UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-23199
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First Trust Senior Floating Rate 2022 Target Term Fund
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(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Name and address of agent for service)
Registrant's telephone number, including area code: 630-765-8000
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Date of fiscal year end: May 31
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Date of reporting period: August 31, 2017
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached
herewith.
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (b) MATURITY (c) VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
SENIOR FLOATING-RATE LOAN INTERESTS - 117.9%
AEROSPACE & DEFENSE - 0.2%
$ 554,379 Transdigm, Inc., Term Loan F - Extended, 1 Mo. LIBOR +
3.00%, 0.75% Floor ........................................ 4.24% 06/15/23 $ 555,011
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AGRICULTURAL PRODUCTS - 0.1%
180,000 Dole Foods Co., Term Loan B, 2 Mo. LIBOR + 2.75%, 1.00%
Floor...................................................... 4.01% 04/06/24 180,338
10,000 Dole Foods Co., Term Loan B, 3 Mo. LIBOR + 2.75%, 1.00%
Floor...................................................... 4.05% 04/06/24 10,019
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190,357
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ALTERNATIVE CARRIERS - 0.1%
244,527 Level 3 Financing, Inc., Tranche B 2024 Term Loan, 1 Mo.
LIBOR + 2.25%, 0.00% Floor ................................ 3.49% 02/15/24 244,297
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APPLICATION SOFTWARE - 5.2%
1,531,429 CCC Information Resources, Inc., Term Loan B, 1 Mo.
LIBOR + 3.00%, 1.00% Floor ................................ 4.24% 03/31/24 1,527,983
736,000 Hyland Software, Term Loan B, 1 Mo. LIBOR + 3.25%, 0.75%
Floor ..................................................... 4.49% 07/01/22 741,520
1,882,025 Infor (US), Inc., Term Loan B, 3 Mo. LIBOR + 2.75%,
1.00% Floor ............................................... 4.05% 02/02/22 1,875,983
3,385,000 JDA Software Group (RP Crown Parent, Inc.), Term Loan B,
1 Mo. LIBOR + 3.50%, 1.00% Floor .......................... 4.73% 09/22/23 3,407,984
2,843,282 LANDesk Software, Inc., Term Loan B, 1 Mo. LIBOR +
4.25%, 1.00% Floor ........................................ 5.49% 01/18/24 2,804,187
120,380 Micro Focus International (MA Finance LLC), MA Finance
TLB3, 1 Mo. LIBOR + 2.75%, 0.00% Floor .................... 3.98% 04/18/24 120,229
812,954 Micro Focus International (MA Finance LLC), Seattle
Spinco TLB, 3 Mo. LIBOR + 2.75%, 0.00% Floor .............. 4.03% 04/18/24 811,938
15,825 Mitchell International, Inc., Initial Term Loan, 2 Mo.
LIBOR + 3.50%, 1.00% Floor................................. 4.76% 10/13/20 15,853
6,269,655 Mitchell International, Inc., Initial Term Loan, 3 Mo.
LIBOR + 3.50%, 1.00% Floor................................. 4.81% 10/13/20 6,280,626
742,857 Qlik Technologies (Project Alpha Intermediate Holdings,
Inc.), Term Loan B, 3 Mo. LIBOR + 3.50%, 1.00%
Floor ..................................................... 4.81% 04/19/24 724,286
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18,310,589
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ASSET MANAGEMENT & CUSTODY BANKS - 3.1%
2,939,785 American Beacon Advisors, Inc. (Resolute Investment
Managers), Term Loan B, 3 Mo. LIBOR + 4.25%, 1.00%
Floor ..................................................... 5.55% 03/15/22 2,969,183
See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (b) MATURITY (c) VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED)
ASSET MANAGEMENT & CUSTODY BANKS (CONTINUED)
$ 760,000 First Eagle Investment Management, Term Loan B, 3 Mo.
LIBOR + 3.50%, 0.75% Floor ................................ 4.80% 12/01/22 $ 767,364
3,868,118 Victory Capital Holdings (VCH Holdings LLC), Initial
Term Loan , 2 Mo. LIBOR + 5.25%, 1.00% Floor .............. 6.51% 10/31/21 3,918,906
3,360,000 Virtus Investment Partners, Inc., Term Loan B, 3 Mo.
LIBOR + 3.75%, 0.75% Floor ................................ 4.95% 03/02/24 3,397,800
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11,053,253
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AUTO PARTS & EQUIPMENT - 2.0%
7,133,231 Gates Global LLC, Term Loan B, 3 Mo. LIBOR + 3.25%,
1.00% Floor ............................................... 4.55% 03/30/24 7,154,274
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BROADCASTING - 3.2%
21,038 Nexstar Broadcasting, Inc., Mission Term Loan, 1 Mo.
LIBOR + 2.50%, 0.00% Floor ................................ 3.74% 01/17/24 21,064
169,364 Nexstar Broadcasting, Inc., Nexstar Term Loan, 1 Mo.
LIBOR + 2.50%, 0.00% Floor ................................ 3.73% 01/17/24 169,576
236,438 Tribune Media Co., Extended Term Loan C, 1 Mo. LIBOR +
3.00%, 0.75% Floor ........................................ 4.24% 01/31/24 236,833
10,854,562 Univision Communications, Inc., Term Loan C5, 1 Mo.
LIBOR + 2.75%, 1.00% Floor ................................ 3.99% 03/15/24 10,762,950
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11,190,423
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BUILDING PRODUCTS - 1.5%
2,290,442 Jeld-Wen, Inc., Term Loan B, 3 Mo. LIBOR + 3.00%, 1.00%
Floor ..................................................... 4.30% 07/01/22 2,302,467
2,985,000 Quikrete Holdings, Inc., Term Loan B, 1 Mo. LIBOR +
2.75%, 0.00% Floor ........................................ 3.99% 11/15/23 2,966,732
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5,269,199
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CASINOS & GAMING - 13.2%
14,896,991 Amaya Holdings B.V., Term Loan B, 3 Mo. LIBOR + 3.50%,
1.00% Floor ............................................... 4.80% 08/01/21 14,930,807
14,744,086 Caesars Entertainment Resort Properties LLC, Term Loan
B, 1 Mo. LIBOR + 3.50%, 1.00% Floor ....................... 4.74% 10/04/20 14,805,568
14,924,135 Caesars Growth Partners LLC, Term Loan B, 1 Mo. LIBOR +
3.00%, 1.00% Floor ........................................ 4.24% 05/08/21 14,958,311
997,519 CityCenter Holdings LLC, Term Loan B, 1 Mo. LIBOR +
2.50%, 0.75% Floor ........................................ 3.73% 04/15/24 999,015
248,116 MGM Growth Properties Operating Partnership L.P., Term
Loan B, 1 Mo. LIBOR + 2.25%, 0.00% Floor .................. 3.49% 04/25/23 248,530
581,875 Penn National Gaming, Inc., Term Loan B, 3 Mo. LIBOR +
2.50%, 0.75% Floor ........................................ 3.80% 01/13/24 583,644
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46,525,875
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See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (b) MATURITY (c) VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED)
COAL & CONSUMABLE FUELS - 1.3%
$ 4,036,192 Arch Coal, Inc., Term Loan B, 1 Mo. LIBOR + 4.00%, 1.00%
Floor ..................................................... 5.24% 02/28/24 $ 4,063,960
516,357 Peabody Energy Corp., Exit Term Loan, 1 Mo. LIBOR +
4.50%, 1.00% Floor ........................................ 5.74% 02/28/22 519,843
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4,583,803
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DIVERSIFIED SUPPORT SERVICES - 1.4%
1,096,180 Brickman Group Holdings, Inc., Initial Term Loan (First
Lien), 1 Mo. LIBOR + 3.00%, 1.00% Floor ................... 4.23% 12/18/20 1,099,337
2,357,009 Brickman Group Holdings, Inc., Initial Term Loan (First
Lien), 1 Mo. LIBOR + 3.00%, 1.00% Floor ................... 4.24% 12/18/20 2,363,798
1,547,597 Brickman Group Holdings, Inc., Second Lien Term Loan, 1
Mo. LIBOR + 6.50%, 1.00% Floor ............................ 7.73% 12/31/21 1,552,302
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5,015,437
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ELECTRIC UTILITIES - 2.7%
9,500,000 Energy Future Intermediate Holding Co., DIP Term Loan, 1
Mo. LIBOR + 3.00%, 1.00% Floor ............................ 4.23% 06/28/18 9,538,000
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ENVIRONMENTAL & FACILITIES SERVICES - 0.4%
566,038 PSSI (Packers Holdings LLC), Term Loan B, 1 Mo. LIBOR +
3.50%, 1.00% Floor ........................................ 4.73% 12/02/21 570,283
965,000 WTG Holdings III Corp. (EWT Holdings III Corp.), Term
Loan (First Lien), 2 Mo. LIBOR + 3.75%, 1.00% Floor ....... 5.05% 01/15/21 974,650
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1,544,933
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FOOD DISTRIBUTORS - 0.5%
648,375 TKC Holdings, Inc., Term Loan B, 1 Mo. LIBOR + 4.25%,
1.00% Floor ............................................... 5.49% 01/31/23 650,197
994,975 US Foods, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 0.75%
Floor ..................................................... 3.99% 06/27/23 998,069
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1,648,266
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FOOD RETAIL - 1.9%
1,394,843 Albertsons LLC, Term Loan B6, 3 Mo. LIBOR + 3.00%, 0.75%
Floor ..................................................... 4.32% 06/22/23 1,354,156
4,743,010 Albertsons LLC, Term Loan B5, 2 Mo. LIBOR + 3.00%, 0.75%
Floor ..................................................... 4.29% 12/21/22 4,599,724
956,651 Albertsons LLC, Term Loan B4, 1 Mo. LIBOR + 2.75%, 0.75%
Floor ..................................................... 3.99% 08/25/21 927,607
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6,881,487
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See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (b) MATURITY (c) VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED)
HEALTH CARE EQUIPMENT - 4.3%
$ 8,039,114 Alere, Inc., Term B Loan, 1 Mo. LIBOR + 3.25%, 1.00%
Floor ..................................................... 4.49% 06/15/22 $ 8,020,705
3,530,054 DJO Finance LLC (ReAble Therapeutics Finance LLC),
Initial Term Loan , 1 Mo. LIBOR + 3.25%, 1.00%
Floor ..................................................... 4.48% 06/08/20 3,511,662
3,436,957 DJO Finance LLC (ReAble Therapeutics Finance LLC),
Initial Term Loan , 1 Mo. LIBOR + 3.25%, 1.00%
Floor ..................................................... 4.49% 06/08/20 3,419,051
200,000 Kinetic Concepts, Inc. (Acelity L.P., Inc.), Term Loan
B, 3 Mo. LIBOR + 3.25%, 1.00% Floor ....................... 4.55% 01/31/24 197,750
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15,149,168
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HEALTH CARE FACILITIES - 5.2%
10,142,301 CHS/Community Health Systems, Inc., Incremental 2021
Term H Loan, 3 Mo. LIBOR + 3.00%, 1.00% Floor ............. 4.32% 01/27/21 10,086,721
481,907 Concentra, Inc. (MJ Acquisition Corp.), Term Loan B, 2
Mo. LIBOR + 3.00%, 1.00% Floor ............................ 4.21% 06/01/22 483,714
136 Concentra, Inc. (MJ Acquisition Corp.), Term Loan B,
Prime + 2.00% ............................................. 6.25% 06/01/22 137
5,969,257 Kindred Healthcare, Inc., New Term Loan, 3 Mo. LIBOR +
3.50%, 1.00% Floor ........................................ 4.81% 04/09/21 5,948,723
1,951,328 National Veterinary Associates (NVA Holdings, Inc.),
Term Loan B2, 3 Mo. LIBOR + 3.50%, 1.00% Floor ............ 4.80% 08/14/21 1,958,646
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18,477,941
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HEALTH CARE SERVICES - 9.4%
1,984,810 Air Medical Group Holdings, Inc., Initial Term Loan, 1
Mo. LIBOR + 3.25%, 1.00% Floor ............................ 4.49% 04/28/22 1,925,266
992,481 Air Medical Group Holdings, Inc., Term Loan B1, 1 Mo.
LIBOR + 4.00%, 1.00% Floor................................. 5.23% 04/28/22 975,857
1,641,237 Air Methods Corp. (ASP AMC Intermediate Holdings, Inc.),
Term Loan B, 3 Mo. LIBOR + 3.50%, 1.00% Floor ............. 4.80% 04/13/24 1,594,052
4,880,030 CareCore National LLC, Term Loan B, 1 Mo. LIBOR + 4.00%,
1.00% Floor ............................................... 5.24% 03/06/21 4,941,031
3,769 CHG Healthcare Services, Inc., Term Loan B, 2 Mo. LIBOR
+ 3.25%, 1.00% Floor ...................................... 4.51% 06/07/23 3,795
1,484,924 CHG Healthcare Services, Inc., Term Loan B, 3 Mo. LIBOR
+ 3.25%, 1.00% Floor....................................... 4.56% 06/07/23 1,495,438
9,464 Curo Health Services Holdings, Inc., Term Loan B, 2 Mo.
LIBOR + 4.00%, 1.00% Floor................................. 5.26% 02/05/22 9,468
See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (b) MATURITY (c) VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED)
HEALTH CARE SERVICES (CONTINUED)
$ 3,698,655 Curo Health Services Holdings, Inc., Term Loan B, 3 Mo.
LIBOR + 4.00%, 1.00% Floor ................................ 5.31% 02/05/22 $ 3,700,209
1,851,500 Dupage Medical Group, Term Loan B, 3 Mo. LIBOR + 3.00%,
0.75% Floor ............................................... 4.32% 08/10/24 1,842,242
6,340,498 Envision Healthcare Corp. (Emergency Medical Services
Corp.), Term Loan B, 3 Mo. LIBOR + 3.00%, 0.75%
Floor ..................................................... 4.30% 11/15/23 6,383,296
3,980,000 ExamWorks Group, Inc., Term Loan B, 1 Mo. LIBOR + 3.25%,
1.00% Floor ............................................... 4.49% 07/27/23 3,996,159
1,885,714 Surgery Centers Holdings, Inc., Term Loan B, 1 Mo. LIBOR
+ 3.25%, 1.00% Floor....................................... 4.49% 06/30/24 1,866,065
4,389,000 Team Health, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%,
1.00% Floor ............................................... 3.99% 01/31/24 4,328,651
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33,061,529
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HEALTH CARE TECHNOLOGY - 1.4%
4,488,750 Change Healthcare Holdings, Inc., Term Loan B, 1 Mo.
LIBOR + 2.75%, 1.00% Floor ................................ 3.99% 02/02/24 4,486,506
497,494 Cotiviti Corp., Term Loan B, 3 Mo. LIBOR + 2.50%, 0.00%
Floor ..................................................... 3.80% 09/28/23 498,528
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4,985,034
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HUMAN RESOURCE & EMPLOYMENT SERVICES - 0.3%
928,571 Tempo Acquisition, Term Loan B, 1 Mo. LIBOR + 3.00%,
0.00% Floor ............................................... 4.23% 04/19/24 931,357
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HYPERMARKETS & SUPER CENTERS - 3.0%
8,864,605 BJ's Wholesale Club, Inc., 1st Lien Term Loan, 3 Mo.
LIBOR + 3.75%, 1.00% Floor ................................ 4.97% 01/31/24 8,528,991
1,999,733 BJ's Wholesale Club, Inc., 2nd Lien Term Loan, 3 Mo.
LIBOR + 7.50%, 1.00% Floor ................................ 8.71% 01/26/25 1,918,663
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10,447,654
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INDUSTRIAL CONGLOMERATES - 0.0%
104,651 Accudyne Industries, LLC, Term Loan B, 2 Mo. LIBOR +
3.75%, 1.00% Floor ........................................ 5.01% 08/15/24 104,619
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INSURANCE BROKERS - 3.6%
3,500,506 Confie Seguros Holding II Co., Term Loan B, 1 Mo. LIBOR
+ 5.50%, 1.00% Floor ...................................... 6.74% 03/30/22 3,454,999
6,122 HUB International Ltd., Initial Term Loan (New), 2 Mo.
LIBOR +3.25%, 1.00% Floor.................................. 4.51% 10/02/20 6,140
2,363,104 HUB International Ltd., Initial Term Loan (New), 3 Mo.
LIBOR + 3.25%, 1.00% Floor ................................ 4.56% 10/02/20 2,370,146
See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (b) MATURITY (c) VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED)
INSURANCE BROKERS (CONTINUED)
$ 2,418,571 National Financial Partners Corp., Term Loan B, 3 Mo.
LIBOR + 3.50%, 1.00% Floor ................................ 4.80% 12/09/23 $ 2,427,641
4,422,338 USI, Inc. (Compass Investors, Inc.), Term Loan B, 3 Mo.
LIBOR + 3.00%, 0.00% Floor ................................ 4.31% 05/15/24 4,395,627
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12,654,553
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INTEGRATED TELECOMMUNICATION SERVICES - 2.1%
7,412,354 Century Link (Qwest), Term Loan B, 1 Mo. LIBOR + 2.75%,
0.00% Floor ............................................... 2.75% 01/31/25 7,248,689
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INVESTMENT BANKING & BROKERAGE - 0.2%
377,055 LPL Holdings, Inc., Term Loan B, 3 Mo. LIBOR + 2.50%,
0.00% Floor ............................................... 3.73% 03/11/24 377,685
377,055 LPL Holdings, Inc., Term Loan B, 3 Mo. LIBOR + 2.50%,
0.00% Floor ............................................... 3.92% 03/11/24 377,685
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755,370
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LEISURE FACILITIES - 2.1%
5,286,000 ClubCorp Club Operations, Inc., Term Loan B, 1 Mo. LIBOR
+ 3.25%, 0.00% Floor ..................................... 4.59% 08/31/24 5,250,742
1,444,948 Planet Fitness Holdings LLC, Term Loan B, 1 Mo. LIBOR +
3.00%, 0.75% Floor ........................................ 4.24% 03/31/21 1,455,785
540,052 Planet Fitness Holdings LLC, Term Loan B, 3 Mo. LIBOR +
3.00%, 0.75% Floor ........................................ 4.30% 03/31/21 544,102
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7,250,629
-------------
LIFE SCIENCES TOOLS & SERVICES - 2.6%
814,691 Immucor, Inc., Term Loan B First Lien, 1 Mo. LIBOR +
5.00%, 1.00% Floor ........................................ 6.24% 06/25/21 824,875
4,974,359 Ortho-Clinical Diagnostics, Inc. (Crimson Merger Sub,
Inc.), Initial Term Loan, 3 Mo. LIBOR + 3.75%,
1.00% Floor ............................................... 5.05% 06/30/21 4,983,611
174,000 Parexel, Term Loan B, 1 Mo. LIBOR + 3.00%, 0.00% Floor........ 4.23% 08/31/24 174,348
234,243 Pharmaceutical Product Development, Inc., Term Loan B, 1
Mo. LIBOR + 2.75%, 1.00% Floor............................. 3.99% 08/18/22 234,730
261,960 Pharmaceutical Product Development, Inc., Term Loan B, 3
Mo. LIBOR + 2.75%, 1.00% Floor............................. 4.05% 08/18/22 262,505
2,793,000 Sterigenics International (STHI Intermediate Holding
Corp.), Term Loan B, 1 Mo. LIBOR + 3.00%, 1.00%
Floor ..................................................... 4.24% 05/15/22 2,789,509
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9,269,578
-------------
MANAGED HEALTH CARE - 2.2%
7,660,516 MultiPlan, Inc. (MPH Acquisition Holdings LLC), Term
Loan B, 3 Mo. LIBOR + 3.00%, 1.00% Floor .................. 4.30% 06/07/23 7,687,634
-------------
See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (b) MATURITY (c) VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED)
METAL & GLASS CONTAINERS - 0.8%
$ 1,800,886 Berlin Packaging LLC, Term Loan B, 1 Mo. LIBOR + 3.25%,
1.00% Floor................................................ 4.49% 10/01/21 $ 1,805,892
1,084,371 Berlin Packaging LLC, Term Loan B, 3 Mo. LIBOR + 3.25%,
1.00% Floor ............................................... 4.55% 10/01/21 1,087,386
-------------
2,893,278
-------------
MOVIES & ENTERTAINMENT - 1.5%
1,915,375 Creative Artists Agency LLC (CAA Holdings LLC), Term
Loan B, 1 Mo. LIBOR + 3.50%, 1.00% Floor .................. 4.73% 02/15/24 1,925,756
3,202,145 Formula One (Delta 2 Lux S.A.R.L.), Facility B3 (USD)
Loan, 1 Mo. LIBOR + 3.25%, 1.00% Floor .................... 4.49% 02/01/24 3,220,814
-------------
5,146,570
-------------
OTHER DIVERSIFIED FINANCIAL SERVICES - 0.5%
494,072 First Data Corp., Term Loan 2024, 1 Mo. LIBOR + 2.50%, 3.74% 04/21/24 494,072
0.00% Floor ...............................................
380,000 iPayment, Inc., Term Loan, 3 Mo. LIBOR + 6.00%, 1.00% 7.31% 04/06/23 382,850
Floor ....................................................
992,481 Wex, Inc., Term Loan B, 1 Mo. LIBOR + 2.75%, 0.00% Floor ..... 3.99% 07/01/23 999,061
-------------
1,875,983
-------------
PACKAGED FOODS & MEATS - 2.2%
2,984,962 Amplify Snack Brands, Inc., Term Loan B, 1 Mo. LIBOR +
5.50%, 1.00% Floor ........................................ 6.74% 08/31/23 2,947,650
274,286 Blue Buffalo Company, Ltd., Term Loan B, 1 Mo. LIBOR +
2.00%, 0.00% Floor ........................................ 3.23% 05/22/24 274,972
4,420,970 New HB Acquisition LLC, Term Loan B, 1 Mo. LIBOR +
2.50%, 0.75% Floor ........................................ 3.74% 08/03/22 4,430,917
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7,653,539
-------------
PAPER PACKAGING - 2.3%
7,971,517 Reynolds Group Holdings, Inc., Term Loan B, 1 Mo. LIBOR
+ 3.00%, 0.00% Floor ...................................... 4.24% 02/05/23 7,975,344
-------------
PHARMACEUTICALS - 6.6%
1,000,000 Akorn, Inc., Loan, 1 Mo. LIBOR + 4.25%, 1.00% Floor .......... 5.50% 04/16/21 1,011,250
558,571 Amneal Pharmaceuticals LLC, Term Loan B, 3 Mo. LIBOR +
3.50%, 1.00% Floor ........................................ 4.80% 11/01/19 560,901
991,117 Catalent Pharma Solutions, Inc., Term Loan B, 1 Mo.
LIBOR + 2.75%, 1.00% Floor ................................ 3.99% 05/20/21 995,657
2,934,180 Endo Pharmaceuticals Holdings, Inc., Term Loan B, 1 Mo.
LIBOR + 4.25%, 0.75% Floor ................................ 5.50% 04/06/24 2,953,428
2,992,500 Horizon Pharma, Inc., Term Loan B, 1 Mo. LIBOR + 3.75%,
1.00% Floor ............................................... 5.00% 03/22/24 3,018,684
See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (b) MATURITY (c) VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED)
PHARMACEUTICALS (CONTINUED)
$ 14,631,221 Valeant Pharmaceuticals International, Inc., Series F-1
Tranche B Term Loan, 1 Mo. LIBOR + 4.75%, 0.75%
Floor ..................................................... 5.99% 04/01/22 $ 14,875,123
-------------
23,415,043
-------------
REAL ESTATE SERVICES - 0.9%
140,586 DTZ Worldwide LTD., 2015-1 Additional Term Loan, 3 Mo.
LIBOR + 3.25%, 1.00% Floor ................................ 4.55% 11/04/21 140,812
962,868 DTZ Worldwide LTD., 2015-1 Additional Term Loan, 3 Mo.
LIBOR + 3.25%, 1.00% Floor ................................ 4.56% 11/04/21 964,418
2,142,700 DTZ Worldwide LTD., 2015-1 Additional Term Loan, 3 Mo.
LIBOR + 3.25%, 1.00% Floor ................................ 4.57% 11/04/21 2,146,150
-------------
3,251,380
-------------
RESEARCH & CONSULTING SERVICES - 6.4%
6,964,194 Advantage Sales & Marketing, Inc., Initial Term Loan
(First Lien), 3 Mo. LIBOR + 3.25%, 1.00% Floor ............ 4.55% 07/23/21 6,690,850
3,000,000 Information Resources, Inc., Second Lien Term Loan, 1
Mo. LIBOR + 8.25%, 1.00% Floor ............................ 9.49% 12/31/24 2,988,750
12,967,500 Information Resources, Inc., Term Loan B, 1 Mo. LIBOR +
4.25%, 1.00% Floor ........................................ 5.49% 12/31/23 13,048,547
-------------
22,728,147
-------------
RESTAURANTS - 3.6%
1,899,980 Portillo's Holdings LLC, Second Lien Term Loan, 3 Mo.
LIBOR + 8.00%, 1.00% Floor ................................ 9.30% 08/15/22 1,909,480
7,942,418 Portillo's Holdings LLC, Term B Loan (First Lien), 3 Mo.
LIBOR + 4.50%, 1.00% Floor ................................ 5.80% 08/02/21 7,952,346
2,977,041 Red Lobster Management LLC, Initial Term Loan (First
Lien), 1 Mo. LIBOR + 5.25%, 1.00% Floor ................... 6.49% 07/28/21 2,999,368
-------------
12,861,194
-------------
RETAIL REITS - 0.3%
1,066,037 Capital Automotive LLC, 1st Lien Term Loan, 1 Mo. LIBOR
+ 3.00%, 1.00% Floor ...................................... 4.24% 03/15/24 1,070,610
-------------
SECURITY & ALARM SERVICES - 0.3%
1,117,241 Garda World Security Corp., Term Loan B, 3 Mo. LIBOR +
4.00%, 1.00% Floor......................................... 5.31% 05/15/24 1,123,296
2,807 Garda World Security Corp., Term Loan B, Prime + 3.00%........ 7.25% 05/15/24 2,822
-------------
1,126,118
-------------
See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (b) MATURITY (c) VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED)
SEMICONDUCTORS - 0.9%
$ 1,089,620 Micron Technology, Inc., Term Loan B, 3 Mo. LIBOR +
2.50%, 0.00% Floor ........................................ 3.80% 04/26/22 $ 1,096,300
1,985,013 Western Digital Corp., Term Loan B, 1 Mo. LIBOR + 2.75%,
0.75% Floor ............................................... 3.98% 04/10/23 1,994,382
-------------
3,090,682
-------------
SPECIALIZED CONSUMER SERVICES - 2.8%
9,800,374 Asurion LLC, Replacement TL B-5, 1 Mo. LIBOR + 3.00%,
0.00% Floor ............................................... 4.24% 11/03/23 9,837,126
-------------
SPECIALIZED FINANCE - 3.6%
8,930,811 AlixPartners LLP, Term Loan B, 3 Mo. LIBOR + 3.00%,
1.00% Floor................................................ 4.30% 04/29/24 8,971,714
3,711,564 Duff & Phelps Corp., Initial Term Loan , 3 Mo. LIBOR +
3.75%, 1.00% Floor ........................................ 5.05% 04/23/20 3,731,681
-------------
12,703,395
-------------
SPECIALTY STORES - 0.9%
16,635 Party City Holdings, Inc., Term Loan B, 3 Mo. LIBOR +
3.00%, 0.75% Floor ........................................ 4.30% 08/19/22 16,643
231,490 Party City Holdings, Inc., Term Loan B, 3 Mo. LIBOR +
3.00%, 0.75% Floor ........................................ 4.32% 08/19/22 231,599
2,863,272 Toys "R" US-Delaware, Inc., Term B-2 Loan, 3 Mo. LIBOR +
3.75%, 1.50% Floor ........................................ 5.25% 05/25/18 2,720,109
496,173 Toys "R" US-Delaware, Inc., Term B4 Loan, 3 Mo. LIBOR +
8.75%, 1.00% Floor ........................................ 10.07% 04/25/20 379,984
-------------
3,348,335
-------------
SYSTEMS SOFTWARE - 9.9%
2,986,429 Applied Systems, Inc., Initial Term Loan (Second Lien),
3 Mo. LIBOR + 6.50%, 1.00% Floor .......................... 7.80% 01/24/22 3,023,759
2,079,575 Avast Software B.V. (Sybil Software LLC), Term Loan B, 3
Mo. LIBOR + 3.25%, 1.00% Floor ............................ 4.50% 09/30/23 2,090,410
13,844,177 BMC Software Finance, Inc., Term Loan B, 1 Mo. LIBOR +
4.00%, 1.00% Floor ........................................ 5.24% 09/10/22 13,884,602
7,813,400 Compuware Corp., Term Loan B3, 3 Mo. LIBOR + 4.25%,
1.00% Floor ............................................... 5.55% 12/15/21 7,891,534
746,667 Misys Financial Software Ltd., Term Loan B, 3 Mo. LIBOR
+ 3.50%, 1.00% Floor ...................................... 4.82% 05/15/24 749,840
1,069,925 Riverbed Technology, Inc., Term Loan B, 1 Mo. LIBOR +
3.25%, 1.00% Floor ........................................ 4.49% 04/24/22 1,037,603
6,298,275 Vertafore, Inc., Term Loan B, 3 Mo. LIBOR + 3.25%, 1.00%
Floor ..................................................... 4.55% 06/17/23 6,317,170
-------------
34,994,918
-------------
See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED
VALUE DESCRIPTION RATE (b) MATURITY (c) VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
SENIOR FLOATING-RATE LOAN INTERESTS (CONTINUED)
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS - 0.2%
$ 551,298 Dell, Inc. (Diamond 1 Finance Corp.), Term Loan B, 1 Mo.
LIBOR + 2.50%, 0.75% Floor ................................ 3.74% 09/07/23 $ 553,343
-------------
TRADING COMPANIES & DISTRIBUTORS - 1.0%
3,480,000 Avolon Holding LTD., Term Loan B2, 1 Mo. LIBOR + 2.75%,
0.75% Floor ............................................... 3.98% 01/19/22 3,489,466
-------------
TOTAL SENIOR FLOATING-RATE LOAN INTERESTS ............................................... 415,743,430
(Cost $416,335,284) -------------
PRINCIPAL STATED STATED
VALUE DESCRIPTION COUPON MATURITY VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
CORPORATE BONDS AND NOTES - 16.8%
BROADCASTING - 5.3%
4,146,000 Gray Television, Inc. (d)..................................... 5.13% 10/15/24 4,213,373
3,762,000 Gray Television, Inc. (d)..................................... 5.88% 07/15/26 3,884,265
7,335,000 Nexstar Broadcasting, Inc. (d)................................ 5.63% 08/01/24 7,610,062
3,000,000 Sinclair Television Group, Inc. (d)........................... 5.63% 08/01/24 3,075,900
-------------
18,783,600
-------------
CASINOS & GAMING - 0.2%
570,000 Caesars Entertainment Resort Properties LLC/Caesars
Entertainment Resort Properties Finance, Inc. ............. 11.00% 10/01/21 607,050
-------------
HEALTH CARE FACILITIES - 5.3%
3,038,600 CHS/Community Health Systems, Inc. ........................... 8.00% 11/15/19 3,023,407
250,000 HCA, Inc. .................................................... 5.38% 02/01/25. 264,375
2,000,000 HealthSouth Corp. ............................................ 5.13% 03/15/23 2,055,000
1,000,000 HealthSouth Corp. ............................................ 5.75% 11/01/24 1,032,500
250,000 Kindred Healthcare, Inc. ..................................... 6.38% 04/15/22 228,750
3,791,000 Lifepoint Health, Inc. ....................................... 5.38% 05/01/24 3,933,163
2,000,000 Select Medical Corp. ......................................... 6.38% 06/01/21 2,066,920
1,450,000 Tenet Healthcare Corp. ....................................... 8.00% 08/01/20 1,471,460
4,361,000 Tenet Healthcare Corp. ....................................... 8.13% 04/01/22 4,589,952
-------------
18,665,527
-------------
HEALTH CARE SERVICES - 0.7%
1,487,000 DaVita, Inc. ................................................. 5.00% 05/01/25 1,511,238
1,000,000 Envision Healthcare Corp. (d)................................. 6.25% 12/01/24 1,080,000
-------------
2,591,238
-------------
HOMEBUILDING - 0.4%
450,000 CalAtlantic Group, Inc. ...................................... 5.25% 06/01/26 465,187
1,000,000 KB Home ...................................................... 7.63% 05/15/23 1,132,500
-------------
1,597,687
-------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.6%
2,439,000 Calpine Corp. ................................................ 5.50% 02/01/24 2,271,319
-------------
See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
PRINCIPAL STATED STATED
VALUE DESCRIPTION COUPON MATURITY VALUE
-------------- -------------------------------------------------------------- ----------- ------------ -------------
CORPORATE BONDS AND NOTES (CONTINUED)
MANAGED HEALTH CARE - 2.2%
$ 250,000 Centene Corp. ................................................ 4.75% 01/15/25 $ 258,750
7,000,000 MPH Acquisition Holdings LLC (d).............................. 7.13% 06/01/24 7,525,000
-------------
7,783,750
-------------
OIL & GAS EXPLORATION & PRODUCTION - 0.3%
934,000 Tallgrass Energy Partners LP/Tallgrass Energy Finance
Corp. (d).................................................. 5.50% 09/15/24 938,670
-------------
PAPER PACKAGING - 0.4%
1,377,000 Reynolds Group Issuer, Inc./Reynolds Group Issuer
LLC/Reynolds Group Issuer Lu. (d).......................... 7.00% 07/15/24 1,477,693
-------------
REAL ESTATE SERVICES - 0.5%
1,676,000 Realogy Group LLC/Realogy Co-Issuer Corp. (d)................. 4.88% 06/01/23 1,717,900
-------------
RESTAURANTS - 0.2%
560,000 Landry's, Inc. (d)............................................ 6.75% 10/15/24 568,400
-------------
WIRELESS TELECOMMUNICATION SERVICES - 0.7%
2,285,000 SBA Communications Corp. ..................................... 4.88% 09/01/24 2,364,975
-------------
TOTAL CORPORATE BONDS AND NOTES ......................................................... 59,367,809
(Cost $58,017,307) -------------
FOREIGN CORPORATE BONDS AND NOTES - 1.0%
CABLE & SATELLITE - 0.3%
500,000 Virgin Media Secured Finance PLC (d).......................... 5.50% 08/15/26 530,000
545,000 Ziggo Secured Finance B.V. (d)................................ 5.50% 01/15/27 563,394
-------------
1,093,394
-------------
METAL & GLASS CONTAINERS - 0.1%
468,000 Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.
(d)........................................................ 4.25% 09/15/22 480,870
-------------
PHARMACEUTICALS - 0.6%
1,000,000 Mallinckrodt International Finance S.A./Mallinckrodt CB
LLC (d).................................................... 5.75% 08/01/22 990,000
1,145,000 Valeant Pharmaceuticals International, Inc. (d)............... 5.38% 03/15/20 1,134,981
-------------
2,124,981
-------------
TOTAL FOREIGN CORPORATE BONDS AND NOTES ................................................. 3,699,245
(Cost $3,589,798) -------------
See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
SHARES DESCRIPTION VALUE
-------------- ----------------------------------------------------------------------------------------- -------------
MONEY MARKET FUNDS - 2.0%
7,014,043 Morgan Stanley Institutional Liquidity Fund - Treasury Portfolio -
Institutional Class - 0.88% (e)........................................................ $ 7,014,043
(Cost $7,014,043)
TOTAL INVESTMENTS - 137.7% .............................................................. 485,824,527
(Cost $484,956,432) (f)
OUTSTANDING LOAN - (35.4%) .............................................................. (125,000,000)
NET OTHER ASSETS AND LIABILITIES - (2.3%) ............................................... (8,172,336)
-------------
NET ASSETS - 100.0% ..................................................................... $ 352,652,191
=============
-----------------------------
(a) All of these securities are available to serve as collateral for the
outstanding loans.
(b) Senior Floating-Rate Loan Interests ("Senior Loans") in which the Fund
invests pay interest at rates which are periodically predetermined 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 United States banks or (iii) the
certificate of deposit rate. Certain Senior Loans are subject to a LIBOR
floor that establishes a minimum LIBOR rate. The interest rate shown
reflects the rate in effect at August 31, 2017.
(c) Senior Loans generally are subject to mandatory and/or optional
prepayment. As a result, the actual remaining maturity of Senior Loans may
be substantially less than the stated maturities shown.
(d) This security, sold within the terms of a private placement memorandum, is
exempt from registration upon resale under Rule 144A under the Securities
Act of 1933, as amended, and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. Pursuant to
procedures adopted by the Fund's Board of Trustees, this security has been
determined to be liquid by First Trust Advisors L.P., the Fund's advisor.
Although market instability can result in periods of increased overall
market illiquidity, liquidity for each security is determined based on
security specific factors and assumptions, which require subjective
judgment. At August 31, 2017, securities noted as such amounted to
$35,790,508 or 10.1% of net assets.
(e) Rate shown reflects yield as of August 31, 2017.
(f) Aggregate cost for financial reporting purposes approximates the aggregate
cost for federal income tax purposes. As of August 31, 2017, the aggregate
gross unrealized appreciation for all investments in which there was an
excess of value over tax cost was $3,060,678 and the aggregate gross
unrealized depreciation for all investments in which there was an excess
of tax cost over value was $2,192,583. The net unrealized appreciation was
$868,095.
See Notes to Portfolio of Investments
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2017 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of August 31,
2017 is as follows (see Note 2A - Portfolio Valuation in the Notes to Portfolio
of Investments):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
8/31/2017 PRICES INPUTS INPUTS
------------- ------------- ------------- -------------
Senior Floating-Rate Loan Interests*............. $ 415,743,430 $ -- $ 415,743,430 $ --
Corporate Bonds and Notes*....................... 59,367,809 -- 59,367,809 --
Foreign Corporate Bonds and Notes*............... 3,699,245 -- 3,699,245 --
Money Market Funds............................... 7,014,043 7,014,043 -- --
------------- ------------- ------------- -------------
Total Investments................................ $ 485,824,527 $ 7,014,043 $ 478,810,484 $ --
============= ============= ============= =============
* See Portfolio of Investments for industry breakout.
All transfers in and out of the Levels during the period are assumed to occur on
the last day of the period at their current value. There were no transfers
between Levels at August 31, 2017.
See Notes to Portfolio of Investments
NOTES TO PORTFOLIO OF INVESTMENTS
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
AUGUST 31, 2017 (UNAUDITED)
1. ORGANIZATION
First Trust Senior Floating Rate 2022 Target Term Fund (the "Fund") is a
diversified, closed-end management investment company organized as a
Massachusetts business trust on October 14, 2016, and is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Fund trades under the ticker symbol FIV on the New
York Stock Exchange ("NYSE").
The Fund is considered an investment company and follows accounting and
reporting guidance under Financial Accounting Standards Board Accounting
Standards Codification Topic 946, "Financial Services-Investment Companies."
2. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION
The net asset value ("NAV") of the Common Shares of the Fund is determined daily
as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time,
on each day the NYSE is open for trading. If the NYSE closes early on a
valuation day, the NAV is determined as of that time. Domestic debt securities
and foreign securities are priced using data reflecting the earlier closing of
the principal markets for those securities. The Fund's NAV per Common Share is
calculated by dividing the value of all assets of the Fund (including accrued
interest and dividends), less all liabilities (including accrued expenses,
dividends declared but unpaid and any borrowings of the Fund), by the total
number of Common Shares outstanding.
The Fund's investments are valued daily at market value or, in the absence of
market value with respect to any portfolio securities, at fair value. Market
value prices represent last sale or official closing prices from a national or
foreign exchange (i.e., a regulated market) and are primarily obtained from
third-party pricing services. Fair value prices represent any prices not
considered market value prices and are either obtained from a third-party
pricing service or are determined by the Pricing Committee of the Fund's
investment advisor, First Trust Advisors L.P. ("First Trust" or the "Advisor"),
in accordance with valuation procedures adopted by the Fund's Board of Trustees,
and in accordance with provisions of the 1940 Act. Investments valued by the
Advisor's Pricing Committee, if any, are footnoted as such in the footnotes to
the Portfolio of Investments. The Fund's investments are valued as follows:
The senior floating-rate loan interests ("Senior Loans")1 in which the
Fund invests are not listed on any securities exchange or board of trade.
Senior Loans are typically bought and sold by institutional investors in
individually negotiated private transactions that function in many
respects like an over-the-counter secondary market, although typically no
formal market-makers exist. This market, while having grown substantially
since its inception, generally has fewer trades and less liquidity than
the secondary market for other types of securities. Some Senior Loans have
few or no trades, or trade infrequently, and information regarding a
specific Senior Loan may not be widely available or may be incomplete.
Accordingly, determinations of the fair market value of Senior Loans may
be based on infrequent and dated information. Because there is less
reliable, objective data available, elements of judgment may play a
greater role in valuation of Senior Loans than for other types of
securities. Typically, Senior Loans are fair valued using information
provided by a third-party pricing service. The third-party pricing service
primarily uses over-the-counter pricing from dealer runs and broker quotes
from indicative sheets to value the Senior Loans. If the third-party
pricing service cannot or does not provide a valuation for a particular
Senior Loan or such valuation is deemed unreliable, the Advisor's Pricing
Committee may value such Senior Loan at fair value according to procedures
adopted by the Fund's Board of Trustees, and in accordance with the
provisions of the 1940 Act. Fair valuation of a Senior Loan is based on
the consideration of all available information, including, but not limited
to the following:
1) the fundamental business data relating to the borrower/issuer;
2) an evaluation of the forces which influence the market in
which these securities are purchased and sold;
3) the type, size and cost of the security;
4) the financial statements of the borrower/issuer;
5) the credit quality and cash flow of the borrower/issuer, based
on the Advisor's or external analysis;
6) the information as to any transactions in or offers for the
security;
7) the price and extent of public trading in similar securities
(or equity securities) of the borrower/issuer, or comparable
companies;
8) the coupon payments;
9) the quality, value and salability of collateral, if any,
securing the security;
10) the business prospects of the borrower/issuer, including any
ability to obtain money or resources from a parent or
affiliate and an assessment of the borrower's/issuer's
management;
11) the prospects for the borrower's/issuer's industry, and
multiples (of earnings and/or cash flows) being paid for
similar businesses in that industry;
12) borrower's/issuer's competitive position within the industry;
13) borrower's/issuer's ability to access additional liquidity
through public and/or private markets; and
14) other relevant factors.
(1) The terms "security" and "securities" used throughout the Notes to
Portfolio of Investments include Senior Loans.
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
AUGUST 31, 2017 (UNAUDITED)
Securities traded in an over-the-counter market are fair valued at the
mean of their most recent bid and asked price, if available, and otherwise
at their closing bid price.
Corporate bonds, corporate notes and other debt securities are valued on
the basis of valuations provided by dealers who make markets in such
securities or by a third-party pricing service approved by the Fund's
Board of Trustees, which may use the following valuation inputs when
available:
1) benchmark yields;
2) reported trades;
3) broker/dealer quotes;
4) issuer spreads;
5) benchmark securities;
6) bids and offers; and
7) reference data including market research publications.
Fixed-income and other debt securities having a remaining maturity of 60
days or less when purchased are fair valued at cost adjusted for
amortization of premiums and accretion of discounts (amortized cost),
provided the Advisor's Pricing Committee has determined that the use of
amortized cost is an appropriate reflection of fair value given market and
issuer-specific conditions existing at the time of the determination.
Factors that may be considered in determining the appropriateness of the
use of amortized cost include, but are not limited to, the following:
1) the credit conditions in the relevant market and changes
thereto;
2) the liquidity conditions in the relevant market and changes
thereto;
3) the interest rate conditions in the relevant market and
changes thereto (such as significant changes in interest
rates);
4) issuer-specific conditions (such as significant credit
deterioration); and
5) any other market-based data the Advisor's Pricing Committee
considers relevant. In this regard, the Advisor's Pricing
Committee may use last-obtained market-based data to assist it
when valuing portfolio securities using amortized cost.
Shares of open-end funds are valued at fair value which is based on NAV
per share.
Certain securities may not be able to be priced by pre-established pricing
methods. Such securities may be valued by the Fund's Board of Trustees or its
delegate, the Advisor's Pricing Committee, at fair value. These securities
generally include, but are not limited to, restricted securities (securities
which may not be publicly sold without registration under the Securities Act of
1933, as amended (the "1933 Act")) for which a third-party pricing service is
unable to provide a market price; securities whose trading has been formally
suspended; a security whose market or fair value price is not available from a
pre-established pricing source; a security with respect to which an event has
occurred that is likely to materially affect the value of the security after the
market has closed but before the calculation of the Fund's NAV or make it
difficult or impossible to obtain a reliable market quotation; and a security
whose price, as provided by the third-party pricing service, does not reflect
the security's fair value. As a general principle, the current fair value of a
security would appear to be the amount which the owner might reasonably expect
to receive for the security upon its current sale. When fair value prices are
used, generally they will differ from market quotations or official closing
prices on the applicable exchanges. A variety of factors may be considered in
determining the fair value of such securities, including, but not limited to,
the following:
1) the type of security;
2) the size of the holding;
3) the initial cost of the security;
4) transactions in comparable securities;
5) price quotes from dealers and/or pricing services; 6)
relationships among various securities;
7) information obtained by contacting the issuer, analysts, or
the appropriate stock exchange; 8) an analysis of the issuer's
financial statements; and
9) the existence of merger proposals or tender offers that might
affect the value of the security.
The Fund is subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:
o Level 1 - Level 1 inputs are quoted prices in active markets for
identical investments. An active market is a market in which
transactions for the investment occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.
o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets
that are non-active. A non-active market is a market where
there are few transactions for the investment, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
FIRST TRUST SENIOR FLOATING RATE 2022 TARGET TERM FUND (FIV)
AUGUST 31, 2017 (UNAUDITED)
o Inputs other than quoted prices that are observable for the
investment (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).
o Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
investment.
The inputs or methodologies used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of the inputs used to value the Fund's investments as of August 31, 2017, is
included with the Fund's Portfolio of Investments.
B. SECURITY TRANSACTIONS
Security transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Securities purchased or sold on a when-issued, delayed-delivery or forward
purchase commitment basis may have extended settlement periods. The value of the
security so purchased is subject to market fluctuations during this period. Due
to the nature of the Senior Loan market, the actual settlement date may not be
certain at the time of the purchase or sale for some of the Senior Loans.
Interest income on such Senior Loans is not accrued until settlement date. The
Fund maintains liquid assets with a current value at least equal to the amount
of its when-issued, delayed delivery or forward purchase commitments. The Fund
had no when-issued, delayed-delivery or forward purchase commitments as of
August 31, 2017.
C. UNFUNDED LOAN COMMITMENTS
The Fund may enter into certain credit agreements, all or a portion of which may
be unfunded. The Fund is obligated to fund these loan commitments at the
borrower's discretion. The Fund had no unfunded delayed draw loan commitments as
of August 31, 2017.
ITEM 2. CONTROLS AND PROCEDURES.
(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") (17 CFR
270.30a-3(c))) are effective, as of a date within 90 days of the filing
date of the report that includes the disclosure required by this
paragraph, based on their evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as
amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(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 (17 CFR
270.30a-3(d)) that occurred during the registrant's last fiscal quarter
that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) First Trust Senior Floating Rate 2022 Target Term Fund
--------------------------------------------------------
By (Signature and Title)* /s/ James M. Dykas
----------------------------------------
James M. Dykas
President and Chief Executive Officer
(principal executive officer)
Date: October 19, 2017
------------------
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 (Signature and Title)* /s/ James M. Dykas
----------------------------------------
James M. Dykas
President and Chief Executive Officer
(principal executive officer)
Date: October 19, 2017
------------------
By (Signature and Title)* /s/ Donald P. Swade
----------------------------------------
Donald P. Swade
Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date: October 19, 2017
------------------
*Print the name and title of each signing officer under his or her signature.
CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF
THE SARBANES-OXLEY ACT
I, James M. Dykas, certify that:
1. I have reviewed this report on Form N-Q of First Trust Senior Floating
Rate 2022 Target Term Fund;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the
registrant as of the end of the fiscal quarter for which the report is
filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) and
internal control over financial reporting (as defined in Rule 30a-3(d)
under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known
to us by others within those entities, particularly during the
period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report, based
on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the
registrant's most recent fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal control over financial reporting.
Date: October 19, 2017 /s/ James M. Dykas
------------------ ----------------------------------------
James M. Dykas
President and Chief Executive Officer
(principal executive officer)
CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF
THE SARBANES-OXLEY ACT
I, Donald P. Swade, certify that:
1. I have reviewed this report on Form N-Q of First Trust Senior Floating
Rate 2022 Target Term Fund;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the
registrant as of the end of the fiscal quarter for which the report is
filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) and
internal control over financial reporting (as defined in Rule 30a-3(d)
under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known
to us by others within those entities, particularly during the
period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report, based
on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the
registrant's most recent fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal control over financial reporting.
Date: October 19, 2017 /s/ Donald P. Swade
------------------ ----------------------------------------
Donald P. Swade
Treasurer, Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
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