UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22043
Van Kampen Dynamic Credit Opportunities Fund
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(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York 10036
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(Address of principal executive offices) (Zip code)
Ronald Robison
522 Fifth Avenue, New York, New York 10036
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(Name and address of agent for service)
Registrant's telephone number, including area code: 212-762-4000
Date of fiscal year end: 7/31
Date of reporting period: 10/31/07
Item 1. Schedule of Investments.
The Fund's schedule of investments as of the close of the reporting period
prepared pursuant to Rule 12-12 of Regulation S-X is as follows:
VAN KAMPEN DYNAMIC CREDIT OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS | OCTOBER 31, 2007 (UNAUDITED)
PRINCIPAL
AMOUNT STATED
(000) BORROWER COUPON MATURITY * VALUE
--------- ------------------------------ -------------- -------------------- --------------
VARIABLE RATE** SENIOR LOAN INTERESTS 93.2%
AEROSPACE/DEFENSE 0.7%
$ 4,710 DeCrane Aircraft
Holdings, Inc., Term
Loan ...................... 7.99 to 9.25 02/21/13 $ 4,639,390
2,439 IAP Worldwide
Services, Inc., Term
Loan ...................... 11.50 12/30/12 2,216,760
3,000 Wesco Aircraft
Hardware Corp., Term
Loan ...................... 10.95 03/28/14 3,022,500
--------------
9,878,650
--------------
AUTOMOTIVE 2.5%
24,937 Ford Motor Co., Term
Loan ...................... 8.70 12/15/13 24,053,038
2,872 Metokote Corp., Term
Loan ...................... 7.76 to 8.55 11/27/11 2,832,206
950 Navistar International
Corp., Revolving
Credit Agreement .......... 8.23 01/19/12 935,631
3,667 Navistar International
Corp., Term Loan .......... 8.23 01/19/12 3,611,209
1,360 Precision Partners, Inc.,
Term Loan ................. 8.70 10/27/13 1,312,526
1,943 Textron Fastening
Systems, Term Loan ........ 8.70 08/11/13 1,913,456
--------------
34,658,066
--------------
BEVERAGE, FOOD & TOBACCO 6.1%
1,383 Advantage Sales &
Marketing Inc., Term
Loan ...................... 6.82 03/29/13 1,336,557
10,193 Birds Eye Foods Investments,
Inc., Term Loan ........... 10.50 07/11/12 9,836,002
6,626 Coleman Natural Foods,
LLC, Term Loan ............ 10.01 08/22/12 5,996,594
8,990 Culligan International
Co., Term Loan ............ 7.26 11/24/12 8,428,125
9,976 Dole Food Co., Inc.,
Term Loan ................. 5.11 to 8.50 04/12/13 9,705,000
10,000 DSW Holdings, Inc.,
Term Loan ................. 9.13 03/07/12 9,750,000
SEK27,307 Findus Ab, Term Loan
(Sweden) .................. 6.11 to 6.61 11/15/15 4,188,311
EUR 3,185 Foodvest Ltd., Term
Loan (Sweden) ............ 6.59 to 7.09 03/17/14 4,475,038
5,000 FSB Holdings, Inc.,
Term Loan ................. 7.38 03/29/14 4,925,000
EUR 6,000 Iglo Birds Eye, Term
Loan (United Kingdom) ..... 6.55 to 7.19 12/31/14 to 12/31/15 0
1,077 National Dairy Holdings,
L.P., Term Loan ........... 8.82 03/15/12 1,052,959
13,965 Pinnacle Foods Finance,
LLC, Term Loan ............ 7.95 04/02/14 13,533,579
3,413 Southern Wine & Spirits
of America, Inc.,
Term Loan ................. 6.70 05/31/12 3,406,101
3,000 Van Houtte Inc., Term
Loan ...................... 10.70 01/19/15 2,940,000
4,951 Volume Services
America, Inc., Term
Loan ...................... 8.43 to 8.75 10/01/10 4,901,494
--------------
84,474,760
--------------
BROADCASTING - CABLE 4.1%
20,725 Charter
Communications
Operating, LLC, Term
Loan ...................... 6.99 03/06/14 19,951,273
19,338 CSC Holdings Inc.,
Term Loan ................. 6.38 02/24/12 18,854,466
1,500 CW Media Holdings,
Inc., Term Loan (Canada) .. 8.50 02/15/15 1,500,000
EUR12,000 Kabel
Baden-Wuerttemburg,
Term Loan (Germany) ....... 7.26 to 7.76 09/27/14 to 09/27/15 16,923,879
--------------
57,229,618
--------------
BROADCASTING - DIVERSIFIED 0.6%
8,100 Alpha Topco Ltd.,
Term Loan
(United Kingdom) .......... 7.92 to 9.04 12/31/13 to 06/30/14 7,948,950
--------------
BROADCASTING - RADIO 0.3%
1,000 NextMedia Operating,
Inc., Term Loan ........... 9.36 11/15/13 955,000
3,000 Spanish Broadcasting
System, Inc., Term
Loan ...................... 6.95 06/11/12 2,846,250
--------------
3,801,250
--------------
BROADCASTING - TELEVISION 2.0%
1,000 New Vision Television,
Term Loan .................... 8.13 to 11.63 11/01/14 990,000
28,993 Univision
Communications, Inc.,
Term Loan ................. 7.00 to 7.21 09/29/14 27,525,503
--------------
28,515,503
--------------
BUILDINGS & REAL ESTATE 4.0%
2,000 El Ad IDB Las Vegas
LLC, Term Loan ............ 9.12 08/10/08 1,980,000
7,490 Ginn LA CS Borrower,
LLC, Term Loan (b) ........ 8.60 to 12.70 06/08/11 to 06/08/12 5,628,491
5,000 Kyle Acquisition Group,
LLC, Term Loan ............ 8.38 07/20/08 to 07/20/10 4,662,500
1,806 Lake at Las Vegas Joint
Venture, LLC,
Revolving Credit
Agreement (b) ............. 24.60 06/20/12 1,185,649
16,422 Lake at Las Vegas Joint
Venture, LLC, Term
Loan (b) .................. 11.21 to 15.30 01/24/08 to 06/20/12 11,809,910
2,992 Landsource
Communities
Development, LLC,
Term Loan ................. 8.25 02/27/13 2,666,496
3,000 Metroflag BP, LLC,
Term Loan ................. 14.09 07/06/09 2,970,000
2,000 North Las Vegas, Term
Loan ...................... 11.82 05/30/12 1,600,000
4,996 Pivotal Promontory,
Term Loan ................ 9.25 to 13.00 08/31/10 to 08/31/11 4,638,543
2,994 Realogy Corp., Term
Loan ...................... 7.97 to 8.24 10/10/13 2,790,493
4,912 Rhodes Ranch General
Partnership, Term
Loan ...................... 8.70 to 13.11 11/21/10 to 11/21/11 4,078,823
2,985 Shea Capital I, LLC,
Term Loan ................. 7.20 10/27/11 2,559,573
2,338 Shea Mountain House,
LLC, Term Loan ............ 6.75 05/11/11 1,999,308
2,000 Standard Pacific Corp.,
Term Loan ................. 7.27 05/05/13 1,690,000
2,496 Tamarack Resort, LLC,
Term Loan ................. 8.45 to 11.75 05/19/11 2,184,194
1,493 TOUSA, Inc.,
Term Loan .................. 9.82 07/31/12 1,463,583
1,750 WCI Communities, Inc,
Term Loan ................. 8.62 12/23/10 1,682,625
--------------
55,590,188
--------------
BUSINESS EQUIPMENT & SERVICES 2.8%
10,993 Edwards (Cayman
Islands II) Ltd, Term
Loan ...................... 7.54 to 11.29 05/31/14 to 11/30/14 9,982,950
2,000 HydroChem Industrial
Services, Inc., Term
Loan ...................... 10.85 07/12/14 1,990,000
995 NCO Financial Systems,
Term Loan ................. 8.20 to 8.50 05/15/13 968,247
4,988 RGIS Services LLC., Term
Loan ...................... 7.25 04/30/14 4,800,469
1,995 SMG Holdings, Inc.,
Term Loan ................. 8.23 to 8.31 07/27/14 1,935,150
19,950 VNU, Inc.
Term Loan ................. 7.36 08/09/13 19,453,683
--------------
39,130,499
--------------
CHEMICALS, PLASTICS & RUBBER 6.0%
5,992 Arizona Chemical, Co.,
Term Loan ................. 7.54 to 11.01 02/28/13 to 02/28/14 5,627,743
EUR10,931 Borsodchem, Term Loan
(Hungary) ................. 6.98 to 7.48 09/19/14 to 09/09/15 15,619,566
5,000 Brenntag Holdings
GMBH & Co. KG,
Term Loan (Germany) ....... 9.39 07/17/15 4,809,375
EUR 3,000 Cognis Deutschland,
Term Loan (Germany) ....... 6.89 09/01/13 4,197,430
4,964 Fibervisions Delaware
Corp., Term Loan .......... 8.70 03/31/13 4,666,546
10,000 Foamex L.P., Term Loan ....... 9.99 02/12/14 9,183,330
EUR 6,000 Ineos Group Holdings,
Plc, Term Loan
(United Kingdom) .......... 7.24 to 7.74 12/01/13 8,615,871
EUR12,800 Momentive
Performance, Term
Loan ...................... 6.67 12/14/13 18,024,302
14,000 Wellman, Inc., Term
Loan ...................... 9.36 to 12.11 02/10/09 to 02/10/10 12,526,500
--------------
83,270,663
--------------
CONSTRUCTION MATERIAL 1.1%
1,995 Axia, Inc., Term Loan ........ 9.95 12/21/12 1,595,939
8,978 Building Materials Corp.
of America, Term
Loan ...................... 7.81 to 10.81 03/15/14 to 09/15/14 7,839,843
2,992 Building Materials
Holdings Corp., Term
Loan ...................... 7.70 11/10/13 2,768,010
2,000 Custom Building
Products, Inc., Term
Loan ...................... 10.20 04/29/12 1,860,000
1,995 Masonite International
Corp., Term Loan
(Canada) .................. 7.08 to 7.23 04/06/13 1,879,220
--------------
15,943,012
--------------
CONTAINERS, PACKAGING & GLASS 2.3%
5,200 Altivity Packaging LLC,
Term Loan ................. 9.75 12/30/13 5,235,750
8,000 Berlin Packaging LLC,
Term Loan ................. 8.35 to 11.85 08/17/14 to 08/17/15 7,835,000
3,990 Berry Plastics Group,
Inc., Term Loan ........... 7.36 04/03/15 3,882,744
4,042 Berry Plastics Group,
Inc., Term Loan (b) ....... 12.24 06/05/14 3,719,008
6,000 Consolidated Container
Co., LLC, Term Loan ....... 7.04 to 11.04 03/28/14 to 09/28/14 5,463,750
2,799 Solo Cup Co., Term
Loan ...................... 8.45 to 9.75 02/27/11 2,797,907
2,992 Unifrax Corp., Term
Loan ...................... 7.06 05/02/13 2,934,427
--------------
31,868,586
--------------
DIVERSIFIED MANUFACTURING 0.5%
6,992 Euramax International,
Inc., Term Loan ........... 8.24 to 13.24 06/29/12 to 06/29/13 6,393,889
--------------
ECOLOGICAL 1.0%
3,800 Energy Solutions, LLC.,
Term Loan ................. 9.83 12/31/14 3,804,750
10,250 Synagro Technologies,
Inc., Term Loan ........... 10.25 10/02/14 9,942,500
--------------
13,747,250
--------------
EDUCATION & CHILD CARE 1.1%
10,000 Cengage Learning
Holdings II, L.P., Term
Loan ...................... 7.95 07/05/14 9,694,440
500 Educate, Inc., Term
Loan ...................... 10.45 06/14/14 493,750
5,000 Nelson Education Ltd.,
Term Loan (Canada) ........ 11.20 07/05/15 4,850,000
--------------
15,038,190
--------------
ELECTRONICS 2.6%
3,000 Ax Acquisition, Term
Loan ...................... 9.31 08/15/14 2,880,000
4,000 Dealer Computer
Services, Inc., Term
Loan ...................... 10.70 10/26/13 4,010,000
3,000 Infor Enterprise
Solutions Holdings,
Inc., Term Loan ........... 8.95 07/28/12 2,925,000
5,000 Kronos Inc., Term Loan ....... 10.95 06/11/15 4,687,500
7,980 Open Solutions, Inc.,
Term Loan ................. 7.28 01/23/14 7,655,768
4,980 Stratus Technologies,
Inc., Term Loan ........... 8.95 03/29/11 4,706,005
9,854 Verint Systems, Inc.,
Term Loan ................. 8.11 05/25/14 9,632,134
--------------
36,496,407
--------------
ENTERTAINMENT & LEISURE 5.2%
5,000 Bushnell Inc., Term
Loan ...................... 8.88 08/24/13 4,975,000
2,926 Fender Musical
Instruments Corp.,
Term Loan ................. 7.65 06/09/14 2,823,590
47,502 Metro-Goldwyn-Mayer,
Studios Inc., Term
Loan ...................... 8.45 04/08/12 45,661,531
4,987 Panavision, Inc., Term
Loan ...................... 8.44 to 9.04 03/30/11 4,819,051
EUR 7,796 Travelport, Term Loan ........ 6.98 08/23/13 11,080,686
2,500 True Temper Sports,
Inc., Term Loan ........... 8.70 03/15/11 2,412,500
--------------
71,772,358
--------------
FARMING & AGRICULTURE 0.5%
7,000 Wm. Bolthouse Farms, Inc.,
Term Loan ................. 10.70 12/16/13 6,984,691
--------------
FINANCE 5.7%
4,000 Daimler Chrysler
Financial Services,
Term Loan ................. 9.36 08/03/12 3,999,616
2,868 DCS Business Services,
Inc., Term Loan ........... 10.50 02/04/11 2,552,755
EUR15,000 First Data Corp., Term
Loan ...................... 7.48 09/24/14 21,035,647
19,000 First Data Corp., Term
Loan ...................... 7.96 09/24/14 18,354,579
6,490 National Processing
Company Group,
Term Loan ................. 8.13 to 9.50 09/29/12 6,406,067
8,000 Outsourcing Solutions,
Inc., Term Loan ........... 9.86 to 10.32 06/17/10 to 09/30/10 7,960,000
2,789 Oxford Acq. III
Ltd, Term Loan
(United Kingdom) .......... 6.90 05/11/14 2,654,469
1,500 Riskmetrics Group
Holdings, LLC, Term
Loan ...................... 10.70 07/11/14 1,477,500
10,000 RJO Holdings Corp.,
Term Loan ................. 7.76 to 11.51 07/12/14 to 07/12/15 9,156,250
5,493 Transfirst Holdings, Inc.,
Term Loan ................. 7.95 to 11.20 06/15/14 to 06/15/15 5,285,300
--------------
78,882,183
--------------
HEALTH & BEAUTY 1.2%
7,500 American Safety Razor
Co., Term Loan ............ 11.69 01/30/14 7,500,000
6,772 Marietta Intermediate
Holdings., Term
Loan (b) .................. 9.36 to 13.15 12/17/10 to 12/17/11 5,746,728
4,988 Philosophy, Inc., Term
Loan ...................... 6.85 to 6.99 03/16/14 4,463,813
--------------
17,710,541
--------------
HEALTHCARE 4.1%
5,000 Capella Healthcare, Inc.,
Term Loan ................. 7.70 11/30/12 4,831,250
2,814 Community Health
Systems, Inc., Term
Loan ...................... 7.76 07/25/14 2,752,821
4,995 Concentra, Inc., Term
Loan ...................... 7.45 to 10.86 06/25/14 to 06/25/15 4,766,381
16,930 HCA, Inc., Term Loan ......... 7.20 to 7.45 11/17/12 to 11/17/13 16,488,168
2,992 Health Management
Associates, Inc., Term
Loan ...................... 6.50 to 6.95 02/28/14 2,866,133
1,978 HealthCare Partners,
Term Loan ................. 6.58 10/31/13 1,929,000
8,495 Inverness Medical
Innovations, Inc.,
Term Loan ................. 7.20 to 9.45 06/26/14 to 06/26/15 8,445,406
1,994 Matria Healthcare, Inc.,
Term Loan ................. 7.20 to 7.50 01/19/12 1,953,847
6,250 Surgical Care Affiliates,
LLC., Revolving Credit
Agreement ................. 7.45 06/29/13 5,687,500
3,380 United Surgical Partners
International,
Term Loan ................. 7.37 to 7.43 04/19/14 3,259,385
5,000 Viant Holdings Inc.,
Term Loan ................. 7.45 06/25/14 4,687,500
--------------
57,667,391
--------------
HOME & OFFICE FURNISHINGS, HOUSEWARES & DURABLE
CONSUMER PRODUCTS 1.1%
9,070 Hunter Fan Co., Term
Loan ...................... 8.03 to 12.28 04/16/14 to 10/16/14 7,710,551
995 Lenox, Inc., Term Loan ....... 9.32 to 9.57 04/20/13 935,300
4,000 National Bedding Co.,
LLC, Term Loan ............ 9.75 08/31/12 3,710,000
2,923 Quality Home Brands
Holdings, LLC, Term
Loan ...................... 7.64 to 7.70 12/20/12 2,686,909
--------------
15,042,760
--------------
HOTELS, MOTELS, INNS & GAMING 2.8%
2,202 Cannery Casino
Resorts, LLC, Term
Loan ...................... 2.25 to 7.97 05/18/13 2,138,662
GBP 2,610 Gala Group Ltd., Term
Loan
(United Kingdom) .......... 8.80 12/01/12 5,201,031
1,000 Greektown Casino, LLC,
Term Loan ................. 8.00 12/03/12 964,517
3,000 Kuilima Resort Co.,
Term Loan (c) ............. 13.00 09/30/11 1,125,000
8,700 Magnolia Hill, LLC,
Term Loan ................. 8.02 to 14.00 10/30/13 to 04/24/14 8,700,000
7,500 Wembley, Inc., Term
Loan ...................... 7.26 to 9.72 08/23/11 to 07/18/12 7,128,750
4,851 Wimar OPCO LLC, Term
Loan ...................... 7.45 01/03/12 4,741,631
9,149 Yonkers Racing Corp.,
Term Loan ................. 10.88 08/12/11 9,171,743
--------------
39,171,334
--------------
INSURANCE 2.3%
7,481 AmWins Group Inc,
Term Loan ................. 8.05 to 8.17 06/08/13 7,107,188
4,922 C.G. JCF Corp., Term
Loan ...................... 8.32 08/01/14 4,848,495
3,000 Concord Re, Ltd., Term
Loan ...................... 9.23 02/29/12 2,985,000
6,492 HMSC Holdings Corp.,
Term Loan ................. 7.46 to 10.71 04/03/14 to 10/03/14 6,115,357
5,860 Mitchell International,
Inc., Term Loan ........... 10.50 03/28/15 5,391,200
6,000 Vertafore, Inc., Term
Loan ...................... 11.26 to 11.51 01/31/13 5,835,000
--------------
32,282,240
--------------
MEDICAL PRODUCTS & SERVICES 1.6%
20,000 Biomet Inc., Term Loan ....... 8.20 03/25/15 19,930,680
3,000 VWR Funding, Inc.,
Term Loan ................. 7.70 06/29/14 2,903,439
--------------
22,834,119
--------------
MINING, STEEL, IRON & NON-PRECIOUS METALS 1.5%
7,635 John Maneely Co., Term
Loan ...................... 8.50 to 8.61 12/08/13 7,138,921
--------------
NATURAL RESOURCES 0.8%
8,000 CDX Funding, LLC,
Term Loan ................. 11.39 03/31/13 7,720,000
3,000 Dresser, Inc., Term
Loan ...................... 11.13 05/04/15 2,930,625
997 Key Energy
Group, Inc., Term
Loan ...................... 7.25 to 7.86 06/30/12 994,657
--------------
11,645,282
--------------
NON-DURABLE CONSUMER PRODUCTS 6.2%
11,408 Aearo Technologies,
Inc., Term Loan ........... 7.45 to 10.70 09/24/13 to 06/01/14 11,033,813
6,771 Amscan Holdings, Inc.,
Term Loan ................. 7.35 to 7.75 05/25/13 to 11/30/14 6,567,857
5,993 Huish Detergents, Inc.,
Term Loan ................. 7.20 to 9.45 04/26/14 to 10/26/14 5,472,661
9,400 KIK Custom Products,
Inc., Term Loan ........... 7.46 to 10.20 05/31/14 to 11/30/17 8,125,000
5,000 Mattress Holdco,
Inc., Term
Loan ...................... 7.32 to 7.41 01/18/14 4,750,000
2,000 Mega Brands, Inc., Term
Loan (Canada) ............. 7.63 07/26/12 1,922,500
998 Nice Pak Products,
Term Loan ................. 8.46 to 8.65 06/18/14 987,525
EUR20,000 Ontex, Term Loan
(Belgium) ................. 8.35 to 8.85 07/05/12 to 07/05/13 28,608,842
695 Spectrum Brands, Inc.,
Revolving Credit
Agreement ................. 9.12 03/30/13 685,852
13,870 Spectrum Brands, Inc.,
Term Loan ................. 9.24 to 9.75 03/30/13 13,682,755
5,000 Targus Group
International, Inc.,
Term Loan ................. 13.87 05/22/13 4,675,000
--------------
86,511,805
--------------
PAPER & FOREST PRODUCTS 0.3%
4,000 Ainsworth Lumber Co.,
Ltd., Term Loan ........... 7.82 06/26/14 3,860,000
--------------
PHARMACEUTICALS 1.1%
15,000 Mylan Laboratories, Inc.
Term Loan .................. 9.75 10/15/08 14,925,000
--------------
PRINTING & PUBLISHING 10.8%
2,000 Advanstar
Communications, Inc.,
Term Loan ................. 7.45 05/31/14 1,905,000
10,000 American Media
Operations, Inc., Term
Loan ...................... 8.80 01/31/13 9,887,500
2,117 Ascend Media Holdings,
LLC, Term Loan ............ 9.45 01/31/12 904,893
1,202 Canon Communications,
LLC, Term Loan ............ 7.82 05/31/11 1,194,768
1,430 Dex Media West, LLC,
Term Loan ................. 6.26 to 7.08 03/09/10 1,416,838
1,000 DRI Holdings, Inc.,
Term Loan ................. 8.20 to 8.31 07/03/14 970,000
4,000 Endurance Business
Media, Inc., Term
Loan ...................... 12.01 01/26/14 3,960,000
5,000 FSC Acquisition, LLC,
Term Loan ................. 7.47 to 7.50 03/08/14 4,156,250
5,000 Gatehouse Media, Inc.,
Term Loan ................. 7.25 to 7.51 08/28/14 4,665,625
7,769 Haights Cross
Operating Co.,
Term Loan ................. 9.06 to 10.06 08/20/08 7,738,393
10,000 Idearc, Inc., Term Loan ...... 6.70 11/17/13 9,727,500
2,000 Intermedia Outdoor,
Inc., Term Loan ........... 8.20 01/31/13 1,950,000
9,769 MediaNews Group, Inc.,
Term Loan ................. 6.64 to 7.14 12/30/10 to 08/02/13 9,318,506
11,750 Merrill Communications,
LLC, Term Loan ............ 11.25 11/15/13 11,573,750
5,984 Penton Media, Inc.,
Term Loan ................. 7.23 to 9.98 02/01/13 to 02/01/14 5,665,755
EUR 4,000 Primacom, Term Loan
(Germany) ................. 7.74 to 8.24 09/25/10 5,747,118
4,500 Primedia, Inc., Term
Loan ...................... 7.07 to 7.45 08/01/14 4,387,500
3,597 R.H. Donnelley, Inc.,
Term Loan ................. 6.70 to 7.20 12/31/09 to 06/30/11 3,552,784
9,970 Riverdeep Interactive
Learning USA, Inc.,
Term Loan (Ireland) ....... 7.95 12/20/13 9,928,330
4,564 Thomas Nelson, Inc.,
Term Loan ................. 7.31 06/12/12 4,375,774
1,000 Thomson Medical,
Term Loan ................. 12.53 04/26/15 997,500
49,875 Tribune Co., Term Loan ....... 8.24 05/19/14 46,433,625
--------------
150,457,409
--------------
RESTAURANTS & FOOD SERVICE 0.3%
1,596 Center Cut Hospitality,
Inc., Term Loan ........... 7.50 07/06/14 1,586,025
142 OSI Restaurant
Partners, LLC,
Revolving Credit
Agreement ................. 7.95 06/14/13 137,340
1,858 OSI Restaurant
Partners, LLC, Term
Loan ...................... 7.06 06/14/13 1,794,660
1,000 Sagittarius Restaurants,
LLC, Term Loan ........... 7.45 03/29/13 925,000
--------------
4,443,025
--------------
RETAIL - OIL & GAS 0.7%
9,493 Pantry, Inc. (The), Term
Loan ...................... 5.39 to 6.88 05/15/08 to 05/15/14 9,214,332
--------------
RETAIL - STORES 2.5%
15,000 Dollar General Corp,
Term Loan ................. 7.71 to 8.29 07/06/14 14,328,440
6,975 General Nutrition
Centers, Inc., Term
Loan ...................... 7.48 09/16/13 6,654,590
9,950 Michaels Stores, Inc.,
Term Loan ................. 7.38 to 7.63 10/31/13 9,554,017
2,000 Neiman Marcus Group,
Inc., Term Loan ........... 7.45 04/06/13 1,971,584
1,995 Sally Holdings, Inc.,
Term Loan ................. 8.01 11/16/13 1,960,050
--------------
34,468,681
--------------
TELECOMMUNICATIONS - EQUIPMENT & SERVICES 1.9%
EUR10,000 Fibernet, Term Loan
(Bulgaria) ................ 6.91 to 7.41 12/20/14 to 12/20/15 14,413,062
EUR 8,000 Orion, Term Loan
(Germany) ................. 6.49 to 7.98 02/02/14 11,454,398
--------------
25,867,460
--------------
TELECOMMUNICATIONS - LOCAL EXCHANGE CARRIERS 1.4%
1,990 CavTel Holdings, LLC,
Term Loan ................. 9.95 12/31/12 1,980,025
8,434 Global Tel*Link Corp.,
Term Loan ................. 5.10 to 8.70 02/14/13 8,370,900
5,586 Hawaiian Telcom
Communications, Inc.,
Term Loan ................ 7.45 06/01/14 5,469,627
2,793 NuVox Transition
Subsidiary, LLC, Term
Loan ...................... 8.66 to 8.97 05/31/14 2,771,181
1,556 Sorenson
Communications, Inc.,
Term Loan ................. 8.00 04/27/14 1,541,390
--------------
20,133,123
--------------
TELECOMMUNICATIONS - WIRELESS 2.0%
11,466 Asurion Corp., Term
Loan ...................... 8.36 07/03/14 11,233,565
16,905 MetroPCS Wireless,
Inc., Term Loan ........... 7.50 to 7.63 11/03/13 16,606,865
--------------
27,840,430
--------------
TEXTILES & LEATHER 0.5%
2,000 Gold Toe Investment
Corp., Term Loan .......... 10.99 04/30/14 1,970,000
5,000 Levi Strauss & Co, Term
Loan ...................... 7.57 03/27/14 4,727,085
--------------
6,697,085
--------------
TRANSPORTATION - CARGO 0.6%
9,000 JHCI Acquisitions Inc.,
Term Loan ................. 10.70 12/19/14 7,920,000
--------------
TRANSPORTATION - PERSONAL 0.3%
340 Coach America Holdings Inc.
Term Loan ................. 7.98 to 11.71 04/20/14 to 10/20/14 312,381
5,500 Coach America
Holdings, Inc.,
Revolving Credit
Agreement ................. 5.20 04/20/14 4,620,000
--------------
4,932,381
--------------
UTILITIES 1.3%
5,000 Bicent Power LLC, Term
Loan ...................... 9.25 12/31/14 4,731,250
2,900 First Light Power
Resources, Inc., Term
Loan ...................... 9.75 05/01/14 2,769,500
5,989 NRG Energy, Inc., Term
Loan ...................... 6.95 02/01/13 5,873,705
5,000 TPF Generation
Holdings, LLC, Term
Loan ...................... 9.45 12/15/14 4,787,500
--------------
18,161,955
--------------
TOTAL VARIABLE RATE** SENIOR LOAN INTERESTS 93.2% .................. 1,300,549,987
--------------
NOTES ** 17.1%
AUTOMOTIVE 0.7%
10,000 Del Laboratories, Inc. (d) ... 10.36 11/01/11 10,250,000
--------------
BROADCASTING - CABLE 2.3%
EUR21,500 Kabel Deutschland
(Germany) ................. 10.63 to 10.75 07/01/14 31,741,164
--------------
BUILDINGS & REAL ESTATE 1.7%
EUR14,865 Eco-bat Finance
(United Kingdom) (e) ......... 10.13 01/31/13 22,959,221
--------------
CONSTRUCTION MATERIAL 0.2%
2,000 Compression Polymers
Corp. ..................... 12.13 07/01/12 2,010,000
--------------
CHEMICALS, PLASTICS & RUBBER 0.3%
5,000 Cognis GMBH
(Germany) (e) ............. 7.53 09/15/13 4,787,500
--------------
CONTAINERS, PACKAGING & GLASS 2.5%
EUR10,000 Ardagh Glass Finance
Bv (Ireland) (e) .......... 8.88 07/01/13 14,775,200
EUR 2,000 Oi European Group Bv
(Netherlands) (e) ......... 6.88 03/31/17 2,864,506
EUR 6,950 Pregis Corp. ................. 9.21 04/15/13 10,351,911
EUR 5,000 Rexam Plc
(United Kingdom) .......... 6.75 06/29/67 7,025,173
--------------
35,016,790
ELECTRONICS 1.7%
EUR18,450 Invensys Plc
(United Kingdom) (e) ...... 9.88 03/15/11 23,653,955
--------------
FINANCE 0.3%
EUR 2,700 Ford Credit Europe
(United Kingdom) .......... 7.13 01/15/13 3,497,763
--------------
HOTELS, MOTELS, INNS & GAMING 1.0%
2,000 Codere Fin Luxembourg
SA (Luxembourg) (e) ....... 8.25 06/15/15 2,962,283
EUR 4,000 Lottomatica SPA
(Italy) (e) ............... 8.25 03/31/66 5,982,507
EUR 4,000 Peermont Global Ltd
(South Africa) (e) ........ 7.75 04/30/14 5,576,913
--------------
14,521,703
--------------
MINING, STEEL, IRON & NON-PRECIOUS METALS 1.0%
EUR 2,000 FMG Finance Pty Ltd
(Australia) (e) .......... 9.75 09/01/13 3,223,022
9,000 FMG Finance Pty Ltd
(Australia) (e) .......... 10.63 09/01/13 to 09/01/16 10,710,000
--------------
13,933,022
--------------
TELECOMMUNICATIONS - WIRELESS 4.1%
EUR11,325 Magyar Telecom (Invtel)
(Netherlands) (e) ......... 10.75 08/15/12 17,778,721
EUR29,000 Wind Acquisition Fin SA
(Luxembourg) (e) .......... 9.75 to 10.75 12/01/15 38,523,634
--------------
56,302,355
--------------
TRANSPORTATION - CARGO 1.2%
EUR10,900 Cb Bus Ab (Sweden) ........... 9.13 08/01/09 16,104,968
--------------
UTILITIES 0.3%
GBP 2,000 Intergen Nv
(Netherlands) (e) ......... 9.50 06/30/17 4,358,733
--------------
TOTAL NOTES ** 17.1% ................................................. 239,137,174
--------------
TOTAL LONG-TERM INVESTMENTS 110.8%
(Cost $1,567,358,090) ...................................................... 1,539,687,161
--------------
SHORT-TERM INVESTMENTS
REPURCHASE AGREEMENTS 8.7%
State Street Bank & Trust Co. ($120,500,000 par collateralized by
U.S. Government obligations in a pooled cash account,
interest rate of 4.45%, dated 10/31/07, to be sold on 11/01/07
at $120,514,895) (a) ....................................................... 120,500,000
TIME DEPOSIT 0.3%
State Street Bank & Trust Corp. ($4,515,911 par, 0.70%
coupon, dated 10/31/07, to be sold on 11/01/07 at $4,515,998) .............. 4,515,911
--------------
TOTAL SHORT-TERM INVESTMENTS 9.0%
(Cost $125,015,911) ........................................................ 125,015,911
--------------
TOTAL INVESTMENTS 119.8%
(Cost $1,692,374,001) ...................................................... 1,664,703,072
FOREIGN CURRENCY 1.2%
(Cost $16,388,981) ......................................................... 16,564,320
LIABILITIES IN EXCESS OF OTHER ASSETS (21.0%) ................................. (289,587,757)
--------------
NET ASSETS 100.0% ............................................................. $1,391,679,635
--------------
Par Amounts are denominated in US currency unless otherwise noted.
Percentages are calculated as a percentage of net assets.
(a) All or a portion of this security is designated in connection with unfunded
loan commitments.
(b) Payment-in-kind security.
(c) This Senior Loan interest is non-income producing.
(d) Variable rate security. Interest rate shown is that in effect at October
31, 2007.
(e) 144A-Private Placement security which is exempt from registration under
Rule 144A of the Securities Act of 1933, as amended. This security may only
be resold in transactions exempt from registration which are normally those
transactions with qualified institutional buyers.
* Senior Loans in the Fund's portfolio generally are subject to mandatory
and/or optional prepayment. Because of these mandatory prepayment
conditions and because there may be significant economic incentives for a
Borrower to prepay, prepayments of Senior Loans in the Fund's portfolio may
occur. As a result, the actual remaining maturity of Senior Loans held in
the Fund's portfolio may be substantially less than the stated maturities
shown. Although the Fund is unable to accurately estimate the actual
remaining maturity of individual Senior Loans, the Fund estimates that the
actual average maturity of the Senior Loans held in its portfolio will
be approximately 18-24 months.
** Senior Loans in which the Fund invests generally pay interest at rates
which are periodically redetermined by reference to a base lending rate
plus a premium. These base lending rates are generally (i) the lending rate
offered by one or more major European banks, such as the London Inter-Bank
Offered Rate ("LIBOR"), (ii) the prime rate offered by one or more major
United States banks or (iii) the certificate of deposit rate. Senior Loans
are generally considered to be restricted in that the Fund ordinarily is
contractually obligated to receive approval from the Agent Bank and/or
Borrower prior to the disposition of a Senior Loan.
NR - Not rated
EUR - Euro
GBP - Great Britain Pound
SEK - Swedish Krona
SWAP AGREEMENTS OUTSTANDING AS OF OCTOBER 31, 2007:
CREDIT DEFAULT SWAPS
PAY/
RECEIVE NOTIONAL
BUY/SELL FIXED EXPIRATION AMOUNT UPFRONT
COUNTERPARTY REFERENCE ENTITY PROTECTION RATE DATE (000 PAYMENTS VALUE
------------ -------------------- ---------- ------- ---------- --------- --------- -----------
Goldman Sachs
Credit, Standard Pacific Sell 4.77% 09/20/12 $ 5,000 $ 0 $(1,080,443)
Partmers, L.P. Corporation
Goldman Sachs
Credit, K. Hovnanian Sell 4.69 09/20/12 5,000 0 (677,007)
Partmers, L.P. Enterprises. Inc.
Goldman Sachs
Credit, LCDX.NA.9 Sell 1.20 06/20/12 40,000 (130,000) (585,522)
Partmers, L.P.
Goldman Sachs
Credit, CDX.NA.HY.9 Buy 3.75 12/20/12 50,000 (329,861) 971,251
Partmers, L.P.
UBS AG CDX.NA.HY.9 Buy 3.75 12/20/12 40,000 (263,889) 777,000
Goldman Sachs Peermont
Credit, Global Limited Sell 3.50 09/20/12 7,243 0 (52,940)
Partmers, L.P.
Goldman Sachs UPC
Credit, Holding B.V Sell 3.45 09/20/12 7,243 0 (52,892)
Partmers, L.P.
Bank of WDAC
America N.A. Subsidiary Corp Sell 3.30 09/20/12 7,243 0 52,079
Credit
Suisse Codere Finance
International (Luxembourg) S.A. Sell 3.42 09/20/12 7,243 0 2,504
Bank of Kabel Deutsche-
America N.A. land GMBH Sell 3.05 09/20/10 7,243 0 43,550
Bank of Seat Pagine
America N.A. Gialle S.P.A. Sell 3.35 09/20/12 7,243 0 206,762
UBS AG M-Real OYJ Sell 3.05 09/20/08 7,243 0 28,718
Goldman Sachs
Credit, M-Real OYJ Sell 3.45 09/20/09 7,243 0 6,333
Partmers, L.P.
Goldman Sachs
Credit, M-Real OYJ Sell 3.10 09/20/08 7,243 0 32,340
Partmers, L.P.
Citigroup
Global Markets International Sell 3.50 09/20/12 7,243 0 186,919
Limited Power PLC
Goldman Sachs
Credit, British Energy Sell 3.50 12/20/12 21,728 0 396,636
Partmers, L.P. Holdings PLC
Goldman Sachs
Credit, Gala Group Sell 3.45 12/20/12 7,243 0 42,862
Partmers, L.P. Finance Ltd.
Goldman Sachs
Credit, JSG Holding Sell 3.00 09/20/12 7,243 0 27,352
Partmers, L.P. PLC
-----------
TOTAL CREDIT DEFAULT SWAPS $ 325,505
-----------
FORWARD FOREIGN CURRENCY CONTRACTS OUTSTANDING AS OF OCTOBER 31, 2007:
UNREALIZED
APPRECIATION/
IN EXCHANGE FOR CURRENT VALUE DEPRECIATION
--------------- ------------- -------------
LONG CONTRACTS:
Euro
5,998,000 expiring 1/16/08........... US$ 8,696,293 $ 226,517
7,117,250 expiring 1/16/08........... US$ 10,319,055 149,216
1,907,941 expiring 1/16/08........... US$ 2,766,258 46,106
2,549,898 expiring 1/16/08........... US$ 3,697,009 13,299
400,989 expiring 1/16/08............. US$ 581,380 1,049
-----------
$ 436,187
-----------
SHORT CONTRACTS:
Euro
176,904,839 expiring 1/16/08......... US$ 256,488,208 (7,193,908)
5,718,730 expiring 1/16/08........... US$ 8,291,389 (191,952)
5,916,111 expiring 1/16/08........... US$ 8,577,565 (160,122)
5,185,000 expiring 1/16/08........... US$ 7,517,552 (166,778)
23,747,500 expiring 1/16/08.......... US$ 34,430,679 (697,355)
3,382,416 expiring 1/16/08........... US$ 4,904,047 (67,393)
7,567,507 expiring 1/16/08........... US$ 10,971,867 (267,628)
3,969,134 expiring 1/16/08........... US$ 5,754,710 (90,518)
6,490,469 expiring 1/16/08........... US$ 9,410,307 (119,200)
1,613,150 expiring 1/16/08........... US$ 2,338,850 (15,366)
-----------
(8,970,220)
-----------
Pound Sterling
2,120,000 expiring 1/16/08........... US$ 4,396,980 (76,420)
-----------
Swedish Krona
26,044,422 expiring 1/16/08.......... US$ 4,014,982 (90,737)
325,646 expiring 1/16/08............. US$ 51,327 (1,142)
-----------
(91,879)
-----------
TOTAL FORWARD FOREIGN CURRENCY CONTRACTS $(8,702,332)
-----------
SUMMARY OF LONG-TERM INVESTMENTS BY COUNTRY CLASSIFICATION
COUNTRY VALUE PERCENT OF NET ASSETS
------- -------------- ---------------------
United States 1,158,241,556 75.2%
United Kingdom 81,556,432 5.3%
Germany 79,660,864 5.2%
Luxembourg 41,485,917 2.7%
Belgium 28,608,843 1.9%
Netherlands 25,001,960 1.6%
Sweden 24,768,317 1.6%
Ireland 24,703,530 1.6%
Hungary 15,619,567 1.0%
Bulgaria 14,413,063 0.9%
Australia 13,933,022 0.9%
Canada 10,151,719 0.7%
Cayman Islands 9,982,950 0.6%
Italy 5,982,507 0.4%
South Africa 5,576,914 0.4%
-------------- -----
$1,539,687,161 100.0%
-------------- -----
RATINGS ALLOCATION AS OF 10/31/07
BBB/Baa 0.6%
BB/Ba 28.7%
B/B 42.3%
CCC/Caa 7.5%
Non-Rated 20.9%
Ratings allocations are as a percentage of debt obligations. Ratings allocations
based upon ratings as issued by Standard and Poor's and Moody's, respectively.
Bank loans rated below BBB by Standard and Poor's or Baa by Moody's are
considered to be below investment grade.
Item 2. Controls and Procedures.
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund in this Form N-Q
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the Fund's internal control over financial
reporting that occurred during the registrant's fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the Fund's
internal control over financial reporting.
Item 3. Exhibits.
(a) A certification for the Principal Executive Officer of the registrant
is attached hereto as part of EX-99.cert.
(b) A certification for the Principal Financial Officer of the registrant
is attached hereto as part of EX-99.cert.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Van Kampen Dynamic Credit Opportunities Fund
By: /s/ Ronald E. Robison
---------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: December 20, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Ronald E. Robison
---------------------
Name: Ronald E. Robison
Title: Principal Executive Officer
Date: December 20, 2007
By: /s/ Stuart N. Schuldt
---------------------
Name: Stuart N. Schuldt
Title: Principal Financial Officer
Date: December 20, 2007