UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21318
Name of Fund: BlackRock Corporate High Yield Fund VI, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock Corporate High Yield Fund VI, 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
Date of fiscal year end: 08/31/07
Date of reporting period: 09/01/06 - 08/31/07
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock Corporate High Yield BLACKROCK
Fund VI, Inc. (HYT)
ANNUAL REPORT | AUGUST 31, 2007
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
BlackRock Corporate High Yield Fund VI, Inc.
The Benefits and Risks of Leveraging
BlackRock Corporate High Yield Fund VI, Inc. utilizes leveraging through
borrowings or issuance of short-term debt securities or shares of Preferred
Stock. The concept of leveraging is based on the premise that the cost of assets
to be obtained from leverage will be based on short-term interest rates, which
normally will be lower than the yield earned by the Fund on its longer-term
portfolio investments. Since the total assets of the Fund (including the assets
obtained from leverage) are invested in higher-yielding portfolio investments,
the Fund's Common Stock shareholders are the beneficiaries of the incremental
yield.
Leverage creates risks for holders of Common Stock including the likelihood of
greater net asset value and market price volatility. In addition, there is the
risk that fluctuations in interest rates on borrowings (or in the dividend rates
on any Preferred Stock, if the Fund were to issue Preferred Stock) may reduce
the Common Stock's yield and negatively impact its net asset value and market
price. If the income derived from securities purchased with assets received from
leverage exceeds the cost of leverage, the Fund's net income will be greater
than if leverage had not been used. Conversely, if the income from the
securities purchased is not sufficient to cover the cost of leverage, the Fund's
net income will be less than if leverage had not been used, and therefore the
amount available for distribution to Common Stock shareholders will be reduced.
Proxy Results
During the six-month period ended August 31, 2007, the shareholders of BlackRock
Corporate High Yield Fund VI, Inc. voted on the following proposal, which was
approved at an annual shareholders' meeting on August 16, 2007. This proposal
was part of the reorganization of the Fund's Board of Directors to take effect
on or about November 1, 2007. A description of the proposal and number of shares
voted are as follows:
-----------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
-----------------------------------------------------------------------------------------------
To elect the Fund's Board G. Nicholas Beckwith, III 23,676,765 384,679
of Directors: Richard E. Cavanagh 23,680,720 380,725
Richard S. Davis 23,681,678 379,766
Kent Dixon 23,674,916 386,528
Frank J. Fabozzi 23,679,348 382,096
Kathleen F. Feldstein 26,677,456 383,988
James T. Flynn 23,678,341 383,103
Henry Gabbay 23,682,872 378,572
Jerrold B. Harris 23,679,198 382,246
R. Glenn Hubbard 23,680,492 380,953
W. Carl Kester 23,680,516 380,928
Karen P. Robards 23,684,949 376,495
Robert S. Salomon, Jr. 23,675,101 386,343
-----------------------------------------------------------------------------------------------
2 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
A Letter to Shareholders
Dear Shareholder
Financial markets embarked on a wild ride during the August reporting period.
Subprime mortgage troubles intensified in the final months of the period,
spawning a widespread credit and liquidity crisis that crept into other areas of
the market. The U.S. Federal Reserve Board (the Fed) and other countries'
central banks stepped in to inject liquidity into the markets and bolster
investor confidence. In August, the Fed cut the discount rate, the rate charged
to banks to borrow money directly from the Fed, from 6.25% to 5.75%. Another
..50% cut in the discount rate came on September 18, along with a .50% cut in the
more widely followed federal funds rate. This brought the target short-term
interest rate, which had remained unchanged at 5.25% for over a year, to 4.75%.
Although heightened volatility has been a recurring theme throughout the past
year, the global economy (excluding the U.S. housing market) remained quite
healthy. In general, equity market fundamentals also held firm -- second-quarter
corporate earnings exceeded expectations (although future earnings could be at
risk if the economy weakens), dividend payouts and share buybacks continued to
grow, and valuations remained attractive. These tailwinds generally prevailed
over such headwinds as a slowing U.S. economy and troubled housing market,
although the more recent credit crunch dampened corporate merger-and-acquisition
activity, a key source of strength for equity markets. Stocks recorded their
second-worst day of the year in August, yet remained comfortably in the black
year-to-date.
Meanwhile, mixed economic signals and the credit market debacle made for a
volatile backdrop for fixed income, with investors fleeing from bonds associated
with the housing and credit markets in favor of higher-quality Treasury issues.
As a result, the 10-year Treasury yield, which touched 5.30% in June (its
highest level in five years), fell to 4.54% by period-end, while prices
correspondingly rose.
Against this backdrop, financial markets posted mixed results for the six- and
12-month periods ended August 31, 2007:
Total Returns as of August 31, 2007 6-month 12-month
=====================================================================================================
U.S. equities (S&P 500 Index) +5.70% +15.13%
-----------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) +0.54 +11.36
-----------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +5.83 +18.71
-----------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +1.54 + 5.26
-----------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) -0.57 + 2.30
-----------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -1.71 + 6.46
-----------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
As you navigate market volatility, we encourage you to review your investment
goals with your financial professional and to make portfolio changes, as needed.
For more market insight, we invite you to visit www.blackrock.com/funds. We
thank you for entrusting BlackRock with your investment assets, and we look
forward to continuing to serve you in the months and years ahead.
Sincerely,
/s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
Fund President and Director
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 3
Fund Summary as of August 31, 2007
Fund Information
Symbol on New York Stock Exchange ............................... HYT
Initial Offering Date ........................................... May 30, 2003
Yield on Closing Market Price as of 8/31/07 ($12.15)* ........... 9.38%
Current Monthly Distribution per share of Common Stock** ........ $ .095
Current Annualized Distribution per share of Common Stock** ..... $ 1.14
Leverage as of 8/31/07*** ....................................... 22%
--------------------------------------------------------------------------------
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price. Past
performance does not guarantee future results.
** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
*** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to any borrowing that may be
outstanding) minus the sum of accrued liabilities (other than debt
representing financial leverage).
The table below summarizes the changes in the Fund's market price and net asset
value per share:
--------------------------------------------------------------------------------
8/31/07 8/31/06 Change High Low
--------------------------------------------------------------------------------
Market Price ............... $12.15 $12.48 (2.64%) $13.95 $10.60
Net Asset Value ............ $13.81 $14.12 (2.20%) $15.02 $13.55
--------------------------------------------------------------------------------
The following charts show the Fund's portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Asset Mix 8/31/07 8/31/06
--------------------------------------------------------------------------------
Corporate Bonds ............................ 94% 95%
Floating Rate Loan Interests ............... 3 2
Common Stocks .............................. 2 1
Preferred Securities ....................... 1 1
Foreign Government Obligations ............. -- 1
Warrants ................................... --* --*
Other Interests ............................ --* --
--------------------------------------------------------------------------------
* Amount is less than 1%.
Credit Quality Allocations*
Credit Rating 8/31/07 8/31/06
--------------------------------------------------------------------------------
BBB/Baa .................................... 2% 2%
BB/Ba ...................................... 23 22
B/B ........................................ 53 64
CCC/Caa .................................... 18 9
NR (Not Rated) ............................. 1 2
Other** .................................... 3 1
--------------------------------------------------------------------------------
* Using the higher of S&P's or Moody's ratings.
** Includes investments in common stocks, preferred stocks, warrants, and
other interests.
4 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
Schedule of Investments as of August 31, 2007
Face
Amount Corporate Bonds Value
=============================================================================================
Aerospace & Defense -- 4.5%
$3,089,000 Alliant Techsystems, Inc., 2.75%
due 9/15/2011 (a)(e) $ 3,791,748
900,000 Bombardier, Inc., 8% due 11/15/2014 (e) 929,250
2,325,000 DRS Technologies, Inc., 6.875% due 11/01/2013 2,278,500
1,600,000 Esterline Technologies Corp., 7.75% due 6/15/2013 1,588,000
L-3 Communications Corp.:
2,200,000 7.625% due 6/15/2012 2,238,500
2,550,000 5.875% due 1/15/2015 2,416,125
2,220,000 3% due 8/01/2035 (a)(e) 2,528,025
2,200,000 Series B, 6.375% due 10/15/2015 2,128,500
750,000 TransDigm, Inc., 7.75% due 7/15/2014 753,750
3,200,000 Vought Aircraft Industries, Inc., 8% due 7/15/2011 3,104,000
-------------
21,756,398
=============================================================================================
Airlines -- 0.7%
Continental Airlines, Inc. (l):
2,820,984 Series 1997-4-B, 6.90% due 7/02/2018 2,678,172
20,938 Series 1998-1-C, 6.541% due 9/15/2009 20,728
600,637 Series 2001-1-C, 7.033% due 12/15/2012 582,618
-------------
3,281,518
=============================================================================================
Auto Components -- 0.7%
335,000 Compagnie Generale de Geophysique SA,
7.50% due 5/15/2015 336,675
The Goodyear Tire & Rubber Co.:
110,000 7.857% due 8/15/2011 108,900
950,000 8.625% due 12/01/2011 (e) 964,820
2,090,000 Lear Corp., 8.75% due 12/01/2016 1,933,250
-------------
3,343,645
=============================================================================================
Automobiles -- 0.4%
1,192,000 Ford Capital BV, 9.50% due 6/01/2010 1,156,240
1,100,000 Ford Motor Co., 8.90% due 1/15/2032 913,000
-------------
2,069,240
=============================================================================================
Beverages -- 0.5%
2,300,000 Constellation Brands, Inc., 8.125% due 1/15/2012 2,305,750
=============================================================================================
Biotechnology -- 0.4%
1,800,000 Angiotech Pharmaceuticals, Inc., 9.371%
due 12/01/2013 (b) 1,782,000
=============================================================================================
Building Products -- 1.4%
Goodman Global Holding Co., Inc.:
1,147,000 8.36% due 6/15/2012 (b) 1,124,060
2,225,000 7.875% due 12/15/2012 2,202,750
3,700,000 Momentive Performance Materials, Inc.,
10.125% due 12/01/2014 (e)(g) 3,441,000
-------------
6,767,810
=============================================================================================
Chemicals -- 2.9%
1,400,000 American Pacific Corp., 9% due 2/01/2015 1,379,000
Hexion U.S. Finance Corp.:
850,000 9.75% due 11/15/2014 918,000
1,000,000 10.058% due 11/15/2014 (b) 1,020,000
1,295,000 Ineos Group Holdings Plc, 8.50% due 2/15/2016 (e) 1,191,400
1,250,000 Innophos, Inc., 8.875% due 8/15/2014 1,231,250
720,000 Key Plastics LLC, 11.75% due 3/15/2013 (e) 633,600
2,680,000 MacDermid, Inc., 9.50% due 4/15/2017 (e) 2,492,400
3,275,000 NOVA Chemicals Corp., 8.484% due 11/15/2013 (b) 3,176,750
1,168,000 Nalco Finance Holdings, Inc., 10.078%
due 2/01/2014 (h) 1,016,160
875,000 Terra Capital, Inc. Series B, 7% due 2/01/2017 840,000
-------------
13,898,560
=============================================================================================
Commercial Services & Supplies -- 6.2%
2,475,000 Ashtead Capital, Inc., 9% due 8/15/2016 (e) 2,450,250
4,775,000 Corrections Corp. of America, 7.50%
due 5/01/2011 4,798,875
915,000 DI Finance Series B, 9.50% due 2/15/2013 928,725
2,190,000 PNA Intermediate Holding Corp., 12.558%
due 2/15/2013 (b)(e) 2,107,875
4,520,000 Quebecor World, Inc., 9.75% due 1/15/2015 (e) 4,248,800
Sally Holdings LLC:
350,000 9.25% due 11/15/2014 344,750
2,840,000 10.50% due 11/15/2016 2,712,200
4,775,000 Waste Services, Inc., 9.50% due 4/15/2014 4,822,750
West Corp.:
1,200,000 9.50% due 10/15/2014 1,206,000
4,470,000 11% due 10/15/2016 4,537,050
2,165,000 Yankee Acquisition Corp., 9.75% due 2/15/2017 1,937,675
-------------
30,094,950
=============================================================================================
Communications Equipment -- 1.4%
2,825,000 Dycom Industries, Inc., 8.125% due 10/15/2015 2,825,000
979,000 Loral Spacecom Corp., 14% due 11/15/2015 (g) 1,035,800
3,045,000 Nortel Networks Ltd., 9.61% due 7/15/2011 (b)(e) 3,052,612
-------------
6,913,412
=============================================================================================
Computers & Peripherals -- 0.4%
1,965,000 Viasystems, Inc., 10.50% due 1/15/2011 1,965,000
=============================================================================================
Construction Materials -- 0.5%
820,000 Nortek, Inc., 8.50% due 9/01/2014 709,300
1,600,000 Texas Industries, Inc., 7.25% due 7/15/2013 1,570,000
-------------
2,279,300
================================================================================-------------
Containers & Packaging -- 5.8%
Berry Plastics Holding Corp.:
2,335,000 8.875% due 9/15/2014 2,329,162
3,015,000 9.235% due 9/15/2014 (b) 2,984,850
3,475,000 Graham Packing Co., Inc., 9.875% due 10/15/2014 3,405,500
Graphic Packaging International Corp.:
1,675,000 8.50% due 8/15/2011 1,691,750
1,000,000 9.50% due 8/15/2013 1,010,000
Owens-Brockway Glass Container, Inc.:
4,175,000 8.875% due 2/15/2009 4,242,844
1,575,000 8.25% due 5/15/2013 1,614,375
2,165,000 Packaging Dynamics Finance Corp., 10%
due 5/01/2016 (e) 2,167,706
1,920,000 Pregis Corp., 12.375% due 10/15/2013 2,054,400
3,175,000 Rock-Tenn Co., 8.20% due 8/15/2011 3,254,375
3,770,000 Smurfit-Stone Container Enterprises, Inc., 8%
due 3/15/2017 3,595,638
-------------
28,350,600
=============================================================================================
Distributors -- 0.0%
295,000 Keystone Automotive Operations, Inc., 9.75%
due 11/01/2013 236,000
=============================================================================================
Diversified Financial Services -- 0.5%
Ford Motor Credit Co. LLC:
1,130,000 8.11% due 1/13/2012 (b) 1,034,864
300,000 7.80% due 6/01/2012 276,391
General Motors Acceptance Corp.:
950,000 7.25% due 3/02/2011 872,766
400,000 8% due 11/01/2031 359,346
-------------
2,543,367
=============================================================================================
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 5
Schedule of Investments (continued)
Face
Amount Corporate Bonds Value
=============================================================================================
Diversified Telecommunication Services -- 1.8%
$ 650,000 Qwest Communications International, Inc.,
7.50% due 2/15/2014 $ 638,625
Qwest Corp.:
2,300,000 8.61% due 6/15/2013 (b) 2,426,500
875,000 7.625% due 6/15/2015 901,250
4,800,000 Windstream Corp., 8.125% due 8/01/2013 4,956,000
-------------
8,922,375
=============================================================================================
Electric Utilities -- 2.9%
2,975,000 Edison Mission Energy, 7.50% due 6/15/2013 2,997,312
4,125,000 Mirant North America LLC, 7.375%
due 12/31/2013 4,104,375
660,000 NSG Holdings LLC, 7.75% due 12/15/2025 (e)(l) 641,025
2,400,000 Nevada Power Co. Series A, 8.25% due 6/01/2011 2,615,203
775,000 Sierra Pacific Resources, 8.625% due 3/15/2014 820,131
3,205,216 Tenaska Alabama Partners LP, 7%
due 6/30/2021 (e)(l) 3,177,305
-------------
14,355,351
=============================================================================================
Electrical Equipment -- 0.6%
610,000 Belden CDT, Inc., 7% due 3/15/2017 (e) 591,700
1,900,000 Coleman Cable, Inc., 9.875% due 10/01/2012 (e) 1,828,750
321,000 Ucar Finance, Inc., 10.25% due 2/15/2012 335,445
-------------
2,755,895
=============================================================================================
Electronic Equipment & Instruments -- 1.4% NXP BV:
2,005,000 8.11% due 10/15/2013 (b) 1,817,031
3,720,000 9.50% due 10/15/2015 3,217,800
Sanmina-SCI Corp.:
90,000 6.75% due 3/01/2013 76,500
1,805,000 8.125% due 3/01/2016 1,561,325
-------------
6,672,656
=============================================================================================
Energy Equipment & Services -- 1.8%
510,000 Compagnie Generale de Geophysique-Veritas,
7.75% due 5/15/2017 515,100
1,140,000 North American Energy Partners, Inc., 8.75%
due 12/01/2011 1,145,700
3,200,000 Ocean RIG ASA, 9.36% due 4/04/2011 (b) 3,160,000
3,930,000 SemGroup LP, 8.75% due 11/15/2015 (e) 3,782,625
-------------
8,603,425
=============================================================================================
Food & Staples Retailing -- 2.1%
1,300,000 AmeriQual Group LLC, 9.50% due 4/01/2012 (e) 1,209,000
3,150,000 National Beef Packing Co. LLC, 10.50%
due 8/01/2011 3,244,500
Rite Aid Corp.:
2,280,000 9.375% due 12/15/2015 (e) 2,074,800
4,065,000 7.50% due 3/01/2017 3,780,450
-------------
10,308,750
=============================================================================================
Food Products -- 1.0%
4,791,000 Del Monte Corp., 8.625% due 12/15/2012 4,838,910
=============================================================================================
Gas Utilities -- 0.4%
2,110,000 El Paso Performance-Linked Trust, 7.75%
due 7/15/2011 (e) 2,161,781
=============================================================================================
Health Care Equipment & Supplies -- 0.2%
900,000 The Cooper Cos., Inc., 7.125% due 2/15/2015 859,500
=============================================================================================
Health Care Providers & Services -- 5.9%
300,000 Accellent, Inc., 10.50% due 12/01/2013 277,500
1,935,000 Community Health Systems, Inc., 8.875%
due 7/15/2015 (e) 1,932,581
Omnicare, Inc.
1,150,000 6.75% due 12/15/2013 1,069,500
1,250,000 Series OCR, 3.25% due 12/15/2035 (a) 979,688
4,775,000 Service Corp. International, 7% due 6/15/2017 4,512,375
Tenet Healthcare Corp.:
6,795,000 6.50% due 6/01/2012 5,639,850
3,565,000 9.875% due 7/01/2014 3,155,025
4,775,000 US Oncology, Inc., 9% due 8/15/2012 4,775,000
2,400,000 United Surgical Partners International, Inc.,
8.875% due 5/01/2017 2,292,000
Universal Hospital Services, Inc. (e):
520,000 8.50% due 6/01/2015 (g) 482,469
490,000 8.759% due 6/01/2015 472,850
3,175,000 Vanguard Health Holding Co. II, LLC, 9%
due 10/01/2014 2,968,625
-------------
28,557,463
=============================================================================================
Hotels, Restaurants & Leisure -- 8.4%
American Real Estate Partners LP:
290,000 7.125% due 2/15/2013 272,600
2,000,000 7.125% due 2/15/2013 (e) 1,880,000
Caesars Entertainment, Inc.:
2,200,000 7.875% due 3/15/2010 2,211,000
155,000 8.125% due 5/15/2011 153,450
1,250,000 French Lick Resorts & Casino LLC, 10.75%
due 4/15/2014 (e) 993,750
Galaxy Entertainment Finance Co. Ltd. (e):
450,000 10.409% due 12/15/2010 (b) 454,500
875,000 9.875% due 12/15/2012 888,125
3,180,000 Great Canadian Gaming Corp., 7.25%
due 2/15/2015 (e) 3,052,800
950,000 Greektown Holdings, LLC, 10.75%
due 12/01/2013 (e) 950,000
5,185,000 Harrah's Operating Co., Inc., 5.75%
due 10/01/2017 3,888,750
2,575,000 Inn of the Mountain Gods Resort & Casino,
12% due 11/15/2010 2,716,625
510,000 Landry's Restaurants, Inc. Series B, 7.50%
due 12/15/2014 510,637
1,895,000 Little Traverse Bay Bands of Odawa Indians,
10.25% due 2/15/2014 (e) 1,904,475
3,150,000 Penn National Gaming, Inc., 6.875%
due 12/01/2011 3,150,000
2,120,000 Pinnacle Entertainment, Inc., 7.50%
due 6/15/2015 (e) 1,950,400
1,575,000 San Pasqual Casino, 8% due 9/15/2013 (e) 1,576,969
1,440,000 Shingle Springs Tribal Gaming Authority,
9.375% due 6/15/2015 (e) 1,418,400
Station Casinos, Inc.:
1,900,000 6.50% due 2/01/2014 1,610,250
2,575,000 7.75% due 8/15/2016 2,465,563
1,050,000 6.625% due 3/15/2018 845,250
Travelport LLC:
135,000 9.875% due 9/01/2014 136,013
530,000 10.246% due 9/01/2014 (b) 530,000
6 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
Schedule of Investments (continued)
Face
Amount Corporate Bonds Value
=============================================================================================
Hotels, Restaurants & Leisure (concluded)
$3,270,000 Tropicana Entertainment, LLC, 9.625%
due 12/15/2014 (e) $ 2,419,800
2,850,000 Universal City Florida Holding Co. I, 10.106%
due 5/01/2010 (b) 2,878,500
1,975,000 Wynn Las Vegas LLC, 6.625% due 12/01/2014 1,910,813
-------------
40,768,670
=============================================================================================
Household Durables -- 1.3%
2,675,000 American Greetings Corp., 7.375% due 6/01/2016 2,527,875
2,195,000 Jarden Corp., 7.50% due 5/01/2017 2,052,325
2,550,000 Standard-Pacific Corp., 9.25% due 4/15/2012 1,861,500
-------------
6,441,700
=============================================================================================
Household Products -- 0.2%
1,150,000 Church & Dwight Co., Inc., 6% due 12/15/2012 1,072,375
=============================================================================================
IT Services -- 1.5%
SunGard Data Systems, Inc.:
3,450,000 9.125% due 8/15/2013 3,562,125
3,415,000 10.25% due 8/15/2015 3,517,450
-------------
7,079,575
=============================================================================================
Independent Power Producers & Energy Traders -- 1.0%
100,000 The AES Corp., 8.75% due 5/15/2013 (e) 104,000
NRG Energy, Inc.:
2,550,000 7.25% due 2/01/2014 2,524,500
2,350,000 7.375% due 2/01/2016 2,320,625
-------------
4,949,125
=============================================================================================
Insurance -- 0.2%
1,070,000 USI Holdings Corp., 9.433% due 11/15/2014 (b)(e) 995,100
=============================================================================================
Internet Software & Services -- 0.1%
670,000 Impress Holdings B.V., 8.485%
due 9/15/2013 (b)(e) 670,522
=============================================================================================
Leisure Equipment & Products -- 0.6%
3,150,000 Quiksilver, Inc., 6.875% due 4/15/2015 2,913,750
=============================================================================================
Machinery -- 1.3%
2,050,000 AGY Holding Corp., 11% due 11/15/2014 (e) 2,080,750
865,000 Accuride Corp., 8.50% due 2/01/2015 800,125
RBS Global, Inc.:
740,000 9.50% due 8/01/2014 747,400
1,585,000 11.75% due 8/01/2016 1,640,475
885,000 8.875% due 9/01/2016 865,088
-------------
6,133,838
=============================================================================================
Marine -- 1.0%
2,400,000 Navios Maritime Holdings, Inc., 9.50%
due 12/15/2014 2,451,000
2,250,000 Teekay Shipping Corp., 8.875% due 7/15/2011 2,317,500
-------------
4,768,500
=============================================================================================
Media -- 20.1%
2,189,000 Affinion Group, Inc., 11.50% due 10/15/2015 2,189,000
2,800,000 Allbritton Communications Co., 7.75%
due 12/15/2012 2,737,000
375,000 American Media Operations, Inc. Series B,
10.25% due 5/01/2009 330,000
1,850,000 Barrington Broadcasting Group LLC, 10.50%
due 8/15/2014 (e) 1,859,250
800,000 Bonten Media Acquisition Co., 9%
due 6/01/2015 (e)(g) 677,217
540,000 CBD Media Holdings LLC, 9.25% due 7/15/2012 545,400
4,125,000 CBD Media, Inc., 8.625% due 6/01/2011 4,109,531
7,035,000 CCH I, LLC, 11% due 10/01/2015 6,884,775
3,175,000 CMP Susquehanna Corp., 9.875% due 5/15/2014 2,936,875
3,750,000 CSC Holdings, Inc. Series B, 7.625% due 4/01/2011 3,693,750
775,000 Cablevision Systems Corp. Series B, 8%
due 4/15/2012 742,062
2,525,000 Cadmus Communications Corp., 8.375%
due 6/15/2014 2,398,750
610,000 CanWest Media, Inc., 8% due 9/15/2012 593,988
5,470,000 Charter Communications Holdings II LLC,
10.25% due 9/15/2010 5,524,700
2,256,000 Dex Media West LLC, 9.875% due 8/15/2013 2,380,080
3,090,000 Echostar DBS Corp., 7.125% due 2/01/2016 3,020,475
Harland Clarke Holdings Corp.:
660,000 9.50% due 5/15/2015 590,700
550,000 10.308% due 5/15/2015 (b) 492,250
3,190,000 Idearc, Inc., 8% due 11/15/2016 3,150,125
Intelsat Bermuda Ltd.:
355,000 11.409% due 6/15/2013 (b) 364,762
1,065,000 8.886% due 1/15/2015 (b) 1,072,987
1,100,000 11.25% due 6/15/2016 1,150,875
1,770,000 Intelsat Corp., 9% due 6/15/2016 1,805,400
3,475,000 Intelsat Subsidiary Holding Co. Ltd., 8.625%
due 1/15/2015 3,496,719
1,748,000 Liberty Media Corp., 0.75% due 3/30/2023 (a) 1,977,425
3,900,000 Mediacom LLC, 9.50% due 1/15/2013 3,900,000
440,000 Network Communications, Inc., 10.75%
due 12/01/2013 440,000
630,000 Nexstar Finance, Inc., 7% due 1/15/2014 595,350
Nielsen Finance LLC:
4,775,000 10% due 8/01/2014 4,894,375
1,680,000 9.919% due 8/01/2016 (h) 1,121,400
3,459,000 PanAmSat Corp., 9% due 8/15/2014 3,519,532
4,750,000 Paxson Communications Corp., 8.61%
due 1/15/2012 (b)(e) 4,684,688
3,150,000 Quebecor Media, Inc., 7.75% due 3/15/2016 2,996,438
RH Donnelley Corp.:
2,275,000 Series A-2, 6.875% due 1/15/2013 2,144,188
1,215,000 Series A-3, 8.875% due 1/15/2016 1,245,375
2,010,000 Rainbow National Services LLC, 10.375%
due 9/01/2014 (e) 2,188,388
4,075,000 Salem Communications Corp., 7.75%
due 12/15/2010 4,044,438
1,127,000 Sinclair Broadcast Group, Inc., 8% due 3/15/2012 1,138,270
875,000 Sirius Satellite Radio, Inc., 9.625% due 8/01/2013 826,875
6,240,000 TL Acquisitions, Inc., 10.50% due 1/15/2015 (e) 5,881,200
1,765,000 Umbrella Acquisition, 9.75% due 3/15/2015 (e)(g) 1,681,163
1,915,000 Young Broadcasting, Inc., 10% due 3/01/2011 1,723,500
-------------
97,749,276
=============================================================================================
Metals & Mining -- 5.1%
3,625,000 Aleris International, Inc., 9% due 12/15/2014 (g) 3,380,548
320,000 Blaze Recycling & Metals LLC, 10.875%
due 7/15/2012 (e) 316,000
3,175,000 Chaparral Steel Co., 10% due 7/15/2013 3,603,625
FMG Finance Pty Ltd. (e):
850,000 10% due 9/01/2013 909,500
1,230,000 10.625% due 9/01/2016 1,408,350
3,250,000 Foundation PA Coal Co., 7.25% due 8/01/2014 3,111,875
Freeport-McMoRan Copper & Gold, Inc.:
1,820,000 8.564% due 4/01/2015 (b) 1,874,600
5,350,000 8.375% due 4/01/2017 5,697,750
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 7
Schedule of Investments (continued)
Face
Amount Corporate Bonds Value
=============================================================================================
Metals & Mining (concluded)
$1,626,000 Indalex Holding Corp. Series B, 11.50%
due 2/01/2014 $ 1,524,375
3,175,000 Novelis, Inc., 7.25% due 2/15/2015 3,079,750
-------------
24,906,373
=============================================================================================
Multi-Utilities -- 0.6%
2,124,000 CenterPoint Energy, Inc. Series B, 3.75%
due 5/15/2023 (a) 3,103,695
=============================================================================================
Multiline Retail -- 0.3%
190,000 Dollar General Corp., 10.625% due 7/15/2015 (e) 171,000
1,375,000 Neiman Marcus Group, Inc., 9% due 10/15/2015 (g) 1,433,404
-------------
1,604,404
=============================================================================================
Oil, Gas & Consumable Fuels -- 4.3%
800,000 Berry Petroleum Co., 8.25% due 11/01/2016 788,000
2,500,000 Chaparral Energy, Inc., 8.50% due 12/01/2015 2,237,500
2,715,000 Compton Petroleum Finance Corp., 7.625%
due 12/01/2013 2,579,250
1,750,000 Copano Energy LLC, 8.125% due 3/01/2016 1,758,750
4,450,000 EXCO Resources, Inc., 7.25% due 1/15/2011 4,483,375
3,150,000 Encore Acquisition Co., 6.25% due 4/15/2014 2,874,375
1,920,000 Forest Oil Corp., 7.25% due 6/15/2019 (e) 1,848,000
600,000 KCS Energy, Inc., 7.125% due 4/01/2012 576,000
2,710,000 OPTI Canada, Inc., 8.25% due 12/15/2014 (e) 2,743,875
1,220,000 Sabine Pass LNG LP, 7.50% due 11/30/2016 1,186,450
-------------
21,075,575
=============================================================================================
Paper & Forest Products -- 5.5%
Abitibi-Consolidated, Inc.:
3,200,000 8.86% due 6/15/2011 (b) 2,752,000
970,000 6% due 6/20/2013 717,800
310,000 8.85% due 8/01/2030 235,600
1,575,000 Ainsworth Lumber Co. Ltd., 9.11%
due 10/01/2010 (b) 1,212,750
3,175,000 Boise Cascade LLC, 8.235% due 10/15/2012 (b) 3,143,250
1,240,000 Bowater Canada Finance Corp., 7.95%
due 11/15/2011 1,054,000
4,475,000 Bowater, Inc., 8.36% due 3/15/2010 (b) 4,027,500
5,075,000 Domtar, Inc., 7.125% due 8/15/2015 4,719,750
NewPage Corp.:
2,400,000 11.606% due 5/01/2012 (b) 2,544,000
2,830,000 12% due 5/01/2013 2,957,350
1,415,000 Norske Skog Canada Ltd. Series D, 8.625%
due 6/15/2011 1,245,200
Verso Paper Holdings LLC Series B:
1,525,000 9.125% due 8/01/2014 1,525,000
810,000 11.375% due 8/01/2016 826,200
-------------
26,960,400
=============================================================================================
Personal Products -- 0.4%
2,175,000 Chattem, Inc., 7% due 3/01/2014 2,098,875
=============================================================================================
Pharmaceuticals -- 0.9%
3,175,000 Elan Finance Plc, 9.558% due 11/15/2011 (b) 3,111,500
1,500,000 PTS Acquisition Corp., 9.50% due 4/15/2015 (e)(g) 1,357,500
-------------
4,469,000
=============================================================================================
Real Estate Investment Trusts (REITs) -- 0.4%
1,875,000 FelCor Lodging LP, 8.50% due 6/01/2011 1,964,062
=============================================================================================
Real Estate Management & Development -- 2.7%
4,750,000 Forest City Enterprises, Inc., 7.625%
due 6/01/2015 4,465,000
Realogy Corp. (e):
2,400,000 10.50% due 4/15/2014 2,022,000
3,800,000 11% due 4/15/2014 (g) 3,078,000
4,620,000 12.375% due 4/15/2015 3,401,475
-------------
12,966,475
=============================================================================================
Road & Rail -- 1.6%
Avis Budget Car Rental LLC:
950,000 7.625% due 5/15/2014 926,250
4,450,000 8.058% due 5/15/2014 (b) 4,316,500
590,000 Britannia Bulk Plc, 11% due 12/01/2011 584,100
3,235,000 St. Acquisition Corp., 12.50% due 5/15/2017 (e) 2,191,713
-------------
8,018,563
=============================================================================================
Semiconductors & Semiconductor Equipment -- 2.3%
Amkor Technology, Inc.:
450,000 7.75% due 5/15/2013 417,375
2,165,000 9.25% due 6/01/2016 2,100,050
7,930,000 Freescale Semiconductor, Inc., 9.125%
due 12/15/2014 (g) 7,097,350
1,920,000 Spansion, Inc., 8.746% due 6/01/2013 (b)(e) 1,824,000
-------------
11,438,775
=============================================================================================
Software -- 0.2%
1,009,227 BMS Holdings, Inc., 12.40%
due 2/15/2012 (b)(e)(g) 941,843
=============================================================================================
Specialty Retail -- 4.9%
560,000 Asbury Automotive Group, Inc., 7.625%
due 3/15/2017 (e) 515,200
AutoNation, Inc.:
4,575,000 7.36% due 4/15/2013 (b) 4,300,500
1,150,000 7% due 4/15/2014 1,082,437
490,000 Beverages & More, Inc., 9.25% due 3/01/2012 (e) 477,750
1,560,000 Buffets, Inc., 12.50% due 11/01/2014 1,201,200
Claire's Stores, Inc. (e):
740,000 9.25% due 6/01/2015 641,950
1,280,000 9.625% due 6/01/2015 (g) 1,000,863
1,025,000 10.50% due 6/01/2017 758,500
General Nutrition Centers, Inc. (e)(g):
2,800,000 9.85% due 3/15/2014 2,531,093
2,260,000 10.75% due 3/15/2015 2,022,161
1,440,000 Group 1 Automotive, Inc., 2.25%
due 6/15/2036 (a)(m) 1,107,000
Michaels Stores, Inc. (e):
2,650,000 10% due 11/01/2014 2,656,625
3,350,000 11.375% due 11/01/2016 3,257,875
825,000 Sensata Technologies BV, 8% due 5/01/2014 775,500
1,805,000 United Auto Group, Inc., 7.75% due 12/15/2016 1,723,775
-------------
24,052,429
=============================================================================================
Textiles, Apparel & Luxury Goods -- 0.7%
3,200,000 Levi Strauss & Co., 8.875% due 4/01/2016 3,216,000
=============================================================================================
Trading Companies & Distributors -- 0.4%
2,000,000 United Rentals North America, Inc., 7.75%
due 11/15/2013 2,060,000
=============================================================================================
8 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
Schedule of Investments (continued)
Face
Amount Corporate Bonds Value
=============================================================================================
Wireless Telecommunication Services -- 6.7%
$2,675,000 Centennial Cellular Operating Co. LLC,
10.125% due 6/15/2013 $ 2,802,062
2,170,000 Centennial Communications Corp., 11.11%
due 1/01/2013 (b) 2,224,250
Cricket Communications, Inc.:
2,445,000 9.375% due 11/01/2014 2,396,100
2,500,000 9.375% due 11/01/2014 (e) 2,450,000
Digicel Group Ltd. (e):
1,340,000 8.875% due 1/15/2015 1,224,492
3,424,000 9.125% due 1/15/2015 (g) 3,128,851
1,900,000 Dobson Communications Corp., 9.61%
due 10/15/2012 (b) 1,938,000
990,000 iPCS, Inc., 7.481% due 5/01/2013 (b)(e) 955,350
6,610,000 MetroPCS Wireless, Inc., 9.25% due 11/01/2014 (e) 6,510,850
3,800,000 Nordic Telephone Co. Holdings ApS, 8.875%
due 5/01/2016 (e) 3,933,000
Orascom Telecom Finance SCA:
320,000 7.875% due 2/08/2014 292,000
555,000 7.875% due 2/08/2014 (e) 506,437
4,075,000 Rural Cellular Corp., 8.25% due 3/15/2012 4,238,000
-------------
32,599,392
---------------------------------------------------------------------------------------------
Total Corporate Bonds
(Cost -- $591,549,608) -- 117.1% 570,641,948
=============================================================================================
Floating Rate Loan Interests (k)
=============================================================================================
Chemicals -- 0.9%
4,870,000 Wellman, Inc. Second Lien Term Loan, 12.106%
due 2/10/2010 4,236,900
=============================================================================================
Containers & Packaging -- 0.3%
1,350,000 Berry Plastics Corp. Term Loan B, 11.61%
due 6/15/2014 1,161,000
=============================================================================================
Health Care Providers & Services -- 0.4%
2,378,722 Rotech Healthcare, Inc. Term Loan B, 11.36%
due 9/26/2011 2,045,701
=============================================================================================
Hotels, Restaurants & Leisure -- 1.0%
4,975,308 Travelport, Inc. Term Loan, 12.36% due 3/22/2012 4,668,495
=============================================================================================
Household Products -- 0.2%
Spectrum Brands, Inc.:
39,871 Letter of Credit, 5.17% due 4/15/2013 (n) 38,642
806,593 Term Loan B-1, 9.34% - 9.53%
due 4/15/2013 781,723
143,536 Term Loan B-2, 9.565% due 4/15/2013 134,924
-------------
955,289
=============================================================================================
Machinery -- 0.1%
577,479 Rexnord Corp. Term Loan,
11.61% due 3/02/2013 (g) 545,718
=============================================================================================
Media -- 0.1%
650,000 Affinion Group, Inc. Term Loan, 11.678%
due 3/01/2012 600,166
=============================================================================================
Oil, Gas & Consumable Fuels -- 0.4%
SandRidge Energy, Inc.:
1,100,000 Term Loan, 8.625% due 4/01/2014 1,075,250
1,000,000 Term Loan B, 8.985% due 3/01/2014 987,500
-------------
2,062,750
=============================================================================================
Paper & Forest Products -- 0.6%
2,985,000 Verso Paper Holdings LLC Term Loan B,
11.606% due 2/01/2013 2,970,075
=============================================================================================
Specialty Retail -- 0.2%
1,150,000 Michaels Stores, Inc. Term Loan B, 9.709%
due 10/31/2013 1,081,411
---------------------------------------------------------------------------------------------
Total Floating Rate Loan Interests
(Cost -- $21,611,743) -- 4.2% 20,327,505
=============================================================================================
Shares
Held Common Stocks
=============================================================================================
Communications Equipment -- 1.1%
134,482 Loral Space & Communications Ltd. (d) 5,390,039
=============================================================================================
Electrical Equipment -- 0.3%
116,910 Medis Technologies Ltd. (d) 1,233,401
=============================================================================================
Paper & Forest Products -- 0.0%
78,039 Western Forest Products, Inc. (d) 167,754
=============================================================================================
Semiconductors & Semiconductor Equipment -- 0.8%
154,040 Cypress Semiconductor Corp. (d) 3,857,162
---------------------------------------------------------------------------------------------
Total Common Stocks
(Cost -- $9,803,789) -- 2.2% 10,648,356
=============================================================================================
Preferred Stocks
=============================================================================================
Communications Equipment -- 0.4%
10,938 Loral Spacecom Corp. Series A, 12% (g) 2,231,482
=============================================================================================
Oil, Gas & Consumable Fuels -- 0.8%
67 EXCO Resources, Inc., 7% (a) 763,800
279 EXCO Resources, Inc., 11% 3,180,600
-------------
3,944,400
---------------------------------------------------------------------------------------------
Total Preferred Stocks
(Cost -- $5,626,134) -- 1.2% 6,175,882
=============================================================================================
Warrants (i)
=============================================================================================
Health Care Providers & Services -- 0.0%
54,577 HealthSouth Corp. (expires 1/16/2014) 43,662
---------------------------------------------------------------------------------------------
Total Warrants
(Cost -- $0) -- 0.0% 43,662
=============================================================================================
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 9
Schedule of Investments (concluded)
Beneficial
Interest Other Interests (f) Value
=============================================================================================
Media -- 0.0%
$1,300,000 Adelphia Escrow $ 0
1,630,376 Adelphia Recovery Trust 163
---------------------------------------------------------------------------------------------
Total Other Interests
(Cost -- $5,330) -- 0.0% 163
=============================================================================================
Beneficial
Interest Short-Term Securities Value
=============================================================================================
2,817,740 BlackRock Liquidity Series, LLC Cash Sweep
Series, 5.33% (c)(j) 2,817,740
---------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $2,817,740) -- 0.6% 2,817,740
=============================================================================================
Total Investments
(Cost -- $631,414,344*) -- 125.3% 610,655,256
Liabilities in Excess of Other Assets -- (25.3%) (123,404,511)
-------------
Net Assets -- 100.0% $ 487,250,745
=============
* The cost and unrealized appreciation (depreciation) of investments as of
August 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ............................................... $ 632,192,736
=============
Gross unrealized appreciation ................................ $ 8,546,117
Gross unrealized depreciation ................................ (30,083,597)
-------------
Net unrealized depreciation .................................. $ (21,537,480)
=============
(a) Convertible security.
(b) Floating rate security.
(c) 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:
--------------------------------------------------------------------------------
Net Interest
Affiliate Activity Income
--------------------------------------------------------------------------------
BlackRock Liquidity Series, LLC Cash Sweep Series $2,750,299 $1,014,797
--------------------------------------------------------------------------------
(d) Non-income producing security.
(e) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(f) Other interests represent beneficial interest in liquidation trusts and
other reorganization entities and are non-income producing.
(g) Represents a pay-in-kind security which may pay interest/dividends in
additional face/shares.
(h) Represents a step bond; the interest rate shown reflects the effective
yield at the time of purchase.
(i) 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.
(j) Represents the current yield as of August 31, 2007.
(k) Floating rate loan interests in which the Fund invests generally pay
interest at rates that are periodically determined by reference to a base
lending rate plus a premium. The base lending rates are generally (i) the
lending rate offered by one or more major European banks, such as LIBOR
(London InterBank Offered Rate), (ii) the prime rate offered by one or
more major U.S. banks or (iii) the certificate of deposit rate.
(l) Subject to principal paydowns.
(m) Represents a step bond.
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. Industries are shown as a percent of net assets. These industry
classifications are unaudited.
o Swaps outstanding as of August 31, 2007 were as follows:
--------------------------------------------------------------------------------
Notional Unrealized
Amount Depreciation
--------------------------------------------------------------------------------
Sold credit default protection on Ford Motor Co.
and receive 3.80%
Broker, JPMorgan Chase
Expires March 2010 $5,000,000 $(337,445)
Sold credit default protection on Ford Motor Co.
and receive 3.80%
Broker, UBS Warburg
Expires March 2010 $1,590,000 (107,308)
Sold credit default protection on Ford Motor Co.
and receive 5%
Broker, Goldman Sachs
Expires June 2010 $6,330,000 (291,262)
--------------------------------------------------------------------------------
Total $(736,015)
==========
See Notes to Financial Statements.
10 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
Statement of Assets, Liabilities and Capital
As of August 31, 2007
===================================================================================================================================
Assets
-----------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value (identified cost -- $628,596,604) .. $ 607,837,516
Investments in affiliated securities, at value (identified cost -- $2,817,740) ...... 2,817,740
Cash ................................................................................ 43,769
Receivables:
Interest ....................................................................... $ 13,135,388
Securities sold ................................................................ 1,921,503
Swaps .......................................................................... 119,683
Dividends ...................................................................... 21,189 15,197,763
-------------
Prepaid expenses .................................................................... 7,481
-------------
Total assets ........................................................................ 625,904,269
-------------
===================================================================================================================================
Liabilities
-----------------------------------------------------------------------------------------------------------------------------------
Loans ............................................................................... 135,900,000
Unrealized depreciation on swaps .................................................... 736,015
Payables:
Securities purchased ........................................................... 1,083,875
Investment adviser ............................................................. 412,026
Interest on loans .............................................................. 215,769
Dividends to shareholders ...................................................... 158,455
Other affiliates ............................................................... 3,826 1,873,951
-------------
Accrued expenses .................................................................... 143,558
-------------
Total liabilities ................................................................... 138,653,524
-------------
===================================================================================================================================
Net Assets
-----------------------------------------------------------------------------------------------------------------------------------
Net assets .......................................................................... $ 487,250,745
=============
===================================================================================================================================
Capital
-----------------------------------------------------------------------------------------------------------------------------------
Common Stock, $.10 par value, 200,000,000 shares authorized ......................... $ 3,528,644
Paid-in capital in excess of par .................................................... 501,493,556
Undistributed investment income -- net .............................................. $ 6,661,683
Accumulated realized capital losses -- net .......................................... (2,938,035)
Unrealized depreciation -- net ...................................................... (21,495,103)
-------------
Total accumulated losses -- net ..................................................... (17,771,455)
-------------
Total capital -- Equivalent to $13.81 per share based on 35,286,436 shares of
capital stock outstanding (market price -- $12.15) ............................... $ 487,250,745
=============
See Notes to Financial Statements.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 11
Statement of Operations
For the Year Ended August 31, 2007
===================================================================================================================================
Investment Income
-----------------------------------------------------------------------------------------------------------------------------------
Interest (including $1,014,797 from affiliates) ..................................... $ 58,360,765
Dividends ........................................................................... 321,337
Other ............................................................................... 64,970
-------------
Total income ........................................................................ 58,747,072
-------------
===================================================================================================================================
Expenses
-----------------------------------------------------------------------------------------------------------------------------------
Loan interest expense ............................................................... $ 11,491,186
Investment advisory fees ............................................................ 5,046,020
Borrowing costs ..................................................................... 264,722
Accounting services ................................................................. 156,459
Professional fees ................................................................... 75,583
Transfer agent fees ................................................................. 57,263
Printing and shareholder reports .................................................... 55,194
Pricing services .................................................................... 35,463
Custodian fees ...................................................................... 28,436
Directors' fees and expenses ........................................................ 24,609
Listing fees ........................................................................ 12,311
Other ............................................................................... 37,675
-------------
Total expenses ...................................................................... 17,284,921
-------------
Investment income -- net ............................................................ 41,462,151
-------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
-----------------------------------------------------------------------------------------------------------------------------------
Realized gain on:
Investments -- net ............................................................. 5,037,002
Swaps -- net ................................................................... 507,122 5,544,124
-------------
Change in unrealized appreciation/depreciation on:
Investments -- net ............................................................. (18,395,735)
Swaps -- net ................................................................... (817,067) (19,212,802)
------------------------------
Total realized and unrealized loss -- net ........................................... (13,668,678)
-------------
Net Increase in Net Assets Resulting from Operations ................................ $ 27,793,473
=============
See Notes to Financial Statements.
12 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
Statements of Changes in Net Assets
For the Year Ended
August 31,
------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
-----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ............................................................ $ 41,462,151 $ 40,958,515
Realized gain (loss) -- net ......................................................... 5,544,124 (6,357,303)
Change in unrealized appreciation/depreciation -- net ............................... (19,212,802) (10,848,892)
------------------------------
Net increase in net assets resulting from operations ................................ 27,793,473 23,752,320
------------------------------
===================================================================================================================================
Dividends & Distributions to Shareholders
-----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ............................................................ (38,638,647) (41,283,214)
Realized gain -- net ................................................................ -- (16,468,850)
------------------------------
Net decrease in net assets resulting from dividends and distributions to
shareholders ...................................................................... (38,638,647) (57,752,064)
------------------------------
===================================================================================================================================
Capital Stock Transactions
-----------------------------------------------------------------------------------------------------------------------------------
Value of shares issued to Common Stock shareholders in reinvestment of dividends
and distributions ................................................................. -- 64,908
------------------------------
Net increase in net assets derived from capital stock transactions .................. -- 64,908
------------------------------
===================================================================================================================================
Net Assets
-----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets ........................................................ (10,845,174) (33,934,836)
Beginning of year ................................................................... 498,095,919 532,030,755
------------------------------
End of year* ........................................................................ $ 487,250,745 $ 498,095,919
==============================
* Undistributed investment income -- net ......................................... $ 6,661,683 $ 3,055,699
==============================
See Notes to Financial Statements.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 13
Statement of Cash Flows
For the Year Ended August 31, 2007
==================================================================================================================
Cash Provided by Operating Activities
------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations ................................ $ 27,793,473
Adjustments to reconcile net increase in net assets resulting from operations to
net cash provided by operating activities:
Decrease in receivables and prepaid expenses ................................... 227,746
Increase in accrued expenses and other liabilities ............................. 101,855
Realized and unrealized loss -- net ............................................ 14,427,520
Amortization of premium and discount ........................................... 247,629
Paid-in-kind income ............................................................ (965,034)
Proceeds from sales and paydowns of long-term securities ............................ 430,413,366
Purchases of long-term securities ................................................... (350,574,424)
Purchases of short-term investments -- net .......................................... (2,747,452)
-------------
Cash provided by operating activities ............................................... 118,924,679
-------------
==================================================================================================================
Cash Used for Financing Activities
------------------------------------------------------------------------------------------------------------------
Cash receipts from borrowings ....................................................... 21,200,000
Cash payments on borrowings ......................................................... (101,500,000)
Dividends paid to shareholders ...................................................... (38,680,910)
-------------
Cash used for financing activities .................................................. (118,980,910)
-------------
==================================================================================================================
Cash
------------------------------------------------------------------------------------------------------------------
Net decrease in cash ................................................................ (56,231)
Cash at beginning of year ........................................................... 100,000
-------------
Cash at end of year ................................................................. $ 43,769
=============
==================================================================================================================
Cash Flow Information
------------------------------------------------------------------------------------------------------------------
Cash paid for interest .............................................................. $ 11,507,102
=============
See Notes to Financial Statements.
14 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
For the Year Ended For the Period
August 31, May 30, 2003+
The following per share data and ratios have been derived ------------------------------------------------- to August 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
====================================================================================================================================
Per Share Operating Performance
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................. $ 14.12 $ 15.08 $ 15.71 $ 14.39 $ 14.33
-----------------------------------------------------------------
Investment income -- net ............................. 1.18*** 1.16*** 1.37*** 1.50 .30
Realized and unrealized gain (loss) -- net ........... (.39) (.49) .19 1.27 (.03)
-----------------------------------------------------------------
Total from investment operations ..................... .79 .67 1.56 2.77 .27
-----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .......................... (1.10) (1.17) (1.49) (1.43) (.20)
Realized gain -- net .............................. -- (.46) (.70) (.02) --
-----------------------------------------------------------------
Total dividends and distributions .................... (1.10) (1.63) (2.19) (1.45) (.20)
-----------------------------------------------------------------
Offering costs resulting from the issuance of
Common Stock ...................................... -- -- -- -- (.01)
-----------------------------------------------------------------
Net asset value, end of period ....................... $ 13.81 $ 14.12 $ 15.08 $ 15.71 $ 14.39
-----------------------------------------------------------------
Market price per share, end of period ................ $ 12.15 $ 12.48 $ 14.32 $ 14.52 $ 13.61
=================================================================
====================================================================================================================================
Total Investment Return**
------------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ................... 6.29% 6.29% 11.28% 20.70% 1.91%@
=================================================================
Based on market price per share ...................... 5.80% (1.07%) 14.34% 17.95% (7.92%)@
=================================================================
====================================================================================================================================
Ratios to Average Net Assets
------------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and excluding interest expense 1.12% 1.11% 1.11% 1.09% .45%*
=================================================================
Expenses, net of waiver .............................. 3.35% 2.89% 2.09% 1.56% .52%*
=================================================================
Expenses ............................................. 3.35% 2.89% 2.09% 1.57% .91%*
=================================================================
Investment income -- net ............................. 8.03% 8.11% 8.91% 9.76% 8.22%*
=================================================================
====================================================================================================================================
Leverage
------------------------------------------------------------------------------------------------------------------------------------
Amount of borrowings outstanding, end of
period (in thousands) ............................. $135,900 $216,200 $185,200 $207,100 $113,300
=================================================================
Average amount of borrowings outstanding during the
period (in thousands) ............................. $202,705 $184,070 $188,044 $178,605 $ 24,585
=================================================================
Average amount of borrowings outstanding per share
during the period*** .............................. $ 5.74 $ 5.22 $ 5.33 $ 5.06 $ .71
=================================================================
====================================================================================================================================
Supplemental Data
------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............. $487,251 $498,096 $532,031 $554,390 $507,588
=================================================================
Portfolio turnover ................................... 51% 62% 48% 81% 60%
=================================================================
* Annualized.
** Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
*** Based on average shares outstanding.
+ Commencement of operations.
@ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 15
Notes to Financial Statements
1. Significant Accounting Policies:
BlackRock Corporate High Yield Fund VI, Inc. (the "Fund") is registered under
the Investment Company Act of 1940, as amended, as a diversified, closed-end
management investment company. The Fund's financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may require
the use of management accruals and estimates. Actual results may differ from
these estimates. The Fund determines and makes available for publication the net
asset value of its Common Stock on a daily basis. The Fund's Common Stock shares
are listed on the New York Stock Exchange ("NYSE") under the symbol HYT. The
following is a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments -- Debt securities are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid price
in the OTC market or on the basis of values obtained by a pricing service. As of
October 2, 2006, floating rate loan interests are valued at the mean between the
last available bid prices from one or more dealers as obtained from Loan Pricing
Corporation. Previously, floating rate loan interests were valued at the mean
between the last available bid and asked prices as obtained from the same
pricing source. This change had no significant effect on the valuation of these
loans. Pricing services use valuation matrixes that incorporate both
dealer-supplied valuations and valuation models. The procedures of the pricing
service and its valuations are reviewed by the officers of the Fund under the
general direction of the Board of Directors. Such valuations and procedures will
be reviewed periodically by the Board of Directors of the Fund. Financial
futures contracts and options thereon, which are traded on exchanges, are valued
at their closing prices as of the close of such exchanges. Options written or
purchased are valued at the last sale price in the case of exchange-traded
options. Options traded in the OTC market are valued at the last asked price
(options written) or the last bid price (options purchased). Swap agreements are
valued based upon quoted fair valuations received daily by the Fund from a
pricing service or counterparty. Valuation of short-term investment vehicles is
generally based on the net asset value of the underlying investment vehicle or
amortized cost. Repurchase agreements are valued at cost plus accrued interest.
Investments in open-end investment companies are valued at their net asset value
each business day. Securities and other assets for which market quotations are
not readily available are valued at fair value as determined in good faith by or
under the direction of the Board of Directors of the Fund.
Equity securities that are held by the Fund, which are traded on stock exchanges
or the NASDAQ Global Market, are valued at the last sale price or official close
price on the exchange, as of the close of business on the day the securities are
being valued or, lacking any sales, at the last available bid price for long
positions, and at the last available asked price for short positions. In cases
where equity securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market by or under the
authority of the Board of Directors of the Fund. Long positions traded in the
OTC market, NASDAQ Capital Market or Bulletin Board are valued at the last
available bid price obtained from one or more dealers or pricing services
approved by the Board of Directors of the Fund. Short positions traded in the
OTC market are valued at the last available asked price. Portfolio securities
that are traded both in the OTC market and on a stock exchange are valued
according to the broadest and most representative market.
Generally, trading in foreign securities, as well as U.S. government securities,
money market instruments and certain fixed income securities, is substantially
completed each day at various times prior to the close of business on the NYSE.
The values of such securities used in computing the net asset value of the
Fund's shares are determined as of such times. Foreign currency exchange rates
will generally be determined as of the close of business on the NYSE.
Occasionally, events affecting the values of such securities and such exchange
rates may occur between the times at which they are determined and the close of
business on the NYSE that may not be reflected in the computation of the Fund's
net asset value. If events (for example, a company announcement, market
volatility or a natural disaster) occur during such periods that are expected to
materially affect the value of such securities, those securities will be valued
at their fair value as determined in good faith by the Fund's Board of Directors
or by BlackRock Advisors, LLC (the "Manager"), an indirect, wholly owned
subsidiary of BlackRock, Inc., using a pricing service and/or procedures
approved by the Fund's Board of Directors.
(b) Foreign currency transactions -- Transactions denominated in foreign
currencies are recorded at the exchange rate prevailing when recognized. Assets
and liabilities denominated in foreign currencies are valued at the exchange
rate at the end of the period. Foreign currency transactions are the result of
settling (realized) or valuing (unrealized) assets or liabilities expressed in
foreign currencies into U.S. dollars. Realized and unrealized gains or losses
from investments include the effects of foreign exchange rates on investments.
The Fund invests in foreign securities, which may involve a
16 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
Notes to Financial Statements (continued)
number of risk factors and special considerations not present with investments
in securities of U.S. corporations.
(c) Derivative financial instruments -- The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise due to changes in the value of the contract due to an
unfavorable change in the price of the underlying security or index, or if the
counterparty does not perform under the contract. The counterparty for certain
instruments may pledge cash or securities as collateral.
o Options -- The Fund may write and purchase call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund
is reflected as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market
value of the option written. When a security is purchased or sold through
an exercise of an option, the related premium paid (or received) is added
to (or deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option expires
(or the Fund enters into a closing transaction), the Fund realizes a gain
or loss on the option to the extent of the premiums received or paid (or
gain or loss to the extent the cost of the closing transaction exceeds the
premium paid or received).
Written and purchased options are non-income producing investments.
o Financial futures contracts -- The Fund may purchase or sell financial
futures contracts and options on such financial futures contracts.
Financial futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield.
Upon entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known
as variation margin and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
o Swaps -- The Fund may enter into swap agreements, which are OTC contracts
in which the Fund and a counterparty agree to make periodic net payments
on a specified notional amount. The net payments can be made for a set
period of time or may be triggered by a predetermined credit event. The
net periodic payments may be based on a fixed or variable interest rate;
the change in market value of a specified security, basket of securities,
or index; or the return generated by a security. These periodic payments
received or made by the Fund are recorded in the accompanying Statement of
Operations as realized gains or losses, respectively. Gains or losses are
realized upon termination of the swap agreements. Swaps are
marked-to-market daily and changes in value are recorded as unrealized
appreciation (depreciation). Risks include changes in the returns of the
underlying instruments, failure of the counterparties to perform under the
contracts' terms and the possible lack of liquidity with respect to the
swap agreements.
(d) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
(e) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis. The Fund amortizes all
premiums and discounts on debt securities.
(f) Dividends and distributions -- Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
(g) Securities lending -- The Fund may lend securities to financial institutions
that provide cash or securities issued or guaranteed by the U.S. government as
collateral, which will be maintained at all times in an amount equal to at least
100% of the current market value of the loaned securities. The market value of
the loaned securities is determined at the close of business of the Fund and any
additional required collateral is delivered to the Fund on the next business
day. Where the Fund receives securities as collateral for the loaned securities,
it collects a fee from the borrower. The Fund typically receives the income on
the loaned securities but does not receive the income on the collateral. Where
the Fund receives cash collateral, it may invest such collateral and retain the
amount earned on such investment, net of any amount rebated to the borrower.
Loans of securities are
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 17
Notes to Financial Statements (continued)
terminable at any time and the borrower, after notice, is required to return
borrowed securities within five business days. The Fund may pay reasonable
finder's, lending agent, administrative and custodial fees in connection with
its loans. In the event that the borrower defaults on its obligation to return
borrowed securities because of insolvency or for any other reason, the Fund
could experience delays and costs in gaining access to the collateral. The Fund
also could suffer a loss where the value of the collateral falls below the
market value of the borrowed securities, in the event of borrower default or in
the event of losses on investments made with cash collateral.
(h) Recent accounting pronouncements -- In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109."
FIN 48 prescribes the minimum recognition threshold a tax position must meet in
connection with accounting for uncertainties in income tax positions taken or
expected to be taken by an entity, including mutual funds, before being measured
and recognized in the financial statements. Adoption of FIN 48 is required for
the last net asset value calculation in the first required financial statement
reporting period for fiscal years beginning after December 15, 2006. The impact
on the Fund's financial statements, if any, is currently being assessed.
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS 157
and its impact on the Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is evaluating
the implications of FAS 159 and its impact on the Fund's financial statements,
if any, has not been determined.
(i) Reclassification -- U.S. generally accepted accounting principles require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. Accordingly, during the current
year, $782,480 has been reclassified between accumulated net realized capital
losses and undistributed net investment income as a result of permanent
differences attributable to amortization methods on fixed income securities and
swap agreements. This reclassification has no effect on net assets or net asset
values per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill
Lynch") combined Merrill Lynch's investment management business, Merrill Lynch
Investment Managers, L.P. ("MLIM"), and its affiliates, including Fund Asset
Management, L.P. ("FAM"), with BlackRock, Inc. to create a new independent
company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest
in the combined company and The PNC Financial Services Group, Inc., has
approximately a 34% economic and voting interest. The new company operates under
the BlackRock name and is governed by a board of directors with a majority of
independent members.
On August 15, 2006, shareholders of the Fund approved a new Investment Advisory
Agreement with BlackRock Advisors, Inc., which was reorganized into a limited
liability company and renamed BlackRock Advisors, LLC. The new Investment
Advisory Agreement between the Fund and the Manager became effective on
September 29, 2006. Prior to September 29, 2006, FAM was the Fund's manager. The
general partner of FAM is an indirect, wholly owned subsidiary of Merrill Lynch,
which is the limited partner.
The Manager is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operation of the Fund. For such services, the Fund
pays a monthly fee at an annual rate of .70% of the Fund's average daily net
assets plus the proceeds of any outstanding principal borrowed. In addition, the
Manager has entered into a sub-advisory agreement with BlackRock Financial
Management, Inc., an affiliate of the Manager, under which the Manager pays the
Sub-Adviser for services it provides a monthly
18 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
Notes to Financial Statements (concluded)
fee at an annual rate that is a percentage of the management fee paid by the
Fund to the Manager.
The Fund has received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to Merrill Lynch, Pierce,
Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, or its
affiliates. Pursuant to that order, the Fund has retained BlackRock Investment
Management, LLC ("BIM"), an affiliate of the Manager, as the securities lending
agent for a fee based on a share of the returns on investment of cash
collateral. Prior to September 29, 2006, BIM was organized as Merrill Lynch
Investment Managers, LLC ("MLIM, LLC"), an affiliate of FAM, and MLIM, LLC was
the securities lending agent. BIM may, on behalf of the Fund, invest cash
collateral received by the Fund for such loans, among other things, in a private
investment company managed by the Manager or in registered money market funds
advised by the Manager or its affiliates.
For the year ended August 31, 2007, the Fund reimbursed FAM and the Manager
$1,294, and $8,836, respectively, for certain accounting services.
Prior to September 29, 2006, certain officers and/or directors of the Fund were
officers and/or directors of FAM, Merrill Lynch, and/or MLIM, LLC.
Commencing September 29, 2006, certain officers and/or directors of the Fund are
officers and/or directors of BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales (including paydowns) of investments, excluding short-term
securities, for the year ended August 31, 2007 were $348,970,027 and
$429,589,070, respectively.
4. Capital Share Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock, par value
$.10 per share, all of which were initially classified as Common Stock. The
Board of Directors is authorized, however, to classify and reclassify any
unissued shares of capital stock without approval of the holders of Common
Stock.
Shares issued and outstanding during the year ended August 31, 2007 remained
constant. Shares issued and outstanding during the year ended August 31, 2006
increased by 4,455 as a result of dividend reinvestment.
5. Short-Term Borrowings:
On May 16, 2007, the Fund renewed its revolving credit and security agreement
funded by a commercial paper asset securitization program with Citicorp North
America, Inc. ("Citicorp") as Agent, certain secondary backstop lenders, and
certain asset securitization conduits as lenders (the "Lenders"). The agreement
was renewed for one year and has a maximum limit of $250,000,000. Under the
Citicorp program, the conduits will fund advances to the Fund through the
issuance of highly rated commercial paper. As security for its obligations to
the Lenders under the revolving securitization facility, the Fund has granted a
security interest in substantially all of its assets to and in favor of the
Lenders. The interest rate on the Fund's borrowings is based on the interest
rate carried by the commercial paper plus a program fee. The Fund pays
additional borrowing costs including a backstop commitment fee.
The weighted average annual interest rate was 5.67% and the average borrowing
was approximately $202,705,000 for the year ended August 31, 2007.
6. Distributions to Shareholders:
The Fund paid an ordinary income dividend in the amount of $.095000 per share on
September 28, 2007 to shareholders of record on September 14, 2007.
The tax character of distributions paid during the fiscal years ended August 31,
2007 and August 31, 2006 was as follows:
--------------------------------------------------------------------------------
8/31/2007 8/31/2006
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income ................................ $38,638,647 $44,754,941
Net long-term capital gains .................... -- 12,997,123
--------------------------
Total taxable distributions ...................... $38,638,647 $57,752,064
==========================
As of August 31, 2007, the components of accumulated losses on a tax basis were
as follows:
--------------------------------------------------------------------------------
Undistributed ordinary income -- net ........................ $ 7,371,709
Undistributed long-term capital gains -- net ................ --
------------
Total undistributed earnings -- net ......................... 7,371,709
Capital loss carryforward ................................... (2,869,669)*
Unrealized losses -- net .................................... (22,273,495)**
------------
Total accumulated losses -- net ............................. $(17,771,455)
============
* On August 31, 2007, the Fund had a net capital loss carryforward of
$2,869,669, of which $2,291,195 expires in 2014 and $578,474 expires in
2015. This amount will be available to offset like amounts of any future
taxable gains.
** The difference between book-basis and tax-basis net unrealized losses is
attributable primarily to the tax deferral of losses on wash sales and the
difference between book and tax amortization methods for premiums and
discounts on fixed income securities.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 19
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of BlackRock Corporate High Yield
Fund VI, Inc.:
We have audited the accompanying statement of assets, liabilities and capital,
including the schedule of investments, of BlackRock Corporate High Yield Fund
VI, Inc. (the "Fund") as of August 31, 2007, and the related statements of
operations and cash flows for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the respective periods then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of August 31, 2007, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
BlackRock Corporate High Yield Fund VI, Inc. as of August 31, 2007, the results
of its operations and its cash flows for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and its financial
highlights for each of the respective periods then ended, in conformity with
accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
October 26, 2007
Fund Certification (Unaudited)
In May 2007, the Fund filed its Chief Executive Officer Certification for the
prior year with the New York Stock Exchange pursuant to Section 303A.12(a) of
the New York Stock Exchange Corporate Governance Listing Standards. The Fund's
Chief Executive Officer and Chief Financial Officer Certifications pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002 were filed with the Fund's Form
N-CSR and are available on the Securities and Exchange Commission's Web site at
http://www.sec.gov.
Important Tax Information (Unaudited)
The following information is provided with respect to the net investment income
distributions paid monthly by BlackRock Corporate High Yield Fund VI, Inc. for
the fiscal year ended August 31, 2007:
--------------------------------------------------------------------------------
Interest-Related Dividends for Non-U.S. Residents*
--------------------------------------------------------------------------------
Month Paid: September 2006 ........................................ 84.58%
October 2006 .......................................... 86.63%
November 2006 - January 2007 .......................... 87.23%
February 2007 - August 2007 ........................... 86.33%
--------------------------------------------------------------------------------
* Represents the portion of the taxable ordinary income dividends eligible
for exemption from U.S. withholding tax for nonresident aliens and foreign
corporations.
20 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
Automatic Dividend Reinvestment Plan
How the Plan Works -- The Fund offers a Dividend Reinvestment Plan (the "Plan")
under which income and capital gains dividends paid by the Fund are
automatically reinvested in additional shares of Common Stock of the Fund. The
Plan is administered on behalf of the shareholders by Computershare Trust
Company, N.A. (the "Plan Agent"). Under the Plan, whenever the Fund declares a
dividend, participants in the Plan will receive the equivalent in shares of
Common Stock of the Fund. The Plan Agent will acquire the shares for the
participant's account either (i) through receipt of additional unissued but
authorized shares of the Fund ("newly issued shares") or (ii) by purchase of
outstanding shares of Common Stock on the open market on the New York Stock
Exchange or elsewhere. If, on the dividend payment date, the Fund's net asset
value per share is equal to or less than the market price per share plus
estimated brokerage commissions (a condition often referred to as a "market
premium"), the Plan Agent will invest the dividend amount in newly issued
shares. If the Fund's net asset value per share is greater than the market price
per share (a condition often referred to as a "market discount"), the Plan Agent
will invest the dividend amount by purchasing on the open market additional
shares. If the Plan Agent is unable to invest the full dividend amount in open
market purchases, or if the market discount shifts to a market premium during
the purchase period, the Plan Agent will invest any uninvested portion in newly
issued shares. The shares acquired are credited to each shareholder's account.
The amount credited is determined by dividing the dollar amount of the dividend
by either (i) when the shares are newly issued, the net asset value per share on
the date the shares are issued or (ii) when shares are purchased in the open
market, the average purchase price per share.
Participation in the Plan -- Participation in the Plan is automatic, that is, a
shareholder is automatically enrolled in the Plan when he or she purchases
shares of Common Stock of the Fund unless the shareholder specifically elects
not to participate in the Plan. Shareholders who elect not to participate will
receive all dividend distributions in cash. Shareholders who do not wish to
participate in the Plan must advise the Plan Agent in writing (at the address
set forth below) that they elect not to participate in the Plan. Participation
in the Plan is completely voluntary and may be terminated or resumed at any time
without penalty by writing to the Plan Agent.
Benefits of the Plan -- The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Fund. The Plan
promotes a long-term strategy of investing at a lower cost. All shares acquired
pursuant to the Plan receive voting rights. In addition, if the market price
plus commissions of the Fund's shares is above the net asset value, participants
in the Plan will receive shares of the Fund for less than they could otherwise
purchase them and with a cash value greater than the value of any cash
distribution they would have received. However, there may not be enough shares
available in the market to make distributions in shares at prices below the net
asset value. Also, since the Fund does not redeem shares, the price on resale
may be more or less than the net asset value.
Plan Fees -- There are no enrollment fees or brokerage fees for participating in
the Plan. The Plan Agent's service fees for handling the reinvestment of
distributions are paid for by the Fund. However, brokerage commissions may be
incurred when the Fund purchases shares on the open market and shareholders will
pay a pro rata share of any such commissions.
Tax Implications -- The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income tax that may
be payable (or required to be withheld) on such dividends. Therefore, income and
capital gains may still be realized even though shareholders do not receive
cash. The value of shares acquired pursuant to the Plan will generally be
excluded from gross income to the extent that the cash amount reinvested would
be excluded from gross income. If, when the Fund's shares are trading at a
market premium, the Fund issues shares pursuant to the Plan that have a greater
fair market value than the amount of cash reinvested, it is possible that all or
a portion of the discount from the market value (which may not exceed 5% of the
fair market value of the Fund's shares) could be viewed as a taxable
distribution. If the discount is viewed as a taxable distribution, it is also
possible that the taxable character of this discount would be allocable to all
the shareholders, including shareholders who do not participate in the Plan.
Thus, shareholders who do not participate in the Plan might be required to
report as ordinary income a portion of their distributions equal to their
allocable share of the discount.
Contact Information -- All correspondence concerning the Plan, including any
questions about the Plan, should be directed to the Plan Agent at Computershare
Trust Company, N.A., P.O. Box 43010, Providence, RI 02940-3010, Telephone:
800-426-5523.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 21
Officers and Directors
Number of
Funds and
Portfolios in
Position(s) Length of Fund Complex Other Public
Name, Address Held with Time Overseen by Directorships
and Year of Birth Fund Served Principal Occupation(s) During Past 5 Years Director Held by Director
====================================================================================================================================
Interested Director
------------------------------------------------------------------------------------------------------------------------------------
Robert C. Doll, Jr.* Fund 2005 to Vice Chairman and Director of BlackRock, 120 Funds None
P.O. Box 9011 President present Inc., Global Chief Investment Officer for 161 Portfolios
Princeton, NJ 08543-9011 and Equities, Chairman of the BlackRock Retail
1954 Director Operating Committee, and member of the
BlackRock Executive Committee since 2006;
President of the funds advised by Merrill
Lynch Investment Managers, L.P. ("MLIM") and
its affiliates ("MLIM/FAM-advised funds")
from 2005 to 2006 and Chief Investment
Officer thereof from 2001 to 2006; President
of MLIM and Fund Asset Management, L.P.
("FAM") from 2001 to 2006; Co-Head (Americas
Region) thereof from 2000 to 2001 and Senior
Vice President from 1999 to 2001; President
and Director of Princeton Services, Inc.
("Princeton Services") and President of
Princeton Administrators, L.P. ("Princeton
Administrators") from 2001 to 2006; Chief
Investment Officer of OppenheimerFunds, Inc.
in 1999 and Executive Vice President thereof
from 1991 to 1999.
---------------------------------------------------------------------------------------------------------
* Mr. Doll is a director, trustee or member of an advisory board of certain other investment
companies for which BlackRock Advisors, LLC and its affiliates act as investment adviser. Mr. Doll
is an "interested person," as defined in the Investment Company Act, of the Fund based on his
current and former positions with BlackRock, Inc. and its affiliates. Directors serve until their
resignation, removal or death, or until December 31 of the year in which they turn 72. As Fund
President, Mr. Doll serves at the pleasure of the Board of Directors.
====================================================================================================================================
Independent Directors*
------------------------------------------------------------------------------------------------------------------------------------
James H. Bodurtha** Director 2003 to Director, The China Business Group, Inc. 37 Funds None
P.O. Box 9095 present since 1996 and Executive Vice President 57 Portfolios
Princeton, NJ 08543-9095 thereof from 1996 to 2003; Chairman of the
1944 Board, Berkshire Holding Corporation since
1980; Partner, Squire, Sanders & Dempsey
from 1980 to 1993.
------------------------------------------------------------------------------------------------------------------------------------
Kenneth A. Froot Director 2005 to Professor, Harvard University since 1992; 37 Funds None
P.O. Box 9095 present Professor, Massachusetts Institute of 57 Portfolios
Princeton, NJ 08543-9095 Technology from 1986 to 1992.
1957
------------------------------------------------------------------------------------------------------------------------------------
Joe Grills** Director 2003 to Member of the Committee of Investment of 37 Funds Kimco Realty
P.O. Box 9095 present Employee Benefit Assets of the Association 57 Portfolios Corporation
Princeton, NJ 08543-9095 of Financial Professionals ("CIEBA") since
1935 1986; Member of CIEBA's Executive Committee
since 1988 and its Chairman from 1991 to
1992; Assistant Treasurer of International
Business Machines Corporation ("IBM") and
Chief Investment Officer of IBM Retirement
Funds from 1986 to 1993; Member of the
Investment Advisory Committee of the State
of New York Common Retirement Fund from
1989 to 2006; Member of the Investment
Advisory Committee of the Howard Hughes
Medical Institute from 1997 to 2000;
Director, Duke University Management
Company from 1992 to 2004, Vice Chairman
thereof from 1998 to 2004, and Director
Emeritus thereof since 2004; Director,
LaSalle Street Fund from 1995 to 2001;
Director, Kimco Realty Corporation since
1997; Member of the Investment Advisory
Committee of the Virginia Retirement System
since 1998, Vice Chairman thereof from 2002
to 2005, and Chairman thereof since 2005;
Director, Montpelier Foundation since 1998,
its Vice Chairman from 2000 to 2006, and
Chairman, thereof, since 2006; Member of
the Investment Committee of the Woodberry
Forest School since 2000; Member of the
Investment Committee of the National Trust
for Historic Preservation since 2000.
------------------------------------------------------------------------------------------------------------------------------------
22 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
Officers and Directors (continued)
Number of
Funds and
Portfolios in
Position(s) Length of Fund Complex Other Public
Name, Address Held with Time Overseen by Directorships
and Year of Birth Fund Served Principal Occupation(s) During Past 5 Years Director Held by Director
====================================================================================================================================
Independent Directors* (concluded)
------------------------------------------------------------------------------------------------------------------------------------
Herbert I. London Director 2003 to Professor Emeritus, New York University 37 Funds AIMS Worldwide, Inc.
P.O. Box 9095 present since 2005; John M. Olin Professor of 57 Portfolios
Princeton, NJ 08543-9095 Humanities, New York University from 1993 to
1939 2005; and Professor thereof from 1980 to
2005; President, Hudson Institute since
1997 and Trustee thereof since 1980; Dean,
Gallatin Division of New York University
from 1976 to 1993; Distinguished Fellow,
Herman Kahn Chair, Hudson Institute from
1984 to 1985; Chairman of the Board of
Directors of Vigilant Research, Inc. since
2006; Member of the Board of Directors for
Grantham University since 2006; Director of
AIMS Worldwide, Inc. since 2006; Director
of Reflex Security since 2006; Director of
InnoCentive, Inc. since 2006; Director of
Cerego, LLC since 2005; Director, Damon
Corp. from 1991 to 1995; Overseer, Center
for Naval Analyses from 1983 to 1993.
------------------------------------------------------------------------------------------------------------------------------------
Roberta Cooper Ramo Director 2003 to Shareholder, Modrall, Sperling, Roehl, 37 Funds None
P.O. Box 9095 present Harris & Sisk, P.A. since 1993; President, 57 Portfolios
Princeton, NJ 08543-9095 American Bar Association from 1995 to 1996
1942 and Member of the Board of Governors thereof
from 1994 to 1997; Shareholder, Poole,
Kelly and Ramo, Attorneys at Law P.C. from
1977 to 1993; Director of ECMC Group
(service provider to students, schools and
lenders) since 2001; Director, United New
Mexico Bank (now Wells Fargo) from 1983 to
1988; Director, First National Bank of New
Mexico (now Wells Fargo) from 1975 to 1976;
Vice President, American Law Institute from
2004 to 2007 and President elect thereof
since 2007.
------------------------------------------------------------------------------------------------------------------------------------
Robert S. Salomon, Jr. Director 2003 to Principal of STI Management (investment 37 Funds None
P.O. Box 9095 present adviser) from 1994 to 2005; Chairman and CEO 57 Portfolios
Princeton, NJ 08543-9095 of Salomon Brothers Asset Management Inc.
1936 from 1992 to 1995; Chairman of Salomon
Brothers Equity Mutual Funds from 1992 to
1995; regular columnist with Forbes
Magazine from 1992 to 2002; Director of
Stock Research and U.S. Equity Strategist
at Salomon Brothers Inc. from 1975 to 1991;
Trustee, Commonfund from 1980 to 2001.
---------------------------------------------------------------------------------------------------------
* Directors serve until their resignation, removal or death, or until December 31 of the year in
which they turn 72.
** Co-Chairman of the Board of Directors and the Audit Committee.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 23
Officers and Directors (concluded)
Position(s) Length of
Name, Address Held with Time
and Year of Birth Fund Served Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Fund Officers*
------------------------------------------------------------------------------------------------------------------------------------
Donald C. Burke Vice 2003 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
P.O. Box 9011 President present Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P. ("FAM")
Princeton, NJ 08543-9011 and in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and Treasurer
1960 Treasurer thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990 to 1997.
------------------------------------------------------------------------------------------------------------------------------------
Karen Clark Fund Chief 2007 to Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
P.O. Box 9011 Compliance present BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to
Princeton, NJ 08543-9011 Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors,
1965 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998
to 2001; and Branch Chief, Division of Investment Management and Office of
Compliance Inspections and Examinations, U.S. Securities and Exchange
Commission, from 1993 to 1998.
------------------------------------------------------------------------------------------------------------------------------------
Alice A. Pellegrino Fund 2004 to Director of BlackRock, Inc. from 2006 to 2007; Director (Legal Advisory) of MLIM
P.O. Box 9011 Secretary 2007 from 2002 to 2006; Vice President of MLIM from 1999 to 2002; Attorney associated
Princeton, NJ 08543-9011 with MLIM from 1997 to 1999; Secretary of MLIM, FAM, FAM Distributors, Inc. and
1960 Princeton Services from 2004 to 2006.
------------------------------------------------------------------------------------------------------------------------------------
Howard Surloff Fund 2007 to Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at
P.O. Box 9011 Secretary present BlackRock, Inc. since 2006; General Counsel (U.S.), Goldman Sachs Asset
Princeton, NJ 08543-9011 Management from 1993 to 2006.
1965
---------------------------------------------------------------------------------------------------------
* Officers of the Fund serve at the pleasure of the Board of Directors.
------------------------------------------------------------------------------------------------------------------------------------
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-3010
24 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available on the SEC's Web site at
http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at the
SEC's Public Reference Room in Washington, DC. Information on the operation of
the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available on
the Fund's Web site. Shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Fund's electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisers, banks or brokerages may offer this service.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007 25
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund
investors and individual clients (collectively, "Clients") and to safeguarding
their non-public personal information. The following information is provided to
help you understand what personal information BlackRock collects, how we protect
that information and why in certain cases we share such information with select
parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you
from different sources, including the following: (i) information we receive from
you or, if applicable, your financial intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that may
be of interest to you. In addition, BlackRock restricts access to non-public
personal information about its Clients to those BlackRock employees with a
legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public
personal information of its Clients, including procedures relating to the proper
storage and disposal of such information.
26 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. AUGUST 31, 2007
BlackRock Corporate High Yield Fund VI, Inc. seeks to provide shareholders with
current income by investing primarily in a diversified portfolio of fixed income
securities that are rated in the lower rating categories of the established
rating services (Ba or lower by Moody's Investors Service, Inc. or BB or lower
by Standard & Poor's) or are unrated securities of comparable quality.
This report, including the financial information herein, is transmitted to
shareholders of BlackRock Corporate High Yield Fund VI, Inc. for their
information. It is not a prospectus. The Fund has leveraged its Common Stock to
provide Common Stock shareholders with a potentially higher rate of return.
Leverage creates risk for Common Stock shareholders, including the likelihood of
greater volatility of net asset value and market price of Common Stock shares,
and the risk that fluctuations in short-term interest rates may reduce the
Common Stock's yield. Past performance results shown in this report should not
be considered a representation of future performance. Statements and other
information herein are as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's Web site
at http://www.sec.gov. Information about how the Fund voted proxies relating to
securities held in the Fund's portfolio during the most recent 12-month period
ended June 30 is available (1) at www.blackrock.com and (2) on the Securities
and Exchange Commission's Web site at http://www.sec.gov.
BlackRock Corporate High Yield Fund VI, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
BLACKROCK
#COYVI-8/07
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of
the end of the period covered by this report, applicable to the
registrant's principal executive officer, principal financial
officer and principal accounting officer, or persons performing
similar functions. During the period covered by this report, there
have been no amendments to or waivers granted under the code of
ethics. A copy of the code of ethics is available without charge at
www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors or trustees, as applicable (the "board of directors") has
determined that (i) the registrant has the following audit committee
financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent: (1) Joe Grills and (2)
Robert S. Salomon, Jr.
Under applicable securities laws, a person determined to be an audit
committee financial expert will not be deemed an "expert" for any
purpose, including without limitation for the purposes of Section 11
of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation
or identification as an audit committee financial expert does not
impose on such person any duties, obligations, or liabilities
greater than the duties, obligations, and liabilities imposed on
such person as a member of the audit committee and board of
directors in the absence of such designation or identification.
Item 4 - Principal Accountant Fees and Services
-----------------------------------------------------------------------------------------------------------------------
(b) Audit-Related
(a) Audit Fees Fees(1) (c) Tax Fees(2) (d) All Other Fees(3)
-----------------------------------------------------------------------------------------------------------------------
Current Previous Current Previous Current Previous Current Previous
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
Entity Name Year End Year End Year End Year End Year End Year End Year End Year End
-----------------------------------------------------------------------------------------------------------------------
BlackRock Corporate
High Yield Fund VI,
Inc. $38,500 $38,500 $0 $8,000 $6,100 $6,000 $1,042 $0
-----------------------------------------------------------------------------------------------------------------------
1 The nature of the services include assurance and related services reasonably
related to the performance of the audit of financial statements not included in
Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax
planning.
3 The nature of the services include a review of compliance procedures and
attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to
the registrant's affiliated service providers that relate directly
to the operations and the financial reporting of the registrant.
Certain of these non-audit services that the Committee believes are
a) consistent with the SEC's auditor independence rules and b)
routine and recurring services that will not impair the independence
of the independent accountants may be approved by the Committee
without consideration on a specific case-by-case basis ("general
pre-approval"). However, such services will only be deemed
pre-approved provided that any individual project does not exceed
$5,000 attributable to the registrant or $50,000 for all of the
registrants the Committee oversees. Any proposed services exceeding
the pre-approved cost levels will require specific pre-approval by
the Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) None of the services described in each of Items 4(b) through
(d) were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
--------------------------------------------------------------------
Current Fiscal Year Previous Fiscal
Entity Name End Year End
--------------------------------------------------------------------
BlackRock Corporate High
Yield Fund VI, Inc. $291,642 $3,112,500
--------------------------------------------------------------------
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant's investment
adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services
to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $284,500, 0%
Item 5 - Audit Committee of Listed Registrants - The following individuals
are members of the registrant's separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of the
Exchange Act (15 U.S.C. 78c(a)(58)(A)):
James H. Bodurtha
Kenneth A. Froot
Joe Grills
Herbert I. London
Roberta Cooper Ramo
Robert S. Salomon, Jr.
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - The registrant has delegated the
voting of proxies relating to Fund portfolio securities to its
investment adviser, BlackRock Advisors, LLC and its sub-adviser, as
applicable. The Proxy Voting Policies and Procedures of the adviser
and sub-adviser are attached hereto as Exhibit 99.PROXYPOL.
Information about how a Fund voted proxies relating to securities
held in the Fund's portfolio during the most recent 12 month period
ended June 30 is available without charge (1) at www.blackrock.com
and (2) on the Commission's web site at http://www.sec.gov.
Proxy Voting Policies and Procedures
For BlackRock Advisors, LLC
And Its Affiliated SEC Registered Investment Advisers
September 30, 2006
Table of Contents
Page
----
Introduction.................................................................
Scope of Committee Responsibilities..........................................
Special Circumstances........................................................
Voting Guidelines............................................................
Boards of Directors....................................................
Auditors...............................................................
Compensation and Benefits..............................................
Capital Structure......................................................
Corporate Charter and By-Laws..........................................
Corporate Meetings.....................................................
Investment Companies...................................................
Environmental and Social Issues........................................
Notice to Clients............................................................
Proxy Voting Policies and Procedures
These Proxy Voting Policies and Procedures ("Policy") for BlackRock
Advisors, LLC and its affiliated U.S. registered investment advisers(1)
("BlackRock") reflect our duty as a fiduciary under the Investment Advisers Act
of 1940 (the "Advisers Act") to vote proxies in the best interests of our
clients. BlackRock serves as the investment manager for investment companies,
other commingled investment vehicles and/or separate accounts of institutional
and other clients. The right to vote proxies for securities held in such
accounts belongs to BlackRock's clients. Certain clients of BlackRock have
retained the right to vote such proxies in general or in specific
circumstances.(2) Other clients, however, have delegated to BlackRock the right
to vote proxies for securities held in their accounts as part of BlackRock's
authority to manage, acquire and dispose of account assets.
When BlackRock votes proxies for a client that has delegated to BlackRock
proxy voting authority, BlackRock acts as the client's agent. Under the Advisers
Act, an investment adviser is a fiduciary that owes each of its clients a duty
of care and loyalty with respect to all services the adviser undertakes on the
client's behalf, including proxy voting. BlackRock is therefore subject to a
fiduciary duty to vote proxies in a manner BlackRock believes is consistent with
the client's best interests,(3) whether or not the client's proxy voting is
subject to the fiduciary standards of the Employee Retirement Income Security
Act of 1974 ("ERISA").(4) When voting proxies for client accounts (including
investment companies), BlackRock's primary objective is to make voting decisions
solely in the best interests of clients and ERISA clients' plan beneficiaries
and participants. In fulfilling its obligations to clients, BlackRock will seek
to act in a manner that it believes is most likely to enhance the economic value
of the underlying securities held in client accounts.(5) It is imperative that
BlackRock considers the interests of its clients, and not the interests of
BlackRock, when voting proxies and that real (or perceived) material conflicts
that may arise between BlackRock's interest and those of BlackRock's clients are
properly addressed and resolved.
----------
(1) The Policy does not apply to BlackRock Asset Management U.K. Limited and
BlackRock Investment Managers International Limited, which are U.S. registered
investment advisers based in the United Kingdom.
(2) In certain situations, a client may direct BlackRock to vote in accordance
with the client's proxy voting policies. In these situations, BlackRock will
seek to comply with such policies to the extent it would not be inconsistent
with other BlackRock legal responsibilities.
(3) Letter from Harvey L. Pitt, Chairman, SEC, to John P.M. Higgins, President,
Ram Trust Services (February 12, 2002) (Section 206 of the Investment Advisers
Act imposes a fiduciary responsibility to vote proxies fairly and in the best
interests of clients); SEC Release No. IA-2106 (February 3, 2003).
(4) DOL Interpretative Bulletin of Sections 402, 403 and 404 of ERISA at 29
C.F.R. 2509.94-2.
(5) Other considerations, such as social, labor, environmental or other
policies, may be of interest to particular clients. While BlackRock is cognizant
of the importance of such considerations, when voting proxies it will generally
take such matters into account only to the extent that they have a direct
bearing on the economic value of the underlying securities. To the extent that a
BlackRock client desires to pursue a particular social, labor, environmental or
other agenda through the proxy votes made for its securities held through
BlackRock as investment adviser, BlackRock encourages the client to consider
retaining direct proxy voting authority or to appoint independently a special
proxy voting fiduciary other than BlackRock.
1
Advisers Act Rule 206(4)-6 was adopted by the SEC in 2003 and requires,
among other things, that an investment adviser that exercises voting authority
over clients' proxy voting adopt policies and procedures reasonably designed to
ensure that the adviser votes proxies in the best interests of clients,
discloses to its clients information about those policies and procedures and
also discloses to clients how they may obtain information on how the adviser has
voted their proxies.
In light of such fiduciary duties, the requirements of Rule 206(4)-6, and
given the complexity of the issues that may be raised in connection with proxy
votes, BlackRock has adopted these policies and procedures. BlackRock's Equity
Investment Policy Oversight Committee, or a sub-committee thereof (the
"Committee"), addresses proxy voting issues on behalf of BlackRock and its
clients.(6) The Committee is comprised of senior members of BlackRock's
Portfolio Management Group and advised by BlackRock's Legal and Compliance
Department.
----------
(6) Subject to the Proxy Voting Policies of Merrill Lynch Bank & Trust Company
FSB, the Committee may also function jointly as the Proxy Voting Committee for
Merrill Lynch Bank & Trust Company FSB trust accounts managed by personnel
dually-employed by BlackRock.
2
I. Scope of Committee Responsibilities
The Committee shall have the responsibility for determining how to address
proxy votes made on behalf of all BlackRock clients, except for clients who have
retained the right to vote their own proxies, either generally or on any
specific matter. In so doing, the Committee shall seek to ensure that proxy
votes are made in the best interests of clients, and that proxy votes are
determined in a manner free from unwarranted or inappropriate influences. The
Committee shall also oversee the overall administration of proxy voting for
BlackRock accounts.(7)
The Committee shall establish BlackRock's proxy voting guidelines, with
such advice, participation and research as the Committee deems appropriate from
portfolio managers, proxy voting services or other knowledgeable interested
parties. As it is anticipated that there will not necessarily be a "right" way
to vote proxies on any given issue applicable to all facts and circumstances,
the Committee shall also be responsible for determining how the proxy voting
guidelines will be applied to specific proxy votes, in light of each issuer's
unique structure, management, strategic options and, in certain circumstances,
probable economic and other anticipated consequences of alternative actions. In
so doing, the Committee may determine to vote a particular proxy in a manner
contrary to its generally stated guidelines.
The Committee may determine that the subject matter of certain proxy
issues are not suitable for general voting guidelines and requires a
case-by-case determination, in which case the Committee may elect not to adopt a
specific voting guideline applicable to such issues. BlackRock believes that
certain proxy voting issues - such as approval of mergers and other significant
corporate transactions - require investment analysis akin to investment
decisions, and are therefore not suitable for general guidelines. The Committee
may elect to adopt a common BlackRock position on certain proxy votes that are
akin to investment decisions, or determine to permit portfolio managers to make
individual decisions on how best to maximize economic value for the accounts for
which they are responsible (similar to normal buy/sell investment decisions made
by such portfolio managers).(8)
While it is expected that BlackRock, as a fiduciary, will generally seek
to vote proxies over which BlackRock exercises voting authority in a uniform
manner for all BlackRock clients, the Committee, in conjunction with the
portfolio manager of an account, may determine that the specific circumstances
of such account require that such account's proxies be voted differently due to
such account's investment objective or other factors that differentiate it from
other accounts. In addition, on proxy votes that are akin to investment
decisions, BlackRock believes portfolio managers may from time to time
----------
(7) The Committee may delegate day-to-day administrative responsibilities to
other BlackRock personnel and/or outside service providers, as appropriate.
(8) The Committee will normally defer to portfolio managers on proxy votes that
are akin to investment decisions except for proxy votes that involve a material
conflict of interest, in which case it will determine, in its discretion, the
appropriate voting process so as to address such conflict.
3
legitimately reach differing but equally valid views, as fiduciaries for
BlackRock's clients, on how best to maximize economic value in respect of a
particular investment.
The Committee will also be responsible for ensuring the maintenance of
records of each proxy vote, as required by Advisers Act Rule 204-2.(9) All
records will be maintained in accordance with applicable law. Except as may be
required by applicable legal requirements, or as otherwise set forth herein, the
Committee's determinations and records shall be treated as proprietary,
nonpublic and confidential.
The Committee shall be assisted by other BlackRock personnel, as may be
appropriate. In particular, the Committee has delegated to the BlackRock
Operations Department responsibility for monitoring corporate actions and
ensuring that proxy votes are submitted in a timely fashion. The Operations
Department shall ensure that proxy voting issues are promptly brought to the
Committee's attention and that the Committee's proxy voting decisions are
appropriately disseminated and implemented.
To assist BlackRock in voting proxies, the Committee may retain the
services of a firm providing such services. BlackRock has currently retained
Institutional Shareholder Services ("ISS") in that role. ISS is an independent
adviser that specializes in providing a variety of fiduciary-level proxy-related
services to institutional investment managers, plan sponsors, custodians,
consultants, and other institutional investors. The services provided to
BlackRock may include, but are not limited to, in-depth research, voting
recommendations (which the Committee is not obligated to follow), vote
execution, and recordkeeping.
----------
(9) The Committee may delegate the actual maintenance of such records to an
outside service provider. Currently, the Committee has delegated the maintenance
of such records to Institutional Shareholder Services.
4
II. Special Circumstances
Routine Consents. BlackRock may be asked from time to time to consent to
an amendment to, or grant a waiver under, a loan agreement, partnership
agreement, indenture or other governing document of a specific financial
instrument held by BlackRock clients. BlackRock will generally treat such
requests for consents not as "proxies" subject to these Proxy Voting Policies
and Procedures but as investment matters to be dealt with by the responsible
BlackRock investment professionals would, provided that such consents (i) do not
relate to the election of a board of directors or appointment of auditors of a
public company, and (ii) either (A) would not otherwise materially affect the
structure, management or control of a public company, or (B) relate to a company
in which BlackRock clients hold only interests in bank loans or debt securities
and are consistent with customary standards and practices for such instruments.
Securities on Loan. Registered investment companies that are advised by
BlackRock as well as certain of our advisory clients may participate in
securities lending programs. Under most securities lending arrangements,
securities on loan may not be voted by the lender (unless the loan is recalled).
BlackRock believes that each client has the right to determine whether
participating in a securities lending program enhances returns, to contract with
the securities lending agent of its choice and to structure a securities lending
program, through its lending agent, that balances any tension between loaning
and voting securities in a matter that satisfies such client. If client has
decided to participate in a securities lending program, BlackRock will therefore
defer to the client's determination and not attempt to seek recalls solely for
the purpose of voting routine proxies as this could impact the returns received
from securities lending and make the client a less desirable lender in a
marketplace. Where a client retains a lending agent that is unaffiliated with
BlackRock, BlackRock will generally not seek to vote proxies relating to
securities on loan because BlackRock does not have a contractual right to recall
such loaned securities for the purpose of voting proxies. Where BlackRock or an
affiliate acts as the lending agent, BlackRock will also generally not seek to
recall loaned securities for proxy voting purposes, unless the portfolio manager
responsible for the account or the Committee determines that voting the proxy is
in the client's best interest and requests that the security be recalled.
Voting Proxies for Non-US Companies. While the proxy voting process is
well established in the United States, voting proxies of non-US companies
frequently involves logistical issues which can affect BlackRock's ability to
vote such proxies, as well as the desirability of voting such proxies. These
issues include (but are not limited to): (i) untimely notice of shareholder
meetings, (ii) restrictions on a foreigner's ability to exercise votes, (iii)
requirements to vote proxies in person, (iv) "shareblocking" (requirements that
investors who exercise their voting rights surrender the right to dispose of
their holdings for some specified period in proximity to the shareholder
meeting), (v) potential difficulties in translating the proxy, and (vi)
requirements to provide local agents with unrestricted powers of attorney to
facilitate voting instructions.
5
As a consequence, BlackRock votes proxies of non-US companies only on a
"best-efforts" basis. In addition, the Committee may determine that it is
generally in the best interests of BlackRock clients not to vote proxies of
companies in certain countries if the Committee determines that the costs
(including but not limited to opportunity costs associated with shareblocking
constraints) associated with exercising a vote generally are expected to
outweigh the benefit the client will derive by voting on the issuer's proposal.
If the Committee so determines in the case of a particular country, the
Committee (upon advice from BlackRock portfolio managers) may override such
determination with respect to a particular issuer's shareholder meeting if the
Committee believes the benefits of seeking to exercise a vote at such meeting
outweighs the costs, in which case BlackRock will seek to vote on a best-efforts
basis.
Securities Sold After Record Date. With respect to votes in connection
with securities held on a particular record date but sold from a client account
prior to the holding of the related meeting, BlackRock may take no action on
proposals to be voted on in such meeting.
Conflicts of Interest. From time to time, BlackRock may be required to
vote proxies in respect of an issuer that is an affiliate of BlackRock (a
"BlackRock Affiliate"), or a money management or other client of BlackRock (a
"BlackRock Client").(10) In such event, provided that the Committee is aware of
the real or potential conflict, the following procedures apply:
o The Committee intends to adhere to the voting guidelines set forth
herein for all proxy issues including matters involving BlackRock
Affiliates and BlackRock Clients. The Committee may, in its
discretion for the purposes of ensuring that an independent
determination is reached, retain an independent fiduciary to advise
the Committee on how to vote or to cast votes on behalf of
BlackRock's clients; and
o if the Committee determines not to retain an independent fiduciary,
or does not desire to follow the advice of such independent
fiduciary, the Committee shall determine how to vote the proxy after
consulting with the BlackRock Legal and Compliance Department and
concluding that the vote cast is in the client's best interest
notwithstanding the conflict.
----------
(10) Such issuers may include investment companies for which BlackRock provides
investment advisory, administrative and/or other services.
6
III. Voting Guidelines
The Committee has determined that it is appropriate and in the best
interests of BlackRock's clients to adopt the following voting guidelines, which
represent the Committee's usual voting position on certain recurring proxy
issues that are not expected to involve unusual circumstances. With respect to
any particular proxy issue, however, the Committee may elect to vote differently
than a voting guideline if the Committee determines that doing so is, in the
Committee's judgment, in the best interest of its clients. The guidelines may be
reviewed at any time upon the request of any Committee member and may be amended
or deleted upon the vote of a majority of voting Committee members present at a
Committee meeting for which there is a quorum.
7
A. Boards of Directors
These proposals concern those issues submitted to shareholders relating to
the composition of the Board of Directors of companies other than investment
companies. As a general matter, the Committee believes that a company's Board of
Directors (rather than shareholders) is most likely to have access to important,
nonpublic information regarding a company's business and prospects, and is
therefore best-positioned to set corporate policy and oversee management. The
Committee therefore believes that the foundation of good corporate governance is
the election of qualified, independent corporate directors who are likely to
diligently represent the interests of shareholders and oversee management of the
corporation in a manner that will seek to maximize shareholder value over time.
In individual cases, the Committee may look at a Director nominee's history of
representing shareholder interests as a director of other companies, or other
factors to the extent the Committee deems relevant.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
# VOTE and DESCRIPTION
--------------------------------------------------------------------------------
A.1 FOR nominees for director of United States companies in uncontested
elections, except for nominees who
o have missed at least two meetings and, as a result, attended less
than 75% of meetings of the Board of Directors and its committees
the previous year, unless the nominee missed the meeting(s) due to
illness or company business
o voted to implement or renew a "dead-hand" poison pill
o ignored a shareholder proposal that was approved by either a
majority of the shares outstanding in any year or by the majority of
votes cast for two consecutive years
o failed to act on takeover offers where the majority of the
shareholders have tendered their shares
o are corporate insiders who serve on the audit, compensation or
nominating committees or on a full Board that does not have such
committees composed exclusively of independent directors
o on a case-by-case basis, have served as directors of other companies
with allegedly poor corporate governance
o sit on more than six boards of public companies
--------------------------------------------------------------------------------
A.2 FOR nominees for directors of non-U.S. companies in uncontested elections,
except for nominees from whom the Committee determines to withhold votes
due to the nominees' poor records of representing shareholder interests,
on a case-by-case basis
--------------------------------------------------------------------------------
A.3 FOR proposals to declassify Boards of Directors, except where there exists
a legitimate purpose for classifying boards
--------------------------------------------------------------------------------
A.4 AGAINST proposals to classify Boards of Directors, except where there
exists a legitimate purpose for classifying boards
--------------------------------------------------------------------------------
8
--------------------------------------------------------------------------------
A.5 AGAINST proposals supporting cumulative voting
--------------------------------------------------------------------------------
A.6 FOR proposals eliminating cumulative voting
--------------------------------------------------------------------------------
A.7 FOR proposals supporting confidential voting
--------------------------------------------------------------------------------
A.8 FOR proposals seeking election of supervisory board members
--------------------------------------------------------------------------------
A.9 AGAINST shareholder proposals seeking additional representation of women
and/or minorities generally (i.e., not specific individuals) to a Board of
Directors
--------------------------------------------------------------------------------
A.10 AGAINST shareholder proposals for term limits for directors
--------------------------------------------------------------------------------
A.11 FOR shareholder proposals to establish a mandatory retirement age for
directors who attain the age of 72 or older
--------------------------------------------------------------------------------
A.12 AGAINST shareholder proposals requiring directors to own a minimum amount
of company stock
--------------------------------------------------------------------------------
A.13 FOR proposals requiring a majority of independent directors on a Board of
Directors
--------------------------------------------------------------------------------
A.14 FOR proposals to allow a Board of Directors to delegate powers to a
committee or committees
--------------------------------------------------------------------------------
A.15 FOR proposals to require audit, compensation and/or nominating committees
of a Board of Directors to consist exclusively of independent directors
--------------------------------------------------------------------------------
A.16 AGAINST shareholder proposals seeking to prohibit a single person from
occupying the roles of chairman and chief executive officer
--------------------------------------------------------------------------------
A.17 FOR proposals to elect account inspectors
--------------------------------------------------------------------------------
A.18 FOR proposals to fix the membership of a Board of Directors at a specified
size
--------------------------------------------------------------------------------
A.19 FOR proposals permitting shareholder ability to nominate directors
directly
--------------------------------------------------------------------------------
A.20 AGAINST proposals to eliminate shareholder ability to nominate directors
directly
--------------------------------------------------------------------------------
A.21 FOR proposals permitting shareholder ability to remove directors directly
--------------------------------------------------------------------------------
A.22 AGAINST proposals to eliminate shareholder ability to remove directors
directly
--------------------------------------------------------------------------------
9
B. Auditors
These proposals concern those issues submitted to shareholders related to
the selection of auditors. As a general matter, the Committee believes that
corporate auditors have a responsibility to represent the interests of
shareholders and provide an independent view on the propriety of financial
reporting decisions of corporate management. While the Committee will generally
defer to a corporation's choice of auditor, in individual cases, the Committee
may look at an auditors' history of representing shareholder interests as
auditor of other companies, to the extent the Committee deems relevant.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
B.1 FOR approval of independent auditors, except for
o auditors that have a financial interest in, or material association
with, the company they are auditing, and are therefore believed by
the Committee not to be independent
o auditors who have rendered an opinion to any company which in the
Committee's opinion is either not consistent with best accounting
practices or not indicative of the company's financial situation
o on a case-by-case basis, auditors who in the Committee's opinion
provide a significant amount of non-audit services to the company
--------------------------------------------------------------------------------
B.2 FOR proposals seeking authorization to fix the remuneration of auditors
--------------------------------------------------------------------------------
B.3 FOR approving internal statutory auditors
--------------------------------------------------------------------------------
B.4 FOR proposals for audit firm rotation, except for proposals that would
require rotation after a period of less than 5 years
--------------------------------------------------------------------------------
10
C. Compensation and Benefits
These proposals concern those issues submitted to shareholders related to
management compensation and employee benefits. As a general matter, the
Committee favors disclosure of a company's compensation and benefit policies and
opposes excessive compensation, but believes that compensation matters are
normally best determined by a corporation's board of directors, rather than
shareholders. Proposals to "micro-manage" a company's compensation practices or
to set arbitrary restrictions on compensation or benefits will therefore
generally not be supported.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
C.1 IN ACCORDANCE WITH THE RECOMMENDATION OF ISS on compensation plans if the
ISS recommendation is based solely on whether or not the company's plan
satisfies the allowable cap as calculated by ISS. If the recommendation of
ISS is based on factors other than whether the plan satisfies the
allowable cap the Committee will analyze the particular proposed plan.
This policy applies to amendments of plans as well as to initial
approvals.
--------------------------------------------------------------------------------
C.2 FOR proposals to eliminate retirement benefits for outside directors
--------------------------------------------------------------------------------
C.3 AGAINST proposals to establish retirement benefits for outside directors
--------------------------------------------------------------------------------
C.4 FOR proposals approving the remuneration of directors or of supervisory
board members
--------------------------------------------------------------------------------
C.5 AGAINST proposals to reprice stock options
--------------------------------------------------------------------------------
C.6 FOR proposals to approve employee stock purchase plans that apply to all
employees. This policy applies to proposals to amend ESPPs if the plan as
amended applies to all employees.
--------------------------------------------------------------------------------
C.7 FOR proposals to pay retirement bonuses to directors of Japanese companies
unless the directors have served less than three years
--------------------------------------------------------------------------------
C.8 AGAINST proposals seeking to pay outside directors only in stock
--------------------------------------------------------------------------------
C.9 FOR proposals seeking further disclosure of executive pay or requiring
companies to report on their supplemental executive retirement benefits
--------------------------------------------------------------------------------
C.10 AGAINST proposals to ban all future stock or stock option grants to
executives
--------------------------------------------------------------------------------
C.11 AGAINST option plans or grants that apply to directors or employees of
"related companies" without adequate disclosure of the corporate
relationship and justification of the option policy
--------------------------------------------------------------------------------
C.12 FOR proposals to exclude pension plan income in the calculation of
earnings used in determining executive bonuses/compensation
--------------------------------------------------------------------------------
11
D. Capital Structure
These proposals relate to various requests, principally from management,
for approval of amendments that would alter the capital structure of a company,
such as an increase in authorized shares. As a general matter, the Committee
will support requests that it believes enhance the rights of common shareholders
and oppose requests that appear to be unreasonably dilutive.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
D.1 AGAINST proposals seeking authorization to issue shares without preemptive
rights except for issuances up to 10% of a non-US company's total
outstanding capital
--------------------------------------------------------------------------------
D.2 FOR management proposals seeking preemptive rights or seeking
authorization to issue shares with preemptive rights
--------------------------------------------------------------------------------
D.3 FOR management proposals approving share repurchase programs
--------------------------------------------------------------------------------
D.4 FOR management proposals to split a company's stock
--------------------------------------------------------------------------------
D.5 FOR management proposals to denominate or authorize denomination of
securities or other obligations or assets in Euros
--------------------------------------------------------------------------------
D.6 FOR proposals requiring a company to expense stock options (unless the
company has already publicly committed to do so by a certain date).
--------------------------------------------------------------------------------
12
E. Corporate Charter and By-Laws
These proposals relate to various requests for approval of amendments to a
corporation's charter or by-laws, principally for the purpose of adopting or
redeeming "poison pills". As a general matter, the Committee opposes poison pill
provisions.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
E.1 AGAINST proposals seeking to adopt a poison pill
--------------------------------------------------------------------------------
E.2 FOR proposals seeking to redeem a poison pill
--------------------------------------------------------------------------------
E.3 FOR proposals seeking to have poison pills submitted to shareholders for
ratification
--------------------------------------------------------------------------------
E.4 FOR management proposals to change the company's name
--------------------------------------------------------------------------------
13
F. Corporate Meetings
These are routine proposals relating to various requests regarding the
formalities of corporate meetings.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
F.1 AGAINST proposals that seek authority to act on "any other business that
may arise"
--------------------------------------------------------------------------------
F.2 FOR proposals designating two shareholders to keep minutes of the meeting
--------------------------------------------------------------------------------
F.3 FOR proposals concerning accepting or approving financial statements and
statutory reports
--------------------------------------------------------------------------------
F.4 FOR proposals approving the discharge of management and the supervisory
board
--------------------------------------------------------------------------------
F.5 FOR proposals approving the allocation of income and the dividend
--------------------------------------------------------------------------------
F.6 FOR proposals seeking authorization to file required documents/other
formalities
--------------------------------------------------------------------------------
F.7 FOR proposals to authorize the corporate board to ratify and execute
approved resolutions
--------------------------------------------------------------------------------
F.8 FOR proposals appointing inspectors of elections
--------------------------------------------------------------------------------
F.9 FOR proposals electing a chair of the meeting
--------------------------------------------------------------------------------
F.10 FOR proposals to permit "virtual" shareholder meetings over the Internet
--------------------------------------------------------------------------------
F.11 AGAINST proposals to require rotating sites for shareholder meetings
--------------------------------------------------------------------------------
14
G. Investment Companies
These proposals relate to proxy issues that are associated solely with
holdings of shares of investment companies, including, but not limited to,
investment companies for which BlackRock provides investment advisory,
administrative and/or other services. As with other types of companies, the
Committee believes that a fund's Board of Directors (rather than its
shareholders) is best-positioned to set fund policy and oversee management.
However, the Committee opposes granting Boards of Directors authority over
certain matters, such as changes to a fund's investment objective, that the
Investment Company Act of 1940 envisions will be approved directly by
shareholders.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
G.1 FOR nominees for director of mutual funds in uncontested elections, except
for nominees who
o have missed at least two meetings and, as a result, attended less
than 75% of meetings of the Board of Directors and its committees
the previous year, unless the nominee missed the meeting due to
illness or fund business
o ignore a shareholder proposal that was approved by either a majority
of the shares outstanding in any year or by the majority of votes
cast for two consecutive years
o are interested directors who serve on the audit or nominating
committees or on a full Board that does not have such committees
composed exclusively of independent directors
o on a case-by-case basis, have served as directors of companies with
allegedly poor corporate governance
--------------------------------------------------------------------------------
G.2 FOR the establishment of new series or classes of shares
--------------------------------------------------------------------------------
G.3 AGAINST proposals to change a fund's investment objective to
nonfundamental
--------------------------------------------------------------------------------
G.4 FOR proposals to establish a master-feeder structure or authorizing the
Board to approve a master-feeder structure without a further shareholder
vote
--------------------------------------------------------------------------------
G.5 AGAINST a shareholder proposal for the establishment of a director
ownership requirement
--------------------------------------------------------------------------------
G.6 FOR classified boards of closed-end investment companies
--------------------------------------------------------------------------------
15
H. Environmental and Social Issues
These are shareholder proposals to limit corporate conduct in some manner
that relates to the shareholder's environmental or social concerns. The
Committee generally believes that annual shareholder meetings are inappropriate
forums for the discussion of larger social issues, and opposes shareholder
resolutions "micromanaging" corporate conduct or requesting release of
information that would not help a shareholder evaluate an investment in the
corporation as an economic matter. While the Committee is generally supportive
of proposals to require corporate disclosure of matters that seem relevant and
material to the economic interests of shareholders, the Committee is generally
not supportive of proposals to require disclosure of corporate matters for other
purposes.
The Committee's general policy is to vote:
--------------------------------------------------------------------------------
H.1 AGAINST proposals seeking to have companies adopt international codes of
conduct
--------------------------------------------------------------------------------
H.2 AGAINST proposals seeking to have companies provide non-required reports
on:
o environmental liabilities;
o bank lending policies;
o corporate political contributions or activities;
o alcohol advertising and efforts to discourage drinking by minors;
o costs and risk of doing business in any individual country;
o involvement in nuclear defense systems
--------------------------------------------------------------------------------
H.3 AGAINST proposals requesting reports on Maquiladora operations or on CERES
principles
--------------------------------------------------------------------------------
H.4 AGAINST proposals seeking implementation of the CERES principles
--------------------------------------------------------------------------------
16
Notice to Clients
BlackRock will make records of any proxy vote it has made on behalf of a
client available to such client upon request.(11) BlackRock will use its best
efforts to treat proxy votes of clients as confidential, except as it may decide
to best serve its clients' interests or as may be necessary to effect such votes
or as may be required by law.
BlackRock encourage clients with an interest in particular proxy voting
issues to make their views known to BlackRock, provided that, in the absence of
specific written direction from a client on how to vote that client's proxies,
BlackRock reserves the right to vote any proxy in a manner it deems in the best
interests of its clients, as it determines in its sole discretion.
These policies are as of the date indicated on the cover hereof. The
Committee may subsequently amend these policies at any time, without notice.
----------
(11) Such request may be made to the client's portfolio or relationship manager
or addressed in writing to Secretary, BlackRock Equity Investment Policy
Oversight Committee, Legal and Compliance Department, BlackRock Inc., 40 East
52nd Street, New York, New York 10022.
17
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
as of August 31, 2007.
(a)(1) BlackRock Corporate High Yield Fund VI, Inc. is managed by a
team of investment professionals comprised of Scott Amero, Managing
Director at BlackRock, Jeffrey Gary, CPA, Managing Director at
BlackRock, Kevin J. Booth, CFA, Managing Director at BlackRock and
James E. Keenan, CFA, Director at BlackRock. Each is a member of
BlackRock's fixed income portfolio management group. Messrs. Amero
and Gary are responsible for setting the Fund's overall credit
strategy. Messrs. Booth and Keenan are the Fund's co-portfolio
managers and are responsible for the day-to-day management of the
Fund's portfolio and the selection of its investments. Messrs. Amero
and Gary have been members of the Fund's management team since 2006
and Mr. Keenan has been the Fund's portfolio manager since 2006 and
Mr. Booth has been the Fund's portfolio manager since 2007.
Scott Amero is co-head of BlackRock's fixed income portfolio
management group. He is a member of the Management Committee and the
Investment Strategy Group. Mr. Amero is a senior strategist and
portfolio manager with responsibility for overseeing all fixed
income sector strategy and the overall management of client
portfolios. He is also the head of global credit research. He is a
director of Anthracite Capital, Inc., BlackRock's publicly-traded
real estate investment trust. Mr. Amero has been with BlackRock
since 1990.
Jeffrey Gary is the head of BlackRock's high yield team within the
Fixed Income Portfolio Management Group. Prior to joining BlackRock
in 2003, Mr. Gary was a Managing Director and portfolio manager with
AIG (American General) Investment Group.
Kevin Booth is co-head of the high yield team within BlackRock's
Fixed Income Portfolio Management Group. His primary
responsibilities are managing portfolios and directing investment
strategy. He specializes in hybrid high yield portfolios, consisting
of leveraged bank loans, high yield bonds, and distressed
obligations. Prior to joining BlackRock, Mr. Booth was a Managing
Director (Global Fixed Income) of Merrill Lynch Investment Managers
("MLIM") in 2006, a Director from 1998 to 2006 and was a Vice
President of MLIM from 1991 to 1998. He has been a portfolio manager
with BlackRock or MLIM since 1992, and was a member of MLIM's bank
loan group from 2000 to 2006.
James Keenan is a high yield portfolio manager and trader within
BlackRock's Fixed Income Portfolio Management Group. His primary
responsibilities are managing client portfolios, executing trades
and ensuring consistency across high yield portfolios. Mr. Keenan
has been with BlackRock since 2004. Prior to joining BlackRock, he
was a senior high yield trader at Columbia Management Group. Mr.
Keenan began his investment career at UBS Global Asset Management
where he held roles as a trader, research analyst and a portfolio
analyst from 1998 through 2003.
(a)(2) As of August 31, 2007: [to be updated before filing]
-----------------------------------------------------------------------------------------------------------------------------------
(iii) Number of Other Accounts and
(ii) Number of Other Accounts Managed Assets for Which Advisory Fee is
and Assets by Account Type Performance-Based
-----------------------------------------------------------------------------------------------------------------------------------
Other Other
(i) Name of Registered Other Pooled Registered Other Pooled
Portfolio Investment Investment Other Investment Investment Other
Manager Companies Vehicles Accounts Companies Vehicles Accounts
-----------------------------------------------------------------------------------------------------------------------------------
Scott Amero 48 43 260 0 6 22
-----------------------------------------------------------------------------------------------------------------------------------
$38,338,511,586 $10,705,355,517 $91,635,073,306 $0 $2,380,367,169 $6,516,538,728
-----------------------------------------------------------------------------------------------------------------------------------
Jeffrey Gary 17 13 15 0 5 5
-----------------------------------------------------------------------------------------------------------------------------------
$ 7,935,732,170 $ 7,296,812,550 $ 3,035,996,960 $0 $1,947,853,068 $ 865,727,083
-----------------------------------------------------------------------------------------------------------------------------------
Kevin Booth 22 9 7 0 4 3
-----------------------------------------------------------------------------------------------------------------------------------
$10,849,278,610 $ 3,305,024,401 $ 1,224,383,989 $0 $1,483,112,004 $ 539,887,685
-----------------------------------------------------------------------------------------------------------------------------------
James Keenan 17 8 16 0 2 5
-----------------------------------------------------------------------------------------------------------------------------------
$ 7,935,732,170 $ 2,072,998,559 $ 2,827,296,066 $0 $ 997,548,495 $ 727,207,901
-----------------------------------------------------------------------------------------------------------------------------------
(iv) Potential Material Conflicts of Interest
BlackRock has built a professional working environment, firm-wide
compliance culture and compliance procedures and systems designed to
protect against potential incentives that may favor one account over
another. BlackRock has adopted policies and procedures that address
the allocation of investment opportunities, execution of portfolio
transactions, personal trading by employees and other potential
conflicts of interest that are designed to ensure that all client
accounts are treated equitably over time. Nevertheless, BlackRock
furnishes investment management and advisory services to numerous
clients in addition to the Fund, and BlackRock may, consistent with
applicable law, make investment recommendations to other clients or
accounts (including accounts which are hedge funds or have
performance or higher fees paid to BlackRock, or in which portfolio
managers have a personal interest in the receipt of such fees),
which may be the same as or different from those made to the Fund.
In addition, BlackRock, its affiliates and any officer, director,
stockholder or employee may or may not have an interest in the
securities whose purchase and sale BlackRock recommends to the Fund.
BlackRock, or any of its affiliates, or any officer, director,
stockholder, employee or any member of their families may take
different actions than those recommended to the Fund by BlackRock
with respect to the same securities. Moreover, BlackRock may refrain
from rendering any advice or services concerning securities of
companies of which any of BlackRock's (or its affiliates') officers,
directors or employees are directors or officers, or companies as to
which BlackRock or any of its affiliates or the officers, directors
and employees of any of them has any substantial economic interest
or possesses material non-public information. Each portfolio manager
also may manage accounts whose investment strategies may at times be
opposed to the strategy utilized for the Fund. In this connection,
it should be noted that certain portfolio managers currently manage
certain accounts that are subject to performance fees. In addition,
certain portfolio managers assist in managing certain hedge funds
and may be entitled to receive a portion of any incentive fees
earned on such funds and a portion of such incentive fees may be
voluntarily or involuntarily deferred. Additional portfolio managers
may in the future manage other such accounts or funds and may be
entitled to receive incentive fees.
As a fiduciary, BlackRock owes a duty of loyalty to its clients and
must treat each client fairly. When BlackRock purchases or sells
securities for more than one account, the trades must be allocated
in a manner consistent with its fiduciary duties. BlackRock attempts
to allocate investments in a fair and equitable manner among client
accounts, with no account receiving preferential treatment. To this
end, BlackRock has adopted a policy that is intended to ensure that
investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve
reasonable efficiency in client transactions and provide BlackRock
with sufficient flexibility to allocate investments in a manner that
is consistent with the particular investment discipline and client
base.
(a)(3) As of August 31, 2007:
Portfolio Manager Compensation
BlackRock's financial arrangements with its portfolio managers, its
competitive compensation and its career path emphasis at all levels
reflect the value senior management places on key resources.
Compensation may include a variety of components and may vary from
year to year based on a number of factors. The principal components
of compensation include a base salary, a discretionary bonus,
participation in various benefits programs and one or more of the
incentive compensation programs established by BlackRock such as its
Long-Term Retention and Incentive Plan and Restricted Stock Program.
Base compensation
Generally, portfolio managers receive base compensation based on
their seniority and/or their position with the firm.
Discretionary compensation
In addition to base compensation, portfolio managers may receive
discretionary compensation, which can be a substantial portion of
total compensation. Discretionary compensation can include a
discretionary cash bonus as well as one or more of the following:
Long-Term Retention and Incentive Plan (LTIP)
The LTIP is a long-term incentive plan that seeks to reward certain
key employees. The plan provides for the grant of awards that are
expressed as an amount of cash that, if properly vested and subject
to the attainment of certain performance goals, will be settled in
cash and/or in BlackRock, Inc. common stock.
Deferred Compensation Program
A portion of the compensation paid to each portfolio manager may be
voluntarily deferred by the portfolio manager into an account that
tracks the performance of certain of the firm's investment products.
Each portfolio manager is permitted to allocate his deferred amounts
among various options, including to certain of the firm's hedge
funds and other unregistered products. In addition, prior to 2005, a
portion of the annual compensation of certain senior managers was
mandatorily deferred in a similar manner for a number of years.
Beginning in 2005, a portion of the annual compensation of certain
senior managers was paid in the form of BlackRock, Inc. restricted
stock units which vest ratably over a number of years.
Options and Restricted Stock Awards
While incentive stock options are not currently being awarded to
BlackRock employees, BlackRock, Inc. previously granted stock
options to key employees, including certain portfolio managers who
may still hold unexercised or unvested options. BlackRock, Inc. also
has a restricted stock award program designed to reward certain key
employees as an incentive to contribute to the long-term success of
BlackRock. These awards vest over a period of years.
Incentive Savings Plans
BlackRock, Inc. has created a variety of incentive savings plans in
which BlackRock employees are eligible to participate, including an
Employee Stock Purchase Plan (ESPP) and a 401(k) plan. The 401(k)
plan may involve a company match of 50% of the employee's pre-tax
contribution of up to 6% of the employee's salary, limited to $4,000
per year. BlackRock also offers a Company Retirement Contribution
equal to 3% to 5% of eligible compensation, depending on BlackRock,
Inc.'s overall net operating income. The company match is made in
cash. The firm's 401(k) plan offers a range of investment options,
including registered investment companies managed by the firm. Each
portfolio manager is eligible to participate in these plans.
Annual incentive compensation for each portfolio manager is a
function of several components: the performance of BlackRock, Inc.,
the performance of the portfolio manager's group within BlackRock,
the investment performance, including risk-adjusted returns and
income generation, of the firm's assets under management or
supervision by that portfolio manager relative to predetermined
benchmarks, and the individual's teamwork and contribution to the
overall performance of these portfolios and BlackRock. Unlike many
other firms, portfolio managers at BlackRock compete against
benchmarks rather than each other. In most cases, including for the
portfolio managers of the Registrant, these benchmarks are the same
as the benchmark or benchmarks against which the investment
performance, including risk-adjusted returns and income generation,
of the Registrant or other accounts are measured. These benchmarks
include customized benchmarks, Lipper peer groups and a subset of
other closed-end taxable debt funds. A group of BlackRock, Inc.'s
officers determines which benchmarks against which to compare the
performance of funds and other accounts managed by each portfolio
manager. With respect to the Registrant, such benchmarks include the
Credit Suisse High Yield Index.
The group of BlackRock, Inc.'s officers then makes a subjective
determination with respect to the portfolio manager's compensation
based on the performance of the funds and other accounts managed by
each portfolio manager relative to the various benchmarks. This
determination may take into consideration the fact that a benchmark
may not perfectly correlate to the way the Registrant or other
accounts are managed, even if it is the benchmark that is most
appropriate for the Registrant or other account. For example, a
benchmark's return may be based on the total return of the
securities comprising the benchmark, but the Registrant or other
account may be managed to maximize income and not total return.
Senior portfolio managers who perform additional management
functions within BlackRock may receive additional compensation for
serving in these other capacities.
(a)(4) Beneficial Ownership of Securities. As of August 31, 2007,
none of Messrs. Amero, Gary, Keenan or Booth beneficially own any
stock issued by the Fund.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable due to no such
purchases during the period covered by this report.
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating Committee will consider nominees to the
Board recommended by shareholders when a vacancy becomes available.
Shareholders who wish to recommend a nominee should send nominations
which include biographical information and set forth the
qualifications of the proposed nominee to the registrant's
Secretary. There have been no material changes to these procedures.
Item 11 - Controls and Procedures
11(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 and Exchange Act of 1934, as amended.
11(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 second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - 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 Corporate High Yield Fund VI, Inc.
By: /s/ Robert C. Doll, Jr.
-------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Corporate High Yield Fund VI, Inc.
Date: October 22, 2007
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/ Robert C. Doll, Jr.
-------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Corporate High Yield Fund VI, Inc.
Date: October 22, 2007
By: /s/ Donald C. Burke
-------------------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock Corporate High Yield Fund VI, Inc.
Date: October 22, 2007