UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07456
Name of Fund: BlackRock Senior High Income Fund, 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 Senior High Income Fund, Inc., 800 Scudders Mill
Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011,
Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (800) 882-0052
Date of fiscal year end: 02/31/08
Date of reporting period: 03/01/07 - 08/31/07
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES
BLACKROCK SOLUTIONS
BlackRock Senior High Income
Fund, Inc. (ARK)
SEMI-ANNUAL REPORT
AUGUST 31, 2007 (UNAUDITED)
(BLACKROCK logo)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
BlackRock Senior High Income Fund, Inc. seeks to provide shareholders with
high current income by investing at least 80% of its net assets plus any
borrowings for investment purposes in senior debt obligations, including
corporate loans and both privately placed and publicly offered corporate bonds
and notes. Senior debt obligations generally include debt obligations of a
company that have a contractual right to repayment in the event of a default
or bankruptcy of the company with priority over existing or future subordinated
debt (if any), preferred stock or common stock of the same company. Senior debt
ranks equally in right of payment to all other debt of the company other than
debt that is contractually subordinated in right of payment to such senior
debt. Senior debt in which the Fund invests may be secured by collateral or
may be unsecured. Certain senior debt obligations may be effectively junior to
other debt obligations of the company that are secured by collateral, as well
as to any indebtedness of such company's subsidiaries or affiliates. The Fund
invests primarily in debt obligations that are rated in the lower rating
categories of the established rating services (Baa or lower by Moody's
Investors Service, Inc. or BBB or lower by Standard & Poor's) or unrated debt
obligations of comparable quality. The Fund will generally not invest in
securities rated at the time of purchase, Caa/CCC or below by each of the major
ratings agencies that rate the securities.
This report, including the financial information herein, is transmitted to
shareholders of BlackRock Senior High Income Fund, Inc. for their information.
It is not a prospectus. Past performance results shown in this report should
not be considered a representation of future performance. The Fund leverages
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. 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 Senior High Income Fund, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
(GO PAPERLESS... logo)
It's Fast, Convenient, & Timely!
BlackRock Senior High Income Fund, Inc.
The Benefits and Risks of Leveraging
BlackRock Senior High Income Fund, Inc. (the "Fund") 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 income earned by the
Fund on its longer-term portfolio investments. To the extent that 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
will be 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 the 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.
BLACKROCK SENIOR HIGH INCOME FUND, 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,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
Fund President and Director
THIS PAGE NOT PART OF YOUR FUND REPORT
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Fund Summary as of August 31, 2007 (Unaudited)
Fund Information
Symbol on New York Stock Exchange ARK
Initial Offering Date April 30, 1993
Yield on Closing Market Price as of 8/31/07 ($5.64)* 10.00%
Current Monthly Distribution per share of Common Stock** $.047
Current Annualized Distribution per share of Common Stock** $.564
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 2/28/07 Change High Low
Market Price $5.64 $6.53 (13.63%) $6.66 $4.55
Net Asset Value $5.76 $6.17 (6.65%) $6.22 $5.70
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Asset Mix 8/31/07 2/28/07
Corporate Bonds 55% 59%
Floating Rate Loan Interests 45 41
Common Stocks --* --*
Warrants --* --*
Other Interests -- --
* Amount is less than 1%.
Credit Quality Allocations*
Credit Rating 8/31/07 2/28/07
BBB/Baa 1% --++
BB/Ba 25 20%
B/B 65 69
CCC/Caa 5 6
CC/Ca 1 1
NR (Not Rated) 3 4
Other** --++ --++
* Using the highest of S&P's and Moody's Ratings.
** Includes portfolio holdings in common stocks, warrants and other
interests.
++ Amount is less than 1%.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Schedule of Investments as of August 31, 2007 (Unaudited) (in U.S. dollars)
Face
Amount Corporate Bonds Value
Aerospace & Defense--1.3%
$ 4,210,000 Vought Aircraft Industries, Inc., 8%
due 7/15/2011 $ 4,083,700
Auto Components--2.3%
The Goodyear Tire & Rubber Co. (k):
5,070,000 9.135% due 12/01/2009 (b) 5,070,000
1,000 8.625% due 12/01/2011 1,016
1,495,000 Lear Corp., 8.75% due 12/01/2016 1,382,875
1,075,000 Metaldyne Corp., 11% due 6/15/2012 962,125
Venture Holdings Co. LLC:
700,000 12% due 6/01/2009 (f) 0
3,325,000 Series B, 9.50% due 7/01/2005 (n) 9,975
--------------
7,425,991
Biotechnology--0.8%
2,690,000 Angiotech Pharmaceuticals, Inc., 9.371%
due 12/01/2013 (b) 2,663,100
Building Products--1.6%
1,500,000 CPG International I, Inc., 10.50% due 7/01/2013 1,470,000
3,350,000 Goodman Global Holding Co., Inc., 7.875%
due 12/15/2012 3,316,500
430,000 Momentive Performance Materials, Inc.,
10.125% due 12/01/2014 (h)(k) 399,900
--------------
5,186,400
Capital Markets--0.3%
1,000,000 Pennant CBO Ltd., 13.43% due 3/14/2011 850,000
Chemicals--4.2%
610,000 American Pacific Corp., 9% due 2/01/2015 600,850
1,350,000 ArCo Chemical Co., 9.80% due 2/01/2020 1,404,000
4,382,000 GEO Specialty Chemicals, Inc., 13.85%
due 12/31/2009 (a) 3,615,150
1,500,000 Hexion U.S. Finance Corp., 10.058%
due 11/15/2014 (b) 1,530,000
1,170,000 Ineos Group Holdings Plc, 8.50%
due 2/15/2016 (k) 1,076,400
4,690,000 NOVA Chemicals Corp., 8.484%
due 11/15/2013 (b) 4,549,300
1,000,000 PolyOne Corp., 6.89% due 9/22/2008 1,000,000
--------------
13,775,700
Commercial Banks--0.2%
500,000 Investcorp SA, 7.54% due 10/21/2008 502,241
Commercial Services & Supplies--0.2%
550,000 PNA Intermediate Holding Corp., 12.558%
due 2/15/2013 (b)(k) 529,375
Communications Equipment--0.1%
240,000 Nortel Networks Ltd., 9.61%
due 7/15/2011 (b)(k) 240,600
Containers & Packaging--3.6%
100,000 Berry Plastics Holding Corp., 9.569%
due 9/15/2014 (b) 99,000
3,500,000 Clondalkin Acquisition BV, 7.359%
due 12/15/2013 (b)(k) 3,325,000
215,000 Graphic Packaging International Corp., 9.50%
due 8/15/2013 217,150
4,285,000 Packaging Dynamics Finance Corp., 10%
due 5/01/2016 (k) 4,290,356
Face
Amount Corporate Bonds Value
Containers & Packaging (concluded)
Smurfit-Stone Container Enterprises, Inc.:
$ 800,000 8.375% due 7/01/2012 $ 784,000
1,300,000 8% due 3/15/2017 1,239,875
2,000,000 Wise Metals Group LLC, 10.25% due 5/15/2012 1,800,000
--------------
11,755,381
Diversified Financial Services--2.0%
Ford Motor Credit Co. LLC:
680,000 5.80% due 1/12/2009 640,745
2,240,000 8.11% due 1/13/2012 (b) 2,051,412
250,000 9.81% due 4/15/2012 (b) 251,839
4,000,000 Highland Legacy Ltd., 11.621%
due 6/01/2011 (b) 3,611,200
--------------
6,555,196
Diversified Telecommunication Services--1.0%
1,025,000 Qwest Corp., 8.944% due 6/15/2013 (b) 1,081,375
2,000,000 Time Warner Telecom Holdings, Inc., 9.25%
due 2/15/2014 2,070,000
--------------
3,151,375
Electric Utilities--0.8%
2,620,000 NSG Holdings LLC, 7.75% due 12/15/2025 (i)(k) 2,544,675
Electronic Equipment & Instruments--2.1%
3,000,000 Communications & Power Industries, Inc., 8%
due 2/01/2012 3,015,000
NXP BV:
3,125,000 8.11% due 10/15/2013 (b) 2,832,031
950,000 9.50% due 10/15/2015 821,750
175,000 Sanmina-SCI Corp., 8.125% due 3/01/2016 151,375
--------------
6,820,156
Energy Equipment & Services--2.5%
280,000 Compagnie Generale de Geophysique-Veritas,
7.75% due 5/15/2017 282,800
5,000,000 Ocean RIG ASA, 9.36% due 4/04/2011 (b) 4,937,500
3,025,000 SemGroup LP, 8.75% due 11/15/2015 (k) 2,911,563
--------------
8,131,863
Gas Utilities--0.5%
1,525,000 El Paso Performance-Linked Trust, 7.75%
due 7/15/2011 (k) 1,562,425
Health Care Equipment & Supplies--0.3%
1,000,000 The Cooper Cos., Inc., 7.125% due 2/15/2015 955,000
Health Care Providers & Services--1.7%
2,130,000 Community Health Systems, Inc., 8.875%
due 7/15/2015 (k) 2,127,337
3,000,000 Tenet Healthcare Corp., 7.375% due 2/01/2013 2,490,000
Universal Hospital Services, Inc. (k):
500,000 8.50% due 6/01/2015 (h) 464,028
460,000 8.759% due 6/01/2015 (b) 443,900
--------------
5,525,265
Hotels, Restaurants & Leisure--5.4%
3,000,000 American Real Estate Partners LP, 7.125%
due 2/15/2013 (k) 2,820,000
4,475,000 CCM Merger, Inc., 8% due 8/01/2013 (k) 4,273,625
550,000 Galaxy Entertainment Finance Co. Ltd., 9.875%
due 12/15/2012 (k) 558,250
1,210,000 Little Traverse Bay Bands of Odawa Indians,
10.25% due 2/15/2014 (k) 1,216,050
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Schedule of Investments (continued) (in U.S. dollars)
Face
Amount Corporate Bonds Value
Hotels, Restaurants & Leisure (concluded)
$ 300,000 Penn National Gaming, Inc., 6.75%
due 3/01/2015 $ 300,750
1,350,000 Pinnacle Entertainment, Inc., 7.50%
due 6/15/2015 (k) 1,242,000
690,000 Shingle Springs Tribal Gaming Authority,
9.375% due 6/15/2015 (k) 679,650
500,000 Snoqualmie Entertainment Authority, 9.063%
due 2/01/2014 (b)(k) 488,125
1,000,000 Station Casinos, Inc., 7.75% due 8/15/2016 957,500
1,650,000 Tropicana Entertainment, LLC, 9.625%
due 12/15/2014 (k) 1,221,000
1,500,000 Tunica-Biloxi Gaming Authority, 9%
due 11/15/2015 (k) 1,500,000
2,450,000 Universal City Florida Holding Co. I,
10.106% due 5/01/2010 (b) 2,474,500
--------------
17,731,450
Household Durables--0.4%
1,270,000 Jarden Corp., 7.50% due 5/01/2017 1,187,450
Leisure Equipment & Products--1.4%
3,525,000 Quiksilver, Inc., 6.875% due 4/15/2015 3,260,625
1,750,000 True Temper Sports, Inc., 8.375% due 9/15/2011 1,365,000
--------------
4,625,625
Machinery--2.6%
2,700,000 Ahern Rentals, Inc., 9.25% due 8/15/2013 2,659,500
1,540,000 Esco Corp., 9.235% due 12/15/2013 (b)(k) 1,509,200
1,838,000 Invensys Plc, 9.875% due 3/15/2011 (k) 1,952,875
RBS Global, Inc.:
740,000 9.50% due 8/01/2014 747,400
835,000 8.875% due 9/01/2016 816,213
770,000 Titan International, Inc., 8% due 1/15/2012 758,912
--------------
8,444,100
Marine--0.3%
1,000,000 Navios Maritime Holdings, Inc., 9.50%
due 12/15/2014 1,021,250
Media--6.6%
Affinion Group, Inc.:
120,000 10.125% due 10/15/2013 120,000
395,000 11.50% due 10/15/2015 395,000
3,175,000 Cablevision Systems Corp. Series B, 9.82%
due 4/01/2009 (b) 3,254,375
Charter Communications Holdings LLC:
1,750,000 10% due 4/01/2009 1,745,625
1,319,000 11.125% due 1/15/2011 1,282,727
660,000 10% due 5/15/2011 630,300
1,960,000 Idearc, Inc., 8% due 11/15/2016 1,935,500
Intelsat Bermuda Ltd. (b):
275,000 11.409% due 6/15/2013 282,562
1,280,000 8.886% due 1/15/2015 1,289,600
1,875,000 Mediacom LLC, 9.50% due 1/15/2013 1,875,000
350,000 NTL Cable Plc, 8.75% due 4/15/2014 354,375
245,000 Network Communications, Inc., 10.75%
due 12/01/2013 245,000
1,350,000 Nielsen Finance LLC, 10% due 8/01/2014 1,383,750
1,325,000 Paxson Communications Corp., 8.61%
due 1/15/2012 (b)(k) 1,306,781
5,250,000 Rainbow National Services LLC, 8.75%
due 9/01/2012 (k) 5,374,688
--------------
21,475,283
Face
Amount Corporate Bonds Value
Metals & Mining--4.0%
$1,295,000 Aleris International, Inc., 9% due
12/15/2014 (h) $ 1,208,012
2,250,000 Compass Minerals International, Inc.
Series B, 12% due 6/01/2013 (j) 2,261,250
5,430,000 Freeport-McMoRan Copper & Gold, Inc.,
8.564% due 4/01/2015 (b) 5,592,900
1,731,000 Indalex Holding Corp. Series B, 11.50%
due 2/01/2014 1,622,812
2,225,000 RathGibson, Inc., 11.25% due 2/15/2014 2,227,781
--------------
12,912,755
Oil, Gas & Consumable Fuels--3.5%
200,000 Berry Petroleum Co., 8.25% due 11/01/2016 197,000
1,500,000 Chaparral Energy, Inc., 8.50% due 12/01/2015 1,342,500
1,580,000 Compton Petroleum Finance Corp., 7.625%
due 12/01/2013 1,501,000
4,530,000 Peabody Energy Corp., 7.375% due 11/01/2016 4,563,975
2,985,000 Sabine Pass LNG LP, 7.50% due 11/30/2016 2,902,913
725,000 Williams Cos., Inc., 8.625% due 6/01/2010 756,269
--------------
11,263,657
Paper & Forest Products--9.5%
3,275,000 Abitibi-Consolidated, Inc., 9.194%
due 6/15/2011 (b) 2,816,500
Ainsworth Lumber Co. Ltd. (b):
4,575,000 9.11% due 10/01/2010 3,522,750
2,500,000 9.36% due 4/01/2013 1,900,000
Boise Cascade LLC:
1,100,000 8.235% due 10/15/2012 (b) 1,089,000
350,000 7.125% due 10/15/2014 322,000
7,400,000 Bowater, Inc., 8.694% due 3/15/2010 (b) 6,660,066
1,775,000 Domtar, Inc., 7.125% due 8/15/2015 1,650,750
5,175,000 NewPage Corp., 11.606% due 5/01/2012 (b) 5,485,500
5,150,000 Smurfit Kappa Funding Plc, 7.75%
due 4/01/2015 4,969,750
Verso Paper Holdings LLC Series B:
2,300,000 9.106% due 8/01/2014 (b) 2,288,500
250,000 11.375% due 8/01/2016 255,000
--------------
30,959,816
Pharmaceuticals--1.2%
Elan Finance Plc:
1,650,000 7.75% due 11/15/2011 1,608,750
2,325,000 9.558% due 11/15/2011 (b) 2,278,500
--------------
3,887,250
Real Estate Management & Development--1.5%
6,000,000 Realogy Corp., 11% due 4/15/2014 (h)(k) 4,860,000
Road & Rail--0.8%
1,000,000 Atlantic Express Transportation Corp.,
12.609% due 4/15/2012 (b) 970,000
2,430,000 St. Acquisition Corp., 13.107%
due 5/15/2015 (b)(k) 1,688,850
--------------
2,658,850
Semiconductors & Semiconductor Equipment--3.2%
4,500,000 Avago Technologies Finance Pte. Ltd., 11.08%
due 6/01/2013 (b) 4,567,500
Freescale Semiconductor, Inc.:
3,710,000 9.125% due 12/15/2014 (h) 3,320,450
430,000 9.569% due 12/15/2014 (b) 395,600
2,180,000 Spansion, Inc., 8.746% due 6/01/2013 (b)(k) 2,071,000
--------------
10,354,550
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Schedule of Investments (continued) (in U.S. dollars)
Face
Amount Corporate Bonds Value
Specialty Retail--0.8%
$1,780,000 Michaels Stores, Inc., 10% due 11/01/2014 (k) $ 1,784,450
915,000 United Auto Group, Inc., 7.75% due 12/15/2016 873,825
--------------
2,658,275
Tobacco--0.5%
2,125,000 North Atlantic Trading Co., 9.25% due 3/01/2012 1,721,250
Wireless Telecommunication Services--1.2%
630,000 iPCS, Inc., 7.481% due 5/01/2013 (b)(k) 607,950
1,200,000 Nordic Telephone Co. Holdings ApS, 8.875%
due 5/01/2016 (k) 1,242,000
705,000 Orascom Telecom Finance SCA, 7.875%
due 2/08/2014 (k) 643,312
1,500,000 Rural Cellular Corp., 8.25% due 3/15/2012 1,560,000
--------------
4,053,262
Total Corporate Bonds
(Cost--$236,791,291)--68.4% 222,073,266
Floating Rate Loan Interests (m)
Aerospace & Defense--0.4%
Hawker Beechcraft:
39,007 Letter of Credit, 5.26% due 3/31/2014 37,057
459,840 Term Loan B, 7.36% - 7.508% due 3/31/2014 436,848
897,092 IAP Worldwide Services Inc. Term Loan, 11.687%
due 12/31/2012 770,602
--------------
1,244,507
Airlines--0.3%
1,181,250 Delta Airlines First Lien Term Loan, 7.36%
due 5/15/2012 1,121,449
Auto Components--1.2%
1,000,000 Goodyear Tire & Rubber Co. First Lien
Term Loan, 7.10% due 4/30/2014 940,000
Intermet Corp.:
447,127 First Lien Term Loan, 10.36%
due 11/08/2010 429,242
648,148 Letter of Credit, 10.21% due 11/08/2010 622,222
Metaldyne Corp.:
9,302 Letter of Credit, 5.17% - 9.125%
due 1/15/2012 9,070
392,308 Term Loan B, 9.125% due 1/15/2014 382,500
987,453 United Components, Inc. Term Loan D, 7.38%
due 6/30/2012 952,892
750,000 Visteon Corp. Term Loan B, 8.38% due 6/13/2013 690,469
--------------
4,026,395
Beverages--0.4%
1,500,000 Culligan International Term Loan B,
7.61% - 7.815% due 10/24/2012 1,365,000
Chemicals--4.0%
1,000,000 Huish Detergents, Inc. First Lien Term Loan,
7.51% due 4/15/2014 917,500
1,194,012 Huntsman ICI Holdings Term Loan B, 7.25%
due 4/19/2014 1,168,391
1,000,000 ISP Chemco Term Loan B, 7.125% - 7.313%
due 5/25/2014 959,167
Face
Amount Floating Rate Loan Interests (m) Value
Chemicals (concluded)
$1,000,000 KIK Custom Products Inc. First Lien Term
Loan, 7.61% due 5/30/2014 $ 910,000
1,560,000 Rockwood Specialties Group, Inc. Tranche
D Term Loan, 6.857% due 7/30/2012 1,508,325
8,000,000 Wellman, Inc. First Lien Term Loan, 9.356%
due 2/10/2009 7,660,000
--------------
13,123,383
Commercial Services & Supplies--6.7%
Allied Waste North America, Inc.:
702,146 Term Loan, 6.81% - 6.89% due 1/15/2012 681,082
382,057 Tranche A Credit Linked Deposit, 5.32%
due 1/15/2012 370,596
Aramark Corp.:
296,287 Letter of Credit, 5.36% due 1/30/2014 285,102
4,211,394 Term Loan B, 7.36% due 1/30/2014 4,052,414
Euramax International Plc:
1,692,210 First Lien Term Loan, 8.375% due 6/29/2012 1,564,448
3,000,000 Second Lien Term Loan, 13.36%
due 6/29/2013 2,670,000
1,175,657 John Maneely Co. Term Loan B,
8.61% due 12/15/2013 1,051,722
720,125 Metokote Corp. Second Lien Term Loan,
8.36% - 8.55% due 11/27/2011 709,323
1,725,712 NES Rentals Holdings, Inc. Term Loan C,
12.125% due 7/12/2013 1,689,760
7,000,359 Waste Services, Inc. Term Loan D, 7.82%
due 3/31/2011 6,790,348
1,980,075 West Corp. Term Loan, 7.735% - 7.88%
due 10/31/2013 1,909,947
--------------
21,774,742
Computers & Peripherals--0.7%
430,893 Intergraph Corp. Term Loan, 7.503%
due 5/15/2014 412,041
1,911,829 Reynolds and Reynolds Co. First Lien
Term Loan, 7.36% due 10/31/2012 1,828,187
--------------
2,240,228
Construction Materials--0.3%
976,563 Headwaters, Inc. Term Loan B-1, 7.36%
due 4/30/2011 952,148
Containers & Packaging--1.7%
1,119,787 Anchor Glass Container Corp. Term Loan B,
7.61% - 7.791% due 5/03/2013 1,086,193
1,995,000 Graham Packaging Term Loan B, 7.625%
due 4/15/2011 1,938,476
995,000 Graphic Packaging International Term Loan B,
7.36% - 7.51% due 5/16/2014 979,660
1,447,500 Solo Cup Co. Term Loan, 8.82% - 9%
due 2/27/2011 1,417,042
--------------
5,421,371
Distributors--0.4%
1,492,500 Keystone Automotive Operations, Inc. Term
Loan B, 8.828% - 9% due 1/15/2012 1,361,906
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Schedule of Investments (continued) (in U.S. dollars)
Face
Amount Floating Rate Loan Interests (m) Value
Diversified Financial Services--0.9%
$ 3,000,000 JG Wentworth Manufacturing Term Loan B,
7.61% due 4/15/2014 $ 2,782,500
Diversified Telecommunication Services--0.8%
1,702,542 Winstar Communications Debtor In Possession,
6.366% due 12/31/2006 (n) 2,719,811
Electrical Equipment--0.2%
742,500 Generac Portable Products, Inc. First Lien
Term Loan, 7.86% due 11/15/2013 656,582
Energy Equipment & Services--1.6%
Dresser, Inc.:
1,500,000 First Lien Term Loan, 8.01% - 8.038%
due 5/15/2014 1,440,938
1,000,000 Second Lien Term Loan, 11.129%
due 5/04/2015 945,000
2,462,500 Key Energy Services, Inc. Term Loan B,
7.856% - 8.065% due 6/30/2012 2,407,094
493,750 MEG Energy Corp. Term Loan B, 7.36%
due 4/03/2013 476,469
--------------
5,269,501
Food & Staples Retailing--2.3%
750,000 Bolthouse Farms, Inc. Second Lien Term Loan,
10.86% due 12/01/2013 725,625
Dole Food Co., Inc.:
370,597 Letter of Credit, 5.23% due 4/12/2013 348,361
823,420 Term Loan B, 7.438% - 9.25%
due 4/12/2013 774,014
2,744,732 Term Loan C, 7.438% - 9.25%
due 4/04/2013 2,580,048
969,217 Eight O'Clock Coffee Second Lien Term Loan,
8.125% due 7/21/2012 920,756
497,500 McJunkin Corp. Term Loan B, 7.815%
due 1/30/2014 483,197
1,401,962 Pierre Foods, Inc. Term Loan B, 7.78%
due 6/30/2010 1,377,428
249,375 Sturm Foods, Inc. First Lien Term Loan,
7.875% - 7.938% due 1/30/2014 231,919
--------------
7,441,348
Food Products--0.3%
968,750 Jetro Holdings, Inc. Term Loan, 7.82%
due 5/11/2014 930,000
Health Care Providers & Services--0.2%
496,250 Sterigenics International, Inc. Term Loan B,
7.61% due 11/30/2013 476,400
Hotels, Restaurants & Leisure--3.4%
2,970,000 Cedar Fair LP Term Loan B, 7.565%
due 8/30/2012 2,875,949
746,250 Greenwood Racing, Inc. Term Loan,
7.80% - 7.82% due 11/15/2013 714,534
1,200,000 Las Vegas Sands Term Loan B, 7.11%
due 5/04/2014 1,138,650
990,000 QCE LLC First Lien Term Loan, 7.61%
due 5/05/2013 942,975
1,000,000 Riviera Holdings Corp. Term Loan B, 7.36%
due 5/11/2017 970,000
Face
Amount Floating Rate Loan Interests (m) Value
Hotels, Restaurants & Leisure (concluded)
Venetian Macau US Finance Co. LLC:
$ 1,500,000 Delay Draw Term Loan, 7.61% - 7.76%
due 5/25/2012 $ 1,448,571
3,000,000 Term Loan B, 7.61% due 5/25/2013 2,897,142
--------------
10,987,821
IT Services--1.6%
1,638,379 Activant Solutions Term Loan B, 7.375%
due 5/02/2013 1,527,789
Audio Visual Services Corp.:
500,000 Second Lien Term Loan, 10.86%
due 2/28/2014 475,000
2,000,000 Term Loan B, 7.61% - 10.25%
due 2/28/2014 1,880,000
RedPrairie Corp.:
695,734 Term Loan, 8.50% due 7/31/2012 667,905
298,500 Term Loan, 11.859% due 7/31/2012 286,560
497,500 SunGard Data Systems, Inc. Term Loan B,
7.356% due 2/11/2013 480,709
--------------
5,317,963
Leisure Equipment & Products--0.2%
666,667 Fender Musical Instruments Corp. Term Loan B,
7.65% due 5/25/2014 620,000
Machinery--3.6%
997,500 Harrington Holdings, Inc. Term Loan, 7.61%
due 1/15/2014 947,625
Invensys Plc:
1,529,412 Bonding Tranche, 7.356% due 12/15/2010 1,491,176
1,720,588 Term Loan, 7.36% due 1/15/2011 1,679,724
1,000,000 Lincoln Industrial Second Lien Term Loan,
11.07% due 12/18/2014 980,000
1,000,000 Maxim Crane Term Loan B, 7.32%
due 6/14/2014 920,000
Navistar International Transportation Corp.:
1,066,667 Revolving Credit, 5.17% - 8.61%
due 1/19/2012 1,024,000
2,933,333 Term Loan, 8.61% due 1/19/2012 2,816,000
1,990,000 OshKosh Truck Corp. Term Loan B, 7.11%
due 11/30/2013 1,908,535
--------------
11,767,060
Media--14.1%
2,000,000 Affinion Group, Inc. Term Loan, 11.678%
due 3/01/2012 1,846,666
Cequel Communications LLC:
4,527,733 Second Lien Term Loan, 9.856%
due 3/31/2015 4,369,262
1,647,284 Term Loan B, 7.36% - 7.505%
due 4/04/2013 1,553,482
8,000,000 Charter Communications, Inc. Term Loan B,
7.361% due 4/30/2014 7,556,432
973,460 ClientLogic Holding Corp. Term Loan B,
7.86% - 8.065%due 1/30/2014 934,522
4,000,000 Ellis Communications Term Loan, 10%
due 1/15/2008 3,880,000
GateHouse Media, Inc.:
605,797 Delay Draw Term Loan, 7.36% - 7.51%
due 9/15/2014 548,246
1,500,000 Term Loan B, 7.51% due 9/15/2014 1,357,500
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Schedule of Investments (continued) (in U.S. dollars)
Face
Amount Floating Rate Loan Interests (m) Value
Media (concluded)
$ 1,000,000 Hanley-Wood LLC Term Loan B,
7.59% - 7.61% due 3/07/2014 $ 896,667
2,985,000 Idearc, Inc. Term Loan B, 7.36% due 11/15/2014 2,884,597
5,000,000 Insight Midwest Holdings LLC Delay Draw Term
Loan, 7.11% due 4/03/2014 4,858,595
750,000 Knology, Inc. Term Loan B, 7.61% due 3/15/2012 723,750
1,987,659 Mediacom Communications Term Loan D, 7.32%
due 1/31/2015 1,869,819
2,554,663 Mediacom LLC Term Loan C, 7.32%
due 1/31/2015 2,408,681
3,473,750 Nielsen Finance LLC Term Loan B, 7.36%
due 8/15/2013 3,335,766
748,125 Penton Media Term Loan, 7.61% due 2/15/2013 706,978
Riverdeep Group Ltd.:
479,022 Bridge Loan, 11.55% due 12/21/2007 476,627
748,120 Term Loan B, 8.11% due 12/21/2013 732,036
1,500,000 Thomson Learning Inc. Term Loan, 8.10%
due 7/04/2014 1,416,250
3,758,389 Univision Communications, Inc. Delay Draw Term
Loan, 7.61% due 9/30/2014 3,470,245
--------------
45,826,121
Multi-Utilities--0.2%
500,000 Brand Energy Letter of Credit, 7.625%
due 2/15/2014 483,750
Oil, Gas & Consumable Fuels--2.9%
450,000 Big West Oil & Gas Term Loan B, 7.61%
due 5/15/2014 425,250
4,000,000 Frontier Drilling Term Loan B, 9.18%
due 6/21/2013 3,920,000
1,000,000 Petroleum Geo-Services ASA Term Loan B,
7.11% due 6/30/2015 965,833
1,000,000 SandRidge Energy, Inc. Term Loan B, 8.985%
due 3/01/2014 987,500
2,000,000 Scorpion Drilling Ltd. Second Lien Term Loan,
12.86% due 5/05/2015 2,130,000
Western Refining Co. LP:
196,429 Delay Draw Term Loan, 7.07%
due 3/15/2014 186,607
732,143 Term Loan B, 7.07% due 3/15/2014 695,536
--------------
9,310,726
Paper & Forest Products--0.3%
Cenveo, Inc.:
27,517 Delay Draw Term Loan, 7.11%
due 9/07/2013 26,210
825,517 Term Loan C, 7.11% due 9/07/2013 786,305
--------------
812,515
Pharmaceuticals--0.8%
3,000,000 Pharmaceutical Technologies & Services (PTS)
Term Loan, 7.61% due 4/15/2014 2,737,500
Real Estate Management & Development--2.3%
5,000,000 LNR Property Corp. Term Loan B, 8.11%
due 7/12/2011 4,841,665
3,000,000 Realogy Corp. Letter of Credit, 8.35%
due 9/22/2014 2,720,001
--------------
7,561,666
Face
Amount Floating Rate Loan Interests (m) Value
Road & Rail--0.6%
$ 2,151,163 Swift Transportation Co., Inc. Term Loan B,
8.375% due 5/15/2014 $ 1,901,538
Specialty Retail--1.1%
2,000,000 ADESA, Inc. Term Loan B, 7.61%
due 10/30/2013 1,871,250
500,000 Burlington Coat Factory Warehouse Corp. Term
Loan B, 7.76% due 4/15/2013 468,036
1,500,000 Claire's Stores Term Loan B, 8.11%
due 5/24/2014 1,373,126
--------------
3,712,412
Trading Companies & Distributors--0.3%
United Rentals, Inc.:
732,336 Term Loan, 7.32% due 2/14/2011 722,724
331,446 Tranche B Credit Linked Deposit, 5.32%
due 2/14/2011 327,096
--------------
1,049,820
Wireless Telecommunication Services--1.6%
997,500 American Cellular Network Term Loan B, 7.36%
due 3/15/2014 986,777
2,750,000 Centennial Cellular Operating Co. Term Loan,
7.36% - 7.541% due 2/09/2011 2,668,875
1,000,000 IPC Systems First Lien Term Loan, 7.61%
due 5/25/2014 888,333
609,626 Ng Wireless Term Loan, 10% due 7/31/2014 597,433
--------------
5,141,418
Total Floating Rate Loan Interests
(Cost--$186,163,951)--55.4% 180,137,581
Shares
Held Common Stocks
Chemicals--0.0%
142,466 GEO Specialty Chemicals, Inc. (e) 142,466
Hotels, Restaurants & Leisure--0.2%
41,866 Lodgian, Inc. (e) 512,021
Paper & Forest Products--0.1%
18,171 Smurfit Kappa Plc (e) 397,788
Total Common Stocks
(Cost--$2,818,960)--0.3% 1,052,275
Warrants (l)
Wireless Telecommunication Services--0.1%
600 American Tower Corp. (expires 8/01/2008) 327,000
Total Warrants
(Cost--$39,036)--0.1% 327,000
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Schedule of Investments (concluded) (in U.S. dollars)
Beneficial
Interest Other Interests (g) Value
Auto Components--0.0%
$4,130,972 Cambridge Industries, Inc. (Litigation Trust
Certificates) $ 0
Health Care--0.0%
10,284 MEDIQ, Inc. (Preferred Stock Escrow) 0
Media--0.0%
2,500 Adelphia Preferred Escrow 0
250,000 Adelphia Recovery Trust Series ACC-6B INT 0
--------------
0
Total Other Interests
(Cost--$0)--0.0% 0
Beneficial
Interest Short-Term Securities Value
$ 3,117,542 BlackRock Liquidity Series, LLC
Cash Sweep Series, 5.33% (c)(d) $ 3,117,542
Total Short-Term Securities
(Cost--$3,117,542)--1.0% 3,117,542
Total Investments (Cost--$428,930,780*)--125.2% 406,707,664
Liabilities in Excess of Other Assets--(25.2%) (81,720,108)
--------------
Net Assets--100.0% $ 324,987,556
==============
* 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 $ 428,672,265
=================
Gross unrealized appreciation $ 5,644,641
Gross unrealized depreciation (27,609,242)
-----------------
Net unrealized depreciation $ (21,964,601)
=================
(a) Convertible security.
(b) Floating rate security.
(c) Represents the current yield as of August 31, 2007.
(d) 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 $(1,733,083) $141,745
(e) Non-income producing security.
(f) Non-income producing security; issuer filed for bankruptcy or is in
default of interest payments.
(g) Other interests represent beneficial interest in liquidation trusts and
other reorganization entities and are non-income producing.
(h) Represents a pay-in-kind security which may pay interest/dividends in
additional face/shares.
(i) Subject to principal paydowns.
(j) Represents a step bond; the interest rate shown reflects the effective
yield at the time of purchase.
(k) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(l) 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.
(m) Floating rate loan interests in which the Fund invests generally pay
interest at rates that are periodically redetermined 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
London InterBank Offered Rate ("LIBOR"), (ii) the prime rate offered by
one or more U.S. banks, or (iii) the certificate of deposit rate.
(n) As a result of bankruptcy proceedings, the company did not repay the
principal amount of security upon maturity and is non-income producing.
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.
o Swaps outstanding as of August 31, 2007 were as follows:
Unrealized
Notional Appreciation
Amount (Depreciation)
Sold credit default protection on Ford Motor
Credit Company and receive 2.05%
Broker, Deutsche Bank AG London
Expires March 2010 $5,000,000 $(324,235)
Bought a credit default protection on LCDX
Index and pay 1.20%
Broker, JPMorgan Chase
Expires June 2012 $2,000,000 (22,800)
Bought credit default protection on LCDX Index
and pay 1.20%
Broker, Morgan Stanley Capital Services, Inc.
Expires June 2012 $2,000,000 (22,801)
Sold credit default protection on LCDX Index
and receive 1.20%
Broker, Morgan Stanley Capital Services, Inc.
Expires June 2012 $2,000,000 42,934
Sold credit default protection on Dow Jones
CDX North America High Yield Series 8 and
receive 2.75%
Broker, JPMorgan Chase
Expires June 2012 $2,750,000 (8,477)
Sold credit default protection on Dow Jones
CDX North America High Yield Index Series 8
and receive 2.75%
Broker, JPMorgan Chase
Expires June 2012 $2,750,000 (6,758)
Bought credit default protection on Frontier
Drilling and pay 3.45%
Broker, Lehman Brothers Special Finance
Expires September 2012 $1,750,000 49,023
Bought credit default protection on Frontier
Drilling ASA and pay 4.00%
Broker, Lehman Brothers Special Finance
Expires September 2012 $1,500,000 18,515
----------
Total $(274,599)
==========
See Notes to Financial Statements.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Statement of Assets, Liabilities and Capital
As of August 31, 2007 (Unaudited)
Assets
Investments in unaffiliated securities, at value (identified cost--$425,813,238) $ 403,590,122
Investments in affiliated securities, at value (identified cost--$3,117,542) 3,117,542
Unrealized appreciation on swaps 110,472
Cash 130,572
Swap premiums paid 241,458
Receivables:
Interest $ 7,203,336
Securities sold 6,145,352
Swaps 105,615
Commitment fees 9,752 13,464,055
---------------
Prepaid expenses and other assets 6,600
---------------
Total assets 420,660,821
---------------
Liabilities
Loans 94,000,000
Unrealized depreciation on swaps 385,071
Unfunded loan committment 60,112
Swap premiums received 392,073
Payables:
Dividends to shareholders 257,465
Investment adviser 196,487
Interest on loans 145,235
Swaps 13,867
Other affiliates 2,546 615,600
---------------
Accrued expenses and other liabilities 220,409
---------------
Total liabilities 95,673,265
---------------
Net Assets
Net assets $ 324,987,556
===============
Capital
Common Stock, par value $.10 per share; 200,000,000 shares authorized
(56,433,838 shares issued and outstanding) $ 5,643,384
Paid-in capital in excess of par 492,020,499
Undistributed investment income--net $ 2,332,780
Accumulated realized capital losses--net (152,451,280)
Unrealized depreciation--net (22,557,827)
---------------
Total accumulated losses--net (172,676,327)
---------------
Total capital--Equivalent to $5.76 net asset value per share of Common Stock
(market price--$5.64) $ 324,987,556
===============
See Notes to Financial Statements.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Statement of Operations
For the Six Months Ended August 31, 2007 (Unaudited)
Investment Income
Interest (including $141,745 from affiliates) $ 20,874,614
Facility and other fees 89,548
---------------
Total income 20,964,162
---------------
Expenses
Loan interest expense $ 3,702,526
Investment advisory fees 1,203,354
Borrowing costs 100,032
Accounting services 67,434
Professional fees 52,317
Printing and shareholder reports 23,878
Transfer agent fees 20,990
Directors' fees and expenses 19,897
Custodian fees 18,175
Pricing services 12,448
Listing fees 10,893
Other 15,632
---------------
Total expenses 5,247,576
---------------
Investment income--net 15,716,586
---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain on:
Investments--net 307,759
Swaps--net 154,829 462,588
---------------
Change in unrealized appreciation/depreciation on:
Investments--net (23,427,615)
Unfunded corporate loans--net (58,399)
Swaps--net (246,009) (23,732,023)
--------------- ---------------
Total realized and unrealized loss--net (23,269,435)
---------------
Net Decrease in Net Assets Resulting from Operations $ (7,552,849)
===============
See Notes to Financial Statements.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
August 31, 2007 February 28,
Increase (Decrease) in Net Assets: (Unaudited) 2007
Operations
Investment income--net $ 15,716,586 $ 31,844,209
Realized gain (loss)--net 462,588 (1,583,297)
Change in unrealized appreciation/depreciation--net (23,732,023) 11,083,827
--------------- ---------------
Net increase in net assets resulting from operations (7,552,849) 41,344,739
--------------- ---------------
Dividends to Shareholders
Dividends to shareholders from investment income--net (15,895,502) (31,608,871)
--------------- ---------------
Stock Transactions
Value of shares issued to Common Stock shareholders in reinvestment of dividends 986,870 2,023,099
--------------- ---------------
Net increase in net assets resulting from stock transactions 986,870 2,023,099
--------------- ---------------
Net Assets
Total increase (decrease) in net assets (22,461,481) 11,758,967
Beginning of period 347,449,037 335,690,070
--------------- ---------------
End of period* $ 324,987,556 $ 347,449,037
=============== ===============
* Undistributed investment income--net $ 2,332,780 $ 2,511,696
=============== ===============
See Notes to Financial Statements.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Statement of Cash Flows
For the Six Months Ended August 31, 2007 (Unaudited)
Cash Provided by Operating Activities
Net decrease in net assets resulting from operations $ (7,552,849)
Adjustments to reconcile net increase in net assets resulting from operations to net cash
provided by operating activities:
Increase in receivables (69,971)
Increase in other liabilities 140,312
Realized and unrealized loss--net 23,899,063
Amortization of premium and discount (171,552)
Proceeds from sales and paydowns of long-term securities 172,417,631
Purchases of long-term securities (138,133,692)
Proceeds from sales of short-term securities 1,733,083
---------------
Cash provided by operating activities 52,262,025
---------------
Cash Used for Financing Activities
Cash receipts from borrowings 75,000,000
Cash payments from borrowings (113,000,000)
Dividends paid to shareholders (14,651,167)
---------------
Cash used for financing activities (52,651,167)
---------------
Cash
Net decrease in cash (389,142)
Cash at beginning of period 519,714
---------------
Cash at end of period $ 130,572
===============
Cash Flow Information
Cash paid for interest $ 3,642,937
===============
Non-Cash Financing Activities
Value of capital shares issued on reinvestment of dividends paid to shareholders $ 986,870
===============
See Notes to Financial Statements.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Financial Highlights
For the Six For the For the
The following per share data and ratios Months Ended For the Year Ended Year Ended Year Ended
have been derived from information August 31, 2007 February 28, February 29, February 28,
provided in the financial statements. (Unaudited) 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of period $ 6.17 $ 6.00 $ 6.28 $ 6.10 $ 4.82 $ 5.40
----------- ----------- ----------- ----------- ----------- -----------
Investment income--net*** .28 .57 .55 .57 .62 .63
Realized and unrealized gain (loss)--net (.41) .16 (.27) .16 1.30 (.59)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment operations (.13) .73 .28 .73 1.92 .04
----------- ----------- ----------- ----------- ----------- -----------
Less dividends from investment income--net (.28) (.56) (.56) (.55) (.64) (.62)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 5.76 $ 6.17 $ 6.00 $ 6.28 $ 6.10 $ 4.82
=========== =========== =========== =========== =========== ===========
Market price per share, end of period $ 5.64 $ 6.53 $ 5.88 $ 6.21 $ 6.11 $ 5.45
=========== =========== =========== =========== =========== ===========
Total Investment Return**
Based on net asset value per share (2.16%)++ 12.82% 5.07% 12.88% 41.49% 1.18%
=========== =========== =========== =========== =========== ===========
Based on market price per share (9.48%)++ 21.84% 4.13% 11.44% 25.34% 4.88%
=========== =========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses, excluding interest expense .88%* .90% .91% .91% .90% .97%
=========== =========== =========== =========== =========== ===========
Expenses 2.99%* 3.03% 2.39% 1.69% 1.42% 1.78%
=========== =========== =========== =========== =========== ===========
Investment income--net 8.96%* 9.42% 9.23% 9.28% 11.23% 12.75%
=========== =========== =========== =========== =========== ===========
Leverage
Amount of borrowings, end of period
(in thousands) $ 94,000 $ 132,000 $ 141,700 $ 147,500 $ 132,297 $ 104,600
=========== =========== =========== =========== =========== ===========
Average amount of borrowings outstanding
during the period (in thousands) $ 128,797 $ 131,575 $ 128,461 $ 137,934 $ 112,037 $ 110,348
=========== =========== =========== =========== =========== ===========
Average amount of borrowings outstanding
per share during the period*** $ 2.29 $ 2.35 $ 2.30 $ 2.48 $ 2.02 $ 2.02
=========== =========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 324,988 $ 347,449 $ 335,690 $ 349,791 $ 339,950 $ 265,423
=========== =========== =========== =========== =========== ===========
Portfolio turnover 28% 62% 48% 54% 64% 75%
=========== =========== =========== =========== =========== ===========
* Annualized.
** Total investment returns based on market price, 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.
++ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock Senior High Income Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended, as a non-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. These unaudited financial statements reflect all
adjustments, which are, in the opinion of management, necessary to present a
fair statement of the results for the interim period. All such adjustments are
of a normal, recurring nature. 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 ARK.
(a) Corporate debt obligations--The Fund invests principally in senior debt
obligations of companies, including floating rate loans made by banks and
other financial institutions and both privately and publicly offered corporate
bonds and notes. The Fund's investments in loan participation interests
involve the risk of insolvency of the financial intermediaries who are parties
to the transaction.
(b) Valuation of investments--Floating rate loans are valued in accordance
with guidelines established by the Fund's Board of Directors. Floating rate
loan interests are valued at the mean between the last available bid prices
from one or more brokers or dealers as obtained from Loan Pricing Corporation.
For the limited number of floating rate loans for which no reliable price
quotes are available, such floating rate loans will be valued by Loan Pricing
Corporation through the use of pricing matrixes to determine valuations. If
the pricing service does not provide a value for a floating rate loan,
BlackRock Advisors, LLC (the "Manager"), an indirect, wholly owned subsidiary
of BlackRock, Inc., will value the floating rate loan at fair value, which is
intended to approximate market value.
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 as obtained by a pricing service. 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.
Securities held by the Fund that are traded on stock exchanges or the NASDAQ
Global Market are valued at the last sale price or official close price on the
exchange on which such securities are traded, 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 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 in securities traded in the OTC market, NASDAQ Capital Market or
Bulletin Board are valued at the last available bid price or yield equivalent
obtained from one or more dealers or pricing services approved by the Board of
Directors of the Fund. Short positions in securities 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. When the Fund writes an option,
the amount of the premium received is recorded on the books of the Fund as an
asset and an equivalent liability. The amount of the liability is subsequently
valued to reflect the current market value of the option written, based on the
last sale price in the case of exchange-traded options or, in the case of
options traded in the OTC market, the last asked price. Options purchased by
the Fund are valued at their last sale price in the case of exchange-traded
options or, in the case of options traded in the OTC market, the last bid
price. Swap agreements are valued based upon quoted fair valuations received
daily by the Fund from a pricing service or counterparty. Other investments,
including financial futures contracts and related options, are stated at
market value. Valuation of short-term investment vehicles is generally based
on the net asset value of the underlying vehicle or amortized cost. Repurchase
agreements will be valued at cost plus accrued interest.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Notes to Financial Statements (continued)
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 the Manager using a
pricing service and/or procedures approved by the Fund's Board of Directors.
(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.
* Financial futures contracts--The Fund may purchase or sell financial futures
contracts and options on such financial futures contracts for the purpose of
hedging the market risk on existing securities or the intended purchase of
securities. 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.
* 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 is less than or exceeds the premiums paid or
received).
Written and purchased options are non-income producing investments.
* 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 also 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. Interest income is recognized on the accrual basis. The
Fund amortizes all premiums and discounts on debt securities. The Fund earns
facility and other fees on loan participation interests. Other fees earned
include amendment, consent and prepayment fees.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Notes to Financial Statements (continued)
(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. The Fund may at times pay out less than the entire amount
of net investment income earned in any particular period and may at times pay
out such accumulated undistributed income in other periods to permit the Fund
to maintain a more stable level of dividends.
(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 receives 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 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--Effective August 31, 2007, the Fund
implemented Financial Accounting Standards Board ("FASB") Interpretation No.
48, "Accounting for Uncertainty in Income Taxes - an interpretation of FASB
Statement No. 109" ("FIN 48"). 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 investment companies, before being measured and recognized
in the financial statements. Management has evaluated the application of FIN
48 to the Fund, and has determined that the adoption of FIN 48 does not have a
material impact on the Fund's financial statements. The Fund files U.S. and
various state tax returns. No income tax returns are currently under
examination. The statute of limitations on the Fund's tax returns remains open
for the years ended February 28, 2004 through February 28, 2007.
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, FASB issued Statement of Financial Accounting
Standards No. 159, "The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which 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.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with the Manager.
Merrill Lynch & Co., Inc. ("Merrill Lynch") and the PNC Financial Services
Group Inc. are the principal owners of BlackRock, Inc.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Notes to Financial Statements (concluded)
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 operations of the Fund. For such services, the Fund
pays a monthly fee at an annual rate of .50% of the Fund's average daily net
assets plus the proceeds of any outstanding borrowings used for leverage. In
addition, the Manager has entered into a Sub-Advisory Agreement with BlackRock
Financial Management, Inc. ("BFM"), an affiliate of the Manager, under which
the Manager pays BFM for services it provides a monthly 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") as the securities lending agent
for a fee based on a share of the returns on investment of cash collateral.
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 six months ended August 31, 2007, the Fund reimbursed the Manager
$3,267 for certain accounting services.
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 six months ended August 31, 2007 were $123,876,814 and
$177,155,637, respectively.
4. Stock 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 six months ended August 31, 2007 and
during the year ended February 28, 2007 increased by 159,689 and 332,841,
respectively, as a result of dividend reinvestment.
5. Unfunded Loan Commitments:
As of August 31, 2007, the Fund had unfunded loan commitments of approximately
$1,133,000, which would be extended at the option of the borrower, pursuant to
the following loan agreements:
(in Thousands)
Value of
Unfunded Underlying
Borrower Commitment Loan
Fender Musical Instruments Corp. $333 $310
Las Vegas Sands $300 $285
MEG Energy Corp. $500 $478
6. 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 $175,000,000.
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 5.61% and the average borrowing
was approximately $128,797,000 for the six months ended August 31, 2007.
7. Capital Loss Carryforward:
On February 28, 2007, the Fund had a net capital loss carryforward of
$152,916,193, of which $12,755,214 expires in 2008, $25,658,795 expires in
2009, $54,958,583expires in 2010, $30,706,546 expires in 2011,
$22,345,071expires in 2012, $4,906,362 expires in 2014 and $1,585,622 expires
in 2015. This amount will be available to offset like amounts of any future
taxable gains.
8. Subsequent Event:
The Fund paid an ordinary income dividend in the amount of $.047000 per share
on September 28, 2007 to shareholders of record on September 14, 2007.
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Proxy Results
During the six-month period ended August 31, 2007, the shareholders of
BlackRock Senior High Income Fund, 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 of Directors: G. Nicholas Beckwith, III 50,839,118 872,464
Richard E. Cavanagh 50,841,006 870,577
Richard S. Davis 50,841,167 870,416
Kent Dixon 50,837,372 874,211
Frank J. Fabozzi 50,842,179 869,404
Kathleen F. Feldstein 50,834,681 876,901
James T. Flynn 50,842,558 869,025
Henry Gabbay 50,836,067 875,516
Jerrold B. Harris 50,841,806 869,777
R. Glenn Hubbard 50,839,327 872,256
W. Carl Kester 50,838,627 872,956
Karen P. Robards 50,846,407 865,175
Robert S. Salomon, Jr. 50,828,388 883,195
Officers and Directors
Robert C. Doll, Jr., Fund President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Jean Margo Reid, Director
Roscoe S. Suddarth, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Donald C. Burke, Vice President and Treasurer
Karen Clark, Fund Chief Compliance Officer
Alice A. Pellegrino, Fund Secretary
Howard Surloff, Fund Secretary
(Effective September 1, 2007)
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent
The Bank of New York
101 Barclay Street - 11 East
New York, NY 10286
BLACKROCK SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
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 nonpublic 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 nonpublic 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 nonaffiliated third parties any
nonpublic 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 nonaffiliated 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
nonpublic 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 nonpublic personal information of its Clients, including procedures
relating to the proper storage and disposal of such information.
BLACKROCK SENIOR HIGH INCOME FUND, 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 SENIOR HIGH INCOME FUND, INC. AUGUST 31, 2007
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this
semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this
semi-annual report
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 - Not Applicable to this semi-annual
report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
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 - Not Applicable to this semi-annual report
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 Senior High Income Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Senior High Income Fund, 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 Senior High Income Fund, Inc.
Date: October 22, 2007
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock Senior High Income Fund, Inc.
Date: October 22, 2007