.375%, 1–15–24 (B)

      681           710   

Outfront Media Capital LLC and Outfront Media Capital Corp.:

        

5.250%, 2–15–22

      353           358   

5.625%, 2–15–24

      387           399   
       

 

 

  
          1,642   
       

 

 

  
       

Apparel Retail – 1.3%

  

Hot Topic, Inc.,

        

9.250%, 6–15–21 (A)(B)

      2,509           2,541   

HT Intermediate Holdings Corp.,

        

12.000%, 5–15–19 (A)(C)

      766           722   

Nine West Holdings, Inc.,

        

8.250%, 3–15–19 (A)

      633           101   
       

 

 

  
          3,364   
       

 

 

  

Automotive Retail – 0.6%

  

Group 1 Automotive, Inc.,

        

5.000%, 6–1–22

      424           418   

Penske Automotive Group, Inc.,

        

5.500%, 5–15–26

      218           207   

Sonic Automotive, Inc.,

        

5.000%, 5–15–23 (B)

      919           900   
       

 

 

  
          1,525   
       

 

 

  

Broadcasting – 5.4%

  

Clear Channel Outdoor Holdings, Inc.,

        

6.500%, 11–15–22 (B)

      2,200           2,200   

Clear Channel Worldwide Holdings, Inc., Series A,

        

7.625%, 3–15–20 (B)

      119           109   

Clear Channel Worldwide Holdings, Inc., Series B,

        

7.625%, 3–15–20 (B)

      10,000           9,515   

Cumulus Media, Inc.,

        

7.750%, 5–1–19 (B)

      2,000           820   

iHeartCommunications, Inc.,

        

10.000%, 1–15–18

      1,526           786   
       

 

 

  
          13,430   
       

 

 

  

Cable & Satellite – 22.4%

  

Altice Financing S.A.:

        

6.625%, 2–15–23 (A)

      367           360   

7.500%, 5–15–26 (A)

      1,192           1,171   

Altice S.A.:

        

7.250%, 5–15–22 (A)(D)

    EUR 152           170   

7.750%, 5–15–22 (A)(B)

    $ 13,835           13,973   

6.250%, 2–15–25 (A)(D)

    EUR 184           187   

7.625%, 2–15–25 (A)(B)

    $ 11,190           10,924   

Altice U.S. Finance I Corp.,

        

5.500%, 5–15–26 (A)

      879           879   

Cablevision Systems Corp.,

        

5.875%, 9–15–22 (B)

      3,385           3,038   

CCO Holdings LLC and CCO Holdings Capital Corp.,

        

5.500%, 5–1–26 (A)

      43           44   

Columbus International, Inc.,

        

7.375%, 3–30–21 (A)

      268           283   

DISH DBS Corp.:

        

6.750%, 6–1–21 (B)

      7,500           7,772   

5.875%, 7–15–22 (B)

      2,000           1,945   

5.000%, 3–15–23

      250           227   

5.875%, 11–15–24

      212           198   

7.750%, 7–1–26 (A)

      657           678   

Neptune Finco Corp.:

        

10.125%, 1–15–23 (A)

      831           931   

6.625%, 10–15–25 (A)

      394           415   

10.875%, 10–15–25 (A)

      794           909   

Numericable – SFR S.A.,

        

7.375%, 5–1–26 (A)

      2,582           2,553   

Sirius XM Radio, Inc.,

        

4.625%, 5–15–23 (A)(B)

      4,586           4,449   

VTR Finance B.V.,

        

6.875%, 1–15–24 (A)(B)

      3,584           3,573   

Wave Holdco LLC and Wave Holdco Corp.,

        

8.250%, 7–15–19 (A)(C)

      457           459   

WaveDivision Escrow LLC and WaveDivision Escrow Corp.,

        

8.125%, 9–1–20 (A)

      313           326   
       

 

 

  
          55,464   
       

 

 

  

Casinos & Gaming – 4.1%

  

Boyd Gaming Corp.,

        

6.375%, 4–1–26 (A)

      173           181   

Gateway Casinos & Entertainment Ltd.,

        

8.500%, 11–26–20 (A)(D)

    CAD 1,643           1,195   

MCE Finance Ltd.,

        

5.000%, 2–15–21 (A)(B)

    $ 337           334   

Studio City Finance Ltd.,

        

8.500%, 12–1–20 (A)(B)

      4,614           4,660   

Wynn Macau Ltd.,

        

5.250%, 10–15–21 (A)(B)

      3,931           3,824   
       

 

 

  
          10,194   
       

 

 

  

Department Stores – 0.5%

  

Bon-Ton Stores, Inc. (The):

        

10.625%, 7–15–17

      379           349   

8.000%, 6–15–21

      2,513           1,030   
       

 

 

  
          1,379   
       

 

 

  

Distributors – 0.9%

  

Pinnacle Operating Corp.,

        

9.000%, 11–15–20 (A)(B)

      2,618           2,199   
       

 

 

  

Hotels, Resorts & Cruise Lines – 0.3%

  

Carlson Travel Holdings,

        

7.500%, 8–15–19 (A)(C)

      800           764   
       

 

 

  

Movies & Entertainment – 2.0%

  

AMC Entertainment, Inc.,

        

5.750%, 6–15–25 (B)

      313           311   

Cinemark USA, Inc.:

        

5.125%, 12–15–22 (B)

      164           167   

4.875%, 6–1–23 (B)

      1,451           1,433   

EMI Music Publishing Group North America Holdings,

        

7.625%, 6–15–24 (A)

      523           537   

WMG Acquisition Corp.,

        

6.750%, 4–15–22 (A)(B)

      2,472           2,491   
       

 

 

  
          4,939   
       

 

 

  

Publishing – 0.3%

  

MDC Partners, Inc.,

        

6.500%, 5–1–24 (A)

      672           667   
       

 

 

  

Specialized Consumer Services – 3.4%

  

BakerCorp International, Inc.,

        

8.250%, 6–1–19 (B)

      5,007           4,231   

Nielsen Finance,

        

5.500%, 10–1–21 (A)(B)

      1,396           1,441   

Nielsen Finance LLC and Nielsen Finance Co.,

        

5.000%, 4–15–22 (A)(B)

      2,677           2,731   
       

 

 

  
          8,403   
       

 

 

  

Specialty Stores – 0.8%

  

Jo-Ann Stores Holdings, Inc.,

        

9.750%, 10–15–19 (A)(C)

      1,766           1,545   

Jo-Ann Stores, Inc.,

        

8.125%, 3–15–19 (A)

      81           78   

NBTY, Inc.,

        

7.625%, 5–15–21 (A)

      323           323   
       

 

 

  
          1,946   
       

 

 

  

Total Consumer Discretionary – 42.7%

  

        105,916   

Consumer Staples

        

Food Distributors – 1.3%

  

Performance Food Group, Inc.,

        

5.500%, 6–1–24 (A)

      864           879   

Simmons Foods, Inc.,

        

7.875%, 10–1–21 (A)

      1,000           910   

U.S. Foods, Inc.,

        

5.875%, 6–15–24 (A)

      1,312           1,345   
       

 

 

  
          3,134   
       

 

 

  

Hypermarkets & Super Centers – 0.1%

  

Albertsons Cos. LLC, Safeway, Inc., New Albertsons, Inc. and Albertsons LLC,

        

6.625%, 6–15–24 (A)

      218           225   
       

 

 

  

Packaged Foods & Meats – 2.2%

  

Bumble Bee Foods LLC,

        

9.000%, 12–15–17 (A)

      413           418   

JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.),

        

7.750%, 10–28–20 (A)

      200           211   

JBS USA LLC and JBS USA Finance, Inc.:

        

7.250%, 6–1–21 (A)

      173           179   

5.875%, 7–15–24 (A)(B)

      1,892           1,833   

5.750%, 6–15–25 (A)

      809           761   

Post Holdings, Inc.:

        

7.375%, 2–15–22 (B)

      515           542   

7.750%, 3–15–24 (A)

      856           938   

8.000%, 7–15–25 (A)

      545           604   
       

 

 

  
          5,486   
       

 

 

  

Tobacco – 0.7%

  

Prestige Brands, Inc.,

        

5.375%, 12–15–21 (A)

      1,820           1,847   
       

 

 

  

Total Consumer Staples – 4.3%

  

        10,692   
 

Energy

        

Coal & Consumable Fuels – 0.6%

  

Foresight Energy LLC and Foresight Energy Finance Corp.,

        

7.875%, 8–15–21 (A)(B)(E)

      2,255           1,556   
       

 

 

  

Integrated Oil & Gas – 0.5%

  

Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.),

        

8.375%, 5–23–21

      1,087           1,122   
       

 

 

  

Oil & Gas Drilling – 0.9%

  

Globe Luxembourg SCA,

        

9.625%, 5–1–18 (A)(F)

      661           550   

KCA DEUTAG UK Finance plc,

        

7.250%, 5–15–21 (A)(B)

      617           462   

Offshore Drilling Holding S.A.,

        

8.375%, 9–20–20 (A)(F)

      2,549           1,195   

Offshore Group Investment Ltd.,

        

0.000%, 11–1–19

      883           —   
       

 

 

  
          2,207   
       

 

 

  

Oil & Gas Equipment & Services – 0.5%

  

Key Energy Services, Inc.,

        

6.750%, 3–1–21

      3,206           1,282   
       

 

 

  

Oil & Gas Exploration & Production – 5.1%

  

Bellatrix Exploration Ltd.,

        

8.500%, 5–15–20 (A)

      1,127           778   

California Resources Corp.,

        

8.000%, 12–15–22 (A)(B)

      4,502           3,196   

Clayton Williams Energy, Inc.,

        

7.750%, 4–1–19

      1,414           1,068   

Crownrock L.P.,

        

7.750%, 2–15–23 (A)

      369           386   

EnCana Corp.,

        

6.500%, 8–15–34

      512           513   

Endeavor Energy Resources L.P.:

        

7.000%, 8–15–21 (A)(B)

      2,087           2,051   

8.125%, 9–15–23 (A)

      378           386   

Gulfport Energy Corp.,

        

6.625%, 5–1–23

      112           110   

Laredo Petroleum, Inc.,

        

7.375%, 5–1–22

      2,147           2,152   

Midstates Petroleum Co., Inc. and Midstates Petroleum Co. LLC,

        

10.000%, 6–1–20 (E)

      827           488   

Parsley Energy LLC and Parsley Finance Corp.,

        

6.250%, 6–1–24 (A)

      196           199   

Whiting Petroleum Corp.,

        

6.500%, 10–1–18

      1,443           1,385   
       

 

 

  
          12,712   
       

 

 

  

Oil & Gas Refining & Marketing – 2.0%

  

PBF Holding Co. LLC and PBF Finance Corp.,

        

7.000%, 11–15–23 (A)

      1,187           1,147   

Seven Generations Energy Ltd.:

        

8.250%, 5–15–20 (A)

      1,699           1,760   

6.750%, 5–1–23 (A)

      1,951           1,966   
       

 

 

  
          4,873   
       

 

 

  

Oil & Gas Storage & Transportation – 0.2%

  

Access Midstream Partners L.P.,

        

4.875%, 5–15–23

      547           529   
       

 

 

  

Total Energy – 9.8%

  

        24,281   

Financials

  

Consumer Finance – 1.6%

  

Creditcorp,

        

12.000%, 7–15–18 (A)(B)

      5,248           1,994   

Quicken Loans, Inc.,

        

5.750%, 5–1–25 (A)

      1,688           1,629   

Speedy Cash Intermediate Holdings Corp.,

        

10.750%, 5–15–18 (A)

      862           496   
       

 

 

  
          4,119   
       

 

 

  

Diversified Capital Markets – 0.7%

  

Patriot Merger Corp.,

        

9.000%, 7–15–21 (A)(B)

      1,727           1,664   
       

 

 

  

Industrial REITs – 1.9%

  

Aircastle Ltd.:

        

5.125%, 3–15–21 (B)

      3,185           3,312   

5.500%, 2–15–22

      803           835   

5.000%, 4–1–23

      469           477   
       

 

 

  
          4,624   
       

 

 

  

Other Diversified Financial Services – 2.6%

  

AAF Holdings LLC and AAF Finance Co.,

        

12.000%, 7–1–19 (A)(C)

      984           965   

Balboa Merger Sub, Inc.,

        

11.375%, 12–1–21 (A)

      237           188   

Greektown Holdings LLC and Greektown Mothership Corp.,

        

8.875%, 3–15–19 (A)(B)

      1,431           1,485   

New Cotai LLC and New Cotai Capital Corp.,

        

10.625%, 5–1–19 (A)(B)(C)

      6,048           3,735   
       

 

 

  
          6,373   
       

 

 

  

Property & Casualty Insurance – 0.1%

  

Hub International Ltd.,

        

7.875%, 10–1–21 (A)

      200           192   
       

 

 

  

Real Estate Development – 0.2%

  

Hub Holdings LLC and Hub Holdings Finance, Inc.,

        

8.125%, 7–15–19 (A)(C)

      570           547   
       

 

 

  

Real Estate Operating Companies – 0.1%

  

VEREIT Operating Partnership L.P. (GTD by VEREIT, Inc.),

        

4.875%, 6–1–26

      217           223   
       

 

 

  

Specialized Finance – 3.6%

  

Diamond 1 Finance Corp. and Diamond 2 Finance Corp.:

        

4.420%, 6–15–21 (A)

      435           447   

5.875%, 6–15–21 (A)

      306           314   

5.450%, 6–15–23 (A)

      217           225   

7.125%, 6–15–24 (A)

      306           320   

6.020%, 6–15–26 (A)

      435           451   

Flexi-Van Leasing, Inc.,

        

7.875%, 8–15–18 (A)(B)

      3,394           3,292   

TMX Finance LLC and TitleMax Finance Corp.,

        

8.500%, 9–15–18 (A)(B)

      4,985           3,988   
       

 

 

  
          9,037   
       

 

 

  

Thrifts & Mortgage Finance – 2.9%

  

Provident Funding Associates L.P. and PFG Finance Corp.,

        

6.750%, 6–15–21 (A)(B)

      7,500           7,106   
       

 

 

  

Total Financials – 13.7%

  

        33,885   

Health Care

  

Health Care Facilities – 2.6%

  

Centene Escrow Corp.:

        

5.625%, 2–15–21 (A)

      296           309   

6.125%, 2–15–24 (A)

      212           225   

Greatbatch Ltd.,

        

9.125%, 11–1–23 (A)(B)

      2,373           2,364   

HCA, Inc.,

        

5.250%, 6–15–26

      305           316   

MPH Acquisition Holdings LLC,

        

7.125%, 6–1–24 (A)

      870           913   

Surgery Center Holdings, Inc.,

        

8.875%, 4–15–21 (A)

      278           286   

Tenet Healthcare Corp.,

        

8.125%, 4–1–22 (B)

      2,087           2,139   
       

 

 

  
          6,552   
       

 

 

  

Health Care Supplies – 2.4%

  

Kinetic Concepts, Inc. and KCI USA, Inc.,

        

10.500%, 11–1–18

      687           685   

Ortho-Clinical Diagnostics,

        

6.625%, 5–15–22 (A)(B)

      688           571   

Universal Hospital Services, Inc.,

        

7.625%, 8–15–20 (B)

      5,152           4,734   
       

 

 

  
          5,990   
       

 

 

  

Pharmaceuticals – 2.5%

  

Concordia Healthcare Corp.:

        

9.500%, 10–21–22 (A)(B)

      2,891           2,696   

7.000%, 4–15–23 (A)

      154           131   

Jaguar Holding Co. II and Pharmaceutical Product Development LLC,

        

6.375%, 8–1–23 (A)

      1,061           1,085   

JLL/Delta Dutch Pledgeco B.V.,

        

8.750%, 5–1–20 (A)(C)

      810           810   

VPII Escrow Corp.,

        

7.500%, 7–15–21 (A)

      829           731   

VRX Escrow Corp.,

        

5.375%, 3–15–20 (A)

      736           629   
       

 

 

  
          6,082   
       

 

 

  

Total Health Care – 7.5%

  

        18,624   

Industrials

  

Aerospace & Defense – 1.2%

  

KLX, Inc.,

        

5.875%, 12–1–22 (A)

      1,528           1,498   

Silver II Borrower SCA and Silver II U.S. Holdings,

        

7.750%, 12–15–20 (A)(B)

      1,700           1,500   
       

 

 

  
          2,998   
       

 

 

  

Air Freight & Logistics – 0.4%

  

TRAC Intermodal LLC and TRAC Intermodal Corp.,

        

11.000%, 8–15–19 (B)

      495           522   

XPO Logistics, Inc.,

        

6.500%, 6–15–22 (A)

      435           415   
       

 

 

  
          937   
       

 

 

  
 

Building Products – 1.7%

  

Ply Gem Industries, Inc.,

        

6.500%, 2–1–22

      1,670           1,634   

Summit Materials LLC and Summit Materials Finance Corp.:

        

8.500%, 4–15–22 (A)

      174           184   

6.125%, 7–15–23

      2,044           2,015   

WESCO Distribution, Inc. (GTD by WESCO International, Inc.),

        

5.375%, 6–15–24 (A)

      436           436   
       

 

 

  
          4,269   
       

 

 

  

Diversified Support Services – 2.3%

  

Algeco Scotsman Global Finance plc,

        

8.500%, 10–15–18 (A)(B)

      6,915           5,601   

United Rentals (North America), Inc. (GTD by United Rentals, Inc.),

        

5.875%, 9–15–26

      217           215   
       

 

 

  
          5,816   
       

 

 

  

Environmental & Facilities Services – 0.8%

  

GFL Environmental, Inc.:

        

7.875%, 4–1–20 (A)

      1,568           1,576   

9.875%, 2–1–21 (A)

      389           414   
       

 

 

  
          1,990   
       

 

 

  

Railroads – 1.2%

  

Florida East Coast Holdings Corp. and Florida East Coast Industries LLC:

        

6.750%, 5–1–19 (A)(B)

      2,462           2,450   

9.750%, 5–1–20 (A)

      607           516   
       

 

 

  
          2,966   
       

 

 

  

Security & Alarm Services – 1.2%

  

Prime Security Services Borrower LLC,

        

9.250%, 5–15–23 (A)

      2,716           2,879   
       

 

 

  

Trading Companies & Distributors – 0.3%

  

HD Supply, Inc.,

        

5.750%, 4–15–24 (A)

      754           784   
       

 

 

  

Total Industrials – 9.1%

  

        22,639   

Information Technology

  

Application Software – 1.6%

  

Ensemble S Merger Sub, Inc.,

        

9.000%, 9–30–23 (A)

      460           454   

Kronos Acquisition Holdings, Inc.,

        

9.000%, 8–15–23 (A)(B)

      2,000           1,960   

Michael Baker Holdings LLC and Michael Baker Finance Corp.,

        

8.875%, 4–15–19 (A)(C)

      305           246   

Michael Baker International LLC,

        

8.250%, 10–15–18 (A)

      1,402           1,360   
       

 

 

  
          4,020   
       

 

 

  

Communications Equipment – 1.0%

  

West Corp.,

        

5.375%, 7–15–22 (A)

      2,756           2,563   
       

 

 

  

Data Processing & Outsourced Services – 1.2%

  

Alliance Data Systems Corp.,

        

5.375%, 8–1–22 (A)(B)

      1,853           1,774   

Italics Merger Sub, Inc.,

        

7.125%, 7–15–23 (A)(B)

      1,373           1,301   
       

 

 

  
          3,075   
       

 

 

  

Electronic Manufacturing Services – 0.6%

  

KEMET Corp.,

        

10.500%, 5–1–18

      1,440           1,368   
       

 

 

  

IT Consulting & Other Services – 1.1%

  

NCR Escrow Corp.:

        

5.875%, 12–15–21 (B)

      1,154           1,171   

6.375%, 12–15–23 (B)

      1,575           1,607   
       

 

 

  
          2,778   
       

 

 

  

Semiconductors – 1.7%

  

Micron Technology, Inc.:

        

5.875%, 2–15–22 (B)

      1,968           1,850   

7.500%, 9–15–23 (A)

      882           943   

5.500%, 2–1–25 (B)

      1,577           1,340   
       

 

 

  
          4,133   
       

 

 

  

Technology Hardware, Storage & Peripherals – 0.4%

  

Western Digital Corp.:

        

7.375%, 4–1–23 (A)

      215           229   

10.500%, 4–1–24 (A)

      646           691   
       

 

 

  
          920   
       

 

 

  

Total Information Technology – 7.6%

  

        18,857   

Materials

  

Aluminum – 1.2%

  

Constellium N.V.:

        

8.000%, 1–15–23 (A)

      1,892           1,665   

5.750%, 5–15–24 (A)(B)

      260           205   

Kaiser Aluminum Corp.,

        

5.875%, 5–15–24 (A)

      173           178   

Wise Metals Intermediate Holdings,

        

9.750%, 6–15–19 (A)(C)

      1,867           1,008   
       

 

 

  
          3,056   
       

 

 

  

Construction Materials – 1.2%

  

Hillman Group, Inc. (The),

        

6.375%, 7–15–22 (A)(B)

      3,237           2,881   
       

 

 

  

Diversified Chemicals – 0.9%

  

PQ Corp.,

        

6.750%, 11–15–22 (A)

      129           134   

PSPC Escrow Corp.,

        

6.500%, 2–1–22 (A)

      879           774   

PSPC Escrow II Corp.,

        

10.375%, 5–1–21 (A)

      1,366           1,376   
       

 

 

  
          2,284   
       

 

 

  

Diversified Metals & Mining – 4.9%

  

Artsonig Pty Ltd.,

        

11.500%, 4–1–19 (A)(C)

      2,437           195   

Crystal Merger Sub, Inc.,

        

7.625%, 10–15–21 (A)(B)

      391           274   

FMG Resources Pty Ltd.:

        

9.750%, 3–1–22 (A)

      2,187           2,417   

6.875%, 4–1–22 (A)

      7,615           7,234   

Lundin Mining Corp.:

        

7.500%, 11–1–20 (A)(B)

      1,215           1,239   

7.875%, 11–1–22 (A)

      584           597   

U.S. Steel Corp.,

        

8.375%, 7–1–21 (A)

      304           320   
       

 

 

  
          12,276   
       

 

 

  

Metal & Glass Containers – 0.8%

  

Ardagh Finance Holdings,

        

8.625%, 6–15–19 (A)(B)(C)

      1,190           1,202   

Ardagh Packaging Finance plc and Ardagh Holdings USA, Inc.,

        

7.250%, 5–15–24 (A)

      664           678   
       

 

 

  
          1,880   
       

 

 

  

Paper Packaging – 0.4%

  

Reynolds Group Issuer, Inc., Reynolds Group Issuer LLC and Reynolds Group Issuer (Luxembourg) S.A.:

        

5.125%, 7–15–23 (A)

      657           665   

7.000%, 7–15–24 (A)

      350           360   
       

 

 

  
          1,025   
       

 

 

  

Total Materials – 9.4%

  

        23,402   

Telecommunication Services

  

Alternative Carriers – 1.9%

  

Consolidated Communications Finance II Co.,

        

6.500%, 10–1–22

      812           729   

Level 3 Communications, Inc.,

        

5.750%, 12–1–22 (B)

      2,176           2,203   

Level 3 Escrow II, Inc.,

        

5.375%, 8–15–22

      1,411           1,425   

Zayo Group LLC and Zayo Capital, Inc.,

        

6.000%, 4–1–23

      310           316   
       

 

 

  
          4,673   
       

 

 

  

Integrated Telecommunication Services – 11.9%

  

BCP (Singapore) VI Cayman Financing Co. Ltd.,

        

8.000%, 4–15–21 (A)(B)

      242           207   

Frontier Communications Corp.:

        

8.875%, 9–15–20 (B)

      1,341           1,431   

6.250%, 9–15–21 (B)

      10,811           10,192   

10.500%, 9–15–22

      790           836   

7.125%, 1–15–23 (B)

      195           175   

6.875%, 1–15–25 (B)

      562           472   

11.000%, 9–15–25

      888           922   

GCI, Inc.,

        

6.875%, 4–15–25 (B)

      3,497           3,539   

Sprint Corp.:

        

7.250%, 9–15–21 (B)

      11,196           9,545   

7.875%, 9–15–23 (B)

      2,735           2,236   
       

 

 

  
          29,555   
       

 

 

  

Wireless Telecommunication Service – 4.2%

  

Sable International Finance Ltd.,

        

6.875%, 8–1–22 (A)

      1,905           1,913   

Sprint Nextel Corp.:

        

6.000%, 12–1–16

      422           425   

9.125%, 3–1–17

      218           225   

8.375%, 8–15–17

      3,819           3,924   

9.000%, 11–15–18 (A)

      266           283   

7.000%, 8–15–20

      218           195   

T-Mobile USA, Inc.:

        

6.464%, 4–28–19 (B)

      728           740   

6.731%, 4–28–22 (B)

      158           166   

6.000%, 4–15–24

      773           804   

6.500%, 1–15–26 (B)

      1,564           1,650   
       

 

 

  
          10,325   
       

 

 

  

Total Telecommunication Services – 18.0%

  

        44,553   

TOTAL CORPORATE DEBT SECURITIES – 122.1%

  

      $ 302,849   

(Cost: $323,081)

  

 

LOANS (F)

                    

Consumer Discretionary

        

Advertising – 0.3%

        

Advantage Sales & Marketing, Inc.,

        

7.500%, 7–25–22

      955           885   
       

 

 

  

Apparel Retail – 3.3%

        

Talbots, Inc. (The):

        

5.500%, 3–19–20

      1,172           1,134   

9.500%, 3–19–21

      949           878   

True Religion Apparel, Inc.,

        

5.875%, 7–30–19

      14,475           6,152   
       

 

 

  
          8,164   
       

 

 

  

Casinos & Gaming – 0.2%

        

Gateway Casinos & Entertainment Ltd.:

        

5.250%, 11–26–19 (D)

    CAD 723           543   

5.950%, 11–26–19 (D)

      2           1   
       

 

 

  
          544   
       

 

 

  

Department Stores – 0.2%

        

Belk, Inc.,

        

0.000%, 12–10–22 (G)

    $ 510           403   
       

 

 

  

General Merchandise Stores – 0.7%

  

     

BJ’s Wholesale Club, Inc.,

        

8.500%, 3–31–20

      274           263   

Orchard Acquisition Co. LLC,

        

7.000%, 2–8–19

      4,531           1,541   
       

 

 

  
          1,804   
       

 

 

  

Housewares & Specialties – 0.3%

        

KIK Custom Products, Inc.,

        

6.000%, 8–26–22

      777           764   
       

 

 

  

Movies & Entertainment – 0.1%

        

Formula One Holdings Ltd. and Delta Two S.a.r.l.,

        

7.750%, 7–29–22

      190           180   
       

 

 

  

Total Consumer Discretionary – 5.1%

  

        12,744   

Consumer Staples

        

Food Distributors – 0.4%

        

Chefs’ Warehouse, Inc. (The):

        

0.000%, 6–22–22 (G)

      111           110   

5.750%, 6–22–22

      980           974   
       

 

 

  
          1,084   
       

 

 

  

Hypermarkets & Super Centers – 0.4%

  

     

GOBP Holdings, Inc.,

        

9.250%, 10–21–22

      979           930   
       

 

 

  

Packaged Foods & Meats – 0.3%

        

Shearer’s Foods LLC,

        

7.750%, 6–30–22

      748           674   
       

 

 

  

Total Consumer Staples – 1.1%

                 2,688   

Energy

        

Coal & Consumable Fuels – 0.3%

        

Westmoreland Coal Co.,

        

7.500%, 12–16–20

      996           747   
       

 

 

  

Oil & Gas Drilling – 0.6%

        

KCA Deutag Alpha Ltd.,

        

6.250%, 5–16–20

      1,956           1,504   
       

 

 

  

Oil & Gas Storage & Transportation – 1.1%

  

     

Bowie Resources Holdings LLC:

        

8.750%, 8–12–20

      2,141           1,755   

12.500%, 2–16–21

      1,224           967   
       

 

 

  
          2,722   
       

 

 

  

Total Energy – 2.0%

                 4,973   

Financials

        

Specialized Finance – 0.4%

        

Bats Global Markets, Inc.,

        

0.000%, 6–20–23 (G)

      873           868   
       

 

 

  

Total Financials – 0.4%

                 868   

Health Care

        

Life Sciences Tools & Services – 0.7%

  

     

Atrium Innovations, Inc.,

        

7.750%, 8–10–21

      1,740           1,618   
       

 

 

  

Total Health Care – 0.7%

                 1,618   

Industrials

        

Building Products – 0.7%

        

C.H.I. Overhead Doors, Inc.,

        

8.750%, 7–31–23

      956           918   

Hampton Rubber Co. & SEI Holding Corp.,

        

9.000%, 3–27–22

      1,146           802   
       

 

 

  
          1,720   
       

 

 

  

Construction & Engineering – 0.1%

        

Tensar International Corp.,

        

9.500%, 7–10–22

      604           389   
       

 

 

  

Industrial Machinery – 1.0%

        

Dynacast International LLC,

        

9.500%, 1–30–23

      2,663           2,543   
       

 

 

  

Research & Consulting Services – 0.7%

        

Larchmont Resources LLC,

        

11.250%, 8–7–19 (E)

      4,571           1,646   
       

 

 

  

Total Industrials – 2.5%

                 6,298   

Information Technology

        

Application Software – 3.5%

        

Misys plc and Magic Newco LLC,

        

12.000%, 6–12–19

      6,500           6,756   

TIBCO Software, Inc.,

        

6.500%, 12–4–20

      1,976           1,806   
       

 

 

  
          8,562   
       

 

 

  

IT Consulting & Other Services – 0.9%

        

Active Network, Inc. (The),

        

5.500%, 11–15–20

      1,120           1,106   

Triple Point Group Holdings, Inc.,

        

5.250%, 7–13–20

      1,516           1,241   
       

 

 

  
          2,347   
       

 

 

  

Total Information Technology – 4.4%

                 10,909   

Materials

        

Diversified Metals & Mining – 0.4%

        

EP Minerals LLC,

        

8.500%, 8–20–21

      545           499   

FMG Resources Pty Ltd.,

        

4.250%, 6–30–19

      629           601   
       

 

 

  
          1,100   
       

 

 

  

Paper Packaging – 0.7%

        

FPC Holdings, Inc.,

        

9.250%, 5–27–20

      2,500           1,650   
       

 

 

  

Specialty Chemicals – 1.2%

        

Chemstralia Ltd.,

        

7.250%, 2–26–22

      2,281           2,247   

Chromaflo Technologies Corp.,

        

8.250%, 6–2–20

      580           522   

MacDermid, Inc.:

        

0.000%, 6–7–20 (G)

      88           86   

5.500%, 6–7–20

      44           43   
       

 

 

  
          2,898   
       

 

 

  

Total Materials – 2.3%

                 5,648   

TOTAL LOANS – 18.5%

               $ 45,746   

(Cost: $63,038)

        

SHORT-TERM SECURITIES

                    

Commercial Paper (H) – 0.9%

        

St. Jude Medical, Inc.,

        

0.650%, 7–1–16

      2,164           2,164   
       

 

 

  

Master Note – 0.8%

        

Toyota Motor Credit Corp.,

        

0.590%, 7–6–16 (I)

      2,008           2,008   
       

 

 

  

TOTAL SHORT-TERM SECURITIES – 1.7%

               $ 4,172   

(Cost: $4,172)

        

TOTAL INVESTMENT SECURITIES – 142.3%

               $ 352,767   

(Cost: $390,291)

        

BORROWINGS (J) – (44.4)%

                 (110,000 ) 

CASH AND OTHER ASSETS, NET OF LIABILITIES – 2.1%

                 5,190   

NET ASSETS – 100.0%

               $ 247,957   
 

Notes to Schedule of Investments

 

(A) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2016 the total value of these securities amounted to $189,942 or 76.6% of net assets.

 

(B) All or a portion of securities with an aggregate value of $123,039 have been pledged as collateral on open borrowings.

 

(C) Payment-in-kind bonds.

 

(D) Principal amounts are denominated in the indicated foreign currency, where applicable (CAD – Canadian Dollar and EUR – Euro).

 

(E) Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy.

 

(F) Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2016.

 

(G) All or a portion of this position has not settled. Full contract rates do not take effect until settlement date.

 

(H) Rate shown is the yield to maturity at June 30, 2016.

 

(I) Variable rate security. Interest rate disclosed is that which is in effect at June 30, 2016. Date shown represents the date that the variable rate resets.

 

(J) Borrowings Payable as a percentage of Total Investments is 31.2%.

The following forward foreign currency contracts were outstanding at June 30, 2016:

 

      Currency to be
Delivered		            Currency to be
Received		      Settlement Date      Counterparty      Unrealized
Appreciation		      Unrealized
Depreciation		  

Canadian Dollar

   

2,240

     

U.S. Dollar

      1,756         7-25-16         Morgan Stanley International       $ 23       $ —   

Euro

   

319

     

U.S. Dollar

      362         7-25-16         Morgan Stanley International         7         —   
                    $ 30       $ —   

The Fund’s investments are reported at fair value. Fair value is defined as the price that the Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date.

Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Reoccurring fair value measurements of Level 3 securities shall include a reconciliation of the beginning to ending balances for reported fair market values. A fair value hierarchy and Level 3 reconciliation, if applicable, have been included in the Notes to Schedule of Investments for the Fund.

An individual investment’s fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized as follows:

• Level 1 – Observable input such as quoted prices, available in active markets, for identical assets or liabilities.

• Level 2 – Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

• Level 3 – Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair market value of investments.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of June 30, 2016:

 

     Level 1      Level 2      Level 3  

Assets

        

Investments in Securities

        

Corporate Debt Securities

   $ —       $ 302,849       $ —   

Loans

     —         32,153         13,593   

Short-Term Securities

     —         4,172         —   

Total

   $ —       $ 339,174       $ 13,593   

Forward Foreign Currency Contracts

   $ —       $ 30       $ —   

Liabilities

        

Payable for Borrowing

   $ —       $ 110,000       $ —   

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

 

     Loans  

Beginning Balance 10-1-15

   $ 9,044   

Net realized gain (loss)

     (917 ) 

Net change in unrealized appreciation (depreciation)

     113   

Purchases

     98   

Sales

     (1,503 ) 

Amortization/Accretion of premium/discount

     25   

Transfers into Level 3 during the period

     11,059   

Transfers out of Level 3 during the period

     (4,326 ) 

Ending Balance 6-30-16

   $ 13,593   

Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 6-30-16

   $ (609 ) 

Transfers from Level 2 to Level 3 occurred primarily due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred primarily due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. During the period ended June 30, 2016, there were no transfers between Levels 1 and 2.

Information about Level 3 fair value measurements:

 

    

Fair Value at

6-30-16

      Valuation Technique(s)      Unobservable Input(s)  

Assets

        

Loans

   $ 13,593         Third-party valuation service         Broker quotes   

The following acronyms are used throughout this schedule:

GTD = Guaranteed

REIT = Real Estate Investment Trust

 

For Federal income tax purposes, cost of investments owned at June 30, 2016 and the related unrealized appreciation (depreciation) were as follows:

 

Cost

    $ 390,291   

Gross unrealized appreciation

      5,505   

Gross unrealized depreciation

      (43,029 ) 

Net unrealized depreciation

    $ (37,524 ) 
 

ITEM 2.    CONTROLS AND PROCEDURES.

 

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant’s management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

 

(b) There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 3.    EXHIBITS.

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).

Attached hereto as Exhibit 99.CERT.

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.

 

IVY HIGH INCOME OPPORTUNITIES FUND
(Registrant)
By       /s/ Wendy J. Hills
  Wendy J. Hills, Vice President and Secretary

Date: August 26, 2016

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/ Philip J. Sanders
  Philip J. Sanders, Principal Executive Officer

Date: August 26, 2016

 

By       /s/ Joseph W. Kauten
  Joseph W. Kauten, Principal Financial Officer

Date: August 26, 2016