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 811-21318
Name of Fund: BlackRock Corporate High Yield Fund VI, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock Corporate High Yield Fund VI, Inc., 800 Scudders Mill
Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton,
NJ 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 08/31/07
Date of reporting period: 09/01/06 - 02/28/07
Item 1 - Report to Stockholders
ALTERNATIVES BLACKROCK SOLUTIONS EQUITIES
FIXED INCOME LIQUIDITY REAL ESTATE
BlackRock Corporate High Yield BLACKROCK
Fund VI, Inc.
SEMI-ANNUAL REPORT
FEBRUARY 28, 2007 | (UNAUDITED)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
BlackRock Corporate High Yield Fund VI, Inc.
The Benefits and Risks of Leveraging
BlackRock Corporate High Yield Fund VI, Inc. utilizes leveraging through
borrowings or issuance of short-term debt securities or shares of Preferred
Stock. The concept of leveraging is based on the premise that the cost of assets
to be obtained from leverage will be based on short-term interest rates, which
normally will be lower than the yield earned by the Fund on its longer-term
portfolio investments. Since the total assets of the Fund (including the assets
obtained from leverage) are invested in higher-yielding portfolio investments,
the Fund's Common Stock shareholders are the beneficiaries of the incremental
yield.
Leverage creates risks for holders of Common Stock including the likelihood of
greater net asset value and market price volatility. In addition, there is the
risk that fluctuations in interest rates on borrowings (or in the dividend rates
on any Preferred Stock, if the Fund were to issue Preferred Stock) may reduce
the Common Stock's yield and negatively impact its net asset value and market
price. If the income derived from securities purchased with assets received from
leverage exceeds the cost of leverage, the Fund's net income will be greater
than if leverage had not been used. Conversely, if the income from the
securities purchased is not sufficient to cover the cost of leverage, the Fund's
net income will be less than if leverage had not been used, and therefore the
amount available for distribution to Common Stock shareholders will be reduced.
Announcement of Annual Stockholders Meeting
The Fund has determined that its annual stockholders meeting originally
scheduled to be held in April 2007 will be postponed and will be held in
September 2007. Proposals of stockholders intended to be presented at the
meeting must be received by the Fund by May 15, 2007 for inclusion in the Fund's
proxy statement and form of proxy for that meeting. The persons named as proxies
in the proxy materials for the Fund's 2007 annual meeting of stockholders may
exercise discretionary authority with respect to any stockholder proposal
presented at such meeting if written notice of such proposal has not been
received by the Fund by July 1, 2007. Written proposals and notices should be
sent to the Secretary of the Fund, 800 Scudders Mill Road, Plainsboro, New
Jersey 08536.
2 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007
A Letter to Shareholders
Dear Shareholder
The new year began on a positive note for most financial markets, continuing the
momentum from the fourth quarter of 2006. At the end of February, however,
global equity markets registered their first significant decline since last
summer. The market jitters were triggered by a significant setback in the
Chinese market and were exacerbated by several concerns, notably a weakening
economy, some disappointing corporate earnings announcements, geopolitical
concerns related to Iran's nuclear program and increasing delinquencies in the
subprime mortgage market. Despite the recent spate of volatility, underlying
stock market fundamentals appear quite sound, supported by a generally good
global economic backdrop, tame inflation, relatively low interest rates and
attractive valuations.
Not unlike the equity market, the bond market also has seen volatility recently
as observers have attempted to interpret mixed economic signals. A bond market
rally late last year reversed early in 2007 as the economic data strengthened.
Prices improved (and yields fell) again in February as equities struggled.
Notably, the Treasury curve remained inverted for much of 2006 and into 2007.
The 30-year Treasury yield stood at 4.68% on February 28, 2007, while the
one-month Treasury offered the highest yield on the curve at 5.24%.
For its part, the Federal Reserve Board (the Fed) has left the target short-term
interest rate on hold at 5.25% since first pausing on August 8, 2006. Although
the central bankers continue to express concern about potential inflationary
pressures, they also have made reference to signs of economic weakness in their
public statements. Most observers expect the Fed to keep interest rates on hold
for now, but acknowledge that the combination of a mild economic slowdown and
moderating inflation could prompt an interest rate cut later in 2007.
Notwithstanding the volatility along the way, most major market indexes managed
to post positive returns for the annual and semi-annual reporting periods ended
February 28, 2007:
Total Returns as of February 28, 2007 6-month 12-month
===============================================================================================
U.S. equities (Standard & Poor's 500 Index) + 8.93% +11.97%
-----------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) +10.76 + 9.87
-----------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +12.17 +21.07
-----------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers Aggregate Bond Index) + 3.66 + 5.54
-----------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 2.89 + 4.96
-----------------------------------------------------------------------------------------------
High yield bonds (Credit Suisse High Yield Index) + 8.62 +12.36
-----------------------------------------------------------------------------------------------
If the recent market movements are any guide, 2007 could be a year of enhanced
market volatility. As you navigate the uncertainties of the financial markets,
we encourage you to review your investment goals with your financial
professional and to make portfolio changes, as needed. We thank you for trusting
BlackRock with your investment assets, and we look forward to continuing to
serve you in the months and years ahead.
Sincerely,
/s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
Fund President and Director
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 3
A Discussion With Your Fund's Portfolio Managers
The Fund outperformed its benchmark for the semi-annual period, benefiting
from a robust high yield market and, in particular, an overweight exposure to
lower-rated issues, which generated the strongest returns.
How did the Fund perform during the period in light of the existing market
conditions?
For the six-month period ended February 28, 2007, the Common Stock of BlackRock
Corporate High Yield Fund VI, Inc. had net annualized yields of 7.34% and 8.05%,
based on a period-end per share net asset value of $14.83 and a per share market
price of $13.53, respectively, and $.540 per share income dividends. For the
same period, the total investment return on the Fund's Common Stock was +9.41%,
based on a change in per share net asset value from $14.12 to $14.83, and
assuming reinvestment of all distributions. By comparison, the high yield bond
market, as measured by the Credit Suisse High Yield Index, returned +8.62%,
while the Fund's comparable Lipper category of High Current Yield Funds
(Leveraged) had an average return of +9.74% for the six-month period. (Funds in
this Lipper category aim for relatively high current yield from investment in
fixed income securities, have no quality or maturity restrictions, and tend to
invest in lower-grade debt issues.)
For a description of the Fund's total investment return based on a change in the
per share market value of the Fund's Common Stock (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and assuming
reinvestment of distributions, please refer to the Financial Highlights section
of this report. As a closed-end fund, the Fund's shares may trade in the
secondary market at a premium or a discount to the Fund's net asset value. As a
result, total investment returns based on changes in the market value of the
Fund's Common Stock can vary significantly from total investment returns based
on changes in the Fund's net asset value.
Despite some volatility late in the reporting period, the high yield bond market
continued to post strong results, with returns in excess of 1% in each of the
past six months. The market has been aided by the continuation of historically
low default rates, relatively low new-issue supply and strong inflows into the
asset class, all of which have helped to support the prices of high yield
issues.
What factors most influenced Fund performance?
The Fund benefited from its overweight exposure to lower-tiered credits, in
particular B-rated and CCC-rated issues, as these segments of the high yield
market generated the strongest returns. Conversely, an underweight exposure to
BB-rated issues detracted from performance, as generally all segments of the
high yield market continued to post strong returns throughout the period.
On a sector-specific level, the Fund's exposure to the media -- non-cable,
gaming and aerospace/defense sectors was beneficial to performance for the
period. The primary detractors were an underweight exposure to the automotive
and supermarket sectors, as well as an overweight to retailers.
What changes were made to the Fund during the period?
The BlackRock style of investing in companies with good pricing power and strong
fundamentals remained the overall focus of the Fund throughout the period.
Having said that, the Fund did increase allocations to certain lower-quality
credit tiers, moving to overweight positions in B-rated and CCC-rated credits in
an effort to take advantage of the strong high yield markets in which
lower-tiered credits provided the strongest returns.
The Fund's average leverage position was approximately 30% throughout the
period. That is, the Fund borrowed the equivalent of roughly 30% of total assets
invested, earning incremental yield on the investments we made with the borrowed
funds. While leveraging will hinder the Fund's total return in a weak market,
the converse also is true. (For a more complete discussion of the benefits and
risks of leveraging, see page 2 of this report to shareholders.)
4 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007
How would you characterize the Fund's position at the close of the period?
While volatility picked up at the end of the period, resulting in an investor
flight to quality, fundamental and technical valuations remained favorable for
the high yield market. Even with the noise at the end of the reporting period,
the high yield market posted a return of better than 1% in February, marking the
seventh month out of eight in which the Credit Suisse High Yield Index posted
monthly returns in excess of 1%. Market fundamentals remain very strong, with
default rates below 1% and a new-issue calendar that is just beginning to
satisfy the high yield investor. As a result, we remain positioned with an
overweight to lower-tiered credits (B and CCC), as we expect those segments of
the market to post the strongest returns.
Scott Amero
Portfolio Manager
Jeffrey Gary
Portfolio Manager
James E. Keenan, CFA
Portfolio Manager
April 10, 2007
--------------------------------------------------------------------------------
We are pleased to announce that James E. Keenan, CFA, joined the Fund's
portfolio management team and, together with Mr. Amero and Mr. Gary, is jointly
responsible for the day-to-day management of the Fund's portfolio and the
selection of its investments. Mr. Keenan is a Director with BlackRock, Inc. and
a member of the firm's Fixed Income Portfolio Management Group. Prior to joining
BlackRock in 2004, he was a senior high yield trader at Columbia Management
Group. Mr. Keenan began his investment career at UBS Global Asset Management,
where he held roles as a trader, research analyst and portfolio analyst from
June 1998 through July 2003.
--------------------------------------------------------------------------------
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 5
Portfolio Information
As of February 28, 2007
--------------------------------------------------------------------------------
Percent of
Ten Largest Holdings Total Investments
--------------------------------------------------------------------------------
L-3 Communications Corp.* ........................................... 1.3%
SunGard Data Systems, Inc.* ......................................... 1.2
Freescale Semiconductor, Inc.* ...................................... 1.2
Millennium America, Inc. ............................................ 1.0
AutoNation, Inc.* ................................................... 1.0
Reliant Energy, Inc. ................................................ 0.9
Michaels Stores, Inc.* .............................................. 0.9
Ventas Realty, LP ................................................... 0.9
Station Casinos, Inc.* .............................................. 0.9
Brazilian Government International Bond ............................. 0.9
--------------------------------------------------------------------------------
* Includes combined holdings.
--------------------------------------------------------------------------------
Percent of
Five Largest Industries Total Investments
--------------------------------------------------------------------------------
Cable -- U.S. ....................................................... 6.9%
Gaming .............................................................. 6.2
Diversified Media ................................................... 6.1
Utility ............................................................. 6.1
Paper ............................................................... 5.8
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
Percent of
Five Largest Foreign Countries* Total Investments
--------------------------------------------------------------------------------
Canada .............................................................. 6.5%
Bermuda ............................................................. 1.4
Netherlands ......................................................... 1.4
Ireland ............................................................. 1.6
Brazil .............................................................. 0.9
--------------------------------------------------------------------------------
* All holdings are denominated in U.S. dollars
--------------------------------------------------------------------------------
Quality Ratings by Percent of
S&P/Moody's Total Investments
--------------------------------------------------------------------------------
BBB/Baa ............................................................. 0.6%
BB/Ba ............................................................... 24.9
B/B ................................................................. 55.1
CCC/Caa ............................................................. 11.1
NR (Not Rated) ...................................................... 1.6
Other* .............................................................. 6.7
--------------------------------------------------------------------------------
* Includes investments in common stocks, preferred stocks, warrants, other
interests and short-term securities.
6 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007
Schedule of Investments as of February 28, 2007 (Unaudited) (in U.S. dollars)
Face
Amount Corporate Bonds Value
====================================================================================
Aerospace & Defense -- 4.8%
$3,089,000 Alliant Techsystems, Inc., 2.75%
due 9/15/2011 (a)(h) $ 3,324,536
1,230,000 Argo-Tech Corp., 9.25% due 6/01/2011 1,334,550
900,000 Bombardier, Inc., 8% due 11/15/2014 (a) 940,500
2,325,000 DRS Technologies, Inc., 6.875% due 11/01/2013 2,330,812
1,600,000 Esterline Technologies Corp., 7.75%
due 6/15/2013 1,632,000
L-3 Communications Corp.:
2,200,000 7.625% due 6/15/2012 2,282,500
2,550,000 5.875% due 1/15/2015 2,486,250
2,200,000 6.375% due 10/15/2015 2,189,000
2,220,000 3% due 8/01/2035 (a)(h) 2,369,850
2,195,000 Standard Aero Holdings, Inc., 8.25%
due 9/01/2014 2,233,413
750,000 TransDigm, Inc., 7.75% due 7/15/2014 (a) 770,625
3,200,000 Vought Aircraft Industries, Inc., 8%
due 7/15/2011 3,120,000
-----------
25,014,036
====================================================================================
Airlines -- 0.7%
Continental Airlines, Inc.:
2,856,492 Series 1997-4-B, 6.90% due 7/02/2018 2,856,491
39,269 Series 1998-1-C, 6.541% due 9/15/2009 39,072
661,594 Series 2001-1 Class C, 7.033%
due 12/15/2012 662,420
-----------
3,557,983
====================================================================================
Automotive -- 3.5%
960,000 Accuride Corp., 8.50% due 2/01/2015 972,000
AutoNation, Inc.:
4,575,000 7.36% due 4/15/2013 (c) 4,643,625
2,400,000 7% due 4/15/2014 2,433,000
500,000 Ford Capital BV, 9.50% due 6/01/2010 503,750
1,100,000 Ford Motor Company, 8.90% due 1/15/2032 979,000
1,130,000 Ford Motor Credit Co., 8.11% due 1/13/2012 (c) 1,136,097
950,000 General Motors Acceptance Corp., 7.25%
due 3/02/2011 972,653
The Goodyear Tire & Rubber Co.:
110,000 7.857% due 8/15/2011 113,437
1,460,000 8.625% due 12/01/2011 (a) 1,551,250
745,000 Keystone Automotive Operations, Inc., 9.75%
due 11/01/2013 741,275
2,540,000 Lear Corp., 8.75% due 12/01/2016 2,447,925
1,930,000 United Auto Group, Inc., 7.75%
due 12/15/2016 (a) 1,963,775
-----------
18,457,787
====================================================================================
Broadcasting -- 4.4%
2,800,000 Allbritton Communications Co., 7.75%
due 12/15/2012 2,870,000
1,850,000 Barrington Broadcasting Group LLC, 10.50%
due 8/15/2014 (a) 1,937,875
3,175,000 CMP Susquehanna Corp., 9.875%
due 5/15/2014 (a) 3,262,312
630,000 Nexstar Finance, Inc., 7% due 1/15/2014 607,950
4,750,000 Paxson Communications Corp., 8.61%
due 1/15/2012 (a)(c) 4,833,125
4,075,000 Salem Communications Corp., 7.75%
due 12/15/2010 4,146,313
2,550,000 Sinclair Broadcast Group, Inc., 8% due 3/15/2012 2,626,500
875,000 Sirius Satellite Radio, Inc., 9.625% due 8/01/2013 883,750
1,915,000 Young Broadcasting, Inc., 10% due 3/01/2011 1,900,638
-----------
23,068,463
====================================================================================
Cable -- U.S. -- 8.0%
1,270,000 CCH I Holdings LLC,11% due 10/01/2015 1,317,625
3,075,000 CCH I LLC, 11% due 10/01/2015 3,198,000
3,750,000 CSC Holdings, Inc. Series B, 7.625%
due 4/01/2011 3,853,125
775,000 Cablevision Systems Corp. Series B, 8%
due 4/15/2012 786,625
5,470,000 Charter Communications Holdings II LLC, 10.25%
due 9/15/2010 5,757,175
3,090,000 Echostar DBS Corp., 7.125% due 2/01/2016 3,194,287
Intelsat Bermuda Ltd. (a)(c):
355,000 11.354% due 6/15/2013 380,737
1,840,000 8.872% due 1/15/2015 1,883,700
3,475,000 Intelsat Subsidiary Holding Co. Ltd., 8.625%
due 1/15/2015 3,735,625
979,000 Loral Spacecom Corp., 14% due 11/15/2015 (f) 1,125,850
3,900,000 Mediacom LLC, 9.50% due 1/15/2013 4,007,250
PanAmSat Corp.:
3,459,000 9% due 8/15/2014 3,735,720
1,770,000 9% due 6/15/2016 (a) 1,942,575
3,150,000 Quebecor Media, Inc., 7.75% due 3/15/2016 3,228,750
3,100,000 Rainbow National Services LLC, 10.375%
due 9/01/2014 (a) 3,472,000
-----------
41,619,044
====================================================================================
Chemicals -- 6.3%
1,400,000 American Pacific Corp., 9% due 2/01/2015 (a) 1,412,250
2,459,000 BCP Crystal Holdings Corp., 9.625%
due 6/15/2014 2,732,563
1,250,000 Innophos, Inc., 8.875% due 8/15/2014 1,296,875
720,000 Key Plastics LLC and Key Plastics Finance Corp.,
11.75% due 3/15/2013 (a) 725,400
1,260,000 Lyondell Chemical Co., 8.25% due 9/15/2016 1,354,500
6,865,000 Millennium America, Inc., 9.25% due 6/15/2008 7,139,600
Momentive Performance Materials, Inc. (a):
3,700,000 10.125% due 12/01/2014 (f) 3,894,250
1,415,000 11.50% due 12/01/2016 1,471,600
Nalco Co.:
1,900,000 7.75% due 11/15/2011 1,961,750
1,900,000 8.875% due 11/15/2013 2,023,500
1,168,000 Nalco Finance Holdings, Inc., 10.078%
due 2/01/2014 (k) 1,004,480
3,275,000 Nova Chemicals Corp., 8.502%
due 11/15/2013 (c) 3,275,000
3,750,000 Omnova Solutions, Inc., 11.25% due 6/01/2010 4,007,813
875,000 Terra Capital, Inc., 7% due 2/01/2017 (a) 870,625
-----------
33,170,206
====================================================================================
Consumer -- Durables -- 0.9%
2,125,000 Sealy Mattress Co., 8.25% due 6/15/2014 2,241,875
2,200,000 Simmons Bedding Co., 7.875% due 1/15/2014 2,255,000
-----------
4,496,875
====================================================================================
Consumer -- Non-Durables -- 4.8%
5,400,000 American Greetings Corp., 7.375%
due 6/01/2016 5,582,250
2,175,000 Chattem, Inc., 7% due 3/01/2014 2,175,000
3,800,000 Church & Dwight Co., Inc., 6% due 12/15/2012 3,714,500
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 7
Schedule of Investments (continued) (in U.S. dollars)
Face
Amount Corporate Bonds Value
====================================================================================
Consumer -- Non-Durables (concluded)
$5,725,000 Hines Nurseries, Inc., 10.25% due 10/01/2011 $ 4,809,000
Levi Strauss & Co.:
2,525,000 10.258% due 4/01/2012 (c) 2,578,656
3,200,000 8.875% due 4/01/2016 3,448,000
3,150,000 Quiksilver, Inc., 6.875% due 4/15/2015 3,071,250
-----------
25,378,656
====================================================================================
Diversified Media -- 8.4%
1,689,000 Affinion Group, Inc., 11.50% due 10/15/2015 1,832,565
375,000 American Media Operations, Inc. Series B,
10.25% due 5/01/2009 358,125
540,000 CBD Media Holdings LLC, 9.25% due 7/15/2012 564,300
4,125,000 CBD Media, Inc., 8.625% due 6/01/2011 4,269,375
2,525,000 Cadmus Communications Corp., 8.375%
due 6/15/2014 2,556,562
610,000 CanWest Media, Inc., 8% due 9/15/2012 628,300
2,256,000 Dex Media West LLC, 9.875% due 8/15/2013 2,456,220
3,190,000 Idearc Inc., 8% due 11/15/2016 (a) 3,277,725
3,173,000 Liberty Media Corp., 0.75% due 3/30/2023 (h) 3,807,600
440,000 Network Communications, Inc., 10.75%
due 12/01/2013 454,300
Nielsen Finance LLC (a):
4,775,000 10% due 8/01/2014 5,216,688
1,680,000 9.919% due 8/01/2016 (k) 1,178,100
5,225,000 Primedia, Inc., 8% due 5/15/2013 5,368,688
4,520,000 Quebecor World, Inc., 9.75% due 1/15/2015 (a) 4,779,900
RH Donnelley Corp.:
2,275,000 Series A-2, 6.875% due 1/15/2013 2,218,125
2,040,000 Series A-3, 8.875% due 1/15/2016 2,177,700
2,850,000 Universal City Florida Holding Co. I, 10.11%
due 5/01/2010 (c) 2,949,750
-----------
44,094,023
====================================================================================
Energy -- Exploration & Production -- 3.7%
800,000 Berry Petroleum Co., 8.25% due 11/01/2016 798,000
2,500,000 Chaparral Energy, Inc., 8.50% due 12/01/2015 2,493,750
2,715,000 Compton Petroleum Finance Corp., 7.625%
due 12/01/2013 2,660,700
3,150,000 Encore Acquisition Co., 6.25% due 4/15/2014 2,905,875
4,450,000 Exco Resources, Inc., 7.25% due 1/15/2011 4,505,625
2,390,000 OPTI Canada, Inc., 8.25% due 12/15/2014 (a) 2,473,650
1,220,000 Sabine Pass LNG LP, 7.50% due 11/30/2016 (a) 1,220,000
2,220,000 Stone Energy Corp., 8.11% due 7/15/2010 (a)(c) 2,222,775
-----------
19,280,375
====================================================================================
Energy -- Other -- 2.3%
1,750,000 Copano Energy LLC, 8.125% due 3/01/2016 1,811,250
1,490,000 Ferrellgas Partners LP, 8.75% due 6/15/2012 1,549,600
600,000 KCS Energy, Inc., 7.125% due 4/01/2012 585,000
1,140,000 North American Energy Partners, Inc., 8.75%
due 12/01/2011 1,162,800
3,200,000 Ocean RIG ASA, 9.36% due 4/04/2011 (c) 3,200,000
3,930,000 SemGroup LP, 8.75% due 11/15/2015 (a) 3,988,950
-----------
12,297,600
====================================================================================
Financial -- 0.4%
1,900,000 American Real Estate Partners LP, 7.125%
due 2/15/2013 (a) 1,871,500
460,000 NCO Group, Inc., 10.23% due 11/15/2013 (a)(c) 462,300
-----------
2,333,800
====================================================================================
Food & Tobacco -- 4.2%
1,300,000 AmeriQual Group LLC, 9.50% due 4/01/2012 (a) 1,355,250
Constellation Brands Inc.:
3,800,000 8.125% due 1/15/2012 3,952,000
1,950,000 7.25% due 9/01/2016 2,023,125
4,800,000 Cott Beverages USA, Inc., 8% due 12/15/2011 4,914,000
4,791,000 Del Monte Corp., 8.625% due 12/15/2012 5,030,550
320,000 Landry's Restaurants, Inc. Series B, 7.50%
due 12/15/2014 318,400
3,150,000 National Beef Packing Co. LLC, 10.50%
due 8/01/2011 3,299,625
815,000 Swift & Co., 12.50% due 1/01/2010 853,713
-----------
21,746,663
====================================================================================
Gaming -- 8.5%
5,175,000 Boyd Gaming Corp., 8.75% due 4/15/2012 5,394,937
Caesars Entertainment, Inc.:
2,200,000 7.875% due 3/15/2010 2,321,000
155,000 8.125% due 5/15/2011 164,106
Galaxy Entertainment Finance Co. Ltd. (a):
450,000 10.42% due 12/15/2010 (c) 477,000
875,000 9.875% due 12/15/2012 954,843
950,000 Greektown Holdings, 10.75% due 12/01/2013 (a) 1,016,500
800,000 Harrah's Operating Co., Inc., 5.75%
due 10/01/2017 668,000
2,575,000 Inn of the Mountain Gods Resort & Casino, 12%
due 11/15/2010 2,806,750
1,895,000 Little Traverse Bay Bands of Odawa Indians,
10.25% due 2/15/2014 (a) 1,951,850
MGM Mirage:
1,825,000 9.75% due 6/01/2007 1,840,969
625,000 6.75% due 4/01/2013 617,188
1,575,000 Mirage Resorts, Inc., 6.75% due 2/01/2008 1,584,844
3,150,000 Penn National Gaming, Inc., 6.875%
due 12/01/2011 3,150,000
3,950,000 Poster Financial Group, Inc., 8.75%
due 12/01/2011 4,108,000
1,800,000 Resorts International Hotel and Casino, Inc.,
11.50% due 3/15/2009 1,881,000
1,575,000 San Pasqual Casino, 8% due 9/15/2013 (a) 1,618,313
Station Casinos, Inc.:
1,900,000 6.50% due 2/01/2014 1,762,250
2,575,000 7.75% due 8/15/2016 2,645,813
2,225,000 6.625% due 3/15/2018 2,016,406
3,520,000 Tropicana Entertainment, 9.625%
due 12/15/2014 (a) 3,542,000
975,000 Turning Stone Resort Casino Enterprise, 9.125%
due 9/15/2014 (a) 1,014,000
2,825,000 Wynn Las Vegas LLC, 6.625% due 12/01/2014 2,796,750
-----------
44,332,519
====================================================================================
Health Care -- 6.7%
300,000 Accellent, Inc., 10.50% due 12/01/2013 312,000
1,800,000 Angiotech Pharmaceuticals, Inc., 9.11%
due 12/01/2013 (a)(c) 1,858,500
900,000 The Cooper Cos., Inc., 7.125% due 2/15/2015 (a) 909,000
3,175,000 Elan Finance Plc, 9.36% due 11/15/2011 (c) 3,230,562
4,750,000 HealthSouth Corp., 11.354% due 6/15/2014 (a)(c) 5,272,500
1,150,000 Omnicare, Inc., 6.75% due 12/15/2013 1,138,500
1,050,000 Select Medical Corp., 7.625% due 2/01/2015 924,000
3,565,000 Tenet Healthcare Corp., 9.875% due 7/01/2014 3,627,388
1,310,000 Triad Hospitals, Inc., 7% due 5/15/2012 1,352,575
4,775,000 US Oncology, Inc., 9% due 8/15/2012 5,049,563
1,575,000 VWR International, Inc., 8% due 4/15/2014 1,598,625
8 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007
Schedule of Investments (continued) (in U.S. dollars)
Face
Amount Corporate Bonds Value
====================================================================================
Health Care (concluded)
$3,175,000 Vanguard Health Holding Co. II, LLC, 9%
due 10/01/2014 $ 3,262,313
6,325,000 Ventas Realty, LP, 6.75% due 6/01/2010 6,459,406
-----------
34,994,932
====================================================================================
Housing -- 2.8%
4,750,000 Forest City Enterprises, Inc., 7.625%
due 6/01/2015 4,868,750
Goodman Global Holding Co., Inc.:
1,147,000 8.329% due 6/15/2012 (c) 1,161,337
2,225,000 7.875% due 12/15/2012 2,269,500
470,000 Nortek, Inc., 8.50% due 9/01/2014 478,225
1,925,000 Ply Gem Industries, Inc., 9% due 2/15/2012 1,742,125
2,550,000 Standard-Pacific Corp., 9.25% due 4/15/2012 2,626,500
1,600,000 Texas Industries, Inc., 7.25% due 7/15/2013 1,632,000
-----------
14,778,437
====================================================================================
Information Technology -- 6.4%
450,000 Amkor Technologies, Inc., 7.75% due 5/15/2013 436,500
560,000 Amkor Technology, Inc., 9.25% due 6/01/2016 571,200
950,000 BMS Holdings, Inc., 12.40%
due 2/15/2012 (a)(c)(f) 940,500
335,000 Compagnie Generale de Geophysique SA, 7.50%
due 5/15/2015 341,700
510,000 Compagnie Generale de Geophysique-Veritas,
7.75% due 5/15/2017 527,850
Freescale Semiconductor, Inc. (a):
7,930,000 9.125% due 12/15/2014 (f) 8,039,037
790,000 9.23% due 12/15/2014 (c) 797,900
3,045,000 Nortel Networks Ltd., 9.61%
due 7/15/2011 (a)(c) 3,258,150
185,000 Open Solutions, Inc., 9.75% due 2/01/2015 (a) 191,013
1,805,000 Sanmina-SCI Corp., 8.125% due 3/01/2016 1,723,775
SunGard Data Systems, Inc.:
3,450,000 9.125% due 8/15/2013 3,682,875
3,050,000 9.973% due 8/15/2013 (c) 3,187,250
1,835,000 10.25% due 8/15/2015 (a) 1,995,563
405,000 Telcordia Technologies, Inc., 10%
due 3/15/2013 (a) 378,675
2,205,966 UGS Capital Corp. II, 10.348%
due 6/01/2011 (a)(f) 2,244,570
2,225,000 UGS Corp., 10% due 6/01/2012 2,436,375
2,465,000 Viasystems, Inc., 10.50% due 1/15/2011 2,501,975
-----------
33,254,908
====================================================================================
Leisure -- 1.7%
2,425,000 FelCor Lodging LP, 8.50% due 6/01/2011 2,603,843
3,180,000 Great Canadian Gaming Corp., 7.25%
due 2/15/2015 (a) 3,227,700
2,350,000 Host Marriott LP, 6.75% due 6/01/2016 2,361,750
Travelport, Inc. (a):
250,000 9.875% due 9/01/2014 266,875
530,000 9.985% due 9/01/2014 (c) 547,225
-----------
9,007,393
====================================================================================
Manufacturing -- 3.5%
2,050,000 AGY Holding Corp., 11% due 11/15/2014 (a) 2,121,750
3,500,000 CPI Holdco, Inc., 11.151% due 2/01/2015 (a)(c) 3,613,750
2,670,000 Jarden Corp., 7.50% due 5/01/2017 2,706,712
3,720,000 NXP B.V., 9.50% due 10/15/2015 (a) 3,840,900
RBS Global, Inc. (a):
740,000 9.50% due 8/01/2014 780,700
950,000 11.75% due 8/01/2016 1,040,250
885,000 8.875% due 9/01/2016 902,700
3,435,000 Trimas Corp., 9.875% due 6/15/2012 3,417,825
-----------
18,424,587
====================================================================================
Metal -- Other -- 2.3%
1,020,000 FMG Finance Pty Ltd., 10.625% due 9/01/2016 (a) 1,160,250
3,250,000 Foundation PA Coal Co., 7.25% due 8/01/2014 3,290,625
3,775,000 Indalex Holding Corp., 11.50% due 2/01/2014 (a) 4,039,250
3,175,000 Novelis, Inc., 7.25% due 2/15/2015 3,302,000
-----------
11,792,125
====================================================================================
Packaging -- 3.6%
Berry Plastics Holding Corp:
1,235,000 8.875% due 9/15/2014 1,278,225
3,015,000 9.23% due 9/15/2014 (c) 3,112,987
3,475,000 Graham Packing Co., Inc., 9.875%
due 10/15/2014 3,579,250
670,000 Impress Holdings B.V., 8.585%
due 9/15/2013 (a)(c) 686,750
Owens-Brockway:
4,175,000 8.875% due 2/15/2009 4,268,938
1,575,000 8.25% due 5/15/2013 1,649,813
2,165,000 Packaging Dynamics Finance Corp., 10%
due 5/01/2016 (a) 2,273,250
1,600,000 Pregis Corp., 12.375% due 10/15/2013 (a) 1,776,000
-----------
18,625,213
====================================================================================
Paper -- 8.0%
Abitibi-Consolidated, Inc.:
3,200,000 8.855% due 6/15/2011 (c) 3,216,000
1,145,000 6% due 6/20/2013 1,007,600
1,575,000 Ainsworth Lumber Co. Ltd., 9.11%
due 10/01/2010 (c) 1,330,875
3,175,000 Boise Cascade LLC, 8.235% due 10/15/2012 (c) 3,175,000
570,000 Bowater Canada Finance, 7.95% due 11/15/2011 572,850
4,475,000 Bowater, Inc., 8.355% due 3/15/2010 (c) 4,519,750
5,075,000 Domtar, Inc., 7.125% due 8/15/2015 5,094,031
Graphic Packaging International Corp.:
1,675,000 8.50% due 8/15/2011 1,742,000
1,000,000 9.50% due 8/15/2013 1,066,250
NewPage Corp.:
2,400,000 11.739% due 5/01/2012 (c) 2,616,000
1,600,000 12% due 5/01/2013 1,744,000
5,400,000 Norske Skog Canada Ltd. Series D, 8.625%
due 6/15/2011 5,508,000
3,175,000 Rock-Tenn Co., 8.20% due 8/15/2011 3,373,438
4,150,000 Smurfit Kappa Funding Plc, 9.625%
due 10/01/2012 4,404,188
540,000 Smurfit-Stone Container Enterprises, Inc., 9.75%
due 2/01/2011 558,225
Verso Paper Holdings LLC (a):
1,525,000 9.125% due 8/01/2014 1,608,875
310,000 11.375% due 8/01/2016 333,250
-----------
41,870,332
====================================================================================
Retail -- 3.0%
490,000 Beverages & More, Inc., 9.25% due 3/01/2012 (a) 501,025
545,000 Buffets, Inc., 12.50% due 11/01/2014 572,250
540,000 Burlington Coat Factory Warehouse Corp.,
11.125% due 4/15/2014 555,525
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 9
Schedule of Investments (continued) (in U.S. dollars)
Face
Amount Corporate Bonds Value
====================================================================================
Retail (concluded)
Michaels Stores, Inc. (a):
$2,650,000 10% due 11/01/2014 $ 2,835,500
3,350,000 11.375% due 11/01/2016 3,634,750
Neiman Marcus Group, Inc.:
1,875,000 9% due 10/15/2015 (f) 2,062,500
1,575,000 10.375% due 10/15/2015 1,764,000
3,980,000 Rite Aid Corp., 7.50% due 3/01/2017 3,950,150
------------
15,875,700
====================================================================================
Service -- 7.0%
3,175,000 Ashtead Capital, Inc., 9% due 8/15/2016 (a) 3,429,000
Avis Budget Car Rental LLC (a):
950,000 7.625% due 5/15/2014 964,250
4,450,000 7.905% due 5/15/2014 (c) 4,583,500
4,775,000 Corrections Corp. of America, 7.50%
due 5/01/2011 4,918,250
1,000,000 DI Finance Series B, 9.50% due 2/15/2013 1,070,000
2,825,000 Dycom Industries, Inc., 8.125% due 10/15/2015 2,909,750
2,350,000 Mac-Gray Corp., 7.625% due 8/15/2015 2,414,625
2,840,000 Sally Holdings LLC, 10.50% due 11/15/2016 (a) 2,939,400
220,000 Seitel Acquisition Corp., 9.75% due 2/15/2014 (a) 223,300
4,775,000 Service Corp. International, 7% due 6/15/2017 4,822,750
2,000,000 United Rentals North America, Inc., 7.75%
due 11/15/2013 2,045,000
4,775,000 Waste Services, Inc., 9.50% due 4/15/2014 5,049,563
Yankee Acquisition Corp. (a):
200,000 8.50% due 2/15/2015 204,500
865,000 9.75% due 2/15/2017 886,625
------------
36,460,513
====================================================================================
Steel -- 0.8%
3,175,000 Chaparral Steel Co., 10% due 7/15/2013 3,548,062
507,000 UCAR Finance, Inc., 10.25% due 2/15/2012 533,618
------------
4,081,680
====================================================================================
Telecommunications -- 4.7%
ADC Telecommunications, Inc. (h):
2,226,000 1% due 6/15/2008 2,111,918
1,025,000 5.795% due 6/15/2013 (c) 987,844
3,175,000 Inmarsat Finance Plc, 7.625% due 6/30/2012 3,294,062
4,900,000 LCI International, Inc., 7.25% due 6/15/2007 4,912,250
3,800,000 Nordic Telephone Co. Holdings ApS, 8.875%
due 5/01/2016 (a) 4,094,500
650,000 Qwest Communications International, Inc., 7.50%
due 2/15/2014 673,563
Qwest Corp.:
2,300,000 8.579% due 6/15/2013 (c) 2,509,875
875,000 7.625% due 6/15/2015 934,063
4,800,000 Windstream Corp., 8.125% due 8/01/2013 5,178,000
------------
24,696,075
====================================================================================
Transportation -- 1.5%
590,000 Britannia Bulk Plc, 11% due 12/01/2011 (a) 574,512
2,400,000 Navios Maritime Holdings, Inc., 9.50%
due 12/15/2014 (a) 2,466,000
2,225,000 OMI Corp., 7.625% due 12/01/2013 2,247,250
2,250,000 Teekay Shipping Corp., 8.875% due 7/15/2011 2,424,375
------------
7,712,137
====================================================================================
Utility -- 8.4%
The AES Corp.:
4,000,000 9.375% due 9/15/2010 4,340,000
100,000 8.75% due 5/15/2013 (a) 106,750
2,124,000 CenterPoint Energy, Inc. Series B, 3.75%
due 5/15/2023 (h) 3,347,955
860,000 Conexant Systems, Inc., 9.11%
due 11/15/2010 (a)(c) 885,800
3,975,000 ESI Tractebel Acquisition Corp. Series B, 7.99%
due 12/30/2011 4,110,249
2,975,000 Edison Mission Energy, 7.50% due 6/15/2013 3,108,875
2,825,000 El Paso Performance-Linked Trust, 7.75%
due 7/15/2011 (a) 3,001,562
4,125,000 Mirant North America LLC, 7.375%
due 12/31/2013 4,238,438
NRG Energy, Inc.:
2,550,000 7.25% due 2/01/2014 2,601,000
2,350,000 7.375% due 2/01/2016 2,397,000
Nevada Power Co.:
622,000 9% due 8/15/2013 672,686
2,400,000 Series A, 8.25% due 6/01/2011 2,655,374
6,050,000 Reliant Energy, Inc., 9.50% due 7/15/2013 6,556,688
775,000 Sierra Pacific Resources, 8.625% due 3/15/2014 839,278
1,650,000 Southern Natural Gas Co., 8.875%
due 3/15/2010 1,723,227
3,267,993 Tenaska Alabama Partners LP, 7%
due 6/30/2021 (a) 3,309,559
------------
43,894,441
====================================================================================
Wireless Communications -- 5.2%
2,675,000 Centennial Cellular Operating Co. LLC, 10.125%
due 6/15/2013 2,892,343
2,145,000 Cricket Communications, Inc., 9.375%
due 11/01/2014 (a) 2,262,975
Digicel Group Ltd. (a):
1,340,000 8.875% due 1/15/2015 1,308,175
3,060,000 9.125% due 1/15/2015 (f) 2,979,675
1,900,000 Dobson Communications Corp., 9.61%
due 10/15/2012 (c) 1,961,750
4,210,000 MetroPCS Wireless, Inc., 9.25%
due 11/01/2014 (a) 4,420,500
320,000 Orascom Telecom Finance SCA, 7.875%
due 2/08/2014 318,400
Rogers Wireless Communications, Inc.:
1,875,000 8.454% due 12/15/2010 (c) 1,912,500
250,000 8% due 12/15/2012 266,563
4,075,000 Rural Cellular Corp. 8.25% due 3/15/2012 4,227,813
4,470,000 West Corp., 11% due 10/15/2016 (a) 4,838,775
------------
27,389,469
------------------------------------------------------------------------------------
Total Corporate Bonds
(Cost -- $644,627,159) -- 126.5% 661,705,972
====================================================================================
====================================================================================
Floating Rate Loan Interests (j)
====================================================================================
Chemicals -- 0.8%
4,870,000 Wellman, Inc. Second Lien Term Loan, 12.11%
due 2/10/2010 4,197,940
------------------------------------------------------------------------------------
Total Floating Rate Loan Interest
(Cost -- $4,807,004) -- 0.8% 4,197,940
====================================================================================
10 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007
Schedule of Investments (continued) (in U.S. dollars)
Face
Amount Foreign Government Obligations Value
====================================================================================
Government -- Foreign -- 1.2%
$4,800,000 Brazilian Government International Bond, 11%
due 8/17/2040 $ 6,415,200
------------------------------------------------------------------------------------
Total Foreign Government Obligations
(Cost -- $6,072,731) -- 1.2% 6,415,200
====================================================================================
====================================================================================
Shares
Held Common Stocks
====================================================================================
Cable -- U.S. -- 1.2%
134,207 Loral Space & Communications Ltd. (g) 6,247,336
====================================================================================
Information Technology -- 0.6%
154,040 Cypress Semiconductor Corp. (g) 2,926,764
====================================================================================
Manufacturing -- 0.4%
116,910 Medis Technologies Ltd. (g) 2,008,514
====================================================================================
Paper -- 0.0%
78,039 Western Forest Products, Inc. (g) 140,785
------------------------------------------------------------------------------------
Total Common Stocks
(Cost -- $9,795,921) -- 2.2% 11,323,399
====================================================================================
====================================================================================
Preferred Securities
------------------------------------------------------------------------------------
Preferred Stocks
====================================================================================
Cable -- U.S. -- 0.4%
10,355 Loral Spacecom Corp. Series A, 12% (f) 2,091,710
------------------------------------------------------------------------------------
Total Preferred Securities
(Cost -- $2,047,118) -- 0.4% 2,091,710
Shares
Held Warrants (d) Value
====================================================================================
Health Care -- 0.0%
54,577 HealthSouth Corp. (expires 1/16/2014) $ 43,662
------------------------------------------------------------------------------------
Total Warrants
(Cost -- $0) -- 0.0% 43,662
====================================================================================
====================================================================================
Beneficial
Interest Other Interests (b)
====================================================================================
Cable -- U.S. -- 0.0%
$1,300,000 Adelphia C.V.U. Series ACC-4 5,200
------------------------------------------------------------------------------------
Total Other Interests
(Cost -- $5,200) -- 0.0% 5,200
====================================================================================
====================================================================================
Short-Term Securities
====================================================================================
34,841,697 BlackRock Liquidity Series, LLC Cash Sweep
Series, 5.33% (e)(i) 34,841,697
------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $34,841,697) -- 6.6% 34,841,697
====================================================================================
Total Investments
(Cost -- $702,196,830*) -- 137.7% 720,624,780
Liabilities in Excess of Other Assets -- (37.7%) (197,359,925)
-------------
Net Assets -- 100.0% $ 523,264,855
=============
* The cost and unrealized appreciation (depreciation) of investments as of
February 28, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost........................................... $702,931,685
============
Gross unrealized appreciation............................ $ 23,376,308
Gross unrealized depreciation............................ (5,683,213)
------------
Net unrealized appreciation.............................. $ 17,693,095
============
(a) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(b) Other interests represent beneficial interest in liquidation trusts and
other reorganization entities and are non-income producing.
(c) Floating rate security.
(d) 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.
(e) Represents the current yield as of February 28, 2007.
(f) Represents a pay-in-kind security which may pay interest/dividends in
additional face/shares.
(g) Non-income producing security.
(h) Convertible security.
(i) 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 $34,774,256 $579,262
--------------------------------------------------------------------------
(j) 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
LIBOR (London InterBank Offered Rate), (ii) the prime rate offered by one
or more major U.S. banks or (iii) the certificate of deposit rate.
(k) Represents a step bond; the interest rate shown reflects the effective
yield at the time of purchase.
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.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 11
Schedule of Investments (concluded) (in U.S. dollars)
o Swaps outstanding as of February 28, 2007 were as follows:
--------------------------------------------------------------------------------
Unrealized
Notional Appreciation
Amount (Depreciation)
--------------------------------------------------------------------------------
Sold credit default protection on General Motors
Acceptance Corp. and receive 3.50%
Broker, JPMorgan Chase
Expires March 2007 $1,250,000 $ 2,244
Sold credit default protection on General
Motors Acceptance Corp. and receive 4.50%
Broker, Morgan Stanley Capital Services, Inc.
Expires March 2007 $1,250,000 2,963
Sold credit default protection on General
Motors Corp. and receive 4.40%
Broker, Morgan Stanley Capital Services, Inc.
Expires June 2007 $ 625,000 7,009
Sold credit default protection on General
Motors Corp. and receive 8.00%
Broker, Morgan Stanley Capital Services, Inc.
Expires June 2007 $ 625,000 13,945
Sold credit default protection on Ford Motor
Company and receive 3.80%
Broker, JPMorgan Chase Bank
Expires March 2010 $5,000,000 (20,660)
Sold credit default protection on Ford Motor
Company and receive 3.80%
Broker, UBS Warburg
Expires March 2010 $1,590,000 (6,570)
Sold credit default protection on Primedia, Inc.
and receive 2.45%
Broker, Lehman Brothers, Inc. (Special Finance)
Expires March 2012 $1,500,000 8,089
--------------------------------------------------------------------------------
Total $ 7,020
=========
See Notes to Financial Statements.
12 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007
Statement of Assets, Liabilities and Capital
As of February 28, 2007 (Unaudited)
=================================================================================================================================
Assets
---------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value (identified cost -- $667,355,133) ....... $ 685,783,083
Investments in affiliated securities, at value (identified cost -- $34,841,697) .......... 34,841,697
Cash ..................................................................................... 100,000
Unrealized appreciation on swaps ......................................................... 34,250
Receivables:
Interest .............................................................................. $ 12,506,030
Securities sold ....................................................................... 9,916,061
Paydowns .............................................................................. 8,353,725
Swaps ................................................................................. 34,770 30,810,586
------------
Prepaid expenses ......................................................................... 3,767
-------------
Total assets ............................................................................. 751,573,383
-------------
=================================================================================================================================
Liabilities
---------------------------------------------------------------------------------------------------------------------------------
Loans .................................................................................... 216,900,000
Unrealized depreciation on swaps ......................................................... 27,230
Payables:
Securities purchased .................................................................. 10,550,407
Investment adviser .................................................................... 397,439
Dividends to shareholders ............................................................. 177,691
Interest on loans ..................................................................... 133,422
Other affiliates ...................................................................... 3,985 11,262,944
------------
Accrued expenses ......................................................................... 118,354
-------------
Total liabilities ........................................................................ 228,308,528
-------------
=================================================================================================================================
Net Assets
---------------------------------------------------------------------------------------------------------------------------------
Net assets ............................................................................... $ 523,264,855
=============
=================================================================================================================================
Capital
---------------------------------------------------------------------------------------------------------------------------------
Common Stock, $.10 par value, 200,000,000 shares authorized .............................. $ 3,528,644
Paid-in capital in excess of par ......................................................... 501,493,556
Undistributed investment income -- net ................................................... $ 3,889,684
Accumulated realized capital losses -- net ............................................... (4,081,999)
Unrealized appreciation -- net ........................................................... 18,434,970
------------
Total accumulated earnings -- net ........................................................ 18,242,655
-------------
Total capital -- Equivalent to $14.83 per share based on 35,286,436 shares of capital
stock outstanding (market price -- $13.53) ............................................. $ 523,264,855
=============
See Notes to Financial Statements.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 13
Statement of Operations
For the Six Months Ended February 28, 2007 (Unaudited)
=================================================================================================================================
Investment Income
---------------------------------------------------------------------------------------------------------------------------------
Interest (including $579,262 from affiliates) ............................................ $ 28,676,516
Dividends ................................................................................ 119,028
Other .................................................................................... 44,480
-------------
Total income ............................................................................. 28,840,024
-------------
=================================================================================================================================
Expenses
---------------------------------------------------------------------------------------------------------------------------------
Loan interest expense .................................................................... $ 6,047,172
Investment advisory fees ................................................................. 2,522,224
Borrowing costs .......................................................................... 130,087
Accounting services ...................................................................... 79,079
Professional fees ........................................................................ 38,869
Transfer agent fees ...................................................................... 32,582
Printing and shareholder reports ......................................................... 25,504
Custodian fees ........................................................................... 19,591
Pricing services ......................................................................... 16,226
Directors' fees and expenses ............................................................. 11,883
Listing fees ............................................................................. 10,558
Other .................................................................................... 17,589
------------
Total expenses ........................................................................... 8,951,364
-------------
Investment income -- net ................................................................. 19,888,660
-------------
=================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
---------------------------------------------------------------------------------------------------------------------------------
Realized gain on:
Investments -- net .................................................................... 3,463,755
Swaps -- net .......................................................................... 153,925 3,617,680
------------
Change in unrealized appreciation/depreciation on:
Investments -- net .................................................................... 20,791,303
Swaps -- net .......................................................................... (74,032) 20,717,271
------------------------------
Total realized and unrealized gain -- net ................................................ 24,334,951
-------------
Net Increase in Net Assets Resulting from Operations ..................................... $ 44,223,611
=============
See Notes to Financial Statements.
14 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007
Statements of Changes in Net Assets
For the Six
Months Ended For the
February 28, Year Ended
2007 August 31,
Increase (Decrease) in Net Assets: (Unaudited) 2006
================================================================================================================================
Operations
--------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................................. $ 19,888,660 $ 40,958,515
Realized gain (loss) -- net .............................................................. 3,617,680 (6,357,303)
Change in unrealized appreciation/depreciation -- net .................................... 20,717,271 (10,848,892)
-----------------------------
Net increase in net assets resulting from operations ..................................... 44,223,611 23,752,320
-----------------------------
================================================================================================================================
Dividends & Distributions to Shareholders
--------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ................................................................. (19,054,675) (41,283,214)
Realized gain -- net ..................................................................... -- (16,468,850)
-----------------------------
Net decrease in net assets resulting from dividends and distributions to shareholders .... (19,054,675) (57,752,064)
-----------------------------
================================================================================================================================
Capital Stock Transactions
--------------------------------------------------------------------------------------------------------------------------------
Value of shares issued to Common Stock shareholders in reinvestment of dividends
and distributions ...................................................................... -- 64,908
-----------------------------
Net increase in net assets derived from capital stock transactions ....................... -- 64,908
-----------------------------
================================================================================================================================
Net Assets
--------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets .................................................. 25,168,936 (33,934,836)
Beginning of period ...................................................................... 498,095,919 532,030,755
-----------------------------
End of period* ........................................................................... $523,264,855 $498,095,919
=============================
* Undistributed investment income -- net ............................................. $ 3,889,684 $ 3,055,699
=============================
See Notes to Financial Statements.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 15
Statement of Cash Flows
For the Six Months Ended February 28, 2007 (Unaudited)
===============================================================================
Cash Provided by Operating Activities
-------------------------------------------------------------------------------
Net increase in net assets resulting from operations ...... $ 44,223,611
Adjustments to reconcile net increase in
net assets resulting from operations to
net cash provided by operating activities:
Decrease in other receivables ......................... 1,054,177
Decrease in other liabilities ......................... (20,124)
Realized and unrealized gain -- net ................... (24,334,951)
Realized gain on swaps -- net ......................... 119,155
Amortization of premium and discount .................. 170,674
Proceeds from sales and paydowns of long-term securities .. 205,768,569
Other investment related transactions ..................... (82,187)
Purchases of long-term investments ........................ (173,746,966)
Purchases of short-term investments -- net ................ (34,774,256)
-------------
Net cash provided by operating activities ................. 18,377,702
-------------
===============================================================================
Cash Used by Financing Activities
-------------------------------------------------------------------------------
Cash receipts from borrowings ............................. 15,200,000
Cash payments on borrowings ............................... (14,500,000)
Dividends paid to shareholders ............................ (19,077,702)
-------------
Net cash used for financing activities .................... (18,377,702)
-------------
===============================================================================
Cash
-------------------------------------------------------------------------------
Net increase/decrease in cash ............................. --
Cash at beginning of period ............................... 100,000
-------------
Cash at end of period ..................................... $ 100,000
=============
===============================================================================
Cash Flow Information
-------------------------------------------------------------------------------
Cash paid for interest .................................... $ 6,145,435
=============
See Notes to Financial Statements.
16 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007
Financial Highlights
For the Six
Months Ended For the Year Ended For the Period
The following per share data and ratios February 28, August 31, May 30, 2003+
have been derived from information 2007 ----------------------------------------- to August 31,
provided in the financial statements. (Unaudited) 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ......... $ 14.12 $ 15.08 $ 15.71 $ 14.39 $ 14.33
------------------------------------------------------------------------------
Investment income -- net ................. .56*** 1.16*** 1.37*** 1.50 .30
Realized and unrealized gain (loss) -- net .60 (.49) .19 1.27 (.03)
------------------------------------------------------------------------------
Total from investment operations ............. 1.16 .67 1.56 2.77 .27
------------------------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ................. (.45) (1.17) (1.49) (1.43) (.20)
Realized gain -- net ..................... -- (.46) (.70) (.02) --
------------------------------------------------------------------------------
Total dividends and distributions ............ (.45) (1.63) (2.19) (1.45) (.20)
------------------------------------------------------------------------------
Offering costs resulting from the issuance of
Common Stock ............................... -- -- -- -- (.01)
------------------------------------------------------------------------------
Net asset value, end of period ............... $ 14.83 $ 14.12 $ 15.08 $ 15.71 $ 14.39
------------------------------------------------------------------------------
Market price per share, end of period ........ $ 13.53 $ 12.48 $ 14.32 $ 14.52 $ 13.61
==============================================================================
===================================================================================================================================
Total Investment Return**
-----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ........... 9.41%@ 6.29% 11.28% 20.70% 1.91%@
==============================================================================
Based on market price per share .............. 12.94%@ (1.07%) 14.34% 17.95% (7.92%)@
==============================================================================
===================================================================================================================================
Ratios to Average Net Assets
-----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and excluding
interest expense ........................... 1.15%* 1.11% 1.11% 1.09% .45%*
==============================================================================
Expenses, net of waiver ...................... 3.54%* 2.89% 2.09% 1.56% .52%*
==============================================================================
Expenses ..................................... 3.54%* 2.89% 2.09% 1.57% .91%*
==============================================================================
Investment income -- net ..................... 7.86%* 8.11% 8.91% 9.76% 8.22%*
==============================================================================
===================================================================================================================================
Leverage
-----------------------------------------------------------------------------------------------------------------------------------
Amount of borrowings outstanding, end of
period (in thousands) ...................... $ 216,900 $ 216,200 $ 185,200 $ 207,100 $113,300
==============================================================================
Average amount of borrowings outstanding
during the period (in thousands) ........... $ 216,597 $ 184,070 $ 188,044 $ 178,605 $ 24,585
==============================================================================
Average amount of borrowings outstanding
per share during the period*** ............. $ 6.14 $ 5.22 $ 5.33 $ 5.06 $ .71
==============================================================================
===================================================================================================================================
Supplemental Data
-----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ..... $ 523,265 $ 498,096 $ 532,031 $ 554,390 $507,588
==============================================================================
Portfolio turnover ........................... 26.22% 62.38% 48.24% 81.43% 59.69%
==============================================================================
* Annualized.
** Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
dif ferent returns. Total investment returns exclude the effects of sales
charges.
*** Based on average shares outstanding.
+ Commencement of operations.
@ Aggregate total investment return.
See Notes to Financial Statements.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 17
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock Corporate High Yield Fund VI, Inc. (the "Fund") is registered under
the Investment Company Act of 1940, as amended, as a diversified, closed-end
management investment company. The Fund's financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may require
the use of management accruals and estimates. Actual results may differ from
these estimates. 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 is
listed on the New York Stock Exchange ("NYSE") under the symbol HYT. The
following is a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments -- Debt securities are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid price
in the OTC market or on the basis of values obtained by a pricing service. As of
October 2, 2006, floating rate loan interests are valued at the mean between the
last available bid prices from one or more dealers as obtained from Loan Pricing
Corporation. Previously, floating rate loan interests were valued at the mean
between the last available bid and asked prices as obtained from the same
pricing source. This change had no significant effect on the valuation of these
loans. Pricing services use valuation matrixes that incorporate both
dealer-supplied valuations and valuation models. The procedures of the pricing
service and its valuations are reviewed by the officers of the Fund under the
general direction of the Board of Directors. Such valuations and procedures will
be reviewed periodically by the Board of Directors of the Fund. Financial
futures contracts and options thereon, which are traded on exchanges, are valued
at their closing prices as of the close of such exchanges. Options written or
purchased are valued at the last sale price in the case of exchange-traded
options. Options traded in the OTC market are valued at the last asked price
(options written) or the last bid price (options purchased). Swap agreements are
valued based upon quoted fair valuations received daily by the Fund from a
pricing service or counterparty. Short-term investments with a remaining
maturity of 60 days or less are valued at amortized cost, which approximates
market value, under which method the investment is valued at cost and any
premium or discount is amortized on a straight line basis to maturity.
Repurchase agreements are valued at cost plus accrued interest. Investments in
open-end investment companies are valued at their net asset value each business
day. Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Directors of the Fund.
Equity securities that are held by the Fund, which are traded on stock exchanges
or the NASDAQ Global Market, are valued at the last sale price or official close
price on the exchange, as of the close of business on the day the securities are
being valued or, lacking any sales, at the last available bid price for long
positions, and at the last available asked price for short positions. In cases
where equity securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market by or under the
authority of the Board of Directors of the Fund. Long positions traded in the
OTC market, NASDAQ Capital Market or Bulletin Board are valued at the last
available bid price obtained from one or more dealers or pricing services
approved by the Board of Directors of the Fund. Short positions traded in the
OTC market are valued at the last available asked price. Portfolio securities
that are traded both in the OTC market and on a stock exchange are valued
according to the broadest and most representative market.
Generally, trading in foreign securities, as well as U.S. government securities,
money market instruments and certain fixed income securities, is substantially
completed each day at various times prior to the close of business on the NYSE.
The values of such securities used in computing the net asset value of the
Fund's shares are determined as of such times. Foreign currency exchange rates
will generally be determined as of the close of business on the NYSE.
Occasionally, events affecting the values of such securities and such exchange
rates may occur between the times at which they are determined and the close of
business on the NYSE that may not be reflected in the computation of the Fund's
net asset value. If events (for example, a company announcement, market
volatility or a natural disaster) occur during such periods that are expected to
materially affect the value of such securities, those securities will be valued
at their fair value as determined in good faith by the Fund's Board of Directors
or by BlackRock Advisors, LLC (the "Manager"), an indirect, wholly owned
subsidiary of BlackRock, Inc., using a pricing service and/or procedures
approved by the Fund's Board of Directors.
(b) Foreign currency transactions -- Transactions denominated in foreign
currencies are recorded at the exchange
18 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007
Notes to Financial Statements (continued)
rate prevailing when recognized. Assets and liabilities denominated in foreign
currencies are valued at the exchange rate at the end of the period. Foreign
currency transactions are the result of settling (realized) or valuing
(unrealized) assets or liabilities expressed in foreign currencies into U.S.
dollars. Realized and unrealized gains or losses from investments include the
effects of foreign exchange rates on investments. The Fund invests in foreign
securities, which may involve a number of risk factors and special
considerations not present with investments in securities of U.S. corporations.
(c) Derivative financial instruments -- The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise due to changes in the value of the contract due to an
unfavorable change in the price of the underlying security or index or if the
counterparty does not perform under the contract.
o Options -- The Fund may write and purchase call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund
is reflected as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market
value of the option written. When a security is purchased or sold through
an exercise of an option, the related premium paid (or received) is added
to (or deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option expires
(or the Fund enters into a closing transaction), the Fund realizes a gain
or loss on the option to the extent of the premiums received or paid (or
gain or loss to the extent the cost of the closing transaction exceeds the
premium paid or received).
Written and purchased options are non-income producing investments.
o Financial futures contracts -- The Fund may purchase or sell financial
futures contracts and options on such financial futures contracts.
Financial futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield.
Upon entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known
as variation margin and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
o Swaps -- The Fund may enter into swap agreements, which are OTC contracts
in which the Fund and a counterparty agree to make periodic net payments
on a specified notional amount. The net payments can be made for a set
period of time or may be triggered by a predetermined credit event. The
net periodic payments may be based on a fixed or variable interest rate;
the change in market value of a specified security, basket of securities,
or index; or the return generated by a security. These periodic payments
received or made by the Fund are recorded in the accompanying Statement of
Operations as realized gains or losses, respectively. Gains or losses are
realized upon termination of the swap agreements. Swaps are
marked-to-market daily and changes in value are recorded as unrealized
appreciation (depreciation). Risks include changes in the returns of the
underlying instruments, failure of the counterparties to perform under the
contracts' terms and the possible lack of liquidity with respect to the
swap agreements.
(d) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
(e) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis. The Fund amortizes all
premiums and discounts on debt securities.
(f) Dividends and distributions -- Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
(g) Securities lending -- The Fund may lend securities to financial institutions
that provide cash or securities issued or guaranteed by the U.S. government as
collateral, which will be maintained at all times in an amount equal to at least
100% of the current market value of the loaned securities. The market value of
the loaned securities is determined at
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 19
Notes to Financial Statements (continued)
the close of business of the Fund and any additional required collateral is
delivered to the Fund on the next business day. Where the Fund receives
securities as collateral for the loaned securities, it collects a fee from the
borrower. The Fund typically receives the income on the loaned securities but
does not receive the income on the collateral. Where the Fund receives cash
collateral, it may invest such collateral and retain the amount earned on such
investment, net of any amount rebated to the borrower. Loans of securities are
terminable at any time and the borrower, after notice, is required to return
borrowed securities within five business days. The Fund may pay reasonable
finder's, lending agent, administrative and custodial fees in connection with
its loans. In the event that the borrower defaults on its obligation to return
borrowed securities because of insolvency or for any other reason, the Fund
could experience delays and costs in gaining access to the collateral. The Fund
also could suffer a loss where the value of the collateral falls below the
market value of the borrowed securities, in the event of borrower default or in
the event of losses on investments made with cash collateral.
(h) Recent accounting pronouncements -- In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109."
FIN 48 prescribes the minimum recognition threshold a tax position must meet in
connection with accounting for uncertainties in income tax positions taken or
expected to be taken by an entity including mutual funds before being measured
and recognized in the financial statements. Adoption of FIN 48 is required for
the last net asset value calculation in the first required financial statement
reporting period for fiscal years beginning after December 15, 2006. The impact
on the Fund's financial statements, if any, is currently being assessed.
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS 157
and its impact on the Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, 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:
On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill
Lynch") combined Merrill Lynch's investment management business, Merrill Lynch
Investment Managers, L.P. ("MLIM"), and its affiliates, including Fund Asset
Management, L.P. ("FAM"), with BlackRock, Inc. to create a new independent
company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest
in the combined company and The PNC Financial Services Group, Inc., has
approximately a 34% economic and voting interest. The new company operates under
the BlackRock name and is governed by a board of directors with a majority of
independent members.
On August 15, 2006, shareholders of the Fund approved a new Investment Advisory
Agreement with BlackRock Advisors, Inc., which was reorganized into a limited
liability company and renamed BlackRock Advisors, LLC. The new Investment
Advisory Agreement between the Fund and the Manager became effective on
September 29, 2006. Prior to September 29, 2006, FAM was the manager. The
general partner of FAM is Princeton Services, Inc. ("PSI"), an indirect, wholly
owned subsidiary of Merrill Lynch, which is the limited partner.
The Manager is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operation of the Fund. For such services, the Fund
pays a monthly fee at an annual rate of .70% of the Fund's average daily net
assets plus the proceeds of any outstanding principal borrowed. In addition, the
Manager has entered into a sub-advisory agreement with BlackRock Financial
Management, Inc., an
20 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007
Notes to Financial Statements (concluded)
affiliate of the Manager, under which the Manager pays the Sub-Adviser for
services it provides a fee 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 ("MLPF&S"), a wholly owned subsidiary of Merrill
Lynch, or its affiliates. Pursuant to that order, the Fund has retained
BlackRock Investment Management, LLC ("BIM"), an affiliate of the Manager, as
the securities lending agent for a fee based on a share of the returns on
investment of cash collateral. Prior to September 29, 2006, BIM was organized as
Merrill Lynch Investment Managers, LLC ("MLIM, LLC"), an affiliate of FAM, and
MLIM, LLC was the securities lending agent. BIM may, on behalf of the Fund,
invest cash collateral received by the Fund for such loans, among other things,
in a private investment company managed by the Manager or in registered money
market funds advised by the Manager or its affiliates.
For the six months ended February 28, 2007, the Fund reimbursed FAM and the
Manager $814, and $4,068, respectively, for certain accounting services.
Prior to September 29, 2006, certain officers and/or directors of the Fund were
officers and/or directors of FAM, PSI, Merrill Lynch, and/or MLIM, LLC.
Commencing September 29, 2006, certain officers and/or directors of the Fund are
officers and/or directors of BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales (including paydowns) of investments, excluding short-term
securities, for the six months ended February 28, 2007 were $181,609,101 and
$221,292,556, respectively.
4. Capital Share Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock, par value
$.10, 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 February 28, 2007
remained constant. Shares issued and outstanding during the year ended August
31, 2006 increased by 4,455 as a result of dividend reinvestment.
5. Short-Term Borrowings:
On May 22, 2006, the Fund renewed its revolving credit and security agreement
funded by a commercial paper asset securitization program with Citicorp North
America, Inc. ("Citicorp") as Agent, certain secondary backstop lenders, and
certain asset securitization conduits as lenders (the "Lenders"). The agreement
was renewed for one year and has a maximum limit of $250,000,000. Under the
Citicorp program, the conduits will fund advances to the Fund through the
issuance of highly rated commercial paper. As security for its obligations to
the Lenders under the revolving securitization facility, the Fund has granted a
security interest in substantially all of its assets to and in favor of the
Lenders. The interest rate on the Fund's borrowings is based on the interest
rate carried by the commercial paper plus a program fee. The Fund pays
additional borrowing costs including a backstop commitment fee.
The weighted average annual interest rate was 6.13% and the average borrowing
was approximately $216,597,000 for the six months ended February 28, 2007.
6. Capital Loss Carryforward:
On August 31, 2006, the Fund had a net capital loss carryforward of $2,291,195,
all of which expires in 2014. This amount will be available to offset like
amounts of any future taxable gains.
7. Subsequent Event:
The Fund paid an ordinary income dividend in the amount of $.090000 per share on
March 30, 2007 to shareholders of record on March 15, 2007.
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 21
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.
To enroll:
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment
advisers, banks or brokerages may offer this service.
22 BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 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 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.
Officers and Directors
Robert C. Doll, Jr., President and Director
James H. Bodurtha, Director
Kenneth A. Froot, Director
Joe Grills, Director
Herbert I. London, Director
Roberta Cooper Ramo, Director
Robert S. Salomon, Jr., Director
Donald C. Burke, Vice President and Treasurer
Jeffrey Hiller, Fund Chief Compliance Officer
Alice A. Pellegrino, Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-3010
NYSE Symbol
HYT
--------------------------------------------------------------------------------
Effective April 13, 2007, Jeffrey Hiller resigned his position as Chief
Compliance Officer of the Fund. Also effective April 13, 2007, Karen Clark was
appointed Chief Compliance Officer of the Fund. Ms. Clark has been a Managing
Director of BlackRock, Inc. since 2007. She was a Director thereof from 2005 to
2007. Prior to that, Ms. Clark was a principal and senior compliance officer at
State Street Global Advisors from 2001 to 2005. Ms. Clark was a principal
consultant with PricewaterhouseCoopers, LLP from 1998 to 2001. From 1993 to
1998, Ms. Clark was Branch Chief, Division of Investment Management and Office
of Compliance Examinations, with the U.S. Securities and Exchange Commission.
--------------------------------------------------------------------------------
BLACKROCK CORPORATE HIGH YIELD FUND VI, INC. FEBRUARY 28, 2007 23
BlackRock Corporate High Yield Fund VI, Inc. seeks to provide shareholders with
current income by investing primarily in a diversified portfolio of fixed income
securities that are rated in the lower rating categories of the established
rating services (Ba or lower by Moody's Investors Service, Inc. or BB or lower
by Standard & Poor's) or are unrated securities of comparable quality.
This report, including the financial information herein, is transmitted to
shareholders of BlackRock Corporate High Yield Fund VI, Inc. for their
information. It is not a prospectus. The Fund has leveraged its Common Stock to
provide Common Stock shareholders with a potentially higher rate of return.
Leverage creates risk for Common Stock shareholders, including the likelihood of
greater volatility of net asset value and market price of Common Stock shares,
and the risk that fluctuations in short-term interest rates may reduce the
Common Stock's yield. Past performance results shown in this report should not
be considered a representation of future performance. Statements and other
information herein are as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's Web site
at http://www.sec.gov. Information about how the Fund voted proxies relating to
securities held in the Fund's portfolio during the most recent 12-month period
ended June 30 is available (1) at www.blackrock.com and (2) on the Securities
and Exchange Commission's Web site at http://www.sec.gov.
BlackRock Corporate High Yield Fund VI, Inc.
P.O. Box 9011
Princeton, NJ 08543-9011
BLACKROCK
#COYVI-2/07
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 - Not Applicable
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 - as
of February 28, 2007.
(a)(1) The Fund is managed by a team of investment professionals the
lead members of which are Scott Amero, Managing Director at BlackRock,
and Jeffrey Gary, Managing Director at BlackRock. This team has managed
the Fund's portfolio since 2006. Messrs. Amero and Gary are jointly and
primarily responsible for the day-to-day management of the Fund's
portfolio and the selection of its investments.
Scott Amero is co-head of BlackRock's fixed income portfolio management
team. He is a member of the Management Committee and the Investment
Strategy Group. Mr. Amero is a senior strategist and portfolio manager
with responsibility for overseeing all fixed income sector strategy and
the overall management of client portfolios. He is also the head of
global credit research. He is director of Anthracite Capital, Inc.,
BlackRock's publicly-traded real estate investment trust. Mr. Amero has
been with BlackRock since 1990.
Mr. Gary has been with BlackRock since 2003. He is head of BlackRock's
high yield team and a member of the Investment Strategy Group. Prior to
joining BlackRock in 2003, Mr. Gary was a Managing Director of and
portfolio manager with AIG (American General) Investment Group.
(a)(2) As of February 28, 2007:
(iii) Number of Other Accounts and
(ii) Number of Other Accounts Managed Assets for Which Advisory Fee is
and Assets by Account Type Performance-Based
Other Other
Registered Other Pooled Registered Other Pooled
(i) Name of Investment Investment Other Investment Investment Other
Portfolio Manager Companies Vehicles Accounts Companies Vehicles Accounts
---------- ----------
Scott Amero 48 30 286 0 5 22
$34,960,032,111 $ 7,700,000,000 $96,400,000,000 $ 0 $ 1,900,000,000 $ 6,600,000,000
Jeffrey Gary 15 5 24 0 4 5
$ 6,238,543,723 $ 6,059,151,800 $ 3,341,858,544 $ 0 $ 1,811,026,446 $ 789,018,041
(iv) Potential Material Conflicts of Interest
BlackRock has built a professional working environment, firm-wide
compliance culture and compliance procedures and systems designed to
protect against potential incentives that may favor one account over
another. BlackRock has adopted policies and procedures that address the
allocation of investment opportunities, execution of portfolio
transactions, personal trading by employees and other potential
conflicts of interest that are designed to ensure that all client
accounts are treated equitably over time. Nevertheless, BlackRock
furnishes investment management and advisory services to numerous
clients in addition to the Fund, and BlackRock may, consistent with
applicable law, make investment recommendations to other clients or
accounts (including accounts which are hedge funds or have performance
or higher fees paid to BlackRock, or in which portfolio managers have a
personal interest in the receipt of such fees), which may be the same
as or different from those made to the Fund. In addition, BlackRock,
its affiliates and any officer, director, stockholder or employee may
or may not have an interest in the securities whose purchase and sale
BlackRock recommends to the Fund. BlackRock, or any of its affiliates,
or any officer, director, stockholder, employee or any member of their
families may take different actions than those recommended to the Fund
by BlackRock with respect to the same securities. Moreover, BlackRock
may refrain from rendering any advice or services concerning securities
of companies of which any of BlackRock's (or its affiliates') officers,
directors or employees are directors or officers, or companies as to
which BlackRock or any of its affiliates or the officers, directors and
employees of any of them has any substantial economic interest or
possesses material non-public information. Each portfolio manager also
may manage accounts whose investment strategies may at times be opposed
to the strategy utilized for the Fund. In this connection, it should be
noted that certain portfolio managers currently manage certain accounts
that are subject to performance fees. In addition, certain portfolio
managers assist in managing certain hedge funds and may be entitled to
receive a portion of any incentive fees earned on such funds and a
portion of such incentive fees may be voluntarily or involuntarily
deferred. Additional portfolio managers may in the future manage other
such accounts or funds and may be entitled to receive incentive fees.
As a fiduciary, BlackRock owes a duty of loyalty to its clients and
must treat each client fairly. When BlackRock purchases or sells
securities for more than one account, the trades must be allocated in a
manner consistent with its fiduciary duties. BlackRock attempts to
allocate investments in a fair and equitable manner among client
accounts, with no account receiving preferential treatment. To this
end, BlackRock has adopted a policy that is intended to ensure that
investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve reasonable
efficiency in client transactions and provide BlackRock with sufficient
flexibility to allocate investments in a manner that is consistent with
the particular investment discipline and client base.
(a)(3) As of February 28, 2007:
Compensation Program
BlackRock's financial arrangements with its portfolio
managers, its competitive compensation and its career path emphasis at
all levels reflect the value senior management places on key resources.
Compensation may include a variety of components and may vary from year
to year based on a number of factors. The principal components of
compensation include a base salary, a discretionary bonus,
participation in various benefits programs and one or more of the
incentive compensation programs established by BlackRock such as its
Long-Term Retention and Incentive Plan and Restricted Stock Program.
Base Compensation
Generally, portfolio managers receive base compensation based
on their seniority and/or their position with the firm.
Discretionary Compensation
In addition to base compensation, portfolio managers may
receive discretionary compensation, which can be a substantial portion
of total compensation. Discretionary compensation can include a
discretionary cash bonus as well as one or more of the following:
Long-Term Retention and Incentive Plan (LTIP)
The LTIP is a long-term incentive plan that seeks to reward
certain key employees. The plan provides for the grant of awards that
are expressed as an amount of cash that, if properly vested and subject
to the attainment of certain performance goals, will be settled in cash
and/or in BlackRock, Inc. common stock.
Deferred Compensation Program
A portion of the compensation paid to each portfolio manager
may be voluntarily deferred by the portfolio manager into an account
that tracks the performance of certain of the firm's investment
products. Each portfolio manager is permitted to allocate his deferred
amounts among various options, including to certain of the firm's hedge
funds and other unregistered products. In addition, prior to 2005, a
portion of the annual compensation of certain senior managers was
mandatorily deferred in a similar manner for a number of years.
Beginning in 2005, a portion of the annual compensation of certain
senior managers was paid in the form of BlackRock, Inc. restricted
stock units which vest ratably over a number of years.
Options and Restricted Stock Awards
While incentive stock options are not currently being awarded
to BlackRock employees, BlackRock, Inc. previously granted stock
options to key employees, including certain portfolio managers who may
still hold unexercised or unvested options. BlackRock, Inc. also has a
restricted stock award program designed to reward certain key employees
as an incentive to contribute to the long-term success of BlackRock.
These awards vest over a period of years.
Incentive Savings Plans
BlackRock, Inc. has created a variety of incentive savings
plans in which BlackRock employees are eligible to participate,
including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP)
and the BlackRock Employee Stock Purchase Plan (ESPP). The employer
contribution components of the RSP include a company match equal to 50%
of the first 6% of eligible pay contributed to the plan capped at
$4,000 per year, and a company retirement contribution equal to 3% of
eligible compensation, plus an additional contribution of 2% for any
year in which BlackRock has positive net operating income. The RSP
offers a range of investment options, including registered investment
companies managed by the firm. Company contributions follow the
investment direction set by participants for their own contributions or
absent, employee investment direction, are invested into a stable value
fund. The ESPP allows for investment in BlackRock common stock at a 5%
discount on the fair market value of the stock on the purchase date.
Annual participation in the ESPP is limited to the purchase of 1,000
shares or a dollar value of $25,000. Each portfolio manager is eligible
to participate in these plans.
Annual incentive compensation for each portfolio manager is a
function of several components: the performance of BlackRock, Inc., the
performance of the portfolio manager's group within BlackRock, the
investment performance, including risk-adjusted returns and income
generation, of the firm's assets under management or supervision by
that portfolio manager relative to predetermined benchmarks, and the
individual's teamwork and contribution to the overall performance of
these portfolios and BlackRock. Unlike many other firms, portfolio
managers at BlackRock compete against benchmarks rather than each
other. In most cases, including for the portfolio managers of the
Registrant, these benchmarks are the same as the benchmark or
benchmarks against which the investment performance, including
risk-adjusted returns and income generation, of the Registrant or other
accounts are measured. A group of BlackRock, Inc.'s officers determines
which benchmarks against which to compare the performance of funds and
other accounts managed by each portfolio manager.
The group of BlackRock, Inc.'s officers then makes a
subjective determination with respect to the portfolio manager's
compensation based on the performance of the funds and other accounts
managed by each portfolio manager relative to the various benchmarks.
This determination may take into consideration the fact that a
benchmark may not perfectly correlate to the way the Registrant or
other accounts are managed, even if it is the benchmark that is most
appropriate for the Registrant or other account. For example, a
benchmark's return may be based on the total return of the securities
comprising the benchmark, but the Registrant or other account may be
managed to maximize income and not total return. Senior portfolio
managers who perform additional management functions within BlackRock
may receive additional compensation for serving in these other
capacities.
(a)(4) Beneficial Ownership of Securities. As of February 28, 2007,
Messrs. Amero and Gary do not beneficially own stock issued by
the Fund.
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 - Not Applicable
Item 11 - Controls and Procedures
11(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to
the filing date of this report.
11(b) - As of September 29, 2006, with the conclusion of the combination of
Merrill Lynch's asset management business with BlackRock, the registrant
was migrated to BlackRock's trading and compliance monitoring systems,
and various personnel changes occurred. In conjunction with these
business improvements, there were no changes in the registrants internal
control over financial reporting (as defined in Rule 30a-3(d) under Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal half-year of
the period covered by this report that has materially affected, or is
reasonably likely to 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 Corporate High Yield Fund VI, Inc.
By: /s/ Robert C. Doll, Jr.
--------------------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
BlackRock Corporate High Yield Fund VI, Inc.
Date: April 23, 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 of
BlackRock Corporate High Yield Fund VI, Inc.
Date: April 23, 2007
By: /s/ Donald C. Burke
--------------------------------------------
Donald C. Burke,
Chief Financial Officer of
BlackRock Corporate High Yield Fund VI, Inc.
Date: April 23, 2007