UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21539
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FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
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(Exact name of registrant as specified in charter)
1001 Warrenville Road, Suite 300
LISLE, IL 60532
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(Address of principal executive offices) (Zip code)
W. Scott Jardine
First Trust Portfolios L.P.
1001 Warrenville Road, Suite 300
LISLE, IL 60532
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(Name and address of agent for service)
Registrant's telephone number, including area code: 630-241-4141
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Date of fiscal year end: MAY 31
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Date of reporting period: AUGUST 31, 2005
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. The OMB has reviewed this collection of information under the
clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2005 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION o MOODY'S S&P COUPON MATURITY* VALUE
----------- -------------------------------- ------------------ ----------- ------------ --------------
SENIOR FLOATING RATE TERM LOAN INTERESTS** - 151.0%
AEROSPACE & DEFENSE - 3.8%
AEROSPACE & DEFENSE - 3.8%
$ 3,288,889 Hexcel Corp. ..................... B2 B+ 5.25%-5.56% 3/01/12 $ 3,325,889
2,952,632 Hunter Defense Holdings, Inc. .... NR(a) NR(a) 6.63% 3/10/11 2,982,158
2,032,936 K&F Industries, Inc. ............. B2 B+ 6.15%-6.17% 11/18/12 2,064,447
1,000,000 Mid-Western Aircraft Systems, Inc. B1 BB- 5.96% 12/31/11 1,013,500
2,732,484 MRO Acquisition Corp. ............ B1 B+ 6.57% 8/27/10 2,773,471
3,323,077 Standard Aero Holdings, Inc. ..... B2 B+ 5.72%-5.92% 8/24/12 3,364,615
3,100,000 Vought Aircraft Industries, Inc. . Ba3 B+ 5.84% 12/22/10 3,147,145
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TOTAL AEROSPACE & DEFENSE 18,671,225
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AIR FREIGHT & LOGISTICS - 1.2%
AIR FREIGHT & LOGISTICS - 1.2%
5,942,625 United Air Lines Inc.
(Debtor in Possession) (f) .... NR(a) BB 7.96% 12/30/05 5,994,623
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TOTAL AIR FREIGHT & LOGISTICS 5,994,623
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AUTO COMPONENTS - 3.6%
AUTO PARTS & EQUIPMENT - 3.6%
3,000,000 Collins & Aikman Corp.,
(Debtor in Possession) (f) .... NR NR 6.44%-6.69% 5/17/07 3,011,250
6,000,000 Environmental Systems Products
Holdings Inc. (c) ............. Caa1 NR(a) 13.66%-13.86% 12/12/10 6,090,000
1,995,000 MetoKote Corp. ................... B2 B+ 6.49%-6.68% 11/27/11 2,002,481
6,467,500 TRW Automotive Inc. .............. Ba2 BB+ 5.25% 6/30/12 6,528,133
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TOTAL AUTO COMPONENTS 17,631,864
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BEVERAGES - 0.2%
SOFT DRINKS - 0.2%
1,000,000 Culligan Corp. ................... B1 B+ 6.07% 9/30/11 1,013,333
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TOTAL BEVERAGES 1,013,333
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BUILDING PRODUCTS - 3.4%
BUILDING PRODUCTS - 3.4%
4,987,500 Custom Building Products ......... NR(a) NR(a) 5.74%-8.58% 10/20/11 5,018,672
2,420,865 Headwaters Inc. .................. B1 B+ 5.87%-7.75% 4/30/11 2,450,116
1,666,667 Headwaters Inc. (c) .............. B3 B- 9.02% 9/01/12 1,709,722
965,000 NCI Building Systems, Inc. ....... Ba2 BB 5.42%-5.67% 6/18/10 973,444
4,389,867 PGT Industries, Inc. ............. NR(a) NR(a) 6.58%-6.76% 1/29/10 4,455,715
1,000,000 South Edge, LLC .................. NR(a) NR(a) 5.56% 10/31/09 1,006,667
997,500 Stile U.S. Acquisition Corp. ..... B2 BB- 5.49%-5.66% 4/06/13 999,540
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TOTAL BUILDING PRODUCTS 16,613,876
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CHEMICALS - 2.3%
DIVERSIFIED CHEMICALS - 2.3%
5,000,000 BCP Crystal US Holdings Corp. .... B1 B+ 5.65% 1/26/09 5,081,250
6,000,000 Brenntag Holding GmbH &
Company KG .................... B1 BB- 6.81% 12/09/11 6,060,000
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TOTAL CHEMICALS 11,141,250
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See Notes to Quarterly Portfolio of Investments Page 1
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION o MOODY'S S&P COUPON MATURITY* VALUE
----------- -------------------------------- ------------------ ----------- ------------ --------------
SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED
COMMERCIAL SERVICES & SUPPLIES - 10.5%
DIVERSIFIED COMMERCIAL SERVICES - 4.6%
$ 11,000,000 IAP Worldwide Services, Inc. ..... B1 B+ 6.31% 3/30/11 $ 11,171,875
4,000,000 IAP Worldwide Services, Inc. (c) . B2 B- 9.31% 3/30/12 4,076,668
2,972,727 N.E.W. Customer Service
Companies, Inc. ............... NR(a) NR(a) 6.88%-7.06% 7/01/11 3,013,602
2,968,750 United Rentals, Inc. ............. B1 BB 5.59-5.92% 2/14/11 2,996,211
981,308 Western Inventory Service, Ltd. .. B2 B 6.40%-8.25% 3/31/11 987,442
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22,245,798
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ENVIRONMENTAL SERVICES - 1.9%
2,941,590 Duratek, Inc. .................... B1 BB- 6.55-6.75% 12/16/09 2,948,943
6,281,053 Envirocare of Utah, LLC .......... NR(a) NR(a) 6.11% 4/13/10 6,375,269
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9,324,212
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OFFICE SERVICES & SUPPLIES - 4.0%
3,240,149 Infrasource Inc. ................. Ba3 BB- 6.24% 9/30/10 3,256,350
5,922,173 Monitronics International, Inc. .. B1 B+ 7.25-7.39% 8/26/09 5,981,395
4,159,877 Pike Electric, Inc. .............. NR(a) NR(a) 5.81%-5.88% 7/01/12 4,201,476
4,950,000 Quanta Services Inc. ............. Ba3 BB- 6.43%-6.47% 6/19/08 5,011,875
958,333 TRM Corp. ........................ B2 B+ 7.40%-7.52% 11/19/10 965,521
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19,416,617
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TOTAL COMMERCIAL SERVICES & SUPPLIES 50,986,627
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CONTAINERS & PACKAGING - 4.5%
METAL & GLASS CONTAINERS - 2.0%
868,000 BWAY Corp. ....................... B1 B+ 5.88%-6.00% 6/30/11 879,664
1,000,000 Captive Plastics, Inc. ........... NR(a) B- 6.61% 8/16/11 1,007,500
1,243,750 International Mill Service Inc. .. B1 B+ 6.17% 12/31/10 1,253,078
2,082,188 Owens-Illinois Group, Inc. ....... B1 BB- 5.37%-5.45% 4/01/08 2,100,846
4,776,720 Owens-Illinois Group, Inc. ....... B1 BB- 5.33% 4/01/07 4,810,554
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10,051,642
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PAPER PACKAGING - 2.5%
1,798,161 Boise Cascade, LLC ............... Ba3 BB 5.25%-5.44% 10/28/11 1,823,560
3,980,000 Graham Packaging Holdings
Company ....................... B2 B 5.94%-6.06% 10/07/11 4,040,528
6,000,000 Graham Packaging Holdings
Company (c) ................... B3 CCC+ 7.75% 4/07/12 6,145,002
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12,009,090
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TOTAL CONTAINERS & PACKAGING 22,060,732
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DIVERSIFIED CONSUMER SERVICES - 0.3%
SPECIALIZED CONSUMER SERVICES - 0.3%
1,654,466 Coinstar, Inc. ................... Ba3 BB- 5.55% 7/01/11 1,675,147
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TOTAL DIVERSIFIED CONSUMER SERVICES 1,675,147
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Page 2 See Notes to Quarterly Portfolio of Investments
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION o MOODY'S S&P COUPON MATURITY* VALUE
----------- -------------------------------- ------------------ ----------- ------------ --------------
SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED
DIVERSIFIED FINANCIAL SERVICES - 1.8%
Specialized Finance - 1.8%
$ 8,827,500 Refco Finance Holdings LLC ....... B1 BB- 5.67% 8/05/11 $ 8,917,982
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TOTAL DIVERSIFIED FINANCIAL SERVICES 8,917,982
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DIVERSIFIED TELECOMMUNICATION SERVICES - 1.9%
INTEGRATED TELECOMMUNICATION SERVICES - 1.9%
1,000,000 Hawaiian Telecom
Communications, Inc. .......... B1 B+ 5.73% 10/31/12 1,012,188
6,000,000 NTL Investment Holdings Ltd. ..... B1 BB- 6.41% 5/10/12 6,034,998
1,995,000 Telcordia Technologies, Inc. ..... B1 B+ 6.51%-6.61% 9/15/12 1,990,013
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TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 9,037,199
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ELECTRIC UTILITIES - 7.2%
ELECTRIC UTILITIES - 7.2%
6,280,919 Allegheny Energy Supply Inc. ..... Ba2 BB 5.34%-5.36% 3/08/11 6,361,000
933,249 Cogentrix Delaware Holdings, Inc. Ba2 BB+ 5.24% 4/14/12 943,359
3,577,236 Covanta Energy Corp. ............. B1 B+ 6.46% 6/30/12 3,633,130
4,422,764 Covanta Energy Corp. ............. B1 B+ 6.36% 6/24/12 4,491,870
6,500,972 Midwest Generation, LLC .......... Ba3 BB- 5.39%-5.50% 4/27/11 6,555,827
7,977,500 NRG Energy, Inc. ................. Ba3 BB 5.26%-5.37% 12/24/11 8,062,261
2,148,408 Riverside Energy Center, LLC ..... Ba3 BB- 7.93% 6/24/11 2,212,860
1,656,670 Rocky Mountain Energy Center,
LLC ........................... Ba3 BB- 7.93% 6/24/11 1,706,370
995,731 Texas Genco, LLC ................. Ba2 BB 5.41%-5.67% 12/14/11 1,010,667
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TOTAL ELECTRIC UTILITIES 34,977,344
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ELECTRICAL EQUIPMENT - 1.2%
ELECTRICAL COMPONENTS & EQUIPMENT - 1.2%
3,000,000 Penn Engineering & Manufacturing
Corp. ......................... B2 B 5.97% 5/25/11 3,015,000
3,000,000 Penn Engineering & Manufacturing
Corp. (c) ..................... B3 CCC+ 9.47% 5/25/12 3,000,000
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TOTAL ELECTRICAL EQUIPMENT 6,015,000
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ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.6%
ELECTRONIC EQUIPMENT MANUFACTURERS - 0.4%
1,926,477 VeriFone, Inc. ................... B1 B+ 5.68% 6/30/11 1,936,109
--------------
Electronic Manufacturing Services - 0.2%
1,000,000 Cinram International Inc. ........ Ba3 BB 6.12% 9/30/09 1,009,000
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TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 2,945,109
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ENERGY EQUIPMENT & SERVICES - 1.2%
OIL & GAS EQUIPMENT & SERVICES - 1.2%
5,572,941 Ferrell Companies, Inc. .......... NR NR 6.93%-9.00% 12/17/11 5,684,400
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TOTAL ENERGY EQUIPMENT & SERVICES 5,684,400
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See Notes to Quarterly Portfolio of Investments Page 3
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION o MOODY'S S&P COUPON MATURITY* VALUE
----------- -------------------------------- ------------------ ----------- ------------ --------------
SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED
FOOD & STAPLES RETAILING - 1.9%
DRUG RETAIL - 0.8%
$ 3,935,126 The Jean Coutu Group (PJC) Inc. .. B1 BB- 5.94% 7/30/11 $ 3,992,925
Food Distributors - 1.1%
1,975,000 Golden State Foods Corp. ......... NR(a) NR(a) 5.43% 2/25/11 1,994,750
3,000,000 Nash Finch Company ............... B1 B+ 5.88% 11/12/10 3,030,000
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5,024,750
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TOTAL FOOD & STAPLES RETAILING 9,017,675
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FOOD PRODUCTS - 6.1%
AGRICULTURAL PRODUCTS - 1.9%
2,000,000 Chiquita Brands, L.L.C. .......... B1 BB- 6.19% 6/28/12 2,032,500
7,000,000 Dole Food Company, Inc. (c) ...... B3 B 8.69% 7/22/10 7,201,250
--------------
9,233,750
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PACKAGED FOODS & MEATS - 4.2%
7,922,226 Keystone Foods Holdings LLC ...... NR(a) NR(a) 5.25%-5.44% 6/16/11 8,001,448
8,939,962 OSI Group LLC .................... NR(a) NR(a) 5.49% 9/02/11 9,040,537
3,000,000 THL Food Products Company (d) .... B2 B- 6.59% 11/21/11 3,071,250
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20,113,235
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TOTAL FOOD PRODUCTS 29,346,985
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HEALTH CARE PROVIDERS & SERVICES - 8.7%
HEALTH CARE FACILITIES - 1.4%
957,500 Lifepoint Hospitals, Inc. ........ Ba3 BB 5.20% 4/15/12 966,733
5,985,000 Select Medical Corp. ............. B1 BB- 5.36%-7.25% 2/24/12 6,002,458
--------------
6,969,191
--------------
HEALTH CARE SERVICES - 5.3%
5,935,050 CHS/Community Health
Systems, Inc. ................. Ba3 BB- 5.42%-5.61% 8/19/11 6,012,948
5,000,000 DaVita Inc. ...................... B1 BB- TBA 5/20/12 5,068,055
2,846,945 Team Health, Inc. ................ B1 B+ 6.24% 3/23/11 2,854,063
6,478,687 US Oncology Holdings, Inc. ....... B1 B+ 6.13%-6.63% 8/20/11 6,583,966
5,080,100 VWR International, Inc. .......... B2 B+ 6.14% 4/07/11 5,140,426
--------------
25,659,458
--------------
MANAGED HEALTH CARE - 2.0%
4,450,038 IASIS Healthcare Corp. ........... B1 B+ 5.77% 6/22/11 4,509,636
2,970,000 Medcath Holdings Corp. ........... B2 B+ 5.88% 6/30/11 3,005,269
1,985,000 Vanguard Health Systems, Inc. .... B2 B 6.74% 9/23/11 2,005,678
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9,520,583
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TOTAL HEALTH CARE PROVIDERS & SERVICES 42,149,232
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HOTELS, RESTAURANTS & LEISURE - 8.6%
CASINOS & GAMING - 5.3%
5,940,000 Boyd Gaming Corp. ................ Ba2 BB 4.88%-4.99% 6/30/11 5,995,687
2,000,000 CCM Merger, Inc. ................. B1 B+ 5.64%-5.84% 10/21/12 2,021,666
4,018,535 Global Cash Access, Inc. ......... B2 B+ 5.92% 3/10/10 4,073,790
Page 4 See Notes to Quarterly Portfolio of Investments
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION o MOODY'S S&P COUPON MATURITY* VALUE
----------- -------------------------------- ------------------ ----------- ------------ --------------
SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED
HOTELS, RESTAURANTS & LEISURE - (CONTINUED)
CASINOS & GAMING - (CONTINUED)
$ 7,960,000 Marina District Finance
Company, Inc. ................. NR NR 5.13%-5.24% 10/20/11 $ 8,019,700
2,000,000 Penn National Gaming, Inc. ....... Ba3 BB- TBA 5/05/12 2,027,188
1,538,367 Pinnacle Entertainment, Inc. ..... B1 BB- 1.00%-6.67% 8/27/10 1,541,251
2,000,000 Seminole Tribe of Florida ........ NR(a) NR(a) 5.81% 9/30/11 2,027,500
--------------
25,706,782
--------------
HOTELS, RESORTS & CRUISE LINES - 1.9%
291,111 CNL Hospitality Partners, LP ..... NR(a) NR(a) 6.07% 10/13/06 291,111
9,000,403 OpBiz, LLC ....................... B3 B- 6.50%-7.50% 8/31/10 9,011,653
--------------
9,302,764
--------------
LEISURE FACILITIES - 1.4%
6,876,456 American Skiing Company .......... NR NR 7.99%-8.10% 11/24/10 6,919,434
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TOTAL HOTELS, RESTAURANTS & LEISURE 41,928,980
--------------
HOUSEHOLD DURABLES - 5.2%
HOMEBUILDING - 4.5%
2,038,576 Kyle Acquisition Group, LLC ...... NR(a) NR(a) 6.50% 7/20/08 2,064,058
2,775,964 Kyle Acquisition Group, LLC ...... NR(a) NR(a) 6.50% 7/20/10 2,810,664
11,617,669 Lake at Las Vegas Joint Venture .. B2 B+ 6.16%-6.51% 11/01/09 11,762,889
1,000,000 Technical Olympic USA, Inc. ...... NR(a) NR 6.56% 7/05/08 1,016,250
4,000,000 Technical Olympic USA, Inc.,
(Mezzanine Debt) (c) .......... NR(a) NR 9.06% 7/06/09 4,000,000
--------------
21,653,861
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HOUSEWARES & SPECIALTIES - 0.7%
1,216,627 Prestige Brands, Inc. ............ B1 B 5.18%-7.75% 4/06/11 1,225,751
2,316,237 Visant Holding Corp. ............. B1 B+ 5.75%-5.94% 10/04/11 2,350,402
--------------
3,576,153
--------------
TOTAL HOUSEHOLD DURABLES 25,230,014
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INDUSTRIAL CONGLOMERATES - 1.5%
Industrial Conglomerates - 1.5%
2,985,000 Goodman Global Holdings, Inc. .... B2 B+ 5.88% 12/23/11 3,024,178
982,964 Rexnord Corp. .................... B1 B+ 5.75%-6.21% 12/31/11 996,480
2,970,000 Roller Bearing Corp. ............. NR(a) NR(a) 8.00% 7/01/11 3,014,550
--------------
TOTAL INDUSTRIAL CONGLOMERATES 7,035,208
--------------
INSURANCE - 0.9%
Life & Health Insurance - 0.9%
4,376,836 Conseco, Inc. .................... B2 BB- 5.57% 6/22/10 4,426,076
--------------
TOTAL INSURANCE 4,426,076
--------------
INTERNET SOFTWARE & SERVICES - 1.3%
Internet Software & Services - 1.3%
6,000,000 SunGard Data Systems Inc. ........ B1 B+ 6.28% 2/11/13 6,081,750
--------------
TOTAL INTERNET SOFTWARE & SERVICES 6,081,750
--------------
See Notes to Quarterly Portfolio of Investments Page 5
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION o MOODY'S S&P COUPON MATURITY* VALUE
----------- -------------------------------- ------------------ ----------- ------------ --------------
SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED
IT SERVICES - 4.0%
DATA PROCESSING & OUTSOURCED SERVICES - 0.6%
$ 997,500 Fidelity National Information
Solutions, Inc. ............... Ba3 BB 5.07% 3/09/11 $ 995,451
1,913,514 Fidelity National Information
Solutions, Inc. ............... Ba3 BB 5.32% 3/09/13 1,915,052
--------------
2,910,503
--------------
IT CONSULTING & OTHER SERVICES - 3.4%
4,138,801 Alion Science and Technology
Corp. ......................... B1 B+ 5.63%-5.74% 8/02/09 4,138,801
997,475 CACI International Inc. .......... Ba2 BB 4.87%-5.04% 5/03/11 1,006,203
8,977,500 DynCorp International LLC ........ B2 B+ 6.06% 2/11/11 9,074,753
2,125,000 Wyle Laboratories, Inc. (c) ...... NR(a) B- 10.21% 7/28/11 2,162,187
--------------
16,381,944
--------------
TOTAL IT SERVICES 19,292,447
--------------
LEISURE EQUIPMENT & PRODUCTS - 0.8%
LEISURE PRODUCTS - 0.8%
4,000,000 Brooklyn Basketball, LLC (d) ..... NR NR 7.19% 6/16/08 3,990,000
--------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 3,990,000
--------------
MACHINERY - 1.7%
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS - 0.4%
2,007,500 Ashtead Group PLC ................ Ba3 BB- 6.06% 11/12/09 2,035,103
--------------
INDUSTRIAL MACHINERY - 1.3%
1,000,000 Invensys International
Holdings Ltd. (c) ............. B1 B+ 8.53% 12/05/09 1,022,500
4,943,210 Invensys International
Holdings Ltd. ................. Ba3 B+ 6.88% 9/05/09 4,998,821
--------------
6,021,321
--------------
TOTAL MACHINERY 8,056,424
--------------
MEDIA - 25.1%
ADVERTISING - 0.4%
2,169,122 Adams Outdoor Advertising, LP .... B1 B+ 5.54%-5.64% 10/18/12 2,195,331
BROADCASTING & CABLE TV - 13.6%
3,960,000 Bragg Communications, Inc. ....... NR(a) NR 6.36% 8/31/11 3,999,600
17,380,000 Century Cable Holdings, LLC ...... NR NR 8.50% 6/30/09 17,240,334
12,983,858 Charter Communications
Operating, LLC ................ B2 B 6.68% 4/27/10 12,910,824
1,333,333 DIRECTV Holdings LLC ............. Ba1 BB 5.09% 4/13/13 1,346,428
947,724 Mediacom Illinois, LLC,
(Revolving Credit) ............ Ba3 BB- 0.63%-6.75% 9/30/11 909,026
138,889 MMC Georgia LLC,
(Revolving Credit) ............ Ba3 BB- 0.50%-4.82% 3/31/10 134,375
2,982,513 NEP Supershooters, L.P. .......... B1 B 6.99% 2/03/11 3,032,842
6,008,886 PanAmSat Corp. ................... B1 BB+ 5.65% 8/20/11 6,073,481
Page 6 See Notes to Quarterly Portfolio of Investments
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION o MOODY'S S&P COUPON MATURITY* VALUE
----------- -------------------------------- ------------------ ----------- ------------ --------------
SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED
MEDIA - (continued)
BROADCASTING & CABLE TV - (CONTINUED)
$ 1,000,000 Patriot Media & Communications,
LLC (c) ....................... B3 B- TBA 7/15/13 $ 1,020,000
2,493,750 Rainbow Media Holdings LLC ....... B1 B+ 6.44%-6.63% 3/31/12 2,508,558
4,500,000 Raycom Media, Inc. ............... NR NR 5.50% 4/06/12 4,528,125
3,000,000 Raycom Media, Inc. ............... NR NR 5.31% 10/06/11 3,007,500
5,000,000 UPC Distribution Holding B.V. .... B1 B 6.25% 9/30/12 5,042,970
4,000,000 UPC Distribution Holding B.V. .... B1 B 7.19% 12/31/11 4,037,856
--------------
65,791,919
--------------
MOVIES & ENTERTAINMENT - 6.0%
1,000,000 Hit Entertainment, Inc. (c) ...... B2 CCC+ 9.17% 8/11/13 1,021,250
6,893,611 Loews Cineplex Entertainment
Corp. ......................... B1 B 5.80%-5.97% 6/30/11 6,932,388
7,000,000 Metro-Goldwyn-Mayer
Holdings II, Inc. ............. NR(a) NR(a) 5.74% 4/08/12 7,084,875
3,830,003 Regal Cinemas Corp. .............. Ba3 BB- 5.49% 11/10/10 3,870,099
9,884,049 WMG Acquisition Corp. ............ B1 B+ 5.52%-5.86% 3/01/11 9,979,361
--------------
28,887,973
--------------
PUBLISHING - 5.1%
5,490,196 CBD Media, LLC ................... B1 B 6.06% 12/31/09 5,565,686
2,134,394 Freedom Communications, Inc. ..... Ba3 BB 4.83% 5/18/12 2,157,339
1,989,950 Media News Group, Inc. ........... Ba3 BB 5.17% 12/30/10 1,994,924
1,000,000 New Publishing Acquisition,
Inc. (c) ...................... NR(a) NR(a) 9.82% 2/05/13 1,022,500
4,000,000 Newspaper Holdings, Inc. ......... NR NR 5.13%-5.19% 8/24/11 4,005,000
1,985,000 Nexstar Broadcasting, Inc. ....... Ba3 B+ 5.24% 10/01/12 1,999,059
5,832,259 RH Donnelley Inc. ................ Ba3 BB 5.11%-5.30% 6/30/11 5,907,968
2,000,000 WCP Exposition Services, LLC ..... NR NR 9.00% 8/11/11 1,995,000
--------------
24,647,476
--------------
TOTAL MEDIA 121,522,699
--------------
METALS & MINING - 2.7%
ALUMINUM - 1.5%
6,923,077 Novelis Corp. .................... Ba2 BB- 5.46% 1/07/12 7,008,535
Diversified Metals & Mining - 0.6%
2,985,000 Murray Energy Corp. and Coal
Resources, Inc. ............... B3 NR(a) 6.86% 1/28/10 2,992,463
Precious Metals & Minerals - 0.6%
2,962,500 Carmeuse Lime, Inc. .............. NR NR 5.50% 5/02/11 2,977,313
--------------
TOTAL METALS & MINING 12,978,311
--------------
MULTI-UTILITIES & UNREGULATED POWER - 2.7%
MULTI-UTILITIES & UNREGULATED POWER - 2.7%
997,500 KGEN, LLC ........................ B2 B 6.12% 8/05/11 990,019
12,205,083 KGEN, LLC (c) .................... B3 B- 12.49% 8/05/11 11,960,982
--------------
TOTAL MULTI-UTILITIES & UNREGULATED POWER 12,951,001
--------------
See Notes to Quarterly Portfolio of Investments Page 7
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION o MOODY'S S&P COUPON MATURITY* VALUE
----------- -------------------------------- ------------------ ----------- ------------ --------------
SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED
MULTILINE RETAIL - 1.1%
GENERAL MERCHANDISE STORES - 1.1%
$ 5,129,045 Savers, Inc. ..................... NR(a) NR(a) 5.98%-7.02% 8/04/09 $ 5,154,690
--------------
TOTAL MULTILINE RETAIL 5,154,690
--------------
OIL & GAS - 11.1%
OIL & GAS EXPLORATION & PRODUCTION - 6.8%
5,985,000 ATP Oil & Gas Corp. .............. NR NR 8.99%-9.29% 4/14/10 6,164,550
2,000,000 Carrizo Oil and Gas, Inc. (c) .... NR NR 9.65%-9.87% 7/21/10 2,055,000
3,000,000 Complete Production Services, Inc. B2 B 8.25% 8/04/12 3,030,000
8,000,000 Kerr-McGee Corp. ................. Ba3 BB+ 6.14% 5/24/11 8,034,000
4,000,000 Kerr-McGee Corp. ................. Ba3 BB+ 5.85% 5/24/07 4,007,856
1,957,222 Mainline L.P. .................... Ba3 NR(a) 5.82% 12/17/11 1,957,222
2,878,365 SemCrude, L.P. ................... Ba3 B 5.99%-7.50% 3/16/11 2,903,551
4,593,371 Vulcan Energy Corp. .............. Ba2 BB 5.84%-5.86% 7/23/10 4,656,531
--------------
32,808,710
--------------
OIL & GAS REFINING, MARKETING & TRANSPORTATION - 4.3%
4,250,000 Alon USA, Inc. ................... B2 B 10.30% 12/16/08 4,356,250
7,982,775 El Paso Corp. .................... B3 B 6.09% 11/23/09 8,074,800
1,000,000 EPCO Holdings, Inc. .............. Ba3 B+ 5.84% 8/18/10 1,015,938
6,000,000 Hawkeye Renewables, LLC .......... B2 B 6.93% 1/31/12 5,902,500
995,000 Regency Gas Service LLC .......... B1 B+ 6.24%-6.33% 6/01/10 997,487
750,000 Western Refining Company ......... B2 BB- 6.17% 7/27/12 752,814
--------------
21,099,789
--------------
TOTAL OIL & GAS 53,908,499
--------------
PAPER & FOREST PRODUCTS - 0.8%
FOREST PRODUCTS - 0.4%
1,680,628 Koch Cellulose, LLC .............. Ba3 BB 5.01%-5.24% 5/07/11 1,699,535
Paper Products - 0.4%
1,950,101 Solo Cup Company ................. B1 B+ 5.49%-5.86% 2/27/11 1,969,115
--------------
TOTAL PAPER & FOREST PRODUCTS 3,668,650
--------------
PERSONAL PRODUCTS - 0.4%
PERSONAL PRODUCTS - 0.4%
2,000,000 PBM Products, LLC ................ B3 CCC+ 6.67% 6/16/11 2,000,000
--------------
TOTAL PERSONAL PRODUCTS 2,000,000
--------------
PHARMACEUTICALS - 2.2%
PHARMACEUTICALS - 2.2%
10,576,017 Warner Chilcott Corp. ............ B2 B 6.36%-6.46% 1/18/12 10,678,002
--------------
TOTAL PHARMACEUTICALS 10,678,002
--------------
REAL ESTATE - 12.0%
REAL ESTATE INVESTMENT TRUSTS - 2.7%
922,222 Maguire Properties, Inc. ......... Ba2 BB 5.30% 3/15/10 931,829
10,000,000 The Macerich Partnership, L.P. ... NR NR(a) 5.24% 4/26/06 10,000,000
2,000,000 The Macerich Partnership, L.P. ... NR NR(a) 5.17% 4/26/10 2,005,000
--------------
12,936,829
--------------
Page 8 See Notes to Quarterly Portfolio of Investments
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION o MOODY'S S&P COUPON MATURITY* VALUE
----------- -------------------------------- ------------------ ----------- ------------ --------------
SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED
REAL ESTATE MANAGEMENT & DEVELOPMENT - 9.3%
$ 1,901,934 CB Richard Ellis Services, Inc. .. Ba3 B+ 5.30%-7.50% 3/31/10 $ 1,913,821
7,602,089 General Growth Properties, Inc. .. Ba2 BB+ 5.76% 11/12/07 7,651,503
2,985,787 General Growth Properties, Inc. .. Ba2 BB+ 5.67% 11/12/08 3,019,876
6,859,790 LNR Property Corp. ............... B2 B+ 6.53%-6.71% 2/03/08 6,919,813
12,000,000 LNR Property Corp.,
(Mezzanine Debt) (d) (e) ...... NR NR 8.03%-8.21% 2/03/08 11,917,500
7,000,000 Palmdale Hills Property, LLC ..... B1 B+ 6.61% 5/19/10 6,965,000
2,000,000 Palmdale Hills Property, LLC (c) . B2 B- 11.11% 5/19/11 1,990,000
1,000,000 Pivotal Promontory, LLC (c) ...... B3 B- 10.20% 7/28/11 1,005,000
3,000,000 Pivotal Promontory, LLC .......... B1 B+ 6.45% 7/28/10 3,015,000
1,000,000 The Newkirk Master Limited
Partnership ................... NR(a) NR(a) 5.57% 8/11/08 1,015,000
--------------
45,412,513
--------------
TOTAL REAL ESTATE 58,349,342
--------------
SPECIALTY RETAIL - 2.8%
APPAREL RETAIL - 0.2%
1,000,000 The William Carter Company ....... B1 BB 5.33%-5.81% 7/14/12 1,013,750
--------------
SPECIALTY STORES - 2.6%
1,990,000 Dollarama Group L.P. ............. NR(a) NR(a) 5.93% 11/18/11 2,014,875
7,418,789 Harbor Freight Tools USA, Inc. ... NR(a) NR(a) 5.91%-6.29% 7/15/10 7,502,251
3,000,000 TravelCenters of America, Inc. ... B1 BB 5.26% 12/01/11 3,033,750
--------------
12,550,876
--------------
TOTAL SPECIALTY RETAIL 13,564,626
--------------
TRANSPORTATION INFRASTRUCTURE - 1.7%
MARINE PORTS & SERVICES - 1.7%
4,920,076 Horizon Lines Holding LLC ........ B2 B+ 5.99% 7/07/11 4,983,628
3,500,000 Sirva Worldwide, Inc. ............ B2 B+ 6.52%-6.56% 12/08/10 3,341,041
--------------
TOTAL TRANSPORTATION INFRASTRUCTURE 8,324,669
--------------
WIRELESS TELECOMMUNICATION SERVICES - 4.0%
WIRELESS TELECOMMUNICATION SERVICES - 4.0%
4,000,000 AAT Communications Corp. ......... B1 BB+ 5.61% 7/27/12 4,050,000
7,980,000 American Tower, L.P. ............. Ba3 BBB- 4.90%-7.00% 8/31/11 8,049,825
3,000,000 MetroPCS Wireless, Inc. .......... NR NR 8.25% 5/31/11 3,101,250
4,000,000 Nextel Partners, Inc. ............ Ba3 B+ 4.83% 5/31/12 4,029,000
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 19,230,075
--------------
TOTAL SENIOR FLOATING RATE TERM LOAN INTERESTS** 732,251,066
--------------
(Cost $728,626,715)
SENIOR FLOATING RATE NOTES - 3.8%
HEALTH CARE PROVIDERS & SERVICES - 0.5%
HEALTH CARE SERVICES - 0.5%
2,500,000 US Oncology Holdings, Inc. (d) (g) Caa1 B- 5.25% 3/15/15 2,479,100
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,479,100
--------------
See Notes to Quarterly Portfolio of Investments Page 9
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION o MOODY'S S&P COUPON MATURITY* VALUE
----------- -------------------------------- ------------------ ----------- ------------ --------------
SENIOR FLOATING RATE NOTES - 3.8%
HOUSEHOLD DURABLES - 0.6%
HOMEBUILDING - 0.6%
$ 3,000,000 Builders Firstsource, Inc. (c) (g) B3 B- 7.52% 2/15/12 $ 3,024,240
--------------
TOTAL HOUSEHOLD DURABLES 3,024,240
--------------
MEDIA - 1.9%
BROADCASTING & CABLE TV - 1.9%
3,000,000 Intelsat, Ltd. (d) (g) ........... B2 B+ 8.70% 1/15/12 3,045,510
6,000,000 Paxson Communications Corp. (g) .. B1 B 6.35% 1/15/10 6,053,520
--------------
TOTAL MEDIA 9,099,030
--------------
PHARMACEUTICALS - 0.8%
PHARMACEUTICALS - 0.8%
4,500,000 Elan Finance PLC (d) (g) ......... B3 B 7.79% 11/15/11 3,932,145
--------------
TOTAL PHARMACEUTICALS ........................................................... 3,932,145
--------------
TOTAL SENIOR FLOATING RATE NOTES ................................................ 18,534,515
--------------
(Cost $18,426,994)
TOTAL INVESTMENTS - 154.8% ...................................................... 750,785,581
(Cost $747,053,709) (b)
NET OTHER ASSETS AND LIABILITIES - (2.4)% ....................................... (11,853,425)
--------------
LOAN OUTSTANDING - (31.8)% ...................................................... (154,000,000)
--------------
PREFERRED SHARES, AT LIQUIDATION VALUE - (20.6)% ................................ (100,000,000)
--------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS - 100.0% ........................... $ 484,932,156
==============
-----------------------------------------
o All percentages shown in the Portfolio of Investments are based on
net assets applicable to Common Shares.
(a) This Senior Loan Interest was privately rated upon issuance. The
rating agency does not provide ongoing surveillance on the rating.
(b) Aggregate cost for federal income tax and financial reporting
purposes.
(c) This issue is secured by a second lien on the issuer's assets. The
second lien security interest is subordinated to other debt
holders.
(d) This issue is unsecured.
(e) This issue's security interest is subordinated to other debt
securities.
(f) This borrower has filed for protection in a federal bankruptcy
court.
(g) Securities are restriced securities which cannot be offered for
public sale without first being registered under the Securities
Act of 1933, as amended (Note 1E).
+ Ratings below Baa3 by Moody's Investors Service, Inc. or BBB- by
Standard & Poor's Ratings Group are considered to be below
investment grade.
NR Not Rated
TBA To be announced.
* Senior Loans generally are subject to mandatory and/or optional
prepayment. Because of the mandatory prepayment conditions and
because there may be significant economic incentives for a
borrower to prepay, prepayments of Senior Loans may occur. As a
result, the actual remaining maturity of Senior Loans may be
substantially less than the stated maturities shown. Senior Loans
generally have maturities that range from five to eight years;
however, the Fund estimates that refinancing and prepayments
result in an average maturity of the Senior Loans held in its
portfolio to be approximately 18-30 months.
Page 10 See Notes to Quarterly Portfolio of Investments
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
** Senior Loans in which the Fund invests generally pay interest at
rates which are periodically predetermined by reference to a base
lending rate plus a premium. These base lending rates are
generally (i) the lending rate offered by one or more major
European banks, such as the London Inter-Bank Offered Rate
("LIBOR"), (ii) the prime rate offered by one or more major United
States banks or (iii) the certificate of deposit rate. Senior
Loans are generally considered to be restricted in that the Fund
ordinarily is contractually obligated to receive approval from the
agent bank and/or borrower prior to the disposition of a Senior
Loan.
See Notes to Quarterly Portfolio of Investments Page 11
--------------------------------------------------------------------------------
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
AUGUST 31, 2005
1. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
The net asset value ("NAV") of the Common Shares of the First Trust/Four Corners
Senior Floating Rate Income Fund II (the "Fund") is computed based upon the
value of the Fund's portfolio and other assets. The NAV is determined as of the
close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00
p.m. Eastern time on each day the NYSE is open for trading. Domestic debt
securities and foreign securities are priced using data reflecting the earlier
closing of the principal markets for those securities. The Fund calculates NAV
per Common Share by subtracting the Fund's liabilities and the liquidation value
of any outstanding Preferred Shares from the Fund's Managed Assets, the average
daily gross asset value of the Fund minus the sum of the Fund's accrued and
unpaid dividends on any outstanding Preferred Shares and accrued liabilities,
and dividing the result by the total number of Common Shares outstanding.
The Fund's investments are valued daily at market value, or in the absence of
market value with respect to any portfolio securities, at fair value according
to procedures adopted by the Fund's Board of Trustees. A majority of the Fund's
assets are valued using market information supplied by third parties. In the
event that market quotations are not readily available, the pricing service does
not provide a valuation for a particular asset, or the valuations are deemed
unreliable, or if events occurring after the close of the principal markets for
particular securities (e.g., domestic debt and foreign securities), but before
the Fund values its assets, would materially affect NAV, First Trust Advisors
L.P. ("First Trust") may use a fair value method to value the Fund's securities
and investments. The use of fair value pricing by the Fund is governed by
valuation procedures adopted by the Fund's Board of Trustees, and in accordance
with the provisions of the Investment Company Act of 1940, as amended (the "1940
Act").
The Senior Loans in which the Fund invests are not listed on any securities
exchange or board of trade. Senior Loans are typically bought and sold by
institutional investors in individually negotiated private transactions that
function in many respects like an over-the-counter secondary market, although
typically no formal market-makers exist. This market, while having grown
substantially in the past several years, generally has fewer trades and less
liquidity than the secondary market for other types of securities. Some Senior
Loans have few or no trades, or trade infrequently, and information regarding a
specific Senior Loan may not be widely available or may be incomplete.
Accordingly, determinations of the market value of Senior Loans may be based on
infrequent and dated information. Because there is less reliable, objective data
available, elements of judgment may play a greater role in valuation of Senior
Loans than for other types of securities. Typically, Senior Loans are valued
using information provided by an independent third party pricing service. If the
pricing service cannot or does not provide a valuation for a particular Senior
Loan or such valuation is deemed unreliable, First Trust may value such Senior
Loan at a fair value according to procedures adopted by the Fund's Board of
Trustees, and in accordance with the provisions of the 1940 Act.
Portfolio securities listed on any exchange other than the NASDAQ National
Market ("NASDAQ") are valued at the last sale price on the business day as of
which such value is being determined. If there has been no sale on such day, the
securities are valued at the mean of the most recent bid and asked prices on
such day. Securities traded on the NASDAQ are valued at the NASDAQ Official
Closing Price as determined by NASDAQ. Portfolio securities traded on more than
one securities exchange are valued at the last sale price on the business day as
of which such value is being determined at the close of the exchange
representing the principal market for such securities. Portfolio securities
traded in the over-the-counter market, but excluding securities traded on the
NASDAQ, are valued at the closing bid prices. Short-term investments that mature
in less than 60 days are valued at amortized cost.
B. REPURCHASE AGREEMENTS:
The Fund engages in repurchase agreement transactions. Under the terms of a
typical repurchase agreement, the Fund takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Fund to
resell, the obligation at an agreed-upon price and time, thereby determining the
yield during the Fund's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Fund's holding
period. The value of the collateral is at all times at least equal to the total
amount of the repurchase obligation, including interest. In the event of
counterparty default, the Fund has the right to use the collateral to offset
losses incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Fund reviews the value of the collateral and the creditworthiness of
those banks and dealers with which the Fund enters into repurchase agreements to
evaluate potential risks.
Page 12
--------------------------------------------------------------------------------
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
AUGUST 31, 2005
C. SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income on such securities
is not accrued until settlement date. The Fund instructs the custodian to
segregate assets of the Fund with a current value at least equal to the amount
of its when-issued purchase commitments.
D. UNFUNDED LOAN COMMITMENTS:
The Fund may enter into certain credit agreements, all or a portion of which may
be unfunded. The Fund had unfunded loan commitments of approximately $8,589,912
as of August 31, 2005. The Fund is obligated to fund these loan commitments at
the borrower's discretion. Net unrealized appreciation of $111,398 from these
commitments is included in Net Other Assets and Liabilities.
E. RESTRICTED SECURITIES
The Fund may invest a portion of its assets in restricted securities. Restricted
securities are securities that cannot be offered for public sale without first
being registered under the Securities Act of 1933, as amended. The Fund
currently holds the restricted securities shown in the following table. These
securities are valued using market quotations according to the valuation
procedures as stated in the Portfolio Valuation section (Note 1A) and are not
expressed as a discount to the carrying value of a comparable unrestricted
security. There are no unrestricted securities with the same maturity dates and
yields for these issuers.
CARRYING COST
ACQUISITION PRINCIPAL CARRYING AT ACQUISITION MARKET % OF
SECURITY DATE VALUE VALUE DATE VALUE NET ASSETS
---------------- ------------ ---------- ---------- ---------------- ---------- --------------
Builders Firstsource, Inc. 2/8/05 $ 3,000,000 100.81 100.00 $ 3,024,240 0.62%
Elan Finance PLC 3/2/05 3,000,000 87.38 86.50 2,621,430 0.54%
Elan Finance PLC 3/31/05 1,000,000 87.38 75.75 873,810 0.18%
Elan Finance PLC 8/9/05 500,000 87.38 90.50 436,905 0.09%
Intelsat, Ltd. 2/14/05 3,000,000 101.52 103.50 3,045,510 0.63%
Paxson Communications Corp. 6/3/04 1,000,000 100.89 100.13 1,008,920 0.21%
Paxson Communications Corp. 6/9/04 2,000,000 100.89 100.25 2,017,840 0.42%
Paxson Communications Corp. 6/16/04 1,000,000 100.89 100.75 1,008,920 0.21%
Paxson Communications Corp. 10/15/04 2,000,000 100.89 100.94 2,017,840 0.42%
US Oncology Holdings, Inc. 8/4/05 1,000,000 99.16 96.50 991,640 0.20%
US Oncology Holdings, Inc. 8/5/05 1,500,000 99.16 96.63 1,487,460 0.31%
-------------- -------------- -----
$ 19,000,000 $ 18,534,515 3.83%
============== ============== =====
2. UNREALIZED APPRECIATION/(DEPRECIATION)
As of August 31, 2005, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was $5,108,320
and the aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $1,376,448.
Page 13
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
quarter that have materially affected, or are reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
By (Signature and Title)* /S/ JAMES A. BOWEN
-------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date OCTOBER 26, 2005
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /S/ JAMES A. BOWEN
-------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date OCTOBER 26, 2005
----------------------------------------------------------------------------
By (Signature and Title)* /S/ MARK R. BRADLEY
-------------------------------------------------------
Mark R. Bradley, Treasurer, Controller, Chief
Financial Officer and Chief Accounting Officer
(principal financial officer)
Date OCTOBER 26, 2005
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.